ARC 9440C - Iowa Administrative Rules

Adopted and Filed

Revocation, suspension, and nonrenewal of license for failure to pay state liabilities, ch 15

Untitled document

ARC 9440C

NATURAL RESOURCES DEPARTMENT[561]

Adopted and Filed

Rulemaking related to failure to pay state liabilities

The Department of Natural Resources (Department) hereby rescinds Chapter 15, “Revocation, Suspension, and Nonrenewal of License for Failure to Pay State Liabilities,” Iowa Administrative Code, and adopts a new chapter with the same title.

Legal Authority for Rulemaking

This rulemaking is adopted under the authority provided in Iowa Code section 272D.8.

State or Federal Law Implemented

This rulemaking implements, in whole or in part, Iowa Code chapter 272D.

Purpose and Summary

New Chapter 15 sets forth the rules on collecting debts owed to the State from persons who have licenses with the Department. This chapter is procedural in nature and required by law. It describes how the Department passes along the Iowa Department of Revenue’s notice of an outstanding state liability obligation and associated certificate of noncompliance, and how the certificate can be challenged.

The Department reviewed prior Chapter 15 consistent with Executive Order 10 and removed redundant statutory language and other outdated provisions.

Public Comment and Changes to Rulemaking

Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on January 8, 2025, as ARC 8641C. A public hearing was held on the following date(s):

●January 30, 2025

●January 31, 2025

No one attended the public hearings. No public comments were received. No changes from the Notice have been made.

Adoption of Rulemaking

This rulemaking was adopted by the Department on June 30, 2025.

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 561—Chapter 10.

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 August 27, 2025.

The following rulemaking action is adopted:

ITEM 1.Rescind 561—Chapter 15 and adopt the following new chapter in lieu thereof:

CHAPTER 15

REVOCATION, SUSPENSION, AND NONRENEWAL OF LICENSE
FOR FAILURE TO PAY STATE LIABILITIES

561—15.1(272D) Purpose and use. This chapter is intended to help collect liabilities of the state or a state agency from persons who have licenses with the department. This chapter shall apply to all licenses issued, renewed or otherwise authorized by the department.

561—15.2(272D) Definitions. For purposes of this chapter, the following definitions shall apply, in addition to those contained in Iowa Code section 272D.1:

“Collecting agency” means the centralized collection unit of the department of revenue.

“Department” means the department of natural resources.

“License” means a license, certification, registration, permit, approval, renewal or other similar authorization issued to a person by the department that evidences the admission to, or granting of authority to engage in, a profession, occupation, business, industry, or recreation, including those authorizations set out in Iowa Code chapters 321G, 321I, 455B, 455C, 455D, 456A, 459, 459A, 461A, 462A, 481A, 481B, 481C, 482, 483A, 484B and 484C.

“Notice of intent” means a notice sent to a licensee indicating the department’s intent to suspend, revoke, or deny renewal or issuance of a license.

“Withdrawal of a certificate of noncompliance” means a document provided by the collecting agency certifying that the certificate of noncompliance is withdrawn and that the department may proceed with issuance, reinstatement, or renewal of a person’s license.

561—15.3(272D) Requirements of the department.

15.3(1) Records.

a.The department shall collect and maintain records of its licensees consistent with Iowa Code section 272D.8.

b.The records shall be made available to the collecting agency so that the collecting agency may match to the records the names of persons with any liabilities placed with the collecting agency for collections. The records must be submitted in an electronic format and updated on a quarterly basis.

15.3(2) Certificate of noncompliance. Upon receipt of a certificate of noncompliance from the collecting agency, the department shall initiate rules and procedures for the suspension, revocation, or denial of issuance or renewal of a license to a person.

15.3(3) Notice of intent. The department shall provide to a person a notice of intent to suspend, revoke or deny issuance or renewal of the person’s license in accordance with Iowa Code chapter 272D. The suspension, revocation, or denial shall be effective no sooner than 30 days following the issuance of the notice of intent to the person. The notice shall state all of the following:

a.That the department has received a certificate of noncompliance from the collecting agency and intends to suspend, revoke or deny issuance or renewal of a person’s license;

b.That the person must contact the collecting agency to schedule a conference or to otherwise obtain a withdrawal of a certificate of noncompliance;

c.That the department will revoke, suspend or deny issuance or renewal of the person’s license unless a withdrawal of a certificate of noncompliance is received from the collecting agency within 30 days from the date of the notice of intent;

d.That in the event the department’s rules and procedures conflict with the additional rules and procedures under this chapter, the rules and procedures of this chapter shall apply;

e.That mistakes of fact in the amount of the liability owed and the person’s identity may not be contested to the department; and

f.That the person may request a district court hearing as outlined in Iowa Code section 272D.9.

15.3(4) Withdrawal. Upon receipt of a withdrawal of a certificate of noncompliance from the collecting agency, the department shall immediately reinstate, renew, or issue a license if the person is otherwise in compliance with the department’s requirements.

561—15.4(272D) No administrative appeal of the department’s action; district court hearing. Pursuant to Iowa Code section 272D.8, a person does not have a right to a hearing before the department to contest the department’s action under this chapter but may request a court hearing pursuant to Iowa Code section 272D.9.

These rules are intended to implement Iowa Code chapter 272D.

[Filed 7/1/25, effective 8/27/25]

[Published 7/23/25]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 7/23/25.