ARC 0687D

ARC 0687D

COMMUNICATIONS NETWORK, IOWA[751]

Adopted and Filed

Rulemaking related to rates and rate disputes

    The Iowa Communications Network (ICN) hereby rescinds Chapter 12, “Rates and Rate Disputes,” Iowa Administrative Code, and adopts a new Chapter 12 with the same title.

Legal Authority for Rulemaking

    This rulemaking is adopted under the authority provided in Iowa Code chapter 8D.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code chapter 8D and Executive Order 10.

Purpose and Summary

    The chapter describes the methodology for establishing self-sustaining rates for services on the statewide network, outlines notification procedures for rate adjustments, and provides a clear process for resolving billing disputes. This chapter was reviewed pursuant to Executive Order 10. As a result, the ICN removed redundant and obsolete language and provides transparent guidance on rates and rate disputes.

Public Comment and Changes to Rulemaking

    Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on September 2, 2026, as ARC 0512D. A public hearing was held on the following date(s):

     ?   September 30, 2026

     ?   October 1, 2026

    No one attended the public hearings.

    John Richardson of the Iowa Hospital Association submitted a written comment at the Notice of Intended Action stage recommending 90 days’ advance notice for a rate increase. 

    A change from the Notice has been made to increase the notice period from 30 days to 90 days, giving authorized users more notice of an established rate increase.

Adoption of Rulemaking

    This rulemaking was adopted by the ICN Executive Director on October 7, 2026.

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 ICN for a waiver of the discretionary provisions, if any, pursuant to 751—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 will become effective on December 2, 2026.

    The following rulemaking action is adopted:

    ITEM 1.  Rescind 751—Chapter 12 and adopt the following new chapter in lieu thereof:

CHAPTER 12

RATES AND RATE DISPUTES

751—12.1(8D) Rate methodology.

    12.1(1) Cost recovery. The commission shall establish rates for all services based on the actual cost of operation, maintenance, administration, and capital investment required to provide the service. Rates shall be designed to be self-sustaining and consistent with the state’s financial capacity.

    12.1(2) Educational priority. In establishing rates for educational users, the commission shall ensure that rural communities have access to services comparable to those provided in urban areas, consistent with Iowa Code section 8D.3(1)“a.”

    12.1(3) Federal and health users. Rates for federal agencies, hospitals, and physician clinics shall be established at a level that ensures, at a minimum, there is no state subsidy related to the cost of the connection or use of the network, consistent with Iowa Code section 8D.3(3)“i.”

751—12.2(8D) Rate increase notice. The commission shall provide notice to authorized users of any general rate increase at least 90 days prior to the effective date of the increase.

751—12.3(8D) Rate dispute resolution.

    12.3(1) Review. An authorized user who believes the user has been billed an incorrect rate or charge may request a review by the executive director. The request must be in writing and include the specific invoice and the basis for the dispute.

    12.3(2) Determination. The executive director or designee shall review the dispute and issue a written decision to the authorized user.

    12.3(3) Appeal. If the authorized user is dissatisfied with the executive director’s decision, the user may file a notice of appeal in accordance with the contested case procedures in 7—Chapter 2506.

These rules are intended to implement Iowa Code section 8D.3.

[Filed 10/7/26, effective 12/2/26]

[Published 10/28/26]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 10/28/26.