Debarment from participation in authority programs and transactions, ch 2
ARC 9458C
ECONOMIC DEVELOPMENT AUTHORITY[261]
Notice of Intended Action
Proposing rulemaking related to debarment from participation in authority programs and transactions and providing an opportunity for public comment
The Economic Development Authority hereby proposes to adopt new Chapter 2, “Debarment from Participation in Authority Programs and Transactions,” Iowa Administrative Code.
Legal Authority for Rulemaking
This rulemaking is proposed under the authority provided in Iowa Code section 15.106E.
State or Federal Law Implemented
This rulemaking implements, in whole or in part, Iowa Code section 15.106E.
Purpose and Summary
The Authority proposes to adopt a new Chapter 2 to implement Iowa Code section 15.106E as enacted by 2024 Iowa Acts, Senate File 2289. The new chapter establishes the factors the Authority will consider and the process that will be followed to prohibit bad actors from participating in Authority programs and transactions.
Regulatory Analysis
A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on May 14, 2025. A public hearing was held on the following date(s):
●June 3, 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 Authority for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199.
Public Comment
Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Authority no later than 4:30 p.m. on August 26, 2025. Comments should be directed to:
Lisa Connell |
Public Hearing
No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rulemaking 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 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).
The following rulemaking action is proposed:
ITEM 1.Adopt the following new261—Chapter 2:
CHAPTER 2
DEBARMENT FROM PARTICIPATION IN AUTHORITY PROGRAMS AND TRANSACTIONS
261—2.1(15) Definitions.
“Affiliate” means any entity that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with another entity or person. “Control” as used in this definition means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an enterprise through ownership, by contract or otherwise. A voting interest of 10 percent or more creates a rebuttable presumption of control.
“Authority” means the economic development authority created in Iowa Code section 15.105.
“Debar” or “debarment” means action taken by the authority to prohibit a person from receiving an award of financial assistance or from being selected as a vendor pursuant to Iowa Code section 15.106E and this chapter.
“Director” means the director of the authority.
“Person” means the same as defined in Iowa Code section 4.1(20).
“Principal” means an officer, director, or owner.
“Respondent” means a person the authority intends to debar or has debarred.
“Vendor” means a person that provides goods or services to the authority.
261—2.2(15) Factors considered.
2.2(1) The authority may debar a person in any of the circumstances listed in Iowa Code section 15.106E(1). The authority will consider the following factors to determine whether debarment is warranted:
a.Whether the person had effective standards of conduct and internal control systems in place at the time the cause fordebarmentoccurred or has adopted such procedures.
b.Whether the person brought the cause fordebarmentto the attention of the authority in a timely manner.
c.Whether the person has fully investigated the circumstances surrounding the cause fordebarmentand, if so, has made the result of the investigation available to the authority.
d.Whether the person cooperated fully with the authority or other government agencies during any investigation or court or administrative action related to the cause for debarment.
e.Whether the person has paid or has agreed to pay all applicable criminal, civil, and administrative liability relating the cause for debarment, including any investigative or administrative costs incurred by the authority, and has made or agreed to make full restitution as applicable.
f.Whether the person has taken appropriate disciplinary action against the individuals responsible for the cause fordebarment.
g.Whether the person has implemented or agreed to implement remedial measures, including any identified by the authority.
h.Whether the person has had adequate time to eliminate the circumstances that led to the cause fordebarment.
i.Whether the person or relevant principals in an organization recognize and understand the seriousness of the misconduct giving rise to the cause fordebarment.
j.Whether the federal government, another state, or another state agency has issued a debarment or other prohibition comparable to debarment based on the same or similar conduct that constitutes cause for debarment by the authority.
k.Any other factors deemed relevant to the cause for debarment by the authority.
2.2(2) The existence or nonexistence of any mitigating factors or remedial measures, including those set forth in subrule 2.2(1), is not necessarily determinative of whether the authority will debar a person.
261—2.3(15) Debarment procedure.
2.3(1) Upon receipt of information that a person has engaged in conduct that could constitute cause for debarment, the director will determine whether to debar a person based on all information available to the authority or whether additional information is required to make such a determination.
2.3(2) If the director determines debarment is warranted, the person and any affiliates, principals, or employees to be debarred willbe given prompt notice in writing of the following:
a.That the person is debarred and the identity of any affiliates, principals, or employees who are debarred;
b.The circumstance(s) in Iowa Code section 15.106E(1) relied on by the authority to imposedebarment;
c.The conduct or information upon which the debarment is based;
d.The period ofdebarment, including effective dates; and
e.The effect of the proposed debarment, including identification of authority programs or transactions to which the debarment applies.
2.3(3) If the director determines that additional information is required, the person and any affiliates, principals, or employees who may be debarred willbe given prompt notice in writing of the following:
a.Thatdebarmentis being considered;
b.The circumstance(s) in Iowa Code section 15.106E(1) relied on by the authority to proposedebarment;
c.The conduct or information upon which the proposed debarment is based;
d.The period ofproposed debarment, including effective dates;
e.The effect of the proposed debarment, including identification of authority programs or transactions to which the debarment may apply; and
f.The additional information sought by the authority to determine whether debarment is warranted, when the respondent must provide such information, and the effect of failure to provide such information to the satisfaction of the authority.
2.3(4) After following the procedure identified in subrule 2.3(3), the director will promptly notify in writing the person and any affected affiliates, employees, or principals whether debarment is imposed. If debarment is imposed, notification will be provided in accordance with subrule 2.3(2).
2.3(5) The authority may, in its discretion, enter into an agreement with a person establishing terms and conditions for continued or future participation in authority programs or transactions in lieu of debarment.
261—2.4(15) Period and scope of debarment.
2.4(1) Debarment will be for a period commensurate with the acts or omissions of the person to be debarred. A person will not be debarred for an initial period that exceeds three years. The authority may impose an additional period of debarment if, prior to the expiration of an initial period of debarment, the authority determines an additional period of debarment is warranted.
2.4(2) A person may be debarred from one or more authority programs or transactions or from all authority programs and transactions.
261—2.5(15) Request for review and response.
2.5(1) A person that has been debarred by the authority may request a review of the authority’s determination pursuant to Iowa Code section 15.106E(3). The request may include any information relevant to demonstrate the authority’s determination was based on a clear error of material factor or law or that the authority’s determination was arbitrary, capricious, or an abuse of discretion.
2.5(2) The authority will issue a decision on the request for review in accordance with Iowa Code section 15.106E(3).
261—2.6(15) Request for reinstatement after debarment.
2.6(1) A person that has been debarred may submit a request for reinstatement during the period of debarment if:
a.New information becomes available that is relevant to the cause for debarment and that was not previously discoverable;
b.Criminal charges or civil or administrative actions related to the cause for debarment have been dismissed or a criminal conviction or civil judgment related to the cause for debarment has been reversed;
c.A debarment or comparable prohibition imposed by the federal government, another state, or another state agency, upon which the authority debarment was based, has been reversed;
d.A bona fide change in ownership or management of the person debarred has occurred; or
e.The person is able to supply other proof that the causes for debarment have been eliminated.
2.6(2) A request for reinstatement must be submitted to the director. The petition must be accompanied by written evidence that supports the request.
2.6(3) The authority will issue a decision on a request for reinstatement within 60 calendar days of the receipt of the request. The authority may approve, deny, or modify the debarment based on all information available to the authority and based upon the factors identified in rule 261—2.2(15). The authority shall issue its decision in writing and provide written notice of the decision to the person and any affected affiliates, principals, or employees.
261—2.7(15) Additional remedies. The authority may impose additional consequences for a cause for debarment that are allowed under any authority programs in which a debarred person is participating or any existing agreements between the authority and a debarred person.
These rules are intended to implement Iowa Code section 15.106E.
This notice is open for comments for 19 more day(s). If you'd like to comment, select or click the text you wish to comment on in the document, or click the button below to make a general comment about the document. Comments will be collected through 8/26/2025
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The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 8/6/2025.
The following administrative rule references were added to this document. You may click a reference to view related notices.
Rule 261-2.1 Rule 261-2.2 Rule 261-2.2(1) Rule 261-2.3 Rule 261-2.3(2) Rule 261-2.3(3) Rule 261-2.4 Rule 261-2.5 Rule 261-2.6 Rule 261-2.7The following Iowa code references were added to this document. You may click a reference to view related notices.
Iowa Code 15.105 Iowa Code 15.106E Iowa Code 15.106E(1) Iowa Code 15.106E(3) Iowa Code 4.1(20)The following keywords and tags were added to this document. You may click a keyword to view related notices.
Additional remedies Debarment procedure Definitions Factors considered Period and scope of debarment Request for reinstatement after debarment Request for review and response© 2025 State of Iowa | Privacy Policy