ARC 0405D

ARC 0405D

INSPECTIONS AND APPEALS DEPARTMENT[481]

Adopted and Filed Emergency

Rulemaking related to contested cases before the plumbing and mechanical systems board

    The Department of Inspections, Appeals, and Licensing hereby amends Chapter 427, “Plumbing and Mechanical Systems Board—Administrative and Regulatory Authority,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is adopted under the authority provided in Iowa Code section 105.4.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, 2026 Iowa Acts, Senate File 2463.

Purpose and Summary

    Pursuant to 2026 Iowa Acts, Senate File 2463, section 5, subsection (2)“b,” this rulemaking has been determined to be necessary to enhance procedures related to contested cases before the Plumbing and Mechanical Systems Board. This rulemaking supplements the Uniform Rules on Agency Procedure in a way that assists both licensees and the Board and modifies the Board’s administrative and regulatory authority rules to supplement the agency’s uniform rules on contested case provisions found in 481—Chapter 506.

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 June 30, 2026, because 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.

Adoption of Rulemaking

    This rulemaking was adopted by the Department on May 19, 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 0406D to allow for public comment.

Fiscal Impact

     This rulemaking has no fiscal impact to the State of Iowa in an amount requiring a fiscal impact statement pursuant to Iowa Code section 17A.4(4).

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 June 30, 2026.

    The following rulemaking action is adopted:

    ITEM 1.  Adopt the following new rule  481—427.6(17A):

481—427.6(17A) Contested cases. Contested cases are governed by 481—Chapter 506.

    ITEM 2.  Adopt the following new rule  481—427.7(17A):

481—427.7(17A) Decisions.

    427.7(1) Final decisions. When a quorum of the board presides over the reception of evidence at a hearing, its decision is a final decision. A majority of the members constitutes a quorum. Final decisions will be served on the parties in accordance with 481—subrule 506.13(2). Final decisions of the board, including consent agreements and consent orders, are public documents pursuant to Iowa Code chapter 22.

    427.7(2) Proposed panel decisions.

    a.  Panel of specialists. When a panel of three specialists presides over the hearing, the panel will issue a proposed decision that will include findings of fact but will not include conclusions of law or any recommendation for or against the discipline for a licensee. A proposed decision of a panel of specialists, together with a transcript of the proceedings and the exhibits presented, will be reviewed by the board within 30 days of the date the proposed decision was issued.

    b.  Panel of board members. When a panel of three or more board members presides over the hearing, the panel will issue a proposed decision that will include proposed findings of fact, conclusions of law, and the order. A proposed panel decision will be reviewed by the board within 30 days of the date the proposed panel decision was issued. A proposed panel decision becomes a final decision without further proceedings unless appealed in accordance with paragraph 427.7(2)“c.”

    c.  Appeal of proposed panel decisions. A proposed panel decision pursuant to paragraph 427.7(2)“a” or “b” may be appealed to the full board by either party by serving on the executive officer, either in person or by certified mail, a notice of appeal within 30 days after service of the proposed decision on the appealing party. The notice of appeal shall specify the party initiating the appeal, the proposed decision or order appealed, the specific findings or conclusions to which exception is taken and any other exceptions to the decision or order, the relief sought, and the grounds for relief.

    (1)  Following receipt of a notice of appeal, the board will enter an order establishing a schedule for submission of briefs and oral argument. The parties shall serve their briefs on the board and shall furnish an additional copy to each party by first-class mail. Briefs will cite any applicable legal authority and specify relevant portions of the record in that proceeding.

    (2)  Oral argument will be heard by the board unless waived by both parties. The time granted each party for oral argument will be established by the board.

    (3)  The record on appeal will be the entire record made before the hearing panel or administrative law judge.

    d.  Confidentiality. At no time prior to the release of the final decision by the board shall a proposed decision be made public or distributed to any person other than the parties.

    e.  Requests to present additional evidence. A party may request the taking of additional evidence after the issuance of a proposed decision only by establishing that:

    (1)  The evidence is material; and

    (2)  The evidence arose after the completion of the original hearing; or

    (3)  Good cause exists for failure to present the evidence at the original hearing; and

    (4)  The party has not waived the right to present additional evidence.

A written request to present additional evidence must be filed with the notice of appeal or by a nonappealing party within 14 days of service of the notice of appeal. The board may remand a case to the hearing panel for further hearing or may itself preside at the taking of additional evidence.

    ITEM 3.  Adopt the following new rule  481—427.8(17A):

481—427.8(17A) Client notification. Within 15 days (or such other time period specifically ordered by the board) of the licensee’s receipt of the board’s final decision, whether entered by consent or following hearing, which suspends or revokes a license or accepts a voluntary surrender of a license to resolve a disciplinary case, the licensee shall notify in writing all current clients of the fact that the license has been suspended, revoked or voluntarily surrendered. Such notice shall advise clients to obtain alternative professional services. Within 30 days of receipt of the board’s final order, the licensee shall file with the board copies of the notices sent. Compliance with this requirement is a condition for an application for reinstatement.

[Filed Emergency 6/8/26, effective 6/30/26]

[Published 7/8/26]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 7/8/26.