ARC 0299D

ARC 0299D

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Adopted and Filed Emergency

Rulemaking related to contested cases

    The Workforce Development Department hereby adopts new Chapter 2506, “Contested Cases,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is adopted under the authority provided in Iowa Code chapter 17A.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code chapter 17A.

Purpose and Summary

    This rulemaking modifies the Uniform Rules on Agency Procedure related to contested cases (7—Chapter 2506) to ensure that contested cases arising from Workforce Innovation and Opportunity Act programs, Registered Apprenticeship programs, and Vocational Rehabilitation programs are governed by the applicable federal regulations (20 CFR Part 683, Subpart F; 29 CFR Parts 29 and 30; and 34 CFR Part 361) and not the contested case provisions of 7—Chapter 2506.

    The new Uniform Rules on Agency Procedure are effective as of January 13, 2026, which means there is an inconsistency between the contested case provisions of the Uniform Rules on Agency Procedure and the procedures laid out in 20 CFR Part 683, Subpart F; 29 CFR Parts 29 and 30; and 34 CFR Part 361. Earlier adoption of this rulemaking will allow the Department to ensure any contested case coming before the Department has clear direction as to the appropriate procedural requirements.

Reason for Adoption of Rulemaking Without
Prior Notice and Opportunity for Public Participation

    Pursuant to Iowa Code section 17A.4(3), the Department finds that notice and public participation are unnecessary or impractical because statute so provides. 2026 Iowa Acts, Senate File 2463, section 5, authorizes emergency rulemaking to provide for additions, exceptions, or amendments to the Uniform Rules on Agency Procedure.

Reason for Waiver of Normal Effective Date

    Pursuant to Iowa Code section 17A.5(2)“b”(1)(a), the Department also finds that the normal effective date of this rulemaking, 35 days after publication, should be waived and the rulemaking made effective on May 4, 2026, because 2026 Iowa Acts, Senate File 2463, section 5, authorizes emergency rulemaking for the purpose stated above.

Adoption of Rulemaking

    This rulemaking was adopted by the Department on May 4, 2026.

Concurrent Publication of Notice of Intended Action

    In addition to its adoption on an emergency basis, this rulemaking has been initiated through the normal rulemaking process and is published herein under Notice of Intended Action as ARC 0298D to allow for public comment.

Fiscal Impact

     This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 7—Chapter 2504.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking 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 rulemaking became effective on May 4, 2026.

    The following rulemaking action is adopted:

    ITEM 1.  Adopt the following new  871—Chapter 2506:

CHAPTER 2506

CONTESTED CASES

The Uniform Rules on Agency Procedure, 7—Chapters 2500 through 2506, are rules generally applicable to agencies pursuant to Iowa Code section 17A.24. Additions, exceptions, or amendments to the corresponding chapter are below.

871—2506.1(17A) Scope and applicability. 7—Chapter 2506 applies to contested case proceedings conducted by the agency, including vendor appeals. However, 7—Chapter 2506 does not apply to the extent that a contested case being addressed by the agency is governed by 20 CFR Part 683, Subpart F, as amended to May 4, 2026; 29 CFR Parts 29 and 30 as amended to May 4, 2026; 34 CFR Part 361 as amended to May 4, 2026; or 871—Chapter 26.

[Filed Emergency 5/4/26, effective 5/4/26]

[Published 5/27/26]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 5/27/26.