ARC 9881C

ARC 9881C

TRANSPORTATION DEPARTMENT[761]

Notice of Intended Action

Proposing rulemaking related to tourist-oriented directional signing
and providing an opportunity for public comment

    The Transportation Department hereby proposes to amend Chapter 119, “Tourist-Oriented Directional Signing,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is proposed under the authority provided in Iowa Code section 321.252.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code section 321.252.

Purpose and Summary

    This proposed rulemaking removes gender identity from the list in the applicable rule for which compliance is required concerning business eligibility for participation in the Tourist-Oriented Directional Sign (TODS) program. This rulemaking implements 2025 Iowa Acts, Senate File 418 (Senate File 418), which removes gender identity from the list of protected classes in Iowa Code chapter 216.

    After public comment, this proposed rulemaking also removes the requirement that “CLOSED” panels be placed on the TODS signs during the off-season when the destination is not open to the public or when the hours of operation are below the minimum threshold for qualifying purposes. 

Regulatory Analysis

    A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on October 15, 2025. A public hearing was held on the following date(s):

     ?   November 4, 2025

    The Department received a comment from business owner Nicole Claeys of Red Granite Farms that the program requirements should be more accommodating for seasonal businesses. This could take the form of lowering the minimum hours of operation (currently set at 20 hours per week) or not requiring the placement of “CLOSED” panels over signs when businesses may still be open but operating under the minimum threshold. Some seasonal businesses, such as produce stands, have varied hours depending upon the growing season and availability of fresh produce. If the sign displays “CLOSED,” most motorists will assume that means the business is closed. The Department has received similar comments in the past regarding the use of the “CLOSED” panels for businesses that have off-season limited hours or special openings for a weekend.

    Before addressing the use of the “CLOSED” panels, the Department will address the issue of lowering the minimum hours of operation for qualification purposes. The current standard of 20 hours per week was reduced from 40 hours per week in early 2020, after a multiagency committee arrived at a consensus in a December 17, 2019, meeting arranged by the Department. Further reductions do not seem warranted if the tourists are to have any chance of finding it open.

    That said, the Department does acknowledge that the use of “CLOSED” panels has been a consistent cause of tension over the years between the Department and seasonal businesses that are sporadically open in the off-season. Furthermore, the installation and removal of the “CLOSED” panels requires frequent work orders for field staff, and the enforcement of the regulation requires monitoring of business operating times.

    The Department proposes now to eliminate subrule 119.5(4), no longer requiring the use of “CLOSED” panels for seasonal businesses. This decision is supported by the fact that many tourists use social media or websites to check operating hours, and, if not, the current minimum operating hours of 20 hours per week already build in a certain degree of chance on finding the destination open.

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 761—Chapter 11.

Public Comment

     Any interested person may submit written comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on January 27, 2026. Comments should be directed to:

Public Hearing

    Public hearings at which persons may present their views orally will be held as follows:

    Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

    Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing impairments, should contact Ryan Pell and advise of specific needs.

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.  Amend subrule 119.3(1) as follows:

    119.3(1) The destination is open to the general public for a minimum of four days per week and 20 hours per week, year-round or during the normal season for the destination. These hours are exclusive of any hours of operation that are by appointment, reservation or membership. The hours are conspicuously posted on the premises except for destinations that are open 24 hours per day.

    ITEM 2.  Amend subrule 119.3(9) as follows:

    119.3(9) The destination complies with all applicable laws concerning public accommodations without regard to age, race, creed, color, sex, sexual orientation, gender identity, national origin, religion or disability.

    ITEM 3.  Amend subrule 119.5(1) as follows:

    119.5(1) Installation and maintenance of tourist-oriented directional signs. Except as provided in subrule 119.5(4), the The department will fabricate and perform the installation, maintenance, removal and replacement of tourist-oriented directional signs that are located within the right-of-way.

    a. and b. No change.

    ITEM 4.  Rescind and reserve subrule 119.5(4).

    ITEM 5.  Amend 761—Chapter 119, implementation sentence, as follows:

These rules are intended to implement Iowa Code section 321.252 as amended by 2024 Iowa Acts, Senate File 2385, section 317.