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    Bulletin 03-14-2018

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    ARC 3669CInspections and Appeals Department[481]Notice of Intended Action

    Proposing rule making related to economic fraud control bureau and providing an opportunity for public comment

        The Department of Inspections and Appeals hereby proposes to rescind Chapter 72, “Public Assistance Front End Investigations,” and to adopt a new Chapter 72, “Economic Fraud Control Bureau,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 10A.104 and 10A.401 to 10A.403.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.105 and 10A.401 to 10A.403.Purpose and Summary    The proposed rule making is the result of a comprehensive review of the Department’s Investigations Division rules.  The rule making conforms the Department’s rules with current practices, laws, regulations and rules affecting the Economic Fraud Control Bureau.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6.Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on April 3, 2018. Comments should be directed to: DirectorDepartment of Inspections and Appeals Lucas State Office Building321 East 12th StreetDes Moines, Iowa 50319-0083Fax: 515.242.6863Email: david.werning@dia.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Rescind 481—Chapter 72 and adopt the following new chapter in lieu thereof: CHAPTER 72ECONOMIC FRAUD CONTROL BUREAU

    481—72.1(10A) Definitions.          "Client" means any person who has made an application for or is receiving state or federal public assistance from DHS or any other state or federal agency.        "Collateral contact" means a reliable source other than the client who is knowledgeable about information relative to pertinent public assistance case factors.        "Department" means the department of inspections and appeals.        "DHS" means the department of human services.        "Division" means the investigations division of the department.        "EBT" "electronic benefit transfer" means the electronic process that allows a client to authorize transfer of the client’s benefits from a financial account to a retailer to pay for eligible items received. Clients are issued an EBT card similar to a bank ATM or debit card to receive and use their food assistance.        "EBT trafficking or misuse" means the use of food assistance benefits for something other than their intended use.        "EFCB" "bureau" means the economic fraud control bureau.        "Intentional program violation" "IPV" means having intentionally made a false or misleading statement; or misrepresented, concealed, or withheld facts; or committed an act that is a violation of the Food Stamp Act, Supplemental Nutrition Assistance Program regulations, or any state rule relating to the use, presentation, transfer, acquisition, receipt or possession of a benefit transfer instrument.        "Pertinent public assistance case factors" means information considered necessary to verify household composition, income, resources or any other potential program violation.        "Program violation" means action that is contrary to the rules of eligibility for any state or federal public assistance program.        "Public assistance" means child care assistance, family investment program, food assistance, medical assistance, state supplementary assistance, refugee cash assistance, or any other state or federal assistance program.        "Referral" means a request to investigate pertinent public assistance case factors for potential program violations and eligibility issues.        "Referring agency" means DHS or any other state or federal agency.

    481—72.2(10A) Economic fraud control bureau (EFCB).  The EFCB is comprised of two units, the program integrity/EBT unit and the divestiture unit. The functions of each unit are described in 481—paragraph 1.4(1)“c” [see ARC 3649C, IAB 2/28/18]. Generally, the EFCB conducts investigations of public assistance fraud in order to maintain integrity and accountability in the administration of public assistance benefits. Divestiture unit rules are found in 481—Chapter 75.

    481—72.3(10A) Types of investigations.  The EFCB conducts three types of investigations.    72.3(1) Front-end investigations.  The EFCB conducts front-end investigations to determine whether a client has accurately reported the information necessary to become eligible for or to retain public assistance benefits.     72.3(2) Fraud investigations.  The EFCB conducts a fraud investigation when the referring agency suspects that a client received public assistance benefits the client was not entitled to receive.    72.3(3) EBT trafficking or misuse.  The EFCB conducts an investigation to determine whether a client is responsible for EBT trafficking or misuse.

    481—72.4(10A) Referrals.  DHS shall initiate public assistance eligibility referrals and EBT trafficking or misuse referrals to the division. EBT trafficking or misuse investigations also may be initiated by the division without a referral. Referrals from other referring agencies may be made directly to the division.

    481—72.5(10A) Investigation procedures.       72.5(1) Client contact.  The bureau may, but is not required to, contact the client during the course of an investigation. If the bureau contacts the client and the client does not respond, the client’s nonresponse will be included in the bureau’s investigation findings.    72.5(2) Evidence gathered.  The bureau may conduct record reviews and gather evidence to verify a client’s employment, wages, residence, household composition, income versus expenses, or property ownership or other relevant facts.    72.5(3) Subpoenas.  The director of the department or the director’s designee may issue subpoenas pursuant to Iowa Code section 10A.104 and 481—subrules 1.1(6) to 1.1(9) to obtain information necessary to an investigation. Subpoenas may be personally served by division personnel upon the respondent of the subpoena or the respondent’s registered agent, mailed directly to the respondent or the respondent’s registered agent via USPS mail, or electronically transmitted directly to the respondent or the respondent’s registered agent via facsimile or email. Division personnel shall have the authority to determine the appropriate method by which the respondent is requested to deliver information in response to a subpoena duces tecum.     72.5(4) Collateral contacts.  The division may use collateral contacts to collect information pertinent to an investigation or verify information provided by the client.    72.5(5) Cooperation.  The division may cooperate with local, state or federal law enforcement agencies in conducting an investigation.

    481—72.6(10A) EBT trafficking or misuse investigations.  In addition to the procedures outlined in rule 481—72.5(10A), the following apply to EBT trafficking or misuse investigations.    72.6(1) Probable cause.  Probable cause must be established before an EBT trafficking or misuse investigation may be conducted.    72.6(2) Referrals.  Referrals to the division may come from DHS, retailers, law enforcement agencies or the general public. A referral may be initiated following the identification of questionable EBT card transactions through federal or state databases. The bureau may open an investigation without an outside referral.

    481—72.7(10A) Findings.  At the completion of an investigation, the bureau will transmit its findings in writing to the appropriate state or federal agency and make recommendations based on the evidence obtained or provided during the investigation.     72.7(1) Decisions about public assistance eligibility.  The appropriate state or federal agency makes all decisions about public assistance eligibility. DHS will report the case action taken and any determination of overpayment, cost avoidance, or intentional program violation to the division.    72.7(2) Testimony and hearings.  Staff of the division may be called to testify in administrative and legal proceedings related to an investigation, in addition to conducting EBT intentional program violation hearings.

    481—72.8(10A) Confidentiality.  The EFCB shall maintain confidentiality of investigative case information in accordance with Iowa Code sections 10A.105 and 22.7(5) and any other applicable state or federal law.        These rules are intended to implement Iowa Code sections 10A.105 and 10A.401 to 10A.403.    ARC 3668CInspections and Appeals Department[481]Notice of Intended Action

    Proposing rule making related to Medicaid fraud control unit and providing an opportunity for public comment

        The Department of Inspections and Appeals hereby proposes to rescind Chapter 73, “Medicaid Fraud Control Bureau,” and to adopt a new Chapter 73, “Medicaid Fraud Control Unit,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 10A.104(5).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 10A.104(6), 10A.105, 10A.402(5) and 10A.403.Purpose and Summary    The proposed rule making is the result of a comprehensive review of the Department’s Investigations Division rules.  The rule making conforms the Department’s rules with current practices, laws, regulations and rules affecting the Medicaid Fraud Control Unit.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on April 3, 2018. Comments should be directed to: Director Department of Inspections and Appeals Lucas State Office BuildingDes Moines, Iowa 50319-0083Fax: 515.242.6863Email: david.werning@dia.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Rescind 481—Chapter 73 and adopt the following new chapter in lieu thereof: CHAPTER 73MEDICAID FRAUD CONTROL UNIT

    481—73.1(10A) Definitions.          "Abuse" "neglect" means any act that constitutes abuse or neglect of a patient or resident under applicable state law and includes, but is not limited to, incidents involving physical harm inflicted as a result of an intentional act or negligence, consensual or nonconsensual sexual contact, misappropriation of money or property, theft of medications, or degradation of personal dignity. The victim is a patient or resident receiving health care services in a health care facility that receives Medicaid funds or in a board and care facility at the time of the abuse or neglect.         "Board and care facility" means a residential setting where two or more unrelated adults reside and receive one or both of the following:
    1. Nursing care services provided by, or under the supervision of, a registered nurse, licensed practical nurse, or licensed nursing assistant.
    2. A substantial amount of personal care services that assist residents with activities of daily living, including personal hygiene, dressing, bathing, eating, personal sanitation, ambulation, transfer, positioning, self-medication, body care, travel to medical services, essential shopping, meal preparation, laundry, and housework.
            "Department" means the department of inspections and appeals.        "Director" means the director of the department of inspections and appeals.        "Fraud" means an intentional deception or misrepresentation made by an individual or entity with the knowledge that the deception or misrepresentation could result in an unauthorized benefit to the individual or entity, or another individual or entity, and includes any act that constitutes fraud under applicable federal or state law, including but not limited to Iowa Code chapters 249A and 685.        "Medicaid provider" means:
    1. Any individual, agency, institution, or organization enrolled with the department of human services, Iowa Medicaid enterprise, or contracted managed care organizations (MCOs), and approved to provide goods or services to Iowa Medicaid beneficiaries and be paid by Iowa Medicaid enterprise, or contracted MCOs, for the provided goods or services; or
    2. Any third party acting on behalf of or under the authority or direction of a Medicaid provider as defined in “1” to prepare or submit necessary documentation to Iowa Medicaid enterprise, or contracted MCOs, in order for the Medicaid provider to receive payment for goods or services.
            "MFCU director" means the director of the Iowa MFCU.        "Overpayment" means any payment greater than that to which a Medicaid provider is entitled.        "Prosecutorial agency" includes, but is not limited to, county attorney offices, United States Attorney offices or the Iowa attorney general’s office.        "Referral" means any information submitted to the Iowa Medicaid fraud control unit in written or verbal form indicating potential criminal or fraudulent activity which the Iowa MFCU maintains jurisdiction to investigate.         "Regulatory agency" includes, but is not limited to, state licensing boards, other divisions or bureaus of the department of inspections and appeals, or other divisions or bureaus of the U.S. Department of Health and Human Services.        "Respondent" means the recipient of a subpoena and may be an individual or an organization.        "State medical assistance program" "Medicaid" means medical assistance programs per the Code of Federal Regulations, Title 42, Chapter IV, Subchapter C, Parts 430 through 489. Iowa Code chapter 249A authorizes Iowa’s participation in the program. The policies specific to the Medicaid program are in 441—Chapters 73 to 88.        "Unit" "Iowa MFCU" or “MFCU” means the Iowa Medicaid fraud control unit.        "Unit personnel" includes investigators, auditors, and attorneys assigned to the Iowa Medicaid fraud control unit, along with the MFCU director.

    481—73.2(10A) Investigative authority.      73.2(1)   Pursuant to Iowa Code section 10A.402(5), the unit is responsible for conducting investigations involving the state medical assistance program. These investigations include, but are not limited to, allegations involving:    a.    Fraud within the administration of the Iowa Medicaid program.    b.    Fraud in the provision of medical assistance or activities of Medicaid providers.    c.    Incidents of abuse or neglect.    d.    Any aspect of the provision of health care services and activities of Medicaid providers upon the approval of the U.S. Department of Health and Human Services, Office of the Inspector General.    73.2(2)   Pursuant to Iowa Code section 10A.403, investigators assigned to the unit shall have the powers and authority of peace officers when acting within the scope of their responsibilities to conduct investigations as specified in Iowa Code section 10A.402(5).

    481—73.3(10A) Referrals.      73.3(1)   The MFCU director reviews referrals in order to confirm that the unit has jurisdiction to investigate the allegation(s).    73.3(2)   Upon confirming MFCU jurisdiction and taking into consideration numerous factors and referral-specific information, the MFCU director shall determine the disposition of the referral, which may include, but is not limited to the following:    a.    Opening a case and assigning the case to unit personnel.    b.    Referring the allegations to appropriate outside agencies for further review.    c.    Declining the referral and taking no further action in the matter.

    481—73.4(10A) Investigations.  Unit personnel investigate referrals opened and assigned as MFCU cases by utilizing all legally authorized means to identify any of the following:
    1. Criminal activity resulting in violations of state or federal criminal code.
    2. Fraudulent activity resulting in violations of state or federal civil statutes.
    3. Financial damages sustained by the Iowa Medicaid program.
    4. Victims involved in incidents of abuse or neglect.
    5. Perpetrators involved in Medicaid provider fraud schemes or incidents of abuse or neglect.
    6. Overpayments received by Medicaid providers as a result of fraudulent or criminal activity.

    481—73.5(10A) Access to records.  In addition to the authority maintained by investigators with the unit pursuant to Iowa Code section 10A.403, the unit is established as a health oversight agency, as defined by 45 CFR 164.501, exempt from the privacy regulations of the federal Health Insurance Portability and Accountability Act (HIPAA) and authorized to engage in health oversight activities in accordance with 45 CFR 164.512.    73.5(1)   Unit personnel shall have the authority to request, review, and retain any medical, clinical, financial, or personnel records maintained by a Medicaid provider in order for unit personnel to investigate allegations of incidents that fall within MFCU’s investigative authority as established in rule 481—73.2(10A).    73.5(2)   For Medicaid provider fraud investigations, unit personnel shall have access to any records pertaining to Medicaid and non-Medicaid recipients of health care goods and services to verify that:    a.    Medicaid claims for goods and services have been accurately paid.    b.    Medicaid recipients actually received the goods and services claimed by the Medicaid provider.    c.    Medicaid providers have retained supporting documentation to substantiate claims.    73.5(3)   For abuse or neglect investigations, unit personnel shall have access to any records pertaining to any Medicaid patients or residents identified during the course of an investigation who are receiving health care services in a health care facility that receives Medicaid funds or in a board and care facility. Unit personnel may obtain access via subpoena or other legal methods to any records pertaining to any non-Medicaid patients or residents identified during the course of an investigation.

    481—73.6(10A) Subpoenas.  The director or the director’s designee may issue subpoenas in connection with MFCU investigations. In addition to the provisions of 481—subrules 1.1(6) to 1.1(9), the following apply.     73.6(1)   Unit personnel may serve subpoenas during the course of an open MFCU case investigation. The subpoena must be approved and signed by the director or the director’s designee.     73.6(2)   Subpoenas may be personally served by unit personnel upon the respondent of the subpoena or the respondent’s registered agent, mailed directly to the respondent or the respondent’s registered agent via USPS mail, or electronically transmitted directly to the respondent or the respondent’s registered agent via facsimile or email.    73.6(3)   Unit personnel shall have the authority to determine the appropriate method by which the respondent is requested to deliver information in response to a subpoena duces tecum.

    481—73.7(10A) Investigation results.      73.7(1)   Investigations resulting in sufficient evidence to support criminal or civil prosecution will be referred to the appropriate prosecutorial agency to be reviewed for a charging decision by the prosecutorial agency.    73.7(2)   For investigations that result in identification of potential overpayment made to a Medicaid provider, unit personnel will either attempt to collect such overpayment or refer the matter to an appropriate state agency for collection.    73.7(3)   Investigations that result in the identification of potential regulatory violations committed by a Medicaid provider may be referred to the appropriate regulatory agency for administrative review.

    481—73.8(10A) Confidentiality.  The unit shall maintain confidentiality of all investigative case information in accordance with Iowa Code sections 22.7(5) and 685.6, 42 CFR 1007.11(f), and any other applicable state or federal law.       These rules are intended to implement Iowa Code sections 10A.104(6), 10A.105, 10A.402(5), and 10A.403.    ARC 3675CMedicine Board[653]Notice of Intended Action

    Proposing rule making related to medical cannabidiol standards of practice and providing an opportunity for public comment

        The Board of Medicine hereby proposes to amend Chapter 13, “Standards of Practice and Principles of Medical Ethics,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 147.76.State or Federal Law Implemented    This rule making implements, in whole or in part, 2017 Iowa Acts, House File 524, and Iowa Code chapters 124E, 147, 148, and 272C.Purpose and Summary    The purpose of Chapter 13 is to establish standards of practice and principles of medical ethics for administrative medicine physicians, medical physicians and surgeons, and osteopathic physicians and surgeons. The proposed rule relates to the use of medical cannabidiol for patients with a qualifying illness. This rule establishes the process by which the Board of Medicine receives recommendations from the Medical Cannabidiol Board concerning amendments for the list of debilitating medical conditions that could be treated with medical cannabidiol and the form and quantity of the medical cannabidiol. This rule also provides grounds for discipline for physicians who violate the rule.    The Board approved this Notice of Intended Action during a regularly scheduled meeting on February 16, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 653—Chapter 3.Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Board no later than 4:30 p.m. on April 4, 2018. Comments should be directed to: Mark Bowden, Executive DirectorBoard of Medicine RiverPoint Office Park400 S.W. Eighth Street, Suite CDes Moines, Iowa 50309 Fax: 515.242.5908 Phone: 515.242.3268 Email: mark.bowden@iowa.govPublic Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: April 4, 2018Board Office, Suite C 8:30 a.m.400 S.W. Eighth StreetDes Moines, Iowa    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Adopt the following new rule 653—13.15(124E,147,148,272C):

    653—13.15(124E,147,148,272C) Standards of practice—medical cannabidiol.      13.15(1) Definitions.  For purposes of this rule:        "Board of medicine" means the board established pursuant to Iowa Code chapters 147 and 148.        "Bordering state" means the same as defined in Iowa Code section 331.910.        "Debilitating medical condition" means any of the following:
    1. Cancer, if the underlying condition or treatment produces one or more of the following:
    2. Severe or chronic pain.
    3. Nausea or severe vomiting.
    4. Cachexia or severe wasting.
    5. Multiple sclerosis with severe and persistent muscle spasms.
    6. Seizures, including those characteristic of epilepsy.
    7. AIDS or HIV as defined in Iowa Code section 141A.1.
    8. Crohn’s disease.
    9. Amyotrophic lateral sclerosis.
    10. Any terminal illness, with a probable life expectancy of under one year, if the illness or its treatment produces one or more of the following:
    11. Severe or chronic pain.
    12. Nausea or severe vomiting.
    13. Cachexia or severe wasting.
    14. Parkinson’s disease.
    15. Untreatable pain.
            "Department" means the Iowa department of public health.        "Form and quantity" means the types and amounts of medical cannabidiol allowed to be dispensed to a patient or primary caregiver as approved by the department subject to recommendation by the medical cannabidiol board and approval by the board of medicine. "Medical cannabidiol" means any pharmaceutical grade cannabinoid found in the plant Cannabis sativa L. or Cannabis indica or any other preparation thereof that has a tetrahydrocannabinol level of no more than 3 percent and that is delivered in a form recommended by the medical cannabidiol board, approved by the board of medicine, and adopted by the department pursuant to rule.        "Medical cannabidiol board" means the board established pursuant to Iowa Code section 124E.5.        "Primary caregiver" means a person who is a resident of this state or a bordering state, including but not limited to a parent or legal guardian, at least 18 years of age, who has been designated by a patient’s health care practitioner as a necessary caretaker taking responsibility for managing the well-being of the patient with respect to the use of medical cannabidiol pursuant to the provisions of this chapter.        "Untreatable pain" means any pain whose cause cannot be removed and, according to generally accepted medical practice, the full range of pain management modalities appropriate for the patient has been used without adequate result or with intolerable side effects.        "Written certification" means a document signed by a physician licensed pursuant to Iowa Code chapter 148 with whom the patient has established a patient-physician relationship and who is the patient’s primary care provider which states that the patient has a debilitating medical condition and identifies that condition and provides any other relevant information.        13.15(2) Written certification.  A physician who is a patient’s primary care provider may provide the patient a written certification of diagnosis if, after examining and treating the patient, the physician determines, in the physician’s medical judgment, that the patient suffers from a debilitating medical condition that qualifies for the use of medical cannabidiol pursuant to Iowa Code chapter 124E.    a.    The physician shall provide explanatory information as provided by the department to the patient about the therapeutic use of medical cannabidiol and the possible risks, benefits, and side effects of the proposed treatment.    b.    Subsequently, the physician shall do the following:    (1)   Determine, on an annual basis, if the patient continues to suffer from a debilitating medical condition and, if so, may issue the patient a new written certification of that diagnosis.    (2)   Otherwise comply with all requirements established by the department pursuant to rule.    c.    A physician may provide, but has no duty to provide, a written certification pursuant to this rule.     13.15(3) Adding or removing debilitating medical conditions and amending form and quantity of medical cannabidiol.  Recommendations made by the medical cannabidiol board pursuant to Iowa Code section 124E.5 relating to the addition or removal of allowable debilitating medical conditions for which the medical use of cannabidiol would be medically beneficial or to the amendment of the form and quantity of allowable medical uses of cannabidiol shall be made to the board of medicine for consideration. The medical cannabidiol board shall submit a written recommendation, a copy of the petition and all other information received during consideration of the petition. The board of medicine shall consider the information received from the medical cannabidiol board and may seek information from other sources if it is deemed relevant by the board of medicine. The decision regarding a recommendation by the medical cannabidiol board is at the sole discretion of the board of medicine. The board of medicine shall make its decision within 180 days of receipt of the recommendation from the medical cannabidiol board. If the recommendation is approved by the board of medicine, it shall be adopted by rule.    13.15(4) Financial interests.  A physician shall not share office space with, accept referrals from, or have any financial relationship with a medical cannabidiol manufacturer or dispensary.     13.15(5) Criminal prosecution.  A physician, including any authorized agent or employee thereof, shall not be subject to prosecution for the unlawful certification, possession, or administration of marijuana under the laws of this state for activities arising directly out of or directly related to the certification or use of medical cannabidiol in the treatment of a patient diagnosed with a debilitating medical condition as authorized by Iowa Code chapter 124E.    13.15(6) Civil or disciplinary penalties.  A physician, including any authorized agent or employee thereof, shall not be subject to any civil or disciplinary penalties by the board of medicine or any business, occupational, or professional licensing board or entity, solely for activities conducted relating to a patient’s possession or use of medical cannabidiol as authorized by Iowa Code chapter 124E. Nothing in this rule prevents the board of medicine from taking action in response to violations of any other sections of law or rule.    13.15(7) Grounds for discipline.  A physician may be subject to disciplinary action for violation of these rules or the rules found in 653—Chapter 23. Grounds for discipline include, but are not limited to, the following:    a.    The physician provides an individual a written certification without establishing a patient-physician relationship, including examining and treating the individual, or without being the individual’s primary care provider.    b.    The physician provides a patient a written certification without determining, in the physician’s medical judgment, that the patient suffers from a debilitating medical condition that qualifies for the use of medical cannabidiol pursuant to Iowa Code chapter 124E.    c.    The physician provides a patient a written certification without providing explanatory information as provided by the department to the patient about the therapeutic use of medical cannabidiol and the possible risks, benefits, and side effects of the proposed treatment.    d.    The physician provides an individual a new written certification without determining, on an annual basis, that the patient continues to suffer from a debilitating medical condition.    e.    The physician shares office space with, accepts referrals from, or has a financial relationship with a medical cannabidiol manufacturer or dispensary.       This rule is intended to implement Iowa Code chapters 124E, 147, 148 and 272C.    ARC 3671CPublic Employment Relations Board[621]Notice of Intended Action

    Proposing rule making related to collective bargaining and providing an opportunity for public comment

        The Public Employment Relations Board hereby proposes to amend Chapter 2, “General Practice and Hearing Procedures,” Chapter 4, “Bargaining Unit and Bargaining Representative Determination,” Chapter 5, “Elections,” Chapter 6, “Negotiations and Negotiability Disputes,” Chapter 7, “Impasse Procedures,” and Chapter 13, “Mediators,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 20.6(5).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 20.Purpose and Summary    The agency adopted emergency rules effective August 10, 2017, to implement provisions of 2017 Iowa Acts, House File 291.  These proposed amendments are intended to clarify those rules, add rules where required by House File 291 and make changes based on elections conducted in the fall of 2017.    Items 1 and 2 are conforming amendments based on renumbering proposed in Chapters 5 and 4, respectively.  The agency is proposing amendments in Items 3 through 13 and 15, which restructure the chapter with additions for explanation and clarification of petitions and procedures.  Item 14 is based on constituent feedback and proposes an amendment to allow employee organizations to wait for Board approval before filing final agency reports for dissolved organizations in amendment of certification proceedings.    The agency proposes a number of amendments to Chapter 5.  Item 16 proposes amendments to change the time period for the payment of election fees; to eliminate election fee refunds when the employee organization has paid the fee, but the election does not occur; and to conform the chapter to the voter eligibility changes contained in Item 17.  Item 17 proposes amendments to change the voter eligibility for retention and recertification elections to a date certain prior to the start of the election period, to clarify the responsibilities of the employer and the employee organization in providing the voter list and updating the list, and to summarize challenges for all the types of elections and change the deadline for telephonic/web-based election challenges.   Due to the cutoff date for voter eligibility and the change to challenge deadlines, Item 17 also proposes additional amendments to allow for postelection challenges for retention and recertification elections.  Item 18 proposes amendments to allow the agency to utilize voting machines for in-person elections, to allow for voter registration if necessary for telephonic/web-based elections, to allow the Board to extend an election period for telephonic/web-based elections when the systems are inoperable for an extended period, and to further clarify existing election practices.  Item 19 proposes amendments to clarify the objection procedure to reflect current practice, to specify the parties that may object pursuant to changes required by House File 291, and to clarify what constitutes objectionable conduct regarding speeches.  Items 20 and 22 propose amendments to conform to voter eligibility changes in Item 17 and to restructure the rules regarding certification and decertification elections for clarification to constituents.  Item 21 proposes amendments for the same purpose for retention and recertification elections and for conformance to postelection challenges for these types of elections.  The amendments also set the date upon which an extension of an agreement must be executed, require the parties to notify the agency of the extension, and allow the agency the option of conducting elections for education-related entities in October.  Items 23 and 24 propose amendments for the restructuring of rules which cover professional/nonprofessional and amendment of unit elections.  Item 25 proposes an amendment to reflect the accurate name of the order issued by the agency.    Items 26 and 27 propose amendments to reflect current word usage.  Item 28 proposes amendments to change the dates by which public safety status stipulations are due to the agency.  Item 29 proposes an amendment to revise the rule.    Item 30 proposes amendments for the renumbering of subrules due to the addition of a new subrule contained in Item 31 and due to rule restructuring.  Item 31 proposes a new subrule to set forth the requirements for state contract negotiations when a new governor takes office as set forth in House File 291.    Item 32 proposes an amendment to add arbitration as a type of proceeding in which a mediator shall not testify, as set forth in House File 291.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    These rules do not provide for a waiver of their terms, but are instead subject to the agency’s general waiver provisions found at rule 621—1.9(17A,20).Public Comment    Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Board no later than 4:30 p.m. on April 4, 2018. Comments should be directed to:Amber DeSmet/Diana MachirPublic Employment Relations Board Jessie Parker Office Building510 East 12th Street, Suite 1BDes Moines, Iowa 50319 Phone: 515.281.4414Email: amber.desmet@iowa.gov diana.machir@iowa.govPublic Hearing    A public hearing at which persons may present their views orally or in writing will be held as follows: April 4, 2018Vocational Rehabilitation Services2 p.m.Starkweather Conference RoomJessie Parker Office Building510 East 12th StreetDes Moines, Iowa    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 621—2.4(20) as follows:

    621—2.4(20) Intervention and additional parties.  Any interested person may request intervention in any proceeding before the public employment relations board. An application for intervention shall be in writing, except that applications made during a hearing may be made orally to the hearing officer, and shall contain a statement of the reasons for such intervention. When an application for intervention is filed regarding a petition for bargaining representative determination, 621—subrules 4.3(2), 4.4(4), 5.1(2), 5.5(2), and 5.5(3)5.5(4) shall apply.Where necessary to achieve a more proper decision, the board or administrative law judge may, on its own motion or the motion of any party, order the bringing in of additional parties. When so ordered, the board shall serve upon such additional parties all relevant pleadings and allow such parties a reasonable time to respond thereto where appropriate.

        ITEM 2.    Amend rule 621—2.23(20) as follows:

    621—2.23(20) Informal disposition.  The board may assign an administrative law judge to assist the parties in reaching a settlement of any dispute which is the subject of an adjudicatory proceeding. However, no party shall be required to participate in mediation or settle the dispute pursuant to this rule. An administrative law judge assisting the parties under this rule shall not serve as a presiding officer in any proceeding related to the dispute. Adjudicatory proceedings may be voluntarily dismissed without consent of the board except as provided in rule 621—3.6(20) and 621—subrule 4.1(3)4.1(5).

        ITEM 3.    Renumber subrules 4.1(1) to 4.1(3) as 4.1(3) to 4.1(5).

        ITEM 4.    Adopt the following new subrule 4.1(1):    4.1(1) General.      a.    The agency shall determine an appropriate bargaining unit when requested by petition. Once a unit is initially determined, parties may request by petition: reconsideration of the unit, amendment of the unit, or clarification of the unit.    b.    The agency may certify an employee organization to be the exclusive bargaining representative for a unit when requested by a petition or an application for intervention. Once certified, the employee organization will be subject to retention and recertification elections and may be subject to decertification if a petition is filed by an employee of the bargaining unit. The employee organization’s certification may be amended when requested by petition by the employee organization or by the public employer, or when the agency files notice.    c.    The employee organization shall have its certification revoked for failure to pay its election fees, or its certification may be revoked for failure to comply with the requirements of Iowa Code section 20.25.

        ITEM 5.    Adopt the following new subrule 4.1(2):    4.1(2) Representation elections.      a.    Initial certification, retention and recertification, and decertification elections.The initial certification, retention and recertification, and decertification of an employee organization require elections in accordance with 621—Chapter 5. The three types of elections affecting the bargaining representative determination or an employee organization’s certification status are as follows:    (1)   A certification election, which is initiated by the filing of a petition by the employee organization or the public employer, for the initial certification of an employee organization to be the exclusive bargaining representative for a bargaining unit of public employees;     (2)   A retention and recertification election, which is initiated by the filing of notice by the agency, for the retention and recertification of a certified employee organization; and    (3)   A decertification election, which is initiated by a public employee of a bargaining unit, for the decertification of an existing certified employee organization that represents the unit.    b.    Other elections—professional/nonprofessional unit and amendment of unit.When a bargaining unit is determined or amended, an election may be required as provided in 621—Chapter 5. The two types of other elections are as follows:    (1)   A professional and nonprofessional election occurs when the agency files an order directing the election after determining that professional and nonprofessional employees are appropriately included in the same bargaining unit.    (2)   An amendment of unit election occurs when the agency files an order directing the election after determining that a job classification or classifications are appropriately amended into a bargaining unit, but a question of representation exists. A question of representation exists when the amended classifications existed at the time the bargaining unit was originally determined and those classifications would separately constitute an appropriate unit.

        ITEM 6.    Amend renumbered subrule 4.1(3) as follows:    4.1(3) Separate or combined petitions.  RequestRequests forthe initial bargaining unit determination andthe bargaining representative determinationcertification shall be by petitions which may be filed separatelyor on a combined petition form pursuant to rule 621—4.4(20). WhereWhen a request has been made to a public employer to bargain collectively with a designated group of public employees and the boardagency has not previously determined the bargaining unit, the petitions shall be filed jointly or on a combined form provided by the boardprescribed by the agency.

        ITEM 7.    Adopt the following new subrule 4.1(6):    4.1(6) Method of filing of all petitions.  All petitions and subsequent documents submitted pursuant to this chapter shall be electronically filed pursuant to 621—Chapter 16, unless otherwise stated in these rules.

        ITEM 8.    Amend rule 621—4.2(20) as follows:

    621—4.2(20) Unit determination.      4.2(1) Content of petition.  A petition for bargaining unit determination shall be on an agency-prescribed form and filed with the agency. The petition shall contain an identification and description ofidentify and describe the proposed unitand indicate the unit’s status as a public safety or non-public safety unit.    4.2(2) Notice to parties.  Upon the filing of a proper petition, the agency shall serve copies thereof upon other interested parties by certified mail, return receipt requested. The agency shall file a notice to employees, giving notice that the petition has been filed and setting forth the rights of employees under the ActIowa Code chapter 20. The employer shall promptly post the petition and notice to employees in the manner and locations customarily used for the posting of information to employees. If the public employer customarily distributes information to employees by additional means, such as by e-mailemail or hard copy, the public employer shall also promptly distribute the petition and notice to employees by those means.    4.2(3) Notice of hearing.  The board or administrative law judge shall file a notice of hearing setting forth the time, date and place of the hearing and any other relevant information. The public employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If the public employer customarily distributes information to employees by additional means, such as by e-mailemail or hard copy, the employer shall also promptly distribute the notice to employees by those means.    4.2(4) Intervention.  See rule 621—2.4(20).    4.2(5) Professional and/nonprofessionalunit elections.  Should the agency determine, in any case, that professional and nonprofessional employees are appropriately included in the same bargaining unit, the agency shall file an order directing that an election be conducted to determine whether the professional and nonprofessional employees wish to be represented in a single bargaining unit. The election shall be conducted in accordance with rule 621—5.8(20).    4.2(6) Informal settlement of bargaining unit determination.  Cases on bargaining unit determination may be informally settled in the following manner:    a.    The parties may stipulate to the composition of the unit.    (1)   The petitioning party shall prepare a stipulation setting forth in detail the composition of the bargaining unit as agreed upon by all parties. The stipulation shall be signed by the authorized representatives of the parties involved and shall be filed with the agency for informal review and tentative approval. In the event the parties agree to a combined unit of professional and nonprofessional employees, the stipulation shall set forth both those job classifications included within the professional category and those job classifications included within the nonprofessional category.     (2)   If the agency fails to tentatively approve the stipulation, the agency shall notify the parties and, unless the parties amend the stipulation in a manner to gain tentative approval of the agency, the matter shall proceed to hearing.     (3)   If the agency tentatively approves the stipulation, the agency shall file a public notice of proposed decision. The public employer shall promptly post copies of the notice of the proposed decision, for a period of not less than one calendar week, in a prominent place in the main office of the public employer accessible to the general public and in the manner and locations customarily used for the posting of information to employees. If the public employer customarily distributes information to employees by additional means, such as by e-mailemail or hard copy, the employer shall also promptly distribute such notice to employees by those means. The public employer shall also have copies of the notice available for distribution to the public upon request.    b.    Notice of the proposed decision shall identify the parties; specify the terms of the proposed decision; list the names, addresses,and telephone numbers, and email addresses of the parties or their authorized representatives to whom inquiries by the public should be directed; and, further, state the dateand method by which written objection to the proposed decision must be filed with the agency and the address to which such objections should be sent.    c.    Objections to the proposed decision must be filed with the agency, electronically, by ordinary mail or by personal delivery, by the date posted in the notice of proposed decision. Objections shall be in writing and shall set out the specific grounds of objection. The objecting party must identify itself and provide a mailing address,and telephone number, and email address, if available. The agency shall promptly advise the parties of the objections and make any investigation deemed appropriate. If the agency deems the objections to be of substance, the parties may, with agency approval, amend their proposed decision to conform therewith, and the objecting party shall be notified by the agency of the amendment. If the objections cannot be informally resolved, they may be dismissed or resolved at hearing.    d.    Final board decision on the informedinformal settlement shall be reserved until expiration of the time for filing of objections. If no objections have been filed; or if filed objections have been resolved through amendment of the proposed decision; or if filed objections, after inquiry by the board, were found to be frivolous, the board shall endorse the proposed decision as final.    e.    If interested parties are unable to informally settle a case on bargaining unit determination within 15 days of service of a petition, the board or administrative law judge may order any interested party to file with the board its proposed unit description.

        ITEM 9.    Amend rule 621—4.3(20) as follows:

    621—4.3(20) Bargaining representative determination (election petitions).      4.3(1) Form of petition.  Petitions for bargaining representative determination (election petition) shall be on an agency-prescribed form and filed with the agency. These petitions shall be of three types:    a.    A certification petition, filed by an employee organization requesting that through an election it be certified as the exclusive bargaining representative of an appropriate unit of public employees. The name of the employee organization which appears on the petition, or the petition as amended, shall be the name which appears on the election ballot.    b.    A decertification petition, filed by ana bargaining unit employee requesting an election to determine whether a majority of the employees in the bargaining unit wish to continue to be represented by a certified employee organization.    c.    A representation petition, filed by a public employer requesting an election to determine the bargaining representative, if any, of the employees in the bargaining unit.    4.3(2) Showing of interest—certification—decertification—intervention.  Whenever a petition for certification or decertification is filed, or whenever intervention is requested for the purpose of being placed on an election ballot, the petitioner or intervenor shall submit, by ordinary mail or personal delivery, evidence that the petition or application for intervention is supported by 30 percent of the employees in the bargaining unit. In petitions for certification or applications for intervention, such interest showingof interest shall be dated and signed not more than one year prior to its submission; shall contain the job classification of the signatory; and shall contain a statement that the signatory is a member of the employee organization or has authorized it to bargain collectively on the signatory’s behalf. In petitions for decertification, evidence of interest shall be as provided above, except the evidence of interest shall instead contain a statement that the signatory no longer wishes to be represented by the certified employee organization. When a representation petition is filed by an employer, no showshowing of interest will be required.    4.3(3) Determination of showing of interest.  The public employer shall, within seven days of receipt of notice of a certification or decertification petition, submit tofile with the agency a list of the names and job classifications of the employees in the unit which is the subject of the petition or, in the case of a combined petition, the employees in the unit requested by the petitioner. The agency shall administratively determine the sufficiency of the showing of interest upon receipt of the list. This determination, including the identification and number of signers of the showing of interest, shall be confidential and not subject to review, and parties other than the party submitting the interest showingof interest shall not be entitled to a copy or examination of the showing of interest. If the employer fails to furnish the list of employees, the agency shall determine the sufficiency of the showing of interest by whatever means it deems appropriate.     4.3(4) Notice.  Upon the filing of a petition for certification, decertification or representation, the agency shall file a notice to employees, giving notice that an election petition has been filed and setting forth the rights of employees under the ActIowa Code chapter 20. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If the public employer customarily distributes information to employees by additional means, such as by e-mailemail or hard copy, the employer shall also promptly distribute the notice to employees by those means.    4.3(5) Direction of election.  Whenever an election petition is filed which conforms to these rules and the ActIowa Code chapter 20 and the appropriate bargaining unit has been previously determined, an election shall be directed and conductedunder the provisions of 621—Chapter 5.    4.3(6) Intervention.  See 4.1(2)rule 621—2.4(20).

        ITEM 10.    Amend rule 621—4.4(20) as follows:

    621—4.4(20) Concurrent (combined) petitions.      4.4(1) When to file.  A combined petition for both bargaining unit determination and bargaining representative determinationcertification shall be filed whenever a question of representation exists and the bargaining unit has not been previously determinedand a representative has not been certified by the boardagency.    4.4(2) Content of petition.  A combined petition for unit determination and representative determination (election)certification shall be on aan agency-prescribed form provided by the board and shall be filed by delivery to the board.    4.4(3) Notice of petition, hearing, and notice to employees.  Upon receiptthe filing of a combined petition, notice shall be as provided insubrules 4.2(2), 4.2(3) and 4.3(4).    4.4(4) Showing of interest.  Showing of interest shall be as provided insubrules 4.3(2) and 4.3(3). Should the board determine an appropriate unit different than that requested, any employee organization affected may request a reasonable period of time to submit additional evidence of interest sufficient to satisfy the requirements of the ActIowa Code chapter 20.    4.4(5) Scope of hearing.  Hearings on combined petitions shall resolve all issues with regard to both bargaining unit determination and bargaining representative determinationcertification.    4.4(6) Intervention.  See 4.1(2)rule 621—2.4(20).    4.4(7) Professional and nonprofessional elections.  Seesubrule 4.2(5)and rule 621—5.8(20).

        ITEM 11.    Amend rule 621—4.5(20) as follows:

    621—4.5(20) Unit reconsideration.  A petition for reconsideration of an agency-established bargaining unit may be filed by an employee organization, public employer, or an employee of the public employer. This petition may be filed only in combination with a certification petition. Rules 621—4.1(20), 621—4.2(20), 621—4.3(20) and 621—4.4(20) shall apply. A petition for reconsideration of an agency-established bargaining unit covering state employees may not be filed for at least one year after the initial unit determination.The agency may dismiss the petition for unit reconsideration if the petitioner fails to establish that the previously determined bargaining unit is inappropriate.

        ITEM 12.    Amend rule 621—4.6(20) as follows:

    621—4.6(20) Amendment of unit.      4.6(1) Petition.  A petition for amendment of an agency-determined bargaining unit may be filed by the public employer or the certified employee organization. The petition shall contain:    a.    The names, addresses, telephone numbers and e-mailemail addresses of the public employer,and the employee organization, andor their respective representatives.    b.    An identification and description of the proposed amended unit.    c.    The names and addresses of any other employee organizations which claim to represent any employees affected by the proposed amendment or a statement that the petitioner has no knowledge of any other such organization.    d.    Job classifications of the employees as to whom the issue is raised, the number of employees, if any, in each classification, and whether each job classification qualifies as a public safety employee.    e.    A statement identifying the current status of the unit as either a public safety or a non-public safety unit and the change, if any, to the status of the unit which would result from the requested amendment.    f.    A specific statement of the petitioner’s reasons for seeking amendment of the unit and any other relevant facts.    4.6(2) Procedure—decision.  Insofar as applicable, rule 621—4.2(20) shall apply.    4.6(3) Elections; when required.  When a question of representation exists, the agency will conduct an amendment of unit election pursuant to rule 621—5.9(20). A question of representation exists when the job classification(s) sought to be amended into a bargaining unit was in existence at the time the employee organization was certified to represent the bargaining unit and the job classification(s) separately constitutes an appropriate bargaining unit.

        ITEM 13.    Amend rule 621—4.7(20) as follows:

    621—4.7(20) Unit clarification.  A petition to clarify the inclusion or exclusion of job classifications or employees in an agency-determined bargaining unit may be filed by the public employer, an affected public employee, or the certified employee organization. Such petition mustmay be in the absence of a question of representationfiled only if the bargaining unit is represented by a certified bargaining representative. Insofar as applicable, the procedures for such filing shall be as provided in subrule 4.6(1).

        ITEM 14.    Amend subrule 4.8(2) as follows:    4.8(2) Employee organization.  The employee organization must file its petition with the following:    a.    An affidavit(s) that establishes:    (1)   The act or occurrence, which the requested amendment would reflect, was authorized by and accomplished in accordance with the certified employee organization’s constitution and bylaws, which provided members with adequate due process; and    (2)   Substantial continuity of representation has been maintained.    b.    Updated agency reports if there is a change in the employee organization’s name or if there is a change to the employee organization’s governing body. The reports shall include the following:    (1)   An updated PERB annual report that covers the time period from the last annual report to the time of the filing of the petition.    (2)   An updated PERB registration report.    (3)   An updated constitution and bylaws.    c.    Final agency reports for dissolved organizations resulting from a merger. The final agency report shall include a PERB annual report that covers the time period from the last annual report to the time of the merger and shall reflect the closing of the books and accounts of the dissolved employee organization.The certified employee organization may wait and submit its final agency reports following the board’s tentative approval of the amendment of certification.

        ITEM 15.    Amend subrule 4.8(5) as follows:    4.8(5) Public employer posting, decisions and objection period.  When a petition for amendment of certification is filed which the agency deems sufficient to fulfill the requirements of this rule, the agency shall file a public notice of its proposed decision to amend the employee organization’s certification upon the non-petitioning interested parties. Upon receipt, the public employer shall promptly post the notice of proposed decision, for a period of not less than one calendar week, in a prominent place in the main office of the public employer accessible to the general public and in the manner and locations customarily used for the posting of information to employees. If the public employer customarily distributes information to employees by additional means, such as by e-mailemail or hard copy, the employer shall also promptly distribute such notice to employees by those means. The public employer shall also have copies of the proposed decision available for distribution to the public upon request.    a.    The notice of the proposed decision shall identify the parties; specify the terms of the proposed decision; list the names, addresses,and telephone numbers, and email addresses of the parties or their authorized representatives to whom inquiries by the public should be directed; and state the dateand method by which written objection to the proposed decision must be filed.    b.    Objections to the proposed decision must be filed with the agency, electronically, by ordinary mail or by personal delivery, by the date specified in the notice. Objections shall be in writing and shall set out the specific grounds of objection. The objecting party must identify itself and provide a mailing address, telephone number and e-mailemail address. The agency shall promptly advise the parties of the objections and make any investigation deemed appropriate. When an objection is raised, the agency may investigate and dismiss the objection or conduct a hearing pursuant to 621—Chapter 2.    c.    A final agency decision shall be reserved until the expiration of the time for filing objections. If no objections have been filed, the agency may endorse the proposed decision as final.

        ITEM 16.    Amend subrules 5.1(2) and 5.1(3) as follows:    5 5.1 1(2) Election fees.      a.    For certification, retention and recertification, and decertification elections, the employee organization is responsible for and shall prepay the election fees in accordance with this chapter and rules relevant to the specific election. Employee organizations intervening in a certification election shall pay a proportionate share of the election fees.    b.    A certified employee organization may makefile a written request towith the agency for an extension of time in which to pay its election fees. The employee organization may makefile the request after the filing of a certification or decertification petition, but no later than 7 days after the agency’s filing of an order ofdirecting an election. For a retention and recertification election, a certified employee organization may makefile a request after the agency’s filing of its intent to conduct an election, butshall file the request no later than 30 days prior to the commencement of the election periodthe date the election fee is due as provided in the notice of intent to conduct an election. In no event will the agency conduct an election prior to an employee organization’s payment of election fees.     c.    A certified employee organization may file notice of nonpayment to indicate that it will not pay the election fees for a decertification or retention and recertification election. The notice of nonpaymentmay be filed at any time, but must be filed no later than 7 days after the agency’s filing of an order for a decertification election or no later than 30 days prior to the commencement of a retention and recertification election period. The notice shall be signed by an authorized representative of the organization, state that the organization will not pay the election fees, and acknowledge that the agency will not conduct the applicable election and the employee organization’s certification will be revoked.    d.    TheFor retention and recertification elections, the applicable election fee is based upon the number of employees on the voter eligibility list submitted to the agency pursuant to paragraph 5.2(2)“a.”subrule 5.2(2). For certification and decertification elections, the applicable election fee is based upon the list provided pursuant to 621—subrule 4.3(3) to verify the showing of interest.    (1)   When the list contains 10 or fewer eligible voters, the election fee is $10.00$10. When the list contains more than 10 eligible voters, the election fee is $1.00$1 per eligible voter. When the list contains more than 50 eligible voters and subsequent increases or decreases as contemplated by paragraph 5.2(2)“b”subparagraph 5.2(2)“a”(2) or 5.2(2)“b”(2) or successful challenges pursuant to subrule 5.2(3) alter the number of eligible voters by 5 percent or more, the employee organization shall make an additional payment to reflect the increased number of eligible voters or, in the case of a decrease, the agency shall reimburse the employee organization for its overpayment.    (2)   The agency will not request additional payment and will not reimburse the employee organization for an amount less than $10. The agency will not refund the election fee in the event the election fee is paid but the election does not occur.    5 5.1 1(3) Date of electionselection.  For purposes of this chapter, the date of an election shall be the date on which the ballots were countedtallied.

        ITEM 17.    Amend rule 621—5.2(20) as follows:

    621—5.2(20) Eligibility—voter eligibility listlists.      5.2(1) Eligible voters.  Eligible voters are those employees who:    a.    Certification, decertification, professional/nonprofessional, amendment of unit elections.For certification, decertification, professional/nonprofessional, or amendment of unit elections, eligible voters are those employees who:    (1)   Were employedand included in the bargaining unit during the payroll period immediately preceding the direction ofon the date of the order directing an election unless another date is agreed upon by the parties and the agency, and    b.    (2)   Are employed in the bargaining unit on the date of the election.    b.    Retention and recertification elections.    (1)   For retention and recertification elections, eligible voters are those employees who were employed and included in the bargaining unit on the date of the order directing the election, or were employed on another date or dates agreed upon by the parties and the agency.    (2)   In addition to voter eligibility challenges made pursuant to subrule 5.2(3), employee organizations may make postelection challenges to the total number of bargaining unit employees for their respective retention and recertification elections.    1.   The certified employee organization may file a postelection challenge to the number of bargaining unit employees if an eligible voter has left employment and is no longer in the bargaining unit prior to the close of the election or election period. The employee organization shall file this postelection challenge within ten days of the filing of the tally of ballots. The agency shall attempt to resolve the dispute. Whenever postelection challenges are unresolved and determinative of the outcome of an election, a hearing to determine whether an eligible voter left employment and was no longer in the bargaining unit prior to the close of the election or election period shall be scheduled and conducted. The board may make appropriate adjustments to the tally or order a new election based on the board’s findings and conclusions.    2.   The employer is responsible for ensuring the accuracy of the list after its submission and throughout the election period. The employer shall promptly notify the certified employee organization whenever an eligible voter leaves employment and is no longer in the bargaining unit prior to the close of the election or election period.    5.2(2) Eligible voter list.      a.    Certification, decertification, professional/nonprofessional, and unit amendment elections—eligible voter list.    (1)   List for determining fees. The agency will determine the election fee based on the initial employer-provided list of employees used to verify the showing of interest pursuant to 621—subrule 4.3(3).    (2)   Voter eligibility list.    1.   When the agency files a notice of intent to conduct a retention and recertification election or an order that an election, other than a retention and recertification election, be conducted, the employer shall, within seven days of the notice or order, e-mailemail to the agency an alphabetical list of the names,; addresses,;e-mailemail addresses,if known; telephone numbers; and job classifications of the employees eligible to vote, except as provided in subrule 5.6(8). WhereWhen a telephonic/Web-basedtelephonic/web-based election is ordered, the list of eligible voters shall also include the employee’s date of birth, the last four digits of the employee’s social security number and any other information required by the agency.    b.    2.   The agency shall file the list of eligible voters’ names and job classifications. This list shall become the official voting list for the election to be conducted. The agency shall provide to the employee organization the voter list with the employees’ contact information. The employeror employee organization shall e-mailemail proposed additions or deletions of employees’ names, changes in job classifications,or addresses, contact information, or other eligible voter changes to the agency to reflect the current status of eligible votersand to the other party. The parties may further amend the list by agreement.    b.    Retention and recertification elections—eligible voter list.    (1)   List for determining fees.    1.   The agency will determine the election fee based on the following initial employer-provided list of employees. When the agency files a notice of intent to conduct a retention and recertification election, the employer shall, within seven days of the notice, email to the agency an alphabetical list of the names; addresses; email addresses, if known; telephone numbers; and job classifications of the employees in the bargaining unit. When a telephonic/web-based election is ordered, the list of eligible voters shall also include the employee’s date of birth, the last four digits of the employee’s social security number and any other information required by the agency. The employer shall separately email the certified employee organization to confirm that the employer provided the agency with the voter list and will provide the date the list was emailed to the agency and the number of employees on the list.    2.   The agency shall file the list of eligible voters’ names and job classifications. The agency shall provide to the employee organization the voter list with the employees’ contact information.    (2)   Voter eligibility list.    1.   When the agency files an order that the retention and recertification election be conducted, the employer shall, within seven days of the order, email to the agency a second alphabetical list of the names; addresses; email addresses, if known; telephone numbers; and job classifications of the employees eligible to vote. If the original list the employer provided for determining fees is unchanged, the employer does not need to email a subsequent list. The agency shall file the list of eligible voters’ names and job classifications. This list shall become the official eligible voter list for the election to be conducted. The agency shall provide to the employee organization the voter list with the employees’ contact information.    2.   The employer shall not add to or delete from the list any employee name after the submission of the above-described voter eligibility list. By contacting the employer, the certified employee organization may propose additions to or deletions from the list of employees’ names prior to the date of the election for in-person elections, prior to the date the ballots are mailed for mail-ballot elections, or seven days prior to the commencement of the election period for telephonic/web-based elections. The parties may amend the list by agreement prior to the date of the election for in-person elections, prior to the date the ballots are mailed for mail-ballot elections, or seven days prior to the commencement of the election period for telephonic/web-based elections.    5.2(3) Challenges.      a.    Types of challenges.    (1)   A party may challenge, for good cause, the eligibility of any voter in accordance with subrule 5.3(2), 5.3(3) or 5.3(4), whichever is applicable to the election being conducted.The agency shall attempt to resolve the challenge. Whenever challenged ballots areunresolved and determinative of the outcome of an election, a hearingto determine the eligibility of the challenged voter(s) shall be scheduledand conducted.After the conclusion of the hearing, the board may, if necessary, order a new election, and the cost may be taxed to the nonprevailing party.    (2)   In addition to voter eligibility challenges made pursuant to this subrule, employee organizations may make postelection challenges to the total number of bargaining unit employees for the employee organizations’ respective retention and recertification elections in accordance with paragraph 5.2(1)“b.”    b.    Methods of voter eligibility challenges.A party may challenge the eligibility of a voter as follows:    (1)   In-person elections. A party shall challenge a voter’s eligibility prior to the time the voter deposits the voter’s ballot in the ballot box. In the event of a challenge, the challenged voter may mark the ballot in secret, and the election agent shall segregate the ballot by causing it to be placed in a challenged-ballot envelope with appropriate markings and depositing it in the ballot box.    (2)   Mail-ballot elections. A party shall challenge a voter’s eligibility prior to the time the outer envelope containing the voter’s secret envelope and ballot is opened. In the event of a challenge, both the secret envelope and the outer envelope shall remain sealed until the challenge is resolved.    (3)   Telephonic/web-based elections. A party shall challenge a voter’s eligibility in writing to the agency with a copy to the other interested party. For retention and recertification elections, a party shall challenge that voter’s eligibility at least seven days prior to the commencement of the election period for telephonic/web-based elections. For all other elections utilizing this method, a party shall challenge that voter’s eligibility prior to the end of the election period.

        ITEM 18.    Amend rule 621—5.3(20) as follows:

    621—5.3(20) MethodMethods of voting—general procedures.  Types of elections. The agency may conduct an election, in whole or in part, in person, by mail ballotingballot, or through a telephonic/Web-basedtelephonic/web-based system.    5.(2) 5.3(1) In-person election.  An eligible voter shall cast the voter’s ballot by marking the voter’s choice on the ballot and depositing it in the ballot boxor inserting it in a voting machine, whichever is applicable. If a voter inadvertently spoils a ballot, the ballot may be returned to the agent who shall void and retain it and provide another ballot to the voter.Eligible voters may be asked to cast their votes via a nondocument ballot when there is a voting machine present that accommodates this technology.    a.    Absentee ballot. An absentee ballot shall be delivered to an eligible voter upon the voter’s written notice to the agency of the voter’s inability to be present at the election for good cause. The votedmarked absentee ballot mustshall be in the possession of the election agent prior to the close of the in-person election in order to be counted and. The marked absentee ballot shall be contained in the official envelopessecret envelope provided for this purposeto the voter, and the postage-paid, return-addressed outer envelope provided for the return of the ballot to the agency shall be signed by the voter in order for the ballot to be counted.     a.    b.    Observers.Each party to an election may designate an equal number of representatives, not to exceed one per voting site, to act as the party’s observers during the election and tally of ballots. Unless agreed to by the parties, observers shall not be supervisory employees of the public employer.    b.    c.    Ballot box.Upon examination by the observers and prior to the opening of the polls, the election agent shall seal the ballot box so that entry thereto is limited to one slot. In the event that the election is continued for more than one polling period or at more than one polling place, the ballot box shall be sealed in its entirety and shall remain in the custody of the election agent until immediately prior to the next polling period or the counting of the ballots.    d.    Voting machines.The agency may utilize voting machines to assist with the casting or tabulation of votes.    c.    e.    Challenges and tallyTally.A challenge to a voter’s eligibility shall be made with good cause prior to the time the voter deposits the voter’s ballot in the ballot box. In the event of a challenge, the challenged voter may mark the ballot in secret and the election agent shall segregate the ballot by causing it to be placed in a challenged ballot envelope with appropriate markings and depositing it in the ballot box. The agency shalltally the ballots by manual count or electronic count and file the tally of ballots after the close of the election.Void ballots are those which do not indicate a preference or the clear intent of the voter or which appear to identify the voter. The employer shall promptly post copies of the tally of ballots in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by email or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.(3) 5.3(2) Mail ballotMail-ballot election.  When conducting a mail ballotmail-ballot election, the agency shall send an official voting package to each eligible voter by ordinary mail and direct a date by which voted ballots must be received by the agency in order to be counted.    a.    Contents of official voting packages.Voting packages sent to eligible voters shall consist of voting instructions, a ballot, a secret envelope in which saidthe marked ballot is to be inserted, and a postage-paid, return-addressed outer envelope which identifies the voter for purposes of proposing challenges to the voter’s eligibility. In the event of a challenge, both envelopes shall remain sealed until such time as the challenge is resolved.    b.    Tally of ballots—observers—challenges.The agency shall set a time and place for the tally of ballots, at which time representatives ofobservers designated by the parties to the election shall be entitled to be present and challenge for good cause the eligibility of any voter. Challenges must be made prior to the time the outer envelope containing the voter’s secret envelope and ballot is opened. In the event of a challenge, both the secret envelope and the outer envelope shall remain sealed until the challenge is resolved. In the absence of a challenge, theThe voter’s outer envelope shall be opened, and the secret envelope containing the voter’s ballot shall be deposited in the ballot boxcommingled with the other secret envelopes. The agency shalltally the ballots and file the tally of ballots after the close of the election.Void ballots are those which do not indicate a preference or the clear intent of the voter, which appear to identify the voter, which are not enclosed in the secret envelope provided to the voter, or which are returned in an outer envelope which does not bear the voter’s signature. The employer shall promptly post copies of the tally of ballots in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by email or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.(4) 5.3(3) Telephonic/Web-basedTelephonic/web-based election.  The agency may utilize an election services vendor for the receipt of telephonic and Web-basedweb-based ballots and for the tallyingtabulation of those ballots.    a.    Notice of election.When conducting a telephonic/Web-basedtelephonic/web-based election, whether in whole or in part, the agency shall include in the notice of election the telephone number the voter is to call to cast a ballot,and the Web-sitewebsite address for Web-basedweb-based voting, as well as the script of the ballotand a sample ballot or script.    b.    Registration.Eligible voters may be required to register to vote prior to casting a ballot.    b.    c.    Tally and challenges.The agency shall file the tally of ballots after the close of the election period. A party wishing to challenge for good cause the eligibility of any voter shall do so at least two hours prior to the close of the election period. In the event of a challenge, the tally of ballots will not include such vote until the challenge is resolvedFollowing the close of the election period and the agency’s receipt of the ballot tabulation from the election services vendor, the agency shall tally the ballots and file the tally.Void or blank ballots are those which do not indicate a preference or clear choice by the voter in favor of one of the voting options presented by the ballot. The employer shall promptly post copies of the tally of ballots in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by email or hard copy, the public employer shall also promptly distribute such notice to employees by those means.     d.    Inoperable voting system.The board may extend the period of the election due to inoperable voting systems.    5.(5) 5.3(4) Alternate voting method.   When a voter promptly informs the agency of the voter’s inability to cast a ballot using the designated methodmethods of voting, the agency shall assist the voter in using an alternate method to cast a secret ballot.

        ITEM 19.    Amend rule 621—5.4(20) as follows:

    621—5.4(20) Objections to an election.      5.4(1) Objections.  Whenever a party, or the board on its motion, files a timely objection, a hearing shall be scheduled. ObjectionsWritten objections to an electionmay be filed by any public employee, public employer, or employee organization involved in the election or by the board on its own motion. Objections must be filedwith the agency within ten days of the filing of the tally of ballots, even when challenged ballots arechallenges to eligible voters may be determinative of the outcome of the election, and. The objection mustidentify the objecting party; provide the objecting party’s mailing address, telephone number, and email address if available; and contain a statement of facts upon which the objections are based. The objections shall be electronically filed with the agencyThe agency shall promptly advise the parties of the objections and make any investigation deemed appropriate.If the objections cannot be informally resolved, they may be dismissed or resolved at hearing. Hearings on objections shall be conducted pursuant to 621—Chapter 2. The objecting party shall present its evidence first.    5.4(2) Objectionable conduct during election campaigns.  The following types of activity, if conducted during the period beginning with the filing of an election petition with the agency or the agency’sfiling of a notice of intent to conduct a retention and recertification election and ending at the conclusion of the election, if determined by the agency that such activity could have affected the results of the election, shall be considered to be objectionable conduct sufficient to invalidate the results of an election:    a.    Electioneering within 300 feet or within sound of the polling place established by the agency during the conduct of an in-person election;    b.    Misstatements of material facts by any party to the election or its representative without sufficient time for the adversely affected party to adequately respond;    c.    Any misuse of agency documents, including an indication that the agency endorses any particular choice appearing on the ballot;    d.    Campaign speechesby an employer to assembled groups of employees during working hours within the 24-hour periodbeginning 24 hours before the opening of the pollsin an in-person election,the mailing of ballotsin a mail-ballot election, orthe commencement of the telephonic/Web-basedtelephonic/web-based election periodand extending until the close of the in-person polls, the deadline for the agency’s receipt of mail ballots, or the close of the election period in a telephonic/web-based election;    e.    Any polling of employees by a public employer which relates to the employees’ preference for or against a bargaining representative;    f.    Commission of a prohibited practice;    g.    Any other misconduct or other circumstance which prevents employees from freely expressing their preferences in the election.

        ITEM 20.    Amend rule 621—5.5(20) as follows:

    621—5.5(20) Certification elections.      5.5(1) General procedures—notice of election.  a.    Upon the agency’s determination that a certification petition is supported by an adequate showing of interest in accordance with rule 621—4.3(20), the agency shall file an order directing that an election be conducted in a specified manner and that the employer submitemail a list of eligible votersto the agency pursuant to rule 621—5.2(20).    b.    Following the employer’s submission of the list of eligible voters, the agency shall file a notice of election containing a sample ballot and setting forth the date, time, place, method, and purpose of the election, and such additional information as the agency may deem appropriate. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by e-mail or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.5(2) Payment of election fee.  a.    The election fee shall be based on the initial employee list provided by the employer to verify the showing of interest pursuant to 621—subrule 4.3(3).Upon the filing of a certification petition, but no later than seven days after the agency’s filing of an order directing an election, an employee organization shall pay the applicable election fee to the agency, unless an extension of time, upon written request, is granted by the agency. The agency will not conduct an election prior to receiving the applicable election fee from the petitioner. An employee organization’s failure to pay the applicable election fee in a timely manner will result in the agency’s dismissal of the certification petition.The election fee shall be paid by check payable to the agency and is deemed paid upon receipt by the agency or, if submitted by mail, on the date of the U.S. Postal Service postmark affixed to the envelope in which the payment was mailed.    b.    An intervening employee organization shall pay the applicable election fee to the agency within seven days after the agency’s grant of its application to intervene. Failure to pay the applicable election fee in a timely manner will result in the intervenor’s exclusion from the ballot.    5.5(3) Notice of election.  Following the employer’s submission of the list of eligible voters, the employee organization’s payment of the applicable election fee and the expiration of the time for intervention as provided in subrule 5.5(4), the agency shall file a notice of election containing a sample ballot or script and setting forth the date, time, place, method, and purpose of the election and such additional information as the agency may deem appropriate. The employer shall promptly post copies of the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by email or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.(3) 5.5(4) Time for interventionIntervention.      a.    No employee organization other than the petitioner shall be placed on the ballot unless application for intervention, as provided in rule 621—2.4(20), is filed with the agency within seven days after the filing of the agency’s order directing the election in which intervention is sought. An employee organization seeking intervention shall submit to the agency, by ordinary mail or personal delivery, an adequate showing of interest as provided in 621—subrule 4.3(2) within seven days after the agency’s direction of an election.    b.    An intervening employee organization shall pay the applicable election fee to the agency within seven days after the agency’s grant of its application to intervene. The election fee shall be paid by check payable to the agency and is deemed paid upon receipt by the agency or, if submitted by mail, on the date of the U.S. Postal Service postmark affixed to the envelope in which the payment was mailed. Failure to pay the applicable election fee in a timely manner will result in the intervenor’s exclusion from the ballot.    c.    Withdrawal from ballot.An intervening employee organization may, upon itsfiling of a written request, be removed from the ballot with the approval of the agency.    5.5(5) Ballots.  Ballots shall contain the question required by Iowa Code section 20.15 as amended by 2017 Iowa Acts, House File 291, section 9. The question in an election where only one employee organization appears on the ballot shall ask, “Do you wish to be represented for purposes of collective bargaining by [name of employee organization]?” followed by the choices “Yes, I wish to be represented by [name of employee organization]” or “No, I do not wish to be represented”; the.” The question in an election where more than one employee organization appears on the ballot shall ask: “Do you wish to be represented for purposes of collective bargaining by:” and shall then list horizontally or vertically thereafter the choices available, including the name of each employee organization and the choice of “Neither” or “No Representative,” as is applicable.    5.5(6) Certification of results and compliance with Iowa Code section 20.25.      a.    Upon completion of a valid certification election in which an employee organization received the votes of a majority of the employees in the bargaining unit and the employee organization complies with the provisions of Iowa Code section 20.25, the agency shall file an order certifying that employee organization as the exclusive bargaining representative of the employees in the bargaining unit.    b.    Upon completion of a valid certification election in which none of the employee organizations on the ballot received the votes of a majority of the employees in the bargaining unit, the agency shall file an order of noncertification.    c.    If an employee organizationwhich received the votes of a majority of the employees in the bargaining unit fails to comply with the provisions of Iowa Code section 20.25 within 90 days of the completion of a validcertification election, the agency shall file an order of noncertification; provided, however, that extensions of time to comply may be granted by the board upon good cause shown.    5.5(7) Bars to certification elections.      a.    The agency shall not consider a petition for certification of an employee organization as the exclusive representative of a bargaining unit unless a period of two years has elapsed from the date of any of the following:    (1)   The last certification election in which an employee organization was not certified as the exclusive representative of that bargaining unit.     (2)   The last retention and recertification election in which an employee organization was not retained and recertified as the exclusive representative of that bargaining unit.    (3)   The last decertification election in which an employee organization was decertified as the exclusive representative of that bargaining unit.    b.    The agency shall not consider a petition for certification of an employee organization as the exclusive bargaining representative of a bargaining unit if the bargaining unit is already represented by a certified bargaining representative.

        ITEM 21.    Amend rule 621—5.6(20) as follows:

    621—5.6(20) Retention and recertification elections.      5.6(1) Timing of election periods.      a.    The agency shall conduct an election, prior to the expiration of a collective bargaining agreement between an employer and a certified employee organization, to determine if the employees in a represented bargaining unit wish to retain and recertify the unit’s certified representative. Elections will be conducted not less than once every five years.     b.    For a certified employee organization that is a party to a collective bargaining agreement with a June 30 expiration date, the organization’s retention and recertification election shall occur not earlier than June 1 nor later than November 1 in the year prior to the expiration of the agreement.    c.    For a certified employee organization that is a party to a collective bargaining agreement with an expiration date other than June 30, the organization’s retention and recertification election shall occur not earlier than 365 days nor later than 270 days prior to the expiration of the agreement, except as provided in subrule 5.6(10).    d.    If the certified employee organization has paid the applicable election fee in a timely manner as provided in subrule 5.6(4)5.6(5), the organization’s status shall not be adversely affected if the election is not concluded or the results of the election are not certified in compliance with this rule.    e.    When scheduling a retention and recertification election, the agency will presume the collective bargaining agreement is for a term of one year commencing July 1 and ending June 30 unless the agreement clearly states an alternate term andeffective dates.    f.    Should an employer fail to file a collective bargaining agreement with the agency as required by Iowa Code section 20.29 as amended by 2017 Iowa Acts, House File 291, section 15, or if the parties have no agreement, the agency will, for purposes of scheduling the election, presume a maximum expiration date of five years pursuant to Iowa Code section 20.9 as amended by 2017 Iowa Acts, House File 291, section 6, or two years pursuant to Iowa Code section 20.15 as amended by 2017 Iowa Acts, House File 291, section 9, whichever is applicable, unless the employer subsequently submits a collective bargaining agreement that allows the agency to conduct an earlier election in accordance with subrule 5.6(1).    g.    An extension of a collective bargaining agreement will alter the timing of the retention and recertification election only if the parties have reached agreement on the extension and have notified the agency in writing prior to the date the fee is due as set forth in the notice of intent to conduct the election.Should the parties’ collective bargaining agreement inclusive of any extensions exceed five years, the agency will, for purposes of scheduling the election, presume a maximum duration of five years pursuant to Iowa Code section 20.9 as amended by 2017 Iowa Acts, House File 291, section 6, or two years pursuant to Iowa Code section 20.15 as amended by 2017 Iowa Acts, House File 291, section 9, whichever is applicable.     h.    AAt least 30 days prior to the commencement of the retention and recertification election period, a public employer shall notify the agency if the certified employee organization has not been correctly identified as one which requires an upcoming election. The public employer shall submit to the agency all relevant information requested.The agency shall conduct an investigation to determine whether the election is required by statute and rule.    5.6(2) General procedure.      a.    Upon determining that a retention and recertification election is required, the agency shall file a notice of intent to conduct an election which shall contain the dates of the election period; the place, method, and purpose of the election;the date the voter list for determining fees is due; and the date upon which the employee organization shall pay the applicable election fee. The agency shall order the public employer’s submission of the voter eligibility list in accordance with rule 621—5.2(20) and subrule 5.6(4).    b.    Following thepublic employer’s submission of the list of eligible voters as provided in subrule 5.6(4) and the agency’s receipt of the applicable election fee from the certified employee organization, the agency will file an order directing a retention and recertification election.andc.    The agency will file a notice of election, copies of which shall be promptly posted by the employer in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by e-mailemail or hard copy, the public employer shall also promptly distribute such notice to employees by those means. Such notices shall contain a sample ballot or script and shall set forth the dates of the election period; time, place, method, and purpose of the election; and such additional information as the boardagency may deem appropriate.    5.6(3) Objection to notice of intent to conduct an election.      a.    Thecertified employee organization or public employer may file an objection asserting that the election should not be conducted for reasons set forth in the objection. The objection shall be in writing and electronically filed no later than seven days following the date of the notice of intent to conduct an election.     b.    The agency may conduct a preliminary investigation of the objection and determine if the objection has merit. The agency will dismiss objections without merit and schedule hearings for all other objections. Hearings on objections shall be conducted pursuant to 621―Chapter 2. The objecting party shall present its evidence first.    5.6(4) Eligible voter listfor determining election fee.      a.    The public employer shall submitemail to the agency by e-mail a list of the employees in the bargaining unit in question within seven days of the filing of the notice of intent to conduct an election, except as provided in subrule 5.6(8). This list shall be organized alphabetically and contain the names,; addresses, e-mail; email addresses,if known; job classifications,; dates of birth,; the last four digits of the employees’ social security numbers,; and any other information required by the agency.The employer shall separately email the certified employee organization to confirm that the employer provided the agency with the voter list and will provide the date the list was emailed to the agency and the number of employees on the list. The agency shall file the list following its redaction of employee dates of birth and partial social security numbers. This list shall become the official voting list for the election to be conducted. The employer shall e-mail additions or deletions of employees’ names or any other changes in the list to the agency. The parties may further amend the list by agreementof eligible voters’ names and job classifications.The agency shall provide to the certified employee organization the list with the employees’ contact information. The certified employee organization shall use this list to determine the election fee as provided in subrule 5.6(5).    b.    If the public employer fails to submit the list of eligible voters to the agency in a timely fashionby the deadline set in the notice, the agency will refrain from conductingnot conduct the election,and will file an order recertifying the employee organization, and may require the employer to reimburse the agency or the employee organization for the cost of the election.    5.6(5) Payment ofelection fee.  A certified employee organization shall pay the applicable election fee at least 30 days prior to the commencement of the election period as set forth in the notice of intent to conduct the election, except as otherwise authorized by this subrule or provided in subrule 5.6(8).The election fee shall be paid by check payable to the agency and is deemed paid upon receipt by the agency or, if submitted by mail, on the date of the U.S. Postal Service postmark affixed to the envelope in which the payment was mailed. The agency may grant a certified employee organization’s written request for an extension of time to pay the feefor good cause if the request is filed at least 30 days prior to the commencement of the election periodas set forth in the notice of intent to conduct the election. The agency will not conduct an election prior to receiving the applicable election fee. The certified employee organization’s failure to pay the applicable election fee in a timely mannerby the deadline set in the notice shall result in revocation of the organization’s certification.    5.6(6) Voter eligibility list.      a.    When the agency files an order directing that the retention and recertification election be conducted, the employer shall, within seven days of the order, email to the agency a second alphabetical list of the names; addresses; email addresses, if known; telephone numbers; and job classifications of the employees eligible to vote. If the list the employer previously provided pursuant to subrule 5.6(4) is unchanged, the employer does not need to email a subsequent list. The agency shall file the list of eligible voters’ names and job classifications. This list shall become the official eligible voting list for the election to be conducted. The agency shall provide to the certified employee organization the voter list with the employees’ contact information.    b.    The employer shall not add to or delete from the list any employee name after the submission of the above-described voter eligibility list. By contacting the employer, the certified employee organization may propose additions to or deletions from the list of employees’ names prior to the date of the election for in-person elections, prior to the date the ballots are mailed for mail-ballot elections, or seven days prior to the commencement of the election period for telephonic/web-based elections. The parties may amend the list by agreement prior to the date of the election for in-person elections, prior to the date the ballots are mailed for mail-ballot elections, or seven days prior to the commencement of the election period for telephonic/web-based elections.    5.(6) 5.6(7) Ballots.  Ballots shall contain the question required by Iowa Code section 20.15 as amended by 2017 Iowa Acts, House File 291, section 9, asking “Do you want [name of certified employee organization] to be retained and recertified and continue to be your exclusive bargaining representative?” followed by the choices “Yes, I want [name of certified employee organization] to continue to represent me” or “No, I do not want [name of certified employee organization] to continue to represent me.”    5.6(8) Postelection challenges.      a.    In addition to voter eligibility challenges made pursuant to subrule 5.2(3), a certified employee organization may make postelection challenges to the total number of bargaining unit employees for their respective retention and recertification elections. The certified employee organization may file a postelection challenge to the number of bargaining unit employees if an eligible voter has left employment and is no longer in the bargaining unit prior to the close of the election or election period. The employee organization shall file this postelection challenge within ten days of the filing of the tally of ballots. The agency shall attempt to resolve the dispute. Whenever postelection challenges are unresolved and determinative of the outcome of an election, a hearing to determine whether an eligible voter left employment and was no longer in the bargaining unit prior to the close of the election or election period shall be scheduled and conducted. The board may make appropriate adjustments to the tally or order a new election based on the board’s findings and conclusions.    b.    The employer is responsible for ensuring the accuracy of the list after its submission and throughout the election period. The employer shall promptly notify the certified employee organization whenever an eligible voter leaves a position of employment in the bargaining unit prior to the close of the election or election period.    5.(7) 5.6(9) Certification of results.      a.    Upon completion of a valid retention and recertification election in which an employee organization received the votes of a majority of employees in the bargaining unit, the agency shall file an order recertifying the employee organization as the exclusive bargaining representative of the employees in the bargaining unit.    b.    Upon completion of a valid retention and recertification election in which an employee organization did not receive the votes of a majority of employees in the bargaining unit, the agency shall file an order decertifying the employee organization as the exclusive bargaining representative of the employees in the bargaining unit.    5.(8) 5.6(10) Elections foremployee organizations that represent employees of school districts, area education agencies and community colleges.      a.    If a certified employee organization representing employees of a school district, area education agency, or community college is scheduled for a retention and recertification election to be held in September of any given year, the following timeline applies:The employer shall submit to the agency an employee list as described in subrule 5.6(4) at least 15 days prior to the commencement date of the election period. The certified employee organization shall pay the applicable election fee at least 10 days prior to the commencement of the election period.b.    If certified employee organizations representing employees of a school district, area education agency, or community college would otherwise be scheduled for a retention and recertification election to be held between May 1 and August 31September 30, the agency will postpone those elections until October of that calendar year and the timelines of subrules 5.6(2), 5.6(4), and 5.6(5) will apply.

        ITEM 22.    Amend rule 621—5.7(20) as follows:

    621—5.7(20) Decertification electionelections.      5.7(1) General procedure—eligibility list—notice of electionEligible voter list.  a.    Upon the agency’s determination that a decertification petition is supported by an adequate showing of interest in accordance with rule 621—4.3(20), the agency shall file an order directing that an election be conducted in a specified manner not less than 150 days before the expiration date of the bargaining unit’s collective bargaining agreement and that the employer submit a list of eligible voters pursuant to rule 621—5.2(20), unless the election is barred by subrule 5.7(5)5.7(6).    b.    Following the employer’s submission of the list of eligible voters, the agency shall file a notice of election containing a sample ballot and setting forth the date, time, place, method, and purpose of the election, and such additional information as the board may deem appropriate. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by e-mail or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.7(2) Payment ofelection fee.  The election fee shall be based on the initial employee list provided by the employer to verify the showing of interest pursuant to 621—subrule 4.3(3).After the filing of a decertification petition, but no later than seven days after the agency’s filing of an order directing an election, athe certified employee organization shall pay the applicable election fee to the agency, unlessthe organization’s written request for an extension of time, upon written request,to pay the fee for good cause is granted by the agency.The election fee shall be paid by check payable to the agency and is deemed paid upon receipt by the agency or, if submitted by mail, on the date of the U.S. Postal Service postmark affixed to the envelope in which the payment was mailed. The agency will not conduct an election prior to receiving the applicable election fee. A certified employee organization’s failure to pay the applicable election fee in a timely manner shall result in the revocation of the employee organization’s certification.    5.7(3) Notice of election.  Following the employer’s submission of the list of eligible voters and the employee organization’s payment of the applicable election fee, the agency shall file a notice of election containing a sample ballot or script and setting forth the date, time, place, method, and purpose of the election, and such additional information as the agency may deem appropriate. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by email or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.(3) 5.7(4) Ballots.  Ballots shall contain the question required by Iowa Code section 20.15 as amended by 2017 Iowa Acts, House File 291, section 9, asking “Do you want [name of certified employee organization] to be decertified by the Public Employment Relations Board and cease to be your exclusive bargaining representative?” followed by the choices “Yes, I no longer wish to be represented by [name of certified employee organization]” or “No, I want to continue to be represented by [name of certified employee organization].”    5.(4) 5.7(5) Certification of results.      a.    Upon completion of a valid decertification election in which a majority of the employees in the bargaining unit voted to decertify the employee organization, the agency shall file an order decertifying the employee organization as the exclusive bargaining representative of the employees in the bargaining unit.    b.    Upon completion of a valid decertification election in which a majority of the employees in the bargaining unit did not vote to decertify the employee organization, the agency shall file an order continuing the certification of the employee organization as the exclusive bargaining representative of the employees in the bargaining unit.    5.(5) 5.7(6) Bars to decertification election.      a.    The agency shall not consider a petition for decertification of an employee organization unless the collective bargaining agreement exceeds two years in duration. The agency shall not consider a decertification petition during the pendency of a retention and recertification proceeding.    b.    The agency shall not consider a decertification petition during pendency of a retention and recertification proceeding.    b.    c.    The agency shall not schedule a decertification election within one year of a prior certification, retention and recertification, or decertification election involving the bargaining unit.

        ITEM 23.    Amend rule 621—5.8(20) as follows:

    621—5.8(20) Professional and nonprofessional electionelections.      5.8(1) General procedure—eligibility list—notice of election.  a.    Should the agency determine, in any case, that professional and nonprofessional employees are appropriately included in the same bargaining unit, the agency shall file an order directing that an election be conducted to determine whether those professional and nonprofessional employees agree to be represented in a single bargaining unit and that the employer submit by e-mailemail separate lists of eligible professional and nonprofessional voters pursuant to rule 621―5.2(20).    b.    The public employer shall e-mail the lists of employees in the professional and nonprofessional categories to the agency within seven days of the agency’s order. The lists shall be organized alphabetically and contain the names, addresses, e-mail addresses, and job classifications of the employees eligible to vote, and any other information required by the agency. The lists submitted by the employer shall be filed by the agency and shall become the official voting lists for the election to be conducted. The employer shall e-mail additions or deletions of employees’ names or any other changes in the list to the agency. The lists may be further amended by agreement of the parties.    c.    Following the employer’s submission of the lists of eligible voters, the agency shall file a notice of election containing a sample ballot for each category of employee and setting forth the date, time, place, method, and purpose of the election, and such additional information as the agency may deem appropriate. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by e-mail or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    d.    No election fee is assessed for an election held pursuant to this rule.    5.8(2) Voter eligibility list.      a.    The public employer shall email the lists of employees in the professional and nonprofessional categories to the agency within seven days of the agency’s order. The lists shall be organized alphabetically and contain the names; addresses; email addresses, if known; and job classifications of the employees eligible to vote; and any other information required by the agency. The agency shall file the lists of eligible voters’ names and job classifications. These lists shall become the official voting lists for the election to be conducted. The agency shall provide to the employee organization the voter lists with the employees’ contact information.    b.    The employer or employee organization shall email proposed additions or deletions of employees’ names, changes in job classifications, addresses, contact information, or other eligible voter changes to the agency and other party. The parties may amend the lists by agreement.    5.8(3) Notice of election.  Following the employer’s submission of the lists of eligible voters, the agency shall file a notice of election containing a sample ballot or script for each category of employee and setting forth the date, time, place, method, and purpose of the election, and such additional information as the agency may deem appropriate. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by email or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.8(4) Election fee.  No election fee is assessed for an election held pursuant to this rule.    5.(2) 5.8(5) Ballots.  Ballots shall contain the following question, “Do you agree to the inclusion of professional and nonprofessional employees in the same bargaining unit?” followed by the choices “Yes” or “No.”    5.(3) 5.8(6) Certification of results.      a.    Upon completion of a valid professional/nonprofessional election in which separate majorities ofthe eligible voters in both the professional and nonprofessional employees in the proposed unitcategories voted in favor of their inclusion in the same bargaining unit, the agency shall define a bargaining unit which includes both professional and nonprofessional employees.    b.    Upon completion of a valid professional/nonprofessional election in which separate majorities ofthe eligible voters in one or bothof the professional and nonprofessional employees in the proposed unitcategories did not vote in favor of theiremployees’ inclusion in the same bargaining unit, the agency shall not define a bargaining unit which includes both professional and nonprofessional employees.

        ITEM 24.    Amend rule 621—5.9(20) as follows:

    621—5.9(20) Amendment of unit elections.      5.9(1) General procedure—eligibility list—notice of election.   Should the agency determine that a job classification or classifications are appropriately amended into a bargaining unit, but that those classifications existed at the time the employee organization was certified and would separately constitute an appropriate unit, the agency shall file an order directing that an election be conducted. The election will determine whether a majority of the employees in those classifications wish to be represented by the existing certified employee organization. Theorder shall further require the employer shall submit by e-mailto email a list of the employees in those classifications pursuant to rule 621—5.2(20).    a.    The public employer shall e-mail the list of employees to the agency within seven days of the agency’s order. The list shall be organized alphabetically and contain the names, addresses, e-mail addresses, and job classifications of the employees eligible to vote. The agency shall file the list, which shall become the official voting list for the election to be conducted. The employer shall e-mail additions or deletions of employees’ names or any other changes in the list to the agency. The parties may further amend the list by agreement.    b.    Following the employer’s submission of the list of eligible voters, the agency shall file a notice of election containing a sample ballot and setting forth the date, time, place, method, and purpose of the election, and such additional information as the board may deem appropriate. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by e-mail or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    c.    No election fee is assessed for an election held pursuant to this rule.    5.9(2) Voter eligibility list.  The public employer shall email the list of employees to the agency within seven days of the agency’s order. The list shall be organized alphabetically and contain the names; addresses; email addresses, if known; and job classifications of the employees eligible to vote; and any other information required by the agency. The agency shall file the list of eligible voters’ names and job classifications, which shall become the official voting list for the election to be conducted. The employer or employee organization shall email proposed additions or deletions of employees’ names, changes in job classifications, addresses, contact information or other eligible voter changes to the agency and other party. The parties may further amend the list by agreement.    5.9(3) Notice of election.  Following the employer’s submission of the list of eligible voters, the agency shall file a notice of election containing a sample ballot or script and setting forth the date, time, place, method, and purpose of the election, and such additional information as the board may deem appropriate. The employer shall promptly post the notice in the manner and locations customarily used for the posting of information to employees. If a public employer customarily distributes information to employees by additional means, such as by email or hard copy, the public employer shall also promptly distribute such notice to employees by those means.    5.9(4) Election fee.  No election fee is assessed for an election held pursuant to this rule.    5.(2) 5.9(5) Ballots.  Ballots shall contain the following question, “Do you wish to be represented for purposes of collective bargaining by [name of employee organization]?” followed by the choices “Yes, I wish to be represented by [name of employee organization]” or “No, I do not wish to be represented.”    5.(3) 5.9(6) Certification of results.      a.    Upon completion of a valid amendment of unit election in which a majority of the eligible voters cast ballots in favor of representation by the certified employee organization, the agency shall file an order amending the unit as previously determined to be appropriate by the agency.    b.    Upon completion of a valid amendment of unit election in which a majority of the eligible voters did not cast ballots in favor of representation by the certified employee organization, the agency shall file an order dismissing the amendment of unit petition.

        ITEM 25.    Amend rule 621—5.10(20) as follows:

    621—5.10(20) Destruction of ballots.  In the absence of litigation over the validity or outcome of an election and after a period of 60 days has elapsed from the date of the filing of an order of certification, noncertification, retention and recertification, decertification or continued certification of an employee organization pursuant to the election, the agency will cause the ballots cast in the election to be destroyed.

        ITEM 26.    Amend subrule 6.3(2) as follows:    6.3(2) Petitions for expedited resolution.      a.    In the event that a negotiability dispute arises between the employer and the certified employee organization, either party may petition the agency for expedited resolution of the dispute. The petition shall be filed and set forth the following:    (1)   The name and address of the petitioner and the name, address, telephone number, and e-mailemail address of the petitioner’s representative;    (2)   The name and address of the respondent and the name, address, telephone number, and e-mailemail address of the respondent’s representative;    (3)   The material facts of the dispute; and    (4)   The verbatim text of the proposal at issue.    b.    The petitioner shall promptly serve the other party with a copy of the petition and file proof thereof with the agency in accordance with 621—subrules 2.15(3) and 16.10(1).

        ITEM 27.    Amend subrule 6.4(5) as follows:    6.4(5) Agreement and stipulation.  If the parties are in agreement, the parties shall complete a stipulation form prescribed by the agency. The stipulation shall be signed by the authorized representatives of the parties, and the certified employee organization shall submit it to the agency by e-mailemail, ordinary mail, or personal delivery.

        ITEM 28.    Amend subrule 6.4(7) as follows:    6.4(7) Deadlines.  The stipulation shall be submitted or a petition filed on or before the dates indicated:    a.    July 1August 1 for contracts that expire January 1 to March 31 of the subsequent year.    b.    October 1November 1 for contracts that expire April 1 to June 30 of the subsequent year.    c.    January 1February 1 for contracts that expire July 1 to September 30 of the same year.    d.    April 1May 1 for contracts that expire October 1 to December 31 of the same year.

        ITEM 29.    Amend rule 621—6.6(20) as follows:

    621—6.6(20) Filing of agreement.  Apublic employer shall file a copy of the collective bargaining agreement entered into between athe public employer and a certified employee organization and made final under Iowa Code chapter 20 shall be filed with the agency by the public employer. The public employer shall file the copy within ten days of the date on which the agreement is entered into.

        ITEM 30.    Renumber subrules 7.7(2) to 7.7(5) as 7.7(3) to 7.7(6).

        ITEM 31.    Adopt the following new subrule 7.7(2):    7.7(2) Procedures for state agreements effective in a year following an Iowa Code section 39.9 gubernatorial election.      a.    A ratification election referred to in Iowa Code section 20.17(4) shall not be held and the parties shall not request arbitration pursuant to Iowa Code section 20.22(1) until at least two weeks after the beginning date of the governor’s term of office.    b.    Within five days from the beginning date of the governor’s term of office, the governor shall accept or reject a proposed statewide collective bargaining agreement if one exists. If the proposed agreement is rejected, the parties shall commence bargaining anew in accordance with Iowa Code section 20.17 and exchange initial proposals within the same five-day period.    c.    Negotiations shall be complete not later than March 15 of that year unless the parties mutually agree to a different deadline.    d.    The parties shall mutually agree to alternative deadlines for the completion of bargaining procedures set forth in Iowa Code sections 20.19, 20.20, and 20.22 to ensure the completion of negotiations not later than March 15 or other mutually agreeable deadline.

        ITEM 32.    Amend subrule 13.7(2) as follows:    13.7(2) Mediator privilege.  In accordance with Iowa Code section 20.31(2), a mediator shall not testify in judicial, administrative,arbitration, or grievance proceedings regarding any matters occurring in the course of a mediation, including any verbal or written communication or behavior, other than facts relating exclusively to the timing or scheduling of mediation. A mediator shall not produce or disclose any documents, including notes, memoranda, or other work product, relating to mediation, other than documents relating exclusively to the timing or scheduling of mediation.    ARC 3670CRegents Board[681]Notice of Intended Action

    Proposing rule making related to traffic and parking at universities and providing an opportunity for public comment

        The Board of Regents hereby proposes to amend Chapter 4, “Traffic and Parking at Universities,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 262.9.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 262.9, 262.69 and 805.8A.Purpose and Summary    The proposed amendment in Item 1 revises the definition of “bicycle” to include an electric/battery-powered bicycle with a motor of less than 750 watts. The proposed amendment in Item 2 revises subrule 4.30(4) regarding parking privileges for persons with disabilities to clarify the requirements for obtaining a permit to park in facilities designated for use by persons with disabilities. The proposed amendment in Item 3 revises subrule 4.31(2) regarding sanctions by increasing the monetary sanction imposed for certain violations of parking rules. Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to rule 681—19.18(17A). Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on April 3, 2018. Comments should be directed to: Aimee Claeys Board of Regents, State of Iowa11260 Aurora AvenueUrbandale, Iowa 50322-7905Fax: 515.281.6420Email: aimee.claeys@iowaregents.eduPublic Hearing    No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend rule 681—4.2(262), definition of “Bicycle,” as follows:        "Bicycle" means any wheeled vehiclewhich has two or three wheels and fully operable pedals and which is not self-propelled and which isa traditional bicycle designedsolely to be pedaled by the rider.An electric/battery-powered bicycle designed not only to be pedaled by the rider but also propelled by an electric motor of less than 750 watts (one horsepower) may be treated as a bicycle and may be parked at bicycle racks.

        ITEM 2.    Amend subrule 4.30(4) as follows:    4.30(4) Persons with disabilities.  Persons with disabilities will be granted parking privileges in parking facilities designated for use by persons with disabilities. Persons with disabilities may apply for special parking privileges for up to six months upon issuance of a letter by the director of student health service, or the director’s designee; rehabilitation counselor, student counseling service; or by a personal physician, indicating the character, extent, probable duration of the disability, and certifying the need for special parking. After an initial six months, a faculty or staff member or a studentPersons must present a currently valid department of transportation parking permit for persons with disabilities to renewobtain the campus permit. Parking facilities designated for persons with disabilities shall be so regulated all hours of all days.

        ITEM 3.    Amend subrule 4.31(2) as follows:    4.31(2) Sanction.  Reasonable monetary sanctions may be imposed for violation of these rules. The amount of the sanction approved by the board of regents, state of Iowa, is as follows:    OffensesSanctions for Each Offense    Altering, forging or counterfeiting any parking permit (4.30(5))    $150    Unauthorized possession and use of a parking permit (4.30(5))    $150    Failure to comply with signs regulating campus traffic flow (681—4.27(262))    $30    Driving on campus walks or lawns (4.27(6), 4.27(8))    $30    Driving on closed streets (4.27(3))    $30    Driving on bike paths (4.27(7))    $30    Access to restricted areas by means other than established gate openings (4.29(5))    $30    Moving or driving around a barricade (4.29(5))    $30    Improper use of gate card (681—4.29(262))    $20    Illegal parking (4.29(7))    $40$50    Improper parking (4.29(7))    $15$25    Overtime parking at meters (4.29(2))    $10$15    Parking without an appropriate permit in a reserved lot or space (681—4.29(262))    $30$50    Improper affixing or failure to display a permit (681—4.28(262))    $5    Failure to purchase a parking receipt (4.29(2))    $10$15    Improper parking in a space or stall designated for persons with disabilities (681—4.29(262), 4.30(4))    $200    Failure to display a current bicycle registration (4.28(4))    $5    Bicycle improperly parked (4.29(9))    $7.50    Improper use of roller skates, roller blades or skateboard (4.27(9))    $25    All other violations    $15Violations that continue for more than one hour may receive additional sanctions.Sanctions may be assessed against the owner or operator of the vehicle involved in each violation or against any person in whose name the vehicle is registered or parking privileges have been granted and may be charged to the violator’s university account. Sanctions may be added to student tuition bills or may be deducted from student deposits or from the salaries or wages of employees or from other funds in the possession of the university.    ARC 3674CUtilities Division[199]Notice of Intended Action

    Proposing rule making related to inmate calling rates and providing an opportunity for public comment

        The Utilities Board hereby proposes to amend Chapter 22, “Service Supplied by Telephone Utilities,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 17A.4, 17A.7, 476.2 and 476.91.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 476.91.Purpose and Summary    This proposed rule making implements rate caps on charges that may be assessed to inmates in Iowa correctional facilities and their families for local and intrastate telephone calls.    The Board issued an order commencing rule making on February 9, 2018.  The order is available on the Board’s electronic filing system, efs.iowa.gov, under Docket No. RMU-2017-0004.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 199—1.3(17A,474,476). Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Board no later than 4:30 p.m. on April 3, 2018. Comments should be directed to: Iowa Utilities BoardElectronic Filing System (EFS) at efs.iowa.govPhone: 515.725.7337 Email: efshelpdesk@iub.iowa.govPublic Hearing    No public hearing is scheduled at this time. An oral presentation regarding this rule making will be scheduled at a later date. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

        ITEM 1.    Adopt the following new subrule 22.19(8):    22.19(8) AOS companies providing inmate telephone service.  AOS companies that provide local or intrastate telephone services to inmates housed in prisons, jails, or other correctional facilities operated or contracted for operation by Iowa government officials shall charge rates and fees for inmate telephone services that do not exceed the following rates:    a.    For local and intrastate collect calling services, AOS companies may not charge a rate of more than $0.25 per minute. For prepaid (debit and calling card) services, AOS companies may not charge a rate of more than $0.21 per minute. For single payment products, which include text collect and credit or debit cards, AOS companies may not charge a rate of more than $0.25 per minute.    b.    AOS companies may pass the following ancillary charges through to the end user of the collect inmate service directly with no markup:    (1)   Automated payment fees (includes payments by interactive voice response, web, or kiosk): $3.    (2)   Live agent fee (phone payment or account set up with the option use of a live operator): $5.95.    (3)   Paper bill/statement fees: $2.    (4)   Electronic bill/statement fees: No charge.    (5)   Prepaid account funding minimums and maximums: There shall be no prepaid account funding minimum, and any prepaid account funding maximum shall be no less than $50.    (6)   Third-party financial transaction fees, including credit card processing fees and transfers from third-party commissary accounts: The provider shall pass the charge through to the end user directly with no markup.    c.    The end user shall not be billed by an AOS company for any ancillary fees other than those set forth above, excluding applicable government taxes and fees.    d.    Any AOS company providing inmate local or intrastate telephone services that wishes to increase rates in excess of the above per-minute or ancillary rate caps shall file an application for rate increase with the board pursuant to Iowa Code section 476.6 and 199—Chapter 26, along with a cost justification for the request. No rate increases in excess of the rates contained in this subrule may be implemented without board approval.     ARC 3672CWorkforce Development Department[871]Notice of Intended Action

    Proposing rule making related to claims and benefits and benefit payment control and providing an opportunity for public comment

        The Director of the Department of Workforce Development hereby proposes to amend Chapter 24, “Claims and Benefits,” and Chapter 25, “Benefit Payment Control,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 96.11.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 96.Purpose and Summary    These amendments will give Iowa Workforce Development a clearer framework from which to operate with regard to technology and modern efficiencies. The amendments will also help eliminate inefficiencies that remain as a result of outdated rules.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on April 3, 2018. Comments should be directed to: David Steen Iowa Department of Workforce Development 1000 East Grand AvenueDes Moines, Iowa 50319-0209Email: david.steen@iwd.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend subparagraph 24.2(1)"b" as follows:    (1)   The name and complete mailing address of such individual’s last employing unit or employerincluding work history for all employers within the individual’s base period.

        ITEM 2.    Amend subparagraph 24.2(1)"b" as follows:    (8)   Number,full name, social security number, date of birth, and relationship of any dependents claimed.The identity of an individual identified as a dependent shall be verified by the department before the individual is added to the claim as a dependent. As used in this subparagraph, “dependent” is defined as: spouse, son or daughter of the claimant, or a dependent of either; stepson or stepdaughter; foster child or child for whom claimant is a legal guardian; brother, sister, stepbrother, stepsister; father or mother of claimant,or stepfather or stepmother of the claimant; son or daughter of a brother or sister of the claimant (nephew or niece); brother or sister of the father or mother of the claimant (uncle or aunt); son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the claimant; an individual who lived in the claimant’s home as a member of the household for the whole year; cousin.A “spouse” is defined as an individual who does not earn more than $120 in gross wages in one week. The reference week for this monetary determination shall be the gross wages earned by the spouse in the calendar week immediately preceding the effective date of the claim.A “dependent” means an individual who has been or could have been claimed for the preceding tax year on the claimant’s income tax return or will be claimed for the current income tax year. The same dependent shall not be claimed on two separate monetarily eligible concurrent established benefit years. An individual cannot claim a spouse as a dependent if the spouse has listed the claimant as a dependent on a current claim.

        ITEM 3.    Amend rule 871—24.6(96) as follows:

    871—24.6(96) Profiling for reemployment servicesReemployment services and eligibility assessment procedure.      24.6(1)   The department of workforce development and the department of economic development will jointly provide a program which consists of profiling claimants and providing reemployment services.    24.6(2)   Purpose.    a.    Profiling is a systematic procedure used to identify claimants who, because of certain characteristics, are determined to be permanently separated and most likely to exhaust benefits. Such claimants may be referred to reemployment services.    b.    The eligibility assessment program is used to accelerate the individual’s return to work and systematically review the individual’s efforts towards the same goal.    24.6(3)   Reemployment servicesand eligibility assessment may include, but are not limited to, the following:    a.    An assessment of the claimant’s aptitude, work history, and interest.    b.    Employment counseling regarding reemployment approaches and plans.    c.    Job search assistance and job placement services.    d.    Labor market information.    e.    Job search workshops or job clubs and referrals to employers.    f.    Résumé preparation.    g.    Other similar services.    24.6(4)   As part of the initial intake procedure, each claimant shall be required to provide the information necessary for profiling and evaluation of the likelihood of needing reemployment assistance.    24.6(5)   The referral of a claimant and the provision of reemployment services is subject to the availability of funding and limitations of the size of the classes.    24.6(6)   A claimant shall participate in reemployment services when referred by the department unless the claimant establishes justifiable cause for failure to participate or the claimant has previously completed such training or services. Failure by the claimant to participate without justifiable cause shall disqualify the claimant from the receipt of benefits until the claimant participates in the reemployment servicesor eligibility assessment.The claimant shall contact the agency prior to the scheduled appointment or service to advise the department of the justifiable cause.    a.    Justifiable cause for failure to participate is an important and significant reason which a reasonable person would consider adequate justification in view of the paramount importance of reemployment to the claimant.Justifiable cause includes when the claimant is scheduled for an employment interview, is verified return to work, or both prior to the scheduled appointment or service.    b.    Reserved.    24.6(7)   Eligibility assessment procedure.    a.    Before an individual has claimed five weeks of intrastate benefits, the workforce development center shall receive a computer-selected list of individuals claiming benefits within the target population for review.    b.    No eligibility assessment will be performed on an individual unless monetary eligibility and nonmonetary eligibility are established.    c.    Once selected for an initial or subsequent eligibility assessment, claimants are required to participate in all components of the assessment as determined by the department.    d.    A Notice to Report shall be sent by the workforce development center to an individual who is in an active status at the time of its printing. If the individual does not respond, the department must issue an appropriate failure to report decision and lock the claim to prevent payment.    e.    Selected claimants must report in person to the designated workforce development center to receive staff-assisted services for the initial assessment.    f.    Before an administrative law judge can rule on a disqualification for failure to report at an Iowa workforce development center as directed, there must be evidence to show that the individual was required to report for an interview.    24.6(8)   Conducting the first eligibility assessment interview.    a.    All available evidence must be examined to detect potentially disqualifying issues.    b.    The individual’s need for advice, assistance or instructions must be determined and conveyed to the individual.    c.    The interview must convey to the individual the requirements that must be satisfied to maintain eligibility.    d.    This advice, assistance or instruction constitutes an understanding and agreement between the individual and the unemployment insurance representative at the conclusion of the interview regarding the individual’s willingness and ability to eliminate any barriers to obtaining reemployment which otherwise would result in referral for adjudication.     e.    The individual shall be advised of what constitutes an acceptable effort to obtain reemployment in accordance with state policy, with consideration for local labor market information and the individual’s occupation.     f.    The final objective of the interview is to determine whether a subsequent interview is needed. This determination shall be based on expected return to work date, job openings in the area, local labor market conditions, and other relevant factors.       This rule is intended to implement Iowa Code section 96.4(7).

        ITEM 4.    Rescind and reserve rule 871—24.11(96).

        ITEM 5.    Amend paragraph 24.22(2)"n" as follows:    n.    Corporate officers.To be considered available, the corporationcorporate officer must meet the same tests of availability as are met by other individuals. The individual must be desirous of other work, be free from serious limitations and be seriously searching for work. The reported efforts of a corporate officer to seek work should be studied to distinguish those directed toward obtaining work for the officer as an individual and those directed to obtaining work or business for the corporation. Any effort to obtain business for the corporation to perform is a service to the corporation and is not evidence of the individual’s own availability for work.

        ITEM 6.    Amend subrule 24.23(39) as follows:    24.23(39)   Where the work search or the Eligibility Review Form has been deliberately falsified for the purpose of obtaining unemployment insurance benefits. The general guide for disqualifications for falsification of work search is listed below. It is intended to be used as a guide only and is not a substitute for the personal subjective judgment of the representative because each case must be decided on its own merits. The administrative penalty recommended for falsification is:    a.    First offense—six weeksweeks’ penalty.    b.    Second offense—nine weeksweeks’ penalty.    c.    Third offense—total disqualification for the remainder of the benefit year plus consideration of the possibility of filing fraud charges depending on the circumstances.

        ITEM 7.    Amend subrule 24.60(2) as follows:    24.60(2)   It is required that information designed to identify illegal nonresident aliens shall be requested of all claimants for benefits. This shall be accomplished by asking each claimant at the time the individual establishes a benefit year whether or not the individual is a citizen.    a.    If the response is “yes,” no further proof is necessary and the claimant’s records are to be marked accordingly.    b.    If the answer is “no,” the claimant shall be requested to present documentary proof of legal residency. Any individual who does not show proof of legal residency at the time it is requested shall be disqualified from receiving benefits until such time as the required proof of the individual’s status is brought to the local office. The principal documents showing legal entry for permanent residency are the Form I-94,“Arrival and Departure Record,” and the Forms I-151 and I-551,“Alien Registration Receipt Card.” These forms are issued by the Immigration and Naturalization ServiceU.S. Citizenship and Immigration Service and should be accepted unless the proof is clearly faulty or there are reasons to doubt their authenticity. An individual will be required to provide the individual’s alien registration number at the time of claim filing.    c.    Any or all documents presented to the department by an alien shall be subject to verification with the immigration and naturalization serviceU.S. Citizenship and Immigration Service. The citizenship question shall be included on the initial claim form so that the response will be subject to the provisions of rule 871—24.56(96), administrative penalties, and rule 871—25.10(96), prosecution on overpayments.    d.    Rescinded IAB 8/6/03, effective 9/10/03.

        ITEM 8.    Amend subparagraph 24.60(3)"b" as follows:    (6)   An alien who has been formally granted deferred action or nonpriority status by the immigration and naturalization serviceU.S. Citizenship and Immigration Service.

        ITEM 9.    Amend rule 871—25.2(96) as follows:

    871—25.2(96) Policy of the investigation and recovery sectionunit.      25.2(1)   The policy of the investigation and recovery sectionunit is to take aggressive action to prevent, detect, and deter benefits paid through error by the agency or through willful misrepresentation or error by the claimant or others and investigate and penalize fraudulent actions on the part of claimants and employing units.    25.2(2)   It shall be the policy of the investigation and recovery sectionunit to maximize the recoupment of overpayments from those claimants who have received benefits to which they were not entitled. It shall also be the policy of the sectionunit to seek prosecution of persons whom the sectionunit believes have committed serious violations of the employment security law of Iowa.       This rule is intended to implement Iowa Code sections 96.11(1), 96.16, and 96.17(2).

        ITEM 10.    Amend rule 871—25.3(96), introductory paragraph, as follows:

    871—25.3(96) Functions of the investigation and recovery sectionunit.  The function of the investigation and recovery sectionunit is to:

        ITEM 11.    Amend subrule 25.3(1), introductory paragraph, as follows:    25.3(1)   Investigate and make determinations on issues within the scope of the investigation and recovery bureauunit which are referred by the general public, employing units, agency personnel, other agencies, and anonymous sources. The bureauunit shall examine allegations of the following type:

        ITEM 12.    Amend rule 871—25.4(96) as follows:

    871—25.4(96) Allegation of claimant fraud.  The procedure to be followed where an allegation of claimant fraud has been made is:    25.4(1)   Upon receipt of an allegation of claimant fraud, if the alleging party supplies sufficient information to proceed with an investigation, the alleging party shall be advised that the investigation and recovery bureauunit will make a full investigation of the allegation. The alleging party will be advised of the bureau’sunit’s findings, if such investigation could affect the employer account of the alleging party or affect a claim for benefits of the alleging party.    25.4(2)   The allegations will be promptly forwarded to the investigation and recovery sectionunit for investigation.    25.4(3)   If the findings revealed through the investigation by the investigation and recovery bureauunit indicate that a disqualification would have resulted for the period benefits were paid, an informal fact-finding interview shall be scheduled to allow the party making the allegation and the claimant an opportunity to give testimony. The investigation and recovery bureauunit will determine if separate fact-finding interviews are necessary for the claimant and party making the allegations and any other party with pertinent information.    25.4(4)   If the claimant or any other party with pertinent information wishes to invoke the fifth amendment right to remain silent, the investigator can require the claimant or any other party with pertinent information to answer all questions or produce any pertinent documents. However, the claimant or any other party with pertinent information cannot be prosecuted on the basis of any transaction, matter, or thing concerning which the claimant or any other party with pertinent information is compelled, after having claimed the privilege against self-incrimination, to testify or produce evidence.    25.4(5)   In the event a local office receives an allegation by anonymous communication, the office will forward such information to the investigation and recovery bureauunit.       This rule is intended to implement Iowa Code sections 96.16 and 96.11(10).

        ITEM 13.    Amend rule 871—25.5(96) as follows:

    871—25.5(96) Allegation of employing unit fraud.  The following is the general procedure to be followed by the investigation and recovery bureauunit in an employing unit fraud investigation:    25.5(1)   Upon receipt of an allegation of employing unit fraud the party making the allegation will provide sufficient information to proceed with an investigation. Information such as the identification and location of the employing unit, the individual or group of individuals suspected of fraudulent action, and what fraudulent action is occurring will be provided, if possible.    25.5(2)   The allegation will be promptly forwarded to the investigation and recovery bureauunit for investigation.    25.5(3)   The investigationsinvestigation and recovery unit may seek the assistance and expertise of the tax bureauunit staff.    25.5(4)   If the findings, revealed through the investigation by the investigation and recovery bureauunit, indicate that misrepresentation occurred on the part of the employer, an informal fact-finding interview will be scheduled for the party or parties to allow them an opportunity to present testimony either refuting or affirming the allegation of employer fraud.    25.5(5)   If the employer wishes to invoke the fifth amendment, the investigator can require the employer to answer all questions. However, the employer cannot be prosecuted on the basis of any transaction, matter, or issue concerning which such employer is compelled, after having invoked the privilege against self-incrimination, to testify or produce evidence.    25.5(6)   In the event a workforce development office receives an allegation, the office will forward such information to the investigation and recovery bureauunit, provided the communication identifies and supplies sufficient information to proceed with an investigation.       This rule is intended to implement Iowa Code sections 96.16 and 96.11(10).

        ITEM 14.    Amend subrule 25.6(4) as follows:    25.6(4)   An investigator shall have the authority to request all pertinent books, papers, correspondence, memoranda, and other records necessary in the investigation of any error or potential fraudulent activity committed by a claimant, employing unit, or other party. Likewise, testimony may be taken from any person who has relevant information or records concerning the matter or events under investigation. Any person, when requested by an investigator to produce records or give testimony, must be available personally to give testimony to or to produce records within a reasonable time for the investigator. If any person does not comply with the investigator’s request to give testimony to the department or produce records, a subpoena may be issued summoning the individual to appear before the investigator to give testimony or present the records.If the investigator determines that any request for the voluntary production of pertinent records might endanger the existence of such records, the investigation and recovery bureauunit may immediately issue a subpoena duces tecum which orders an individual to produce some document or paper that is pertinent to a pending investigation by the investigation and recovery bureauunit, in order to secure the production of such records.

        ITEM 15.    Amend subrule 25.6(5) as follows:    25.6(5)   The investigation and recovery bureauunit may seek the assistance and expertise of the field auditors.

        ITEM 16.    Amend subrule 25.6(7) as follows:    25.6(7)   Upon completion of the investigation, a determination shall be made as to whether or not fraudulent activity has occurred. If there is fraudulent activity, appropriate corrective action shall be initiated and the alleging party shall be advised of the investigation and recovery bureau’sunit’s findings, if such investigation could affect the employer account of the alleging party. The case may be prepared for prosecution if prosecution is warranted.

        ITEM 17.    Amend subrule 25.7(1) as follows:    25.7(1)    Determination by reason of the claimant’s own fault, employer’s fault, agency fault, or fraud as provided in Iowa Code section 96.16, that the claimant has received benefits to which such claimant was not entitled shall be made by the investigationsinvestigation and recovery unit on the basis of such facts as it may obtain.

        ITEM 18.    Amend subrule 25.7(3) as follows:    25.7(3)   Upon receiving a written request for review, the investigation and recovery bureauunit, based upon such facts as it has or may acquire, may affirm, modify, or reverse the prior decision or refer the matter to an administrative law judge. The claimant shall be promptly notified of such decision or referral. Unless the claimant files an appeal within ten calendar days after the date of mailing, such decision shall be final. Timeliness shall be determined by postmark within ten calendar days from the date of mailing shown on the decision or be received by the department within ten calendar days from the date of mailing.

        ITEM 19.    Amend subrule 25.7(4) as follows:    25.7(4)   The claimant may directly appeal the decision of the investigation and recovery bureauunit without a request for review, in which case the appeal will be referred directly to the appeals section of the department.

        ITEM 20.    Amend subrule 25.9(3) as follows:    25.9(3)   Sources of information concerning the application of an administrative penalty shall be the same as those pertaining to fraud and overpayment, namely:    a.    Employer report of wages, with comparative analysis of them with concurrent benefit payments.    b.    Local office obtaining late reports by claimant of deductible income items or potentially disqualifying circumstances.    c.    Tips and leads from other sources of claimant being employed while claiming benefits or that such claimant did not otherwise meet the eligibility requirements.    d.    Cross-checking of information on death tapes from the vital statistics section, division of administration, department of public health.    e.    Review of claims using social security numbers not issued by the social security administration.    f.    Cross-checking of information from the Iowa centralized employer registry.    g.    Cross-checking of information with the National Directory of New Hires.    h.    Cross-checking of information on incarcerated individuals from the Iowa department of corrections.    i.    Cross-checking of information with fraud detection tools identified by the department.

        ITEM 21.    Amend subrule 25.9(9) as follows:    25.9(9)   A criminal conviction of a claimant for fraud or an order of the court requiring restitution for the amount of the overpayment shall not preclude the investigation and recovery bureauunit from also imposing an administrative penalty denying further benefits to the claimant for a period of time not to exceed the remainder of said claimant’s benefit year and including the week in which such determination is made by the investigation and recovery bureauunit.

        ITEM 22.    Amend rule 871—25.10(96) as follows:

    871—25.10(96) Prosecution on overpayments.      25.10(1)   When an overpayment occurs due to misrepresentation, the case shall be given a thorough and detailed review of the facts, as obtained by the investigation and recovery bureauunit, to determine if a prosecution for fraud would meet the county attorney’s criteria.    a.    The claimant shall be afforded an opportunity to give testimony either refuting or affirming the overpayment.    b.    The investigation and recovery bureauunit will issue a decision concerning the overpayment.    25.10(2)   Restitution or the establishment of a repayment plan of an amount overpaid to a claimant due to fraudulent misrepresentation or failure to disclose a material fact shall not preclude the investigation and recovery bureauunit from instituting criminal proceedings against the claimant.       This rule is intended to implement Iowa Code sections 96.11(1) and 96.16(2).

        ITEM 23.    Amend rule 871—25.12(96) as follows:

    871—25.12(96) Wage cross match auditverification procedure.      25.12(1)   Each quarter, cross match audit Forms 65-5321wage verification documents are mailed to selected employers requesting wage information on specific claimants as it concerns benefit payments.    25.12(2)   The formdocuments, upon completion by the employer, isare sent to the investigation and recovery bureauunit for entering in the Iowa workforce development database system. If the form is not completed properly, it is sent to the employing unit for correct information and then returned for processing. Any potentialreview. Potential cases of conflict generated by the computer program will result in an investigation assignment and investigation packet. Claimants will be notified by means of Form 65-5332,(Preliminary Audit Notice), and given an opportunity to respond. If it is determined that an overpayment has occurred, the investigator will prepare Form 68-0031, Decision Overpayment Worksheet, on which the amount, weeks, type, and reason for the overpayment are identified. Claimants are notified of the determination on Form 65-5323, Unemployment Insurance Decision.    25.12(3)   An employer may choose to participate in the automated crossmatchwage verification procedure by following the electronic submission guidelines.    25.12(4)   An employer that fails to respond to a request for wage information pertaining to specific claimant(s) as such request pertains to benefit payments will be charged a fee of $25 per claimant.       This rule is intended to implement Iowa Code section 96.11(1).    ARC 3666CWorkforce Development Department[871]Notice of Intended Action

    Proposing rule making related to claims and benefits and providing an opportunity for public comment

        The Director of the Department of Workforce Development hereby proposes to amend Chapter 24, “Claims and Benefits,” and Chapter 25, “Benefit Payment Control,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 96.11.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 96.Purpose and Summary    These amendments will give Iowa Workforce Development a clearer framework from which to operate with regard to technology and modern efficiencies.  The amendments will also help eliminate inefficiencies that remain as a result of outdated rules.   Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on February 20, 2018. Comments should be directed to: David Steen Iowa Department of Workforce Development 1000 East Grand Avenue Des Moines, Iowa 50319-0209 Email: david.steen@iwd.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

        ITEM 1.    Amend paragraph 24.2(1)"g", introductory paragraph, as follows:    g.    No continued claim for benefitsbenefit payment shall be allowed until the individual claiming benefits has completed a continued claimonline or claimed benefits as otherwise directed by the department.

        ITEM 2.    Amend paragraph 24.9(1)"a" as follows:    a.    When an initial claim for benefits is filed, the department shall send to the individual claiming benefits, including a notificationconsisting of a statement of the individual’s weekly benefit amount, total benefits, base period wages, and other data pertinent to the individual’s benefit rights.

        ITEM 3.    Amend paragraph 25.7(6)"c" as follows:    c.    If a claimant fails to respond to the first statement of overpayment, a second statement shall be sent 30 days later. The second statement notifies the claimant that full repayment must be made. If the claimant cannot make full repayment, the department will consider a monthly repayment agreement. Monthly amounts based on the minimum repayment agreement schedule below will be printed on the second billing. The first repayment is expected 10 days from the date of the second repayment statement and the additional repayments every 30 days thereafter until the debt is paid in full. The department reserves the right to accept or reject any proposed repayment agreement. The following minimum repayment agreement is acceptable byto the department.    Amount ofOriginalOverpayment    MinimumMonthlyPayments    Number of MonthsRequired to Liquidatethe Overpayment    Under $199    $ 25    1 to 8    $200 to $399    $ 4050    5 to 104 to 8    $400 to $599    $ 5075    8 to 125 to 8    $600 to $799    $ 6590    9 to 136 to 9    $800 to $999    $ 80100    10 to 138 to 10    $1000 to $1499    $ 90150    11 to 176 to 10    $1500 to $1999    $100200    15 to 207 to 10    $2000 to $2999    $110250    18 to 288 to 12    $3000 and over    $130300    23 to —10 to —    ARC 3667CHuman Services Department[441]Filed Emergency After Notice

    Rule making related to appeals to managed care organizations

        The Department of Human Services hereby amends Chapter 73, “Managed Care,” Iowa Administrative Code. Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 249A.4.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 249A.4.Purpose and Summary    These amendments update the Iowa Administrative Code to reflect revised federal standards for the resolution of appeals to managed care organizations (MCOs).     1. The revised federal regulations (42 CFR § 438.408(b)(2)) require nonexpedited appeals to be resolved within 30 calendar days of the plan’s receipt of the request (unless an extension is requested), whereas paragraph 73.12(2)“d” currently requires resolution within 45 calendar days.     2. The revised federal regulations (42 CFR § 438.408(b)(3)) require that expedited appeals be resolved within 72 hours, whereas paragraph 73.12(2)“e” currently requires resolution in up to three business days.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 20, 2017, as ARC 3514C. The Department received a comment from one respondent during the public comment period. The comment, in two parts, and the Department’s response are as follows:    Comment:    1. The respondent was supportive of the amendment to match Iowa’s rules with 42 CFR § 438.408(b)(2) to require nonexpedited appeals to be resolved within 30 calendar days of the plan’s receipt of the request and stated that resolving patient appeals in a timely manner is important to ensuring adequate patient care and coverage.    2. The respondent was also supportive of the amendment to match Iowa’s rules with 42 CFR § 438.408(b)(3) to require expedited appeals to be resolved within 72 hours. While the respondent was supportive of providing adequate opportunities for patients to appeal managed care organization (MCO) decisions, the respondent also reminded the Department of the importance of allowing providers to appeal. The respondent stated that allowing providers to appeal is essential to ensuring that providers are adequately compensated for their services and can resolve claim disputes in a timely and efficient manner.    Department response:    These amendments address the appeal policies and procedures for an enrollee, or an enrollee’s authorized representative, to appeal an MCO action.  The Department will not further amend these rules at this time because subrule 7.2(5) addresses the appeal rights of providers.     These amendments are identical to those published under Notice of Intended Action.Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(b), the Department finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on February 14, 2018, because the amendments confer a benefit on the public by shortening the time frame for resolution of appeals.Adoption of Rule Making    This rule making was adopted by the Council on Human Services on February 14, 2018.Fiscal Impact     Managed care enrollee nonexpedited appeals will be required to be resolved within 30 days after the MCO receives the appeal. For expedited resolution of an appeal, the time frame for resolution and notice to enrollees is 72 hours after the MCO receives the appeal. There is no additional cost for the change in the time frames that MCOs have to resolve appeals. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on February 14, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend paragraph 73.12(2)"d" as follows:    d.    Provide for resolution of nonexpedited appeals to be concluded within 4530 calendar days of receipt of the request unless an extension is requested.

        ITEM 2.    Amend paragraph 73.12(2)"e" as follows:    e.    Provide for resolution of expedited appeals where the standard time period could seriously jeopardize the member’s health or ability to maintain or regain maximum function to be within three business days72 hours of receipt of the notice pursuant to federal funding requirements, including 42 CFR 438.402 as amended to October 16, 2015.    [Filed Emergency After Notice 2/14/18, effective 2/14/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3676CAdministrative Services Department[11]Adopted and Filed

    Rule making related to procurement of standard modular office systems

        The Department of Administrative Services hereby amends Chapter 100, “Capitol Complex Operations,” and Chapter 117, “Procurement of Goods and Services of General Use,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 17A.4.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 8A.311 and 904.808.Purpose and Summary    2017 Iowa Acts, House File 293, provides for the Director to promulgate rules regarding procurement of goods manufactured in Iowa as that relates to bidding and to Iowa Prison Industries. An agency can award a bid to a company if the good being procured is manufactured or formulated in Iowa and represents the lowest bid instead of being required to procure the good from Iowa Prison Industries.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 17, 2018, as ARC 3574C. A public hearing was held on February 6, 2018, at 1 p.m. at Conference Room 5, A Level, Hoover State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 21, 2018.Fiscal Impact     The fiscal impact of this rule making is indeterminable because the anticipated demand on products, the type of products, and the price of those products cannot be determined. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    The waiver provisions are covered by 11—Chapter 9.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 11—100.1(8A) as follows:

    11—100.1(8A) Definitions.  The definitions contained in Iowa Code sections 8A.101 and 8A.301 shall be applicable to such terms when used in this chapter. In addition, the following definitions apply:        "Assignment of office space" means space allocated by the department to a state agency for its use.        "Capitol complex" means an area within the city of Des Moines in which the Iowa state capitol building is located. This area includes the state capitol building and all real property and appurtenances thereto owned by the state of Iowa within an area bounded on the north by Interstate Highway 235, on the east by East 14th Street, on the south by the northernmost railroad tracks south of Court Avenue and on the west by East 6th Street.        "Control of assigned office space" means the ability of an agency to modify its use of assigned space without consultation with the department as long as changes do not include relocating wiring, replacing, adding or deleting modular office components, or making other modifications that would affect the floor plan.        "Dangerous weapon" means any instrument or device designed primarily for use in inflicting death or injury upon a human being or animal, and which is capable of inflicting death upon a human being when used in the manner for which it was designed. Additionally, any instrument or device of any sort whatsoever which is actually used in such a manner as to indicate that the person possessing the instrument or device intends to inflict death or serious injury upon the other, and which, when so used, is capable of inflicting death upon a human being, is a dangerous weapon. Dangerous weapons include, but are not limited to, any offensive weapon as defined in Iowa Code section 724.1, pistol, revolver, or other firearm, dagger, razor, stiletto, switchblade knife, or knife having a blade exceeding five inches in length. Pistols and revolvers are exempted from the definition of “dangerous weapons” only as set forth in subrule 100.2(2).        "Facilities" means the capitol complex buildings, grounds, and all related property.        "Memorandum of understanding" "MOU" means a written agreement that specifies terms, conditions and any related costs.        "Modular office components" means parts of a modular office system.        "Modular office systems" means standard cubicle furniture; generally, two-foot, three-foot and four-foot sections that have attached work surfaces and file storage space. Modular office systems are available in new, remanufactured and recycled condition.        "NonstandardStandard modular office systems" meansmodular office systems that do not meet standards set by the department of administrative services, expressed by function and connectivity, for use by state agencies. These standards are for the purpose of facilitating reuse of modular office system components.        "Office furniture" means any furnishing that is free standing and does not require installation with component parts. Examples are desks, chairs, file cabinets, tables, lounge seating, and computer desks.        "Public" means a person on the capitol complex who is not employed by the state of Iowa.        "Recycled modular office components" means used components that have been cleaned and have had broken parts replaced, but have not been disassembled and rebuilt.        "Remanufactured modular office components" means used components that have been disassembled, repainted or reupholstered, rebuilt, and have had broken parts replaced. Remanufactured components are intended to be like new.        "Seat of government" means office space at the capitol, other state buildings and elsewhere in the city of Des Moines for executive branch agencies, except those areas exempted by law.        "Waiver" means a waiver or variance as defined in 11—Chapter 9, Iowa Administrative Code.

        ITEM 2.    Amend subrule 100.6(6) as follows:    100.6(6) Purchase ofstandard modular officesystems and components.  To obtainIf Iowa Prison Industries (IPI) manufactures office furniture andstandard modular officesystems and related components, an agency mayshall purchase standard modular office components and other furniture itemsthem from Iowa Prison IndustriesIPI or obtain a written waiver in accordance with Iowa Code section 904.808without further competition., except as otherwise permitted in paragraphs “a” and “b.”    a.    Purchase from a targeted small business.To obtain office furniture and modular office components, anAn agency may purchase standard modular officesystems and related components and other furniture items from a targeted small business (TSB)without further competition when the purchase will not exceed $5,000$10,000, per 2003as provided in Iowa Code Supplement section 8A.311, without further competition.8A.311(10)“a.”Use of a competitive selection process is required for all purchases, unless the agency chooses to use one of the procedures above. However, competitive selection may be used for any purchase. When an agency elects to obtain standard office modular components and other furniture items through the department of administrative services’ competitive procurement process, IPI and TSBs shall be part of the bidding process.    b.    Procurement of standard modular office systems and components and other furniture items manufactured in Iowa.An agency may conduct a competitive procurement for standard modular office systems and related components and other furniture items that IPI manufactures if the competitive procurement requires that the products must be manufactured in Iowa. In such procurements, IPI shall be allowed to submit a bid to provide the products. If a bidder other than IPI is the lowest bidder, the agency shall obtain written verification from the bidder that the bidder’s product is manufactured in Iowa before making the award.The portion of the work plan for purchasing modular office systems or office furniture shall allow for the issuance of purchase orders at least 30 days prior to the desired delivery date.Regardless of how an agency purchases or obtains modular office components, the department of administrative services shall retain responsibility for management and coordination of office space planning.

        ITEM 3.    Amend subrule 117.5(3) as follows:    117.5(3) Iowa Prison Industries (IPI) procurement.      a.    Justification for IPI procurement.AgenciesIf IPI manufactures or formulates a product, agencies shall purchase productsthe product from IPI or obtain a written waiver in accordance with Iowa Code section 904.808., except as otherwise permitted in paragraphs “b” and “c.”See http://www.iaprisonind.com for IPI catalog.    b.    Purchase of standard modular office systems and related components.Purchase of standard office modularoffice systems and related components and other furniture items shall be in accordance with 11—subrule 100.6(6).    c.    Procurement of product manufactured in Iowa.An agency may conduct a competitive procurement for a product that IPI manufactures or formulates if the competitive procurement requires that the product must be manufactured in Iowa. In such procurements, IPI shall be allowed to submit a bid to provide the product. If a vendor other than IPI is the lowest responsible bidder, the agency shall obtain written verification that the vendor’s product is manufactured in Iowa before making the award.    b.    d.    Special procedures for IPI purchases.An agency may contact IPI directly.    [Filed 2/22/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3677CAgriculture and Land Stewardship Department[21]Adopted and Filed

    Rule making related to farmstands

        The Department of Agriculture and Land Stewardship hereby amends Chapter 50, “Women, Infants, and Children/Farmers’ Market Nutrition Program and Senior Farmers’ Market Nutrition Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 159.5(10) and 175B.5.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 159 and 175B.Purpose and Summary    The amendments will grandfather a farmstand which does not meet the existing criteria for a permanent structure into the program as long as the farmstand has been in business for at least five continuous years, has operated during the majority of the market season, and has a letter of support from a municipality, county or other governmental agency.    Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 17, 2018, as ARC 3567C. No public comments were received. One change from the Notice has been made. The word “and” was added to the first sentence of paragraph 50.8(8)“a” for clarification.Adoption of Rule Making    This rule making was adopted by the Department on February 21, 2018.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 21—Chapter 8. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend subrule 50.8(8) as follows:    50.8(8)   A farmstand authorized to participate in the FMNP/SFMNP shall be operated from a permanent building that is primarily used for the sale of eligible foods, is not moveable and remains in the same location year-round. The building shall have at least a roof, sidewalls, and solid floor to protect produce and people. Wood post frame, stud frame, rigid-frame metal, and concrete block construction are suitable farmstand construction. The building must be maintained in a manner consistent with standards generally accepted for this type of business. The structural requirements for a permanent building do not apply under either of the following circumstances:    a.    The farmstand not meeting the structural requirements is authorized to participate in the FMNP/SFMNP and is primarily used for the sale of eligible food and has operated from a structure at the same location for a minimum of five consecutive years and has also been operating the majority of the market season from June 1 through October 31 for a minimum of 11 consecutive weeks annually. The vendor must submit with the vendor’s application a letter of support acknowledging five years or more of operation at that location from a municipality, county or governmental agency.    b.    Up to two moveable farmstands that do not meet the requirements of permanent farmstands may be authorized in cities and villages that are not located within ten miles of an authorized farmers’ market. If three or more applications for moveable farmstands within the same city or village are received by the department, the applicants shall be required to meet the authorization requirements of a farmers’ market. An authorized farmstand must be staffed during all hours of operation. Failure to comply will result in a warning citation from the department. Repeated noncompliance could result in the revocation of the farmstand authorization.

        ITEM 2.    Adopt the following new subrule 50.8(9):    50.8(9)   If three or more applications for moveable farmstands within the same city or village are received by the department, the applicants shall be required to meet the authorization requirements of a farmers’ market.

        ITEM 3.    Adopt the following new subrule 50.8(10):    50.8(10)   An authorized farmstand must be staffed during all hours of operation. Failure to comply will result in a warning citation from the department. Repeated noncompliance could result in the revocation of the farmstand authorization.    [Filed 2/21/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3678CCollege Student Aid Commission[283]Adopted and Filed

    Rule making related to interstate reciprocity agreement

        The College Student Aid Commission hereby amends Chapter 21, “Approval of Postsecondary Schools,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 261B.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 261, 261B and 261G.Purpose and Summary    This amendment reflects current policies and practices as they relate to the administration of the State Authorizing Reciprocity Agreement (SARA) and incorporates the requirement of the National Council for SARA that Iowa SARA-approved schools extend certain consumer protection policies to out-of-state residents attending distance education programs. Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3540C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Commission on February 23, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making action is adopted:

        ITEM 1.    Amend rule 283—21.15(261B,261G) as follows:

    283—21.15(261B,261G) Approval criteria for a school seeking to participateor renew participation in a commission-approved interstate reciprocity agreement under Iowa Code chapter 261G.  A school that applies to participate in a commission-approved interstate reciprocity agreement shall meet the following criteria:    21.15(1)   The applicant school shall be in compliance with Iowa Code chapter 261B as provided in this chapter.    21.15(2)   The applicant school shall submit an institutional participation application as required by the commission-approved interstate reciprocity agreement. The application shall be signed by the school’s chief executive officer or chief academic officer.    21.15(3)   A nonpublic applicant school must submit evidence that its most recent, official financial responsibility composite score, as calculated using the method prescribed by the United States Department of Education, is at least 1.5. A school demonstrates that its financial responsibility composite score is official by providing written confirmation of its composite score from the United States Department of Education. In accordance with policies established by the interstate reciprocity agreement administrator, the commission shall determine the official financial responsibility composite score for a school that does not participate in the postsecondary student financial aid programs authorized by the United States Department of Education.    21.15(4)   The commission will consider the application of a nonpublic school whose most recent, official financial responsibility composite score is between 1.0 and 1.49. The applicant school must submit a copy of the school’s most recently audited financial statements accompanied by a written explanation of the circumstances that caused the school’s composite score to be below 1.5 and the school’s plan to raise its composite score to 1.5 within a time frame determined by the commission. The commission may approve, provisionally approve, or deny the school’s application.    21.15(5)   A for-profit applicant school must demonstrate and maintain compliance with Iowa Code sections 714.18 and 714.23. The school shall apply the policy it adopts under Iowa Code section 714.23 to students who attend its campus(es) in Iowa and to Iowa resident and nonresident students who attend distance education programs the school offers under the commission-approved interstate reciprocity agreement.    21.15(6)   The applicant school shall demonstrate that the military deployment tuition and fee refund policy required under Iowa Code sections 261.9(1)“g,” 262.9(30), and 260C.14(20), subrule 21.3(5) and paragraph 21.14(1)“f” applies to students who attend its campus(es) in Iowa and to Iowa resident and nonresident students who attend distance education programs the school offers under the commission-approved interstate reciprocity agreement.     21.(3) 21.15(7)   The commission will provide a link to a page on its Web site for students to use to seek additional information about a school or to file a complaint about a school. An approved school will prominently providedisclose on its Web site the link to the commission’s Web page for studentswebsite the school’s participation in the commission-approved interstate reciprocity agreement and provide the commission’s contact information in a format prescribed by the commission for students who wish to inquire about the school or file a complaint. The school will provide the commission with the name of and business contact information for a person whom the school designates to receive student complaints from the commission and coordinate the school’s response.    21.(4) 21.15(8)   A school that is approved to participate in the commission-approved interstate reciprocity agreement shall remit an annual fee payable and due to the commission on July 15 of each year. If a school’s participation in the commission-approved interstate reciprocity agreement terminates during a year, theThe school shall pay the annual fee to the commission if the school’s registrationcommission’s approval to participate in the interstate reciprocity agreement is valid as of July 15 of that year. The annual fee is nonrefundable and will be assessed based on a school’s full-time equivalent (FTE) enrollment as follows:
  • Under 2,500 FTE – $2,000.
  • 2,500 to 9,999 FTE – $4,000.
  • 10,000 FTE or more – $6,000.
    •     21.(5) 21.15(9)   A school that is approved to participate in the commission-approved interstate reciprocity agreement shall remit to the interstate reciprocity agreement administrator any required fees.    21.(6) 21.15(10)   Upon approval by the interstate reciprocity agreement administrator, a school may continue its participation in the reciprocity agreement as long as it meets all requirements of the interstate reciprocity agreement.        [Filed 2/23/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3679CEnvironmental Protection Commission[567]Adopted and Filed

    Rule making related to air quality

        The Environmental Protection Commission (Commission) hereby amends Chapter 20, “Scope of Title—Definitions,” Chapter 22, “Controlling Pollution,” Chapter 23, “Emission Standards for Contaminants,” Chapter 25, “Measurement of Emissions,” Chapter 30, “Fees,” Chapter 33, “Special Regulations and Construction Permit Requirements for Major Stationary Sources—Prevention of Significant Deterioration (PSD) of Air Quality,” and Chapter 34, “Provisions for Air Quality Emissions Trading Programs,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 455B.133.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 455B.133.Purpose and Summary    The purposes of this rule making are to:

    1. Rescind unnecessary rules and update other rules to provide regulatory certainty and flexibility. The amendments implement a portion of the Department of Natural Resources’ (Department’s) five-year review of rules plan to accomplish the requirements of Iowa Code section 17A.7(2).
    2. Offer uniform rules by making changes that match federal regulations and eliminate inconsistencies between federal regulations and state rules. By adopting federal updates into state administrative rules, the Commission is ensuring that Iowa’s air quality rules are no more stringent than federal regulations. Additionally, the updates allow the Department, rather than the U.S. Environmental Protection Agency (EPA), to be the primary agency to implement the air quality requirements in Iowa, thereby allowing the Department to provide compliance assistance and outreach to affected facilities.
        Item 1 amends rule 567—20.2(455B), definition of “EPA reference method,” to adopt the most current EPA methods for measuring air pollutant emissions (stack testing and continuous monitoring). On August 30, 2016, EPA revised the reference methods in 40 Code of Federal Regulations (CFR) Parts 51, 60, 61 and 63 to eliminate outdated procedures, add alternative testing methods, make technical corrections, and correct typographical and grammatical errors. Several of the updated test methods in Parts 51, 60, 61 and 63 are adopted by reference in 40 CFR Part 75 for the Acid Rain Program. Adopting EPA’s updates ensures that state reference methods match current federal reference methods and are no more stringent than the federal methods. Further, the alternative test methods offer regulatory flexibility to affected facilities. The amendments in Items 6, 10, 11, 12, 13, 14, 15 and 16 are adopted concurrently with this amendment to similarly reflect updates to EPA testing and monitoring methods as the methods apply to specific air quality programs.    Item 1 also updates the definition of “volatile organic compounds” (VOC) to reflect recent changes that EPA made to the federal definition of VOC. On August 1, 2016, a final regulation was published in the Federal Register to exclude the compound 1,1,2,2-tetrafluoro-1-(2,2,2-trifluoroethoxy) Ethane (HFE-347pcf2) from the federal definition because this compound makes a negligible contribution to tropospheric ozone formation. In Item 19, an amendment to subrule 33.3(1) is adopted concurrently with the amendment in Item 1 to similarly update the definition of “volatile organic compounds” for the specific air quality programs.    Item 2 amends paragraph 22.1(2)“i” to correct a cross reference to a definition. The current cross reference is to paragraph 22.5(1)“f,” which no longer exists. All provisions that were previously included in rule 567—22.5(455B) are now in Chapter 31. The cross reference is revised to refer to the correct definition included in subrule 31.3(1).    Item 3 amends paragraph 22.1(2)“r” to make updates to the exemption for internal combustion engines with a brake horsepower rating of less than 400. The amendment clarifies that owners and operators of engines that are not required to submit to the Department an engine registration may qualify for this exemption. The revision provides certainty to affected facilities and reduces the regulatory burden of completing an unneeded engine registration to qualify for this exemption.    Item 4 amends subparagraph 22.1(2)“w”(1) to correct an error in the eligibility criteria for the “small unit” exemption. The small unit exemption is available as an alternative to obtaining a construction permit for owners and operators of emission units that emit less than certain thresholds of specific air pollutants. For an emission unit to qualify for the small unit exemption, the unit must emit less than the emission thresholds for each of the pollutants listed. However, the list of criteria has the word “or” between the last two items in the list, which could lead affected owners and operators to conclude that an emission unit does not need to meet all of the criteria in the list.    The intent of the small unit exemption is that the emission unit must emit less than each of the emission thresholds included in the list. Further, the Department has implemented the exemption in this manner since its adoption. It is therefore appropriate to revise this exemption to include the word “and” rather than “or” between the provision for “PM2.5” and the one for “hazardous air pollutants” in the list of air pollutants. This amendment reflects the original intent and ongoing implementation of the small unit exemption and provides clarity to owners and operators that may wish to use this exemption.     Item 5 amends the provisions for permit by rule for spray booths specified in paragraph 22.8(1)“a.” The amendment allows powder coat material to be used in paint booths without being considered “sprayed material,” provided the powder coating is applied in an indoor-vented spray booth equipped with filters or an overspray powder recovery system. The Department has evaluated the particulate emissions from powder coating and has determined that emissions occurring under the conditions specified in the permit by rule would not contribute to exceedances of the ambient air quality standards for particulate matter. The amendment excludes powder coatings from the definition of “sprayed material” for purposes of the permit by rule.    Item 6 amends rule 567—22.100(455B) to update the definition of “EPA reference method” for the Title V operating permit (Title V) program to adopt the most current federal reference methods for stack tests and continuous emissions monitoring in the same manner as described above for Item 1. This amendment implements a portion of the Department’s five-year review of rules plan by ensuring that the state rules for the Title V program, specifically the test methods, are consistent with federal requirements and are no more stringent than federal requirements.    Item 7 amends subparagraph 22.103(2)“b”(6) to revise the criteria for an emergency engine rated at less than 400 horsepower to be considered an insignificant activity for the Title V program. The amendment clarifies that engines subject to federal new source performance standards (NSPS) or national emission standards for hazardous air pollutants (NESHAP) are not considered insignificant activities for purposes of the Title V program because the federal standards impose applicable requirements for emergency engines.    Item 8 updates the provisions for Title V emissions inventories in subrule 22.106(2) to eliminate the requirement to submit specific forms for the inventory and to state instead that the emissions inventory shall be submitted on forms specified by the Department. The amendment provides needed flexibility for the Department to streamline the emissions inventory forms and submittal methods.    Item 9 amends subrule 22.107(6) to update the public notice requirements for the Title V program to reflect changes to federal regulations that EPA finalized on October 18, 2016. Previously, EPA required that public notice be given by publication in a newspaper of general circulation where the source being permitted is located or in a state publication. EPA revised the public notice provisions to allow for posting of the public comment period on a website identified by the permitting authority (the Department). EPA’s revisions also require that permitting authorities be consistent in the method of providing public notice, although other means to provide adequate notice may be used if necessary. To reflect EPA’s changes, this amendment specifies that the Department will provide public notice by posting on a public website identified by the Department, while using other means if necessary to ensure adequate notice to the affected public.    Item 10 amends rule 567—22.120(455B) to update the test methods specified in 40 CFR Part 75 for the Acid Rain Program in the same manner as described above for Item 1.    Items 11, 12, 13 and 14 affect new source performance standards, hazardous air pollutant standards, and emission standards for existing sources. The U.S. Clean Air Act (CAA) obligates the EPA to issue standards to control air pollution. Two categories of standards, the NSPS and NESHAP, set standards and deadlines for industrial, commercial or institutional facilities to meet uniform standards for equipment operation and air pollutant emissions.    NESHAP regulations differ depending on whether a facility is a “major source” or an “area source.” Major sources are typically larger facilities and have potential emissions of 10 tons or more per year of any single hazardous air pollutant (also known as “HAP” or “air toxics”) or 25 tons or more of any combination of HAPs. Area sources have potential air toxics emissions at less than the major source thresholds. Although area sources generally emit less air toxics than major sources, area sources are more numerous and may collectively cause adverse impacts to public health.    Because the NSPS and NESHAP adopted by reference are federal regulations, affected sources are subject to the federal requirements regardless of whether the Commission adopts the standards into state rules. However, the CAA allows a state or local agency to implement NSPS and NESHAP as a “delegated authority.” Upon state adoption of the standards, the Department becomes the delegated authority for the specific NSPS or NESHAP and is the primary implementation agency in Iowa. Two local agencies, Polk County and Linn County, implement these standards within their counties. Iowa’s rules, including all compliance deadlines, are identical to the federal NSPS and NESHAP as of a specific date. With implementation authority, the state and local agencies have the ability to make applicability determinations for facilities, rather than referring these decisions to EPA.    Emission standards for existing sources (known as Emission Guidelines) are similar to NSPS but direct states to set emission standards by certain deadlines for specific existing sources. EPA’s Emission Guidelines provide “model rules” that states may adopt by reference in setting the requirements for existing sources. EPA requires states to establish Emission Guidelines that are at least as rigorous as EPA’s model rules. As it does with NSPS and NESHAP, the Commission adopts Emission Guidelines by reference so that the requirements are no more or less stringent than federal requirements. If the Commission does not adopt the Emission Guidelines, EPA will impose a federal plan with emission standards for affected facilities. Because EPA may set standards with compliance deadlines that are earlier than those allowed under state plans, it is generally advantageous for the state to adopt these guidelines.    Stakeholders affected by NSPS, NESHAP and Emission Guidelines typically prefer for the Department, rather than the EPA, to be the primary implementation agency in Iowa. Upon adoption of the new and amended standards, the Department will work with affected facilities to provide compliance assistance, as needed. Additionally, affected area sources that are small businesses are eligible for free assistance from the small business assistance technical program.    Item 11 amends subrule 23.1(2) to adopt new and revised NSPS, as described below.    The text in parentheses in each section heading below indicates the applicable subpart(s) in 40 CFR Part 60 and the corresponding paragraph(s) in subrule 23.1(2).    Municipal Solid Waste Landfills (Subpart WWW; paragraph 23.1(2)“rrr”)    The Commission is revising the NSPS for municipal solid waste (MSW) landfills to make clear that, because of current litigation filed in the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit), Iowa is not adopting the recent federal amendments published in the Federal Register on August 29, 2016. Consequently, the adopted revision will specify the publication date for the federal NSPS that is currently adopted into the Iowa Administrative Code in 23.1(2)“rrr” for MSW landfills. (See also Item 14.)    Commercial and Industrial Solid Waste Incineration (Subpart CCCC; paragraph 23.1(2)“vvv”)    In the Notice of Intended Action, the Commission proposed to adopt by reference several amendments that EPA made over a five-year period to the NSPS for commercial and industrial solid waste incinerators (CISWI). However, after publication of the Notice, the Department became aware of a delay in EPA’s finalizing the federal plan for existing CISWI. Further, EPA indicated that changes might be made to the final federal plan from what was proposed. Since the requirements in the NSPS and the federal plan are closely related, it is possible that EPA may propose changes to the NSPS for CISWI while reproposing or finalizing the federal plan for existing CISWI. The Commission is therefore not, at this time, adopting the amendments to the NSPS for CISWI. At such time as EPA chooses whether or not to further amend the NSPS, the Commission will consider whether or not to propose adoption of the federal amendments. Until then, affected facilities are subject to the federal NSPS, regardless of whether Iowa adopts the standards.     Stationary Compression Ignition Internal Combustion Engines (Subpart IIII, paragraph 23.1(2)“yyy”)    On July 7, 2016, EPA finalized amendments to the NSPS to allow manufacturers to design engines so that operators can override performance inducements related to the emission control system for stationary compression ignition internal combustion engines. The amendments apply only to engines operating during emergencies in which the operation of the engine or equipment is needed to protect human life. The amendments also require that the engine comply with federal Tier 1 emission standards during such emergencies. These federal amendments are adopted by reference through revision of the adoption date specified in the introductory paragraph of subrule 23.1(2).    Test Methods (Amendments throughout Part 60)    The amendment in Item 11 also adopts the changes EPA made to the NSPS test methods, as explained in the description above for Item 1. The federal amendments are adopted by reference through revision of the adoption date specified in the introductory paragraph of subrule 23.1(2).    Item 12 amends subrule 23.1(3) to adopt revisions to the NESHAP standards in 40 CFR Part 61 for EPA’s updates to test methods, as explained above for Item 1. The federal amendments are adopted by reference through revision of the adoption date specified in the introductory paragraph of subrule 23.1(3).    Item 13 amends subrule 23.1(4) to adopt, and in one case, to rescind adoption of, federal amendments to the NESHAP for source categories, as described below.    The text in parentheses in each section heading below indicates the applicable subpart(s) in 40 CFR Part 63 and the corresponding paragraph(s) in subrule 23.1(4).    Ferroalloys Production (Subpart XXX; paragraph 23.1(4)“bx”) - Rescission    This NESHAP applies to new and existing major sources of ferroalloys production of ferromanganese and silocomanganese. Iowa has no facilities affected by this NESHAP and is unlikely to have any affected facilities in the future. The Commission is therefore rescinding adoption of this NESHAP.    The rescission will accomplish the Department’s goal of eliminating unnecessary rules and will implement a portion of the Department’s five-year review of rules plan to meet the requirements of Iowa Code section 17A.7(2). Removing unnecessary provisions makes the rules more accessible and understandable for regulated entities and for the public. If an affected facility should plan to locate to Iowa in the future, the Department will evaluate at that time whether to request adoption of the standard.    Industrial, Commercial and Institutional Boilers at Area Sources (Subpart JJJJJJ; paragraph 23.1(4)“ej”)    The Commission is adopting by reference the original NESHAP and subsequent amendments that EPA finalized over a five-year period that affect new and existing industrial, commercial and institutional (ICI) boilers located at area sources. The Commission is now adopting these federal amendments because EPA’s reconsiderations and the litigation of the amendments have recently been resolved.    Background: EPA published the NESHAP for ICI boilers at area sources on March 21, 2011, and subsequently revised the NESHAP on February 1, 2013, and on September 14, 2016. The NESHAP, also known as the Area Source Boiler Rule, exempts from this rule all boilers meeting the definition of natural gas-fired boilers, temporary boilers, and residential boilers. Additionally, new and existing boilers burning solid or liquid fuels that are very small, have limited or seasonal use, or burn only ultra-low-sulfur liquid fuel or burn primarily biomass, are not subject to emission limits and have only work practice standards, such as a one-time energy assessment and a one-time or periodic tune-up (every five years). Other new and existing boilers burning coal, biomass or liquid fuels may need to meet numeric emission limits for some air toxics and have required testing or monitoring, depending on the type of boiler and specific fuel burned. Additionally, EPA’s revised standards provide alternative compliance methods and more flexible monitoring for some boilers.    Prior to issuing the final amendments in September 2016, EPA requested a voluntary remand (without vacatur) of some provisions of the Area Source Boiler Rule. On July 26, 2016, the D.C. Circuit granted EPA’s request and issued a remand without vacatur. The remand requires that EPA provide data to justify certain decisions that resulted in some requirements in the final federal regulations.    Affected facilities and compliance dates: Based on required initial notifications submitted to the Department, the Department estimates that 13 facilities in Iowa have boilers affected by the Area Source Boiler Rule. All of these facilities are required to comply only with work practice standards (rather than emission limits) by the NESHAP compliance date of March 21, 2014, or upon start-up of the affected boiler, whichever date occurs later. At this time, the Department is not aware of any new or existing boilers subject to emission limits and associated monitoring specified in the NESHAP.    Justification for proceeding with adoption despite the current remand: None of the provisions in the final rules are stayed or delayed. Further, although the remand may impact emission standards and monitoring requirements in the NESHAP, none of the facilities in Iowa currently subject to the NESHAP are affected by emissions limits or monitoring requirements. Lastly, the compliance date for affected existing facilities to comply with work practice standards was March 21, 2014, so facilities have already been required to comply with the NESHAP for over three years.    Upon adoption of the Area Source Boiler Rule, the Department will work with affected facilities to provide compliance assistance as needed. Additionally, affected area sources that are small businesses are eligible for free assistance from the small business technical assistance program.    Test Methods (Amendments throughout Part 63)    The amendment to subrule 23.1(4) also adopts the changes EPA made to the NESHAP test methods, as explained in the description above for Item 1. The federal amendments are adopted by reference through revision of the adoption date specified in the introductory paragraph of the subrule.    Item 14 amends subrule 23.1(5) to revise adoption of the federal Emission Guidelines. As explained in more detail above, EPA’s Emission Guidelines are set forth in 40 CFR Part 60 and direct states to set emission standards by certain deadlines for specific existing sources. EPA’s Emission Guidelines provide “model rules” that states may adopt by reference in setting the requirements for existing sources. As with the NSPS and NESHAP, the Commission adopts EPA’s Emission Guidelines by reference so that the requirements are no more or less stringent than federal requirements.    Municipal Solid Waste Landfills (Subparts Cc and WWW; paragraph 23.1(5)“a”)    As with the amendment to the NSPS for MSW landfills as described in Item 11, the Commission is revising the Emission Guidelines for existing MSW landfills to make clear that Iowa is not adopting the recent federal amendments published in the Federal Register on August 29, 2016. As with the NSPS, the recent amendments to the Emission Guidelines for existing MSW landfills are being litigated in the D.C. Circuit. Consequently, the amendment will specify the publication date for the federal Emission Guidelines that are currently adopted into the Iowa Administrative Code in 23.1(5)“a” for existing MSW landfills.    Commercial and Industrial Solid Waste Incineration Units (CISWI) (Subpart DDDD; paragraph 23.1(5)“c”)    Similar to its adoption of amendments in Item 11 as described above, the Commission, in the Notice of Intended Action, proposed to adopt by reference several amendments that EPA made over a five-year period to the Emission Guidelines for existing CISWI. However, after publication of the Notice, the Department became aware of a delay in EPA’s finalizing the federal plan for existing CISWI. Further, EPA indicated that changes might be made to the final federal plan from what was proposed, including the February 8, 2018, compliance date.     Under the U.S. Clean Air Act, EPA must establish a federal plan for existing CISWI facilities in states that do not have an EPA-approved state plan. Typically, a federal plan will consist of the identical “model rules” included in the Emission Guidelines provided to states to include in their state plans, including the compliance deadlines. However, in this case, the federal “model rules” in Subpart DDDD establish a compliance deadline of February 8, 2018, that will not be included in any final federal plan (because of the delay in EPA’s finalizing the federal plan). If the Commission proceeded with adopting Subpart DDDD into state administrative rules, the state rules would be more stringent than EPA’s eventual federal plan. Because Iowa Code section 455B.133(4) prohibits state air quality rules from being more stringent than federal regulations, the Commission is not, at this time, adopting the federal amendments for a state plan for existing CISWI. At such time as EPA chooses whether or not to further amend and finalize the federal plan for existing CISWI, the Commission will consider whether or not to propose adoption of the federal amendments.    Test Methods (Amendments throughout Part 60)    The amendment in Item 14 adopts the changes EPA made to the Part 60 test methods, as explained in the description above for Item 1, which are applicable to the Emission Guidelines adopted in subrule 23.1(5). The federal amendments are adopted by reference through revision of the adoption date specified in the introductory paragraph of subrule 23.1(5).    Item 15 amends subrule 25.1(9) to adopt the revised federal methods for emissions testing and monitoring, as described above for Item 1. The updates will make certain that only current federal test methods are used to demonstrate compliance with permit conditions and that required test methods are no more stringent than federal methods.    Item 16 amends rule 567—25.2(455B) to adopt federal updates for monitoring methods under the Acid Rain Program, as noted above for Item 1. This update ensures that state air quality rules for testing and monitoring are consistent and match federal regulations.    Item 17 amends paragraph 30.4(2)“b” to update the provisions for Title V emissions fees and documentation to eliminate the requirement that specific forms be submitted with the fees and to instead state that the fees shall be submitted with forms specified by the Department. The revision is consistent with the changes in Item 8 for submitting emissions inventory forms and provides needed flexibility for the Department to streamline the fee and form submittal methods.    Item 18 amends the introductory paragraph of rule 567—33.1(455B) to reflect recent changes that EPA made to the federal requirements for the PSD program. The specific changes are set forth in Items 19, 20 and 21.    Item 19 amends subrule 33.3(1) to update the definition of “volatile organic compounds” in the same manner as described above for Item 1.    Item 20 amends subrule 33.3(17) to revise the public participation requirements for the PSD program. The changes reflect updates to federal regulations that EPA finalized on October 18, 2016, to allow for posting of the public comment period on a website identified by the permitting authority (the Department). EPA’s revisions also require that permitting authorities be consistent in the method of providing public notice, although other means to provide adequate notice may be used if necessary. To reflect EPA’s changes, this amendment specifies that the Department will provide public notice by posting on a public website identified by the Department, while using other means if necessary to ensure adequate notice to the affected public.    Item 21 amends subrule 33.3(22) to allow for rescission of PSD permits to match changes that EPA made on October 18, 2016, to the public notice requirements in 40 CFR 52.21 as explained above in the description of Item 20.    Item 22 rescinds rules 567—34.200(455B) to 567—34.229(455B), which include Table 1A, Table 1B, Table 2A and Table 2B, to reflect EPA’s rescission of the Clean Air Interstate Rule (CAIR). EPA replaced the federal CAIR regulations that were adopted by reference in Chapter 34 with the Cross States Air Pollution Rule (CSAPR) promulgated in 40 CFR 52.38 through 52.39 and 40 CFR Part 97. (The rescission of the CAIR provisions is explained in 40 CFR 51.123(ff) and 51.124(s).) Because CSAPR is primarily implemented by EPA, CSAPR in Iowa will be implemented through a federal implementation plan (FIP) rather than through a state-developed SIP.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 20, 2017, as ARC 3520C. A public hearing was held on January 22, 2018, at 1 p.m. at Conference Room 4 East, Wallace State Office Building, Des Moines, Iowa. The Department received no comments at the public hearing. The Department received no written comments prior to the January 22, 2018, deadline for public comments. However, after the Notice of Intended Action was published, the Department became aware of planned EPA changes to federal regulations affecting the amendments proposed in Item 11 and Item 14. Consequently, the Commission made changes to the adopted amendments for Item 11 and Item 14 from what was published in the Notice, as explained above. The Commission did not make any other changes from the amendments published under Notice of Intended Action. Adoption of Rule Making    This rule making was adopted by the Commission on February 20, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. A copy of the impact statement is available upon request from the Department. Jobs Impact    The following is a summary of the jobs impact statement. The complete jobs impact statement is available from the Department upon request.    After analysis and review of this rule making, the Commission has determined that the amendments specified in Items 1 through 10 and 15 through 22 will have either a positive or neutral impact on private sector jobs. These amendments rescind unnecessary rules, update other rules, and streamline the rules to provide regulatory certainty and, in some cases, regulatory relief. These amendments also implement a portion of the Department’s five-year review of rules plan as required under Iowa Code section 17A.7(2). Additionally, most of these amendments make changes that match federal regulations and eliminate inconsistencies between federal regulations and state rules. By adopting federal updates into state rules, the Commission is ensuring that Iowa’s air quality rules are no more stringent than federal regulations.    For the amendments specified in Items 11, 12, 13 and 14, the Commission has determined that there may be fiscal impacts to Iowa businesses. However, the amendments are only implementing federally mandated regulations. The amendments are identical to the federal regulations and would not impose any regulations on Iowa businesses not already required by federal law. In some cases, the revised federal standards being adopted provide more flexibility and potential cost savings for affected businesses, offering a positive impact on private sector jobs. Further, the amendments allow the Department, rather than EPA, to be the primary agency to implement the standards in Iowa, thereby allowing the Department to provide compliance assistance to affected facilities.Waivers    This rule is subject to the waiver provisions of 561—Chapter 10. Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 567—20.2(455B), definitions of “EPA reference method” and “Volatile organic compounds,” as follows:        "EPA reference method" means the following methods used for performance tests and continuous monitoring systems:
    1. Performance test (stack test). A stack test shall be conducted according to EPA reference methods specified in 40 CFR 51, Appendix M (as amended through April 2, 2014August 30, 2016); 40 CFR 60, Appendix A (as amended through February 27, 2014August 30, 2016); 40 CFR 61, Appendix B (as amended through February 27, 2014August 30, 2016); and 40 CFR 63, Appendix A (as amended through February 27, 2014August 30, 2016).
    2. Continuous monitoring systems. Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amended through February 27, 2014August 30, 2016); 40 CFR 60, Appendix F (as amended through February 27, 2014August 30, 2016); 40 CFR 75, Appendix A (as amended through January 18, 2012August 30, 2016); 40 CFR 75, Appendix B (as amended through March 28, 2011August 30, 2016); and 40 CFR 75, Appendix F (as amended through January 18, 2012August 30, 2016).
            "Volatile organic compounds" "VOC" means any compound included in the definition of “volatile organic compounds” found at 40 CFR Section 51.100(s) as amended through March 27, 2014August 1, 2016.

        ITEM 2.    Amend paragraph 22.1(2)"i", introductory paragraph, as follows:    i.    Initiation of construction, installation, reconstruction, or alteration (modification) to equipment (as defined in rule 567—20.2(455B)) on or before October 23, 2013, which will not result in a net emissions increase (as defined in paragraph 22.5(1)“f”567—subrule 31.3(1)) of more than 1.0 lb/hr of any regulated air pollutant (as defined in rule 567—22.100(455B)). Emission reduction achieved through the installation of control equipment, for which a construction permit has not been obtained, does not establish a limit to potential emissions.

        ITEM 3.    Amend paragraph 22.1(2)"r" as follows:    r.    An internal combustion engine with a brake horsepower rating of less than 400 measured at the shaft, provided that the owner or operator meets all of the conditions in this paragraph. For the purposes of this exemption, the manufacturer’s nameplate rated capacity at full load shall be defined as the brake horsepower output at the shaft. The owner or operator of an engine that was manufactured, ordered, modified or reconstructed after March 18, 2009, may use this exemption only if the owner or operator, prior to installing, modifying or reconstructing the engine, submits to the department a completed registration, on forms provided by the department(unless the engine is exempted from registration, as specified in this paragraph or on the registration form), certifying that the engine is in compliance with the following federal regulations:    (1)   New source performance standards (NSPS) for stationary compression ignition internal combustion engines (40 CFR Part 60, Subpart IIII); or    (2)   New source performance standards (NSPS) for stationary spark ignition internal combustion engines (40 CFR Part 60, Subpart JJJJ); and    (3)   National emission standards for hazardous air pollutants (NESHAP) for reciprocating internal combustion engines (40 CFR Part 63, Subpart ZZZZ).Use of this exemption does not relieve an owner or operator from any obligation to comply with NSPS or NESHAP requirements.An engine that meets the definition of a nonroad engine as specified in 40 CFR 1068.30 is exempt from the registration requirements of this paragraph (22.1(2)“r”).

        ITEM 4.    Amend subparagraph 22.1(2)"w" as follows:    (1)   “Small unit” means any emission unit and associated control (if applicable) that emits less than the following:
    1. 2 pounds per year of lead and lead compounds expressed as lead (40 pounds per year of lead or lead compounds for equipment for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013);
    2. 5 tons per year of sulfur dioxide;
    3. 5 tons per year of nitrogen oxides;
    4. 5 tons per year of volatile organic compounds;
    5. 5 tons per year of carbon monoxide;
    6. 5 tons per year of particulate matter (particulate matter as defined in 40 CFR Part 51.100(pp));
    7. 2.5 tons per year of PM 10 ;
    8. 0.52 tons per year of PM 2.5 (does not apply to equipment for which initationinitiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013); orand
    9. 5 tons per year of hazardous air pollutants (as defined in rule 567—22.100(455B)).
    For the purposes of this exemption, “emission unit” means any part or activity of a stationary source that emits or has the potential to emit any pollutant subject to regulation under the Act. This exemption applies to existing and new or modified “small units.”An emission unit that emits hazardous air pollutants (as defined in rule 567—22.100(455B)) is not eligible for this exemption if the emission unit is required to be reviewed for compliance with 567—subrule 23.1(3), emission standards for hazardous air pollutants (40 CFR 61, NESHAP), or 567—subrule 23.1(4), emission standards for hazardous air pollutants for source categories (40 CFR 63, NESHAP).An emission unit that emits air pollutants that are not regulated air pollutants as defined in rule 567—22.100(455B) shall not be eligible to use this exemption.

        ITEM 5.    Amend paragraph 22.8(1)"a" as follows:    a.    Definition. “Sprayed material” is material sprayed fromapplied by spray equipment when used in thea surface coating process in thea spray booth, including but not limited to paint, solvents, and mixtures of paint and solvents.Powder coatings applied in an indoor-vented spray booth equipped with filters or overspray powder recovery systems are not considered sprayed material for purposes of this rule (567—22.8(455B)).

        ITEM 6.    Amend rule 567—22.100(455B), definition of “EPA reference method,” as follows:        "EPA reference method" means the following methods used for performance tests and continuous monitoring systems:
    1. Performance test (stack test). A stack test shall be conducted according to EPA reference methods specified in 40 CFR 51, Appendix M (as amended through April 2, 2014August 30, 2016); 40 CFR 60, Appendix A (as amended through February 27, 2014August 30, 2016); 40 CFR 61, Appendix B (as amended through February 27, 2014August 30, 2016); and 40 CFR 63, Appendix A (as amended through February 27, 2014August 30, 2016).
    2. Continuous monitoring systems. Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amended through February 27, 2014August 30, 2016); 40 CFR 60, Appendix F (as amended through February 27, 2014August 30, 2016); 40 CFR 75, Appendix A (as amended through January 18, 2012August 30, 2016); 40 CFR 75, Appendix B (as amended through March 28, 2011August 30, 2016); and 40 CFR 75, Appendix F (as amended through January 18, 2012August 30, 2016).

        ITEM 7.    Amend subparagraph 22.103(2)"b" as follows:    (6)   Internal combustion engines that are used for emergency response purposes with a brake horsepower rating of less than 400 measured at the shaft. The manufacturer’s nameplate rating at full load shall be defined as the brake horsepower output at the shaft.Emergency engines that are subject to any of the following federal regulations are not considered to be insignificant activities for purposes of this rule (567—22.103(455B)):    1.   New source performance standards (NSPS) for stationary compression ignition internal combustion engines (40 CFR Part 60, Subpart IIII);    2.   New source performance standards (NSPS) for stationary spark ignition internal combustion engines (40 CFR Part 50, Subpart JJJJ); or    3.   National emission standards for hazardous air pollutants (NESHAP) for reciprocating internal combustion engines (40 CFR Part 63, Subpart ZZZZ).

        ITEM 8.    Amend subrule 22.106(2) as follows:    22.106(2) Emissions inventory and documentation due dates.  The emissions inventory shall be submitted with forms specified by the department.For emissions located in Polk County or Linn County, three copies of the following formsdocumenting actual emissions for the previous calendar year shall be submitted annually by March 31 documenting actual emissions for the previous calendar year. For emissions in all other counties, two copies of the following formsdocumenting actual emissions for the previous calendar year shall be submitted annually by March 31, documenting actual emissions for the previous calendar year:.    a.    Form 1.0, “Facility Identification”;    b.    Form 4.0, “Emission Unit—Actual Operations and Emissions” for each emission unit;    c.    Form 5.0, “Title V Annual Emissions Summary/Fee”; and    d.    Part 3, “Application Certification.”Alternatively, an owner or operator may submit the required emissions inventory information through the electronic submittal format specified by the department.If there are any changes to the emission calculation form, the department shall make revised forms available to the public by January 1. If revised forms are not available by January 1, forms from the previous year may be used and the year of emissions documented changed. The department shall calculate the total statewide Title V emissions for the prior calendar year and make this information available to the public no later than April 30 of each year.

        ITEM 9.    Amend subrule 22.107(6) as follows:    22.107(6) Public notice and public participation.      a.    The permitting authority shall provide public notice and an opportunity for public comments, including an opportunity for a hearing, before taking any of the following actions: issuance, denial or renewal of a permit; or significant modification or revocation or reissuance of a permit.    b.    Notice shall be given by publication in a newspaper of general circulation in the area where the source is located or in a state publicationposting of the notice, including the draft permit, for the duration of the public comment period on a public website identified by the permitting authority and designed to give general public notice. Notice also shall be given to persons on a mailing list developed by the permitting authority, including those who request in writing to be on the list. The department may use other means if necessary to ensure adequate notice to the affected public.    c.    The public notice shall include the following:    (1)   Identification of the Title V source.    (2)   Name and address of the permittee.    (3)   Name and address of the permitting authority processing the permit.    (4)   The activity or activities involved in the permit action.    (5)   The emissions change involved in any permit modification.    (6)   The air pollutants or contaminants to be emitted.    (7)   The time and place of any possible public hearing.    (8)   A statement that any person may submit written and signed comments, or may request a public hearing, or both, on the proposed permit. A statement of procedures to request a public hearing shall be included.    (9)   The name, address, and telephone number of a person from whom additional information may be obtained. Information entitled to confidential treatment pursuant to Section 114(c) of the Act or state law shall not be released pursuant to this provision. However, the contents of a Title V permit shall not be entitled to protection under Section 114(c) of the Act.    (10)   Locations where copies of the permit application and the proposed permit may be reviewed, including the closest department office, and the times at which they shall be available for public inspection.    d.    At least 30 days shall be provided for public comment. Notice of any public hearing shall be given at least 30 days in advance of the hearing.    e.    Any person may request a public hearing. A request for a public hearing shall be in writing and shall state the person’s interest in the subject matter and the nature of the issues proposed to be raised at the hearing. The director shall hold a public hearing upon finding, on the basis of requests, a significant degree of relevant public interest in a draft permit. A public hearing also may be held at the director’s discretion.    f.    The director shall keep a record of the commenters and of the issues raised during the public participation process and shall prepare written responses to all comments received. At the time a final decision is made, the record and copies of the director’s responses shall be made available to the public.    g.    The permitting authority shall provide notice and opportunity for participation by affected states as provided by subrule 22.107(7).

        ITEM 10.    Amend rule 567—22.120(455B), definition of “40 CFR Part 75,” as follows:        "40 CFR Part 75," or any cited provision therein, shall mean 40 Code of Federal Regulations Part 75, or the cited provision therein, as amended through January 18, 2012August 30, 2016.

        ITEM 11.    Amend subrule 23.1(2) as follows:    23.1(2) New source performance standards.  The federal standards of performance for new stationary sources, as defined in 40 Code of Federal Regulations Part 60 as amended or corrected through September 11, 2015September 14, 2016, are adopted by reference, except § 60.530 through § 60.539b (Part 60, Subpart AAA), and shall apply to the following affected facilities. The corresponding 40 CFR Part 60 subpart designation is in parentheses. An earlier date for adoption by reference may be included with the subpart designation in parentheses. Reference test methods (Appendix A), performance specifications (Appendix B), determination of emission rate change (Appendix C), quality assurance procedures (Appendix F) and the general provisions (Subpart A) of 40 CFR Part 60 also apply to the affected facilities.    a.    Fossil fuel-fired steam generators.A fossil fuel-fired steam generating unit of more than 250 million Btu heat input for which construction, reconstruction, or modification is commenced after August 17, 1971. Any facility covered under paragraph “z” is not covered under this paragraph. (Subpart D as amended through January 20, 2011)    b.    Incinerators.An incinerator of more than 50 tons per day charging rate. (Subpart E)    c.    Portland cement plants.Any of the following in a Portland cement plant: kiln; clinker cooler; raw mill system; finish mill system; raw mill dryer; raw material storage; clinker storage; finished product storage; conveyor transfer points; bagging and bulk loading and unloading systems. (Subpart F)    d.    Nitric acid plants.A nitric acid production unit. Unless otherwise exempted, these standards apply to any nitric acid production unit that commences construction or modification after August 17, 1971, and on or before October 14, 2011. (Subpart G)    e.    Sulfuric acid plants.A sulfuric acid production unit. (Subpart H)    f.    Hot mix asphalt plants.Each hot mix asphalt facility that commenced construction or modification after June 11, 1973. For the purpose of this paragraph, a hot mix asphalt facility is comprised only of any combination of the following: dryers; systems for screening, handling, storing, and weighing hot aggregate; systems for loading, transferring, and storing mineral filler; systems for mixing hot mix asphalt; and the loading, transfer, and storage systems associated with emission control systems. (Subpart I)    g.    Petroleum refineries.Rescinded IAB 3/18/15, effective 4/22/15.    h.    Secondary lead smelters.Rescinded IAB 3/18/15, effective 4/22/15.    i.    Secondary brass and bronze ingot production plants.Any of the following at a secondary brass and bronze ingot production plant; reverberatory and electric furnaces of 1000/kilograms (2205 pounds) or greater production capacity and blast (cupola) furnaces of 250 kilograms per hour (550 pounds per hour) or greater production capacity. (Subpart M)    j.    Iron and steel plants.A basic oxygen process furnace. (Subpart N)    k.    Sewage treatment plants.An incinerator which burns the sludge produced by municipal sewage treatment plants. (Subpart O of 40 CFR 60 and Subpart E of 40 CFR 503.)    l.    Steel plants.Either of the following at a steel plant: electric arc furnaces and dust-handling equipment, the construction, modification, or reconstruction of which commenced after October 21, 1974, and on or before August 17, 1983. (Subpart AA)    m.    Primary copper smelters.Rescinded IAB 3/18/15, effective 4/22/15.    n.    Primary zinc smelters.Rescinded IAB 3/18/15, effective 4/22/15.    o.    Primary lead smelter.Rescinded IAB 3/18/15, effective 4/22/15.    p.    Primary aluminum reduction plants.Rescinded IAB 3/18/15, effective 4/22/15.    q.    Wet process phosphoric acid plants in the phosphate fertilizer industry.A wet process phosphoric acid plant, which includes any combination of the following: reactors, filters, evaporators and hotwells. (Subpart T)    r.    Superphosphoric acid plants in the phosphate fertilizer industry.A superphosphoric acid plant which includes any combination of the following: evaporators, hotwells, acid sumps, and cooling tanks. (Subpart U)    s.    Diammonium phosphate plants in the phosphate fertilizer industry.A granular diammonium phosphate plant which includes any combination of the following: reactors, granulators, dryers, coolers, screens and mills. (Subpart V)    t.    Triple super phosphate plants in the phosphate fertilizer industry.A triple super phosphate plant which includes any combination of the following: mixers, curing belts (dens), reactors, granulators, dryers, cookers, screens, mills and facilities which store run-of-pile triple superphosphate. (Subpart W)    u.    Granular triple superphosphate storage facilities in the phosphate fertilizer industry.A granular triple superphosphate storage facility which includes any combination of the following: storage or curing piles, conveyors, elevators, screens and mills. (Subpart X)    v.    Coal preparation plants.Any of the following at a coal preparation plant which processes more than 200 tons per day: thermal dryers; pneumatic coal cleaning equipment (air tables); coal processing and conveying equipment (including breakers and crushers); coal storage systems; and coal transfer and loading systems. (Subpart Y)    w.    Ferroalloy production.Any of the following: electric submerged arc furnaces which produce silicon metal, ferrosilicon, calcium silicon, silicomanganese zirconium, ferrochrome silicon, silvery iron, high-carbon ferrochrome, charge chrome, standard ferromanganese, silicomanganese, ferromanganese silicon, or calcium carbide; and dust-handling equipment. (Subpart Z)    x.    Kraft pulp mills.Any of the following in a kraft pulp mill: digester system; brown stock washer system; multiple effect evaporator system; black liquor oxidation system; recovery furnace; smelt dissolving tank; lime kiln; and condensate stripper system. In pulp mills where kraft pulping is combined with neutral sulfite semichemical pulping, the provisions of the standard of performance are applicable when any portion of the material charged to an affected facility is produced by the kraft pulping operation. (Subpart BB)    y.    Lime manufacturing plants.A rotary lime kiln or a lime hydrator used in the manufacture of lime at other than a kraft pulp mill. (Subpart HH)    z.    Electric utility steam generating units.An electric utility steam generating unit that is capable of combusting more than 250 million Btus per hour (73 megawatts) heat input of fossil fuel for which construction or modification or reconstruction is commenced after September 18, 1978, or an electric utility combined cycle gas turbine that is capable of combusting more than 250 million Btus per hour (73 megawatts) heat input. “Electric utility steam generating unit” means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 MW net-electrical output to any utility power distribution system for sale. Also, any steam supplied to a steam distribution system for the purpose of providing steam to a steam electric generator that would produce electrical energy for sale is considered in determining the electrical energy output capacity of the affected facility. (Subpart Da as amended through January 20, 2011)    aa.    Stationary gas turbines.Any simple cycle gas turbine, regenerative cycle gas turbine or any gas turbine portion of a combined cycle steam/electric generating system that is not self-propelled. It may, however, be mounted on a vehicle for portability. (Subpart GG)    bb.    Petroleum storage vessels.Unless exempted, any storage vessel for petroleum liquids for which the construction, reconstruction, or modification commenced after June 11, 1973, and prior to May 19, 1978, having a storage capacity greater than 151,412 liters (40,000 gallons). (Subpart K)    cc.    Petroleum storage vessels.Unless exempted, any storage vessel for petroleum liquids for which the construction, reconstruction, or modification commenced after May 18, 1978, and prior to July 23, 1984, having a storage capacity greater than 151,416 liters (40,000 gallons). (Subpart Ka)    dd.    Glass manufacturing plants.Any glass melting furnace. (Subpart CC)    ee.    Automobile and light-duty truck surface coating operations at assembly plants.Any of the following in an automobile or light-duty truck assembly plant: prime coat operations, guide coat operations, and topcoat operations. (Subpart MM)    ff.    Ammonium sulfate manufacture.Any of the following in the ammonium sulfate industry: ammonium sulfate dryers in the caprolactam by-product, synthetic, and coke oven by-product sectors of the industry. (Subpart PP)    gg.    Surface coating of metal furniture.Any metal furniture surface coating operation in which organic coatings are applied. (Subpart EE)    hh.    Lead-acid battery manufacturing plants.Any lead-acid battery manufacturing plant which uses any of the following: grid casting, paste mixing, three-process operation, lead oxide manufacturing, lead reclamation, other lead-emitting operations. (Subpart KK)    ii.    Phosphate rock plants.Any phosphate rock plant which has a maximum plant production capacity greater than four tons per hour including the following: dryers, calciners, grinders, and ground rock handling and storage facilities, except those facilities producing or preparing phosphate rock solely for consumption in elemental phosphorus production. (Subpart NN)    jj.    Graphic arts industry.Publication rotogravure printing. Any publication rotogravure printing press except proof presses. (Subpart QQ)    kk.    Industrial surface coating — large appliances.Any surface coating operation in a large appliance surface coating line. (Subpart SS)    ll.    Metal coil surface coating.Any of the following at a metal coil surface coating operation: prime coat operation, finish coat operation, and each prime and finish coat operation combined when the finish coat is applied wet-on-wet over the prime coat and both coatings are cured simultaneously. (Subpart TT)    mm.    Asphalt processing and asphalt roofing manufacturing.Any saturator, mineral handling and storage facility at asphalt roofing plants; and any asphalt storage tank and any blowing still at asphalt processing plants, petroleum refineries, and asphalt roofing plants. (Subpart UU)    nn.    Equipment leaks of volatile organic compounds (VOC) in the synthetic organic chemicals manufacturing industry.Standards for affected facilities in the synthetic organic chemicals manufacturing industry (SOCMI) that commenced construction, reconstruction, or modification after January 5, 1981, and on or before November 7, 2006, are set forth in Subpart VV. Standards for affected SOCMI facilities that commenced construction, reconstruction or modification after November 7, 2006, are set forth in Subpart VVa. The standards apply to pumps, compressors, pressure relief devices, sampling systems, open-ended valves or lines (OEL), valves, and flanges or other connectors which handle VOC. (Subpart VV and Subpart VVa)    oo.    Beverage can surface coating.Any beverage can surface coating lines for two-piece steel or aluminum containers in which soft drinks or beer are sold. (Subpart WW)    pp.    Bulk gasoline terminals.The total of all loading racks at bulk gasoline terminals which deliver liquid product into gasoline tank trucks. (Subpart XX)    qq.    Pressure sensitive tape and label surface coating operations.Any coating line used in the tape manufacture of pressure sensitive tape and label materials. (Subpart RR)    rr.    Metallic mineral processing plants.Any ore processing and handling equipment. (Subpart LL)    ss.    Synthetic fiber production facilities.Any solvent-spun synthetic fiber process that produces more than 500 megagrams of fiber per year. (Subpart HHH)    tt.    Equipment leaks of VOC in petroleum refineries.A compressor and all equipment (defined in 40 CFR, Part 60.591) within a process unit for which the construction, reconstruction, or modification commenced after January 4, 1983. (Subpart GGG)    uu.    Flexible vinyl and urethane coating and printing.Each rotogravure printing line used to print or coat flexible vinyl or urethane products. (Subpart FFF)    vv.    Petroleum dry cleaners.Petroleum dry-cleaning plant with a total manufacturer’s rated dryer capacity equal to or greater than 38 kilograms (84 pounds): petroleum solvent dry-cleaning dryers, washers, filters, stills, and settling tanks. (Subpart JJJ)    ww.    Electric arc furnaces and argon-oxygen decarburization vessels constructed after August 17, 1983.Steel plants that produce carbon, alloy, or specialty steels: electric arc furnaces, argon-oxygen decarburization vessels, and dust-handling systems. (Subpart AAa)    xx.    Wool fiberglass insulation manufacturing plants.Rotary spin wool fiberglass manufacturing line. (Subpart PPP)    yy.    Iron and steel plants.Secondary emissions from basic oxygen process steelmaking facilities for which construction, reconstruction, or modification commenced after January 20, 1983. (Subpart Na)    zz.    Equipment leaks of VOC from on-shore natural gas processing plants.A compressor and all equipment defined in 40 CFR, Part 60.631, unless exempted, for which construction, reconstruction, or modification commenced after January 20, 1984. (Subpart KKK)    aaa.    On-shore natural gas processing: SO2 emissions.Unless exempted, each sweetening unit and each sweetening unit followed by a sulfur recovery unit for which construction, reconstruction, or modification commenced after January 20, 1984. (Subpart LLL)    bbb.    Nonmetallic mineral processing plants.Unless exempted, each crusher, grinding mill, screening operation, bucket elevator, belt conveyor, bagging operation, storage bin, enclosed truck or rail car loading station in fixed or portable nonmetallic mineral processing plants for which construction, reconstruction, or modification commenced after August 31, 1983. (Subpart OOO)    ccc.    Industrial-commercial-institutional steam generating units.Unless exempted, each steam generating unit for which construction, reconstruction, or modification commenced after June 19, 1984, and which has a heat input capacity of more than 100 million Btu/hour. (Subpart Db as amended through January 20, 2011)    ddd.    Volatile organic liquid storage vessels.Unless exempted, volatile organic liquid storage vessels for which construction, reconstruction, or modification commenced after July 23, 1984. (Subpart Kb)    eee.    Rubber tire manufacturing plants.Unless exempted, each undertread cementing operation, each sidewall cementing operation, each tread end cementing operation, each bead cementing operation, each green tire spraying operation, each Michelin-A operation, each Michelin-B operation, and each Michelin-C automatic operation that commences construction or modification after January 20, 1983. (Subpart BBB)    fff.    Industrial surface coating: surface coating of plastic parts for business machines.Each spray booth in which plastic parts for use in the manufacture of business machines receive prime coats, color coats, texture coats, or touch-up coats for which construction, modification, or reconstruction begins after January 8, 1986. (Subpart TTT)    ggg.    VOC emissions from petroleum refinery wastewater systems.Each individual drain system, each oil-water separator, and each aggregate facility for which construction, modification or reconstruction is commenced after May 4, 1987. (Subpart QQQ)    hhh.    Magnetic tape coating facilities.Unless exempted, each coating operation and each piece of coating mix preparation equipment for which construction, modification, or reconstruction is commenced after January 22, 1986. (Subpart SSS)    iii.    Polymeric coating of supporting substrates.Unless exempted, each coating operation and any on-site coating mix preparation equipment used to prepare coatings for the polymeric coating of supporting substrates for which construction, modification, or reconstruction begins after April 30, 1987. (Subpart VVV)    jjj.    VOC emissions from synthetic organic chemical manufacturing industry air oxidation unit processes.Unless exempted, any air oxidation reactor, air oxidation reactor and recovery system or combination of two or more reactors and the common recovery system used in the production of any of the chemicals listed in 40 CFR §60.617 for which construction, modification or reconstruction commenced after October 21, 1983. (Subpart III)    kkk.    VOC emissions from synthetic organic chemical manufacturing industry distillation operations.Unless exempted, any distillation unit, distillation unit and recovery system or combination of two or more distillation units and the common recovery system used in the production of any of the chemicals listed in 40 CFR §60.667 for which construction, modification or reconstruction commenced after December 30, 1983. (Subpart NNN)    lll.    Small industrial-commercial-institutional steam generating units.Each steam generating unit for which construction, modification, or reconstruction is commenced after June 9, 1989, and that has a maximum design heat input capacity of 100 million Btu per hour or less, but greater than or equal to 10 million Btu per hour. (Subpart Dc as amended through January 20, 2011)    mmm.     VOC emissions from the polymer manufacturing industry.Each of the following process sections in the manufacture of polypropylene and polyethylene—raw materials preparation, polymerization reaction, material recovery, product finishing, and product storage; each material recovery section of polystyrene manufacturing using a continuous process; each polymerization reaction section of poly(ethylene terephthalate) manufacturing using a continuous process; each material recovery section of poly(ethylene terephthalate) manufacturing using a continuous process that uses dimethyl terephthalate; each raw material section of poly(ethylene terephthalate) manufacturing using a continuous process that uses terephthalic acid; and each group of fugitive emissions equipment within any process unit in the manufacturing of polypropylene, polyethylene, or polystyrene (including expandable polystyrene). The applicability date for construction, modification or reconstruction for polystyrene and poly(ethylene terephthalate) affected facilities and some polypropylene and polyethylene affected facilities is September 30, 1987. For the other polypropylene and polyethylene affected facilities the applicability date for these regulations is January 10, 1989. (Subpart DDD)    nnn.    Municipal waste combustors.Unless exempted, a municipal waste combustor with a capacity greater than 225 megagrams per day of municipal solid waste for which construction is commenced after December 20, 1989, and on or before September 20, 1994, and modification or reconstruction is commenced after December 20, 1989, and on or before June 19, 1996. (Subpart Ea)    ooo.    Grain elevators.A grain terminal elevator or any grain storage elevator except as provided under 40 CFR 60.304(b), August 31, 1993. A grain terminal elevator means any grain elevator which has a permanent storage capacity of more than 2.5 million U.S. bushels except those located at animal food manufacturers, pet food manufacturers, cereal manufacturers, breweries, and livestock feedlots. A grain storage elevator means any grain elevator located at any wheat flour mill, wet corn mill, dry corn mill (human consumption), rice mill, or soybean oil extraction plant which has a permanent grain storage capacity of 1 million bushels. Any construction, modification, or reconstruction after August 3, 1978, is subject to this paragraph. (Subpart DD)    ppp.    Mineral processing plants.Each calciner and dryer at a mineral processing plant unless excluded for which construction, modification, or reconstruction is commenced after April 23, 1986. (Subpart UUU)    qqq.    VOC emissions from synthetic organic chemical manufacturing industry reactor processes.Unless exempted, each affected facility that is part of a process unit that produces any of the chemicals listed in 40 CFR §60.707 as a product, coproduct, by-product, or intermediate for which construction, modification, or reconstruction commenced after June 29, 1990. Affected facility is each reactor process not discharging its vent stream into a recovery system, each combination of a reactor process and the recovery system into which its vent stream is discharged, or each combination of two or more reactor processes and the common recovery system into which their vent streams are discharged. (Subpart RRR)    rrr.    Municipal solid waste landfills, as defined by 40 CFR 60.751.Each municipal solid waste landfill that commenced construction, reconstruction or modification or began accepting waste on or after May 30, 1991, must comply. (Subpart WWWas amended through April 10, 2000)    sss.    Municipal waste combustors.Unless exempted, a municipal waste combustor with a combustion capacity greater than 250 tons per day of municipal solid waste for which construction, modification or reconstruction is commenced after September 20, 1994, or for which modification or reconstruction is commenced after June 19, 1996. (Subpart Eb)    ttt.    Hospital/medical/infectious waste incinerators.Unless exempted, a hospital/medical/ infectious waste incinerator for which construction is commenced after June 20, 1996, or for which modification is commenced after March 16, 1998. (Subpart Ec)**As of November 24, 2010, the adoption by reference of Part 60 Subpart Ec is rescinded.    uuu.    New small municipal waste combustion units.Unless exempted, this standard applies to a small municipal waste combustion unit that commenced construction after August 30, 1999, or small municipal waste combustion units that commenced reconstruction or modification after June 6, 2001. (Part 60, Subpart AAAA)    vvv.    Commercial and industrial solid waste incineration.Unless exempted, this standard applies to units for which construction is commenced after November 30, 1999, or for which modification or reconstruction is commenced on or after June 1, 2001. (Part 60, Subpart CCCC, as amended through December 1, 2000)    www.     Other solid waste incineration (OSWI) units.Unless exempted, this standard applies to other solid waste incineration (OSWI) units for which construction is commenced after December 9, 2004, or for which modification or reconstruction is commenced on or after June 16, 2006. (Part 60, Subpart EEEE)    xxx.    Reserved.    yyy.    Stationary compression ignition internal combustion engines.Unless otherwise exempted, these standards apply to each stationary compression ignition internal combustion engine whose construction, modification or reconstruction commenced after July 11, 2005. (Part 60, Subpart IIII)    zzz.    Stationary spark ignition internal combustion engines.These standards apply to each stationary spark ignition internal combustion engine whose construction, modification or reconstruction commenced after June 12, 2006. (Part 60, Subpart JJJJ)    aaaa.     Stationary combustion turbines.Unless otherwise exempted, these standards apply to stationary combustion turbines with a heat input at peak load equal to or greater than 10 MMBtu per hour, based on the higher heating value of the fuel, that commence construction, modification, or reconstruction after February 18, 2005. (Part 60, Subpart KKKK)    bbbb.     Nitric acid plants.Unless otherwise exempted, these standards apply to any nitric acid production unit that commenced construction, reconstruction or modification after October 14, 2011. (Subpart Ga)

        ITEM 12.    Amend subrule 23.1(3), introductory paragraph, as follows:    23.1(3) Emission standards for hazardous air pollutants.  The federal standards for emissions of hazardous air pollutants, 40 Code of Federal Regulations Part 61 as amended or corrected through February 27, 2014August 30, 2016, and 40 CFR Part 503 as adopted on August 4, 1999, are adopted by reference, except 40 CFR §61.20 to §61.26, §61.90 to §61.97, §61.100 to §61.108, §61.120 to §61.127, §61.190 to §61.193, §61.200 to §61.205, §61.220 to §61.225, and §61.250 to §61.256, and shall apply to the following affected pollutants and facilities and activities listed below. The corresponding 40 CFR Part 61 subpart designation is in parentheses. Reference test methods (Appendix B), compliance status information requirements (Appendix A), quality assurance procedures (Appendix C) and the general provisions (Subpart A) of Part 61 also apply to the affected activities or facilities.

        ITEM 13.    Amend subrule 23.1(4) as follows:    23.1(4) Emission standards for hazardous air pollutants for source categories.  The federal standards for emissions of hazardous air pollutants for source categories, 40 Code of Federal Regulations Part 63 as amended or corrected through July 25, 2016September 14, 2016, are adopted by reference, except those provisions which cannot be delegated to the states. The corresponding 40 CFR Part 63 subpart designation is in parentheses. An earlier date for adoption by reference may be included with the subpart designation in parentheses. 40 CFR Part 63, Subpart B, incorporates the requirements of Clean Air Act Sections 112(g) and 112(j) and does not adopt standards for a specific affected facility. Test methods (Appendix A), sources defined for early reduction provisions (Appendix B), and determination of the fraction biodegraded (Fbio) in the biological treatment unit (Appendix C) of Part 63 also apply to the affected activities or facilities. For the purposes of this subrule, “hazardous air pollutant” has the same meaning found in 567—22.100(455B). For the purposes of this subrule, a “major source” means any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit, considering controls, in the aggregate, 10 tons per year or more of any hazardous air pollutant or 25 tons per year or more of any combination of hazardous air pollutants, unless a lesser quantity is established, or in the case of radionuclides, where different criteria are employed. For the purposes of this subrule, an “area source” means any stationary source of hazardous air pollutants that is not a “major source” as defined in this subrule. Paragraph 23.1(4)“a,” general provisions (Subpart A) of Part 63, shall apply to owners or operators who are subject to subsequent subparts of 40 CFR Part 63 (except when otherwise specified in a particular subpart or in a relevant standard) as adopted by reference below.    a.    General provisions.General provisions apply to owners or operators of affected activities or facilities except when otherwise specified in a particular subpart or in a relevant standard. (Subpart A)    b.    Requirements for control technology determinations for major sources in accordance with Clean Air Act Sections 112(g) and 112(j).(40 CFR Part 63, Subpart B)    (1)   Section 112(g) requirements. For the purposes of this subparagraph, the definitions shall be the same as the definitions found in 40 CFR 63.2 and 40 CFR 63.41 as amended through December 27, 1996. The owner or operator of a new or reconstructed major source of hazardous air pollutants must apply maximum achievable control technology (MACT) for new sources to the new or reconstructed major source. If the major source in question has been specifically regulated or exempted from regulation under a standard issued pursuant to Section 112(d), Section 112(h), or Section 112(j) of the Clean Air Act and incorporated in another subpart of 40 CFR Part 63, excluded in 40 CFR 63.40(e) and (f), or the owner or operator of such major source has received all necessary air quality permits for such construction or reconstruction project before June 29, 1998, then the major source in question is not subject to the requirements of this subparagraph. The owner or operator of an affected source shall apply for a construction permit as required in 567—paragraph 22.1(1)“b.” The construction permit application shall contain an application for a case-by-case MACT determination for the major source.    (2)   Section 112(j) requirements. The owner or operator of a new or existing major source of hazardous air pollutants which includes one or more stationary sources included in a source category or subcategory for which the U.S. Environmental Protection Agency has failed to promulgate an emission standard within 18 months of the deadline established under CAA 112(d) must submit a MACT application (Parts 1 and 2) in accordance with the provisions of 40 CFR 63.52, as amended through April 5, 2002, by the CAA Section 112(j) deadline. In addition, the owner or operator of a new emission unit may submit an application for a Notice of MACT Approval before construction, as defined in 40 CFR 63.41, in accordance with the provisions of 567—paragraph 22.1(3)“a.”    c.    Reserved.    d.    Compliance extensions for early reductions of hazardous air pollutants.Compliance extensions for early reductions of hazardous air pollutants are available to certain owners or operators of an existing source who wish to obtain a compliance extension from a standard issued under Section 112(d) of the Act. (Subpart D)    e.    Reserved.    f.    Emission standards for organic hazardous air pollutants from the synthetic chemical manufacturing industry.These standards apply to chemical manufacturing process units that are part of a major source. These standards include applicability provisions, definitions and other general provisions that are applicable to Subparts F, G, and H of 40 CFR 63. (Subpart F)    g.    Emission standards for organic hazardous air pollutants from the synthetic organic chemical manufacturing industry for process vents, storage vessels, transfer operations, and wastewater.These standards apply to all process vents, storage vessels, transfer racks, and wastewater streams within a source subject to Subpart F of 40 CFR 63. (Subpart G)    h.    Emission standards for organic hazardous air pollutants for equipment leaks.These standards apply to emissions of designated organic hazardous air pollutants from specified processes that are located at a plant site that is a major source. Affected equipment includes: pumps, compressors, agitators, pressure relief devices, sampling connection systems, open-ended valves or lines, valves, connectors, surge control vessels, bottoms receivers, instrumentation systems and control devices or systems required by this subpart that are intended to operate in organic hazardous air pollutant service 300 hours or more during the calendar year within a source subject to the provisions of a specific subpart in 40 CFR Part 63. In organic hazardous air pollutant or in organic HAP service means that a piece of equipment either contains or contacts a fluid (liquid or gas) that is at least 5 percent by weight of total organic HAPs as determined according to the provisions of 40 CFR Part 63.161. The provisions of 40 CFR Part 63.161 also specify how to determine that a piece of equipment is not in organic HAP service. (Subpart H)    i.    Emission standards for organic hazardous air pollutants for certain processes subject to negotiated regulation for equipment leaks.These standards apply to emissions of designated organic hazardous air pollutants from specified processes (defined in 40 CFR 63.190) that are located at a plant site that is a major source. Subject equipment includes pumps, compressors, agitators, pressure relief devices, sampling connection systems, open-ended valves or lines, valves, connectors, and instrumentation systems at certain source categories. These standards establish the applicability of Subpart H for sources that are not classified as synthetic organic chemical manufacturing industries. (Subpart I)    j.    Emission standards for hazardous air pollutants for polyvinyl chloride and copolymers production.Rescinded IAB 3/18/15, effective 4/22/15.    k.    Reserved.    l.    Emission standards for coke oven batteries.These standards apply to existing coke oven batteries, including by-product and nonrecovery coke oven batteries and to new coke oven batteries, or as defined in the subpart. (Subpart L)    m.    Perchloroethylene air emission standards for dry cleaning facilities (40 CFR Part 63, Subpart M).These standards apply to the owner or operator of each dry cleaning facility that uses perchloroethylene (also known as perc). The specific standards applicable to dry cleaning facilities, including the compliance deadlines, are set out in the federal regulations contained in Subpart M. In general, dry cleaning facilities must meet the following requirements, which are set out in greater detail in Subpart M:    (1)   New and existing major source dry cleaning facilities are required to control emissions to the level of the maximum achievable control technology (MACT).    (2)   New and existing area source dry cleaning facilities are required to control emissions to the level achieved by generally available control technologies (GACT) or management practices.    (3)   New area sources that are located in residential buildings and that commence operation after July 13, 2006, are prohibited from using perc.    (4)   New area sources located in residential buildings that commenced operation between December 21, 2005, and July 13, 2006, must eliminate all use of perc by July 27, 2009.    (5)   Existing area sources located in residential buildings must eliminate all use of perc by December 21, 2020.    (6)   New area sources that are not located in residential buildings are prohibited from operating transfer machines.    (7)   Existing area sources that are not located in residential buildings are prohibited from operating transfer machines after July 27, 2008.    (8)   All sources must comply with the requirements in Subpart M for emissions control, equipment specifications, leak detection and repair, work practice standards, record keeping and reporting.    n.    Emission standards for chromium emissions from hard and decorative chromium electroplating and chromium anodizing tanks.These standards limit the discharge of chromium compound air emissions from existing and new hard chromium electroplating, decorative chromium electroplating, and chromium anodizing tanks at major and area sources. (Subpart N)    o.    Emission standards for hazardous air pollutants for ethylene oxide commercial sterilization and fumigation operations.New and existing major source ethylene oxide commercial sterilization and fumigation operations are required to control emissions to the level of the maximum achievable control technology (MACT). New and existing area source ethylene oxide commercial sterilization and fumigation operations are required to control emissions to the level achieved by generally available control technologies (GACT). Certain sources are exempt as described in 40 CFR 63.360. (Subpart O)    p.    Emission standards for primary aluminum reduction plants.Rescinded IAB 3/18/15, effective 4/22/15.    q.    Emission standards for hazardous air pollutants for industrial process cooling towers.These standards apply to all new and existing industrial process cooling towers that are operated with chromium-based water treatment chemicals on or after September 8, 1994, and are either major sources or are integral parts of facilities that are major sources. (Subpart Q)    r.    Emission standards for hazardous air pollutants for sources categories: gasoline distribution: (Stage 1).These standards apply to all existing and new bulk gasoline terminals and pipeline breakout stations that are major sources of hazardous air pollutants or are located at plant sites that are major sources. Bulk gasoline terminals and pipeline breakout stations located within a contiguous area or under common control with a refinery complying with 40 CFR Subpart CC are not subject to 40 CFR Subpart R standards. (Subpart R)    s.    Emission standards for hazardous air pollutants for pulp and paper (noncombustion).These standards apply to pulping and bleaching process sources at kraft, soda, sulfite, and stand-alone semichemical pulp mills. Affected sources include pulp mills and integrated mills (mills that manufacture pulp and paper/paperboard) that chemically pulp wood fiber (using kraft, sulfite, soda, or semichemical methods); pulp secondary fiber; pulp nonwood fiber; and mechanically pulp wood fiber. (Subpart S)    t.    Emission standards for hazardous air pollutants: halogenated solvent cleaning.These standards require batch vapor solvent cleaning machines and in-line solvent cleaning machines to meet emission standards reflecting the application of maximum achievable control technology (MACT) for major and area sources; area source batch cold cleaning machines are required to achieve generally available control technology (GACT). The subpart regulates the emissions of the following halogenated hazardous air pollutant solvents: methylene chloride, perchloroethylene, trichloroethylene, 1,1,1-trichloroethane, carbon tetrachloride, and chloroform. (Subpart T)    u.    Emission standards for hazardous air pollutants: Group I polymers and resins.Applicable to existing and new major sources that emit organic HAP during the manufacture of one or more elastomers including but not limited to producers of butyl rubber, halobutyl rubber, epichlorohydrin elastomers, ethylene propylene rubber, Hypalon™, neoprene, nitrile butadiene rubber, nitrile butadiene latex, polybutadiene rubber/styrene butadiene rubber by solution, polysulfide rubber, styrene butadiene rubber by emulsion, and styrene butadiene latex. MACT is required for major sources. (Subpart U)    v.    Reserved.    w.    Emission standards for hazardous air pollutants for epoxy resins production and nonnylon polyamides production.These standards apply to all existing, new and reconstructed manufacturers of basic liquid epoxy resins and manufacturers of wet strength resins that are located at a plant site that is a major source. (Subpart W)    x.    National emission standards for hazardous air pollutants from secondary lead smelting.Rescinded IAB 3/18/15, effective 4/22/15.    y.    Emission standards for marine tank vessel loading operations.This standard requires existing and new major sources to control emissions using maximum achievable control technology (MACT) to control hazardous air pollutants (HAP). (Subpart Y)    z.    Reserved.    aa.    Emission standards for hazardous air pollutants for phosphoric acid manufacturing.These standards apply to all new and existing major sources of phosphoric acid manufacturing. Affected processes include, but are not limited to, wet process phosphoric acid process lines, superphosphoric acid process lines, phosphate rock dryers, phosphate rock calciners, and purified phosphoric acid process lines. (Subpart AA)    ab.    Emission standards for hazardous air pollutants for phosphate fertilizers production.These standards apply to all new and existing major sources of phosphate fertilizer production plants. Affected processes include, but are not limited to, diammonium and monoammonium phosphate process lines, granular triple superphosphate process lines, and granular triple superphosphate storage buildings. (Subpart BB)    ac.    National emission standards for hazardous air pollutants: petroleum refineries.Rescinded IAB 3/18/15, effective 4/22/15.    ad.    Emission standards for hazardous air pollutants for off-site waste and recovery operations.This rule applies to major sources of HAP emissions which receive certain wastes, used oil, and used solvents from off-site locations for storage, treatment, recovery, or disposal at the facility. Maximum achievable control technology (MACT) is required to reduce HAP emissions from tanks, surface impoundments, containers, oil-water separators, individual drain systems and other material conveyance systems, process vents, and equipment leaks. Regulated entities include but are not limited to businesses that operate any of the following: hazardous waste treatment, storage, and disposal facilities; Resource Conservation and Recovery Act (RCRA) exempt hazardous wastewater treatment facilities other than publicly owned treatment works; used solvent recovery plants; RCRA exempt hazardous waste recycling operations; used oil re-refineries. The regulations also apply to federal agency facilities that operate any of the waste management or recovery operations. (Subpart DD)    ae.    Emission standards for magnetic tape manufacturing operations.These standards apply to major sources performing magnetic tape manufacturing operations. (Subpart EE)    af.    Reserved.    ag.    National emission standards for hazardous air pollutants for source categories: aerospace manufacturing and rework facilities.These standards apply to major sources involved in the manufacture, repair, or rework of aerospace components and assemblies, including but not limited to airplanes, helicopters, missiles, and rockets for civil, commercial, or military purposes. Hazardous air pollutants regulated under this standard include chromium, cadmium, methylene chloride, toluene, xylene, methyl ethyl ketone, ethylene glycol, and glycol ethers. (Subpart GG)    ah.    Emission standards for hazardous air pollutants for oil and natural gas production.These standards apply to all new and existing major sources of oil and natural gas production. Affected sources include, but are not limited to, processing of liquid or gaseous hydrocarbons, such as ethane, propane, butane, pentane, natural gas, and condensate extracted from field natural gas. (Subpart HH)    ai.    Emission standards for hazardous air pollutants for shipbuilding and ship repair (surface coating) operations.Rescinded IAB 3/18/15, effective 4/22/15.    aj.    Emission standards for hazardous air pollutants for hazardous air pollutant (HAP) emissions from wood furniture manufacturing operations.These standards apply to each facility that is engaged, either in part or in whole, in the manufacture of wood furniture or wood furniture components and that is located at a plant site that is a major source. (Subpart JJ)    ak.    Emission standards for hazardous air pollutants for the printing and publishing industry.Existing and new major sources are required to control hazardous air pollutants (HAP) using the maximum achievable control technology (MACT). Affected units are publication rotogravure, product and packaging rotogravure, and wide-web flexographic printing. (Subpart KK)    al.    Emission standards for hazardous air pollutants for primary aluminum reduction plants.Rescinded IAB 3/18/15, effective 4/22/15.    am.    Emission standards for hazardous air pollutants for chemical recovery combustion sources at kraft, soda, sulfite, and stand-alone semichemical pulp mills.(Part 63, Subpart MM)    an.    Reserved.    ao.    Emission standards for tanks – level 1.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart OO)    ap.    Emission standards for containers.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart PP)    aq.    Emission standards for surface impoundments.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart QQ)    ar.    Emission standards for individual drain systems.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart RR)    as.    Emission standards for closed vent systems, control devices, recovery devices and routing to a fuel gas system or a process.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart SS)    at.    Emission standards for equipment leaks—control level 1.These provisions apply to the control of air emissions from equipment leaks for which another paragraph under this rule references the use of this paragraph for such emission control. These air emission standards for equipment leaks are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart TT)    au.    Emission standards for equipment leaks—control level 2 standards.These provisions apply to the control of air emissions from equipment leaks for which another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards for equipment leaks are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart UU)    av.    Emission standards for oil-water separators and organic-water separators.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart VV)    aw.    Emission standards for storage vessels (tanks)—control level 2.These provisions apply to the control of air emissions from storage vessels for which another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards for storage vessels are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart WW)    ax.    Emission standards for ethylene manufacturing process units: heat exchange systems and waste operations.This standard applies to hazardous air pollutants (HAPs) from heat exchange systems and waste streams at new and existing ethylene production units. (Part 63, Subpart XX)    ay.    Emission standards for hazardous air pollutants: generic maximum achievable control technology (Generic MACT).These standards apply to new and existing major sources of acetal resins (AR) production, acrylic and modacrylic fiber (AMF) production, hydrogen fluoride (HF) production, polycarbonate (PC) production, carbon black production, cyanide chemicals manufacturing, ethylene production, and Spandex production. Affected processes include, but are not limited to, producers of homopolymers and copolymers of alternating oxymethylene units, acrylic fiber, modacrylic fiber synthetics composed of acrylonitrile (AN) units, hydrogen fluoride and polycarbonate. (Subpart YY)    az.    Reserved.    ba.    Reserved.    bb.    Reserved.    bc.    Emission standards for hazardous air pollutants for steel pickling—HCL process facilities and hydrochloric acid regeneration plants.Rescinded IAB 3/18/15, effective 4/22/15.    bd.    Emission standards for hazardous air pollutants for mineral wool production.These standards apply to all new and existing major sources of mineral wool production. Affected processes include, but are not limited to, cupolas and curing ovens. (Subpart DDD)    be.    Emission standards for hazardous air pollutants from hazardous waste combustors.These standards apply to all hazardous waste combustors: hazardous waste incinerators, hazardous waste burning cement kilns, hazardous waste burning lightweight aggregate kilns, hazardous waste solid fuel boilers, hazardous waste liquid fuel boilers, and hazardous waste hydrochloric acid production furnaces, except as specified in Subpart EEE. Both area sources and major sources are subject to this subpart as of April 19, 1996, and are subject to the requirement to apply for and obtain a Title V permit. (Part 63, Subpart EEE)    bf.    Reserved.    bg.    Emission standards for hazardous air pollutants for pharmaceutical manufacturing.These standards apply to producers of finished dosage forms of drugs, for example, tablets, capsules, and solutions, that contain an active ingredient generally, but not necessarily, in association with inactive ingredients. Pharmaceuticals include components whose intended primary use is to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease, or to affect the structure or any function of the body of humans or other animals. The regulations do not apply to research and development facilities. (Subpart GGG)    bh.    Emission standards for hazardous air pollutants for natural gas transmission and storage.These standards apply to all new and existing major sources of natural gas transmission and storage. Natural gas transmission and storage facilities are those that transport or store natural gas prior to its entering the pipeline to a local distribution company. Affected sources include, but are not limited to, mains, valves, meters, boosters, regulators, storage vessels, dehydrators, compressors and delivery systems. (Subpart HHH)    bi.    Emission standards for hazardous air pollutants for flexible polyurethane foam production.These standards apply to producers of slabstock, molded, and rebond flexible polyurethane foam. The regulations do not apply to processes dedicated exclusively to the fabrication (i.e., gluing or otherwise bonding foam pieces together) of flexible polyurethane foam or to research and development. (Subpart III)    bj.    Emission standards for hazardous air pollutants: Group IV polymers and resins.Applicable to existing and new major sources that emit organic HAP during the manufacture of the following polymers and resins: acrylonitrile butadiene styrene resin (ABS), styrene acrylonitrile resin (SAN), methyl methacrylate acrylonitrile butadiene styrene resin (MABS), methyl methacrylate butadiene styrene resin (MBS), polystyrene resin, poly (ethylene terephthalate) resin (PET), and nitrile resin. MACT is required for major sources. (Subpart JJJ)    bk.    Reserved.    bl.    Emission standards for hazardous air pollutants for Portland cement manufacturing operations.These standards apply to all new and existing major and area sources of Portland cement manufacturing unless exempted. Cement kiln dust (CKD) storage facilities, including CKD piles and landfills, are excluded from this standard. Affected processes include, but are not limited to, all cement kilns and in-line kiln/raw mills, unless they burn hazardous waste. (Subpart LLL)    bm.    Emission standards for hazardous air pollutants for pesticide active ingredient production.These standards apply to all new and existing major sources of pesticide active ingredient production that manufacture organic pesticide active ingredients (PAI), including herbicides, insecticides and fungicides. Affected processes include, but are not limited to, processing equipment, connected piping and ducts, associated storage vessels, pumps, compressors, agitators, pressure relief devices, sampling connection systems, open-ended valves or lines, valves and connectors. Exempted sources include research and development facilities, storage vessels already subject to another 40 CFR Part 63 NESHAP, production of ethylene, storm water from segregated sewers, water from fire-fighting and deluge systems (including testing of such systems) and various spills. (Subpart MMM)    bn.    Emission standards for hazardous air pollutants for wool fiberglass manufacturing.These standards apply to all new and existing major sources of wool fiberglass manufacturing. Affected processes include, but are not limited to, all glass-melting furnaces, rotary spin (RS) manufacturing lines that produce bonded building insulation, flame attenuation (FA) manufacturing lines producing bonded pipe insulation and new FA manufacturing lines producing bonded heavy-density products. (Subpart NNN)    bo.    Emission standards for hazardous air pollutants for amino/phenolic resins production.These standards apply to new or existing facilities that own or operate an amino or phenolic resins production unit. (Part 63, Subpart OOO)    bp.    Emission standards for hazardous air pollutants for polyether polyols production.These standards apply to all new and existing major sources of polyether polyols. Polyether polyols are compounds formed through polymerization of ethylene oxide, propylene oxide or other cyclic ethers with compounds having one or more reactive hydrogens to form polyethers. Affected processes include, but are not limited to, storage vessels, process vents, heat exchange systems, equipment leaks and wastewater operations. (Subpart PPP)    bq.    Emission standards for hazardous air pollutants for primary copper smelting.Rescinded IAB 3/18/15, effective 4/22/15.    br.    Emission standards for hazardous air pollutants for secondary aluminum production.(Part 63, Subpart RRR)    bs.    Reserved.    bt.    Emission standards for hazardous air pollutants for primary lead smelting.Rescinded IAB 3/18/15, effective 4/22/15.    bu.    Emission standards for hazardous air pollutants for petroleum refineries: catalytic cracking units, catalytic reforming units, and sulfur recovery units.Rescinded IAB 2/15/17, effective 3/22/17.    bv.    Emission standards for hazardous air pollutants publicly owned treatment works (POTW).(Part 63, Subpart VVV)    bw.    Reserved.    bx.    Emission standards for hazardous air pollutants for ferroalloys production: ferromanganese and silicomanganese.These standards apply to all new and existing major sources of ferroalloys production of ferromanganese and silicomanganese. Affected processes include, but are not limited to, submerged arc furnaces, metal oxygen refining (MOR) processes, crushing and screening operations, and fugitive dust sources. (Subpart XXX)Reserved.    by.    Reserved.    bz.    Reserved.    ca.    Emission standards for hazardous air pollutants: municipal solid waste landfills.This standard applies to existing and new municipal solid waste (MSW) landfills. (Part 63, Subpart AAAA)    cb.    Reserved.    cc.    Emission standards for hazardous air pollutants for the manufacturing of nutritional yeast.(Part 63, Subpart CCCC)    cd.    Emission standards for hazardous air pollutants for plywood and composite wood products (formerly plywood and particle board manufacturing).These standards apply to new and existing major sources with equipment used to manufacture plywood and composite wood products. This equipment includes dryers, refiners, blenders, formers, presses, board coolers, and other process units associated with the manufacturing process. This also includes coating operations, on-site storage and wastewater treatment. However, only certain process units (defined in the federal rule) are subject to control or work practice requirements. (Part 63, Subpart DDDD)    ce.    Emission standards for hazardous air pollutants for organic liquids distribution (non-gasoline).These standards apply to new and existing major source organic liquids distribution (non-gasoline) operations, which are carried out at storage terminals, refineries, crude oil pipeline stations, and various manufacturing facilities. (Part 63, Subpart EEEE)    cf.    Emission standards for hazardous air pollutants for miscellaneous organic chemical manufacturing (MON).These standards establish emission limits and work practice standards for new and existing major sources with miscellaneous organic chemical manufacturing process units, wastewater treatment and conveyance systems, transfer operations, and associated ancillary equipment. (Part 63, Subpart FFFF)    cg.    Emission standards for hazardous air pollutants for solvent extraction for vegetable oil production.(Part 63, Subpart GGGG)    ch.    Emission standards for hazardous air pollutants for wet-formed fiberglass mat production.This standard applies to wet-formed fiberglass mat production plants that are major sources of hazardous air pollutants. These plants may be stand-alone facilities or located with asphalt roofing and processing facilities. (Part 63, Subpart HHHH)    ci.    Emission standards for hazardous air pollutants for surface coating of automobiles and light-duty trucks.These standards apply to new, reconstructed, or existing affected sources, as defined in the standard, that are located at a facility which applies topcoat to new automobile or new light-duty truck bodies or body parts for new automobiles or new light-duty trucks and that is a major source, is located at a major source, or is part of a major source of emissions of hazardous air pollutants. Additional applicability criteria and exemptions from these standards may apply. (Part 63, Subpart IIII)    cj.    Emission standards for hazardous air pollutants: paper and other web coating.This standard applies to a facility that is engaged in the coating of paper, plastic film, metallic foil, and other web surfaces located at a major source of hazardous air pollutant (HAP) emissions. (Part 63, Subpart JJJJ)    ck.    Emission standards for hazardous air pollutants for surface coating of metal cans.These standards apply to a metal can surface coating operation that uses at least 5,700 liters (1,500 gallons (gal)) of coatings per year and is a major source, is located at a major source, or is part of a major source of hazardous air pollutant emissions. Coating operations located at an area source are not subject to this rule. Additional applicability criteria and exemptions from these standards may apply. (Part 63, Subpart KKKK)    cl.    Reserved.    cm.    Emission standards for hazardous air pollutants for surface coating of miscellaneous metal parts and products.These standards apply to miscellaneous metal parts and products surface coating facilities that are a major source, are located at a major source, or are part of a major source of hazardous air pollutant emissions. A miscellaneous metal parts and products surface coating facility that is located at an area source is not subject to this standard. Certain sources are exempt as described in the standard. (Part 63, Subpart MMMM)    cn.    Emission standards for hazardous air pollutants: surface coating of large appliances.This standard applies to a facility that applies coatings to large appliance parts or products, and is a major source, is located at a major source, or is part of a major source of emissions of hazardous air pollutants (HAPs). The large appliances source category includes facilities that apply coatings to large appliance parts or products. Large appliances include “white goods” such as ovens, refrigerators, freezers, dishwashers, laundry equipment, trash compactors, water heaters, comfort furnaces, electric heat pumps and most HVAC equipment intended for any application. (Part 63, Subpart NNNN)    co.    Emission standards for hazardous air pollutants for printing, coating, and dyeing of fabrics and other textiles.These standards apply to new and existing facilities with fabric or other textile coating, printing, slashing, dyeing, or finishing operations, or group of such operations, that are a major source of hazardous air pollutants or are part of a facility that is a major source of hazardous air pollutants. Coating, printing, slashing, dyeing, or finishing operations located at an area source are not subject to this standard. Several exclusions from this source category are listed in the standard. (Part 63, Subpart OOOO)    cp.    Emission standards for surface coating of plastic parts and products.These standards apply to new and existing major sources with equipment used to coat plastic parts and products. The surface coating application process includes drying/curing operations, mixing or thinning operations, and cleaning operations. Coating materials include, but are not limited to, paints, stains, sealers, topcoats, basecoats, primers, inks, and adhesives. (Part 63, Subpart PPPP)    cq.    Emission standards for hazardous air pollutants for surface coating of wood building products.These standards establish emission limitations, operating limits, and work practice requirements for wood building products surface coating facilities that use at least 1,100 gallons of coatings per year and are a major source, are located at a major source, or are part of a major source of hazardous air pollutant emissions. Wood building products surface coating facilities located at an area source are not subject to this standard. Several exclusions from this source category are listed in the standard. (Part 63, Subpart QQQQ)    cr.    Emission standards for hazardous air pollutants: surface coating of metal furniture.This standard applies to a metal furniture surface coating facility that is a major source, is located at a major source, or is part of a major source of HAP emissions. A metal furniture surface coating facility is one that applies coatings to metal furniture or components of metal furniture. Metal furniture means furniture or components that are constructed either entirely or partially from metal. (Part 63, Subpart RRRR)    cs.    Emission standards for hazardous air pollutants: surface coating of metal coil.This standard requires that all new and existing “major” air toxics sources in the metal coil coating industry meet specific emission limits. Metal coil coating is the process of applying a coating (usually protective or decorative) to one or both sides of a continuous strip of sheet metal. Industries using coated metal include: transportation, building products, appliances, can manufacturing, and packaging. Other products using coated metal coil include measuring tapes, ventilation systems for walls and roofs, lighting fixtures, office filing cabinets, cookware, and sign stock material. (Part 63, Subpart SSSS)    ct.    Emission standards for hazardous air pollutants for leather finishing operations.This standard applies to a new or existing leather finishing operation that is a major source of hazardous air pollutants (HAPs) emissions or that is located at, or is part of, a major source of HAP emissions. In general, a leather finishing operation is a single process or group of processes used to adjust and improve the physical and aesthetic characteristics of the leather surface through multistage application of a coating comprised of dyes, pigments, film-forming materials, and performance modifiers dissolved or suspended in liquid carriers. (Part 63, Subpart TTTT)    cu.    Emission standards for hazardous air pollutants for cellulose products manufacturing.This standard applies to a new or existing cellulose products manufacturing operation that is located at a major source of HAP emissions. Cellulose products manufacturing includes both the miscellaneous viscose processes source category and the cellulose ethers production source category. (Part 63, Subpart UUUU)    cv.    Emission standards for hazardous air pollutants for boat manufacturing.(Part 63, Subpart VVVV)    cw.    Emission standards for hazardous air pollutants: reinforced plastic composites production.This standard applies to a new or an existing reinforced plastic composites production facility that is located at a major source of HAP emissions. (Part 63, Subpart WWWW)    cx.    Emission standards for hazardous air pollutants: rubber tire manufacturing.This standard applies to a rubber tire manufacturing facility that is located at, or is a part of, a major source of hazardous air pollutant (HAP) emissions. Rubber tire manufacturing includes the production of rubber tires and/or the production of components integral to rubber tires, the production of tire cord, and the application of puncture sealant. (Part 63, Subpart XXXX)    cy.    Emission standards for hazardous air pollutants for stationary combustion turbines.These standards apply to stationary combustion turbines which are located at a major source of hazardous air pollutant emissions. Several subcategories have been defined within the stationary combustion turbine source category. Each subcategory has distinct requirements as specified in the standards. These standards do not apply to stationary combustion turbines located at an area source of hazardous air pollutant emissions. (Part 63, Subpart YYYY)    cz.    Emission standards for stationary reciprocating internal combustion engines.These standards apply to new and existing major sources and to new and existing area sources with stationary reciprocating internal combustion engines (RICE). For purposes of these standards, stationary RICE means any reciprocating internal combustion engine which uses reciprocating motion to convert heat energy into mechanical work and which is not mobile. (Part 63, Subpart ZZZZ)    da.    Emission standards for hazardous air pollutants for lime manufacturing plants.These standards regulate hazardous air pollutant emissions from new and existing lime manufacturing plants that are major sources, are colocated with major sources, or are part of major sources. Additional applicability criteria and exemptions from these standards may apply. (Part 63, Subpart AAAAA)    db.    Emission standards for hazardous air pollutants: semiconductor manufacturing.These standards apply to new and existing major sources with semiconductor manufacturing. (Part 63, Subpart BBBBB)    dc.    Emission standards for hazardous air pollutants for coke ovens: pushing, quenching, and battery stacks.This standard applies to a new or existing coke oven battery at a plant that is a major source of HAP emissions. (Part 63, Subpart CCCCC)    dd.    Emission standards for industrial, commercial and institutional boilers and process heaters.These standards apply to new and existing major sources with industrial, commercial or institutional boilers and process heaters. (Part 63, Subpart DDDDD)**As of April 15, 2009, the adoption by reference of Part 63, Subpart DDDDD, is rescinded. On July 30, 2007, the United States Court of Appeals for the District of Columbia Circuit issued its mandate vacating 40 CFR Part 63, Subpart DDDDD, in its entirety, and requiring EPA to repromulgate final standards for industrial, commercial or institutional boilers and process heaters at new and existing major sources.    de.    Emission standards for hazardous air pollutants for iron and steel foundaries.These standards apply to each new or existing iron and steel foundary that is a major source of hazardous air pollutant emissions. A new affected source is an iron and steel foundary for which construction or reconstruction began after December 23, 2002. An existing affected source is an iron and steel foundary for which construction or reconstruction began on or before December 23, 2002. (Part 63, Subpart EEEEE)    df.    Emission standards for hazardous air pollutants for integrated iron and steel manufacturing.These standards apply to affected sources at an integrated iron and steel manufacturing facility that is, or is part of, a major source of hazardous air pollutant emissions. The affected sources are each new or existing sinter plant, blast furnace, and basic oxygen process furnace (BOPF) shop at an integrated iron and steel manufacturing facility that is, or is part of, a major source of hazardous air pollutant emissions. (Part 63, Subpart FFFFF)    dg.    Emission standards for hazardous air pollutants: site remediation.These standards apply to new and existing major sources with certain types of site remediation activity on the source’s property or on a contiguous property. These standards control hazardous air pollutant (HAP) emissions at major sources where remediation technologies and practices are used at the site to clean up contaminated environmental media (e.g., soil, groundwater, or surface water) or certain stored or disposed materials that pose a reasonable potential threat to contaminate environmental media.Some site remediations already regulated by rules established under the Comprehensive Environmental Response and Compensation Liability Act (CERCLA) or the Resource Conservation and Recovery Act (RCRA) are not subject to these standards, as specified in Subpart GGGGG. There are also exemptions for short-term remediation and for certain leaking underground storage tanks, as specified in Subpart GGGGG. (Part 63, Subpart GGGGG)    dh.    Emission standards for hazardous air pollutants for miscellaneous coating manufacturing.These standards establish emission limits and work practice requirements for new and existing miscellaneous coating manufacturing operations, including, but not limited to, process vessels, storage tanks, wastewater, transfer operations, equipment leaks, and heat exchange systems. (Part 63, Subpart HHHHH)    di.    Emission standards for mercury emissions from mercury cell chlor-alkali plants.These standards apply to the chlorine production source category. This source category contains the mercury cell chlor-alkali plant subcategory and includes all plants engaged in the manufacture of chlorine and caustic in mercury cells. These standards define two affected sources: mercury cell chlor-alkali production facilities and mercury recovery facilities. (Part 63, Subpart IIIII)    dj.    Emission standards for hazardous air pollutants for brick and structural clay products manufacturing.Rescinded IAB 2/15/17, effective 3/22/17.    dk.    Emission standards for hazardous air pollutants for clay ceramics manufacturing.Rescinded IAB 2/15/17, effective 3/22/17.    dl.    Emission standards for hazardous air pollutants: asphalt processing and asphalt roofing manufacturing.This standard applies to an existing or new asphalt processing or asphalt roofing manufacturing facility that is a major source of hazardous air pollutants (HAPs) emissions, or is located at, or is part of a major source of HAP emissions. (Part 63, Subpart LLLLL)    dm.    Emission standards for hazardous air pollutants: flexible polyurethane foam fabrication operations.This standard applies to a new or existing source at a flexible polyurethane foam fabrication facility. The standard defines two affected sources (units or collections of units to which a given standard or limit applies) corresponding to the two subcategories, loop slitter adhesive use or flame lamination. (Part 63, Subpart MMMMM)    dn.    Emission standards for hazardous air pollutants: hydrochloric acid production.This standard applies to a new or existing HCl production facility that produces a liquid HCl product at a concentration of 30 weight percent or greater during its normal operations and is located at, or is part of, a major source of HAP. This does not include HCl production facilities that only occasionally produce liquid HCl product at a concentration of 30 weight percent or greater. (Part 63, Subpart NNNNN)    do.    Reserved.    dp.    Emission standards for hazardous air pollutants: engine test cells/stands.This standard applies to an engine test cell/stand that is located at a major source of HAP emissions. An engine test cell/stand is any apparatus used for testing uninstalled stationary or uninstalled mobile engines. (Part 63, Subpart PPPPP)    dq.    Emission standards for hazardous air pollutants for friction materials manufacturing facilities.This standard applies to a new or existing friction materials manufacturing facility that is (or is part of) a major source of hazardous air pollutants (HAPs) emissions. Friction materials manufacturing facilities produce friction materials for use in brake and clutch assemblies. (Part 63, Subpart QQQQQ)    dr.    Emission standards for hazardous air pollutants: taconite iron ore processing.Rescinded IAB 3/18/15, effective 4/22/15.    ds.    Emission standards for hazardous air pollutants for refractory products manufacturing.This standard applies to a new or existing refractory products manufacturing facility that is, is located at, or is part of, a major source of hazardous air pollutant (HAP) emissions. (Part 63, Subpart SSSSS)    dt.    Emission standards for hazardous air pollutants: primary magnesium refining.Rescinded IAB 3/18/15, effective 4/22/15.    du.    Reserved.    dv.    Reserved.    dw.    Emission standards for hazardous air pollutants for hospital ethylene oxide sterilizer area sources.This standard applies to a hospital that is an area source for hazardous air pollutant emissions and that owns or operates a new or existing ethylene oxide sterilization facility. (Part 63, Subpart WWWWW)    dx.    Reserved.    dy.    Emission standards for hazardous air pollutants for electric arc furnace steelmaking area sources.This standard applies to new or existing electric arc furnace (EAF) steelmaking facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart YYYYY)    dz.    Emission standards for hazardous air pollutants for iron and steel foundry area sources.This standard applies to new or existing iron and steel foundries that are area sources for hazardous air pollutant emissions. (Part 63, Subpart ZZZZZ)    ea.    Reserved.    eb.    Emission standards for hazardous air pollutants for gasoline distribution area sources: bulk terminals, bulk plants and pipeline facilities.This standard applies to new and existing bulk gasoline terminals, pipeline breakout stations, pipeline pumping stations and bulk gasoline plants that are area sources for hazardous air pollutant emissions. (Part 63, Subpart BBBBBB)    ec.    Emmission standards for hazardous air pollutants for area sources: gasoline dispensing facilities.This standard applies to new and existing gasoline dispensing facilities (GDF) that are area sources for hazardous air pollutant emissions. The affected equipment includes each gasoline cargo tank during delivery of product to GDF and also includes each storage tank. The equipment used for refueling of motor vehicles is not covered under these standards. (Part 63, Subpart CCCCCC)    ed.    Reserved.    ee.    Reserved.    ef.    Reserved.    eg.    Reserved.    eh.    Emission standards for hazardous air pollutants for area sources: paint stripping and miscellaneous surface coating operations.This standard applies to new or existing area sources of hazardous air pollutant emissions that engage in any of the following activities: (1) paint stripping operations that use methylene chloride (MeCl)-containing paint stripping formulations; (2) spray application of coatings to motor vehicles or mobile equipment; or (3) spray application of coatings to plastic or metal substrate with coatings that contain compounds of chromium (Cr), lead (Pb), manganese (Mn), nickel (Ni) or cadmium (Cd). (Part 63, Subpart HHHHHH)    ei.    Reserved.    ej.    Emission standards for hazardous air pollutants for area sources: industrial, commercial, and institutional boilers.This standard applies to new and existing industrial, commercial and institutional boilers that are area sources for hazardous air pollutant emissions. (Part 63, Subpart JJJJJJ)    ek.    Reserved.    el.    Emission standards for hazardous air pollutants for acrylic and modacrylic fibers production area sources.This standard applies to acrylic and modacrylic fibers production plants that are area sources for hazardous air pollutant emissions. (Part 63, Subpart LLLLLL)    em.    Emission standards for hazardous air pollutants for carbon black production area sources.This standard applies to carbon black production plants that are area sources for hazardous air pollutants. (Part 63, Subpart MMMMMM)    en.    Emission standards for hazardous air pollutants for chemical manufacturing of chromium compounds area sources.This standard applies to plants that produce chromium compounds and are area sources for hazardous air pollutants. (Part 63, Subpart NNNNNN)    eo.    Emission standards for hazardous air pollutants for flexible polyurethane foam production and fabrication area sources.This standard applies to plants that produce flexible polyurethane foam or rebond foam, and plants that fabricate polyurethane foam, that are area sources for hazardous air pollutants. This standard applies to both new and existing area sources. An affected source is existing if construction or reconstruction commenced on or before April 4, 2007. An affected source is new if construction or reconstruction commenced after April 4, 2007. (Part 63, Subpart OOOOOO)    ep.    Emission standards for hazardous air pollutants for lead acid battery manufacturing area sources.This standard applies to lead acid battery manufacturing plants that are area sources for hazardous air pollutants. Affected sources include all grid casting facilities, paste mixing facilities, three-process operation facilities, lead oxide manufacturing facilities, lead reclamation facilities, and any other lead-emitting operation that is associated with a lead acid battery manufacturing plant. This standard applies to both new and existing area sources. An affected source is existing if construction or reconstruction commenced on or before April 4, 2007. An affected source is new if construction or reconstruction commenced after April 4, 2007. (Part 63, Subpart PPPPPP)    eq.    Emission standards for hazardous air pollutants for wood preserving area sources.This standard applies to wood preserving operations that are area sources for hazardous air pollutants. This standard applies to both new and existing area sources. An affected source is existing if construction or reconstruction commenced on or before April 4, 2007. An affected source is new if construction or reconstruction commenced after April 4, 2007. (Part 63, Subpart QQQQQQ)    er.    Emission standards for hazardous air pollutants for clay ceramics manufacturing area sources.This standard applies to any new or existing clay ceramics manufacturing facility with an atomized glaze spray booth or kiln that fires glazed ceramic ware, that processes more than 50 tons per year of wet clay, and that is an area source for hazardous air pollutant emissions. (Part 63, Subpart RRRRRR)    es.    Emission standards for hazardous air pollutants for glass manufacturing area sources.This standard applies to any new or existing glass manufacturing facility that is an area source for hazardous air pollutant emissions and meets the following criteria: (1) manufactures flat glass, glass containers or pressed and blown glass by melting a mixture of raw materials to produce molten glass and form the molten glass into sheets, containers or other shapes; and (2) uses one or more continuous furnaces to produce glass at a rate of at least 50 tons per year and that contains compounds of one or more “glass manufacturing metal HAP,” as defined in 40 CFR 63.11459, as raw materials in a glass manufacturing batch formulation. (Part 63, Subpart SSSSSS)    et.    Emissions standards for hazardous air pollutants for secondary nonferrous metals processing area sources.This standard applies to any new or existing secondary nonferrous metals processing facility that is an area source for hazardous air pollutant emissions. This standard applies to all crushing and screening operations at a secondary zinc processing facility and to all furnace melting operations located at any secondary nonferrous metals processing facility. (Part 63, Subpart TTTTTT)    eu.    Reserved.    ev.    Emission standards for hazardous air pollutants for area sources: chemical manufacturing.This standard applies to chemical manufacturing at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart VVVVVV)    ew.    Emission standards for hazardous air pollutants for area sources: plating and polishing.This standard applies to plating and polishing activities at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart WWWWWW)    ex.    Emission standards for hazardous air pollutants for area sources: metal fabrication and finishing.This standard applies to new and existing facilities in which the primary activity or activities at the facility are metal fabrication and finishing and that are area sources for hazardous air pollutant emissions. (Part 63, Subpart XXXXXX)    ey.    Reserved.    ez.    Emission standards for hazardous air pollutants for area sources: aluminum, copper, and other nonferrous foundries.This standard applies to aluminum, copper, and other nonferrous foundries at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart ZZZZZZ)    fa.    Reserved.    fb.    Reserved.    fc.    Emission standards for hazardous air pollutants for area sources: paint and allied products manufacturing.This standard applies to paint and allied products manufacturing at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart CCCCCCC)    fd.    Emission standards for hazardous air pollutants for area sources: prepared feeds manufacturing.This standard applies to prepared feeds manufacturing that produces animal feed products (not including feed for cats or dogs) and uses chromium or manganese compounds at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart DDDDDDD)

        ITEM 14.    Amend subrule 23.1(5) as follows:    23.1(5) Emission guidelines.  The emission guidelines and compliance times for existing sources, as defined in 40 Code of Federal Regulations Part 60 as amended through June 9, 2006, shall apply to the following affected facilities. The corresponding 40 CFR Part 60 subpart designation is in parentheses.An earlier date for adoption by reference may be included with the subpart designation in parentheses. The control of the designated pollutants will be in accordance with federal standards established in Sections 111 and 129 of the Act and 40 CFR Part 60, Subpart B (Adoption and Submittal of State Plans for Designated Facilities), and the applicable subpart(s) for the existing source. Reference test methods (Appendix A), performance specifications (Appendix B), determination of emission rate change (Appendix C), quality assurance procedures (Appendix F) and the general provisions (Subpart A) of 40 CFR Part 60 also apply to the affected facilities.    a.    Emission guidelines for municipal solid waste landfills (Subpart Cc).Emission guidelines and compliance times for the control of certain designated pollutants from designated municipal solid waste landfills shall be in accordance with federal standards established in Subparts Cc (Emission Guidelines and Compliance Times for Municipal Solid Waste Landfills) and WWW (Standards of Performance for Municipal Solid Waste Landfills) of 40 CFR Part 60as amended through April 10, 2000.    (1)   Definitions. For the purpose of 23.1(5)“a,” the definitions have the same meaning given to them in the Act and 40 CFR Part 60, Subparts A (General Provisions), B, and WWW, if not defined in this subparagraph.“Municipal solid waste landfill” or “MSW landfill” means an entire disposal facility in a contiguous geographical space where household waste is placed in or on land. An MSW landfill may also receive other types of RCRA Subtitle D wastes such as commercial solid waste, nonhazardous sludge, and industrial solid waste. Portions of an MSW landfill may be separated by access roads. An MSW landfill may be publicly or privately owned. An MSW landfill may be a new MSW landfill, an existing MSW landfill or a lateral expansion.    (2)   Designated facilities.
    1. The designated facility to which the emission guidelines apply is each existing MSW landfill for which construction, reconstruction or modification was commenced before May 30, 1991.
    2. Physical or operational changes made to an existing MSW landfill solely to comply with an emission guideline are not considered a modification or reconstruction and would not subject an existing MSW landfill to the requirements of 40 CFR Part 60, Subpart WWW (40 CFR 60.750).
    3. For MSW landfills subject to rule 567—22.101(455B) only because of applicability to subparagraph 23.1(5)“a”(2), the following apply for obtaining and maintaining a Title V operating permit under 567—22.104(455B):
    The owner or operator of an MSW landfill with a design capacity less than 2.5 million megagrams or 2.5 million cubic meters is not required to obtain an operating permit for the landfill.The owner or operator of an MSW landfill with a design capacity greater than or equal to 2.5 million megagrams and 2.5 million cubic meters on or before June 22, 1998, becomes subject to the requirements of 567—subrule 22.105(1) on September 20, 1998. This requires the landfill to submit a Title V permit application to the Air Quality Bureau, Department of Natural Resources, no later than September 20, 1999.The owner or operator of a closed MSW landfill does not have to maintain an operating permit for the landfill if either of the following conditions are met: the landfill was never subject to the requirement for a control system under subparagraph 23.1(5)“a”(3); or the owner or operator meets the conditions for control system removal specified in 40 CFR § 60.752(b)(2)(v).        (3)   Emission guidelines for municipal solid waste landfill emissions.
    1. MSW landfill emissions at each MSW landfill meeting the conditions below shall be controlled. A design capacity report must be submitted to the director by November 18, 1997.
    The landfill has accepted waste at any time since November 8, 1987, or has additional design capacity available for future waste deposition.The landfill has a design capacity greater than or equal to 2.5 million megagrams and 2.5 million cubic meters. The landfill may calculate design capacity in either megagrams or cubic meters for comparison with the exemption values. Any density conversions shall be documented and submitted with the report. All calculations used to determine the maximum design capacity must be included in the design capacity report.The landfill has a nonmethane organic compound (NMOC) emission rate of 50 megagrams per year or more. If the MSW landfill’s design capacity exceeds the established thresholds in 23.1(5)“a”(3)“1,” the NMOC emission rate calculations must be provided with the design capacity report.
    1. The planning and installation of a collection and control system shall meet the conditions provided in 40 CFR 60.752(b)(2) at each MSW landfill meeting the conditions in 23.1(5)“a”(3)“1.”
    2. MSW landfill emissions collected through the use of control devices must meet the following requirements, except as provided in 40 CFR 60.24 after approval by the Director and U.S. Environmental Protection Agency.
    An open flare designed and operated in accordance with the parameters established in 40 CFR 60.18; a control system designed and operated to reduce NMOC by 98 weight percent; or an enclosed combustor designed and operated to reduce the outlet NMOC concentration to 20 parts per million as hexane by volume, dry basis at 3 percent oxygen, or less.        (4)   Test methods and procedures. The following must be used:
    1. The calculation of the landfill NMOC emission rate listed in 40 CFR 60.754, as applicable, to determine whether the landfill meets the condition in 23.1(5)“a”(3)“3”;
    2. The operational standards in 40 CFR 60.753;
    3. The compliance provisions in 40 CFR 60.755; and
    4. The monitoring provisions in 40 CFR 60.756.
        (5)   Reporting and record-keeping requirements. The record-keeping and reporting provisions listed in 40 CFR 60.757 and 60.758, as applicable, except as provided under 40 CFR 60.24 after approval by the Director and U.S. Environmental Protection Agency, shall be used.    (6)   Compliance times.
    1. Except as provided for under 23.1(5)“a”(6)“2,” planning, awarding of contracts, and installation of MSW landfill air emission collection and control equipment capable of meeting the emission guidelines established under 23.1(5)“a”(3) shall be accomplished within 30 months after the date the initial NMOC emission rate report shows NMOC emissions greater than or equal to 50 megagrams per year.
    2. For each existing MSW landfill meeting the conditions in 23.1(5)“a”(3)“1” whose NMOC emission rate is less than 50 megagrams per year on August 20, 1997, installation of collection and control systems capable of meeting emission guidelines in 23.1(5)“a”(3) shall be accomplished within 30 months of the date when the condition in 23.1(5)“a”(3)“1” is met (i.e., the date of the first annual nonmethane organic compounds emission rate which equals or exceeds 50 megagrams per year).
        b.    Emission guidelines for hospital/medical/infectious waste incinerators (Subpart Ce).This paragraph contains emission guidelines and compliance times for the control of certain designated pollutants from hospital/medical/infectious waste incinerator(s) (HMIWI) in accordance with Subparts Ce and Ec (Standards of Performance for Hospital/Medical/Infectious Waste Incinerators) of 40 CFR Part 60.**As of November 24, 2010, the emission guidelines for hospital/medical/infectious waste incinerators (Subpart Ce) are rescinded.    c.    Emission guidelines and compliance schedules forexisting commercial and industrial solid waste incineration units that commenced construction on or before November 30, 1999.Emission guidelines and compliance schedules for the control of designated pollutants from affected commercial and industrial solid waste incinerators that commenced construction on or before November 30, 1999, shall be in accordance with federal plan requirements established in Subpart III of 40 CFR Part 62and 40 CFR §62.3916 as adopted through August 24, 2004.    d.    Emission guidelines for mercury for coal-fired electric utility steam generating units.Rescinded IAB 10/7/09, effective 11/11/09.

        ITEM 15.    Amend subrule 25.1(9) as follows:    25.1(9) Methods and procedures.  Stack sampling and associated analytical methods used to evaluate compliance with emission limitations of 567—Chapter 23 or a permit condition are as follows:    a.    Performance test (stack test).A stack test shall be conducted according to EPA reference methods as specified in 40 CFR 51, Appendix M (as amended through April 2, 2014August 30, 2016); 40 CFR 60, Appendix A (as amended through February 27, 2014August 30, 2016); 40 CFR 61, Appendix B (as amended through February 27, 2014August 30, 2016); and 40 CFR 63, Appendix A (as amended through February 27, 2014August 30, 2016). The owner of the equipment or the owner’s authorized agent may use an alternative methodology if the methodology is approved by the department in writing before testing. Each test shall consist of at least three separate test runs. Unless otherwise specified by the department, compliance shall be assessed on the basis of the arithmetic mean of the emissions measured in the three test runs.    b.    Continuous monitoring systems.Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amended through February 27, 2014August 30, 2016); 40 CFR 60, Appendix F (as amended through February 27, 2014August 30, 2016); 40 CFR 75, Appendix A (as amended through January 18, 2012August 30, 2016); 40 CFR 75, Appendix B (as amended through March 28, 2011August 30, 2016); and 40 CFR 75, Appendix F (as amended through January 18, 2012August 30, 2016). The owner of the equipment or the owner’s authorized agent may use an alternative methodology for continuous monitoring systems if the methodology is approved by the department in writing before the minimum performance specification and quality assurance procedure is conducted.    c.    Permit and compliance demonstration requirements.After October 24, 2012, all stack sampling and associated analytical methods used to evaluate compliance with emission limitations of 567—Chapter 23 or required in a permit issued by the department pursuant to 567—Chapter 22 or 33 shall be conducted using the methodology referenced in this rule. If stack sampling was required for a compliance demonstration pursuant to 567—Chapter 23 or for a performance test required in a permit issued by the department pursuant to 567—Chapter 22 or 33 before October 24, 2012, and the demonstration or test was not required to be completed before October 24, 2012, then the methodology referenced in this subrule applies retroactively.

        ITEM 16.    Amend rule 567—25.2(455B) as follows:

    567—25.2(455B) Continuous emission monitoring under the acid rain program.  The continuous emission monitoring requirements for affected units under the acid rain program as provided in 40 CFR Part 75, including Appendices A, B, F and K as amended through January 18, 2012August 30, 2016, are adopted by reference.

        ITEM 17.    Amend paragraph 30.4(2)"b" as follows:    b.    Fee and documentation due dates.The fee shall be submitted annually by July 1with forms specified by the department. The fee shall be submitted with a copy of the following forms:    (1)   Form 1.0, “Facility Identification”;    (2)   Form 5.0, “Title V Annual Emissions Summary/Fee”; and    (3)   Part 3, “Application Certification.”

        ITEM 18.    Amend rule 567—33.1(455B), introductory paragraph, as follows:

    567—33.1(455B) Purpose.  This chapter implements the major New Source Review (NSR) program contained in Part C of Title I of the federal Clean Air Act as amended on November 15, 1990, and as promulgated under 40 CFR 51.166 and 52.21 as amended through August 19, 2015October 18, 2016. This is a preconstruction review and permitting program applicable to new or modified major stationary sources of air pollutants regulated under Part C of the Clean Air Act as amended on November 15, 1990. In areas that do not meet the national ambient air quality standards (NAAQS), the nonattainment major program applies. The requirements for the nonattainment major NSR program are set forth in 567—22.5(455B), 567—22.6(455B), 567—31.20(455), and 567—31.3(455B). In areas that meet the NAAQS, the PSD program applies. Collectively, the nonattainment major and PSD programs are referred to as the major NSR program. An owner or operator required to apply for a construction permit under 567—Chapter 33 shall submit fees as required in 567—Chapter 30.

        ITEM 19.    Amend subrule 33.3(1), definition of “Volatile organic compounds,” as follows:        "Volatile organic compounds" "VOC" means any compound included in the definition of “volatile organic compounds” found at 40 CFR 51.100(s) as amended through March 27, 2014August 1, 2016.

        ITEM 20.    Amend subrule 33.3(17) as follows:    33.3(17) Public participation.      a.    The department shall notify all applicants within 30 days as to the completeness of the application or any deficiency in the application or information submitted. In the event of such a deficiency, the date of receipt of the application shall be the date on which the department received all required information.    b.    Within one year after receipt of a complete application, the department shall:    (1)   Make a preliminary determination whether construction should be approved, approved with conditions, or disapproved.    (2)   Make available in at least one location in each region in which the proposed source would be constructed a copy of all materials the applicant submitted, a copy of the preliminary determination, and a copy or summary of other materials, if any, considered in making the preliminary determination.    (3)   Notify the public, by advertisement in a newspaper of general circulation in each region in which the proposed source would be constructed,posting on a publicly available website identified by the department, of the application, of the preliminary determination, of the degree of increment consumption that is expected from the source or modification, and of the opportunity for comment at a public hearing as well as written public comment.The electronic notice shall be available for the duration of the public comment period and shall include the notice of public comment, the draft permit(s), information on how to access the administrative record for the draft permit(s) and how to request or attend a public hearing on the draft permit(s). The department may use other means if necessary to ensure adequate notice to the affected public. At least 30 days shall be provided for public comment and for notification of any public hearing.    (4)   Send a copy of the notice of public comment to the applicant, to the Administrator and to officials and agencies having cognizance over the location where the proposed construction would occur as follows: any other state or local air pollution control agencies; the chief executives of the city and county where the source would be located; any comprehensive regional land use planning agency; and any state, federal land manager, or Indian governing body whose lands may be affected by emissions from the source or modification.    (5)   Provide opportunity for a public hearing for interested persons to appear and submit written or oral comments on the air quality impact of the source, alternatives to the proposed source or modification, the control technology required, and other appropriate considerations. At least 30 days’ notice shall be provided for any public hearing.    (6)   Consider all written comments submitted within a time specified in the notice of public comment and all comments received at any public hearing(s) in making a final decision on the approvability of the application. The department shall make all comments available for public inspection at the same locations where the department made available preconstruction information relating to the proposed source or modification.    (7)   Make a final determination whether construction should be approved, approved with conditions, or disapproved.    (8)   Notify the applicant in writing of the final determination and make such notification available for public inspection at the same locations where the department made available preconstruction information and public comments relating to the proposed source or modification.    c.    Reopening of the public comment period.    (1)   If comments submitted during the public comment period raise substantial new issues concerning the permit, the department may, at its discretion, take one or more of the following actions:
    1. Prepare a new draft permit, appropriately modified;
    2. Prepare a revised fact sheet;
    3. Prepare a revised fact sheet and reopen the public comment period; or
    4. Reopen or extend the public comment period to provide interested persons an opportunity to comment on the comments submitted.
        (2)   The public notice provided by the department pursuant to this rule shall define the scope of the reopening. Department review of any comments filed during a reopened comment period shall be limited to comments pertaining to the substantial new issues causing the reopening.

        ITEM 21.    Amend subrule 33.3(22) as follows:    33.3(22) Permit rescission.  Any permit issued under 40 CFR 52.21 or this chapter or any permit issued under rule 567—22.4(455B) shall remain in effect unless and until it is rescinded. The department will consider requests for rescission that meet the conditions specified under paragraphs “a” and “b” of this subrule. If the department rescinds a permit or a condition in a permit issued under 40 CFR 52.21, this chapter, or rule 567—22.4(455B), the public shall be given adequate notice of the proposed rescission. PublicationPosting of an announcement of rescission in a newspaper of general circulation in the affected regionon a publicly available website identified by the department 60 days prior to the proposed date for rescission shall be considered adequate notice.    a.    The department may rescind a permit or a portion of a permit upon request from an owner or operator of a stationary source who holds a permit for a source or modification that was issued:    (1)   Under 40 CFR 52.21 as in effect on July 30, 1987, or earlier, provided the application also meets the provisions in paragraph 33.3(22)“b”;    (2)   Under this chapter between July 1, 2011, and July 6, 2015, to a source that was classified as a major stationary source under subrule 33.3(1) solely on the basis of potential emissions of greenhouse gases; or    (3)   Under this chapter between July 1, 2011, and July 6, 2015, for a modification that was classified as a major modification under subrule 33.3(1) solely on the basis of an increase in emissions of greenhouse gases.    b.    If the application for rescission meets the provisions in paragraph “a” of this subrule, the department may rescind a permit if the owner or operator shows that the PSD provisions under 40 CFR 52.21 or this chapter would not apply to the source or modification.

        ITEM 22.    Rescind and reserve rules 567—34.200(455B) to 567—34.229(455B).    [Filed 2/21/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3680CHuman Services Department[441]Adopted and Filed

    Rule making related to employee background checks

        The Department of Human Services hereby amends Chapter 119, “Record Check Evaluations for Certain Employers and Educational Training Programs,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 217.6 and 2017 Iowa Acts, House File 547.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 217.6 and 2017 Iowa Acts, House File 547.Purpose and Summary    This amendment adds a new element to the definition of “requesting entity.” The change is required in relation to federal legislation requiring background checks on any employee with access to federal tax information used for Department purposes.    The Department may conduct background checks and subsequently conduct evaluations on employees who have access to federal tax information pursuant to Iowa Code section 217.45. The record check evaluation unit will complete the evaluations upon an employee’s hire and again every ten years. The Department will defer to the employee handbook for requirements related to reporting allegations of an employee’s being a perpetrator of abuse or an employee’s alleged criminal charges between the initial date of hire and the ten-year background check.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 20, 2017, as ARC 3515C. No public comments were received. One change from the Notice has been made to update the cross reference in paragraph “10” of the definition of “requesting entity.”Adoption of Rule Making    This rule making was adopted by the Council on Human Services on February 14, 2018.Fiscal Impact    This rule making has a fiscal impact to the state of Iowa of less than $100,000 annually or $500,000 over five years. The Department estimates state costs of $60,077 in state fiscal year (SFY) 2018 and $22,806 in SFY 2019. Costs are higher in the first year due to the initial checks for all current employees. These costs include FBI checks, in-state and out-of-state background checks, and fingerprinting for approximately 1,500 employees. Employees will undergo a background investigation at least once every ten years thereafter. The projections do not include administrative needs associated with background investigations as current staff will fulfill those needs.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making action is adopted:

        ITEM 1.    Amend rule 441—119.1(135B,135C), definition of “Requesting entity,” as follows:        "Requesting entity" means an entity covered by these rules that is requesting an evaluation to determine if the person being evaluated can be employed by the entity or participate in an educational training program and includes the following:
    1. Health care facilities as defined in Iowa Code section 135C.1.
    2. Programs in which the provider is regulated by the state or receives any state or federal funding and the employee being evaluated provides direct services to consumers including but not limited to programs that employ homemakers or home health aides, programs that provide adult day services, hospices, federal home- and community-based services waiver providers, elder group homes, and assisted living programs.
    3. Substance abuse programs for juveniles as described in Iowa Code section 125.14A.
    4. Hospitals as defined in Iowa Code section 135B.1.
    5. Psychiatric medical institutions for children as defined in Iowa Code section 135H.1.
    6. The department as described in Iowa Code section 217.44.
    7. Department institutions as defined in Iowa Code section 218.13.
    8. Child foster care facilities as defined in Iowa Code section 237.1.
    9. Medicaid home- and community-based services waiver providers as defined in Iowa Code section 249A.29.
    10. Certified nurse aide training programs as defined in Iowa Code section 135C.33(8)135C.33(9).
    11. Nursing training programs as described in Iowa Code chapter 152.
    1. The department as described in Iowa Code section 217.45.
        [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3681CHuman Services Department[441]Adopted and Filed

    Rule making related to reimbursement procedures for juvenile detention facilities

        The Department of Human Services hereby amends Chapter 167, “Juvenile Detention Reimbursement,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 234.6.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 234.6.Purpose and Summary    These amendments clarify procedures for juvenile detention homes to follow when seeking annual cost reimbursement. Juvenile detention homes eligible for cost reimbursement will have more clearly defined standards and the changes to dates related to process claim reimbursement.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3546C. No public comments were received. Since publication of the Notice, two technical changes have been made to rule 441—167.5(232) to replace the word “facilities” with the words “detention homes.”Adoption of Rule Making    This rule making was adopted by the Council on Human Services on February 14, 2018.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on May 1, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Adopt the following new definition of “Detained” in rule 441—167.1(232):        "Detained" means the period of time a youth is physically occupying a bed in a juvenile detention home (that is, from the time of intake at the juvenile detention home (nothing prior to this) to the time a youth is discharged from the bed at the home (nothing after this)).

        ITEM 2.    Amend rule 441—167.3(232) as follows:

    441—167.3(232) Eligible facilitiesdetention homes.  County and multicounty juvenile detention homes shall be eligible for reimbursement under this program when:    167.3(1)   The home is approved by the department under the standards of Iowa Code chapter 232 and IAC 441—Chapter 105.    167.3(2)   The home submits the followingreports in paragraphs 167.3(2)“a” and 167.3(2)“b” by May 15March 15 and the certified audit in paragraph 167.3(2)“c” by March 15 or within ten days of completion if after March 15 of the year following the conclusion of the state fiscal year for which reimbursement will be made:    a.    A written statement delivered in printed form or via electronic mail identifying the eligible total net cost that will be claimed under rule 441—167.5(232).    b.    A printed or electronic copy of the following sections of Form 470-0664, Financial and Statistical Report for Purchase of Service Contracts:department-authorized financial and statistical report for juvenile detention homes.    (1)   Certification page.    (2)   Schedule A, Revenue Report.    (3)   Schedule C, Property and Equipment Depreciation and Related Party Property Costs.    (4)   Schedule D, Expense Report.    c.    A printed or electronic copy of the home’s certified audit containing financial information for the period for which reimbursement is being claimed.    167.3(3)   The department has reviewed the information submitted and determined that the costs to be claimed meet eligibility requirements. Eligible costs shall be determined by using a cost allocation methodology that follows generally accepted accounting principles (GAAP). Eligible costs shall be based on the portions of the allowable costs that are directly attributable to the function of detaining youth in the home.    a.    Costs are not eligible for reimbursement if a supplemental funding, reimbursement, or refund source is available to the home. County payments to an eligible home for the function of detaining youth in the home (“care and keep”) are not considered to be supplemental funding, reimbursement, or refund sources for the purpose of this subrule. Ineligible costs include, but are not limited to:    (1)   Refundable deposits.    (2)   Services funded by sources other than the juvenile detention reimbursement program.    (3)   Operational activities such as the food and nutrition program that is funded by the Iowa department of education.    b.    Costs attributed to portions of the home not directly used for detaining children are not eligible for reimbursement.    c.    Costs of alternatives to detaining youth in the approved detention home are not eligible for reimbursement. Services ineligible for reimbursement include, but are not limited to:    (1)   Community tracking and monitoring activities.    (2)   Transportationduring the time a youth is detained that is not related to detentionservice or care and keep or that is the responsibility of or funded by another source.    (3)   Outreach services.    (4)   In-home detention.    d.    Capital expenses shall be depreciated over the useful life of the item following generally accepted accounting principles. The annual depreciated amount for items that are eligible costs may be claimed for reimbursement.    (1)   Capital expenses shall include items costing more than $5,000 that have a useful life of over two years.    (2)   Depreciation schedules shall be filed annually as needed.

        ITEM 3.    Amend rule 441—167.4(232) as follows:

    441—167.4(232) Available reimbursement.  The reimbursement for the participating facilitiesdetention homes shall be the percentage of the allowable costsbased on the distribution formula authorized in the appropriation language for the current fiscal yearby Iowa law.

        ITEM 4.    Amend rule 441—167.5(232) as follows:

    441—167.5(232) Submission of voucher.  Eligible facilitiesdetention homes shall submit a complete signed and dated Form GAX, General Accounting Expenditure, to the department to claim reimbursement.    167.5(1)   Form GAX shall be submitted to the Department of Human Services, Division of Fiscal Management, First Floor, Hoover State Office Building, 1305 East Walnut Street, Des Moines, Iowa 50319-0114, by August 101.    167.5(2)   The formForm GAX shall include the total net eligible costs incurred between July 1 and June 30 of the year covered by the reimbursement. The total net eligibleThese costs will be used to calculate the legislatively authorized percentage of the home’s allowable costs for the year covered by the reimbursementreimbursement amount based on the distribution formula authorized by Iowa law.    167.5(3)   Only facilitiesdetention homes that submit Form GAX by August 101 shall receive reimbursement.

        ITEM 5.    Amend rule 441—167.6(232) as follows:

    441—167.6(232) Reimbursement by the department.  Reimbursement shall be made by August 31 to those participating facilities whichjuvenile detention homes that have complied with these rules.        [Filed 2/14/18, effective 5/1/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3682CInsurance Division[191]Adopted and Filed

    Rule making related to organized delivery systems

        The Insurance Division hereby amends Chapter 4, “Agency Procedure for Rule Making and Waiver of Rules,” Chapter 35, “Accident and Health Insurance,” Chapter 37, “Medicare Supplement Insurance,” Chapter 41, “Limited Service Organizations,” Chapter 71, “Small Group Health Benefit Plans,” Chapter 73, “Health Insurance Purchasing Cooperatives,” Chapter 74, “Health Care Access,” Chapter 75, “Iowa Individual Health Benefit Plans,” and Chapter 78, “Uniform Prescription Drug Information Card,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 505.8.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 505, 507B, 509, 509A, 513B, 513C, 514A, 514B, 514C, 514E, 514F, 514I, 514J, 514K, 514L, and 521F as amended by 2017 Iowa Acts, House File 393, sections 29 to 103.Purpose and Summary    The purpose of these amendments is to implement 2017 Iowa Acts, House File 393, sections 29 to 103, by removing references to “organized delivery systems” from the Insurance Division’s rules.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 17, 2018, as ARC 3571C. No public comments were received. Some technical changes from the Notice have been made for clarification.Adoption of Rule Making    This rule making was adopted by the Iowa Insurance Commissioner on February 22, 2018.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    The Insurance Division’s general waiver provisions of 191—Chapter 4 apply to these rules. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend paragraph 4.24(2)"a" as follows:    a.    For purposes of Iowa Code chapter 505B and this subrule, the following definitions shall apply:        "Commissioner" means the Iowa insurance commissioner or insurance division.        "Intended recipient" means the person to whom notice is required to be delivered, including but not limited to notices listed in the definition of “notice of cancellation, nonrenewal or termination” in this paragraph and in 191—paragraphs 20.80(1)“b,” 30.9(1)“b,” 35.9(1)“b,” 39.33(1)“b,” and 40.26(1)“b.”        "Notice of cancellation, nonrenewal or termination" means:
    1. Notice of an insurance company’s termination of an insurance policy at the end of a term or before the termination date;
    2. Notice of an insurance company’s decision or intention not to renew a policy; and
    3. For purposes of notices required by Iowa Code chapters 505B, 508, 509B, 513B, 514, 514B, 514D, 514G, 515, 515D, 518, 518A and 519, “notice of cancellation, nonrenewal or termination” includes but is not limited to the following:
    4. An insurance company’s notice of cancellation, nonrenewal, suspension, exclusion, intention not to renew, failure to renew, termination, replacement, rescission, forfeiture or lapse in an annuity policy, a life insurance policy, a long-term care insurance policy, or an insurance policy other than life;
    5. An insurance company’s rescission or discontinuance of an accident and health insurance policy;
    6. An insurance company’s notice of cancellation of personal lines policies or contracts;
    7. A health maintenance organization’s notice to an enrollee of cancellation or rescission of membership;
    8. An employer’s or group policyholder’s notice to an employee or member of the termination or substantial modification of the continuation of an employer group accident or health policy; or
    9. A carrier’s or organized delivery system’s advance notice to affected small employers, participants, and beneficiaries of its decision to discontinue offering a particular type of health insurance coverage.

        ITEM 2.    Amend paragraph 4.24(2)"b" as follows:    b.    This subrule shall apply to all insurance companies holding a certificate of authority to transact the business of insurance in Iowa, health maintenance organizations, employers, group policyholders,or carriers and organized delivery systems and to all requirements by statute or rule related to notices of cancellation, nonrenewal or termination. This subrule shall apply when an insurance company, health maintenance organization, employer, group policyholder,or carrier or organized delivery system seeks the commissioner’s approval of a manner for delivering by electronic means required notices of cancellation, nonrenewal or termination, as described in Iowa Code section 505B.1.

        ITEM 3.    Amend subrule 35.3(3), introductory paragraph, as follows:    35.3(3)   For purposes of 2005 Iowa Acts, House File 420, section 1,Iowa Code section 514C.22 relating to biologically based mental illness coverage in a group policy, contract or plan providing for third-party payment of health, medical, and surgical coverage benefits issued by a carrier or by an organized delivery system, “biologically based mental illness” shall mean the following mental disorders as they are defined under the following diagnostic classes within the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders, edition DSM-IV-TR:

        ITEM 4.    Amend rule 191—35.9(509B,513B,514D) as follows:

    191—35.9(509B,513B,514D) Notice of cancellation, nonrenewal or termination of accident and health insurance.      35.9(1) Purpose and definitions.      a.    Purpose.The purpose of this rule is to clarify the authorized methods of delivery for notices of cancellation, nonrenewal or termination by an insurer, issuer, employer, group policyholder,or carrier or organized delivery system, so as to implement the various policyholder protections intended by Iowa Code sections 509B.5, 513B.5, 514D.3, 515.125 and 515.129A and chapter 505B.    b.    Definitions.As used in Iowa Code section 505B.1 and this rule:        "Commissioner" means the Iowa insurance commissioner or insurance division.        "Notice of cancellation, nonrenewal or termination" means:
    1. Notice of termination of an insurance policy at the end of a term or before the termination date;
    2. Notice of a decision or intention not to renew a policy; and
    3. For purposes of notices required by Iowa Code sections 509B.5, 513B.5, 514D.3, 515.125 and 515.129A and chapter 505B, “notice of cancellation, nonrenewal or termination” includes but is not limited to the following:
    4. An employer’s or group policyholder’s notification to employees or members of the termination or substantial modification of the continuation of an employer group accident or health policy pursuant to Iowa Code section 509B.5;
    5. A carrier’s or organized delivery system’s advance notice to all affected small employers, participants, and beneficiaries of its decision to discontinue offering a particular type of small group health insurance plan pursuant to Iowa Code section 513B.5(1)“e”(2);
    6. An insurance company’s notice of termination of an individual accident and sickness policy, pursuant to rules promulgated pursuant to Iowa Code section 514D.3;
    7. An insurance company’s notice of forfeiture, suspension, cancellation, or intention not to renew, pursuant to Iowa Code section 515.125; or
    8. An insurance company’s notice of cancellation of personal lines policies or contracts pursuant to Iowa Code section 515.129A.
        35.9(2) Scope.  This rule shall apply to all insurance companies holding a certificate of authority to transact the business of insurance under the provisions of Iowa Code chapters 508, 512B, 515, and 520.    35.9(3) Delivery.  For any notice of cancellation, nonrenewal or termination by an insurer, employer, group policyholder,or carrier or organized delivery system to be effective, an insurer, employer, group policyholder,or carrier or organized delivery system must, within the time frame established by law, deliver the notice to the person to whom notice is required to be provided either in person or by mail through the U.S. Postal Service to the last-known address of the person to whom notice is required to be provided. The use of U.S. Postal Service Intelligent Mail ® fulfills any requirement in the Iowa Code sections cited in this subrule for certified mail or certificate of mailing as proof of mailing.    35.9(4) Electronic transmissions.  Notwithstanding the requirements of subrule 35.9(3), if an insurer, issuer, employer, group policyholder,or carrier or organized delivery system receives, pursuant to 191—subrule 4.24(2), approval from the commissioner of a manner of electronic delivery of a notice of cancellation, nonrenewal or termination of a policy, the approved manner shall satisfy the notice requirements of Iowa Code sections 509B.5, 513B.5, 514D.3, 515.125 and 515.129A and chapter 505B.       This rule is intended to implement Iowa Code chapters 505B, 509B, 513B, 514D, and 515.

        ITEM 5.    Amend rule 191—35.23(509), definition of “Creditable coverage,” as follows:        "Creditable coverage" means health benefits or coverage provided to an individual under any of the following:
    1. A group health plan.
    2. Health insurance coverage.
    3. Part A or Part B Medicare pursuant to Title XVIII of the federal Social Security Act.
    4. Medicaid pursuant to Title XIX of the federal Social Security Act, other than coverage consisting solely of benefits under Section 1928 of that Act.
    5. 10 U.S.C. ch. 55.
    6. A health or medical care program provided through the Indian Health Service or a tribal organization.
    7. A state health benefits risk pool.
    8. A health plan offered under 5 U.S.C. ch. 89.
    9. A public health plan as defined under federal regulations.
    10. A health benefit plan under Section 5(e) of the Peace Corps Act, 22 U.S.C. 2504(e).
    11. An organized delivery system licensed by the director of public health.
    12. 12A short-term limited durational policy.

        ITEM 6.    Rescind the definition of “Organized delivery system” in rule 191—35.23(509).

        ITEM 7.    Amend rule 191—35.24(509) as follows:

    191—35.24(509) Eligibility to enroll.      35.24(1)   A carrier or an organized delivery system offering group health insurance coverage shall not establish rules for eligibility, including continued eligibility, of an individual to enroll under the terms of the coverage based on any of the following health status-related factors in relation to the individual or a dependent of the individual:    a.    Health status.    b.    Medical condition, including both physical and mental conditions.    c.    Claims experience.    d.    Receipt of health care.    e.    Medical history.    f.    Genetic information.    g.    Evidence of insurability, including conditions arising out of acts of domestic violence.    h.    Disability.    35.24(2)   Subrule 35.24(1) does not require group health insurance coverage to provide particular benefits other than those provided under the terms of the coverage, and does not prevent a coverage from establishing limitations or restrictions on the amount, level, extent, or nature of the benefits or coverage for similarly situated individuals enrolled in the coverage.    35.24(3)   Rules for eligibility to enroll under group health insurance coverage include rules defining any applicable waiting or affiliation periods for such enrollment.    35.24(4)   A carrier or organized delivery system offering health insurance coverage shall not require an individual, as a condition of enrollment or continued enrollment under the coverage, to pay a premium or contribution which is greater than a premium or contribution for a similarly situated individual enrolled in the coverage on the basis of a health status-related factor in relation to the individual or to a dependent of an individual enrolled under the coverage. This subrule shall not be construed to do either of the following:    a.    Restrict the amount that an employer may be charged for health insurance coverage.    b.    Prevent a carrier or organized delivery system offering group health insurance coverage from establishing premium discounts or rebates or modifying otherwise applicable copayments or deductibles in return for adherence to programs of health promotion and disease prevention.    35.24(5)   A carrier or organized delivery system shall not modify a health insurance coverage with respect to an employer or any eligible employee or dependent through riders, endorsements or other means, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the health insurance coverage.

        ITEM 8.    Amend subrule 35.25(1) as follows:    35.25(1)   A carrier or organized delivery system shall permit individuals to enroll for coverage under terms of a health benefit plan, without regard to other enrollment dates permitted under the group health insurance coverage, if an eligible employee requests enrollment or, if the group health insurance coverage makes coverage available to dependents, on behalf of a dependent who is eligible but not enrolled under the group health insurance coverage, during the special enrollment period, which shall be 30 days following an event described in subrulessubrule35.25(2) or 35.25(3) with respect to the individual for whom enrollment is requested. A carrier or organized delivery system may impose enrollment requirements that are otherwise applicable under terms of the group health insurance coverage to individuals requesting immediate enrollment.

        ITEM 9.    Amend rule 191—35.26(509) as follows:

    191—35.26(509) Group health insurance coverage policy requirements.      35.26(1)   Group health insurance coverage subject to the rules in this division is renewable with respect to all eligible employees or their dependents at the option of the employer, except for one or more of the following reasons:    a.    The health insurance coverage sponsor fails to pay or to make timely payments of premiums or contributions pursuant to the terms of the health insurance coverage.    b.    The health insurance coverage sponsors, performs an act or practice constituting fraud or makes an intentional misrepresentation of a material fact under the terms of the coverage.    c.    Noncompliance with the carrier’s or organized delivery system’s minimum participation requirements or employer contribution requirements.    d.    For a network plan, no enrollees connected to the plan live, reside, or work in the service area of the issuer.    e.    A carrier or ODS may choose to discontinue offering and cease to renew a particular type of health insurance coverage in the large group market if the carrier does all of the following:    (1)   Provides advance notice of its decision to discontinue the plan to the commissioner or director a minimum of three days prior to the notice for affected employers, participants, and beneficiaries.    (2)   Provides notice of its decision not to renew a plan to all affected employers, participants, and beneficiaries no less than 90 days prior to nonrenewal of a plan.    (3)   Offers to each plan sponsor of the discontinued coverage the option to purchase any other coverage currently offered by the carrier or ODS to other employers in this state.    (4)   Acts uniformly, in opting to discontinue the coverage and in offering the option under subparagraph 35.26(1)“e”(3), without regard to the claims experience of the sponsors under the discontinued coverage or to a health status-related factor relating to any participants or beneficiaries covered or new participants or beneficiaries who may become eligible for the coverage.    f.    A decision by the carrier or ODS to discontinue offering and cease to renew all of its health insurance delivered or issued for delivery to employers in this state shall do all of the following:    (1)   Provide advance notice of its decision to discontinue such coverage to the commissioner or director. Notice to the commissioner or director, at a minimum, shall be no less than three days prior to the notice provided for in subparagraph 35.26(1)“f”(2) to affected employers, participants, and beneficiaries.    (2)   Provide notice of its decision not to renew such coverage to all affected employers, participants, and beneficiaries no less than 180 days prior to the nonrenewal of the coverage.    (3)   Discontinue all health insurance coverage issued or delivered for issuance to employers in this state and cease renewal of such coverage.    g.    The membership of an employer in a bona fide association, which is the basis for the coverage which is provided through such association, ceases, but only if the termination of coverage under this subrule occurs uniformly without regard to any health status-related factor relating to any covered individual.    h.    The commissioner or director finds that the continuation of the coverage is not in the best interests of the policyholders or certificate holders, or would impair the carrier’s or ODS’s ability to meet its contractual obligations.    i.    At the time of coverage renewal, a carrier or ODS may modify the health insurance coverage for a product offered under group health insurance coverage in the group market, if such modification is consistent with the laws of this state and is effective on a uniform basis among group health insurance coverage with that product.    35.26(2)   A carrier or ODS that elects not to renew health insurance coverage under 35.26(1)“f” shall not write any new business in the group market in this state for a period of five years after the date of notice to the commissioner or director.    35.26(3)   This rule applies only to a carrier or ODS doing business in one established geographic service area of the state and the carrier’s or ODS’s operations in that service area.    35.26(4)   Preexisting condition exclusions.    a.    A carrier or ODS, with respect to a participant or beneficiary, may impose a preexisting condition exclusion only as follows:    (1)   The exclusion relates to a condition, whether physical or mental, regardless of the cause of the condition, for which medical advice, diagnosis, care, or treatment was recommended or received within the six-month period ending on the enrollment date. However, genetic information shall not be treated as a condition under this subparagraph in the absence of a diagnosis of the condition related to such information.    (2)   The exclusion extends for a period of not more than 12 months, or 18 months in the case of a late enrollee, after the enrollment date.    (3)   The period of any such preexisting condition exclusion is reduced by the aggregate of the periods of creditable coverage applicable to the participant or beneficiary as of the enrollment date.    b.    A carrier or ODS offering group health insurance coverage shall not impose any preexisting condition as follows:    (1)   In the case of a child who is adopted or placed for adoption before attaining 18 years of age and who, as of the last day of the 30-day period beginning on the date of the adoption or placement for adoption, is covered under creditable coverage. This subparagraph shall not apply to coverage before the date of such adoption or placement for adoption.    (2)   In the case of an individual who, as of the last day of the 30-day period beginning with the date of birth, is covered under creditable coverage.    (3)   Relating to pregnancy as a preexisting condition.    c.    A carrier or ODS shall waive any waiting period applicable to a preexisting condition exclusion or limitation period with respect to particular services under health insurance coverage for the period of time an individual was covered by creditable coverage, provided that the creditable coverage was continuous to a date not more than 63 days prior to the effective date of the new coverage. Any period that an individual is in a waiting period for any coverage under group health insurance coverage, or is in an affiliation period, shall not be taken into account in determining the period of continuous coverage. A health maintenance organization that does not use preexisting condition limitations in any of its health insurance coverage may impose an affiliation period. For purposes of this paragraph, “affiliation period” means a period of time not to exceed 60 days for new entrants and not to exceed 90 days for late enrollees during which no premium shall be collected and coverage issued is not effective, so long as the affiliation period is applied uniformly, without regard to any health status-related factors.    d.    A group health plan, carrier, or ODSplan or carrier offering group health insurance under the plan may not impose a preexisting condition exclusion with respect to a participant or dependent of the participant before notifying the participant under rule 191—35.29(509).

        ITEM 10.    Amend rule 191—35.27(509) as follows:

    191—35.27(509) Methods of counting creditable coverage.  For purposes of reducing any preexisting condition exclusion period, a group health plan, carrier, or ODSplan or carrier offering group health insurance coverage shall determine the amount of an individual’s creditable coverage by using the standard method described in paragraph 35.27(1)“a,”subrule 35.27(1) except that the plan, carrier or ODSplan or carrier may use the alternative method under paragraph 35.27(1)“b”subrule 35.27(2) with respect to any or all of the categories of benefits described under paragraph 35.27(1)“d.”subrule 35.27(4).    35.() 35.27(1)   a.    Under the standard method, a group health plan,plan or health insurance carrier, or an ODScarrier offering group health insurance coverage shall determine the amount of creditable coverage without regard to the specific benefits included in the coverage.    (1)   a.    For purposes of reducing the preexisting condition exclusion period, a group health plan,plan or health insurance carrier, or an ODScarrier offering group health insurance coverage shall determine the amount of creditable coverage by counting all the days that the individual has under one or more types of creditable coverage. If on a particular day, an individual has creditable coverage from more than one source, all the creditable coverage on that day is counted as one day. Further, any days in a waiting period for a plan or policy are not creditable coverage under the plan or policy.    (2)   b.    Days of creditable coverage that occur before a significant break in coverage are not required to be counted.    (3)   c.    Notwithstanding any other provisions of paragraph 35.27(1)“b,”subrule 35.27(2) for purposes of reducing a preexisting condition exclusion period, a group health plan,plan or a health insurance carrier, or an ODScarrier offering group health insurance coverage may determine the amount of creditable coverage in any other manner that is at least as favorable to the individual as the method set forth in paragraph 35.27(1)“b.”subrule 35.27(2).    35.() 35.27(2)   b.    Under the alternative method, a group health plan,plan or a health insurance carrier, or an ODScarrier offering group health insurance coverage shall determine the amount of creditable coverage based on coverage within any category of benefits described in paragraph 35.27(1)“d”subrule 35.27(4) and not based on coverage. The plan may apply a different preexisting condition exclusion period with respect to each category and may apply a different preexisting condition exclusion period for benefits that are not within any category. The creditable coverage determined for a category of benefits applies only for purposes of reducing the preexisting condition exclusion period with respect to that category. An individual’s creditable coverage for benefits that are not within any category for which the alternative method is being used is determined under the standard method of paragraph 35.27(1)“a.”subrule 35.27(1).    35.() 35.27(3)   c.    A plan, carrier, or ODSplan or carrier using the alternative method is required to apply it uniformly to all participants and beneficiaries in the plan or policy. The use of the alternative method must be set forth in the plan.    35.() 35.27(4)   d.    The alternative method for counting creditable coverage may be used for coverage for any of the following categories of benefits:    (1)   a.    Mental health.    (2)   b.    Substance abuse treatment.    (3)   c.    Prescription drugs.    (4)   d.    Dental care.    (5)   e.    Vision care.    35.() 35.27(5)   e.    If the alternative method is used, the plan is required to:    (1)   a.    State prominently that the plan is using the alternative method of counting creditable coverage in disclosure statements concerning the plan, and state this to each enrollee at the time of enrollment under the plan;    (2)   b.    Include in these statements a description of the effect of using the alternative method, including an identification of the category’s uses; and    (3)   c.    Count creditable coverage within a category if any level of benefits is provided within the category.

        ITEM 11.    Amend rule 191—35.28(509) as follows:

    191—35.28(509) Certificates of creditable coverage.      35.28(1)   Group health plans, carriers, or ODSsplans or carriers shall issue certificates of creditable coverage to persons losing coverage. A group health plan, carrier, or ODSplan or carrier required to provide a certificate under this rule for an individual is deemed to have satisfied the certification requirements for that individual if another party provides the certificate, but only to the extent that information relating to the individual’s creditable coverage and waiting or affiliation period is provided by the other party. Certificates shall be issued within a reasonable amount of time following termination to employees and dependents:    a.    Automatically upon the termination of an individual’s group coverage;    b.    Automatically upon the termination of COBRA coverage;    c.    Upon request within 24 months after coverage ends.    35.28(2)   Certificates in writing. Certificates of coverage must be in writing unless all of the following conditions are met:    a.    The individual requesting the certificate is not entitled to receive a certificate;    b.    The individual requests that the certificate be sent to another plan, carrier, or ODSplan or carrier;    c.    The plan, carrier, or ODSplan or carrier receiving the certificate agrees to accept the information through means other than a written certificate;    d.    The plan or carrier receiving the certificate receives the certificate within a reasonable amount of time.    35.28(3)   Required information. The certificate shall include the following information:    a.    The date the certificate is issued;    b.    The name of the group plan providing coverage;    c.    The name of the employee or dependent to whom the certificate applies, other relevant identifying information, and the name of the employee if the certificate is for a dependent;    d.    The plan administrator’s name, address and telephone number;    e.    A telephone number to call for further information if different from above;    f.    Either a statement that the person has at least 18 months’ creditable coverage without a significant break of coverage or the date any waiting period and creditable coverage began;    g.    The date creditable coverage ended or an indication that the coverage is in force.    35.28(4)   Family information. Information for families may be combined on one certificate. Any differences in creditable coverages shall be clearly delineated.    35.28(5)   Dependent coverage transition rule. A group health plan, carrier, or ODSplan or carrier that does not maintain dependent data is deemed to have satisfied the requirement to issue dependent certificates by naming the employee and specifying that the coverage on the certificate is for dependent coverage.    35.28(6)   Delivering certificates. The certificate shall be given to the individual, plan, carrier, or ODSplan or carrier requesting the certificate. The certificates may be sent by first-class mail. When a dependent’s last-known address differs from the employee’s last-known address, a separate certificate shall be provided to the dependent at the dependent’s last-known address. Separate certificates may be mailed together to the same location.    35.28(7)   A group health plan, carrier, or ODSplan or carrier shall establish a procedure for individuals to request and receive certificates.    35.28(8)   A certificate is not required to be furnished until the group health plan, carrier, or ODSplan or carrier knows or should have known thatthe dependent’s coverage terminated.    35.28(9)   Demonstrating creditable coverage. An individual has the right to demonstrate creditable coverage, waiting periods, and affiliation periods when the accuracy of the certificate is contested or a certificate is unavailable. A group health plan, carrier, or ODSplan or carrier shall consider information obtained by it or presented on behalf of an individual to determine whether the individual has creditable coverage.

        ITEM 12.    Amend rule 191—35.29(509) as follows:

    191—35.29(509) Notification requirements.      35.29(1)   A group health plan, carrier, or ODSplan or carrier shall provide written notice to the employee and dependents that includes the following:    a.    The existence of any preexisting condition exclusions.    b.    A determination that the group health plan, carrier, or ODSplan or carrier intends to impose a preexisting condition exclusion and:    (1)   The basis for the decision to do so;    (2)   The length of time to which the exclusion will apply;    (3)   The right of the employee or dependent to appeal a decision to impose a preexisting condition exclusion;    (4)   The right of the person to demonstrate creditable coverage including the right of the person to request a certificate from a prior group health plan, carrier, or ODSplan or carrier and a statement that the current group health plan, carrier, or ODSplan or carrier will assist in obtaining the certificate.    c.    That the group health plan, carrier, or ODS will use the alternative method of counting creditable coverage.    d.    Special enrollment rights when an employee declines coverage for the employee or dependents.    35.29(2)   A group health plan, carrier, or ODSplan or carrier shall provide written notice to the employee and dependents of a modification of a prior creditable coverage decision when the group health plan, carrier, or ODSplan or carrier subsequently determines either no or less creditable coverage existed provided that the group health plan, carrier, or ODSplan or carrier acts according to its initial determination until the final determination is made.

        ITEM 13.    Amend rule 191—35.31(509) as follows:

    191—35.31(509) Disclosure requirements.  All carriers and ODSs shall include in contracts and evidence of coverage forms a statement disclosing the existence of any prescription drug formularies. Upon request, all carriers and ODSs offering health insurance coverage that includes a prescription drug formulary shall inform enrollees of the coverage, and prospective enrollees of the coverage during any open enrollment period, whether a prescription drug specified in the request is included in such formulary.All carriers and ODSs shall also disclose the existence of any contractual arrangements providing rebates received by them for prescription drugs or durable medical equipment. Durable medical equipment means equipment that can stand repeated use and is primarily and customarily used to serve a medical purpose and is generally not useful to a person who is not sick or injured or used by other family members and is appropriate for home use for the purpose of improving bodily functions or preventing further deterioration of the medical condition caused by sickness or injury.

        ITEM 14.    Amend rule 191—35.35(509) as follows:

    191—35.35(509) Reconstructive surgery.      35.35(1)   A carrier or organized delivery system that provides medical and surgical benefits with respect to a mastectomy shall provide the following coverage in the event an enrollee receives benefits in connection with a mastectomy and elects breast reconstruction:    a.    Reconstruction of the breast on which the mastectomy has been performed;    b.    Surgery and reconstruction of the other breast to produce a symmetrical appearance; and    c.    Prostheses and coverage of physical complications at all stages of a mastectomy including lymphedemas.    35.35(2)   The benefits under this rule shall be provided in a manner determined in consultation with the attending physician and the enrollee. The coverage may be subject to annual deductibles and coinsurance provisions that are consistent with other benefits under the plan or coverage.    35.35(3)   Written notice of the availability of coverage in this rule shall be provided to the enrollee upon enrollment and then annually.    35.35(4)   A carrier or organized delivery system shall not deny an enrollee eligibility or continued eligibility to enroll or renew coverage under the terms of the health insurance solely for the purpose of avoiding the requirements of this rule. A carrier or organized delivery system shall not penalize, reduce or limit the reimbursement of an attending provider or induce the provider to provide care in a manner inconsistent with this rule.       This rule is intended to implement Public Law 105-277.

        ITEM 15.    Amend rule 191—35.39(514C) as follows:

    191—35.39(514C) Contraceptive coverage.      35.39(1)   A carrier or organized delivery system that provides benefits for outpatient prescription drugs or devices shall provide benefits for prescription contraceptive drugs or prescription contraceptive devices which prevent conception and are approved by the United States Food and Drug Administration or generic equivalents approved as substitutable by the United States Food and Drug Administration.    35.39(2)   A carrier or organized delivery system is not required to provide benefits for over-the-counter contraceptive drugs or contraceptive devices that do not require a prescription for purchase.    35.39(3)   A contraceptive drug or contraceptive device does not include surgical services intended for sterilization, including, but not limited to, tubal ligation or vasectomy.    35.39(4)   A carrier or organized delivery system shall be required to provide benefits for services related to outpatient contraceptive services for the purpose of preventing conception if the policy or contract provides benefits for other outpatient services provided by a health care professional.    35.39(5)   If a carrier or organized delivery system does not provide benefits for a routine physical examination, the carrier or organized delivery system is not required to provide benefits for a routine physical examination provided in the course of prescribing a contraceptive drug or contraceptive device.       This rule is intended to implement 2000 Iowa Acts, Senate File 2126Iowa Code chapter 514C.

        ITEM 16.    Amend rule 191—37.3(514D), definition of “Creditable coverage,” as follows:        "Creditable coverage" means, with respect to an individual, coverage of the individual provided under any of the following:
    1. A group health plan;
    2. Health insurance coverage;
    3. Part A or Part B of Title XVIII of the Social Security Act (Medicare);
    4. Title XIX of the Social Security Act (Medicaid), other than coverage consisting solely of benefits under Section 1928;
    5. Chapter 55 of Title 10, United States Code (CHAMPUS);
    6. A medical care program of the Indian Health Service or of a tribal organization;
    7. A state health benefits risk pool;
    8. A health plan offered under Chapter 89 of Title 5 United States Code (Federal Employees Health Benefits Program);
    9. A public health plan as defined in federal regulation; and
    10. A health benefit plan under Section 5(e) of the Peace Corps Act (22 United States Code 2504(e)).; and
    11. A organized delivery system.
    12. 12Short-term limited durational policy.
    “Creditable coverage” shall not include one or more, or any combination of, the following:
    1. Coverage only for accident or disability income insurance, or any combination thereof;
    2. Coverage issued as a supplement to liability insurance;
    3. Liability insurance, including general liability insurance and automobile liability insurance;
    4. Workers’ compensation or similar insurance;
    5. Automobile medical payment insurance;
    6. Credit-only insurance;
    7. Coverage for on-site medical clinics; and
    8. Other similar insurance coverage, specified in federal regulations, under which benefits for medical care are secondary or incidental to other insurance benefits.
    “Creditable coverage” shall not include the following benefits if they are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of the plan:
    1. Limited scope dental or vision benefits;
    2. Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; and
    3. Such other similar, limited benefits as are specified in federal regulations.
    “Creditable coverage” shall not include the following benefits if offered as independent, noncoordinated benefits:
    1. Coverage only for a specified disease or illness; and
    2. Hospital indemnity or other fixed indemnity insurance.
    “Creditable coverage” shall not include the following if it is offered as a separate policy, certificate or contract of insurance:
    1. Medicare supplemental health insurance as defined under Section 1882(g)(1) of the Social Security Act;
    2. Coverage supplemental to the coverage provided under Chapter 55 of Title 10, United States Code; and
    3. Similar supplemental coverage provided to coverage under a group health plan.

        ITEM 17.    Amend rule 191—41.1(514B), definition of “Limited service organization (LSO),” as follows:        "Limited service organization (LSO)" “Limited service organization” or “LSO”means any corporation or limited liability company or other entity which, in return for prepayment, undertakes to provide or arrange for the provision of one or more limited health services to enrollees. Entities authorized to do business pursuant to Iowa Code chapters 508, 512B, 514, 514B (health maintenance organizations), 515,and520and organized delivery systems shall not be required to obtain separate licensure as an LSO.

        ITEM 18.    Amend rule 191—71.1(513B) as follows:

    191—71.1(513B) Purpose.  This chapter is intended to implement the provisions of Iowa Code chapter 513B to provide for the guaranteed issue of all health insurance products in the small group market, regardless of their health status or claims experience; to regulate insurer rating practices and establish limits on differences in rates between health insurance coverages; to ensure renewability of coverage; to establish limitations on underwriting practices, eligibility requirements and the use of preexisting condition exclusions; to provide for development of “basic” and “standard” health insurance plans to be offered to all small employers; to provide for establishment of a reinsurance program; to direct the basis of market competition away from risk selection and toward the efficient management of health care; to improve the overall fairness and efficiency of the small group health insurance market and to promote broader spreading of risk in the small employer marketplace. Carriers and ODSs that provide basic and standard health benefit plans, as herein set forth, to small employers are intended to be subject to all provisions of Iowa Code chapter 513B and this chapter of rules.    71.1(1)   Health insurance coverage subject to this chapter is available or renewable with respect to all eligible employees or their dependents, at the option of the employer, except for reasons set forth in Iowa Code section 513B.5.    71.1(2)   A carrier or organized delivery system subject to this chapter is required to guarantee issue small employer plans except for reasons set forth in Iowa Code chapter 513B.

        ITEM 19.    Amend rule 191—71.2(513B), definition of “Short-term limited duration insurance,” as follows:        "Short-term limited duration insurance" means health insurance coverage provided under a contract with a carrier or ODS that has an expiration date specified in the contract, taking into account any extensions that may be elected by the policyholder without the carrier’s or ODS’s consent, that is, within 12 months of the date the contract becomes effective.

        ITEM 20.    Rescind the definition of “Organized delivery system” in rule 191—71.2(513B).

        ITEM 21.    Amend rule 191—71.3(513B) as follows:

    191—71.3(513B) Applicability and scope.      71.3(1)       a.    Except as provided herein, this chapter shall apply to any health insurance coverage, whether provided on a group or individual basis, which:    (1)   Meets one or more of the conditions set forth in Iowa Code sections 513B.3(1) to 513B.3(3);    (2)   Provides coverage to one or more employees of a small employer located in this state without regard to whether the policy or certificate was issued in this state; and    (3)   Is in effect on or after July 1, 1991.    b.    Except as specifically provided, the provisions of Iowa Code chapter 513B and this chapter shall not apply to health insurance coverages delivered or issued for delivery prior to the effective date of the Act.    71.3(2)       a.    A carrier or ODS that provides individual health insurance policies to one or more of the employees of a small employer shall be considered a small employer carrier or ODS and subject to the provisions of Iowa Code chapter 513B and this chapter with respect to such policies if the small employer contributes, directly or indirectly, to the premiums for the policies and the carrier or ODS is aware, or should have been aware, of such contribution.    b.    In the case of a carrier or ODS that provides individual health insurance policies to one or more employees of a small employer, the small employer shall be considered an eligible small employer as defined inIowa Code section513B.10 and the small employer carrier subject toIowa Code section513B.10(1)“b”(2) if:    (1)   The small employer has at least two employees;    (2)   The small employer contributes, directly or indirectly, to the premiums charged by the carrier or ODS; and    (3)   The carrier or ODS is aware, or should have been aware, of the contribution by the employer.     71.3(3)   Iowa Code chapter 513B and this chapter shall apply to health insurance coverage provided to a small employer or to the employees of a small employer without regard to whether the health insurance coverage is offered under or provided through a group policy or trust arrangement of any size sponsored by an association or discretionary group.    71.3(4)   An individual health insurance policy shall not be subject toIowa Code chapter 513B and this chapter solely because the policyholder elects a business expense deduction under Section 162(1) of the Internal Revenue Code, the health insurance coverage is treated as part of a plan or program for purposes of Section 125 of the Internal Revenue Code for which the employee makes all the contributions,or the employer provides payroll deduction of health insurance premiums on behalf of an employee if the health insurance coverage covers employees where the employer has applied for group health benefits and has received written notification that the group did not meet the small group carrier’s or ODS’s minimum participation or contribution standards. The individual health insurance carrier or ODS shall maintain a copy of the employer’s notification from the small group carrier for insurance division audit purposes.    71.3(5)       a.    If a small employer is issued health insurance coverage under the terms ofIowa Code chapter513B, the provisions ofIowa Code chapter513B and this chapter shall continue to apply to the health insurance coverage in the case that the small employer subsequently employs more than 50 eligible employees. A carrier or ODS providing coverage to such an employer shall, within 60 days of becoming aware that the employer has more than 50 eligible employees but no later than the anniversary date of the employer’s health insurance coverage, notify the employer that the protections provided underIowa Code chapter513B and this chapter shall cease to apply to the employer if such employer fails to renew its current health insurance coverage or elects to enroll in different health insurance coverage. It is the responsibility of the employer to notify the carrier or ODS of changes in employment levels which could change the employer’s status as a small employer for the purposes of this chapter.    b.        (1)   If health insurance coverage is issued to an employer that is not a small employer as defined, but subsequently the employer becomes a small employer (due to the loss or change of work status of one or more employees), the terms of Iowa Code chapter 513B shall not apply to the health insurance coverage. The carrier or ODS providing health insurance coverage to such an employer shall not become a small employer carrier or ODS under the terms of Iowa Code chapter 513B solely because the carrier or ODS continues to provide coverage under the health insurance coverage to the employer.    (2)   A carrier or ODS providing coverage to an employer described in subparagraph 71.3(5)“b”(1) shall, within 60 days of becoming aware that the employer has 50 or fewer eligible employees, notify the employer of the options and protections available to the employer underIowa Code chapter513B, including the employer’s option to purchase a small employer health insurance coverage from any small employer carrier or ODS. It is the responsibility of the employer to notify the carrier of changes in employment levels which could change the employer’s status as a small employer for the purposes of this chapter.    71.3(6)       a.        (1)   If a small employer has employees in more than one state, Iowa Code chapter 513B and this chapter shall apply to health insurance coverage issued to the small employer if:
    1. The majority of eligible employees of such small employer are employed in this state; or
    2. If no state contains a majority of the eligible employees of the small employer, the primary business location of the small employer is in this state.
        (2)   In determining whether the laws of this state or another state apply to health insurance coverage issued to a small employer described in subparagraph (1), the provisions of the paragraph shall be applied as of the date the health insurance coverage was issued to the small employer for the period that the health insurance coverage remains in effect.        b.    If health insurance coverage is subject to Iowa Code chapter 513B and this chapter, the provisions of 513B and those set forth herein shall apply to all individuals covered under the health insurance coverage whether they reside in this state or in another state.        71.3(7)   A carrier or ODS that is not operating as a small employer carrier or ODS in this state shall not become subject to the provisions of the Act and this regulation solely because a small employer that was issued health insurance coverage in another state by that carrier or ODS moves to this state.

        ITEM 22.    Amend rule 191—71.4(513B) as follows:

    191—71.4(513B) Establishment of classes of business.      71.4(1)   A small employer carrier or ODS that establishes more than one class of business as defined in Iowa Code section 513B.2 shall maintain on file for inspection by the commissioner the following information with respect to each class of business so established:    a.    A description of each criterion employed by the carrier (or any of its agents) for determining membership in the class of business;    b.    A statement describing the justification for establishing the class as a separate class of business and documentation that the establishment of the class of business is intended to reflect substantial differences in expected claims experience or administrative costs related to the reasons as set forth in the definition of “class of business” in Iowa Code section 513B.2;    c.    A statement disclosing which, if any, health insurance coverages are currently available for purchase in the class and any significant limitations related to the purchase of such plans.     71.4(2)   A carrier or ODS may not directly or indirectly use group size as a criterion for establishing eligibility for health insurance coverage or for a class of business.

        ITEM 23.    Amend rule 191—71.5(513B) as follows:

    191—71.5(513B) Transition for assumptions of business from another carrier.      71.5(1)       a.    A small employer carrier or ODS shall not transfer or assume the entire insurance obligation or risk of health insurance coverage covering a small employer in this state unless:    (1)   The transaction has been approved by the commissioner of the state of domicile of the assuming carrier or ODS;    (2)   The transaction has been approved by the commissioner of the state of domicile of the ceding carrier or ODS; and    (3)   The transaction otherwise meets the requirements of this rule and 513B.3(4)“c.”    b.    A carrier or ODS domiciled in this state that proposes to assume or cede the entire insurance obligation or risk of one or more small employer health benefit plans from another carrier or ODS shall make a filing for approval with the commissioner at least 60 days prior to the date of the proposed assumption. The commissioner may approve the transaction upon a finding that the transaction is in the best interests of the individuals insured under the health insurance coverages to be transferred and is consistent with the purposes of Iowa Code chapter 513B and this chapter. The commissioner shall not approve the transaction until at least 30 days after the date of the filing except that, if the ceding carrier or ODS is in hazardous financial condition, the commissioner may approve the transaction as soon as the commissioner deems reasonable after the filing.    c.        (1)   The filing required under paragraph 71.5(1)“b” shall:
    1. Describe the class of business (including any eligibility requirements) of the ceding carrier or ODS from which the health insurance coverage will be ceded;
    2. Describe whether the assuming carrier or ODS will maintain the assumed health insurance coverage as a separate class of business (pursuant to 71.5(3)) or will incorporate them into an existing class of business (pursuant to 71.5(4)). If the assumed health insurance coverage will be incorporated into an existing class of business, the filing shall describe the class of business of the assuming carrier or ODS into which the health insurance coverages will be incorporated;
    3. Describe whether the health insurance coverages being assumed are currently available for purchase by small employers;
    4. Describe the potential effect of the assumption (if any) on the benefits provided by the health insurance coverages to be assumed;
    5. Describe the potential effect of the assumption (if any) on the premiums for the health insurance coverages to be assumed;
    6. Describe any other potential material effects of the assumption on the coverage provided to the small employers covered by the health insurance coverages to be assumed; and
    7. Include any other information required by the commissioner.
        (2)   A small employer carrier or ODS required to make a filing under 71.5(1)“b” shall also make an informational filing with the commissioner of each state in which there are small employer health insurance coverages that would be included in the transaction. The informational filing to each state shall be made concurrently with the filing made under 71.5(1)“b” and shall include at least the information specified in 71.5(1)“c”(1) for the small employer health insurance coverages in that state.        d.    A small employer carrier or ODS shall not transfer or assume the entire insurance obligation or risk of health insurance coverage covering a small employer in this state unless it complies with the following provisions:    (1)   The carrier or ODS has provided notice to the commissioner at least 60 days prior to the date of the proposed assumption. The notice shall contain the information specified in 71.5(1)“c” for the health insurance coverages covering small employers in this state.    (2)   If the assumption of a class of business would result in the assuming small employer carrier or ODScarrier’s being out of compliance with the limitations related to premium rates contained in Iowa Code section 513B.4(1)“a,” the assuming carrier or ODS shall make a filing with the commissioner pursuant to Iowa Code section 513B.17 seeking suspension of the application ofIowa Code section513B.4(1)“a.”    (3)   An assuming carrier or ODS seeking suspension of the application of Iowa Code paragraphsection513B.4(1)“a” shall not complete the assumption of health insurance coverages covering small employers in this state unless the commissioner grants the suspension requested pursuant to 71.5(1)“d”(2).    (4)   Unless a different period is approved by the commissioner, a suspension of the application of 513B.4(1)“a” shall, with respect to an assumed class of business, be for no more than 15 months and, with respect to each individual small employer, last only until the anniversary date of such employer’s coverage (except that the period with respect to an individual small employer may be extended beyond its first anniversary date for a period of up to 12 months if the anniversary date occurs within 3 months of the date of assumption of the class of business).        71.5(2)       a.    Except as provided in paragraph 71.5(1)“b,” a small employer carrier or ODS shall not cede or assume the entire insurance obligation or risk for small employer health insurance coverage unless the transaction includes ceding to the assuming carrier or ODS the entire class of business that includes such health insurance coverage.    b.    A small employer carrier or ODS may cede less than an entire class of business to an assuming carrier if:    (1)   One or more small employers in the class have exercised their right under contract or state law to reject (either directly or by implication) the ceding of their health insurance coverage to another carrier or ODS. In that instance, the transaction shall include each health insurance coverage in the class of business except those health insurance coverages for which a small employer has rejected the proposed cession; or    (2)   After a written request from the transferring carrier, the commissioner determines that the transfer of less than the entire class of business is in the best interests of the small employers insured in that class of business.    71.5(3)   Except as provided in 71.5(4), a small employer carrier or ODS that assumes one or more health insurance coverages from another carrier or ODS shall maintain such health insurance coverages as a separate class of business.    71.5(4)   A small employer carrier or ODS that assumes one or more health insurance coverages from another carrier or ODS may exceed the limitation contained in Iowa Code section 513B.2 (relating to the maximum number of classes of business a carrier or ODS may establish) due solely to such assumption for a period of up to 15 months after the date of the assumption, provided that the carrier or ODS complies with the following provisions:    a.    Upon assumption of the health insurance coverages, such health insurance coverages shall be maintained as a separate class of business. During the 15-month period following the assumption, each of the assumed small employer health insurance coverages shall be transferred by the assuming small employer carrier or ODS into a single class of business operated by the assuming small employer carrier or ODS. The assuming small employer carrier or ODS shall select the class of business into which the assumed health insurance coverages will be transferred in a manner that results in the least possible change to the coverages and rating method of the assumed health insurance coverages.    b.    The transfers authorized in paragraph “a” shall occur, with respect to each small employer, on the anniversary date of the small employer’s coverage, except that an individual small employer period may be extended beyond the first anniversary date up to 12 months if the anniversary date occurs within 3 months of the date of assumption of the class of business.    c.    A small employer carrier or ODS making a transfer pursuant to paragraph “a” may alter the benefits of the assumed health insurance coverages to conform to the benefits currently offered by the carrier in the class of business into which the health insurance coverages have been transferred.    d.    The premium rate for an assumed small employer health insurance coverage shall not be modified by the assuming small employer carrier or ODS until the health insurance coverage is transferred pursuant to paragraph “a.” Upon transfer, the assuming small employer carrier or ODS shall calculate a new premium rate for the health insurance coverage from the rate manual established for the class of business into which the health insurance coverage is transferred. In making such calculation, the risk load applied to the health insurance coverage shall be no higher than the risk load applicable to such health insurance coverage prior to the assumption.    e.    During the 15-month period provided in this subrule, the transfer of small employer health insurance coverages from the assumed class of business in accordance with this subrule shall not be considered a violation of the first sentence of Iowa Code section 513B.4(4).    71.5(5)   An assuming carrier or ODS may not apply eligibility requirements (including minimum participation and contribution requirements) with respect to an assumed health insurance coverage (or with respect to any health insurance coverage subsequently offered to a small employer covered by such an assumed health insurance coverage) that are more stringent than the requirements applicable to such health insurance coverage prior to the assumption.    71.5(6)   The commissioner may approve a longer period of transition upon application of a small employer carrier or ODS. The application shall be made within 60 days after the date of assumption of the class of business and shall clearly state the justification for a longer transition period.    71.5(7)   Nothing in this rule or in Iowa Code chapter 513B is intended to:    a.    Reduce or diminish any legal or contractual obligation or requirement, including any obligation provided in Iowa Code chapters 521 and 521B, of the ceding or assuming carrier or ODS related to the transaction;    b.    Authorize a carrier or ODS that is not admitted to transact the business of insurance in this state to offer health insurance coverages in this state; or    c.    Reduce or diminish the protections related to an assumption reinsurance transaction provided in Iowa Code chapters 521 and 521B or otherwise provided by law.

        ITEM 24.    Amend rule 191—71.6(513B) as follows:

    191—71.6(513B) Restrictions relating to premium rates.      71.6(1)       a.    A small employer carrier shall develop a separate rate manual for each class of business. Base premium rates and new business premium rates charged to small employers by the small employer carrier shall be computed solely from the applicable rate manual developed pursuant to this rule. To the extent that a portion of the premium rates charged by a small employer carrier is based on the carrier’s discretion, the manual shall specify the criteria and factors considered by the carrier in exercising such discretion.    b.        (1)   A small employer carrier shall not modify the rating method used in the rate manual for a class of business until the change has been approved as provided in this paragraph. The commissioner may approve a change to a rating method if the commissioner finds that the change is reasonable, actuarially appropriate, and consistent with the purpose of Iowa Code chapter 513B and this chapter.    (2)   A carrier may modify the rating method for a class of business only with prior approval of the commissioner. A carrier requesting to change the rating method for a class of business shall make a filing with the commissioner at least 30 days prior to the proposed date of the change. The filing shall contain at least the following information:
    1. The reasons the change in rating method is being requested;
    2. A complete description of each of the proposed modifications to the rating method;
    3. A description of how the change in rating method would affect the premium rates currently charged to small employers in the class of business, including an estimate from a qualified actuary of the number of groups or individuals (and a description of the types of groups or individuals) whose premium rates may change by more than 10 percent due to the proposed change in rating method (not generally including increases in premium rates applicable to all small employers in health insurance coverage);
    4. A certification from a qualified actuary that the new rating method would be based on objective and credible data and would be actuarially sound and appropriate; and
    5. A certification from a qualified actuary that the proposed change in rating method would not produce premium rates for small employers that would be in violation of Iowa Code section 513B.4.
        (3)   For the purpose of this rule, a change in rating method shall mean:
    1. A change in the number of case characteristics used by a small employer carrier or ODS to determine premium rates for health insurance coverages in a class of business;
    2. A change in the manner or procedures by which insureds are assigned into categories for the purpose of applying a case characteristic to determine premium rates for health insurance coverages in a class of business;
    3. A change in the method of allocating expenses among health insurance coverages in a class of business; or
    4. A change in a rating factor with respect to any case characteristic if the change would produce a change in premium for any small employer that exceeds 10 percent.
    For the purpose of subparagraph (3), paragraph “1” above,71.6(1)“b”(3)“1,” a change in a rating factor shall mean the cumulative change, with respect to such factor, considered over a 12-month period. If a small employer carrier changes rating factors with respect to more than one case characteristic in a 12-month period, the carrier shall consider the cumulative effect of all such changes in applying the 10 percent test under paragraph “1.”71.6(1)“b”(3)“1.” A filing which has not previously been approved, denied, or questioned is deemed approved on or after 30 days from receipt by the division.        71.6(2)       a.    The rate manual developed pursuant to 71.6(1) shall specify the case characteristics and rate factors to be applied by the small employer carrier in establishing premium rates for the class of business.    b.    A small employer carrier may not use case characteristics other than those specified in 513B.4(2) without the prior approval of the commissioner. A small employer carrier seeking such an approval shall make a filing with the commissioner for a change in rating method under 71.6(1)“b.”    c.    A small employer carrier or ODS shall use the same case characteristics in establishing premium rates for each health insurance coverage in a class of business and shall apply them in the same manner in establishing premium rates for each health insurance coverage. Case characteristics shall be applied without regard to the risk characteristics of a small employer.    d.    The rate manual developed pursuant to 71.6(1) shall clearly illustrate the relationship among the base premium rates charged for each health insurance coverage in the class of business. If the new business premium rate is different than the base premium rate for a health insurance coverage, the rate manual shall illustrate the difference.    e.    Differences among base premium rates for health insurance coverages shall be based solely on the reasonable and objective differences in the design and benefits of the health insurance coverages and shall not be based in any way on the actual or expected health status or claims experience of the small employer groups that choose, or are expected to choose, a particular health insurance coverage. A small employer carrier or ODS shall apply case characteristics and rate factors within a class of business in a manner that ensures that premium differences among health insurance coverages for identical small employer groups vary only due to reasonable and objective differences in the design and benefits of the health insurance coverages and are not due to the actual or expected health status or claims experience of the small employer groups that choose, or are expected to choose, a particular health insurance coverage.    f.    The rate manual developed pursuant to 71.6(1) shall provide for premium rates to be developed in a two-step process. In the first step, a base premium rate shall be developed for the small employer group without regard to any risk characteristics of the group. In the second step, the resulting base premium rate may be adjusted by a risk load, subject to the provisions of Iowa Code section 513B.4, to reflect the risk characteristics of the group.    g.        (1)   Except as provided in subparagraph (2), a premium charged to a small employer for a health insurance coverage shall not include a separate application fee, underwriting fee or any other separate fee or charge.    (2)   A carrier or ODS may charge a separate fee with respect to a health insurance coverage (but only one fee with respect to such plan) provided the fee is no more than $5 per month per employee and is applied in a uniform manner to each health insurance coverage in a class of business.    h.    A small employer carrier or ODS shall allocate administrative expenses to the basic and standard health benefit plans on no less favorable a basis than expenses are allocated to other health insurance coverages in the class of business. The rate manual developed pursuant to 71.6(1) shall describe the method of allocating administrative expenses to the health insurance coverages in the class of business for which the manual was developed.    i.    Each rate manual developed pursuant to 71.6(1) shall be maintained by the carrier for a period of six years. Updates and changes to the manual shall be maintained with the manual.    j.    The rate manual and rating practices of a small employer carrier shall comply with any guidelines issued by the commissioner.    71.6(3)   If group size is used as a case characteristic by a small employer carrier, the highest rate factor associated with a group size classification shall not exceed the lowest rate factor associated with such a classification by more than 20 percent.    71.6(4)   The restrictions related to changes in premium rates inIowa Code sections513B.4(1)“c” and 513B.4(1)“d” shall be applied as follows:    a.    A small employer carrier shall revise its rate manual each rating period to reflect changes in base premium rates and changes in new business premium rates.    b.        (1)   If, for any health insurance coverage with respect to any rating period, the percentage change in the new business premium rate is less than or the same as the percentage change in the base premium rate, the change in the new business premium rate shall be deemed the change in the base premium rate for the purposes of 513B.4(1)“c” and 513B.4(1)“d.”    (2)   If, for any health insurance coverages with respect to any rating period, the percentage change in the new business premium rate exceeds the percentage change in the base premium rate, the health insurance coverage shall be considered health insurance coverage into which the small employer carrier or ODS is no longer enrolling new small employers for the purposes ofIowa Code sections513B.4(1)“c” and 513B.4(1)“d.”    c.    If, for any rating period, the change in the new business premium rate for health insurance coverage differs from the change in the new business premium rate for any other health insurance coverage in the same class of business by more than 20 percent, the carrier or ODS shall make a filing with the commissioner containing a complete explanation of how the respective changes in new business premium rates were established and the reason for the difference. The filing shall be made within 30 days of the beginning of the rating period.    d.    A small employer carrier or ODS shall keep on file, for a period of at least six years, the calculations used to determine the change in base premium rates and new business premium rates for each health insurance coverage for each rating period.    71.6(5)       a.    Except as provided in paragraphs “b” through “d,” a change in premium rate for a small employer shall produce a revised premium rate that is no more than the following:    (1)   The base premium rate for the small employer (as shown in the rate manual as revised for the rating period), multiplied by    (2)   One plus the sum of:
    1. The risk load applicable to the small employer during the previous rating period, and
    2. Fifteen percent (prorated for periods of less than one year).
        b.    In the case of health insurance coverage into which a small employer carrier or ODS is no longer enrolling new small employers, a change in a premium rate for a small employer shall produce a revised premium rate that is no more than the following:    (1)   The base premium rate for the small employer (given its present composition and as shown in the rate manual in effect for the small employer at the beginning of the previous rating period), multiplied by    (2)   One plus the lesser of:
    1. The change in the base rate or
    2. The percentage change in the new business premium for the most similar health insurance coverage into which the small employer carrier or ODS is enrolling new small employers, multiplied by
        (3)   One plus the sum of:
    1. The risk load applicable to the small employer during the previous rating period and
    2. Fifteen percent (prorated for periods of less than one year).
        c.    In the case of health insurance coverage described in Iowa Code section 513B.4(2), if the current premium rate for the health insurance coverage exceeds the ranges set forth in 513B.4(1), the formulae set forth in paragraphs “a” and “b” will be applied as if the 15 percent adjustment provided in 71.6(5)“a”(2)“2” and 71.6(5)“b”(3)“2” were a zero percent adjustment.    d.    Notwithstanding the provisions of paragraphs “a” and “b,” a change in premium rate for a small employer shall not produce a revised premium rate that would exceed the limitations on rates provided in 513B.4(1)“b.”        71.6(6)       a.    A representative of a Taft Hartley trust (including a carrier upon the written request of such a trust) may file in writing with the commissioner a request for the waiver of application of the provisions ofIowa Code section 513B.4 with respect to such trust.    b.    A request made under paragraph “a” shall identify the provisions for which the trust is seeking the waiver and shall describe, with respect to each provision, the extent to which application of such provisions would:    (1)   Adversely affect the participants and beneficiaries of the trust; and    (2)   Require modifications to one or more of the collective bargaining agreements under or pursuant to which the trust was or is established or maintained.    c.    A waiver granted underIowa Code section 513B.4A shall not apply to an individual who participates in the trust because the individual is an associate member of an employee organization or the beneficiary of such an individual.

        ITEM 25.    Amend rule 191—71.7(513B) as follows:

    191—71.7(513B) Requirement to insure entire groups.      71.7(1)       a.    A small employer carrier or ODS that offers coverage to a small employer shall offer to provide coverage to each eligible employee and to each dependent of an eligible employee. The small employer carrier or ODS shall provide the same health insurance coverage to each employee and dependent.    b.    Except as provided in Iowa Code section 513B.10(4) (with respect to exclusions for preexisting conditions), the choice among insurance coverages may not be limited, restricted or conditioned upon the risk characteristics of the employees or their dependents.    71.7(2)       a.    Except as provided in this subrule, a small employer carrier or ODS may not issue health insurance coverage to a small employer unless the health insurance coverage covers all eligible employees and all dependents of eligible employees.    b.    A small employer carrier or ODS may issue health insurance coverage to a small employer that excludes an eligible employee or the dependent of an eligible employee only if:    (1)   The excluded individual has coverage under health insurance coverage or other health coverage arrangement, including that set forth in Iowa Code chapter 514E, that provides coverage similar to or exceeding benefits provided under the basic health insurance coverage;    (2)   The excluded individual does not have a risk characteristic or other attribute that would cause the carrier to make a decision with respect to premiums or eligibility for health insurance coverage that is adverse to the small employer;    (3)   The excluded individual states in a signed waiver that the individual has had coverage under health insurance coverage or other health arrangement, including that set forth in Iowa Code chapter 514E, within the previous six months and reasonably expects to have coverage within the succeeding six months under health insurance coverage or other health arrangement that provides benefits similar to or exceeding benefits provided under the basic health benefit plan.    c.    A small employer carrier or ODS shall require each small employer that applies for coverage, as part of the application process, to provide a complete list of eligible employees and dependents of eligible employees. The small employer carrier or ODS shall require the small employer to provide appropriate supporting documentation in the form of a W-2 Summary Wage and Tax Form and federal or state quarterly withholding statements for the current year and the year immediately preceding the year of application for coverage.    (1)   A small employer carrier or ODS shall secure a waiver, with respect to each eligible employee and each dependent of an eligible employee, declining an offer of coverage under health insurance coverage provided to a small employer. The waiver shall be signed by the eligible employee (on behalf of such employee or the dependent of such employee) and shall certify that the individual who declined coverage was informed of the availability of coverage under the health insurance coverage. The waiver form shall require that the reason for declining coverage isbe stated on the form and shall include a written warning of the penalties imposed on late enrollees. Waivers shall be maintained by the small employer carrier or ODS for a period of six years.    (2)   A small employer carrier or ODS shall obtain, with respect to each individual who submits a waiver under 71.7(2)“c”(1), information sufficient to establish that the waiver is permitted under 71.7(2)“b.”    d.        (1)   A small employer carrier or ODS shall not issue coverage to a small employer if the carrier is unable to obtain the list required under 71.7(2)“c,” a waiver required under 71.7(2)“c”(1) or the information required under 71.7(2)“c”(2) in circumstances set forth in this subrule.    (2)   1. A small employer carrier or ODS shall not offer coverage to a small employer if the carrier or ODS, or a producer for such carrier or ODS, has reason to believe that the small employer has induced or pressured an eligible employee (or dependent of an eligible employee) to decline coverage due to the individual’s risk characteristics.2. A producer shall notify a small employer carrier or ODS, prior to submitting an application for coverage with the carrier or ODS on behalf of a small employer, of any circumstances that would indicate that the small employer has induced or pressured an eligible employee (or dependent of an eligible employee) to decline coverage due to the individual’s risk characteristics.    71.7(3)       a.    New entrants to a small employer group shall be offered an opportunity to enroll in the health insurance coverage currently held by such group. A new entrant thatwho does not exercise the opportunity to enroll in the health insurance coverage within the period provided by the small employer carrier or ODS may be treated as a late enrollee by the carrier or ODS, provided that the period provided to enroll in the health insurance coverage extends at least 30 days after the date the new entrant is notified of the opportunity to enroll. If a small employer carrier or ODS has offered more than one health insurance coverage to a small employer group pursuant to 71.7(1)“b,” the new entrant shall be offered the same choice of health insurance coverages as the other members of the group.    b.    A small employer carrier or ODS shall not apply a waiting period, elimination period or other similar limitation of coverage (other than an exclusion for preexisting medical conditions consistent with Iowa Code section 513B.10(4)), with respect to a new entrant that is longer than 60 days. This subrule does not affect an employer’s ability to determine an employee’s probationary period of work prior to the commencement of benefits.    c.    New entrants to a group shall be accepted for coverage by the small employer carrier or ODS without any restrictions or limitations on coverage related to the risk characteristics of the employees or their dependents except that a carrier may exclude coverage for preexisting medical conditions consistent with the provisions provided inIowa Code section 513B.10.    d.    A small employer carrier or ODS may assess a risk load to the premium rate associated with a new entrant consistent with the requirements of Iowa Code section 513B.4. The risk load shall be the same risk load charged to the small employer group immediately prior to acceptance of the new entrant into the group.    71.7(4)       a.    Opportunity to enroll.    (1)   In the case of an eligible employee (or dependent of an eligible employee) who, prior to July 1, 1993, was excluded from coverage or denied coverage by a small employer carrier or ODS in the process of providing health insurance coverage to an eligible small employer (as defined in Iowa Code section 513B.2(16)), the small employer carrier or ODS shall provide an opportunity for the eligible employee (or dependent of such eligible employee) to enroll in health insurance coverage currently held by the small employer.    (2)   A small employer carrier or ODS may require an individual who requests enrollment under this subrule to sign a statement indicating that such individual sought coverage under the group contract (other than as a late enrollee) and that the coverage was not offered to the individual.    b.    The opportunity to enroll shall meet the following requirements:    b.        (1)   The opportunity to enroll shall begin October 1, 1993, and extend for a period of at least three months.    (2)   Eligible employees and dependents of eligible employees who are provided an opportunity to enroll pursuant to this subrule shall be treated as new entrants. Premium rates related to such individuals shall be set in accordance with 71.7(3).    (3)   The terms of coverage offered to an individual described in subparagraph “a”(1) may exclude coverage for preexisting medical conditions if the health insurance coverage currently held by the small employer contains such an exclusion, provided that the exclusion period shall be reduced by the number of days between the date the individual was excluded or denied coverage and the date coverage is provided to the individual pursuant to this subrule.    (4)   A small employer carrier or ODS shall provide written notice at least 45 days prior to the opportunity to enroll provided in 71.7(4)“a”(1) to each small employer insured under health insurance coverage offered by such carrier or ODS. The notice shall clearly describe the rights granted under this subrule to employees and dependents previously excluded or denied coverage and the process for enrollment of such individuals in the employer’s health insurance coverage.

        ITEM 26.    Amend rule 191—71.9(513B) as follows:

    191—71.9(513B) Application to reenter state.      71.9(1)   A carrier or ODS prohibited from writing coverage for small employers in this state pursuant to Iowa Code section 513B.5(2) may not resume offering health insurance coverage to small employers in this state until the carrier or ODS has made a petition to the commissioner or director to be reinstated as a small employer carrier or ODS and the petition has been approved by the commissioner or director. In reviewing a petition, the commissioner or director may ask for such information and assurances as the commissioner or director finds reasonable and appropriate.    71.9(2)   In the case of a small employer carrier or ODS doing business in only one established geographic service area of the state, if the small employer carrier or ODS elects to nonrenew health insurance coverage underIowa Code section 513B.5, the small employer carrier or ODS shall be prohibited from offering health insurance coverages to small employers in any other geographic area of the state without the prior approval of the commissioner or director. In considering whether to grant approval, the commissioner or director may ask for such information and assurances as the commissioner or director finds reasonable and appropriate.

        ITEM 27.    Amend rule 191—71.11(513B) as follows:

    191—71.11(513B) Rules related to fair marketing.      71.11(1)       a.    A small employer carrier or ODS shall actively market health insurance coverages including one basic and one standard health benefit plan to small employers in this state. A small employer carrier or ODS may not suspend the marketing or issuance of the basic and standard health benefit plans unless the carrier or ODS has good cause and has received the prior approval of the commissioner or director.    b.    In marketing the basic and standard health benefit plans to small employers, a small employer carrier or ODS shall use at least the same sources and methods of distribution that it uses to market other health insurance coverages to small employers.    71.11(2)       a.    A small employer carrier or ODS, in accordance with the provisions of Iowa Code section 513B.10, shall accept every small employer that applies for health insurance coverage from the small employer carrier or ODS and shall accept every eligible individual who applies for enrollment. The offer shall be in writing and shall include at least the following information:    (1)   A general description of the benefits contained in the basic and standard health benefit plans and any other health insurance coverage being offered to the small employer, and    (2)   Information describing how the small employer may enroll in the plans.The offer may be provided directly to the small employer or delivered through a producer.    b.        (1)   A small employer carrier or ODS shall provide a price quote to a small employer (directly or through an authorized producer) within ten working days of receiving a request for a quote and other information as necessary to provide the quote. A small employer carrier or ODS shall notify a small employer (directly or through an authorized producer) of any additional information needed by the small employer carrier or ODS to provide the quote within five working days of receiving a request for a price quote.    (2)   A small employer carrier or ODS shall not apply more stringent or detailed requirements related to the application process for the basic and standard health benefit plans than applied for other health insurance coverage offered by the carrier or ODS.    c.    Rescinded IAB 7/16/97, effective 7/1/97.    71.11(3)   A small employer carrier or ODS shall establish and maintain a toll-free telephone service to provide information to small employers regarding the availability of health insurance coverages in this state. The service shall provide information to callers regarding application for coverage from the carrier or ODS. The information may include the names and telephone numbers of producers located in geographic proximity to the caller or such other information reasonably designed to assist the caller to locate an authorized producer or to otherwise apply for coverage.    71.11(4)   The small group carrier or ODS shall not require a small employer to join or contribute to any association or group as a condition of being accepted for coverage by the small employer carrier or ODS except, if membership in an association or other group is a requirement for accepting a small employer into health insurance coverage, a small employer carrier or ODS may apply such requirement.    71.11(5)   A small employer carrier or ODS may not require, as a condition to the offer or sale of health insurance coverage to a small employer, that the small employer purchase or qualify for any other insurance product or service.    71.11(6)       a.    Carriers offering individual and group health insurance coverages in this state shall be responsible for determining whether the plans are subject to the requirements of Iowa Code chapter 513B and this chapter. Carriers or ODSs shall elicit the following information from applicants for such plans at the time of application:    (1)   Whether or not any portion of the premium will be paid by or on behalf of a small employer, either directly or through wage adjustments or other means of reimbursement; and    (2)   Whether or not the prospective policyholder, certificate holder or any prospective insured individual intends to treat the health insurance coverage as part of a plan or program under Section 162 (other than Section 162(1)), Section 125 or Section 106 of the United States Internal Revenue Code.    b.    If a small employer carrier or ODS fails to comply with paragraph “a,” the small employer carrier or ODS shall be deemed on notice regarding any information that could reasonably have been attained if the small employer carrier had complied with paragraph “a.”    71.11(7)       a.    A small employer carrier or ODS shall annually file the following information with the commissioner related to health insurance coverages issued by the small employer carrier or ODS to small employers in this state:    (1)   The number of small employers that were issued health insurance coverages in the previous calendar year (separated as to newly issued plans and renewals);    (2)   The number of small employers that were issued the basic health benefit plan and the standard health benefit plan in the previous calendar year (separated as to newly issued plans and renewals and as to class of business);    (3)   The number of small employer health insurance coverages in force in each county (or by ZIP code) of the state as of December 31 of the previous calendar year;    (4)   The number of small employer health insurance coverages that were voluntarily not renewed by small employers in the previous calendar year;    (5)   The number of small employer health insurance coverages that were terminated or nonrenewed (for reasons other than nonpayment of premium) by the carrier in the previous calendar year; and    (6)   The number of small employer health insurance coverages that were issued to small employers that were uninsured for at least the three months prior to issue.    b.    The information described in paragraph “a” shall be filed no later than March 15 of each year.    71.11(8)   A small group carrier shall not price the basic and standard benefit plans nor set the commissions in such a way to make the plans unattractive for a producer to market. A small employer carrier shall provide reasonable compensation, as provided in the plan of operation, to a producer, if any, for the sale of a basic or standard health benefit plan.    71.11(9)   A small employer carrier shall establish commission payments for the sale of basic and standard health benefit plans within each class of business at no less than 75 percent of the level of commission payments assessed on other small group health products.

        ITEM 28.    Amend rule 191—71.12(513B) as follows:

    191—71.12(513B) Status of carriers as small employer carriers.      71.12(1)   Subject to 71.12(2), a carrier or ODS shall not offer health insurance coverages to small employers or continue to provide coverage under health insurance coverages previously issued to small employers in this state unless the carrier or ODS has made a filing with the commissioner or director that the carrier or ODS intends to operate as a small employer carrier or ODS in this state under the terms of this chapter.    71.12(2)       a.    If a carrier or ODS does not intend to operate as a small employer carrier or ODS in this state, the carrier or ODS may continue to provide coverage under health insurance coverages previously issued to small employers in this state only if the carrier or ODS complies with the following provisions:    (1)   The carrier or ODS complies with the requirements of Iowa Code chapter 513B (other thanIowa Code sections 513B.11 to 513B.13) with respect to each of the health insurance coverages previously issued to small employers by the carrier or ODS.    (2)   The carrier or ODS provides coverage to each new entrant to health insurance coverage previously issued to a small employer by the carrier or ODS. The provisions of Iowa Code chapter 513B (other thanIowa Code sections 513B.11 to 513B.13) and this chapter shall apply to the coverage issued new entrants.    (3)   The carrier or ODS complies with the requirements ofIowa Code section513B.17A, and rule191—71.13(513B), as they apply to small employers whose coverage has been terminated by the carrier or ODS, and to individuals and small employers whose coverage has been limited or restricted by the carrier or ODS.    b.    A carrier or ODS that continues to provide coverage pursuant to this subrule shall not be eligible to participate in the reinsurance program established under Iowa Code section 513B.11.    71.12(3)   If a carrier does not intend to operate as a small employer carrier in this state, the carrier shall be precluded from operating as a small employer carrier in this state (except as provided for in 71.12(2)) for a period of five years from the date of this chapter. Upon a written request from such a carrier, the commissioner may reduce the period provided for in the previous sentence if the commissioner finds that permitting the carrier to operate as a small employer carrier would be in the best interests of the small employers in the state.

        ITEM 29.    Amend rule 191—71.13(513B) as follows:

    191—71.13(513B) Restoration of coverage.      71.13(1)       a.    Except as provided in 71.13(1)“b,” a small employer carrier or ODS shall, as a condition of continuing to transact business in this state with small employers, offer to provide health insurance coverage as described in 71.13(3) to any small employer carrier or ODS after January 1, 1993, unless the carrier’s or ODS’s termination is pursuant to Iowa Code section 513B.5.    b.    The offer required under 71.13(1)“a” shall not be required with respect to health insurance coverage that was not renewed if:    (1)   The health insurance coverage was not renewed for reasons permitted in Iowa Code section 513B.5(1), or    (2)   The nonrenewal was a result of the small employer voluntarily electing coverage under different health insurance coverage.    71.13(2)   The offer made under 71.13(1) shall occur not later than 60 days after July 2, 1993. A small employer shall be given at least 60 days to accept an offer made pursuant to 71.13(1).    71.13(3)   A health insurance coverage provided to a terminated small employer pursuant to 71.13(1) shall meet the following conditions:    a.    The health insurance coverage shall contain benefits that are identical to the benefits in the health insurance coverage that was terminated or nonrenewed.    b.    The health insurance coverage shall not be subject to any waiting periods (including exclusion periods for preexisting conditions) or other limitations on coverage that exceed those contained in the health insurance coverage that was terminated or nonrenewed. In applying such exclusions or limitations, the health insurance coverage shall be treated as if it were continuously in force from the date it was originally issued to the date that it is restored pursuant to 71.13(513B).    c.    The health insurance coverage shall not be subject to any provisions that restrict or exclude coverage or benefits for specific diseases, medical conditions or services otherwise covered by the plan.    d.    The health insurance coverage shall provide coverage to all employees who are eligible employees as of the date the plan is restored. The carrier or ODS shall offer coverage to each dependent of such eligible employees.    e.    The premium rate for the health insurance coverage shall be no more than the premium rate charged to the small employer on the date the health insurance coverage was terminated or nonrenewed provided that, if the number or case characteristics of the eligible employees (or their dependents) of the small employer has changed between the date the health insurance coverage was terminated or nonrenewed and the date that it is restored, the carrier or ODS may adjust the premium rates to reflect any changes in case characteristics of the small employer. If the carrier or ODS has increased premium rates for other similar groups with similar coverage to reflect general increases in health care costs and utilization, the premium rate may be further adjusted to reflect the lowest such increase given to a similar group. The premium rate for the health insurance coverage may not be increased to reflect any changes in risk characteristics of the small employer group until one year after the date the health insurance coverage is restored. Any such increase shall be subject to the provisions of Iowa Code section 513B.4.    f.    The health insurance coverage shall not be eligible to be reinsured under the provisions of Iowa Code section 513B.12, except that the carrier or ODS may reinsure new entrants to the health insurance coverage who enroll after the restoration of coverage.

        ITEM 30.    Amend rule 191—71.15(513B) as follows:

    191—71.15(513B) Methods of counting creditable coverage.      71.15(1)   For purposes of reducing any preexisting condition exclusion period, a group health plan, a carrier, or ODSplan or a carrier offering group health insurance coverage shall determine the amount of an individual’s creditable coverage by using the standard method described in subrule 71.15(2), except that the plan, carrier, or ODSplan or carrier may use the alternative method under subrule 71.15(3) with respect to any or all of the categories of benefits described under paragraph 71.15(3)“b.”    71.15(2)   Under the standard method, a group health plan,plan and a health insurance carrier, and an ODScarrier offering group health insurance coverage shall determine the amount of creditable coverage without regard to the specific benefits included in the coverage.    a.    For purposes of reducing the preexisting condition exclusion period, a group health plan,plan or a health insurance carrier, or ODScarrier offering group health insurance coverage shall determine the amount of creditable coverage by counting all the days that the individual has under one or more types of creditable coverage. If on a particular day, an individual has creditable coverage from more than one source, all the creditable coverage on that day is counted as one day. Further, any days in a waiting period for a plan or policy are not creditable coverage under the plan or policy.    b.    Days of creditable coverage that occur before a significant break in coverage are not required to be counted.    c.    Notwithstanding any other provision of paragraph 71.15(2)“b,” for purposes of reducing a preexisting condition exclusion period, a group health plan,plan and a health insurance carrier, and an ODScarrier offering group health insurance coverage may determine the amount of creditable coverage in any other manner that is at least as favorable to the individual as the method set forth in paragraph 71.15(2)“b.”    71.15(3)   Under the alternative method, a group health plan,plan or a health insurance carrier, or an ODScarrier offering group health insurance coverage shall determine the amount of creditable coverage based on coverage within any category of benefits described in subparagraph 71.15(3)“b”(2) and not based on coverage. The plan may apply a different preexisting condition exclusion period with respect to each category and may apply a different preexisting condition exclusion period for benefits that are not within any category. The creditable coverage determined for a category of benefits applies only for purposes of reducing the preexisting condition exclusion period with respect to that category. An individual’s creditable coverage for benefits that are not within any category for which the alternative method is being used is determined under the standard method of paragraph 71.15(3)“a.”    a.    A plan, carrier, or ODSplan or carrier using the alternative method is required to apply it uniformly to all participants and beneficiaries in the plan or policy. The use of the alternative method must be set forth in the plan.    b.    The alternative method for counting creditable coverage may be used for coverage for any of the following categories of benefits:    (1)   Mental health.    (2)   Substance abuse treatment.    (3)   Prescription drugs.    (4)   Dental care.    (5)   Vision care.    c.    If the alternative method is used, the plan is required to:    (1)   State prominently that the plan is using the alternative method of counting creditable coverage in disclosure statements concerning the plan, and state this to each enrollee at the time of enrollment under the plan;    (2)   Include in these statements a description of the effect of using the alternative method, including an identification of the category’s uses; and    (3)   Under the alternative method, the group health plan, carrier, or ODSplan or carrier counts creditable coverage within a category if any level of benefits is provided within the category.

        ITEM 31.    Amend rule 191—71.16(513B) as follows:

    191—71.16(513B) Certificates of creditable coverage.      71.16(1)   Group health plans, carriers, and ODSsplans or carriers shall issue certificates of creditable coverage to persons losing coverage. A group health plan, carrier, or ODSplan or carrier required to provide a certificate under this rule for an individual is deemed to have satisfied the certification requirements for that individual if another party provides the certificate, but only to the extent that information relating to the individual’s creditable coverage and waiting or affiliation period is provided by the other party. Certificates shall be issued within a reasonable amount of time following termination to employees and dependents:    a.    Automatically upon the termination of an individual’s group coverage;    b.    Automatically upon the termination of COBRA coverage;    c.    Upon request within 24 months after coverage ends.    71.16(2)   Certificates in writing. Certificates of coverage must be in writing unless all of the following conditions are met:    a.    The individual requesting the certificate is not entitled to receive a certificate;    b.    The individual requests that the certificate be sent to another plan or carrier or ODS;    c.    The plan, carrier, or ODSplan or carrier receiving the certificate agrees to accept the information through means other than a written certificate;    d.    The plan, carrier, or ODSplan or carrier receiving the certificate receives the certificate within a reasonable amount of time.    71.16(3)   Required information. The certificate shall include the following information:    a.    The date the certificate is issued;    b.    The name of the group plan providing coverage;    c.    The name of the employee or dependent to whom the certificate applies, other relevant identifying information, and the name of the employee if the certificate is for a dependent;    d.    The plan administrator’s name, address and telephone number;    e.    A telephone number to call for further information if different from above;    f.    Either a statement that the person has at least 18 months’ creditable coverage without a significant break of coverage or the date any waiting period and creditable coverage began;    g.    The date creditable coverage ended or an indication that the coverage is in force.    71.16(4)   Family information. Information for families may be combined on one certificate. Any differences in creditable coverages shall be clearly delineated.    71.16(5)   Dependent coverage transition rule. A group health plan or carrier or ODS that does not maintain dependent data is deemed to have satisfied the requirement to issue dependent certificates by naming the employee and specifying that the coverage on the certificate is for dependent coverage.    71.16(6)   Delivering certificates. The certificate shall be given to the individual, plan or carrier or ODS requesting the certificate. The certificates may be sent by first-class mail. When a dependent’s last-known address differs from the employee’s last-known address, a separate certificate shall be provided to the dependent at the dependent’s last-known address. Separate certificates may be mailed together to the same location.    71.16(7)   A group health plan, carrier, or ODSplan or carrier shall establish a procedure for individuals to request and receive certificates.    71.16(8)   A certificate is not required to be furnished until the group health plan, carrier, or ODSplan or carrier knows or should have known that dependent’s coverage terminated.    71.16(9)   Demonstrating creditable coverage. An individual has the right to demonstrate creditable coverage, waiting periods, and affiliation periods when the accuracy of the certificate is contested or a certificate is unavailable. A group health plan, carrier, or ODSplan or carrier shall consider information obtained by it or presented on behalf of an individual to determine whether the individual has creditable coverage.

        ITEM 32.    Amend rule 191—71.17(513B) as follows:

    191—71.17(513B) Notification requirements.      71.17(1)   A group health plan, carrier, or ODSplan or carrier shall provide written notice to the employee and dependents of:    a.    The existence of any preexisting condition exclusions.    b.    The length of time to which the exclusions will apply.    c.    The right of the employee or dependent to appeal a decision to impose a preexisting condition exclusion.    d.    The right of the person to demonstrate creditable coverage including:    (1)   The right of the person to request a certificate from a prior group health plan, carrier, or ODSplan or carrier;    (2)   A statement that the current group health plan, carrier, or ODSplan or carrier will assist in obtaining the certificate;    (3)   That the group health plan, carrier, or ODSplan or carrier will use the alternative method of counting creditable coverage; and    (4)   Special enrollment rights when an employee declines coverage for the employee or dependents.    71.17(2)   A group health plan, carrier, or ODSplan or carrier shall provide written notice to the employee and dependents of the modification of a prior creditable coverage decision when the group health plan, carrier, or ODSplan or carrier subsequently determines either no or less creditable coverage existed provided that the group health plan, carrier, or ODSplan or carrier acts according to its initial determination until the final determination is made.

        ITEM 33.    Amend rule 191—71.18(513B) as follows:

    191—71.18(513B) Special enrollments.      71.18(1)   A carrier or organized delivery system shall permit individuals to enroll for coverage under terms of a health benefit plan, without regard to other enrollment dates permitted under the group health plan, if an eligible employee requests enrollment or, if the group health plan makes coverage available to dependents, on behalf ofa dependent who is eligible but not enrolled under the group health plan, during the special enrollment period, which shall be 30 days following an event described in subrules 71.18(2) and 71.18(3) with respect to the individual for whom enrollment is requested. A carrier or organized delivery system may impose enrollment requirements that are otherwise applicable under terms of the group health plan to individuals requesting immediate enrollment.    71.18(2)   An individual, who previously had other coverage for medical care and for whom an eligible employee declined coverage under the group health plan, may be enrolled during a special enrollment period if the individual has lost the other coverage for medical care and:    a.    If required by the group health plan, the eligible employee stated in writing when declining the coverage, after being given a notice of the requirement form, and the consequences of failure to submit a written statement that coverage was declined because the individual had coverage for medical care under another group health plan or otherwise; and    b.    When enrollment was declined for the individual:    (1)   The individual had coverage other than under a COBRA continuation provision and the coverage has been exhausted; or    (2)   The individual had coverage other than under a COBRA continuation provision and the coverage has been terminated due to loss of eligibility for the coverage, including loss of coverage as a result of legal separation, divorce, death, termination of employment, reduction in the number of hours of employment and any loss of eligibility after a period that is measured by reference to any of the foregoing, or termination of employer contributions toward the other coverage.    c.    For purposes of this subparagraph 71.18(2)“b”(2):    (1)   Loss of eligibility for the coverages does not include loss of eligibility due to the eligible employee’s or dependent’s failure to make timely premium payments or termination of coverage for cause such as making a fraudulent claim or intentional misrepresentation of material fact in connection with the group health plan; and    (2)   Employer contributions include contributions by any current or former employer of the individual or another person that was contributing to coverage for the individual.    (3)   Exhaustion of COBRA continuation coverage means that an individual’s COBRA continuation coverage ceases for any reason other than either failure of the individual to pay premiums on a timely basis, or for cause, such as making a fraudulent claim or an intentional misrepresentation of a material fact in connection with the plan. An individual is considered to have exhausted COBRA continuation coverage if the coverage ceases.    71.18(3)   If the eligible employee has previously declined enrollment under the group health plan but acquires a dependent through marriage, birth, adoption or placement for adoption, the eligible employee or dependent may be enrolled during the special enrollment period with respect to the individual.    71.18(4)   Enrollment of the eligible employee or dependent is effective not later than the first day of the calendar month or, for a newborn or adopted child, on the date of birth, adoption, or placement for adoption.

        ITEM 34.    Amend rule 191—71.19(513B) as follows:

    191—71.19(513B) Disclosure requirements.  All carriers and ODSs shall include in contracts and evidence of coverage forms a statement disclosing the existence of any drug formularies. Upon request, a carrier or ODS offering health insurance coverage that includes a prescription drug formulary shall inform enrollees of the coverage, and prospective enrollees of the coverage during any open enrollment period, whether a prescription drug specified in the request is included in such formulary.All carriers and ODSs shall also disclose the existence of any contractual arrangements providing rebates received by them for prescription drugs or durable medical equipment. Durable medical equipment means equipment that can stand repeated use and is primarily and customarily used to serve a medical purpose and is generally not useful to a person who is not sick or injured or used by other family members and is appropriate for home use for the purpose of improving bodily functions or preventing further deterioration of the medical condition caused by sickness or injury.

        ITEM 35.    Amend rule 191—71.21(514C) as follows:

    191—71.21(514C) Emergency services.  Benefits shall be available by the carrier for inpatient and outpatient emergency services. A physician and sufficient other licensed and ancillary personnel shall be readily available at all times to render such services. Since carriers may not contract with every emergency care provider in an area, carriers shall make every effort to inform members of participating providers.    71.21(1)   The term “emergency services” means, with respect to an individual enrolled with an organization, covered inpatient and outpatient services that are furnished by a provider who is qualified to furnish the services that are needed to evaluate or stabilize an emergency medical condition.    71.21(2)   The term “emergency medical condition” means a medical condition manifesting itself by symptoms of sufficient severity, including but not limited to severe pain, that an ordinarily prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention to result in one of the following:    a.    Placing the health of the individual or, with respect to a pregnant woman, the health of the woman and her unborn child in serious jeopardy;    b.    Serious impairment to bodily function; or    c.    Serious dysfunction of any bodily organ or part.    71.21(3)   Reimbursement to a provider of “emergency services” shall not be denied by any carrier or ODS without that organization’s review of the patient’s medical history, presenting symptoms, and admitting or initial as well as final diagnosis, submitted by the provider, in determining whether, by definition, emergency services could reasonably have been expected to be provided. Reimbursement for emergency services shall not be denied solely on the grounds that services were performed by a noncontracted provider. If reimbursement for emergency services is denied, the enrollee may file a complaint. Upon denial of reimbursement for emergency services, the carrier shall notify the enrollee and the provider that they may register a complaint with the commissioner of insurance.

        ITEM 36.    Amend rule 191—71.23(513B) as follows:

    191—71.23(513B) Reconstructive surgery.      71.23(1)   A carrier or organized delivery system that provides medical and surgical benefits with respect to a mastectomy shall provide the following coverage in the event an enrollee receives benefits in connection with a mastectomy and elects breast reconstruction:    a.    Reconstruction of the breast on which the mastectomy has been performed;    b.    Surgery and reconstruction of the other breast to produce a symmetrical appearance; and    c.    Prostheses and coverage of physical complications at all stages of a mastectomy including lymphedemas.    71.23(2)   The benefits under this rule shall be provided in a manner determined in consultation with the attending physician and the enrollee. The coverage may be subject to annual deductibles and coinsurance provisions that are consistent with other benefits under the plan or coverage.    71.23(3)   Written notice of the availability of coverage in this rule shall be provided to the enrollee upon enrollment and then annually.    71.23(4)   A carrier or organized delivery system shall not deny an enrollee eligibility or continued eligibility to enroll or renew coverage under the terms of the health insurance solely for the purpose of avoiding the requirements of this rule. A carrier or organized delivery system shall not penalize, reduce or limit the reimbursement of an attending provider or induce the provider to provide care in a manner inconsistent with this rule.       This rule is intended to implement Public Law 105-277.

        ITEM 37.    Amend rule 191—71.24(514C) as follows:

    191—71.24(514C) Contraceptive coverage.      71.24(1)   A carrier or organized delivery system that provides benefits for outpatient prescription drugs or devices shall provide benefits for prescription contraceptive drugs or prescription contraceptive devices which prevent conception and are approved by the United States Food and Drug Administration or generic equivalents approved as substitutable by the United States Food and Drug Administration.    71.24(2)   A carrier or organized delivery system is not required to provide benefits for over-the-counter contraceptive drugs or contraceptive devices that do not require a prescription for purchase.    71.24(3)   A contraceptive drug or contraceptive device does not include surgical services intended for sterilization, including, but not limited to, tubal ligation or vasectomy.    71.24(4)   A carrier or organized delivery system shall be required to provide benefits for services related to outpatient contraceptive services for the purpose of preventing conception if the policy or contract provides benefits for other outpatient services provided by a health care professional.    71.24(5)   If a carrier or organized delivery system does not provide benefits for a routine physical examination, the carrier or organized delivery system is not required to provide benefits for a routine physical examination provided in the course of prescribing a contraceptive drug or contraceptive device.       This rule is intended to implement 2000 Iowa Acts, Senate File 2126Iowa Code section 514C.19.

        ITEM 38.    Amend rule 191—73.3(75GA,ch158), definition of “Carrier,” as follows:        "Carrier" means any entity that provides health benefit plans in this state. For purposes of this chapter, carrier includes an insurance company, a hospital or medical service corporation, a fraternal benefit society, a health maintenance organization, an organized delivery system, and any other entity providing a plan of health insurance or health benefits subject to state regulation.

        ITEM 39.    Rescind the definition of “Organized delivery system” in rule 191—73.3(75GA,ch158).

        ITEM 40.    Amend rule 191—73.22(75GA,ch158) as follows:

    191—73.22(75GA,ch158) Grounds for denial, nonrenewal, suspension or revocation of certificate.  The following constitute grounds for denial, nonrenewal, suspension or revocation of the HIPC’s certificate following notice and an opportunity for hearing:
    1. Failure to comply with any provisions of the rules of this chapter;
    2. Failure to comply with any lawful order of the commissioner;
    3. Committing an unfair or deceptive act or practice as defined in Iowa Code chapter 507B;
    4. Filing any necessary form with the division which contains fraudulent information or omission;
    5. Misappropriation, conversion, illegal withholding, or refusal to pay over upon proper demand any moneys that belong to a person or health care carrier or any organized delivery system otherwise not entitled to the HIPC and that have been entrusted to the HIPC in its fiduciary capacity;
    6. Failure to demonstrate through clear and convincing evidence that it will extend HIPC services to a significant group of buyers not currently being served by a HIPC; or
    7. Failure to demonstrate through clear and convincing evidence that it will reduce the cost, improve the quality, and improve access to or choice of affordable health insurance or health care services.
    In addition, the application for certification to be a HIPC may be denied upon a finding by the commissioner that a sufficient number of HIPCs are licensed within a geographic service area and an additional HIPC would adversely affect existing HIPCs.

        ITEM 41.    Rescind paragraph 74.4(2)"d".

        ITEM 42.    Amend rule 191—75.2(513C), definition of “Risk load,” as follows:        "Risk load" means the percentage above the applicable base premium rate that is charged by a carrier or ODS to an individual to reflect the risk characteristics of such individual.

        ITEM 43.    Rescind the definition of “Organized delivery system” in rule 191—75.2(513C).

        ITEM 44.    Amend rule 191—75.3(513C) as follows:

    191—75.3(513C) Applicability and scope.      75.3(1)   Except as otherwise specifically provided, this chapter shall apply to any individual health benefit plan applied for on or after April 1, 1996.    75.3(2)   Iowa Code chapter 513C and this chapter shall apply to an individual health benefit plan provided to an eligible individual.    75.3(3)   An entity that is not operating as an individual health benefit plan carrier or ODS in this state shall not become subject to the provisions of the Act and this rule solely because an individual that was issued a health benefit plan in another state by that entity becomes a resident of this state.    75.3(4)   This chapter shall not apply to health insurance policies or certificates that are subject to Iowa Code chapter 513B.    75.3(5)   Except for basic or standard health benefit plans, nothing in Iowa Code chapter 513C or this chapter is applicable to underwriting practices, substandard ratings, or the addition of waivers or riders to policies or certificates.

        ITEM 45.    Amend rule 191—75.4(513C) as follows:

    191—75.4(513C) Establishment of blocks of business.  A carrier or ODS shall file with the commissioner the following information with respect to each established block of business, as defined in Iowa Code section 513C.3.
    1. A description of each criterion employed by the carrier or ODS for determining membership in the block of business;
    2. A statement describing the justification for establishing the block as a separate block of business;
    3. A statement disclosing which, if any, health benefit plans are currently available for purchase in the block and any significant limitations related to the purchase of such plans.

        ITEM 46.    Amend rule 191—75.5(513C) as follows:

    191—75.5(513C) Transition for assumptions of business from another carrier or ODS.      75.5(1)   Transfer or assumption of insurance obligation.    a.    A carrier or ODS shall not transfer or assume the entire insurance obligation or risk of a health benefit plan covering a block of business in this state unless the transaction has been approved by the commissioner of the state of domicile of the ceding carrier or ODS.    b.    A carrier domiciled in this state that proposes to assume or cede the entire insurance obligation or risk or one or more blocks of business from another carrier or ODS shall make a filing for approval with the commissioner at least 60 days prior to the date of the proposed assumption. The commissioner may approve the transaction upon a finding that the transaction is in the best interests of the individuals insured under the health benefit plans to be transferred and is consistent with the purposes of Iowa Code chapter 513C and this chapter.    c.    The filing required under paragraph 75.5(1)“b” shall:    (1)   Describe the block of business, including any eligibility requirements, of the ceding carrier or ODS from which the health benefit plans will be ceded;    (2)   Describe whether the assuming carrier or ODS will maintain the assumed health benefit plans as a separate block of business, pursuant tosubrule 75.5(3), or will incorporate them into an existing block of business, pursuant tosubrule 75.5(4). If the assumed health benefit plans will be incorporated into an existing block of business, the filing shall describe the block of business of the assuming carrier into which the health benefit plans will be incorporated;    (3)   Describe whether the health benefit plans being assumed are currently available for purchase by individuals;    (4)   Describe the potential effect of the assumption on the benefits provided by the health benefit plans to be assumed;    (5)   Describe the potential effect of the assumption on the premiums for the health benefit plans to be assumed;    (6)   Describe any other potential material effects of the assumption on the coverage provided to the individuals covered by the health benefit plans to be assumed; and    (7)   Include any other information required by the commissioner.    d.    A carrier or ODS required to make a filing underparagraph 75.5(1)“b” shall also make an informational filing with the commissioner of each state in which there are individual health benefit plans that would be included in the transaction. The informational filing to each state shall be made concurrently with the filing made underparagraph 75.5(1)“b” and shall include at least the information specified insubparagraph 75.5(1)“c”(1) for the individual health benefit plans in that state.    e.    A carrier or ODS shall not transfer or assume the entire insurance obligation or risk of a health benefit plan covering an individual in this state unless it complies with the following provisions:    (1)   The carrier or ODS has provided notice to the commissioner at least 60 days prior to the date of the proposed assumption. The notice shall contain the information specified inparagraph 75.5(1)“c” for the health benefit plans covering individuals in this state.    (2)   If the assumption of a block of business would result in the assuming carrier or ODScarrier’s being out of compliance with the limitations related to premium rates contained in Iowa Code section 513C.5, the assuming carrier shall make a filing with the commissioner pursuant toIowa Code section 513C.5 seeking suspension of the application ofIowa Code section 513C.5.    (3)   An assuming carrier or ODS seeking suspension of the application of Iowa Code section 513C.5 shall not complete the assumption of health benefit plans covering individuals unless the commissioner grants the suspension requested pursuant tosubparagraph 75.5(1)“e”(2).    (4)   Unless a different period is approved by the commissioner, a suspension of the application of Iowa Code section 513C.5 shall, with respect to an assumed block of business, be for no more than 15 months and, with respect to each individual, last only until the anniversary date of such individual’s coverage. With respect to an individual this period may be extended beyond its first anniversary date for a period of up to 12 months if the anniversary date occurs within 3 months of the date of assumption of the block of business.    75.5(2)   Except as provided in subrule 75.5(1), a carrier or ODS shall not cede or assume the entire insurance obligation or risk for a health benefit plan, other than reinsurance, unless the carrier cedes to the assuming carrier the entire block of business that includes such health benefit plan, unless otherwise approved by the commissioner.    75.5(3)   The commissioner may approve a longer period of transition upon application of a carrier or ODS. The application shall be made within 60 days after the date of assumption of the block of business and shall clearly state the justification for a longer transition period.    75.5(4)   Nothing in this rule or in Iowa Code chapter 513C is intended to:    a.    Reduce or diminish any legal or contractual obligation or requirements, including any obligation provided in Iowa Code chapters 521 and 521B, of the ceding or assuming carrier or ODS related to the transaction;    b.    Authorize a carrier or ODS that is not admitted to transact the business of insurance in this state to offer health benefit plans in this state; or    c.    Reduce or diminish the protections related to an assumption reinsurance transaction provided in Iowa Code chapters 521 and 521B or otherwise provided by law.

        ITEM 47.    Amend rule 191—75.8(513C) as follows:

    191—75.8(513C) Disclosure of information.      75.8(1)   General rules. In connection with the offering for sale of a health benefit plan to individuals, each carrier and ODS shall make a reasonable disclosure, as part of its solicitation and sales materials, of the following:    a.    The extent to which premium rates for a specified individual are established or adjusted in part based upon the actual or expected variation in claims costs or the actual or expected variation in health conditions of the individual and the individual’s dependents, if any.    b.    The provisions of such plan concerning the carrier’s and ODS’s ability to change premium rates and the factors, other than claim experience, which affect changes in premium rates.    c.    The provisions of such plan relating to the renewability of policies and contracts.    d.    The provisions of such plan relating to the effect of any preexisting condition provision. The expression “preexisting conditions” shall not be used unless appropriately defined in the policy or contract.    e.    The availability, upon request, of descriptive information about the benefits and premiums available under individual health benefit plans offered by the carrier and ODS for which the individual is qualified. For purposes of Iowa Code section 513C.7, carriers and ODSs will be permitted to exclude from disclosure of plans those plans within the following categories:    (1)   Plans distributed through a separate marketing channel.    (2)   Plans offered through a membership association.    (3)   Plans offered through a trust in which membership is otherwise limited.    (4)   Other plans as reviewed and approved by the commissioner or director.    75.8(2)   Information shall be provided under this rule in a manner determined to be understandable by the average individual and shall be accurate and sufficiently comprehensive to reasonably inform individuals of their rights and obligations under the plan.Nothing in this rule supersedes the requirements for outlines of coverage for individual health insurance policies under IACrule191—36.7(514D).

        ITEM 48.    Amend rule 191—75.9(513C) as follows:

    191—75.9(513C) Standards to ensure fair marketing.      75.9(1)   A carrier or ODS shall make available at least one basic and one standard health benefit plan to eligible individuals in this state.    75.9(2)   The written information described in this subrule may be provided directly to the individual or delivered through an authorized producer:    a.    A carrier or ODS shall not apply more stringent requirements related to the application process for the basic and standard health benefit plans than applied for other health benefit plans offered by the carrier or ODS.    b.    A carrier or ODS shall supply a price quote for basic or standard plans to an eligible individual upon request.    c.    If a carrier or ODS denies coverage under a health benefit plan to an individual on the basis of a risk characteristic, the denial shall be in writing and state with specificity the reasons for the denial subject to any restrictions related to confidentiality of medical information. The denial shall be accompanied by a written explanation of the availability of the basic and standard health benefit plans from the carrier or ODS and may be combined with the notification requirements of Iowa Code chapter 514E. The explanation shall include the following information about the basic and standard benefit plans:    (1)   A general description of the benefits and policy provisions contained in each plan;    (2)   A price quote for each plan; and    (3)   Information describing eligibility and how an eligible individual may enroll in such plans.    75.9(3)   The carrier or ODS shall not require an individual to join or contribute to any association or group as a condition of being accepted for coverage except, if membership in an association or other group is a requirement for accepting an individual into a particular health benefit plan, a carrier or ODS may apply such requirement.    75.9(4)   A carrier or ODS may not require as a condition to the offer or sale of a health benefit plan to an individual that the individual purchase or qualify for any other insurance product or service.    75.9(5)   Carriers and ODSs offering individual or group health benefit plans in this state shall be responsible for determining whether the plans are subject to the requirements of Iowa Code chapter 513C.

        ITEM 49.    Amend subrule 75.10(5), Iowa Individual Products tables, as follows:Iowa Individual ProductsHospital ServicesMANDATED INDEMNITY/ODSMANDATED HMOBASICSTANDARDPPOBASICSTANDARDInOut    InpatientOutpatient60%80%80%60%    60%$400/admit    80%$200/admitProstheses60%80%80%60%60%80%    DME—includingmedical supplies60%80%80%60%60%80%    Ambulance—Emergency60%80%80%60%60%80%Hospice60%80%80%60%60%80%    Home Health and Physician House Calls60%80%80%60%60%80%    AlcoholismSubstance AbuseMANDATED INDEMNITY/ODSMANDATED HMOBASICSTANDARDPPOBASICSTANDARDInOutInpatient—80%(1)80%(1)60%(1)    —80%Outpatient—    80%(1) ($50 max. eligible fee)80%(1)60%(1)—    80%($50 max.eligible fee)    Mental HealthMANDATED INDEMNITY/ODSMANDATED HMOBASICSTANDARDPPOBASICSTANDARDInOutInpatient—80%(1)80%(1)60%(1)    —80%Outpatient—    80%(1)($50 max.eligible fee)    80%(1)($50 max.eligible fee)    60%(1)($50 max.eligible fee)—    80%($50 max.eligible fee)(1)$50,000 Lifetime Max.Iowa Individual ProductsGeneralMANDATED INDEMNITY/ODSMANDATED HMOBASICSTANDARDPPOBASICSTANDARDInOut    Calendar yeardeductibles (S/F)$1,500 x 3$1,000 x 3$1,000 x 3$1,000 x 3    —    —E.R. Copayment————$50 (waived if admitted)$50 (waived if admitted)Coinsurance60%80%80%60%60%80%Annual out-of-pocket max.(1)    $4,800/$14,400    $2,000/$4,000    $2,000/$4,000    $3,000/$6,000    $4,000/$8,000    $2,000/$4,000    LifetimeMaximum$250,000$1,000,000$1,000,000$1,000,000$250,000$1,000,000Pre-existing    513C.7(4)(a)&(b)    513C.7(4)(a)&(b)    513C.7(4)(a)&(b)    513C.7(4)(a)&(b)    513C.7(4)(a)&(b)    513C.7(4)(a)&(b)Rx60%80%80%60%Copayment of > $30 or 25%Copayment of > $20 or 25%TransplantsNone80% 80% 80% None80% (1)Excludes deductibles and copays    PhysicianServicesMANDATED INDEMNITY/ODSMANDATED HMOBASICSTANDARDPPOBASICSTANDARDInOut    Office visitsincluding wellness60%80%    $20 copay100%$40 copay 60%$20 copay per office visit$15 copay per office visitUrgent Care60%80%80%60%60%80%Inpatient60%80%80%60%60%80%Outpatient60%80%80%60%60%80%

        ITEM 50.    Amend rule 191—75.11(513C) as follows:

    191—75.11(513C) Maternity benefit rider.  Every individual insurance carrier and ODS shall offer an optional maternity benefit rider for the basic and standard health benefit plans providing benefits, as any other illness, for a pregnancy and delivery without complications with a 12-month waiting period. Credit toward meeting the waiting period shall be given for prior coverage of a pregnancy without complications provided there was no more than a 63-day break in coverage. A maternity rider offered under this rule shall only be offered when the basic or standard plan is initially purchased. Premiums for the rider shall be calculated based upon generally accepted actuarial principles and shall not be subject to the premium restrictions in Iowa Code subsection 513C.10(6). The earned premiums and paid losses associated with the rider shall not be considered by the Iowa Individual Health Benefit Reinsurance Association for purposes of Iowa Code section 513C.10.

        ITEM 51.    Amend rule 191—75.12(513C) as follows:

    191—75.12(513C) Disclosure requirements.  All carriers and ODSs shall include in contracts and evidence of coverage forms a statement disclosing the existence of any drug formularies. Upon request, a carrier or ODS offering health insurance coverage that includes a prescription drug formulary shall inform enrollees of the coverage, and prospective enrollees of the coverage during any open enrollment period, whether a prescription drug specified in the request is included in such formulary.All carriers and ODSs shall also disclose the existence of any contractual arrangements providing rebates received by them for prescription drugs or durable medical equipment. Durable medical equipment means equipment that can stand repeated use and is primarily and customarily used to serve a medical purpose and is generally not useful to a person who is not sick or injured or used by other family members and is appropriate for home use for the purpose of improving bodily functions or preventing further deterioration of the medical condition caused by sickness or injury.

        ITEM 52.    Amend rule 191—75.17(513C) as follows:

    191—75.17(513C) Reconstructive surgery.      75.17(1)   A carrier or organized delivery system that provides medical and surgical benefits with respect to a mastectomy shall provide the following coverage in the event an enrollee receives benefits in connection with a mastectomy and elects breast reconstruction:    a.    Reconstruction of the breast on which the mastectomy has been performed;    b.    Surgery and reconstruction of the other breast to produce a symmetrical appearance; and    c.    Prostheses and coverage of physical complications at all stages of a mastectomy including lymphedemas.    75.17(2)   The benefits under this rule shall be provided in a manner determined in consultation with the attending physician and the enrollee. The coverage may be subject to annual deductibles and coinsurance provisions that are consistent with other benefits under the plan or coverage.    75.17(3)   Written notice of the availability of coverage in this rule shall be provided to the enrollee upon enrollment and then annually.    75.17(4)   A carrier or organized delivery system shall not deny an enrollee eligibility or continued eligibility to enroll or renew coverage under the terms of the health insurance solely for the purpose of avoiding the requirements of this rule. A carrier or organized delivery system shall not penalize, reduce or limit the reimbursement of an attending provider or induce the provider to provide care in a manner inconsistent with this rule.       This rule is intended to implement Public Law 105-277.

        ITEM 53.    Amend rule 191—75.18(514C) as follows:

    191—75.18(514C) Contraceptive coverage.      75.18(1)   A carrier or organized delivery system that provides benefits for outpatient prescription drugs or devices shall provide benefits for prescription contraceptive drugs or prescription contraceptive devices which prevent conception and are approved by the United States Food and Drug Administration or generic equivalents approved as substitutable by the United States Food and Drug Administration.    75.18(2)   A carrier or organized delivery system is not required to offer benefits for over-the-counter contraceptive drugs or contraceptive devices that do not require a prescription for purchase.    75.18(3)   A contraceptive drug or contraceptive device does not include surgical services intended for sterilization, including, but not limited to, tubal ligation or vasectomy.    75.18(4)   A carrier or organized delivery system shall make available benefits for services related to outpatient contraceptive services for the purpose of preventing conception if the policy or contract provides benefits for other outpatient services provided by a health care professional.    75.18(5)   If a carrier or organized delivery system does not provide benefits for a routine physical examination, the carrier or organized delivery system is not required to provide benefits for a routine physical examination provided in the course of prescribing a contraceptive drug or contraceptive device.       This rule is intended to implement 2000 Iowa Acts, Senate File 2126Iowa Code chapter 514C.

        ITEM 54.    Amend rule 191—78.2(514L), definition of “Provider of third-party payment or prepayment of prescription drug expenses,” as follows:        "Provider of third-party payment or prepayment of prescription drug expenses" "provider" means a provider of an individual or group policy of accident or health insurance or an individual or group hospital or health care service contract issued pursuant to Iowa Code chapter 509, 514 or 514A, a provider of a plan established pursuant to Iowa Code chapter 509A for public employees, a provider of an individual or group health maintenance organization contract issued and regulated under Iowa Code chapter 514B, a provider of an organized delivery system contract regulated under rules adopted by the director of public health, a provider of a preferred provider contract issued pursuant to Iowa Code chapter 514F, a provider of a self-insured multiple employer welfare arrangement, and any other entity providing health insurance or health benefits which provide for payment or prepayment of prescription drug expenses coverage subject to state insurance regulation.    [Filed 2/22/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3683CInsurance Division[191]Adopted and Filed

    Rule making related to long-term care insurance

        The Insurance Division hereby amends Chapter 39, “Long-Term Care Insurance,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 514G.11.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 514G as amended by 2017 Iowa Acts, House File 626.Purpose and Summary    Chapter 39 establishes standards for creating, promoting, educating, and selling long-term care insurance in a way that promotes innovation while identifying ways to protect the public from unfair and deceptive trade practices. These amendments implement 2017 Iowa Acts, House File 626, which rescinded the consumer filing fee for an insured’s request for an independent review of a benefit trigger determination related to long-term care insurance.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 17, 2018, as ARC 3570C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Insurance Commissioner on February 21, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    The amendments are subject to the Division’s general waiver provisions of rules 191—4.21(17A) through 191—4.36(17A). Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 191—39.45(514G) as follows:

    191—39.45(514G) Notice of internal appeal decision and right to independent review.  Upon the conclusion of the internal appeal mechanism specified in 2008 Iowa Acts, House File 2694, section 10Iowa Code section 514G.109(2), the notice required in 2008 Iowa Acts, House File 2694, section 10,Iowa Code section 514G.110(2)“b” and “c” shall contain the following information:    39.45(1)   A description of additional internal appeal rights, if any, offered by the insurer.    39.45(2)   A description of how the insured can request independent review of the benefit trigger determination. Such description must specify the following:    a.    The insured must submit a written request within 60 days of the insured’s receiving written notice of the insurer’s internal appeal decision;    b.    The request must be made to the Iowa Insurance Division, 330 Maple StreetTwo Ruan Center, Fourth Floor, 601 Locust Street, Des Moines, Iowa 5031950309-3738;    c.    A copy of the insurer’s benefit trigger determination letter must accompany the written request for an independent review;.    d.    A $25 filing fee is required unless the insured is requesting that the fee be waived. The check should be made payable to the Iowa Insurance Division. If a waiver is requested, the request shall include an explanation for the insured’s request that the fee be waived.

        ITEM 2.    Amend rule 191—39.46(514G) as follows:

    191—39.46(514G) Independent review request.  The insured shall send a copy of the insurer’s notice explaining why the benefit trigger has not been met, with the insured’s request for an independent review, to the insurance commissioner within 60 days of receipt of the benefit trigger determination. The notice shall be sent to the commissioner at the Iowa Insurance Division, 330 Maple StreetTwo Ruan Center, Fourth Floor, 601 Locust Street, Des Moines, Iowa 5031950309-3738.    39.46(2)   A $25 filing fee shall be enclosed with the independent review request. The commissioner may waive the fee for good cause.        [Filed 2/22/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3684CIowa Public Employees’ Retirement System[495]Adopted and Filed

    Rule making related to benefits, contribution rates, and investments

        The Iowa Public Employees’ Retirement System hereby amends Chapter 1, “Organization,” Chapter 2, “Investment Board,” Chapter 3, “Benefits Advisory Committee,” Chapter 4, “Employers,” Chapter 5, “Employees,” Chapter 11, “Application for, Modification of, and Termination of Benefits,” and Chapter 31, “Agency Procedure for Rule Making,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 97B.4 and 97B.15.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 97B.Purpose and Summary    IPERS adopts the following amendments: to conform rules to other rules and statutes or to rescind rules that are outdated, redundant or inconsistent, or no longer in effect to meet the requirements of the statutory five-year rules review for Chapters 1 to 5; to implement contribution rates for regular and special service members beginning July 1, 2018; to amend language to comply with open meeting laws; to require employers to obtain an IRS determination if they disagree with IPERS’ employee coverage determination; to provide consistency with social security determinations of employee versus independent contractor coverage; to add a definition of emergency medical care provider consistent with the coverage afforded in Iowa Code chapter 97B; to match language in the bona fide refund rules with that in the bona fide retirement rules; to clarify that, effective July 1, 2018, a member will not have a bona fide retirement if the member enters into an agreement to return to work with the member’s former employer, prior to or during the member’s first month of entitlement and before receiving four months of payments from IPERS; to update the interest rate for fraud to match IPERS’ lowered investment return assumption to 7 percent; to stress that there are only 60 days to make an alternative election; and to clarify that dual coverage is not allowed for the same position.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3537C. A public hearing was held on January 23, 2018, at 10 a.m. at IPERS, 7401 Register Drive, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by IPERS on February 13, 2018.Fiscal Impact    Increased contribution rates for fiscal year 2019 are expected for employers and members.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition IPERS for a waiver of the discretionary provisions, if any.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 495—1.1(97B) as follows:

    495—1.1(97B) Organization.  The agency shall administer the retirement system created by Iowa Code chapter 97B. Specific powers and duties of the agency, CEO, board, committee, and agency staff are set forth in Iowa Code chapter 97B and these administrative rules.Operational units within the agency shall develop and administer policies and procedures governing retirement system programs, including accounting functions for the collection of funds from employers and employee members; disbursement of retirement benefits, death benefits, lump sum payments, and disability retirement benefits; training to employers and subsequent review of employer records for compliance with Iowa Code chapter 97B, rules and policies; preparation and release of informational newsletters and the annual report; and investment of funds contributed to the retirement system by employers and employee members. The retirement system is also the state administrator to the federal Social Security Administrationpursuant to Iowa Code chapter 97C.

        ITEM 2.    Amend rule 495—2.1(97B) as follows:

    495—2.1(97B) Investment board.  The principal place of business of the board is IPERS’ headquarters, 7401 Register Drive, Des Moines, Iowa.
    1. Effective July 1, 2002, the board shall be the trustee of the retirement fund. The board shall meet annually, and may meet more often, to review its investment policies.
    2. At the first meeting in each fiscal year, the voting members shall elect a chair and vice chair. Future meeting dates for the year shall also be decided at the first meeting. Advance notice of time, date, tentative agenda, and place of each meeting shall be given in compliance with Iowa Code chapter 21. All meetings of the board are open to the public and shall be held in accordance with Robert’s Rules of Order, Newly Revised.
    3. Parties wishing to present items for the agenda of the next meeting shall file a written request with the board chair at least five business days prior to the meeting. The board may take up matters not included on its agenda.
    4. Four members eligible to vote shall constitute a quorum. A simple majority vote of the full voting membership shall be the vote of the board.
    5. Members of the board shall file financial statements pursuant to Iowa Code section 68B.35(2)“e.”
    6. In the event that it should become necessary to fill the chief investment officer position, the board may consult with, and make hiring recommendations to, the chief executive officer that are consistent with the requirements of Iowa Code chapter 8A, subchapter IV.
    7. The board shall set the salary of the CEO pursuant to Iowa Code section 97B.3.
    8. The board shall participate in the annual performance evaluation of the chief investment officer.

        ITEM 3.    Amend subrule 3.3(3) as follows:    3.3(3) Citizen representative.  The citizen representative shall be elected by the eight voting representatives who serve under subrules 3.3(1) and 3.3(2).

        ITEM 4.    Amend subrule 4.1(6) as follows:    4.1(6) Patient advocates.  For patient advocates employed under Iowa Code section 229.19, the county or counties for which services are performed shall be treated as the covered employer(s) of such individuals, and each such employer is responsible for forwarding reports and for withholding and forwarding the applicable IPERS contributions on wages paid by each employer.

        ITEM 5.    Amend subrule 4.3(6) as follows:    4.3(6) Fees for noncompliance.  IPERS is authorized to impose reasonable fees on employers that do not file wage reports through the IPERS’ employer self-service Internet application as described in subrule 4.3(2), that fail to timely file accurate wage reports, or that fail to pay contributions when due pursuant to subrule 4.3(3).For submissions filed on or after August 1, 2008, IPERS shall charge employers a processing fee of $20 plus 25 cents per employee for late submissions and manual processing of wage reports by IPERS. Employers that are late or that do not use IPERS’ employer self-service Internet application may be charged both fees. In addition, if a fee for noncompliance is not paid by the fifteenth day of the month after the fee is assessed, the fee will accrue interest daily at the interest rate provided in Iowa Code sectionsections 97B.9 and97B.70. No fee will be charged on late contributions received as a result of a wage adjustment, but interest on the amount due will be charged until paid in full.If the due date for a fee falls on a weekend or state-observed holiday, the due date shall be the next regularly scheduled business day.

        ITEM 6.    Amend paragraph 4.6(1)"b" as follows:    b.    Effective July 1, 2012, and every year thereafter, the contribution rates for regular members shall be publicly declared by IPERS staff no later than the preceding December as determined by the annual valuation of the preceding fiscal year. The public declaration of contribution rates will be followed by rule making that will include a notice and comment period and that will become effective July 1 of the next fiscal year. Contribution rates for regular members are as follows.Effective July 1, 2013Effective July 1, 2014Effective July 1, 2015Effective July 1, 2016Effective July 1, 2017Effective July 1, 2018Combined rate14.88%14.88%14.88%14.88%14.88%15.73%    Employer8.93%8.93%8.93%8.93%8.93%9.44%    Employee5.95%5.95%5.95%5.95%5.95%6.29%

        ITEM 7.    Amend subrule 4.6(2) as follows:    4.6(2)   Contribution rates for sheriffs and deputy sheriffs are as follows.Effective July 1, 2013Effective July 1, 2014Effective July 1, 2015Effective July 1, 2016Effective July 1, 2017Effective July 1, 2018Combined rate19.76%19.76%19.76%19.26%18.76%19.52%    Employer9.88%9.88%9.88%9.63%9.38%9.76%    Employee9.88%9.88%9.88%9.63%9.38%9.76%

        ITEM 8.    Amend subrule 4.6(3) as follows:    4.6(3)   Contribution rates for protection occupations are as follows.Effective July 1, 2013Effective July 1, 2014Effective July 1, 2015Effective July 1, 2016Effective July 1, 2017Effective July 1, 2018Combined rate16.90%16.90%16.40%16.40%16.40%17.02%    Employer10.14%10.14%9.84%9.84%9.84%10.21%    Employee6.76%6.76%6.56%6.56%6.56%6.81%

        ITEM 9.    Amend subrule 5.1(1) as follows:    5.1(1) Definition of employee—generally.  A person is in employment as defined by Iowa Code chapter 97B if the person and the covered employer enter into a relationship which both recognize to be that of employer/employee. An employee is an individual who is subject to control by the agency for whom the individual performs services for wages. The term “control” refers only to employment and includes control over the way the employee works, where the employee works and the hours the employee works. The control need not be actually exercised for an employer/employee relationship to exist; the right to exercise control is sufficient. A public official may be an “employee” as defined in the agreement between the state of Iowa and the Secretary of Health and Human Services, without the element of direction and control.A person is not in employment if the person volunteers services to a covered employer for which the person receives no remuneration.IPERS makes employment determinations based on a common law test, which factors in behavior control, financial control and relationship of the parties. Once this decision is made, if any party disagrees with the decision, the party in disagreement will be required to submit an SS-8 Determination of Workers Status form directly to the Internal Revenue Service (IRS). Upon receipt of the determination by the IRS, IPERS will review this hiring arrangement a second time. A Final Agency Determination will be made at that time.Further, if a person is performing essential governmental functions that can only be performed by a governmental employee, that person shall be IPERS-covered.

        ITEM 10.    Amend subrule 5.2(6) as follows:    5.2(6)   Police, firefighters, emergency personnel, and certain peace officers.    a.    Effective July 1, 1994, police officers and firefighters of a city not participating in the retirement systems established under Iowa Code chapter 410 or 411 shall be covered.    b.    Emergency personnel, such as ambulance drivers, who are deemed to be firefighters by the employer shall be covered as firefighters.    c.    Effective January 1, 1995, part-time police officers shall be covered in the same manner as full-time police officers.    d.    Reserve peace officers employed under Iowa Code chapter 80D shall not be covered in accordance with Iowa Code section 80D.14.    e.    A police chief or fire chief who has submitted a written request to the board of trustees created by Iowa Code section 411.36 to be exempt from coverage under Iowa Code chapter 411 shall not be covered under IPERS in accordance with Iowa Code sections 384.6(1) and 411.3. The city shall make on behalf of such person the contributions required under Iowa Code section 384.6(1) to the International City Management Association/Retirement Corporation.    f.    Peace officer candidates of the department of public safety shall not be covered.    g.    An emergency medical care provider who provides emergency medical services, as defined in Iowa Code section 147A.1, and who is not a member of the retirement systems established in Iowa Code chapter 401 or 411 shall be covered.

        ITEM 11.    Amend subrule 5.2(32) as follows:    5.2(32)   Employees appointed by the state board of regents shall be covered unless, at the discretion of the state board of regents, they elect coverage in an alternatealternative retirement system qualified by the state board of regents.An employee must make an election in the alternative retirement system within 60 days of the employee’s first day of employment.

        ITEM 12.    Amend subrule 5.2(40) as follows:    5.2(40)   Employees of area community colleges shall be covered unless they elect coverage under an alternative system pursuant to a one-time irrevocable election.An employee must make an election in the alternative retirement system within 60 days of the employee’s first day of employment.

        ITEM 13.    Amend subrule 5.2(41) as follows:    5.2(41)   Volunteer emergency personnel, such as ambulance driversand emergency medical technicians, shall be considered temporary employees and shall be covered if they meet the requirements of subrule 5.2(13). Persons who meet such requirements shall be covered under the protection occupation requirements of Iowa Code section 97B.49B if they are considered firefighters by their employers; otherwise they shall be covered under Iowa Code section 97B.1197B.1A.

        ITEM 14.    Amend rule 495—5.3(97B) as follows:

    495—5.3(97B) Participation in IPERS and another retirement system.  Effective July 1, 1996, an employee may actively participate in IPERS and another retirement system supported by public funds if the person does not receive credit under both IPERS and such other retirement system for anythe same position held.

        ITEM 15.    Amend 495—Chapter 5, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 97B.1A, 97B.4, 97B.11, 97B.42, 97B.42A, 97B.49B, 97B.49C, and 97B.49G.

        ITEM 16.    Amend subrule 11.5(1) as follows:    11.5(1) Bona fide retirement—general.  To receive retirement benefits, a member under the age of 70 must officially leave employment with all IPERS-covered employers, give up all rights as an employee, and complete a period of bona fide retirement. A period of bona fide retirement means four or more consecutive calendar months for which the member qualifies for monthly retirement benefit payments. The qualification period begins with the member’s first month of entitlement for retirement benefits as approved by IPERS. A member may not return to covered employment before filing a completed application for benefits. Notwithstanding the foregoing, the continuation of group insurance coverage at employee rates for the remainder of the school year for a school employee who retires following completion of services by that individual shall not cause that person to be in violation of IPERS’ bona fide retirement requirements.A member will not be considered to have a bona fide retirement if the member is a school or university employee and returns to work with the employer after the normal summer vacation. In other positions, temporary or seasonal interruption of service which does not terminate the period of employment does not constitute a bona fide retirement. A member also will not be considered to have a bona fide retirement if the member has, prior to or during the member’s first month of entitlement, entered into contractualverbal or written arrangements with the employer to return to employment after the expiration of the four-month bona fide retirement period.Effective July 1, 1990, a school employee will not be considered terminated if, while performing the normal duties, the employee performs for the same employer additional duties which take the employee beyond the expected termination date for the normal duties. Only when all the employee’s compensated duties cease for that employer will that employee be considered terminated.The bona fide retirement period will be waived, however, if the member is elected to public office which term begins during the normal four-month bona fide retirement period. This waiver does not apply if the member was an elected official who was reelected to the same position for another term. The bona fide retirement period will also be waived for state legislators who terminate their nonlegislative employment and the IPERS coverage for their legislative employment and begin retirement but wish to continue with their legislative duties.The bona fide retirement period shall be waived for an elected official covered under Iowa Code section 97B.1A(8)“a”(1), and for a member of the general assembly covered under Iowa Code section 97B.1A(8)“a”(2), when the elected official or legislator notifies IPERS of the intent to terminate IPERS coverage for the elective office and, at the same time, terminates all other IPERS-covered employment prior to the issuance of the retirement benefit. Such an elected official or legislator may remain in the elective office and receive an IPERS retirement without violating IPERS’ bona fide retirement rules. If such elected official or legislator terminates coverage for the elective office and also terminates all other IPERS-covered employment but is then reemployed in covered employment, and has not received a retirement as of the date of hire, the retirement shall not be made. Furthermore, if such elected official or legislator is reemployed in covered employment, the election to revoke IPERS coverage for the elective position shall remain in effect, and the elected official or legislator shall not be eligible for new IPERS coverage for such elected position. The prior election to revoke IPERS coverage for the elected position shall also remain in effect if such elected official or legislator is reelected to the same position without an intervening term out of office. A member will have a bona fide retirement if the member returns to work as an independent contractor with a public employer during the four-month qualifying period. Independent contractors are not covered under IPERS.Effective July 1, 1998, through June 30, 2000, a member does not have a bona fide retirement until all employment with covered employers, including employment which is not covered by 495—Chapter 4, is terminated and the member receives at least four monthly benefit payments. In order to receive retirement benefits, the member must file a completed application for benefits with IPERS before returning to any employment with the same employer.Effective July 1, 2000, a member does not have a bona fide retirement until all employment with covered employers, including employment which is not covered under this chapter, is terminated for at least one month, and the member does not return to covered employment for an additional three months. In order to receive retirement benefits, the member must file a completed application for benefits before returning to any employment with a covered employer.Effective July 1, 2018, a member will not have a bona fide retirement if the member enters into a verbal or written arrangement to perform duties for the member’s former employer(s) as an independent contractor prior to or during the member’s first month of entitlement or performs any duties for the member’s former employer(s) as an independent contractor prior to receiving four months of retirement benefits.

        ITEM 17.    Amend paragraph 11.7(5)"b" as follows:    b.    Overpayments in violation of Iowa Code section 97B.40 or 715A.8.If the overpayment of benefits, other than an overpayment that results from a violation described in subrule 11.7(4), was the result of wrongdoing, negligence, misrepresentation, or omission of the recipient, the recipient is liable to pay interest charges at the rate of 7.57 percent on the outstanding balance, beginning on the date of the overpayment(s).

        ITEM 18.    Amend subrule 31.2(1) as follows:    31.2(1)   IPERS shall designate the benefits advisory committee (BAC), and investment board as applicable, as the stakeholder rule-making group, pursuant to the rules for creation, public notice, procedures, public input, and results as outlined in Executive Order Number 80. The stakeholder group shall review and comment on any proposed rulesrule changes before the rules are considered to be pending, as defined in subrule 31.3(2).    [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3685CLabor Services Division[875]Adopted and Filed

    Rule making related to amusement rides and devices

        The Labor Commissioner hereby amends Chapter 61, “Administration of Iowa Code Chapter 88A,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 88A.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 88A.Purpose and Summary    Item 1 clearly requires that a fatality related to an amusement ride or device must be reported to the Labor Commissioner.  Item 2 makes two changes to the rule that allows selected owners of air-supported structures to perform inspections as a designee of the Labor Commissioner. Generators are added to the list of devices that designated owners may inspect, and an end date for the inspection designation is established.  Item 3 rescinds language that prevents electronic payments in preparation for a new, electronic permitting system and more clearly states the Labor Commissioner’s policy on payments of fees.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3539C. No public comments were received. No changes from the Notice have been made. Adoption of Rule Making    This rule making was adopted by the Labor Commissioner on February 13, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. The changes are primarily administrative. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Waiver procedures are set forth in 875—Chapter 1.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend paragraph 61.3(4)"a" as follows:    a.    The operator shall immediately report by telephone any accident that results indeath or medical care beyond first aid.

        ITEM 2.    Amend paragraph 61.4(1)"a" as follows:    a.    Annual inspection by owner.At the discretion of the commissioner, the owner of an air-supported structure may be designated by the commissioner to perform the annual inspection of the owner’s air-supported structure,and blower, and related electrical equipment. An owner designated pursuant to this paragraph shall perform the inspection according to applicable standards. The owner shall submit in the format required by the commissioner an affidavit attesting to the performance of the inspection, correction of code violations, and other required information. A designation pursuant to this paragraph shall terminate on December 31 of the year of issuance.

        ITEM 3.    Rescind rule 875—61.8(88A) and adopt the following new rule in lieu thereof:

    875—61.8(88A) Payments.  All fees are nonrefundable. Cash is not accepted. Based on reasonable justification, the commissioner may notify an individual operator that the operator’s check will not be accepted.        [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3686CLabor Services Division[875]Adopted and Filed

    Rule making related to contractor registration

        The Labor Commissioner hereby amends Chapter 150, “Construction Contractor Registration,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 91C.6.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 91C.Purpose and Summary    The first item amends the definition of “contractor” to reduce confusion over the scope of coverage.  The second item causes the rules to conform to Iowa Code chapter 91C as amended by 2017 Iowa Acts, Senate File 411.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 17, 2018, as ARC 3565C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Labor Commissioner on February 21, 2018.Fiscal Impact     This rule making will reduce the funds received by the contractor registration fund by a small amount. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Applicable waiver procedures are set forth in 875—Chapter 1.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 875—150.2(91C), definition of “Contractor,” as follows:        "Contractor" means a person who engages in the business of construction as the term is defined in 871—23.82(96), for purposes of the Iowa employment security law, including subcontractors and special trade contractors. Also included are persons who conduct or perform construction on an incidental or occasional basis, regardless of whether the person is classified as being engaged in construction by the unemployment insurance services division of the workforce development department.

        ITEM 2.    Amend paragraph 150.4(11)"a" as follows:    a.    File a$25,000 surety bond in the amount of $25,000 for a one-year period that is prepared using the bond form provided by the division, or    [Filed 2/21/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3687CTransportation Department[761]Adopted and Filed

    Rule making related to motor vehicle and travel trailer dealers, manufacturers, distributors and wholesalers

        The Department of Transportation hereby amends Chapter 425, “Motor Vehicle and Travel Trailer Dealers, Manufacturers, Distributors and Wholesalers,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12, 307A.2 and 322.13.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 321.57, 321.60, 322.2, 322.4 and 322.5.Purpose and Summary    The Department is adopting amendments to Chapter 425 to align the chapter with the following Iowa Code changes:

  • 2014 Iowa Acts, chapter 1123, sections 27 and 28, amended Iowa Code sections 321.57 and 321.60, which allow a motor vehicle dealer to operate or move upon the highways a vehicle owned by the dealer for either private or business purposes without registering the vehicle if the vehicle is in the dealer’s inventory and is continuously offered for sale at retail, provided the vehicle is equipped with a special dealer plate issued by the Department. These changes allow the dealer to use an unregistered vehicle in the dealer’s inventory to carry a load or tow a trailer, provided the dealer obtains a special dealer plate specifically issued for hauling a load or towing a trailer. Iowa Code section 321.60 sets the fee for a special haul or tow dealer plate at $750, valid for a two-year period.
  • 2015 Iowa Acts, chapter 123, section 38, amended Iowa Code section 322.5(2), which specifies additional places at which a motor vehicle dealer may display, offer for sale, or negotiate sales for new motor vehicles. Before this amendment, Iowa Code section 322.5(2) provided that, in addition to selling motor vehicles at the dealer’s principal place of business and permanent car lots, the dealer could, under a temporary permit from the Department, display only (but not offer to sell or negotiate the sale of) motor vehicles at fairs, vehicle shows and vehicle exhibitions anywhere in the state (even if not in the dealer’s community), and could display, offer for sale, and negotiate the sale of motor vehicles at fair events, vehicle shows and vehicle exhibitions that were held within the dealer’s community. (“Community” is defined in Iowa Code section 322A.1 and means the dealer’s area of responsibility as defined in its franchise agreement with the manufacturer.) “Fair events” only included county and district fairs provided for in Iowa Code chapter 174 and did not include the state fair, which is separately identified in Iowa Code chapter 173. The amendment to Iowa Code section 322.5(2) expanded sales opportunities to also allow motor vehicle dealers to display, offer for sale, and negotiate the sale of new motor vehicles at the state fair under a temporary permit issued by the Department, again provided the fair is within the motor vehicle dealer’s community.
  • 2016 Iowa Acts, chapter 1083, section 3, amended Iowa Code section 322.2, which defined “engaged in the business” of selling motor vehicles as “doing any of the following acts for the purpose of the sale of motor vehicles at retail: acquiring, selling, exchanging, holding, offering, displaying, brokering, accepting on consignment, conducting a retail auction, or acting as an agent for the purpose of doing any of those acts.” This change expanded the definition to also include “advertising as being engaged in any of those acts.” The definition of being engaged in the business of selling motor vehicles is significant because only persons who are engaged in the business of selling motor vehicles are required to obtain and maintain a motor vehicle dealer’s license to do so.
  • 2016 Iowa Acts, chapter 1083, section 7, amended Iowa Code section 322.4. This change increased the minimum bond amount which must be carried by a motor vehicle dealer from $50,000 to $75,000.
    •     The following further explains the amendments in this rule making:    Item 1 updates the responsible office name from the office of vehicle services to the office of vehicle and motor carrier services to reflect the consolidation of these two offices into one office. This change is also reflected in Items 4, 5, 6, 7, 10 and 12. This item also updates the Department’s website address.    Item 2 updates the definition of “engage in this state in the business” to match the definition set forth in Iowa Code section 322.2 described above.    Item 3 changes the word “forms” to “form” to clarify that a single application form is needed to apply for a license as a motor vehicle dealer or travel trailer dealer.    Item 4 increases the minimum bond amount a motor vehicle dealer must carry from $50,000 to $75,000 to match the amount required in amended Iowa Code section 322.4, as described above. This item also makes a minor clarification in the notifications the Department must give the bond company, by changing the requirement from notifying the bond company of any conviction of the dealer for a violation of dealer laws to notifying the bond company of any conviction of the dealer related to the operations of the dealership. This change reflects that convictions that affect a dealer’s license and bond may be under laws that are outside Iowa Code chapter 322.    Items 8 and 11 make changes to the rules concerning permits for motor vehicle dealers to display, offer to sell, and negotiate the sale of new motor vehicles at fairs, vehicle shows and vehicle exhibitions by adding a permit option for the state fair. These changes comply with Iowa Code section 322.5(2) as described above. Other amendments include the addition of the definition of “community” to mean as defined under Iowa Code section 322A.1; addition of the definition of “state fair” to mean the state fair as discussed in Iowa Code chapter 173; and insertion of the term “state fair” in conjunction with fairs, vehicle shows and vehicle exhibitions wherever applicable. The terms “show” and “exhibition” are also changed to “vehicle show” and “vehicle exhibition” consistently throughout to improve clarity and consistency within the rule and with Iowa Code section 322.5.    Item 9 adds the word “vehicle” before “exhibition” for the same reasons as described in the paragraph above.    Items 13 and 14 make changes to comply with Iowa Code sections 321.57 and 321.60, which provide for issuance of a dealer license plate to be displayed on inventory vehicles used to haul a load and tow a trailer as described above. Item 14 also clarifies that a dealer who obtains a “HAUL & TOW” plate and uses it to demonstrate the load capabilities of motor trucks and truck tractors to prospective purchasers does not also need to obtain a demonstration permit from the Department to do so.    The amendments made throughout this chapter are intended to align the rules with the Iowa Code and conform the rules to Departmental practices.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on December 20, 2017, as ARC 3513C. No public comments or requests for oral presentations were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 13, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend subrule 425.1(2) as follows:    425.1(2)   The office of vehicleand motor carrier services administers this chapter. The mailing address is: Office of Vehicleand Motor Carrier Services, Iowa Department of Transportation, P.O. Box 9278, Des Moines, Iowa 50306-9278.    a.    Applications required by the chapter shall be submitted to the office of vehicleand motor carrier services.    b.    Information about dealer plates and the licensing of motor vehicles and travel trailer dealers, manufacturers, distributors and wholesalers is available from the office of vehicleand motor carrier services or on the department’s Web sitewebsite at http://www.iowadot.gov/mvdwww.iowadot.gov.

        ITEM 2.    Amend rule 761—425.3(322), definition of “Engage in this state in the business,” as follows:        "Engage in this state in the business" or similar wording means doing any of the following acts for the purpose of selling motor vehicles or travel trailers at retail: to acquire, sell, exchange, hold, offer, display, broker, accept on consignment or conduct a retail auction,advertise as being engaged in any of those acts, or to act as an agent for the purpose of doing any of thesethose acts. A person selling at retail more than six motor vehicles or six travel trailers during a 12-month period may be presumed to be engaged in the business. See rule 761—425.20(322) for provisions regarding fleet sales and retail auction sales.

        ITEM 3.    Amend subrule 425.10(1) as follows:    425.10(1) Application formsform.  To apply for a license as a motor vehicle or travel trailer dealer, the applicant shall complete an application on formsa form prescribed by the department.

        ITEM 4.    Amend subrule 425.10(2) as follows:    425.10(2) Surety bond.      a.    The applicant shall obtain a surety bond in the following amounts and file the original with the office of vehicleand motor carrier services:    (1)   For a motor vehicle dealer’s license, $50,000$75,000.    (2)   For a travel trailer dealer’s license, $25,000. However, an applicant for a travel trailer dealer’s license is not required to file a bond if the person is licensed as a motor vehicle dealer under the same name and at the same principal place of business.    b.    The surety bond shall provide for notice to the office of vehicleand motor carrier services at least 30 days before cancellation.    c.    The office of vehicleand motor carrier services shall notify the bonding company of any conviction of the dealer for a violation of dealer lawsrelated to the operations of the dealership.    d.    If the bond is canceled, the office of vehicleand motor carrier services shall notify the dealer by first-class mail that the dealer’s license shall be revoked on the same date that the bond is canceled unless the bond is reinstated or a new bond is filed.    e.    If an applicant whose dealer’s license was revoked pursuant to paragraph “d” establishes that the applicant obtained a reinstated or new bond meeting the requirements of subrule 425.10(2) that was effective on or before the date of cancellation, but due to mistake or inadvertence failed to file the original bond with the office of vehicleand motor carrier services, the applicant may file the original of the reinstated or new bond. Upon filing, the department will rescind the revocation of the dealer’s license.

        ITEM 5.    Amend paragraph 425.10(3)"a" as follows:    a.    An applicant who intends to sell new motor vehicles or travel trailers shall submit to the office of vehicleand motor carrier services a copy of a signed franchise agreement with the manufacturer or distributor of each make the applicant intends to sell.

        ITEM 6.    Amend subrule 425.10(6) as follows:    425.10(6) Zoning.  The applicant shall provide to the office of vehicleand motor carrier services written evidence, issued by the office responsible for the enforcement of zoning ordinances in the city or county where the applicant’s business is located, which states that the applicant’s principal place of business and any extensions comply with all applicable zoning provisions or are a legal nonconforming use.

        ITEM 7.    Amend rule 761—425.18(322) as follows:

    761—425.18(322) Supplemental statement of changes.  A motor vehicle dealer shall file a written statement with the office of vehicleand motor carrier services at least ten days before any change of name, location, hours, or method or plan of doing business. A license is not valid until the changes listed in the statement have been approved by the office of vehicleand motor carrier services.       This rule is intended to implement Iowa Code sections 322.1 to 322.15.

        ITEM 8.    Amend rule 761—425.26(322) as follows:

    761—425.26(322) FairsState fair, fairs, shows and exhibitions.      425.26(1) Definitions.  As used in this rule:        "Community" means an area of responsibility as defined in Iowa Code section 322A.1.        "Display" means having new motor vehicles or new travel trailers available for public viewing at fairs, vehicle shows or vehicle exhibitions. The dealer may also post, display or provide product information through literature or other descriptive media. However, the product information shall not include prices, except for the manufacturer’s sticker price. “Display” does not mean offering new vehicles for sale or negotiating sales of new vehicles.        "Fair" means a county fair or a scheduled gathering for a predetermined period of time at a specific location for the exhibition, display or sale of various wares, products, equipment, produce or livestock, but not solely new vehicles, and sponsored by a person other than a single dealer.        "Offer" new vehicles “for sale,” “negotiate sales” of new vehicles, or similar wording, means doing any of the following atthe state fair or a fair,vehicle show orvehicle exhibition: posting prices in addition to the manufacturer’s sticker price, discussing prices or trade-ins, arranging for payments or financing, and initiating contracts.        "State fair" means the fair as discussed in Iowa Code chapter 173.        "Vehicle exhibition" means a scheduled event conducted at a specific location where various types, makes or models of new vehicles are displayed either at the same time or consecutively in time, and sponsored by a person other than a single dealer.        "Vehicle show" means a scheduled event conducted for a predetermined period of time at a specific location for the purpose of displaying at the same time various types, makes or models of new vehicles, which may be in conjunction with other events or displays, and sponsored by a person other than a single dealer.    425.26(2) Permits for motor vehicle dealersof new motor vehicles.      a.    A “display only” fair,vehicle show orvehicle exhibition permit allows a motor vehicle dealer to display new motor vehicles at a specified fair, vehicle show or vehicle exhibition in any Iowa county. The permit is valid on Sundays.    b.    A “full” fair,state fair, vehicle show orvehicle exhibition permit allows a motor vehicle dealer to display and offer new motor vehicles for sale and negotiate sales of new motor vehicles atthe state fair, or a specified fair, vehicle show or vehicle exhibition that is held in the same county aswithin the motor vehicle dealer’s principal place of businesscommunity. Exception: A motor vehicle dealer who is licensed to sell motor homes may be issued a permit to offer for sale Class “A” and Class “C” motor homes at a specified fair,vehicle show orvehicle exhibition in any Iowa county. A “full” fair, show or exhibition permit is not valid on Sundays.    c.    The following restrictions are applicable to both types of permits:    (1)   Permits will be issued to motor vehicle dealers only forthe state fair, fairs, vehicle shows or vehicle exhibitions where more than one motor vehicle dealer may participate.    (2)   A permit is limited to the line makes for which the motor vehicle dealer is licensed in Iowa.    425.26(3)   Reserved.    425.26(4) Permits for travel trailer dealersof new travel trailers.  A fair,vehicle show orvehicle exhibition permit allows a travel trailer dealer to display and offer new travel trailers for sale and negotiate sales of new travel trailers at a specified fair, vehicle show, or vehicle exhibition in any Iowa county.    a.    The permit is valid on Sundays.    b.    The permit is limited to the line makes for which the travel trailer dealer is licensed in Iowa.    c.    A travel trailer dealer who does not have a permit may display vehicles at fairs, vehicle shows and vehicle exhibitions.    425.26(5) Permit application.  A motor vehicle or travel trailer dealer shall apply for a fair, show or exhibition permit on an application form prescribed by the department. The application shall include the dealer’s name, address and license number and the following information about the fair, show or exhibitionevent: name, location, sponsor(s) and duration, including the opening and closing dates.    425.26(6) Display of permit.  The motor vehicle or travel trailer dealer shall display the permit at the fair, show or exhibition in close proximity to the vehicles being exhibited.    425.26(7) Variance.  Rescinded IAB 11/7/07, effective 12/12/07.    425.26(8) Display without permit.  Rescinded IAB 7/10/02, effective 8/14/02.       This rule is intended to implement Iowa Code subsectionssections 322.5(2) and 322C.3(9).

        ITEM 9.    Amend rule 761—425.31(322) as follows:

    761—425.31(322) Firefighting and rescue show permit.      425.31(1)   Application for a firefighting and rescue show permit shall be made on a form prescribed by the department. The application shall include the name, address and license number of the applicant, the type of vehicles being displayed, and the following information about the vehicle show orvehicle exhibition: name, location, sponsor(s), and duration, including the opening and closing dates.    425.31(2)   The permit is not valid on Sundays. Only one permit shall be issued to each licensee for an event.    425.31(3)   The permit holder shall display the permit in a prominent place at the location of the vehicle show orvehicle exhibition.       This rule is intended to implement Iowa Code subsectionsection322.5(5).

        ITEM 10.    Amend subrule 425.50(2) as follows:    425.50(2) Licensing requirements.      a.    Rescinded IAB 11/3/99, effective 12/8/99.    b.    a.    New motor homes delivered to Iowa dealers must contain the systems and meet the standards specified in Iowa Code paragraphsection 321.1(36C)“d.”    c.    b.    A licensee shall ensure that any new retail outlet is properly licensed as a dealer before any vehicles are delivered to the outlet.    d.    c.    A licensee shall notify the office of vehicleand motor carrier services in writing at least ten days prior to any:    (1)   Change in name, location or method of doing business, as shown on the license.    (2)   Issuance of a franchise to a dealer in this state to sell new vehicles at retail.    (3)   Rescinded IAB 11/3/99, effective 12/8/99.    (4)   (3)   Change in the trade name of a travel trailer manufactured for delivery in this state.    e.    d.    A licensee shall notify the office of vehicleand motor carrier services in writing at least ten days before any new make of vehicle is offered for sale at retail in this state.

        ITEM 11.    Amend subrule 425.62(2) as follows:    425.62(2)   The department may deny a dealer’s application forthe state fair or a fair,vehicle show orvehicle exhibition permit for a period not to exceed six months if the dealer fails to comply with the applicable provisions of rule 761—425.26(322) or Iowa Code subsectionsection 322.5(2) or 322C.3(9).

        ITEM 12.    Amend subrule 425.62(4) as follows:    425.62(4)   The department shall send notice by certified mail to a person whose certificate, license or permit is to be revoked, suspended, canceled or denied. The notice shall be mailed to the person’s mailing address as shown on departmental records or, if the person is currently licensed, to the principal place of business, and shall become effective 20 days from the date mailed. A person who is aggrieved by a decision of the department and who is entitled to a hearing may contest the decision in accordance with 761—Chapter 13. The request shall be submitted in writing to the director of the office of vehicleand motor carrier services at the address in subrule 425.1(2). The request shall be deemed timely submitted if it is delivered or postmarked on or before the effective date specified in the notice of revocation, suspension, cancellation or denial.

        ITEM 13.    Amend subrule 425.70(3) as follows:    425.70(3) Use of dealer plates.      a.    Dealer plates shall not be displayed on vehicles that are rented or loaned. However, a dealer plate may be displayed on a motor vehicle, other than a truck or truck tractor, loaned to a customer of a licensed motor vehicle dealer while the customer’s motor vehicle is being serviced or repaired by the dealer.    b.    Motor vehicles used by dealers, manufacturers or distributors to transport other vehicles shall be registered, except when being transported from the place of manufacturing, assembling or distribution to a dealer’s place of business.    c.    b.    Saddle-mounted vehicles being transported shall display dealer plates.    d.    c.    Dealer plates may be displayed on a trailer carrying a load, provided the truck or truck tractormotor vehicle towing the trailer is properly registered under Iowa Code section321.109, 321.120, or 321.122, except as providedor is displaying a dealer plate described in paragraph 425.70(3)“e,” or a demonstration permit has been issued as described in rule 761—425.72(321).    e.    d.    Dealer plates may be used by a dealer licensed as a wholesaler for a new motor vehicle model when operating a new motor vehicle of that model if the motor vehicle is owned by the wholesaler and is operated solely for the purpose of demonstration, show or exhibition.    e.    A dealer plate issued under Iowa Code section 321.60 for the purpose of hauling a load or towing a trailer shall be marked “HAUL & TOW.” Dealer “HAUL & TOW” plates may only be displayed on vehicles in the dealer’s inventory that are continuously offered for sale at retail.

        ITEM 14.    Adopt the following new subrule 425.72(6):    425.72(6)   A dealer plate issued under Iowa Code section 321.60 for the purpose of hauling a load or towing a trailer may be used in lieu of a demonstration permit.    [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3688CTransportation Department[761]Adopted and Filed

    Rule making related to transportation network companies

        The Department of Transportation hereby amends Chapter 540, “Transportation Network Companies,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12, 307A.2 and 321N.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 321N.Purpose and Summary    The Department is amending paragraph 540.4(3)“a” to strike the reference to Iowa Code chapter 518. An applicant for a permit to operate as a transportation network company, defined in Iowa Code chapter 321N, must submit several documents, including proof that the applicant has obtained the necessary insurance. Due to the recent change in Iowa Code section 321N.4(6), insurers that are governed by Iowa Code chapter 518 are no longer approved insurers for purposes of applying for a permit to operate a transportation network company. This amendment conforms the rules with 2017 Iowa Acts, Senate File 516, section 25, which amended Iowa Code section 321N.4(6) and implemented a technical correction regarding insurance carriers governed by Iowa Code chapter 518 by removing them from the list of carriers authorized to provide insurance pursuant to Iowa Code chapter 321N.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 17, 2018, as ARC 3572C. No public comments or requests for oral presentations were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 21, 2018.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making action is adopted:

        ITEM 1.    Amend paragraph 540.4(3)"a" as follows:    a.    Proof of compliance with the financial responsibility requirements of Iowa Code section 321N.4. Proof of compliance shall be submitted by providing a valid certificate of coverage from an insurer governed by Iowa Code chapter 515 or 518, or by a surplus lines insurer governed by Iowa Code chapter 515I. The certificate of coverage shall demonstrate coverage in the amounts and circumstances required by Iowa Code section 321N.4, and shall certify that if insurance maintained by a transportation network company driver under Iowa Code chapter 321N lapses or does not provide coverage in the amounts or types required by Iowa Code section 321N.4, subsection 2 or 3, the insurance certified in the certificate of coverage shall provide coverage in the amounts and types required by Iowa Code section 321N.4, subsection 2 or 3, beginning with the first dollar of the claim, and the insurer providing such coverage shall defend the claim. The certificate of coverage shall also certify that the coverage therein is not dependent on the insurer of a transportation network company driver’s personal vehicle first denying a claim, and does not require the insurer of a personal automobile insurance policy to first deny a claim to trigger coverage and defense under the coverage certified.    [Filed 2/21/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3689CTransportation Department[761]Adopted and Filed

    Rule making related to commercial driver licensing

        The Department of Transportation hereby amends Chapter 607, “Commercial Driver Licensing,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12, 307A.2 and 321.180.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 321.180(2).Purpose and Summary    The Department is adopting amendments to Chapter 607 to comply with 2017 Iowa Acts, House File 463, section 1, which amended Iowa Code section 321.180(2). The amendments to Chapter 607 change the validity period of a commercial learner’s permit (CLP) from 180 days to one year, update the affected implementation sentences and make corrections to the Department’s contact information. The following list explains each item in this rule making:     Item 1 amends subrule 607.2(1) to correct the name of the office responsible for administering this chapter and to strike an outdated telephone number.     Item 2 amends paragraph 607.20(1)“b” to change the validity period of a CLP from 180 days to one year. Previously, a CLP could be issued for a duration of 180 days, with an option to renew it for an additional 180 days. However, the Federal Motor Carrier Safety Administration issued an exemption that allowed states to forego renewal after 180 days and instead to make the CLP valid for one year; this exemption was first issued April 5, 2016, and was revised on November 29, 2016, to correct an oversight in its initial articulation. The Iowa General Assembly chose to amend the statute, Iowa Code section 321.180(2), and utilize the exemption to change the CLP period of validity to one year, which reduces costs and expense for the Department and eliminates renewals and unnecessary trips to licensing locations for CLP holders. This amendment updates the rule to conform with the statutory change.     Item 3 amends subrule 607.28(3) to conform with the statutory change. Since there will no longer be a CLP renewal, the provisions of this subrule which require that the skills test be retaken before issuance of a renewal no longer apply.     Item 4 amends subrule 607.31(1) to reflect the statutory change that the skills test results are valid for one year since the CLP period of validity is now one year rather than 180 days.     Item 5 amends the implementation sentence for rule 761—607.31(321) to reflect the aforementioned statutory change made to Iowa Code section 321.180(2).Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3532C. No public comments or requests for oral presentations were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 13, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, these amendments are expected to have a positive impact on private sector jobs and employment opportunities in Iowa since the CLP renewal process was eliminated in favor of a one-year period of validity. Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend subrule 607.2(1) as follows:    607.2(1) Information and location.  Applications, forms and information about the commercial driver’s license (CDL) are available at any driver’s license examination station. Assistance is also available by mail from the Office of Driverand Identification Services, Iowa Department of Transportation, P.O. Box 9204, Des Moines, Iowa 50306-9204; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; by telephone at (800)532-1121 or (515)244-8725; by facsimile at (515)239-1837; or on the department’s Web sitewebsite at www.iowadot.gov.

        ITEM 2.    Amend paragraph 607.20(1)"b" as follows:    b.    A commercial learner’s permit is valid for 180 days and may be renewed for an additional 180 daysone year without retaking the general and endorsement knowledge tests required by Iowa Code section 321.188.

        ITEM 3.    Amend subrule 607.28(3) as follows:    607.28(3) Order.  The skills test must be administered and successfully completed in the following order: pre-trip inspection, basic vehicle control skills, on-road skills. If an applicant fails one segment of the skills test, the applicant cannot continue to the next segment of the test, and scores for the passed segments of the test are only valid during initial issuance of the commercial learner’s permit. If the commercial learner’s permit is renewed, all three segments of the skills test must be retaken. However:    a.    If the applicant wants to remove an air brake restriction, full air brake restriction, or manual transmission restriction, the applicant does not have to retake the complete skills test, and may complete a modified skills test that demonstrates the applicant can safely and effectively operate the vehicle’s full air brakes, air over hydraulic brakes, or manual transmission. In addition, to remove the air brake or full air brake restriction, the applicant must successfully perform the air brake pre-trip inspection and pass the air brake knowledge test.    b.    If the applicant wants to remove the tractor-trailer restriction, the applicant must retake all three skills tests in a representative tractor-trailer.

        ITEM 4.    Amend subrule 607.31(1) as follows:    607.31(1) Period of validity.  Passing knowledge and skills test results shall remain valid for a period of 180 daysone year.

        ITEM 5.    Amend rule 761—607.31(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections321.180,321.186, 321.187 and 321.188.    [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3690CTransportation Department[761]Adopted and Filed

    Rule making related to coordination of public transit services

        The Department of Transportation hereby amends Chapter 910, “Coordination of Public Transit Services,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12, 307A.2 and 324A.5.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 324A.4 and 324A.5.Purpose and Summary    The amendments to this chapter:

  • Amend the definition of “department” to remove an obsolete division name.
  • Amend the definition of “incidental transportation” to reflect Federal Transit Administration terminology.
  • Amend the definition of “public transit service” to: o Add the word “exclusive” before “public school transportation” to indicate school transportation provided during open-to-the-public service is allowable while closed “exclusive” school transportation is not. o Update the list of state institutions which provide their own on-campus transportation, which is not considered a public transit service.
  • Rescind the definition of “public transit system” since this definition is already included in Iowa Code section 324A.1. Rule 761—910.1(324A) already states that the definitions in Iowa Code section 324A.1 apply to these rules.
  • Update the contact information to correct an office name and add the Department’s website address.
  • Update language throughout the chapter to remove obsolete office and division names.
  • Change how often the Statewide Transportation Coordination Advisory Council must meet from monthly to quarterly to give the Council greater flexibility to meet when needed, rather than meeting monthly without a full agenda.
  • Make editorial corrections for readability.
  • Correct references to Iowa Code section 324A.5(3) since this section was renumbered.
  • Remove a reference to Iowa Code section 17A.18 since this section concerns licenses and is not pertinent to this chapter.
    • Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3533C. No public comments or requests for oral presentations were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 13, 2018.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 761—910.1(324A), definitions of “Department,” “Incidental transportation” and “Public transit service,” as follows:        "Department" means the state department of transportation. Thedepartment’s office of public transportation of the air and transit division of the departmenttransit administers Iowa Code chapter 324A.        "Incidental transportation" means transportation provided by an agency or entity when the driver must provide supervision, educational assistance or other support enroute and at the origin or destination. Transportation used merely to access other services is not incidentalthe provision of transit rides when existing public transportation services cannot meet demand. Allowable charter service and meal deliveries are examples of incidental transportation.        "Public transit service" means any publicly funded passenger transportation for the general public or for specific client groups not includingexclusive public school transportation, emergency transportation or incidental transportation or transportation provided by the state department of human services or state department of corrections on the grounds of the following institutions:State juvenile home, Toledo;State training school, Eldora;Cherokee mental health institute;Clarinda mental health institute;Independence mental health institute;Mount Pleasant mental health institute;Glenwood state hospital-school;Woodward state hospital-school;Iowa veterans home, Marshalltown;Iowa state penitentiary, Fort Madison;Iowa state men’s reformatory, Anamosastate penitentiary, Anamosa;Iowa correctional institution for women, Mitchellville;Medium security unit, Mount Pleasantcorrectional facility, Mount Pleasant;Riverview release center, Newtoncorrectional facility, Newton;Iowa medical and classification center, OakdaleCoralville;North central correctional facility, Rockwell City;Fort Dodge correctional facility, Fort Dodge;Correctional treatment unit, Clarindacorrectional facility, Clarinda.

        ITEM 2.    Rescind the definition of “Public transit system” in rule 761—910.1(324A).

        ITEM 3.    Amend rule 761—910.2(17A) as follows:

    761—910.2(17A) Information and location.  Requests for formsForms or information about the coordination of public transit services shall be addressed to:are available from the Office of Public Transportation, Air and Transit DivisionTransit, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010; telephone (515)233-7870or on the department’s website at www.iowadot.gov.       This rule is intended to implement Iowa Code section 17A.3.

        ITEM 4.    Amend paragraph 910.3(2)"c" as follows:    c.    Staff.Staff support for council activities shall be provided by the department’s office of public transportationdepartment.

        ITEM 5.    Amend paragraph 910.3(2)"d" as follows:    d.    Meetings.Meetings shall be held at least once each monthquarter and may be held more frequently if necessary to enable the council to expeditiously discharge its duties.

        ITEM 6.    Amend paragraph 910.3(3)"d" as follows:    d.    Advise and make recommendations to the department’s office of public transportationdepartment concerning public transportation policy.

        ITEM 7.    Amend paragraph 910.4(4)"b" as follows:    b.    Forms submitted directly to the department by its recipients or by providers not receiving state or state-administered funds shall be reviewed for completeness by the office of public transportationtransit within 10 working days.

        ITEM 8.    Amend paragraph 910.5(2)"b" as follows:    b.    Operates all services open to the public under contract with andunder control of a designated transit system, or

        ITEM 9.    Amend subrule 910.7(1) as follows:    910.7(1)   If the department of human services purchases services from the noncompliant provider, the department’s office of public transportationtransit shall notify the department of human services of the noncompliant finding.

        ITEM 10.    Amend subrule 910.7(2) as follows:    910.7(2)   If the noncompliant provider is a recipient of public funds from other than the department of human services, the department’s office of public transportationdepartment shall notify the proper authority as required in Iowa Code subsection 324A.5(3)section 324A.5.

        ITEM 11.    Amend rule 761—910.8(17A,324A) as follows:

    761—910.8(17A,324A) Revocation.      910.8(1)   If certification is revoked, the air and transit divisiondepartment shall send a written notice of revocation to the provider.    910.8(2)   The affected public transit system, the provider and the air and transit divisiondepartment shall meet within 10 days after the date of the revocation notice to determine an acceptable amendment of the transportation services. The amendments which are agreed upon shall become effective within 60 days. The contract between the provider and the affected public transit system shall be amended, if necessary, to agree with the service changes.    910.8(3)   If the transportation services are not timely amendedin a timely manner, the air and transit divisiondepartment shall initiate actions as required in Iowa Code subsection 324A.5(3)section 324A.5(2).       This rule is intended to implement Iowa Code sections 17A.18 andsection324A.5.        [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.ARC 3691CTransportation Department[761]Adopted and Filed

    Rule making related to school transportation services provided by regional transit systems

        The Department of Transportation hereby amends Chapter 911, “School Transportation Services Provided by Regional Transit Systems,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12, 307A.2 and 321.377.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 321.1, 321.189, 321.343, 321.375, 321.377 and 324A.1.Purpose and Summary    The Department is adopting amendments to Chapter 911 to update the chapter. The following list explains each amendment:     • Item 1 updates the office contact information, corrects a telephone number and adds the Department’s website.     • Item 2 makes changes to the definitions of “automobile” and “multipurpose vehicle” so the terms refer to the definitions used in Iowa Code section 321.1. This item also amends the definition of “regional transit system” so the term refers to the definition used in Iowa Code section 324A.1. These three terms will only refer to the definitions in the Iowa Code, rather than repeat the definitions so the rules will not need to be modified if the Iowa Code definition changes. Item 2 also updates the definition of “student” to include Head Start participants.     • Item 3 adds a new definition of “public transit system” which refers to the definition used in Iowa Code section 324A.1.     • Item 4 adopts the current parts of the Code of Federal Regulations (CFR) referenced in Chapter 911 as follows: 49 CFR 38, Americans with Disabilities Act; 49 CFR 571, Federal Motor Vehicle Safety Standards; and 49 CFR Part 655, Prevention of Alcohol Misuse and Prohibited Drug Use in Transit Operations. While the CFR date in subrule 911.5(1) has not been updated since 2006, no changes to the federal regulations adopted within this chapter have occurred during that time and the Department has adopted the October 1, 2017, CFR. This item also provides the website of the U.S. Government Publishing Office where the public may review the federal regulations.     • Item 5 provides that each driver is subject to certain testing for drug and alcohol usage as detailed by the Federal Transit Administration (FTA). This item changes the word “required” to “detailed” since the FTA does not require preemployment alcohol testing. All other tests listed in subrule 911.6(1) are required by the FTA. Preemployment alcohol testing is optional for employees of public transit systems.     • Item 6 requires that each new driver complete a course of instruction approved by the Iowa Department of Education in the time period required by Iowa Code section 321.376. The amendments comply with the changes made in Iowa Code section 321.376.     • Item 7 allows a driver who is in training to be licensed with a commercial learner’s permit as long as the driver abides by the restrictions in rule 761—607.20(321).     • Item 8 adds new subrule 911.6(7), which requires each driver who transports students to undergo a physical examination by a certified medical examiner who is listed on the National Registry of Certified Medical Examiners in accordance with Iowa Code section 321.375(1)“d” and with Iowa Department of Education rules. This item also requires the driver to annually submit the signed medical examiner’s certificate to the driver’s employer.     • Item 9 removes outdated language and requires that buses used for school transportation incorporate a rear emergency exit door.     • Item 10 concerns passenger restraint/protection devices and corrects the wording of Standard No. 225 to read: Child Restraint Anchorage Systems.     • Item 11 adds new subrule 911.7(6), which requires that, when a public transit system purchases a used vehicle from another public transit system, the previous owner’s Iowa Department of Education’s bus inspection stickers be removed. This item also states that if the purchasing public transit system plans to use the vehicle for school transportation service, a new inspection must be performed on the vehicle.     • Item 12 removes unnecessary language.     • Item 13 eliminates the required use of a prescribed form created by the Department when maintenance personnel annually inspect a vehicle. Each mechanic or dealership where inspections are completed likely has its own form and therefore the need for a specific form was removed.     • Item 14 adds the option of a mobile data terminal tablet as an item of equipment used to communicate between the vehicle and the regional transit system’s base of operations. Many regional transit agencies utilize this technology, connected by cellular service, to communicate with the driver. This item also requires fire extinguishers to be inspected and maintained in accordance with standards set by the National Fire Protection Association. These standards mirror those required of Iowa school buses as detailed in 281—Chapter 44 of the Iowa Department of Education’s rules. The National Fire Protection Association’s standard for portable fire extinguishers may be accessed with a free login to the Association’s website. Item 14 also requires that the following additional equipment be on board public transit vehicles transporting school children: a seatbelt web cutter, roadside reflective triangles, an operable flashlight and a reflective vest. These items are required of all public transit vehicles, regardless of whether the vehicle is transporting school children or not, but the Iowa Department of Education is in agreement with listing these items in this chapter to define expectations. Flashlights must be on board vehicles when the vehicle is in use, whether assigned to the vehicle or to the driver. Often, during compliance review checks, flashlights have been found to contain nonworking batteries; therefore the word “operable” was included to ensure that the flashlights are in working condition at all times.     • Item 15 states that every driver must make a complete stop before driving across the tracks of any railroad crossing, in accordance with Iowa Code section 321.343. Iowa Code section 321.343 was amended, and the Department made changes to the rule to refer to these requirements.     • Item 16 requires the driver to perform posttrip inspections that include a walk-through to the back of the vehicle to ensure no sleeping or hiding children are left behind. Children, especially younger students, are small and can be difficult to see in a rearview mirror of a vehicle.     • Item 17 amends the chapter’s implementation sentence to add a reference to Iowa Code section 321.375, which concerns school bus drivers’ qualifications and grounds for suspension.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3534C. No public comments or requests for oral presentations were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 13, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend subrule 911.1(2) as follows:    911.1(2) Information.  Information and forms may be obtained from theOffice of Public Transit, Iowa Department of Transportation, Office of Public Transit, 800 Lincoln Way, Ames, Iowa 50010; telephone (515)239-1875(515)233-7870; or the department’s website at www.iowadot.gov.

        ITEM 2.    Amend rule 761—911.2(321,324A), definitions of “Automobile,” “Multipurpose vehicle,” “Regional transit system” and “Student,” as follows:        "Automobile" means a motor vehicle, except a motorcycle or motorized bicycle, designed primarily to carry nine persons or less,the same as defined in Iowa Code section 321.1.        "Multipurpose vehicle" means a motor vehicle designed to carry not more than ten persons, and constructed either on a truck chassis or with special features for occasional off-road operation,the same as defined in Iowa Code section 321.1.        "Regional transit system" means a regional transit system designated underthe same as defined in Iowa Code section 324A.1and all subcontracted providers to the designated regional transit system. It does not mean an urban transit system designated under that section.        "Student" means a person attending a public or nonpublic school, grades prekindergarten through high school, including a Head Start participant.

        ITEM 3.    Adopt the following new definition of “Public transit system” in rule 761—911.2(321,324A):        "Public transit system" means the same as defined in Iowa Code section 324A.1.

        ITEM 4.    Amend rule 761—911.5(321) as follows:

    761—911.5(321) Adoption of federal regulations.      911.5(1) Code of Federal Regulations.  The department of transportation adopts the following portions of the October 1, 20062017, Code of Federal Regulations, which are referenced throughout this chapter:    a.    49 CFR Part 38, Americans with Disabilities Act (ADA) Accessibility Specifications for Transportation Vehicles.    b.    49 CFR Part 571, Federal Motor Vehicle Safety Standards.    c.    49 CFR Part 655, Prevention of Alcohol Misuse and Prohibited Drug Use in Transit Operations.    911.5(2) Obtaining copies of regulations.  Copies of these regulations are available from the state law library or through the Internet at http://www.dot.govonline through the U.S. Government Publishing Office at www.ecfr.gov.

        ITEM 5.    Amend subrule 911.6(1) as follows:    911.6(1) FTA drug and alcohol testing.  Each driver is subject to the following testing for drug and alcohol usage as requireddetailed by the Federal Transit Administration in 49 CFR Part 655, including:    a.    Preemployment testing.    b.    Reasonable suspicion testing.    c.    Postaccident testing.    d.    Random testing.    e.    Return to duty testing.    f.    Follow-up testing.

        ITEM 6.    Amend subrule 911.6(2) as follows:    911.6(2) Training.  Each new driver must,before or within the first six months of assignment and at least every 1224 months thereafter, complete a course of instruction approved by the department of education, in accordance with Iowa Code section 321.376.

        ITEM 7.    Amend subrule 911.6(5) as follows:    911.6(5) Driver licensing.  Each driver must be licensed appropriately for the size and type of vehicle used as provided in Iowa Code section 321.189. A Class A, B or C commercial driver’s license with passenger endorsement may be required.A driver may operate the vehicle for purposes of training if the driver has the appropriate commercial learner’s permit as defined in 761—Chapter 607, and the restrictions in rule 761—607.20(321) shall apply. If a commercial driver’s license is not required, a Class D (chauffeur) license with passenger endorsement is required.

        ITEM 8.    Adopt the following new subrule 911.6(7):    911.6(7) Physical fitness.  Each driver who transports students must undergo a physical examination by a certified medical examiner who is listed on the National Registry of Certified Medical Examiners in accordance with Iowa Code section 321.375(1)“d” and with department of education rule 281—43.15(285) or 281—43.17(285). Annually, the driver must submit the signed medical examiner’s certificate to the driver’s employer.

        ITEM 9.    Amend subparagraph 911.7(1)"b" as follows:    (1)   Standard No. 217, Bus Emergency Exits and Window Retention and Release. Buses purchased after January 1, 2000,utilized for school transportation shall incorporate a rear emergency exit door in meeting this standard.

        ITEM 10.    Amend paragraph 911.7(2)"f" as follows:    f.    Standard No. 225, Child Restraint AnchoringAnchorage Systems.

        ITEM 11.    Adopt the following new subrule 911.7(6):    911.7(6) Transfer to another public transit system.  When a public transit system purchases a used vehicle from another public transit system, the previous owner’s department of education’s bus inspections stickers must be removed. If the purchasing public transit system plans to use the vehicle for school transportation service, a new inspection must be performed on the vehicle.

        ITEM 12.    Amend subrule 911.8(2) as follows:    911.8(2) Daily pretrip vehicle inspections.  Drivers of these vehicles must perform daily pretrip vehicle inspections using a form prescribed by the department of transportation. Regional transit systems must retain daily pretrip vehicle inspection reports and documentation of follow-up maintenance for one year.

        ITEM 13.    Amend subrule 911.8(3) as follows:    911.8(3) Annual vehicle inspection.  Maintenance personnel must annually inspect each vehicle using a form prescribed by the department of transportation. Regional transit systems must retain annualvehicle inspection formsrecords for one year.

        ITEM 14.    Amend rule 761—911.9(321) as follows:

    761—911.9(321) Safety equipment.  Regional transit system vehicles assigned to provide school transportation service must carry the following safety equipment:    911.9(1) Communication equipment.  Each vehicle must be equipped with a two-way radio,or cellular telephone, or mobile data terminal tablet capable of emergency communication between the vehicle and the regional transit system’s base of operations.    911.9(2) First-aid/body fluids cleanup kit(s).  Each vehicle must be equipped with a first-aid kit of sufficient size and content for the capacity of the vehicle and, in addition, be equipped with a body fluid cleanup kit. These may be provided as separate kits or combined into one kit. The contents of the kit(s) must be contained in one or more moisture-proof and dustproof containers mounted in an accessible location within the driver’s compartment and must be removable from the vehicle in an emergency.    911.9(3) Fire extinguisher.  Each bus or school bus must be equipped with a minimum 5-pound capacity, dry chemical fire extinguisher. Each automobile and multipurpose vehicle must be equipped with an extinguisher of at least 2.5-pound capacity. Extinguishers must have a 2A-10BC rating.All fire extinguishers shall be inspected and maintained in accordance with the National Fire Protection Association requirements. The standards for portable extinguishers are available online from the National Fire Protection Association at www.nfpa.org.    911.9(4) Seatbelt web cutter.  A seatbelt web cutter must be mounted or placed within reach of the driver.    911.9(5) Roadside reflective triangles.  Each vehicle must be equipped with roadside reflective triangles for use in case of breakdown or emergency.    911.9(6) Flashlight.  Each vehicle must be equipped with an operable flashlight or each driver must be assigned an operable flashlight to be in the vehicle at all times of operation.    911.9(7) Reflective vest.  Each vehicle must be equipped with a reflective vest or each driver must be assigned a reflective vest that must be in the vehicle at all times of operation. Individual regional transit systems are to establish a policy for when the reflective vests must be worn.

        ITEM 15.    Amend subrule 911.10(4) as follows:    911.10(4) Stops at rail crossings.  Every driver must make a complete stop before crossingdriving across the tracks of any railroad crossing, in accordance with Iowa Code section 321.343. In the case of a bus or school bus, the driver must open the service entrance door, look and listen for approaching trains and proceed to cross the tracks only when the driver can do so safely. No stop is needed where the crossing is posted with an exempt sign.

        ITEM 16.    Amend subrule 911.10(8) as follows:    911.10(8) Posttrip inspection.  After each trip that had students on board, the driver must perform a posttrip inspection of the interior of the vehicle used to transport the students.The posttrip inspection must include a walk-through to the back of the vehicle to ensure that no sleeping or hiding children are left behind.

        ITEM 17.    Amend 761—Chapter 911, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 321.1, 321.189, 321.343,321.375,321.376, 321.377 and 324A.1.    [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3692CTransportation Department[761]Adopted and Filed

    Rule making related to federal transit assistance

        The Department of Transportation hereby amends Chapter 922, “Federal Transit Assistance,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12 and 307A.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 324A.4 and 324A.6.Purpose and Summary    The amendment to this chapter:

  • Reflects the current federal transit program names and updates or includes descriptions of these federal transit funding sources that the Department receives for distribution. Program names and United States Code sections for the former Section 16 and Section 18 of the Federal Transit Act have been updated: Section 16 is renamed Section 5310 and Section 18 is renamed Section 5311. A new paragraph to subrule 922.1(1) detailing the transit capital funding source, Section 5339, has also been added.
  • Updates who is designated by the Governor to administer these federal programs that are subject to review by the Federal Transit Administration (FTA). The Department is responsible for the administration of these transit programs rather than the Transportation Commission. The Transportation Commission’s role is to award funds from these programs when they are not allocated by formula.
  • Makes changes to the subrule concerning the state management plan to reflect the current federal transit programs and current name and date of the Iowa state management plan, to correct the relevant FTA circulars, and to update the Department’s contact information to include the correct office name and add a telephone number and a website address.
    • Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3536C. No public comments or requests for oral presentations were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 13, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making action is adopted:

        ITEM 1.    Amend rule 761—922.1(324A) as follows:

    761—922.1(324A) Projects for nonurbanized areas and private nonprofit transportation providers.      922.1(1) General information.      a.    Section 18 of the Federal Transit Act established a program of federal financial assistance for support of public transportation projects in areas outside urbanized areas of 50,000 or more population as defined by the U.S. Census Bureau.    b.    a.    Section 16 of the same Act5310 of Title 49 United States Code establishedthe enhanced mobility of seniors and individuals with disabilities program, a program of federal financial assistance for support of capital acquisitions for private nonprofit providers of specialized transportation services for elderlyseniors and handicapped personswith disabilities.    b.    Section 5311 of Title 49 United States Code established the formula grants for rural areas program, a program of federal financial assistance for support of public transportation in rural areas with populations of less than 50,000, as defined by the U.S. Census Bureau.     c.    Section 5339 of Title 49 United States Code established the bus and bus facilities program, a program of federal financial assistance for support of capital acquisitions for public transportation providers.     c.    d.    As required by the Federal Transit ActTitle 49 United States Code, the Iowa transportation commissiondepartment has been designated by the governor to administer boththese programs within Iowa, subject to review by the Federal Transit Administration (FTA).    922.1(2) State management plan.      a.    Sections 16 and 185310, 5311 and 5339 of Title 49 United States Code federal transit assistance programs within Iowa shall be administered according to “Iowa’sthe “Iowa State Management Plan for the Section 16 and 18 FTA ProgramsAdministration of Funding and Grants Under the Federal Transit Administration, Sections 5310, 5311, 5316, 5317 and 5339 Programs,” dated July 1, 1993March 2017, which has been prepared by the department and approved by the Federal Transit Administration in conformance with FTA Circulars 9040 and 9070.1C5100.1, 9040.1G and 9070.1G.    b.    Copies of the state management plan are available upon request from: Air and Transit Divisionthe Office of Public Transit, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010; telephone (515)233-7870; or the department’s website at www.iowadot.gov.       This rule is intended to implement Iowa Code chapter 324A.        [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3693CTransportation Department[761]Adopted and Filed

    Rule making related to capital match revolving loan fund

        The Department of Transportation hereby amends Chapter 923, “Capital Match Revolving Loan Fund,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 307.12 and 307A.2 and in 1985 Iowa Acts, chapter 265.State or Federal Law Implemented    This rule making implements, in whole or in part, 1985 Iowa Acts, chapter 265.Purpose and Summary    The Department is adopting amendments to Chapter 923 to update the chapter. The following list explains each amendment:    ● Item 1 updates subrule 923.1(1), which explains the scope of the chapter, to include state-funded capital projects in addition to federally funded capital projects. This change will allow public transit systems to obtain local matching funds required to qualify for capital purchases under state-funded projects. Federal capital projects remain eligible for local matching funds under the Capital Match Revolving Loan Fund. Since fiscal year 2007, the Department has been the recipient of money from the Rebuild Iowa Infrastructure Fund for the Public Transit Infrastructure Grant Program as detailed in Chapter 924. The Rebuild Iowa Infrastructure Fund is to be used to fund public transit vertical infrastructure projects. Making state-funded capital projects eligible through the Capital Match Revolving Loan Fund will ensure that every transit agency can apply for Public Transit Infrastructure Grant Program funds and complete projects in a timely manner. Item 1 also updates subrule 923.1(2) to correct the name of the office responsible for administering this chapter and to add the Department’s website address.    ● Item 2 adds the definitions of “department,” “project” and “public transit system” to the chapter instead of referring the reader to another chapter to find the definitions.    ● Item 3 makes changes to rule 761—923.3(71GA,ch265), which concerns system eligibility criteria, to clarify the language and to coordinate the criteria within the rule with the criteria included in 761—paragraphs 920.5(1)“a,” “b,” and “c.” The Department is removing language concerning use of a centralized accounting system and having one person responsible for managing assets, operations and funding of the system in favor of language requiring compliance with applicable state and federal laws and regulations and the required length of time to keep documentation. The type of accounting system used and number of staff involved at the public transit agency level do not matter so long as the state and federal financial requirements are followed.    ● Item 4 makes changes to rule 761—923.4(71GA,ch265), which concerns project eligibility criteria, to strike a criterion that is no longer applicable concerning federal funding eligibility since the Department now includes state projects funded through the Public Transit Infrastructure Grant Program. This item also makes editorial changes for clarity and consistency and corrects a reference to an Iowa Code citation that defines the term “vanpool.”    ● Item 5 updates rule 761—923.5(71GA,ch265), which concerns procedures, to reflect that a loan request may be for either state or federal funding, to strike the obsolete division name of “air and transit division” and replace it with “department,” to make editorial corrections for readability, and to change “signing” of contracts to “execution” to reflect electronic signature methods. This item also changes the approval decisions from the Transportation Commission to the Department to allow for expediency in providing loans as requests are submitted. Item 5 also removes the following duplicative wording: “Submission may be on an annual or individual basis.” The timing for submitting an application is already explained under subrule 923.5(2) and allows for loan requests to be made annually or at any time a specific need arises.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3535C. No public comments or requests for oral presentations were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Department on February 13, 2018.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rule 761—923.1(71GA,ch265) as follows:

    761—923.1(71GA,ch265) General information.      923.1(1) Scope of chapter.  The general assembly appropriated money from the petroleum overcharge fund to the department to be used as a revolving loan fund for transit capital purchases by public transit systems. The revolving loan fund will enable public transit systems to obtain the matching funds required to qualify for capital purchases understate or federally funded projects. The fund will provide multiyear interest-free loans to public transit systems to allow faster capital acquisitions. Loan recipients shall be required to demonstrate ability to repay the loan from budgeted funds or revenues.    923.1(2) Information.  Information, requestsRequests for information about and for assistance, and answers to questions aboutwith the preparation and submission of loan requests may be obtained by contacting:should be directed to the Office of Public Transportation, Air and Transit DivisionTransit, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010; telephone (515)233-7870.Information is also available on the department’s website at www.iowadot.gov.

        ITEM 2.    Amend rule 761—923.2(71GA,ch265) as follows:

    761—923.2(71GA,ch265) Definitions.  The definitions in rule 761—920.3(324A), Iowa Administrative Code, for “department,” “public transit system,” and “project” shall also apply to this chapter.        "Department" means the Iowa department of transportation.        "Project" means a concerted set of actions that will develop, maintain or improve one or more elements of the public transit system’s service.        "Public transit system" means the same as defined in Iowa Code section 324A.1.

        ITEM 3.    Amend rule 761—923.3(71GA,ch265) as follows:

    761—923.3(71GA,ch265) System eligibility.  A public transit system is eligible to request a capital assistance loan from the revolving loan fund if itprovided that the public transit system complies with all of the following criteria:    923.3(1)   It uses a centralized accounting system that maintains primary documentation for all revenue and expensesThe transit system abides by all applicable state and federal laws and regulations.    923.3(2)   One person is responsible for managing the assets, operations, and funding of the systemThe transit system maintains primary documentation for all revenues and expenses for a period of at least three years.    923.3(3)   ItThe transit system maintains itsthe system’s policies, routes, schedules, fare structure, and budget in a manner that encourages public review, responsiveness to user concerns, energy conservation, and fiscal solvency.

        ITEM 4.    Amend rule 761—923.4(71GA,ch265) as follows:

    761—923.4(71GA,ch265) Project eligibility.      923.4(1)   A project is eligible if it meets all of the following criteria:    a.    ItThe project is a transit-related project for a capital purchase, e.g., new or replacement vehicles, facilities, or both.    b.    It qualifies for federal funding approval which includes meeting the federal spare vehicle ratio requirement.    c.    b.    ItThe project meets an identifiable transit need that has been included in the public transit system’s planning or programming document.    d.    c.    ItThe project is part of a statewide program of transit projects which has been adopted by the transportation commission.    e.    d.    The local funding needed for the project justifiably exceeds the public transit system’s annual capital match funding capability.    923.4(2)   A project to purchase vans for a vanpool, as defined in Iowa Code subsection 325.1(9)section 325A.12, may be submitted by an individual or a group through the appropriate public transit system. A vanpool project is eligible for an interest-free loan from the revolving loan fund only after funds for all other projects have been allocated.

        ITEM 5.    Amend rule 761—923.5(71GA,ch265) as follows:

    761—923.5(71GA,ch265) Procedure.      923.5(1) Federal fundingFunding request.  The public transit system shall submit ana funding application for federal funding approval of the proposed project to either the air and transit divisiondepartment or to the Federal Transit Administration, as required by the type of funding requested.    923.5(2) Loan request.  The public transit system shall normally submit a request for a revolving fund loan to the air and transit divisiondepartment when the annual grant application is made, but may submit a request at any time if a specific need arises. The request shall include, but not be limited to, the following topics and documents:    a.    A description and cost estimate of the proposed project.    b.    An explanation of the benefits, including projected energy conservation benefits, to be gained from the project.    c.    An explanation and justification of need for the loan.    d.    A proposed schedule of when funds will be needed for the project.    e.    A proposed loan repayment plan with schedule and source of funds.    923.5(3) Criteria for selection.  The air and transit divisiondepartment shall review each loan request and shall evaluate the projects for funding. Based on the following criteria (not listed in order of preferencein no particular order), preference shall be given to projects that:    a.    Foster coordination among transit services, such as a ground transportation center, a joint maintenance facility, or cooperative vehicle usage.    b.    Enhance local or regional economic development, such as a transit mall, passenger shelter facilities, or vehicles for extension of services.    c.    Increase federal funding to the state, such as accelerating purchase of replacement vehicles.    d.    Extend services to the transportation disadvantaged.    e.    Promote energy conservation, such as fuel efficiency.    f.    Require the loan as only a portion of the local matching funds required.    923.5(4) Approval.  Based on available funds, the air and transit divisiondepartment shall approve loans for projects meeting the criteria in subrule 923.4(1) or shall submit recommended loan projects meeting the criteria in subrule 923.4(2) to the transportation commission for approval. Submission may be on an annual or an individual basisrule 761—923.4(71GA,ch265).    923.5(5) Agreement.  Upon approval by the transportation commission, the air and transit divisiondepartment shall prepare a loan contract and send it to the public transit system for signing. The signed contract shall be returned to the air and transit division for signing by the departmentexecution.    923.5(6) Default.  If a public transit system fails to make a loan payment as agreed in the contract, the air and transit divisiondepartment may, at its option, deduct the amount of anypast due loan payment past due from state transit assistance payments allocated to that transit system.        [Filed 2/14/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3694CUtilities Division[199]Adopted and Filed

    Rule making related to cogeneration and small power production

        The Utilities Board hereby amends Chapter 15, “Cogeneration and Small Power Production,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 17A.4 and chapter 476.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 476.58.Purpose and Summary    This rule making sets the standards for safe installation and operation of interconnections between distributed general facilities and electric distribution facilities.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 3, 2018, as ARC 3538C.     The Iowa Association of Electric Cooperatives (IAEC); MidAmerican Energy Company (MidAmerican); the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice; and Interstate Power and Light Company (IPL) filed statements of position.  While expressing general appreciation for the Board’s rule-making efforts, IAEC identified minor inconsistencies between proposed paragraph 15.10(1)“a” and Chapter 45 of the Board’s administrative rules, which the Board has corrected in this adopted rule making, and expressed confusion over the last paragraph of new 15.10(3)“b.” MidAmerican and OCA suggested a nonsubstantive change to subrule 15.10(5), which the Board has addressed in this rule making. IPL expressed support for the Board’s revision to the definition of “disconnection device,” which was corrected prior to publication of the Notice to mirror the definition in Chapter 45.    The Board issued an order adopting amendments on February 12, 2018.  The order is available on the Board’s electronic filing system at efs.iowa.gov under Docket No. RMU-2016-0006. Nonsubstantive changes were made to update IEEE code citations and to provide consistency with Chapter 45.Adoption of Rule Making    This rule making was adopted by the Utilities Board on February 12, 2018.Fiscal Impact     After analysis and review of this rule making, no fiscal impact is anticipated. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Chapter-specific waiver provisions are unnecessary as any person may apply for a waiver of any Board rule under rule 199—1.3(17A,474,476).Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Adopt the following new definitions of “Disconnection device,” “Distributed generation facility” and “Electric meter” in rule 199—15.1(476):        "Disconnection device" means a lockable visual disconnect or other disconnection device capable of isolating, disconnecting, and de-energizing the residual voltage in a distributed generation facility.        "Distributed generation facility" means a qualifying facility, an AEP facility, or an energy storage facility.        "Electric meter" means a device used by an electric utility that measures and registers the integral of an electrical quantity with respect to time.

        ITEM 2.    Amend rule 199—15.10(476) as follows:

    199—15.10(476) Standards for interconnection, safety, and operating reliability.  For purposes of this rule, “electric utility” or “utility” means both rate-regulated and non-rate-regulated electric utilities.    15.10(1) Acceptable standards.  The interconnection of qualifying facilities and AEPdistributed generation facilities and associated interconnection equipment to an electric utility system shall meet the applicable provisions of the publications listed below:    a.    Standard for Interconnecting Distributed Resources with Electric Power Systems, ANSI/IEEEIEEE Standard 1547-2003. For guidance in applying IEEE Standard 1547, the utility may refer to:    (1)   IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems—IEEE Standard 519-1992519-2014; and    (2)   IEC/TR3 61000-3-7 Assessment of Emission Limits for Fluctuating Loads in MV and HV Power Systems.    b.    Iowa Electrical Safety Code, as defined in 199—Chapter 25.    c.    National Electrical Code, ANSI/NFPA 70-201170-2014.    15.10(2) Modifications required.  Rescinded IAB 7/23/03, effective 8/27/03.    15.10(3) Interconnection facilities.      a.    The utility may require the distributed generation facility to have the capability to be isolated from the utility, either by means of a lockable, visible-break isolation device accessible by the utility, or by means of a lockable isolation device whose status is indicated and is accessible by the utility. If an isolation device is required by the utility, the device shall be installed, owned, and maintained by the owner of the distributed generation facility and located electrically between the distributed generation facility and the point of interconnection. A draw-out type of circuit breaker accessible to the utility with a provision for padlocking at the drawn-out position satisfies the requirement for an isolation device.A distributed generation facility placed in service after July 1, 2015, is required to have installed a disconnection device. The disconnection device shall be installed, owned, and maintained by the owner of the distributed generation facility and shall be easily visible and adjacent to an interconnection customer’s electric meter at the facility. Disconnection devices are considered easily visible and adjacent: for a home or business, up to ten feet away from the meter and within the line of sight of the meter, at a height of 30 inches to 72 inches above final grade; or for large areas with multiple buildings that require electric service, up to 30 feet away from the meter and within the line of sight of the meter, at a height of 30 inches to 72 inches above final grade. The disconnection device shall be labeled with a permanently attached sign with clearly visible letters that gives procedures/directions for disconnecting the distributed generation facility.    (1)   If an interconnection customer with distributed generation facilities installed prior to July 1, 2015, adds generation capacity to its existing system that does not require upgrades to the electric meter or electrical service, a disconnection device is not required, unless required by the electric utility’s tariff. The customer must notify the electric utility before the generation capacity is added to the existing system.    (2)   If an interconnection customer with distributed generation facilities installed prior to July 1, 2015, upgrades or changes its electric service, the new or modified electric service must meet all current utility electric service rule requirements.    b.    For all distributed generation installations, the customer shall be required to provide and place a permanent placard no more than ten feet away from the electric meter. The placard must be visible from the electric meter. The placard must clearly identify the presence and location of the disconnection device for the distributed generation facilities on the property. The placard must be made of material that is suitable for the environment and must be designed to last for the duration of the anticipated operating life of the distributed generation facility. If no disconnection device is present, the placard shall state “no disconnection device”.If the distributed generation facility is not installed near the electric meter, an additional placard must be placed at the electric meter to provide specific information regarding the distributed generation facility and the disconnection device.    b.    c.    The interconnection shall include overcurrent devices on the facility to automatically disconnect the facility at all currents that exceed the full-load current rating of the facility.    c.    d.    FacilitiesDistributed generation facilities with a design capacity of 100 kilowatts or less must be equipped with automatic disconnection upon loss of electric utility-supplied voltage.    d.    e.    Those facilities that produce a terminal voltage prior to the closure of the interconnection shall be provided with synchronism-check devices to prevent closure of the interconnection under conditions other than a reasonable degree of synchronization between the voltages on each side of the interconnection switch.    15.10(4) Access.  If an isolation device is required by the utility, both the operator of the qualifying facility or AEP facility and the utility shall have access to the isolation device at all times. AnIf a disconnection device is required, the operator of the distributed generation facility, the utility, and emergency personnel shall have access to the disconnection device at all times. For distributed generation facilities installed prior to July 1, 2015, an interconnection customer may elect to provide the utility with access to an isolationa disconnection device that is contained in a building or area that may be unoccupied and locked or not otherwise accessible to the utility by installing a lockbox provided by the utility that allows ready access to the isolationdisconnection device. The lockbox shall be in a location determined by the utility, in consultation with the customer, to be accessible by the utility. The interconnection customer shall permit the utility to affix a placard in a location of the utility’s choosing that provides instructions to utility operating personnel for accessing the isolationdisconnection device. If the utility needs to isolate the distributed generation facility, the utility shall not be held liable for any damages resulting from the actions necessary to isolate the generation facility.    15.10(5) Inspectionsand testing.  The operator of the qualifying facility or AEPdistributed generation facility shall adopt a program of inspectionand testing of the generator and its appurtenances and the interconnection facilities in order to determine necessity for replacement and repair.Such a program shall include all periodic tests and maintenance prescribed by the manufacturer. If the periodic testing of interconnection-related protective functions is not specified by the manufacturer, periodic testing shall occur at least once every five years. All interconnection-related protective functions shall be periodically tested, and a system that depends upon a battery for trip power shall be checked and logged. The operator shall maintain test reports and shall make them available upon request by the electric utility. Representatives of the utility shall have access at all reasonable hours to the interconnection equipment specified in subrule 15.10(3) for inspection and testingwith reasonable prior notice to the applicant.    15.10(6) Emergency disconnection.  In the event that an electric utility or its customers experience problems of a type that could be caused by the presence of alternating currents or voltages with a frequency higher than 60 Hertz, the utility shall be permitted to open and lock the interconnection switch pending a complete investigation of the problem. Where the utility believes the condition creates a hazard to the public or to property, the disconnection may be made without prior notice. However, the utility shall notify the operator of the qualifying facility or AEPdistributed generation facility by written notice and, where possible, verbal notice as soon as practicable after the disconnections.    15.10(7) Notification.  When the distributed generation facility is placed in service, owners of interconnected distributed generation facilities are required to notify local fire departments via U.S. mail of the location of distributed generation facilities and the associated disconnection device(s). The owner is required to provide any information related to the distributed generation facility as reasonably required by that local fire department including but not limited to:    a.    A site map showing property address; service point from utility company; distributed generation facility and disconnect location(s); location of rapid shutdown and battery disconnect(s), if applicable; property owner’s or owner’s representative’s emergency contact information; utility company’s emergency telephone number; and size of the distributed generation facility.    b.    Information to access the disconnection device.    c.    A statement from the owner verifying that the distributed generation facility was installed in accordance with the current state-adopted National Electrical Code.    15.10(8) Disconnections.  If an interconnection customer fails to comply with the foregoing requirements of this rule, the electric utility may require disconnection of the applicant’s distributed generation facility until the facility complies with this rule. The disconnection process shall be specified in individual electric utility tariffs or in the interconnection agreement. If separate disconnection of only the distributed generation facility is not feasible or safe, the customer’s electric service may be disconnected as provided in 199—Chapter 20.    15.10(9) Reconnections.  If a customer’s distributed generation facility or electric service is disconnected due to noncompliance with this rule, the customer shall be responsible for payment of any costs associated with reconnection once the facility is in compliance with the rules.        [Filed 2/12/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3695CUtilities Division[199]Adopted and Filed

    Rule making related to nonutility services

        The Utilities Board hereby amends Chapter 34, “Nonutility Service,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 17A.4, 474.5 and 476.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 476.2, 476.73, 476.80 and 546.7.Purpose and Summary    This rule making identifies and updates or eliminates rules that are outdated or inconsistent with statutes and other administrative rules.  Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 22, 2017, as ARC 3457C.     On December 12, 2017, the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice, filed a statement indicating that OCA had no objection to the proposed amendment. Also on December 12, 2017, Interstate Power and Light Company (IPL) and MidAmerican Energy Company (MidAmerican) (collectively the Joint Utilities) filed a statement objecting to the proposed amendment that would adopt a revised definition, in terms of 60 percent of gross revenue, of the “engaged primarily” standard for a competitor’s eligibility for access to certain utility services. In particular, the Joint Utilities argued that the Board’s proposed amendment is unnecessary since they claim that the current rule language is “entirely consistent with Iowa Code §476.80 because it mirrors the language found therein and does not warrant a change.” They further argued that the proposed redefinition of the “engaged primarily” standard in terms of a percentage of gross business revenue is inconsistent with their business practices. The Board considered the comments but found that the 60 percent threshold was a clearer guideline than the current rule.    The Board issued an order adopting the amendment on February 12, 2018. The order is available on the Board’s electronic filing system at efs.iowa.gov under Docket No. RMU-2016-0039. The Board adopted the amendment as published under Notice of Intended Action.    Adoption of Rule Making    This rule making was adopted by the Utilities Board on February 12, 2018.Fiscal Impact    After analysis and review of this rule making, the Board concludes that the amendment will have no effect on the expenditure of public moneys within the State of Iowa. Jobs Impact    After analysis and review of this rule making, the Board concludes that the amendment will not have a detrimental effect on employment in Iowa. Waivers    Chapter-specific waiver provisions are unnecessary since any person may apply for waiver of any Board rule under rule 199—1.3(17A,474,476). Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making action is adopted:

        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.        [Filed 2/12/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.    ARC 3696CVeterinary Medicine Board[811]Adopted and Filed

    Rule making related to veterinary technician examination

        The Iowa Board of Veterinary Medicine hereby amends Chapter 8, “Auxiliary Personnel,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 169.5.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 169.9.Purpose and Summary    The amendments allow the examinations for veterinary technicians to be offered more frequently than annually.  The fee for the examination has been changed from $25 plus a $10 administrative fee to a fee up to $45 as set by the Board plus an administrative charge set by the Board.  Applicants would be limited to five attempts to obtain a passing score, unless the Board gives approval for an additional attempt.  Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on January 17, 2018, as ARC 3563C. No public comments were received. One change from the Notice was made. The fee for the veterinary technician examination was reduced from “up to $50” to “up to $45.”Adoption of Rule Making    This rule making was adopted by the Board on February 22, 2018.Fiscal Impact     The average number of applicants testing is 70, and the Board does not have immediate plans to increase the fee for the examination. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 811—Chapter 14. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on April 18, 2018.    The following rule-making actions are adopted:

        ITEM 1.    Amend rules 811—8.2(169) and 811—8.3(169) as follows:

    811—8.2(169) Registration of veterinary technicians.  All veterinary technicians shall be under the direct control of the board and shall be registered with the state veterinarian, bureau of animal industry, Iowa department of agriculture and land stewardship. Each veterinary technician must pass both a written and practical testthe veterinary technician national examination and a veterinary technician state examination as approved by the board. Applications for registration shall be obtained from and remitted to the board. Successful candidatesApplicants who have passed both examinations shall be issued a certificate by the board stating that the named candidate is registered as a veterinary technician.

    811—8.3(169) Examination.  The veterinary technician state examination shall be given at least once annually at a site or sites to be designated by the board at least 60 days before the date of the examination. The board may provide for additional veterinary technician state examinations as deemed appropriate. In the event the board provides for additional examinations, the site or sites of the examination shall be designated by the board at least 60 days prior to the date of the examination.    8.3(1)   An application fee of $25in an amount determined by the board not to exceed $45 shall accompany the application to take the examinationveterinary technician state examination; and boththe fee and the application must be received by the board at least 6030 days before the examination. An additional fee shall be submitted for theveterinary technician national board written examination as provided by thewhen a professional examination service, whenis utilized by the board as part of their examination process, which shall be the fees charged for the examination by the professional examination service plus $10 for the costs of administration. Examinations shall be given annually in June at a site to be designated by the board at least 30 days before the date of the examinationThe additional fee shall be the charges for the examination by the professional examination service plus administrative costs in an amount determined by the board. The feefor the veterinary technician state examination may be waived for qualifying military service personnel upon request.    8.3(2)   An applicant who fails to earn a passing score on the veterinary technician state examination shall be entitled to retake the examination not earlier than 90 days since the applicant last took the examination. The applicant must submit a new application and the application fee in accordance with subrule 8.3(1) to retake the veterinary technician state examination. An applicant is limited to five total attempts at the veterinary technician state examination; any additional applications to retake the examination beyond the five allowable attempts may be considered by the board and may be granted at the board’s discretion.       This rule is intended to implement Iowa Code sections 169.5(8), 169.9, 169.12 and 272C.4.

        ITEM 2.    Amend 811—Chapter 8, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 17A.3, 169.4, 169.5, 169.9,169.12, 169.20 and 272C.4.    [Filed 2/22/18, effective 4/18/18][Published 3/14/18]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/14/18.
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