^. r

Published Biweekly VOLUME XIII NUMBER 1 July II, 1990 Pages 1 to 128 CONTENTS IN THIS ISSUE Pages 12 to 98 include ARC 1014A to ARC 1073A

AGRICULTURE AND LAND STEWARDSHIP ENVIRONMENTAL PROTECTION DEPARTMENTS] COMMISSION[567] Notice, Dairy Industry Commission rescinded, ch 1 NATURAL RESOURCES DEPARTMENT[561] “umbrella” ARC 1046A...... 12 Notice, Requirements for properly plugging Notice, Pilot lamb and wool education project, 15.2, abandoned wells, 39.8(3), 39.8(4) ARC 1052A...... 29 15.3(1) ARC 1057A...... 12 Notice, Wastewater treatment and disposal, Notice, Registration of Iowa-foaled horses and amendments to chs 60 and 61 ARC 1054A...... 30 Iowa-whelped dogs, amendments to ch 62 Filed, Requirements relating to solid waste, ARC 1048A...... 12 amendments to chs 100,101 ARC 1063A...... 77 Notice, Dairy farm water, 68.35 ARC 1034A...... 14 Filed, Fees for disposal of solid waste sanitary Notice, Weights and measures, 85.11(1), 85.12(3), landfills, amendments to ch 109 ARC 1062A...... 81 85.48(15) ARC 1047A...... 15 Filed, PCBs removal and disposal from white goods ALL AGENCIES prior to processing, ch 118 ARC 1053A...... 82 Agency identification numbers ...... 10 EXECUTIVE COUNCIL[420] Administrative procedure changes...... 5 Filed, Inheritance tax payments, ch 11 ARC 1035A ... 84 COLLEGE AID COMMISSION[283] EXECUTIVE DEPARTMENT EDUCATION DEPARTMENT[281] “umbrella” Proclamations of disaster emergency...... 99 Notice, Iowa grant program, ch 27 ARC 1028A...... 15 HUMAN SERVICES DEPARTMENTS 1] Notice, Granting assistance, 41.7(7)“ab” DAIRY INDUSTRY COMMISSIONED)] ARC 1039A...... 32 Notice, ch 1, rescinded ARC 1046A...... 12 Notice, Medicaid—change in reimbursement ECONOMIC DEVELOPMENT, IOWA benefits; ambulance service determined to be DEPARTMENT OF[261] medically necessary, amendments to chs 52, 78, Notice, Work force investment program, ch 18 79, 82,150,156,177 ARC 1043A...... 33 ARC 1072A...... 17 Notice, Conditions of eligibility, 75.16 ARC 1041A ... 33 Notice, Community development block grant Notice, Community mental health center—general nonentitlement program, amendments to ch 23 standards, 78.16(6)“c” ARC 1040A...... 34 ARC 1066A...... 17 Notice Terminated, Policies relating to providers of Notice, Iowa rental rehabilitation program, medical and remedial care, amendments to ch 79 amendments to ch 26 ARC 1067A...... 23 ARC 1064A...... 34 Notice, Rural community 2000 program, Notice, Policies relating to providers of medical and amendments to ch 28 ARC 1070A ...... 25 remedial care, amendments to ch 79 ARC 1065A ... 35 Notice, Value-added agricultural products and ' Notice, Intermediate care facilities, amendments to processes financial assistance program, ch 29 ch 81 ARC 1033A...... 39 ARC 1068A...... 26 Notice, Child day care services and funds, Filed Emergency, Work force investment program, 130.3(l)“d,” 153.5(6) ARC 1020A...... 40 ch 18 ARC 1071A...... 54 Notice, Day care services, 130.3(6) ARC 1038A...... 40 Filed, Economic betterment program, amendments Notice, Payment for foster care and foster parent to ch 22 ARC 1069A...... 75 training, 156.18 ARC 1037A...... 40 Notice, Child care resource and referral grants EMPLOYMENT APPEAL BOARD[486] program, amendments to ch 159 ARC 1024A...... 41 INSPECTIONS AND APPEALS DEPARTMENT[481] “umbrella" Notice, Adolescent pregnancy grants, amendments Filed Emergency, Work product defined; to 163.3(3) ARC 1022A...... 41 construction contractor registration appeals, 2.1, Notice, Child day care grants, amendments to ch 168 7.1 ARC 1036A...... 56 ARC 1017A...... 41 Contents continued on page 3 Published Under Authority of Iowa Code Section 17A.6

PREFACE The Iowa Administrative Bulletin is published in pamphlet form biweekly pursuant to Iowa Code Chapter 17A and contains Notices of Intended Action on rules, Filed and Filed Emergency rules by state agencies [continue to refer to General Information for drafting style and form]. It also contains Proclamations and Executive Orders of the Governor which are general and permanent in nature; Economic Impact Statements to proposed rules and filed emergency rules; Objections filed by Administrative Rules Review Committee, Governor or the Attorney General; and Delay by the Committee of the effective date of filed rules; Regulatory Flexibility Analyses and Agenda for monthly Administrative Rules Review Committee meetings. Other “materials deemed fitting and proper by the Administrative Rules Review Committee,” include summaries of Attorney General Opinions and Supreme Court Decisions. The Bulletin may also contain Public Funds Interest Rates [453.6]; Workers’ Compensation Rate Filings [515A.6(7)]; Usury [535.2(3)“a”]; and Agricultural Credit Corporation Maximum Loan Rates [535.12], _

PLEASE NOTE: Italics indicate new material added to existing rules; strike through letters indicate deleted material.

The ARC number which appears before each agency heading is assigned by the Administrative Rules Coordinator for identification purposes and should always be used when referring to this item in correspondence and other communications. The Iowa Administrative Code Supplement is also published every other week in loose-leaf form, pursuant to Iowa Code section 17A.6. It contains replacement pages for the Iowa Administrative Code. These replacement pages incorporate amendments to existing rules, new rules or emergency or temporary rules which have been filed with the administrative rules coordinator and published in the Bulletin.

PHYLLIS BARRY, Administrative Code Editor Phone: (515) 281-3355 DONNA WATERS, Administrative Code Assistant (515) 281-8157

SUBSCRIPTION INFORMATION Iowa Administrative Bulletin The Iowa Administrative Bulletin is sold as a separate publication and may be purchased by subscription or single copy. All subscriptions will expire on June 30 of each year. Subscriptions must-be paid in advance and are prorated quarterly as follows: First quarter July 1, 1990, to June 30,1991 $199.00 plus $7.96 sales tax Second quarter October 1,1990, to June 30,1991 $149.15 plus $5.96 sales tax Third quarter January 1, 1991, to June 30,1991 $103.35 plus $4.13 sales tax Fourth quarter April 1, 1991, to June 30,1991 $ 49.75 plus $1.99 sales tax Single copies may be purchased for $6.90 plus $0.27 tax. Back issues may be purchased if the issues are available. •

Iowa Administrative Code The Iowa Administrative Code and Supplements are sold in complete sets and subscription basis only. All subscriptions for the Supplement (replacement pages) must be for the complete year and will expire on June 30 of each year. Prices for the Iowa Administrative Code and its Supplements are as follows: Iowa Administrative Code - $906.30 plus $36.25 sales tax (Price includes 16 volumes of rules and index, plus a one-year subscription to the Code Supplement and the Iowa Administrative Bulletin. Additional or replacement binders can be purchased for $3.90 plus $0.16 tax.) Iowa Administrative Code Supplement - $315.50 plus $12.61 sales tax (Subscription expires June 30,1991)

AH checks should be made payable to the Iowa State Printing Division. Send all inquiries and subscription orders to: Iowa State Printing Division . - Grimes State Office Building Des Moines, IA 50319 Phone:(515)281-8796 ! 1 1 IAB 7/11/90 CONTENTS 3

HUMAN SERVICES DEPARTMENT[441] (cont’d) JOB SERVICE DIVISION[345] Filed, Granting assistance, general provisions, 41.3, EMPLOYMENT SERVICES DEPARTMENT[341] “umbrella” 41.7, 130.3(3) ARC 1018A...... 85 Filed, Employer records and reports, employer’s Filed Emergency, Medicaid — change in contribution and charges, claims and benefits, reimbursement benefits; ambulance service ° benefit payment control, amendments to chs 2 to 5 determined to be medically necessary, ARC 1073A...... '...... 94 amendments to chs 52, 78, 79, 82,150,156,177 LOTTERY DIVISI0N[705] ARC 1042A...... 57 Filed Emergency, commodity distribution program, REVENUE AND FINANCE DEPARTMENT[701] “umbrella” 73.4(3)“d”(2) ARC 1025A...... 62 Notice Terminated, amendments to ch 10 Filed Emergency, Conditions of eligibility, ARC 1029A...... 42 75.1(28)“j,” “k” ARC 1014A...... 62 PERSONNEL DEPARTMENT[581] Filed Emergency, Conditions of eligibility, Notice, Pay; grievances and appeals, 4.5(3), 4.6(3), amendments to ch 75 ARC 1044A...... 63 4.8(3), 12.1(l)“a” ARC 1051A...... 42 Filed, ADC — related Medicaid applications, 76.2(1) PROFESSIONAL LICENSURE DIVISION[645] ARC 1026A...... 86 Filed Emergency, Policies relating to provisions of PUBLIC HEALTH DEPARTMENT[641] “umbrella” medical and remedial care, 79.1(5)“e” Notice, Physical therapy examiners, chs 200, 206, ARC 1027A...... 64 207, 208, rescind ch 200 ARC 1058A...... 43 Filed Emergency, Intermediate care facilities, Filed, Podiatry examiners board, 220.4(2) amendments to ch 81 ARC 1032A...... 65 ARC 1056A...... 95 Filed Emergency, Medicaid waiver services, PUBLIC HEALTH DEPARTMENT[641] 83.2(l)“b” ARC 1015A...... 68 Filed, Advanced emergency medical Filed Emergency, Child day care services and funds, care—enrollment in training program, 132.3, 130.3(l)“d,” 153.5(6) ARC 1019A...... 68 -132.4 ARC 1059A...... 96 Filed Emergency, Child care resource and referral PUBLIC HEARINGS grants program, amendments to ch 159 Summarized list...... t.. 6 ARC 1023A...... 69 Filed Emergency, Adolescent pregnancy grants, PUBLIC SAFETY DEPARTMENT[661] 163.3(3) ARC 1021A...... 71 Filed, Handicapped parking, ch 18 ARC 1055A...... 96 Filed Emergency, Child day care grants program, REVENUE AND FINANCE DEPARTMENT[701] amendments to ch *168 ARC 1016 A...... •...... 72 Notice, Inheritance tax, amendments to ch 86 INDUSTRIAL SERVICES DIVISION[343] ARC 1061A...... i...... 49 EMPLOYMENT SERVICES DEPARTMENT1341] “umbrella” Filed, Assessor education program, amendments to Notice, Dispute resolution for contested cases, 4.39 chs 122 to 125 ARC 1060A...... 98 ARC 1031A ,...... 42 SUPREME COURT Filed Emergency, Dispute resolution for contested Decisions summarized...... 110 cases, 4.40 ARC 1030A...... 74 UTILITIES DIVISION[199] INSURANCE DIVISION[191] COMMERCE DEPARTMENT[181]“umbrella” COMMERCE DEPARTMENT[181] “umbrella” Notice, Utility audit workpapers, 19.2(6), 20.2(6), Filed, Surplus lines requirements, amendments to 21.2(3), 22.2(7) ARC 1045A...... 53 ch 21 ARC 1049A...... 87 Filed, Credit life and credit accident and health insurance, ch 28 ARC 1050A...... 87 4 IAB 7/11/90

Schedule for Rule Making - 1990

FIRST HEARING POSSIBLE FIRST POSSIBLE NOTICE OR ADOPTION ADOPTED POSSIBLE EXPIRATION FILING PUB. COMMENTS DATE PUB. EFFECTIVE OF NOTICE DEADLINE DATE 20 DAYS 35 DAYS DATE DATE 180 DAYS Jan. 5 Jan. 24 Feb. 13 Feb. 28 Mar. 21 Apr. 25 July 23 Jan. 19 Feb. 7 Feb. 27 Mar. 14 Apr. 4 May 9 Aug. 6 Feb. 2 Feb. 21 Mar. 13 Mar. 28 Apr. 18 May 23 Aug. 20 Feb. 16 Mar. 7 Mar. 27 Apr. 11 May 2 June 6 Sep. 3 Mar. 2 Mar. 21 Apr. 10 Apr. 25 May 16 June 20 Sep. 17 Mar. 16 Apr. 4 . Apr. 24 May 9 May 30 July 4 Oct. 1 Mar. 30 Apr. 18 May 8 May 23 June 13 July 18 Oct. 15 Apr. 13 May 2 May 22 June 6 June 27 Aug. 1 Oct. 29 Apr. 27 May 16 June 5 June 20 July 11 Aug. 15 Nov. 12 May 11 May 30 June 19 . July 4 July 25 Aug. 29 Nov. 26 May 25 June 13 July 3 ' July 18 Aug. 8 Sep. 12 Dec. 10 June 8 June 27 July 17 Aug. ■■ 1 Aug. 22 Sep. 26 Dec. 24 June 22 July 11 July 31 Aug. 15 Sep. 5 Oct. 10 Jan. 7 ’91 July 6 July 25 Aug. 14 Aug. 29 Sep. 19 Oct. 24 Jan. 21 ’91 July 20 Aug. 8 Aug. 28 Sep. 12 Oct. 3 Nov. 7 Feb. 4 ’91 Aug. 3 Aug. 22. Sep. 11 Sep. 26 Oct. 17 Nov. 21 ' Feb. 18 ’91 Aug. 17 ' Sep. 5 Sep. 25 Oct. 10 Oct. 31 Dec. 5 Mar. 4 ’91 Aug. 31 Sep. 19 Oct. 9 Oct. 24 Nov. 14 Dec. 19 Mar. 18 ’91 Sep. 14 Oct. 3 Oct. 23 Nov. 7 Nov. 28 Jan. 2 ’91 Apr. 1 ’91 Sep. 28 Oct. 17 Nov. 6 Nov. 21 Dec. 12 Jan. 16 ’91 Apr. 15 ’91 Oct. 12 Oct. 31 Novi 20 Dec. 5 Dec. 26 Jan. 30- ’91 Apr. 29 ’91 Oct. 26 Nov. 14 Dec. 4 Dec. 19 Jan. 9 ’91 Feb. 13 ’91 May 13 ’91 Nov. 9 Nov. 28 Dec. 18 Jan. 2 ’91 Jan. 23 ’91 Feb. 27 ’91 May 27 ’91 Nov. 23 Dec. 12 Jan. 1 ’91 Jan. 16 ’91 Feb. 6 ’91 Mar. 13 ’91 June 10 ’91 Dec. 7 Dec. 26 Jan. 15 ’91 Jan. 30 ’91 Feb. 20 ’91 Mar. 27 ’91 June 24 ’91 Dec. 21 Jan. 9 ’91 Jan. 29 ’91 Feb. 13 ’91 Mar. 6 ’91 Apr. 10 ’91 July 8 ’91 20 days from the publication date is the minimum date for a public hearing or cutting off public comment. 35 days from the publication date is the earliest possible date for the agency to consider a noticed rule for adoption. It is the regular effective date for an adopted rule. 180 days See 17A.4(l)“b.” If the agency does not adopt rules within this time frame, the Notice should be terminated.

PRINTING SCHEDULE FOR IAB ISSUE NUMBER SUBMISSION DEADLINE . ISSUE DATE 2 Friday, July 6,1990 July 25,1990 3 . Friday, July 20,1990 August 8,1990 4 Friday, August 3, 1990 August 22,1990

NOTICE Rules will not be accepted after 12 o’clock noon on the Friday filing deadline days unless prior approval has been received from the Administrative Rules Coordinator’s office. If the filing deadline falls on a legal holiday, submissions made on the following Monday will be accepted. IAB 7/11/90 5

ATTENTION

To: All Agencies

From: Phyllis Barry, Administrative Code Editor Paula Dierenfeld, Administrative Rules Coordinator

Re: Administrative procedures—Revision by 1990 Iowa Acts, Senate File 2280, effective July 1,1990

ARC Number Defined

“ARC number” means the identification number assigned by the governor’s administrative rules coordinator to each rule-making document.

IMPLEMENTATION Statutes

In prescribing style and form, the administrative rules coordinator shall require that the agency include a reference to the statute which the rules are intended to implement.

CITATION of Administrative Rules

The Iowa Administrative Code shall be cited as (agency identification number) I AC (chapter, rule, subrule, lettered paragraph, or numbered subparagraph).

441IAC 79 (Chapter)

441 IAC 79.1(249A) (Rule)

441 IAC 79.1(1) (Subrule)

441 IAC 79.1(l)“a” (Paragraph)

441 IAC 79.1(l)“a”(l) (Subparagraph)

The Iowa Administrative Bulletin shall be cited as IAB (volume), (number), (publication date), (page number), (ARC number).

IAB Vol. XII, No. 23 (5/16/90) p.2050, ARC 872A 6 PUBLIC HEARINGS IAB 7/11/90

To All Agencies: The Administrative Rules Review Committee voted to request that Agencies comply with Iowa Code section 17A.4(l)“b” by allowing the opportunity for oral presentation (hearing) to be held at least twenty days after publication of Notice in the Iowa Administrative Bulletin. DATE AND TIME AGENCY HEARING LOCATION OF HEARING

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENTS] Iowa-foaled horses and Conference Room August 7,1990 Iowa-whelped dogs, Second Floor North 1:30 p.m. amendments to ch 62 Wallace State Office Bldg. IAB 7/11/90 ARC 1048A Des Moines, Iowa Dairy farm water, Conference Room July 31,1990 68.35 First Floor West 10 a.m. IAB 7/11/90 ARC 1034A Wallace State Office Bldg. Des Moines, Iowa

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[2611 Work force investment Department Offices August 7,1990 program, ch 18 200 E. Grand Ave. 10 a.m. to 12 p.m IAB 7/11/90 ARC 1072A Des Moines, Iowa Community development Conference Room — 2nd Floor August 1,1990 block grant nonentitlement 200 E. Grand Ave. 10 a.m. program, amendments to ch 23 Des Moines, Iowa IAB 7/11/90 ARC 1066A Iowa rental rehabilitation Main Conference Room August 2,1990 program, amendments to ch 26 200 E. Grand Ave. 1:30 p.m. IAB 7/11/90 ARC 1067A Des Moines, Iowa Rural community 2000 program, Main Conference Room August 2,1990 amendments to ch 28 200 E. Grand Ave. 10 a.m. IAB 7/11/90 ARC 1070A Des Moines, Iowa Value-added agricultural Main Conference Room August 1,1990 products and processes financial 200 E. Grand Ave. 1:30 to 3:30 p.m. assistance program, ch 29 Des Moines, Iowa IAB 7/11/90 ARC 1068A

EDUCATION DEPARTMENT[281] Open enrollment, ch 17 State Board Room July 12,1990 IAB 6/13/90 ARC 974A Second Floor 10 a.m. (See also ABC 973A) Grimes State Office Bldg. Des Moines, Iowa - Procedures for handling State Board Room July 17,1990 reports of student Second Floor 1 p.m. abuse by school Grimes State Office Bldg. employees, ch 102 Des Moines, Iowa IAB 6/27/90 ARC 989A

ENVIRONMENTAL PROTECTION COMMISSION[567] Controlling pollution, 22.4 Conference Room — 5th Floor July 11,1990 IAB 6/13/90 ARC 963A Wallace State Office Bldg. 2 p.m. Des Moines, Iowa Conference Room July 11, 1990 Municipal Utilities Bldg. 10 a.m. 15 W. 3rd St. - Atlantic, Iowa Oakdale Hall — Room M-113 July 12,1990 Oakdale, Iowa 1 p.m. Requirements for properly Conference Room July 31,1990 plugging abandoned wells, Fifth Floor East 10 a.m. 39.8 900 E. Grand Ave. IAB 7/11/90 ARC 1052A Des Moines, Iowa IAB 7/11/90 PUBLIC HEARINGS 7

Water supplies and operations, Conference Room July 11,1990 amendments to chs 40, 41; Fourth Floor East 10 a.m. new ch 43 Wallace State Office Bldg. IAB 6/13/90 ARC 965A Des Moines, Iowa Denison Community Room July 12,1990 111 N. Main St. 10 a.m. Denison, Iowa Water supply rules — Conference Room July 11,1990 coliform bacteria monitoring Fourth Floor East 10 a.m. requirements, amendments Wallace State Office Bldg. to chs 40, 41 . Des Moines, Iowa IAB 6/13/90 ARC 968A Denison Community Room July 12,1990 111 North Main St. 10 a.m. Denison, Iowa - Scope of title—definitions— Auditorium August 1, 1990 forms—rules of practice; Wallace State Office Bldg. 1 p.m. water quality standards, 900 E. Grand Ave. amendments to chs Des Moines, Iowa 60 and 61 Main Library August 2, 1990 IAB 7/11/90 ARC 1054A 529 Pierce St. 7 p.m. Sioux City, Iowa Main Library August 7,1990 500 1st St. S.E. 7 p.m. Cedar Rapids, Iowa Land application of wastes, Conference Room 4 West July 11, 1990 69.14(l)“c”(l), 121.3 Wallace State Office Bldg. 10 a.m. IAB 6/13/90 ARC 969A Des Moines, Iowa

HUMAN SERVICES DEPARTMENT[441] Other policies relating to District Office August 1,1990 providers of medical City View Plaza 11 a.m. and remedial care, 79.1 1200 University IAB 7/11/90 ARC 1065A Des Moines, Iowa Intermediate care facilities, District Office August 1,1990 amendments to ch 81 City View Plaza 10 a.m. IAB 7/11/90 ARC 1033A Conference Room 100 (See also ARC 1032A herein) 1200 University Des Moines, Iowa Child support Conference Room — 1st Floor July 20, 1990 recovery program, amendments to Hoover State Office Bldg. 10 a.m. chs 95, 96; new ch 98 Des Moines, Iowa IAB 6/27/90 ARC 1000A

INDUSTRIAL SERVICES DIVISION[343] Contested cases, 4.40 Employment Services Bldg. July 31, 1990 IAB 7/11/90 ARC 1031A Stanley Room 10 a.m. (See also ARC 1030A herein) 1000 E. Grand Ave. Des Moines, Iowa

INSURANCE DIVISION[191] Unfair trade practices, Conference Room — 6th Floor July 18, 1990 15.82 Lucas State Office Bldg. 10 a.m. IAB 6/27/90 ARC 993A Des Moines, Iowa

LABOR SERVICES DIVISION[3471 Administration; non-English Division of Labor Services July 19, 1990 speaking employee 1000 East Grand Ave. 9 a.m. services, 1.3, new ch 160 Des Moines, Iowa IAB 6/27/90 ARC 1008A - (See also ARC1007A) General industry Division of Labor Services July 19,1990 safety and health, 1000 East Grand Ave. 9 a.m. 10.20 Des Moines, Iowa IAB 6/27/90 ARC 1009A 8 PUBLIC HEARINGS IAB 7/11/90

LAW ENFORCEMENT ACADEMY[501] Salvage vehicle Conference Room July 17,1990 examinations, Law Enforcement Academy 9:30 a.m. 1.1, new ch 11 Camp Dodge IAB 6/27/90 ARC 985A Johnston, Iowa

NATURAL RESOURCE COMMISSION[571] Motor vehicle operation Conference Room August 6,1990 in streams, new ch 49 Fourth Floor West 1 p.m. IAB 6/27/90 ARC 992A Wallace State Office Bldg. Des Moines, Iowa Trapping limitations, Conference Room July 19,1990 110.5,110.6 Fifth Floor West 1 p.m. IAB 6/27/90 ARC 991A Wallace State Office Bldg. Des Moines, Iowa

PERSONNEL DEPARTMENT[581] Pay; grievances and Director’s Conference Room August 23,1990 appeals, 4.5(3), 4.6(3), Grimes State Office Bldg. 10 a.m. 4.8(3), 12.1(1) E. 14th St. at Grand Ave. IAB 7/11/90 ARC 1051A Des Moines, Iowa

PUBLIC HEALTH DEPARTMENT[641] Graduate nursing Conference Room July 17,1990 grants program, 110.6 Fourth Floor 2:30 p.m. IAB 6/27/90 ARC 1005A Lucas State Office Bldg. Des Moines, Iowa

TRANSPORTATION DEPARTMENT[761] Primary road access Department of Transportation August 7,1990 control, ch 112 Complex IAB 6/13/90 ARC 950A 800 Lincoln Way Ames, Iowa Removal of tracks Department of Transportation August 7,1990 from crossings, Complex ' 800.20 800 Lincoln Way IAB 6/27/90 ARC 984A Ames, Iowa

UTILITIES DIVISION[199] Consumer comment Hearing Room — 1st Floor August 6,1990 hearing options, Lucas State Office Bldg. 10 a.m. 7.7(16) Des Moines, Iowa IAB 6/27/90 ARC 980A Pipeline permits, Hearing Room — 1st Floor August 8,1990 construction, and Lucas State Office Bldg. 10 a.m. safety, amendments to chs 9, 10, Des Moines, Iowa new ch 12 IAB 6/27/90 ARC 978A Utility audit workpapers, Hearing Room — 1st Floor August 21,1990 19.2(6), 20.2(6), 21.2(3), Lucas State Office Bldg. 10 a.m. 22.2(7) Des Moines, Iowa IAB 7/11/90 ARC 1045A IAB 7/11/90 PUBLIC HEARINGS 9

UTILITIES DIVISION[199] (cant’d)

Investigation of Hearing Room — 1st Floor August 23,1990 winter moratorium, Lucas State Office Bldg. 10 a.m. 19.2(5)“j” and “k,” 20.2(5)“j” and “k” Des Moines, Iowa IAB 6/27/90 ARC 979A Audit workpapers, Hearing Room — 1st Floor August 21, 1990 19.2(6), 20.2(6), Lucas State Office Bldg. 10 a.m. 21.2(3), 22.2(7) Des Moines, Iowa IAB 7/11/90 ARC 1045A Class load data, Hearing Room — 1st Floor July 19, 1990 20.10(2)“c,” Lucas State Office Bldg. 10 a.m. 20.13(3)“c” Des Moines, Iowa IAB 6/27/90 ARC 981A Directory assistance Hearing Room — 1st Floor July 18,1990 charging, 22.3(10)“b” Lucas State Office Bldg. 10 a.m. and “c” Des Moines, Iowa IAB 5/30/90 ARC 942A 10 IAB 7/11/90

AGENCY IDENTIFICATION NUMBERS

Due to reorganization of state government by 1986 Iowa Acts, chapter 1245, it was necessary to revise the agency identification numbering system, i.e., the bracketed number following the agency name. “Umbrella” agencies and elected officials are set out below at the left-hand margin in CAPITAL letters. Divisions (boards, commissions, etc.) are indented and set out in lowercase type under their statutory “umbrellas”. Other autonomous agencies which were not included in the original reorganization legislation as “umbrella” agencies are included alphabetically in lowercase type at the left-hand margin, e.g., Beef Industry Council, Iowa [101]. Implementation of reorganization is continuing and the following list will be updated as changes occur: .

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENTS] Agricultural Development Authority[25] Soil Conservation Division[27] ATTORNEY GENERAL[61] AUDITOR OF STATE[81] Beef Industry Council, Iowa[101] Blind, Department For The[lll] CAMPAIGN FINANCE DISCLOSURE COMMISSION[121] CITIZENS’ AIDE[141] CIVIL RIGHTS COMMISSION[161] COMMERCE DEPARTMENT[181] Alcoholic Beverages Division[185] Banking Division[187] Credit Union Division[189] Insurance Division[191] Professional Licensing and Regulation Division[193] Accountancy Examining Board[193A] Architectural Examining Board[193B] Engineering and Land Surveying Examining Board[193C] Landscape Architectural Examining Board[193D] Real Estate Commission[193E] Savings and Loan Division[197] Utilities Division[199] CORRECTIONS DEPARTMENT[201] Parole Board[205] CULTURAL AFFAIRS DEPARTMENT[221] Historical Division[223] Library Division[224] Public Broadcasting Division[225] ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] 'City Development Board[263] Iowa Finance Authority[265] High Technology Council[267] EDUCATION DEPARTMENT[281] Educational Examiners Board[282] College Aid Commission[283] Higher Education Loan Authority[284] Iowa Advance Funding Authority[285] School Budget Review Committee[289] Egg Council[301] ELDER AFFAIRS DEPARTMENT[321] EMPLOYMENT SERVICES DEPARTMENT[341] Industrial Services Division[343] Job Service Division[345] Labor Services Division[347] IAB 7/11/90 AGENCY IDENTIFICATION NUMBERS 11

EXECUTIVE COUNCIL[361] PUBLIC DEFENSE DEPARTMENT[601] - Fair Board[371] Disaster Services Division[607] GENERAL SERVICES DEPARTMENT[401] PUBLIC EMPLOYMENT RELATIONS BOARD[621] Health Data Commission[411] HUMAN RIGHTS DEPARTMENT[421] PUBLIC HEALTH DEPARTMENT[641] Children, Youth, and Families Division[425] Substance Abuse Commission[643] Community Action Agencies Division[427] Professional Licensure Division[645] Deaf Services, Division of[429] Dental Examiners[650] Persons With Disabilities Division[431] Medical Examiners[653] Spanish-Speaking People Division[433] Nursing Board[655] Status of Women Division[435] Pharmacy Examiners[657] HUMAN SERVICES DEPARTMENT[441] INSPECTIONS AND APPEALS DEPARTMENT[481] PUBLIC SAFETY DEPARTMENT[661] Employment Appeal Board[486] Records Commission[671] Foster Care Review Board[489] Racing and Gaming Commission[491] REGENTS BOARD[681] LAW ENFORCEMENT ACADEMY[501] Archaeologist[685] Livestock Health Advisory Council[521] MANAGEMENT DEPARTMENT[541] REVENUE AND FINANCE DEPARTMENT[701] . Appeal Board, State[543] Lottery Division[705] City Finance Committee[545] County Finance Committee[547] SECRETARY OF STATE[721] Narcotics Enforcement Advisory Council[551] Sheep and Wool Promotion Board, Iowa[741] NATURAL RESOURCES DEPARTMENT[561] TRANSPORTATION DEPARTMENT[761] Energy and Geological Resources[565] Railway Finance Authority, Iowa[765] Environmental Protection Commission[567] Natural Resource Commission[571] Preserves, State Advisory Board[575] TREASURER OF STATE[781] PERSONNEL DEPARTMENT[581] Uniform State Laws Commission[791] Petroleum Underground Storage Tank Fund Veterinary-Medicine Board[811] Board, Iowa Comprehensive[591] Voter Registration Commission[821]

RE ORGANIZATION—N OT IMPLEMENTED

Agencies listed below are identified in the Iowa Administrative Code with white tabs. These agencies have not yet implemented government reorganization.

Citizens’ Aide[210] Library Department[560] City Development Board[220] Prison Industries Advisory Board[635] Corrections Department[291] Product Development Corporation[636] o Executive Council[420] Records Commission[710] Iowa Advance Funding Authority[515] Veterans Affairs[841] Iowa Finance Authority[524] 12 NOTICES IAB 7/11/90

ARC 1046A July 31,1990. Such written materials should be directed to Morris Boswell,- Chief of Sheep Bureau, Iowa AGRICULTURE AND LAND Department of Agriculture and Land Stewardship, Henry A. Wallace Building, Des Moines, Iowa 50319. STEWARDSHIP DEPARTMENT^] These rules are intended to implement 1990 Iowa Acts, Notice of Intended Action Senate File 2364, section 3(2), Iowa Code section 159.5(12) Twenty-five interested persons, a governmental subdivision, an agency and Iowa Code Supplement section 99E.32(3)“m.” or an association of 25 or more persons may demand an oral presentation The following amendments are proposed: hereon as provided in Iowa Code §17A.4(1)“6”. ITEM 1. Amend rule 21—15.2(99E), definition of Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any “Grant,” as follows: individual or group, review this proposed action under §17A.8(6) at “Grant” means funds received in 1989 1990 through a regular or special meeting where the public or interested persons may be heard. the Pilot Lamb and Wool Management Education Project pursuant to 19891990 Iowa Acts, House File 785? Senate Pursuant to the authority of Iowa Code section File 2364, section 4(3“m”) 3(2). 159.5(11), the Iowa Department of Agriculture and Land Stewardship gives Notice of Intended Action to rescind Item 2. Amend subrule 15.3(1) to read as follows: 310—Chapter 1, “Dairy Industry Commission,” Iowa 15.3(1) Deadline for submission. Applications must be Administrative Code. postmarked by December 1,19891990, to be considered. The proposed rescission is intended to implement Iowa Item 3. Rescind the implementation clause at the end Code section 179.2 which prescribes that when a national of 21—Chapter 15 and insert the following in lieu promotional order is established by the United States thereof: Department of Agriculture pursuant to the Dairy These rules are intended to implement 1990 Iowa Acts, Product Stabilization Act of 1983, then the Iowa Dairy Senate File 2364, section 3(2), Iowa Code section 159.5(12) Industry Commission shall be suspended. Such a national and Iowa Code Supplement section 99E.32(3)“m.” promotional order is in effect and the Commission has been suspended. Any interested person may make written suggestions or comments on this proposed rescission prior to 4:30 p.m. on Tuesday, July 31, 1990. Such written material should be directed to Ronald R. Rowland, Director of Regulatory Division, Iowa Department of Agriculture and Land Stewardship, Henry A. Wallace Building, Des Moines, Iowa 50319. ARC 1048A The following amendment is proposed: Rescind 310—Chapter 1 in its entirety. " AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT^] Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code §17A.4(1)“6”. Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at a regular or special meeting where the public or interested persons ARC 1057A may be heard. AGRICULTURE AND LAND Pursuant to the authority of Iowa Code sections 99D.22 STEWARDSHIP DEPARTMENTS 1] and 159.5(11), the Iowa Department of Agriculture and Land Stewardship proposes to amend Chapter 62, Notice of Intended Action “Registration of Iowa-Foaled Horses and Iowa-Whelped Twenty-five interested persons, a governmental subdivision, an agency Dogs,” Iowa Administrative Code. or an association of 25 or more persons may demand an oral presentation The proposed rules are intended to clarify the hereon as provided in Iowa Code §17A.4(1)"6”. procedures to be followed in establishing Iowa-foaled Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any horses or Iowa-whelped dogs for purposes of pari-mutuel individual or group, review this proposed action under §17A.8(6) at racing under Iowa Code chapter 99D. a regular or special meeting where the public or interested persons Any interested person may make written suggestions may be heard. or comments on these proposed rules prior to 4:30 p.m. Pursuant to the authority of Iowa Code section on Tuesday, August 7, 1990. Such written material 159.5(11), the Iowa Department of Agriculture and Land should be directed to John Hinshaw, Bureau Chief of Stewardship proposes to amend Chapter 15, “Pilot Lamb the Horse and Dog Breeding Program, Iowa Department and Wool Management Education Project,” Iowa of Agriculture and Land Stewardship, Henry A. Wallace Administrative Code. Building, Des Moines, Iowa 50319. The amendments update the procedure for area A public hearing to receive public comment on the community colleges applying for pilot education projects proposed rules will be held on Tuesday, August 7, 1990, to educate Iowa lamb and wool producers in the at 1:30 p.m. in the Second Floor North Conference Room production and marketing of lamb and wool. of the Henry A. Wallace Building, Des Moines, Iowa. Any interested person may make written suggestions These rules are intended to implement Iowa Code or comments on these proposed rules prior to Tuesday, section 99D.22. IAB 7/11/90 NOTICES 13 AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21] (cant'd)

The following amendments are proposed: ITEM 9. Rescind subrule 62.15(4) and insert in lieu Item 1. Amend rule 21—62.1(99D) by adding the thereof the following: following new definition: 62.15(4) A thoroughbred mare transfer of ownership, “Onionskin” means an original individual greyhound Form M-6, must be submitted to the department when application form of the National Greyhound Association. a thoroughbred mare already in the program is purchased by a new owner. The Form M-6 will provide Item 2. Amend rule 21—62.3(99D), introductory the following information: paragraph, as follows: a. Name of mare; - — 21—62.3(99D) Forms. The following forms to qualify b. Date of transfer; thoroughbred, standardbred and quarterhorses as c. Color of mare; registered and certified Iowa-foaled horses and to qualify d. State registration number; dogs as registered and certified Iowa-whelped dogs are e. National breed registration number; available and can be obtained from the department. The f. Date of sale; forms shall provide for the applicant to certify the g. Name, address, and phone number of seller; truthfulness and accuracy of the information. h. Name, address, and phone number of buyer. Item 3. Amend subrule 62.3(1) by adding the following Item 10. Rescind subrules 62.16(5) and 62.16(6). new paragraph “f” and relettering paragraphs “f” and ITEM 11. Amend subrule 62.22(3) as follows: “g” as “g” and “h,” respectively: 62.22(3) If 51 percent of the new ownership is a bona f. Mare Transfer of Ownership, Form M-6. fide Iowa resident(s) and wishes to qualify the stallion Item 4. Amend 21—Chapter 62 by adding the following as an Iowa stallion, then the new owner(s) must submit new rule: an application for an Iowa Stallion Eligibility Certificate, 21—62.4(99D) Disciplinary procedures. A person accompanied by a feej a copy of the bill of sale and meet shall not knowingly provide false information to the all other department requirements. department. If the department finds that a person ITEM 12. Amend subrule 62.22(4) as follows: knowingly furnished false information to the department 62.22(4) The Iowa Stallion Eligibility Certificate shall relating to the registration of a horse or dog under these be available for inspection by a department inspector on rules, then the department may deny, suspend, or revoke the premises where the stallion stands. all registrations and eligibility certificates by or on ITEM 13. Amend subrule 62.24(1), introductory behalf of the person. paragraph, as follows: Item 5. Amend subrule 62.12(3) as follows: 62.24(1) Such records shall be available to the 62.12(3) If 51 percent of the new ownership is a bona department for inspection by a department inspector and fide Iowa resident(s) and wishes to qualify the stallion shall include the following information: as an Iowa stallion, then the new owner(s) must submit an application for an Iowa Stallion Eligibility Certificate, ITEM 14. Ameijd subrule 62.25(2) as follows: accompanied by a fee; a copy of the bill of sale and meet 62.25(2) After January 1, 1985, eligibility for brood all other department requirements. mare residence shall be achieved by meeting at least one of the following rules: Item 6. Amend subrule 62.12(4) as follows: a. Thirty days’ residency until the foal is inspected 62.12(4) The Iowa Stallion Eligibility Certificate shall by a department inspector, if in foal to a registered Iowa be available for inspection by a department inspector on stallion. the premises where the stallion stands. b. Thirty days’ residency until the foal is inspected Item 7. Amend subrule 62.14(1), introductory para­ by a department inspector for brood mares which are graph, as follows: bred back to registered Iowa stallions. 62.14(1) Such records shall be available to the c. Continuous residency from December 31 until the department for inspection by a department inspector and foal is inspected by a department inspector if the mare shall include the following information: was bred by other than an Iowa registered stallion and which is not bred back to an Iowa registered stallion. Item 8. Amend subrule 62.15(2) as follows: d. The foal shall not be eligible for Iowa-eligibility if 62.15(2) After January 1, 1985, eligibility for brood the mare and foal leave or are removed from the state mare residence shall be achieved by meeting at least before the foal is inspected by a department inspector. one of the following rules: a. Thirty days’ residency until the foal is inspected Item 15. Amend rule "21—62.25(99D) by adding the by a department inspector, if in foal to a registered Iowa following new subrule: stallion. 62.25(4) A standardbred mare transfer of ownership, b. Thirty days’ residency until the foal is inspected Form M-6, must be submitted to the department when by a department inspector for brood mares which are a standardbred mare already in the program is bred back to registered Iowa stallions. purchased by a new owner. The Form M-6 will provide c. Continuous residency from December 31 until the the following information: foal is inspected by a department inspector if the mare a. Name of mare; was bred by other than an Iowa registered stallion and b. Date of transfer; which is not bred back to an Iowa registered stallion. c. Color of mare; d. The foal shall not be eligible for Iowa-eligibility if d. State registration number; the mare and foal leave or are removed from the state e. National breed registration number; before the foal is inspected by a department inspector. f. Date of sale; 14 NOTICES IAB 7/11/90 AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT^!] (cant’d)

g. Name, address, and phone number of seller; Within 15 30 days after litter registration with the h. Name, address, and phone number of buyer. National Greyhound' Association, the original litter acknowledgment must be received by the department. Item 16. Rescind subrules 62.26(5) and 62.26(6). A copy of the owner’s driver’s license, voter registration, Item 17. Amend subrule 62.32(3) as follows: or any other valid proof of residency of all first-time 62.32(3) If 51 percent of the new ownership is a bona litter applicants must accompany the litter acknowledg­ fide Iowa resident(s) and wishes to qualify the stallion ment. Any late litter registrations will be assessed a as an Iowa stallion, then the new owner(s) must submit penalty of $25. Litter registrations over one year six an application for an Iowa Stallion Eligibility Certificate, months old will not be accepted. After the litter accompanied by a feer a copy of the bill of sale and meet registration is received by the department, a department all other department requirements. inspector must inspect the litter. When an application for Item 18. Amend subrule 62.32(4) as follows: individual dog registration is made to the National 62.32(4) The Iowa Stallion Eligibility Certificate shall Greyhound Association, the original registration be available for inspection by a department inspector on certificate (yellow copy) or the onionskin shall be provided the premises where the stallion stands. to the department. ITEM 19. Amend subrule 62.34(1), introductory Item 24. Amend subrule 62.41(1) as follows: paragraph, as follows: 62.41(1) The department will send the original 62.34(1) Such record shall be available to the registration certificate (yellow copy) or the onionskin to department for inspection by a department inspector and the National Greyhound Association, along with a shall include the following information: request to stamp the original registration as Iowa whelped. The association will send the yellow registration ITEM 20. Amend subrule 62.35(2) as follows: copy to the- department stamped “Certified Iowa- 62.35(2) After January 1, 1985, eligibility for brood whelped.” The department will make a copy of the mare residence shall be achieved by meeting at least registration for their files and return the original (yellow) one of the following rules: copy to the owner. a. Thirty days’ residency until the foal is inspected by a department inspector, if in foal to a registered Iowa Item 25. Rescind and reserve rule 21—62.43(99D). stallion. b. Thirty days’ residency until the foal is inspected by a department inspector for brood mares which are bred back to registered Iowa stallions. c. Continuous residency from December 31 until the foal is inspected by a department inspector if the mare was bred by other than an Iowa registered stallion and which is not bred back to an Iowa registered stallion. d. The foal shall not be eligible for Iowa-eligibility if the mare and foal leave or are removed from the state ARC 1034A before the foal is inspected by a department inspector. AGRICULTURE AND LAND Item 21. Amend rule 21—62.35(99D) by adding the following new subrule: STEWARDSHIP DEPARTMENT^] 62.35(4) A quarterhorse mare transfer of ownership, Notice of Intended Action Form M-6, must be submitted to the department when a quarterhorse mare already in the program is purchased Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation by a new owner. The Form M-6 will provide the following hereon as provided in Iowa Code §17A.4(l)“b” information: Notice is also given to the public that the Administrative Rules Review a. Name of mare; Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at ' b. Date of transfer; a regular or special meeting where the public or interested persons c. Color of mare; may be heard. d. State registration number; e. National breed registration number; Pursuant to the authority of Iowa Code sections f. Date of sale; 159.5(11) and 159.6(8), the Iowa Department of Agri­ g. Name, address, and phone, number of seller; culture and Land Stewardship gives Notice of Intended h. Name, address, and phone number of buyer. Action to amend Chapter 68, “Dairy,” Iowa Adminis­ trative Code. ITEM 22. Rescind subrules 62.36(5) and 62.36(6). The proposed rule requires the protection of the water Item 23. Amend rule 21—62.41(99D), introductory supply used in a dairy facility. paragraph, as follows: A public hearing will be held Tuesday, July 31, 1990, at 10 a.m. in the First Floor West Conference Room of 21—62.41(99D) Procedures and registration. In order the Wallace State Office Building. to qualify pups of a litter as Iowa-whelped pups, the Iowa Written comments may be filed with the Dairy owner or lessee of the bitch shall file a copy of her national Products Control Bureau of the Iowa Department of registration papers (front and back), together with an Agriculture and Land Stewardship prior to 4:30 p.m. Iowa Form GH-3 with the department within ten days on July 30,1990. prior to the expected whelping date of the litter. Late This rule is intended to implement Iowa Code section filings of GH-3 forms postmarked after the whelping date 192.20(8). of the litter will not be accepted. After the GH-3 form is Amend 21—Chapter 68 by adding a new division as received by the department, a department inspector must follows: inspect the dam and litter. IAB 7/11/90 NOTICES 15 AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT^!] (cord’d)

DAIRY FARM WATER pitless scale, and (3) to provide minimum standards for 68.28 to 68.34 Reserved. gasoline labeled as “leaded.” 21—68.35(192) Dairy farm water supply. Any interested person may make written suggestions 68.35(1) Water for milk house and milking operations or comments on these proposed rules prior to 4:30 p.m. shall be from a supply properly located, protected, and on Tuesday, July 31,1990. Such written material should operated and shall be easily accessible, adequate and of be directed to Jerry Bane, Acting Chief of the Weights a safe, sanitary quality. and Measures Bureau, Iowa Department of Agriculture 68.35(2) A Grade A permit shall not be issued to an and Land Stewardship, Henry A. Wallace Building, Des applicant when the water well supplying the dairy Moines, Iowa 50319. facility is located in a well pit. These rules are intended to implement Iowa Code 68.35(3) New well construction or the reconstruction sections 214A.3, 214A.6, 215.15, and 215.18. of an existing well supplying the dairy facility shall be The following amendments are proposed: constructed according to 567—Chapter 49, Iowa Admin­ ITEM 1. Rescind subrule 85.11(1) and insert in lieu istrative Code. thereof the following: 68.35(4) Frost-free hydrants shall be located at least 85.11(1) In the construction of a scale pit, walls must ten feet from the well that-supplies the water for the be of reinforced concrete. A slab floor must be installed dairy facility unless a written variance is granted by in the pit. The floor must be at least 12 inches thick the department. with a minimum of grade 40 reinforcement rod running 68.35(5) The department encourages the use of high- into all piers and sidewalls, installed according to the pressure washers for use in the dairy facility. However, manufacturer’s specifications. There shall be an they can create a negative pressure and contaminate the approach at each end of the scale of not less than ten water supply system because of their capability to pump feet, and said approach shall be of reinforced concrete at a faster rate than water can be supplied if not properly 12 inches thick on a level with the scale deck. installed and operated. Item 2. Amend subrule 85.12(3) as follows: The dairy facility water supply system shall be 85.12(3) A reinforced concrete slab the width of the protected from overpumping by a high-pressure washer scale, at least four six inches thick, shall run full length by one of the following: under the scale. Slab and piers shall be tied together .1. A separate water supply. with reinforcement rod, with a minimum clearance of 2. By supplying the high-pressure washer from a surge eight inches between floor and weighbridge. tank that is isolated from the main water supply system by an air gap. ITEM 3. Amend rule 21—85.48(214A,215) by adding 3. A low pressure cutoff switch. the following new subrule: 4. A device built into the high-pressure washer by the 85.48(15) Any gasoline labeled as “leaded” shall be manufacturer and approved by the department. produced with the use of any lead additive as approved 5. Any other device installed in the system to prevent by the United States Environmental Protection Agency a negative pressure to the supply system that is approved or contain more than 0.05 grams of lead per gallon or by the department. more than 0.005 grams of phosphorus per gallon. This rule is intended to implement Iowa Code section 192.20(8).

ARC 1028A ARC 1047A COLLEGE AID COMMISSION[283] AGRICULTURE AND LAND Notice of Intended Action STEWARDSHIP DEPARTMENTS] Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation Notice of Intended Action hereon as provided in Iowa Code §17A.4( 1 )“b". Notice is also given to the public that the. Administrative Rules Review Twenty-five interested persons, a governmental subdivision, an agency Committee may, on its own motion or on written request by any or an association of 25 or more persons may demand an oral presentation individual or group, review this proposed action under 917A.S(b) at hereon as provided in Iowa Code §17A.4(1)M6W. a regular or special meeting where the public or interested persons Notice is also given to the public that the Administrative Rules Review may be heard. Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at Pursuant to the authority of 1990 Iowa Acts, Senate a regular or special meeting where the public or interested persons File 2423, section 63, the College Aid Commission may be heard. proposes to adopt a new Chapter 27, “Iowa Grant Pursuant to the authority of Iowa Code sections Program,” Iowa Administrative Code. 159.5(11), 214A.2, and 215.24, the Iowa Department of The new chapter will summarize the procedures to Agriculture and Land Stewardship proposes to amend be followed in the administration of the Iowa Grant Chapter 85, “Weights and Measures,” Iowa Administra­ Program. tive Code. Interested persons may submit comments orally or in The proposed rules are intended to accomplish three writing to the Executive Director, Iowa College Aid purposes: (1) to establish standards for construction of Commission, 201 Jewett Building, Des Moines, Iowa scale pits, (2) to clarify standards for installation of a 50309, (515)281-3501 on or before August 1, 1990. 16 NOTICES IAB 7/11/90

COLLEGE AID COMMISSION[283] (eont’d)

These rules are intended to implement Iowa Code b. The annual amount of the grant to a full-time student chapter 261 as amended by 1990 Iowa Acts, Senate File shall not exceed a student’s financial need or $1,000, 2423, sections 60 to 64. whichever is less. The following new chapter is proposed: c. The maximum amount of a grant to a part-time CHAPTER 27 student shall be prorated by dividing the maximum IOWA GRANT PROGRAM yearly grant amount by 24 semester hours or the trimester or quarter equivalent, and multiplying that 283—27.1(261) State-supported grants. A state- amount by the number of hours the student is enrolled. supported and administered grant based on financial d. Grants shall be awarded on an annual basis and need to Iowa residents enrolled at approved institutions shall be credited by the institution against the student’s of postsecondary education in Iowa. tuition, fee's, and room and board charges at the 27.1(1) Definitions. As used in this chapter: beginning of each term in equal installments upon “Accredited higher education institution” means any certification that the eligible student is enrolled. public or private institution of higher learning located e. If, after crediting the amount of the grant to the in .Iowa which is accredited by the North Central student’s tuition, fees, and, if applicable, room and board Association of Colleges and Secondary Schools. charges, a credit balance remains, the institution may “Financial need” means the difference between the distribute the grant balance to the student who may use total cost at the institution the student plans to attend the proceeds for other bona fide education expenses such and the student’s financial resources, including resources as books, equipment, and transportation. ' available from the student’s parents and the student, as f. If a student receiving a grant under the program determined by a completed parent’s or student’s financial discontinues attendance before the end of any academic statement. Any federal, state, institutional, and private period, but after receiving payment of grant funds for aid, other than work-study, shall also be considered an the academic period, the entire amount of any refund available resource. Financial need shall be determined due the student, up to the amount of any payments made at least annually. The application form must be received by the state, shall be distributed as follows: by the needs analysis processor by the deadline date (1) If an initial institutional allocation was made and specified by the commission. funds are available due to the refund, the institution may “Full-time resident student” means an individual offer additional awards, but in no case may an institution resident of Iowa who is enrolled at an accredited higher exceed its annual allocation. education institution in a course of study including at (2) If institutional allocations are not made, then any least 12 semester hours or the trimester or quarter refunds must be returned to the commission. equivalent. “Course of study” does not include corre­ 27.1(5) Extent of grant. A qualified full-time student spondence courses. may receive grants for not more than eight semesters “Part-time resident student” means an individual of undergraduate study or the trimester or quarter resident of Iowa who is enrolled at an accredited higher equivalent. A qualified part-time resident student may education institution in a course of study including at receive grants for not more than 16 semesters of least three semester hours or the trimester or quarter undergraduate study or the trimester or quarter equivalent. “Course of study” does not include corre­ equivalent. spondence courses. 27.1(6) Application process. “Qualified student” means a resident student who has a. Eligible students shall apply for this grant through established financial need and who is making satisfactory the use of an approved financial aid form, which uses progress toward graduation. the federally accepted method of needs analysis. “Tuition and mandatory fees” means those college costs b. Institutions shall coordinate aid packages to ensure paid annually by all students enrolled on a full-time basis, such costs to be reported annually to the commission by that this grant program supplements rather than each participating institution. supplants federal and institutional gift aid awards and 27.1(2) Student eligibility. A recipient must be an Iowa shall report need figures to the commission. resident who is enrolled for at least three semester hours c. The institution shall clearly identify the Iowa grant or the trimester or quarter equivalent in a program on the student’s aid award notice. leading to a degree from an eligible Iowa institution. d. A student shall accept all available federal and state The criteria used by the state board of regents to grants before being considered for grants under this determine residency for tuition purposes, 681 IAC program. 1.4(262), are adopted for this program. 27.1(7) Full year of study. For purposes of this 27.1(3) Self-supporting applicants. For purposes of program, the commission has defined full year of study determining financial independence, the commission has as either three quarters or two semesters. Grant adopted the definition in use by the U.S. Department payments are prorated according to this definition. of Education for the federally funded student assistance 27.1(8) Priority for grants. programs. Self-supporting applicants must certify their a. Applicants are ranked in order of the estimated status on the financial aid form and supply any required amount which the family reasonably can be expected documentation to the educational institution. to contribute toward college expenses and awards are 27.1(4) Award limits and eligibility requirements. granted to those who demonstrate need in order of family a. A grant may be awarded to any qualified person contribution, from lowest to highest, insofar as funds who is accepted for admission or is enrolled for at least permit. three semester hours, or the trimester or quarter b. Funds will be allocated to the sectors according to equivalent in a program leading to a degree from an the appropriations language. approved, accredited higher education institution and c. If funds are insufficient to pay all approved grants, who demonstrates financial need. applicants who have the greatest demonstrated financial IAB 7/11/90 NOTICES 17 COLLEGE AID COMMISSION[283] (ctmt’d) need, based on a total family contribution, will receive The new chapter describes how the Work Force priority assistance. Investment Program appropriation will be distributed d. If funds are insufficient to help all students with on a competitive grant basis, how the funds will be used, no means of contribution to their educational expenses, and provides definitions for program eligibility institutional allocations will be made based on that determination. institution’s applicant profiles as a percentage of the total The substance of the rules was adopted and' filed sector profiles, and institutional aid administrators will emergency and is published herein as ARC 1071A. The be called on to select students to receive grants. content of that submission is hereby incorporated by 27.1(9) Award notification. A grant recipient is reference. notified of the award by the educational institution to Any interested person may make written suggestions which application is made. The institution is responsible or comments by writing to: Division of Job Training, for completing necessary verification and for coordinat­ Department of Economic Development, 200 East Grand ing other aid to ensure compliance with student Avenue, Des Moines, Iowa 50309. eligibility requirements and allowable award amounts. A public hearing to receive oral and written comments The institution reports changes of student eligibility to on the proposed rules wil be held on August 7, 1990, the commission. from 10 a.m. until noon, at the Iowa Department of 27.1(10) Award transfers and adjustments. Economic Development, 200 East Grand Avenue, Des a. Awards may be transferred among eligible Moines, Iowa. Individuals wishing to present oral institution(s) unless funding limitations require institu­ comments should contact Gleean Coates at (515)281-3701 tional allocations. prior to 5:30 p.m. on August 2, 1990, to be placed on b. Recipients are responsible for promptly notifying the agenda. the appropriate institution of any change in enrollment These rules are intended to implement 1990 Iowa Acts, or financial situation. The educational institution will Senate File 2327, section 1(18) which became effective make necessary changes and notify the commission. on July 1,1990. 27.1(11) Restriction. A student who is in default on a Stafford Loan, SLS Loan, or a Perkins/National Direct/ National Defense Student Loan or who owes a repayment on any Title IV grant assistance or state award shall be ineligible for assistance under the Iowa grant program. A loan which has been discharged in bank­ ARC 1066A ruptcy shall not be considered in default. Eligibility for state aid may be reinstated upon payment in full of the ECONOMIC DEVELOPMENT, IOWA delinquent obligation or by commission ruling on the DEPARTMENT OF[261] basis of adequate extenuating evidence presented in appeal under the procedure set forth in 283—Chapter Notice of Intended Action 3, Iowa Administrative Code. Twenty-five interested persons, a governmental subdivision, an agency 27.1(12) Institutional reporting. The commission will or an association of 25 or more persons may demand an oral presentation monitor the program according to this chapter and will hereon as provided in Iowa Code §17A.4(1)“6”. Notice is also given to the public that the Administrative Rules Review require participating postsecondary institutions that Committee may, on its own motion or on written request by any receive funds for enrolled students to furnish any individual or group, review this proposed action under §17A.8(6) at information necessary for the implementation or a regular or special meeting where the public or interested persons administration of the program. may be heard. These rules are intended to implement Iowa Code Pursuant to the authority of Iowa Code sections 15.104 chapter 261 as amended by 1990 Iowa Acts, Senate File and 15.106, the Department of Economic Development 2423, sections 60 to 64. (DED) hereby gives Notice of Intended Action to amend Chapter 23, “Community Development Block Grant Nonentitlement Program,” Iowa Administrative Code. The Community Development Block Grant (CDBG) Nonentitlement Program provides funds to local ARC 1072A governments for a wide variety of community develop­ ment activities, housing rehabilitation, and economic ECONOMIC DEVELOPMENT, IOWA development activities, including acquisition or construc­ tion of public facilities, such as water and sewer systems, DEPARTMENT OF[261] streets, and fire protection facilities. Notice of Intended Action The proposed amendments to Chapter 23: Twenty-five interested persons, a governmental subdivision, an agency 1. Bring Iowa’s program into compliance with the or an association of 25 or more persons may demand an oral presentation Housing and Community Development Act of 1987 as hereon as provided in Iowa Code §17A.4(1)“£>". amended; Notice is also given to the public that the Administrative Rules Review 2. Implement policy innovations that reflect local Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at government needs in Iowa; a regular or special meeting where the public or interested persons 3. Add community builder provisions and points to may be heard. rating systems; Pursuant to the authority of Iowa Code sections 15.104 4. Combine the economic development set-aside and and 15.106, the Iowa Department of Economic Devel­ the public facilities set-aside into one set-aside; opment (IDED) gives Notice of Intended Action to 5. Allocate 20 percent of total available funds to the establish a new Chapter 18, “Work Force Investment combined economic development set-aside/public Program,” Iowa Administrative Code. facilities set-aside account; 18 NOTICES IAB 7/11/90 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (eont’d)

6. Cap unincorporated areas of a county at $1,000 per individuals to independent living within a reasonable capita grant ceiling; amount of time, not to exceed 18 2k. months for any 7. Add forgivable loans as eligible means of assistance homeless individual. to the economic development set-aside; “Low- and moderate-income families” means those 8. Add numerous definitions; families earning no more than 80 percent of the higher 9. Add numerous technical wording changes; and of the median family income of the county or the 10. Clarify the requirements of the economic devel­ statewide nonmetropolitan area as determined by the opment set-aside program. latest U.S. Department of Housing and Urban Devel­ Any interested persons may submit written comments opment, Section 8 income guidelines. This includes concerning the rules proposed for adoption to the Division of Financial Assistance, Department of Economic “Planning agency” means DED or IDED. Development, 200 East Grand Avenue, Des Moines, Iowa “Program income” means program income as defined 50309 no later than 4:30 p.m., August 1, 1990. A public by the Iowa CDBG Management Guide funds generated hearing on the proposed rules will be held at 10 a.m., by a recipient or subrecipient from the use of CDBG funds. August 1, 1990, in the Department of Economic Program income includes, but is not limited to the Development, second floor conference room, 200 East following: Grand Avenue, Des Moines, Iowa. (1) Payments of principal and interest on loans made These rules are intended to implement Iowa Code using CDBG funds; section 15.108(l)“a” and Public Law 93-383. (2) Proceeds from the lease or disposition of real property The following amendments are proposed: acquired with CDBG funds; and (3) Interest earned on CDBG funds held in a revolving Item 1. Amend 261—23.2(15) “Definitions” as follows: “Application on behalf of” means any application fund account. submitted by one eligible applicant requesting funds for “Supportive services” means services provided by a one or more eligible applicants. project sponsor to residents of an eligible homeless “Competitive program” means the CDBG nonentitle­ facility. Supportive services shall be proposed by the ment program, excluding the economic development set- applicant in its application and approved by the aside as described in rule 23.8(15), the public facilities department of economic development. Supportive set-aside described in subrule 23.9(2), and the housing services may include: assistance set-aside program described in rules 23.11(15) 1. Medical and psychological counseling and and 23.12(15), and the imminent threat contingency fund supervision; described in 23.10. 2. Employment counseling; “Comprehensive neighborhood revitalization program” 3. Nutritional counseling; means any comprehensive program that consists of 4. Housing counseling; and multiple physical projects (such as street improvement, 5. Assistance in obtaining other federal, state, and local water and sewer system upgrades, storm sewer develop­ assistance available for residents of permanent housing ment, and housing activities) concentrated in one specific facilities, including mental health benefits; employment neighborhood area intended to arrest slum and blighting counseling; medical assistance; veterans’ benefits; and conditions and having an overall significant positive income support assistance, such as supplemental security impact on the target area. income benefits, aid to families with dependent children, “Essential services” means services concerned with general assistance, and food stamps; and employment, physical health, mental health, substance 6. Other services, such as child care, transportation, abuse education, or food, including the staff salary job placement, and training. necessary to provide such services. “Homeless” means (1) an individual or family that lacks ITEM 2. Amend subrule 23.4(3), paragraph “e,” as a fixed, regular and adequate nighttime residence or follows: (2) an individual or family that has a primary residence e. Special projects directed to the removal of material that is: and architectural barriers which restrict the mobility 1. A supervised publicly or privately operated and accessibility of elderly and handicapped persons. supervised shelter designed to provide temporary living Item 3. Amend subrule 23.5(1), paragraph “c,” as accommodations (including welfare hotels, congregate follows: shelters, and transitional housing for the mentally ill); c. Evidence of local capacity to administer the grant, 2. An institution that provides a temporary residence such as satisfactory previous satisfactory grant admin­ for individuals intended to be institutionalized; or istration, availability of qualified personnel, or plans to 3. A public or private place not designed for, or obtain qualified personnel. originally used as, a regular sleeping accommodation for human beings. This term does not include any individual Item 4. Rescind 23.5(1), paragraph “i,” and insert the imprisoned or otherwise detained under an Act of following: Congress or a state law. “Homeless shelter” means any entity meeting one of year starting October G 1988; ne funds may be the following definitions: by the department of economic development after duly 1. Emergency shelter - any facility with overnight U 1989, to a political subdivision that dees net have en sleeping accommodations, the primary purpose of which file with the department ef economic development a is to provide temporary shelter for the homeless in and economic development general or for specific populations of the homeless; and fc ^ TTrtfi w /\f t U y, t f ft TTt M d 2. Transitional housing - a facility that provides i Uhl yTJctr or tiiu i LLvipi ui i* vv ui u housing and supportive services to homeless persons with aftd contain key eoneepts of economic and community the purpose of facilitating the movement of homeless r not 1 IAB 7/11/90 NOTICES 19 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cant’d)

i. Any funds awarded after July 1, 1990, shall comply grantee’s jurisdiction. In the case of counties applying with provisions established under 1990 Iowa Acts, House on behalf of unincorporated communities within their File 705, section 8, community builder program. jurisdiction, the $1,000 per capita ceiling will be based j. For funds awarded after July 1, 1990, compliance on a local survey of population served by the project at with the provision of the community builder program shall the time of application. In determining grant ceilings, be considered adequate to fulfill the requirements of the it is acceptable for a jurisdiction city or county to use community and economic development strategic plan as any of the following population figures: 1989 census described in the 1990 Iowa Acts, Senate File 2128, section figures; special census figures; adjusted figures based l, except that the plan must be completed within one year on an annexation that has been completed in accordance from the receipt of award. with statutory requirements, Iowa Code chapter 368. In ITEM 5. Amend subrule 23.5(1) by renumbering “j” determining grant ceilings, county populations will be as “k” and amend as follows: calculated on the basis of unincorporated area only. Joint jr k. Certifications. All applicants will be required to applications may be funded up to one and one-half times certify that, if they receive funds under this program, the maximum amount allowable for either of the joint they will comply with the following requirements, if applicants. applicable. b. Economic development set-aside. The maximum (1) The Civil Rights Act of 1964 (PL 88-352) and Title grant award for individual applications from any city VIII of the Civil Rights Act of 1968 (PL 90-284); or county is $500,000 per application. (2) Title I of the Housing and Community Development c. Public facilities set-aside. The maximum grant Act of 1974, as amended; award for individual applications from a city or a county, (3) Age Discrimination Act of 1975; is $500,000 per application. (4) Section 504 of the Rehabilitation Act of 1973; d. Housing assistance set-aside. (5) Davis-Bacon Act, as amended (40 U.S.C. 276a-276a- (1) Homeless shelter assistance. The maximum amount 5) where applicable under Section 110 of the Housing grant award for individual applications from any city and Community Development Act of 1974, as amended;- or county is $100,000; and (6) 24 Code of Federal Regulations, Part 58; (2) Home ownership assistance. The maximum amount (7) National Environmental Policy Act of 1969; grant award for individual applications from any city (8) Uniform Relocation Assistance and Real Property or county is $250,000. Acquisition Policy Act of 1979, Title II and Title III; ITEM 8. Amend subrule 23.7(1), paragraph “f,” third (9) State of Iowa Citizen Participation Plan; and unnumbered paragraph, as follows: (10) Other relevant regulations as noted in the CDBG For purposes of this subrule, funds will be considered Management Guide; expended from an escrow account or lump sum (11) Certification Regarding Drug-Free Workplace Act; drawdown account when a disbursement is made from (12) Certification Regarding Government-Wide Restric­ the account to a vendor for allowable costs incurred. This tion on Lobbying; and subrule does not apply to budgeted and expended (13) Prohibition on the Use of Excessive Force in amounts for general administration. Accordance with Section 519 (PL 101-141). Item 9. Amend subrule 23.7(5) by adding a new Item 6. Rescind subrules 23.6(3) and 23.6(4) and adopt paragraph as follows: a new subrule 23.6(3) as follows and renumber remaining e. Certified community builder community, 50 points subrules accordingly: possible. Upon completion of the requirements of the 23.6(3) Economic development/public facilities set- Community Builder Program as outlined in 1990 Iowa aside: Up to 20 percent of total program funds will be Acts, House File 705, a community may receive up to reserved for projects funded under the economic develop­ 50 points. ment set-aside program and the public facilities set-aside program. If this allocation, and the previously existing Item 10. Amend subrule 23.7(9) as follows: economic development set-aside program and public 23.7(9) Verification of data. Applications which rate facilities set-aside program allocations, for the current high enough to be funded will be reviewed to verify fiscal year is not fully allocated, the excess will be figures or statements in the applications. At the reallocated to the general competitive program for the discretion of DED, this may include site visits. In cases following year. where inaccuracies, omissions, or errors are found, DED will have the discretion of rejecting the application or Item 7. Amend the renumbered subrule 23.6(7), grant rerating it based on correct information. In cases where ceilings, as follows: an applicant loses funding through this process, its grant 23.6(75) Grant ceilings. Maximum grant amounts amount or portion thereof may be awarded to the next awards are as follows: highest ranking nonfunded applicants). In an instance a. Competitive program. where the highest ranking nonfunded applicant requests Single-Year Applicants Grant Ceiling more funds than are available, DED will have complete 0-999 population $200,000 discretion concerning the disposition of the excess funds, 1.000- 2,499 population $300,000 including renegotiating the amount requested or 2,500-14,999 population $450,000 carrying those funds over to the next program year. 15.000- 49,999 population $600,000 ITEM 11. Amend subrule 23.8(1), paragraph “a,” as Multiyear Applicants Grant Ceiling follows: 2,500-14,999 population $350,000 per year a. Economic development set-aside awards will be 15,000-49,999 population $500,"000 per year limited to interest rate subsidies, principal reduction However, no grantees may receive more than $1,000 subsidy forgivable loans and direct loans. Direct loans per capita, based on the total population within the wR} be limited te projects where it ean be shown that 20 NOTICES IAB 7/11/90 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (tout’d) the iftffetal outlay ef funds by the state will be no greater (3) Need and impact of the project. Considerations are fee a dtreefc lean than tee another form of subsidy allowed to include local employment conditions, resultant new under this ruler In sueb easesr direet leans will be shewn economic activity, planned hiring under programs of the funding preference- Job Training Partnership Act, project schedule, Item 12. Amend subrule 23.8(2), introductory para­ leveraging of other resources, and beneficial impact on graph, as follows: the tax baser 300 points possible and project feasibility, 23.8(2) Application procedures. Application forms and including the probability that the project will accomplish instructions will be available upon written request from the projected benefits, 180 points possible. the Department of Economic Development, Division of (k) Certified community builder community, 20 points Financial Assistance, 200 East Grand Avenue, Des possible. Moines, Iowa 50309, or by calling (515) 281-3982. An b. The rating system gives priority to projects that original and ene two copy copies of the application shall will create manufacturing jobs and projects that add be submitted to the same address. value to Iowa resources. Refinancing or restructuring ITEM 13. Amend subrule 23.8(4) as follows: of existing loans and projects involving a single retail 23.8(4) Threshold criteria. In addition to all minimum establishment will be considered low priorities. requirements listed in rule 23.5(15), Ah all applicants c. The rating system gives preference to direct loans over for economic development set-aside funds must satisfy forgivable loans. the following minimum requirements to be eligible for funding as well as ah minimum requirements listed in Item 15. Amend subrule 23.8(8), paragraph “f,” as follows: a. At least 51 percent of the permanent jobs created f. Certification that all CDBG regulations will be or retained by the proposed project will be taken by lew- complied with including, but not limited to, assurance and moderate income persons or made available through that at least 51 percent of the jobs affected by the first consideration activities to persons from low- and assistance will be provided to will be taken by or made moderate-income families; available through first consideration activities to persons b. A minimum ratio of one permanent job created or from low- and moderate-income individuals families; retained for every $10,000 of CDBG funds awarded must be maintained; Item 16. Amend subrule 23.9(2), second unnumbered • ****** r/\ /\%% 4 La I _ paragraph, as follows: er The < > 1 ULC Ull LIU) LULett . may net he lower than 0 percent to the business An original and one copy of the application shall be requesting assistance; submitted. Application forms and instructions are dr c. Terms of conventional loans which are part of available upon written request from the Department of the project must be consistent with terms generally Economic Development, Division of Financial Assis­ accepted by conventional financial institutions for the tance, 200 East Grand Avenue, Des Moines, Iowa 50309 type of property involved; or by calling (515) 281-3982. er d. There must be evidence of adequate private equity; #7 e. There must be evidence that the economic ITEM 17. Amend subrule 23.9(4), paragraph “c,” as development set-aside funds requested are necessary to follows: make the proposed project feasible; c. Certifications. Applicants under the public facilities gr /. There must be evidence that the business set-aside program will be required to certify that, if they requesting assistance can continue as a “going concern” receive funds under this program, they will comply with in the foreseeable future, if provided the requested the same certifications required by applicants for the assistance; competitive program as cited in subrule 23.5(1)^ “j". hr g. Jobs created as a result of other jobs being displaced elsewhere in the state will not be considered ITEM 18. Amend subrule 23.9(5) as follows and new jobs created for the purpose of evaluating the renumber subsequent subrules as needed: application; and 23.9(5) Selection criteria for public facilities set-aside h h. No significant negative land use or environmental program. impacts will occur as a result of the project. a. Threshold criteria. All applicants for public facilities i. Applicants must demonstrate that no significant set-aside funds must satisfy the following minimum impact on public services (e.g., infrastructure) will result requirements to be eligible for funding as well as the from the project, or if such impacts will result, demonstrate minimum requirements listed in rule subrule 23.5(15) that the impacts can be mitigated without requesting 23.5(1). further assistance from state and federal programs. (l) At least 51 percent of the permanent jobs created or retained by the proposed project must will be taken Item 14. Amend subrule 23.8(5) as follows: by or made available through first consideration activities 23.8(5) Rating factors. to persons from low- and moderate-income persons a. The following rating system will be used to rank families; applications under the economic development set-aside (2) A minimum ratio of one permanent job created program. The highest point total possible is 400. Projects or retained for every $10,000 of CDBG funds awarded receiving a rating of 250 or more will be recommended must be maintained; for funding. (3) Local governments must contribute 50 percent of (1) Number of jobs per CDBG funds requested, 100 the total amount of funds requested from the public points possible; facilities set-aside; (2) Percent of funds other than CDBG funds in the (4) There must be evidence that the CDBG funds project (e.g., private or public loans), 100 points possible; requested are necessary to make the proposed project and feasible; IAB 7/11/90 NOTICES 21 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cant’d)

(5) There must be evidence that the project is feasible Item 20. Amend subrule 23.11(2) as follows: and that the business requesting assistance can continue 23.11(2) Application procedures. Applications for the as a “going concern” in the foreseeable future; homeless shelter assistance program will be requested (6) Jobs created as a result of other jobs being displaced on an annual basisr Each year prior to solicitation of elsewhere in the state will not be considered new jobs applications, the department of economic development created for the purpose of evaluating the application; will, to the extent funds are available for this purpose, and conduct a training program for all eligible applicants. (7) No significant negative land use or environmental All eligible applicants will be notified by mail of the impacts will occur as a result of the project. time, date, place, and agenda. Application instructions oq n/fi\ — ftwOrtjjr, TtotTTig RtCwToT and all necessary forms will be available upon request a? b. Rating factors. The following rating system will to the Department of Economic Development, Division be qsed to rank applications under the public facilities of Financial Assistance, 306 East Grand Avenue,- ©es set-aside program. The highest point total is 460 J)20: Moines, Iowa 50309 er by calling (515) 281-3982. (1) Number of jobs per CDBG funds requested, 100 according to the process outlined in 23.7(2). points possible; The deadline for submission of homeless shelter (2) Percent of funds other than CDBG funds in the assistance applications (original and one copy) will be project (e.g., private or public loans), 50 points possible; 60 days following the last date of the training program (3) Need and impact of the project. Considerations are application workshop. No applications will be accepted to include local employment conditions, resultant new after the deadline for submission. Only data submitted economic activity, planned hiring under programs of the by the established deadline will be considered in the Job Training Partnership Act, use of availability of other selection process unless additional information is public incentives, project schedule, and property tax requested by DED in writing. enhancement and other effects on the local tax base, 100 All applications meeting threshold requirements will points possible; be reviewed and ranked within 90 days of the final (4) Local government financial need. The applicant submission deadline. local government must demonstrate the need for Those applications with the highest ranking will be financial assistance for the public facilities project. funded to the extent that homeless shelter assistance set- Factors such as bonding capacity, tax capacity and tax aside funds are available. All successful applicants will effort will be considered, 100 points possible; and be notified and invited to a conference with DED (5) Local effort. Local governments must contribute personnel to outline procedures for program 50 percent of the total amount of public facilities set- administration. aside funds requested to meet minimum threshold Item 21. Amend subrule 23.11(3), paragraph “d,” as requirements. Points will be awarded for contributions follows: above the required minimum, 50 points possible; and d. A community may not subcontract with a project (6) Community builder. Upon completion of the require­ sponsor subrecipient that is a primarily religious ments outlined in 1990 Iowa Acts, House File 705, a organization, unless the primarily religious organization community may receive points, 20 points possible. agrees to provide housing and supportive services in a br c. Ties in applications. Ties will be decided in favor manner that is free from religious influence and is in of the project showing the highest number of jobs created accordance with other conditions described in the or retained. contract between the grantee recipient and the depart­ er Each project m an application wiB be rated and ment of economic development. ranked separately. Those projects ranked high enough Item 22. Amend subrule 23.11(6), paragraph “d,” as follows: d. Each activity must receive a score of at least 25 d. Certifications. Applicants under the homeless points out of a possible 100 points for the “need and assistance program will be required to certify that, if impact” rating criterion in order to receive CDBG they receive funds, they will comply with the same funding. certifications required by subrule 23.5(1)^ “k.” Item 19. Amend subrule 23.10“5” as follows: Item 23. Amend subrule 23.11(7) by adding a new 5. Sufficient other local, state, or federal funds paragraph as follows: (including the competitive CDBG program) either are d. Certified community builder community. Upon not available, or cannot be obtained within the time completion of the requirement of the community builder frame. program as outlined in 1990 Iowa Acts, House File 705, IDED will coordinate the request for funds with other a community may receive up to 20 points. public agencies, such as the office of disaster services, Item 24. Amend subrule 23.11(9) as follows: as appropriate. If IDED determines that the community 23.11(9) Verification of data. Applications which rate and the proposed activity are eligible for funding, it shall high enough to be funded will be reviewed to verify notify the governor applicant of its determination. Upon figures or statements in the applications. At the discretion of DED, this may include site visits. In cases wiB make funds available to an applicant that meets where'inaccuracies, omissions, or errors are found, DED will have the discretion of rejecting the application or Any community receiving funds under the imminent rerating it based on correct information. In cases where threat program must comply with all laws, rules, and an applicant is not awarded funding because of this regulations applicable to the CDBG nonentitlement process, its award amount, or portion thereof, may be program, except that the department may choose to awarded to the next highest ranking nonfunded waive those state administrative rules not required by applicant(s). In an instance where the highest ranking federal law. nonfunded applicant requests more funds than are 22 NOTICES IAB 7/11/90

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cont’d) available, DED will have complete discretion concerning should be consulted for additional compliance the disposition of the excess funds, including renegotiat­ requirements. ing the amount requested or carrying those funds over Grantees Recipients who determine that the Single to the next program year. Audit Act of 1984 does not apply to their situation shall Item 25. Amend subrule 23.12(2), introductory have audits prepared in accordance with CDBG paragraph and first unnumbered paragraph, as follows: requirements and state laws and regulations. All audits 23.12(2) Application procedures. Applications for the shall commence within 60 days of the CDBG program’s home ownership assistance program will be requested contract expiration date, and be issued within 150 days on an annual basis? Each year prior to solicitation of of the contract expiration date, unless the grantee applications the department of economic development recipient conducted annual audits on a fiscal year basis. will, to the extent funds are available for this purpose, Variations of these time requirements shall only be conduct a training program for aH eligible applicants. allowed with prior approval fropi DED. Copies of the AH eligible applicants wiH be notified by mail of the audit report shall be transmitted to DED and to other time, date? place, and agenda. Application instructions agencies as required. and aH necc33ary forms wiH be available upon written d. Program income. request to the Department of Economic Development, (1) Units of general local government shall be required Division of Financial Assistance, 200 East Grand to return to the federal government interest (except for interest described in 23.13(3)“d”(3) earned on grant funds 8982 according to the process outlined in 23.7(2). advanced in accordance with the Iowa CDBG Manage­ The deadline for submission of the home ownership ment Guide. assistance program applications (original and one copy) (2) Proceeds from the sale of personal property shall will be two months following the last date of the training be handled in accordance with Sections 31, 32, and 33 program application workshop. No applications will be of 24 CFR, Part 85, implementing OMB Circular A-102. accepted after the deadline for submission. Only data (3) All other program income earned during the grant submitted by the established deadline will be considered period may be retained by the recipient and added to in the selection’process unless additional information is funds committed to the program, provided that they are requested by DED in writing. expended for the same type of activity from which the income was derived. Item 26. Amend subrule 23.12(6) as follows: (4) Communities Recipients may retain program 23.12(6) Contents of application. Each applicant must income remaining unexpended at the end of the contract address each of the threshold criteria cited in 23.5(15) period when the program income will be used for the and demonstrate that each criterion has been satisfied. same activity and the community has an IDED-approved In addition, applicants for the home ownership assistance plan for use of the program income that includes the program must ensure that one hundred percent of home following: ownership assistance funds will benefit low- and very low- 1. Statement of purpose. How the program income will income persons. be used, number and description of beneficiaries ITEM 27. Rescind subrule 23.12(7) in its entirety and (including persons of low and moderate income), location renumber the remaining subrules accordingly. of activities, budget for activities and a timetable of completion of budgeted activities; and Item 28. Amend existing subrule 23.12(8) by adding a new paragraph “g” as follows: 2. Certification of compliance. The grantee recipient g. Certified community builder community. Upon must certify that it will use the program income in completion of the requirements of the community builder compliance with applicable CDBG administrative rules, program as outlined, 1990 Iowa Acts, House File 705 including federal and state requirements referenced a community may receive up to 20 points. therein. (5) Program income received subsequent to grant Item 29. Amend subrule 23.12(9) as follows: closeout. 23.12(010) Ties in applications. Ties will be decided 1. Except as may be otherwise provided under the in favor of the program exhibiting benefiting the highest terms of the grant agreement or any closeout agreement, number of a33i3ted low- and very low-income persons. program income received subsequent to the end of the Item 30. Amend 23.13(3), paragraphs “c” and “d,” grant period may be treated by the recipient as follows: as follows: Subject to the requirements of 23.13(3)“d”(5)“2” and “3,” c. All contracts made under these rules are subject this income may be treated as miscellaneous revenue, to audit. Recipients shall be responsible for the the use of which is not governed by the provisions/s) of procurement of audit services and for the payment of the grant. Provided, that if the recipient has another audit costs. Audits may be performed by the state continuing grant under the same multiyear commitment auditor’s office or by a qualified independent auditor. under these rules, the program income received Grantees Recipients which receive more than $100,000 subsequent to the grant closeout shall be treated as in federal financial assistance (including a CDBG grant) program income of the active grant program. in any fiscal year must comply with the provisions of 2. Disposition of tangible personal property. The the Single Audit Act of 1984 (P.L. 98-502) and OMB recipient shall account for any tangible personal property Circular A-128, “Audits of State and Local Governments” acquired with grant funds in accordance with Sections for that fiscal year. In addition, grantees recipients 31, 32, and 33 of 24 CFR, Part 85, implementing OMB receiving between $25,000 to $100,000 in assistance may Circular No. A-102. choose to comply with the Single Audit Act. 3. Disposition of real property. Proceeds derived after In such cases, the local government must have an grant closeout from the disposition of real property annual audit of all its financial statements. The Act acquired with grant funds under this program shall be IAB 7/11/90 NOTICES 23 i ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cant’d) subject to the program income requirements of Development Act of 1987 and regulations governing the 23.13(3)“d”(5)“l” above, provided that where such income rental rehabilitation program. may be treated as miscellaneous revenue pursuant to The proposed changes include the following: 23.13(3)“d”(5)“l” above, it shall be used by the recipient 1. Eligibility for program based on median family for community development activities eligible pursuant income; to 23.4(3) to further the general purposes and objectives 2. Minimum level of rehabilitation not less than $1,000 of the Act. The use of income subject to this provision per dwelling limit; is not governed by any other requirements of these rules. 3. Requiring certification that proposal complies with 4. Recipients shall record the receipt and expenditure priorities established in Housing Assistance Plan; and of revenues related to the program (such as taxes, special 4. Numerous technical and wording changes. assessments, levies, fines, etc.) as part of the grant None of these changes will affect the original intent program transactions. of the Iowa Rental Rehabilitation Program which is to Item 31. Amend subrule 23.13(6) as follows: improve the quality of rental housing and to provide 23.13(6) Performance reports and review. Grantees affordable housing to lower income renters. Recipients shall submit grantee performance reports to A public hearing will be held on August 2, 1990, at DED as prescribed in the Iowa CDBG Management 1:30 p.m. in the main conference room of the Iowa Guide. The reports will assess the use of funds in Department of Economic Development, 200 East Grand accordance with program objectives, the progress of Avenue, Des Moines, Iowa, to receive comment on the program activities, and compliance with certain other proposed rules. Interested persons may submit written program requirements. or oral comments until August 2, 1990, at 4:30 p.m. to DED may perform any reviews or field inspections Roselyn McKie Wazny, Iowa Department of Economic it deems necessary to ensure program compliance, Development, Division of Financial Assistance, 200 East including review of grantee performance reports. When Grand Avenue, Des Moines, Iowa 50309, or at (515) 281- problems of compliance are noted, DED may require 3890. remedial actions to be taken. Failure to respond to a These rules implement Iowa Code section 15.108(9)“b” notification of need for remedial action may result in and the Housing and Community Development Act of the implementation of 23.13(11). 1987. The following amendments are proposed: Item 32. Amend subrule 23.13(11) as follows: 23.13(11) Remedies for noncompliance. At any time? ITEM 1. Amend rule 261-26.1(7A,24CFR511) before project closeout, DED may, for cause, find a Definitions as follows: community recipient is not in compliance with its “Project” means one or more contiguous buildings requirements under this program. At IDED’s discretion, under common ownership and management that are to remedies for noncompliance may include penalties up be rehabilitated with a rental rehabilitation grant, by to and including the return of program funds to DED. agreement with the owner, as a single undertaking under Reasons for a finding of noncompliance include, but are this part and shall not be smaller than one entire structure. not limited to: the recipient’s using program funds for “Rents affordable to lower income families” means that activities not described in its application, the recipient’s the sum of the utility allowance and the rent payable failure to complete approved activities in a timely monthly to the owner with respect to a unit is at or below manner, the recipient’s failure to comply with any the applicable fair market rent under 24 CFR Part 888 applicable state or federal rules or regulations, or the (1983) for the section 8 existing housing program (24CFR lack of a continuing capacity of the recipient to carry Part 882, subparts A and B (1983), or at or below such out the approved program in a timely manner. higher maximum gross rent as approved by HUD for units of a given size or type under 2A CFR Item 33. Rescind subrule 23.13(13). 882.106(a)(3)(1983). In the ease ef cooperative er mutual Item 34. Rescind rule 261—23.14(15). housing, rent means the occupaney charges under the occupancy agreement between the members, and the cooperative. “Unit” or “dwelling unit” means a residential space ARC 1067A that qualifies under the laws of the state and locality as a place of permanent habitation or abode for a family, ECONOMIC DEVELOPMENT, IOWA such as an apartment or house that contains a living DEPARTMENT OF[261] room, kitchen area, bathroom(s) and bedroom(s) or such Notice of Intended Action other definition as may be proposed by a grantee and approved ^ by HUD. However, this does not include Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation manufactured housing units, congregate living structures, hereon as provided in Iowa Code §17A.4(1)“6”. or single-room occupancy units. Notice is also given to the public that the Administrative Rules Review Item 2. Amend 26.3(2)“a” as follows: Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at a. Median family income and area. Rental rehabili­ a regular or special meeting where the public or interested persons tation grants shall only be used to assist the rehabilitation may be heard. of projects located in neighborhoods where the median Pursuant to the authority of Iowa Code sections 15.104 family income does not exceed 80 percent of the median and 15.106, the Iowa Department of Economic Devel­ family income for the area. This means the median family opment proposes to amend Chapter 26, “Iowa Rental income for the neighborhood does not exceed 80 percent Rehabilitation Program,” Iowa Administrative Code. of the median for the metropolitan statistical area (MSA) The amendments are proposed in response to changes in which it is located, or, in the case of a neighborhood made to the federal law Housing and Community not within a an MSA, a median family income that does 24 NOTICES IAB 7/11/90 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cont’d)

not exceed either 80 percent of the median family income 2. The Federal Fair Housing Law (42 USC 3601-19); for the state’s nonmetropolitan area, or at the grantee’s 3. Age Discrimination Act of 1975; option, the nonmetropolitan county in which the 4. Section 3 of the Housing and Urban Development neighborhood is located. Act of 1968 (12 USC 1701(u)); 5. Davis Bacon Act, as amended (40 USC 276a-276a- ITEM 3. Amend 26.3(3)“c” as follows: c. Ineligible projects. Projects assisted, or for which 5) where applicable under section 110 of the Housing a commitment for assistance has been entered into, under and Community Development Act of 1974, as amended; the United States Housing Act of 1937 (except projects 6. Architectural Barriers Act of 1968 (42 USC 4151- assisted under the rental rehabilitation program or the 4157); section 8 existing housing program under 24 CFR Part 7. National Environmental Policy Act of 1969 (42 USC 882, subparts A and B (1983), or projects assisted under 4321-4361); and section 221(d)(3) or 236 of the National Housing Act, or 8. Section 104F of the Housing and Community Development Act of 1974r; and section 202 of the Housing Act of 1959, are not eligible 9. Certification that the submitted application is to receive rental rehabilitation grant amounts under this responsive to the established priority needs as identified part. Ineligible projects also include: (1) projects that have in the applicant’s Housing Assistance Plan submitted to been previously subsidized with amounts made available under this chapter and (2) projects that receive assistance HUD. subject to agreements in conflict with this chapter and Item 8. Amend 26.5(2)“d” by adding the following federal program rules 2U CFR 511 (1983). new subparagraph, renumbering existing subparagraph (16) as (17), and amending the implementation clause ITEM 4. Amend 26.3(4)“b” as follows: b. Other costs (soft costs) that are associated with the as follows: rehabilitation or rehabilitation financing. Such costs may (16) Evidence (attach copy) of the applicant’s written include, but are not limited to: rehabilitation standards, including all applicable requirements that must be met after the completion of (1) Architectural, engineering or related professional services required in the preparation of rehabilitation the assisted rehabilitation. These housing rehabilitation plans and drawings or write-ups; standards shall clearly state work eligible for program (2) Costs of processing and settling the financing for assistance and whether certain work is required. a project, such as private lender origination fees, credit This rule is intended to implement Iowa Code section reports, fees for title evidence, fees for recordation and 15.108(8S»)“b” and the Housing and Community Devel- filing of legal documents, building permits, attorneys’ 0 opment Act of 1987 (P.L. 100-242), Sections 150 and 311. fees, private appraisal fees and fees for an independent Item 9. Amend 261—26.6(7A,24CFR511) by adding rehabilitation cost estimate; the following new subrule: 26.6(5) Supplemental allocations. State recipients that already have an existing contract may be awarded TTT QA PvrFP XV Ull,gn nA[4,- additional program funds. This award will not occur (3) (4) Relocation payments made to tenants who are without written request from the state recipient stating displaced by the rehabilitation activities; the additional amount requested, status of funds/projects (4) (&) Costs to provide information services to tenants previously assisted under the contract, and a request for in accordance with'24 CFR 511.10(h)(2)(iii) (1983) any modifications/revisions in the contract and appli­ regarding lead-based paint; and cation. The department shall approve a supplemental (5) (6)Actualand documented administrative expenses allocation, to the extent funds are available, only when of the state recipient. the state recipient’s program performance for the two ITEM 5. Amend 26.3(4)“d” as follows: most recent state program years is better than the d. Minimum rehabilitation. Minimum level of reha­ average for the performance criteria of 26.6(3)“a,” "b,” bilitation involving expenditures of not less than $600 “c,” and “e” and where there are no outstanding program $1,000 per dwelling unit and rehabilitating each unit performance findings. Should two years’ past perfor­ to meet at least section 8 housing quality standards for mance record not exist, any supplemental allocation will existing housing as set out in 24 CFR 882.109 (1983). be based on available performance as of the date of the This rule is intended to implement Iowa Code section request for additional funding. In no case shall an 15.108(9)“b” and the Housing and Community Develop­ allocation be made if more than 25 percent of previously ment Act of 1987 (P.L. 100-242), Sections 150 and 311. awarded funds remains uncommitted to local projects, unless the allocation is necessary for a unique project, Item 6. Amend 26.5(2)“d”(9) as follows: as determined by IDED. (9) Affirmative marketing plan. A statement as to how ITEM 10. Amend subrule 26.7(2) by adding a new the applicant will ensure that affirmative marketing paragraph as follows: procedures are used to provide reform information and d. This program is governed by the U.S. Department attract eligible persons from all racial, ethnic, and of Housing and Urban Development (HUD)( Cash/ gender groups in the housing market as required by 24 Management Information (C/MI) System. This system CFR 511.10(m)(2) for projects of five units or more. provides for direct access by state recipients to program Item 7. Amend 26.5(2)“d”(15) as follows: funds for direct deposit in approved local accounts. The (15) Certifications. All applicants will be required to rules and procedures for this system are promulgated certify that, if they receive funds under this program, by the U.S. Department of Housing and Urban Devel­ they will assure ensure compliance with the following opment and are effective at their discretion. The grantee, requirements wherever applicable. Iowa department of economic development, is not 1. The Civil Rights act.of 1964 (42 USC 2000D) and reponsible for interruption to accessibility to this system, Title VI of the Civil Rights Act of 1968 (P.L. 90-284); except as available under 26.9(7A,24CFR511). IAB 7/11/90 NOTICES 25

ARC 1070A the purpose of traditional infrastructure projects, political subdivision may also include rural water districts created ECONOMIC DEVELOPMENT, IOWA under Iowa Code chapter 357A or a nonprofit corporation DEPARTMENT OF[261] created for the purpose of operating a rural water system. “RC2000” means rural community 2000 program. Notice of Intended Action Twenty-five interested persons, a governmental subdivision, an agency Item 2. Amend subrule 28.3(1) as follows: or an association of 25 or more persons may demand an oral presentation 28.3(1) Traditional and new infrastructure projects. hereon as provided in Iowa Code §17A.4(1)“6”. Of the money allocated to At least 70 percent of the moneys Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at Iowa Acts, chapter 1268, section 67 shall be allocated a regular or special meeting where the public or interested persons te for the traditional and new infrastructure projects, may be heard. including at least i6 25 percent shall be for the new Pursuant to the authority of Iowa Code sections 15.104 infrastructure category and at least §5 75 percent for and 15.106, the Iowa Department of Economic Devel­ traditional infrastructure. opment hereby gives Notice of Intended Action to amend Chapter 28, “Rural Community 2000 Program,” Iowa Item 3. Amend subrules 28.4(1), 28.4(2) and 28.4(3) Administrative Code. as follows: The proposed rules govern the administration of the Rural Community 2000 (RC2000) Program. The purpose 261—28.4(15) Traditional infrastructure program. of the program is to assist communities and rural areas 28.4(1) Purpose. The purpose of the traditional of the state with their development and governmental infrastructure program is to provide low- and no-interest responsibilities by providing low-interest and no-interest loans and grants for projects that include, but are not loans and grants for traditional infrastructure, “new” limited to, sewer, water, roads, bridges, airports, and other projects described as essential corporate purposes infrastructure, and housing. The Iowa Department of in Iowa Code section 384.24, subsection 3. Economic Development was given the responsibility to 28.4(2) Eligibility. Any city, or county or a nonprofit, administer the traditional infrastructure and “new” rural water district in the state of Iowa is eligible to infrastructure portions. The Iowa Finance Authority apply for loans or grants in this category. A eity or county administers the housing component. may apply for assistance on behalf of a benefited water The proposed changes to the rules are outlined below: district formed under Iowa Code chapter 367 or on behalf 1. Expanded eligibility to include a nonprofit rural of a rural water district incorporated and organized water district; -i -3 %% d rtU UHUvT vTIttpvvi UD l 11, 2. Types of projects allowed; 28.4(3) Applications for assistance. 3. Reduce award ceilings; and a. An applicant may submit one application per year 4. Clarify other administrative practices. under the traditional infrastructure category. Comments are solicited on these proposed revisions to b. General policies. the RC2000 Program. (1) No single project may be awarded more than A public hearing will be held on August 2, 1990, at $1,000,000 $300,000 per year. 10 a.m. in the main conference room at the Iowa (2) Applications must be seeking funds to improve the Department of Economic Development, 200 East Grand physical assets of the traditional infrastructure of the Avenue, Des Moines, Iowa, to receive public comments political subdivision to aid development. on the proposed rules. Interested persons may submit (3) Joint applications for two or more written or oral comments until August 2, 1990, to: ~ [ini Roselyn McKie Wazny, Iowa Department of Economic /N f-f 1 rt 1 a U I MArtmMQQ »*V 1 T~ 1 ~1 A L tilt? filUSL ClllClCIll SUlUllUII ro ct pivUiciii i cijuircs I11UIUU1 Development, Division of Financial Assistance, 200 East action as determined by IDED. If a project crosses Grand Avenue, Des Moines, Iowa 50309, telephone political subdivision boundaries or if a project directly (515)281-3890. benefits residents'or businesses in more than one political These rules are intended to implement Iowa Code subdivision, a joint application must be submitted. chapter 15 and 1990 Iowa Acts, Senate File 2327, section (4) The applicant shall provide evidence that the project 15. can be completed with the funds requested. The following amendments are proposed: (5) Interest rates charged on a loan may not exceed Item 1. Amend rule 261—28.2(15) “Definitions” as 5 percent per annum. follows: (6) The department will charge applicants an admin­ “CORDLAP” means community and rural develop istrative fee not to exceed 1 percent of the principal incut4- luaii j] amount of the loan or grant to be paid as a lump sum "Grant” means an award of assistance without the or a percent of the interest rate at the time the first request requirement that the award be repaid. for grant or loan funds, or both, is filed with the IDED. “Nonprofit development corporation” means any corporation organized for the purpose of developing Item 4. Amend subrule 28.4(4), paragraph “b,” as businesses, industries, and enterprises in the state of Iowa follows: by loaning of money thereto and investing money therein, b. Applications shall be submitted to the following which is operated on a nonprofit basis. For the purposes address: Division of Financial Assistance, Department of this chapter, a nonprofit development corporation may of Economic- Development, CORDLAP RC2000 Pro­ gram, 200 East Grand Avenue, Des Moines, Iowa 50309. “Political subdivision” means city, county, township, Application forms and instructions are available at this school district or other unit of local government. For address or by calling 515/281-3982. 26 NOTICES IAB 7/11/90 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cont’d)

ITEM 5. Amend subrule 28.4(5) by adding a new Item 11. Amend subrule 28.7(3), introductory para­ paragraph “c”: graph, as follows: c. Bonus points. In compliance with 1990 Iowa Acts, 28.7(3) Forms. The following forms will be used by House File 705, eligible applicants that are certified under the department in the administration of the CORDLAP the community builder program will receive an additional RC2000 program: 20 bonus points. ITEM 6. Amend subrule 28.5(2) as follows: 28.5(2) Eligibility. Any political subdivision or nonprofit development corporation in the state of Iowa is eligible to apply for a loan or grant in this category. Other nonprofit corporations must apply through an eligible political subdivision. Item 7. Amend subrule 28.5(3) as follows: 28.5(3) Applications for assistance. ARC 1068A a. General policies. (1) An applicant may submit one application under ECONOMIC DEVELOPMENT, IOWA the new infrastructure category. DEPARTMENT OF[261] (2) No single project may be awarded more than Notice of Intended Action * $400,006 $150,000 per year. (3) The applicant must provide evidence that the Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation project can be completed with the funds requested. hereon as provided in Iowa Code §17A.4(1)“6”. (4) Joint applications for two or more eligible Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any 4-U .«•» fiftliitl/nn 4-f\ r\ nA«fm»nfi wuifuol tJttJ IHUoL vlllClvIlv {JUItTvIutl tv tt pi vuivui TctjuTTCij tuuvuui individual or group, review this proposed action under §17A.8(6) at a regular or special meeting where the public or interested persons action as determined by I-DE-Br If a project crosses may be heard. political subdivision boundaries or if a project directly benefits more than one political subdivision, a joint Pursuant to the authority of Iowa Code sections 15.104 application must be submitted. and 15.106, the Iowa Department of Economic Devel­ (5) Interest rates charged on a loan may not exceed opment hereby gives Notice of Intended Action to 5 percent per annum. establish a new Chapter 29, “Value-Added Agricultural (6) The department will charge applicants an admin­ Products and Processes Financial Assistance Program istrative fee not to exceed 1 percent of the principal (VAAPPFAP),” Iowa Administrative Code. amount of the loan or grant to be paid as a lump sum The proposed new rules will implement this new or a percent of the interest rate at the time of the first program. The program is intended to foster the request for loan or grant funds, or both, from IDED. development of new or innovative products, practices, b. Application procedures. and processes related to agriculture through specialized (1) Applications will be solicited at least annually at financial or technical assistance to facilitate the the discretion of the director of the department. acquisition of capital. Financial assistance may be in the (2) Applications shall be submitted to the following form of a loan, loan guarantee, grant, or a combination address: Division of Financial Assistance, Department thereof, not to exceed an aggregate amount of $80,000. of Economic Development, CORDLAP RC2000 Pro­ Public comments concerning the proposed new chapter gram, 200 East Grand Avenue, Des Moines, Iowa 50309. will be accepted until 4:30 p.m. on August 1, 1990. Application forms and instructions are available at this Interested persons may submit written or oral comments address or by calling 515/281-3982. by contacting: Mary Kay Baker, Division of Financial Assistance, Department of Economic Development, 200 Item 8. Amend subrule 28.5(4) by adding a new East Grand Avenue, Des Moines, Iowa 50309; telephone paragraph “c” as follows: (515)281-7254. c. Bonus points. In compliance with 1990 Iowa Acts, A public hearing to receive comments about the House File 705, eligible applicants that are certified under proposed new chapter will be held on August 1,1990, the community builder program will receive an additional from 1:30 to 3:30 p.m. at the above address in the IDED 20 bonus points. Main Conference Room. Individuals interested in Item 9. Amend subrule 28.6(1) as follows: providing comments at the hearing should contact Mary 28.6(1) Award process. Applicants for projects under Kay Baker by 4 p.m. on July 31, 1990, to be placed on CORDLAP RC2000 infrastructure programs will be the hearing agenda. notified in writing of the disposition of their application These rules are intended to implement 1990 Iowa Acts, no later than 60 90 days after the due date. Senate File 2385. . Item 10. Amend subrule 28.6(3), paragraph “a,” as The following new chapter is proposed: follows: CHAPTER 29 a. Audits. All contracts made under the CORDLAP VALUE-ADDED AGRICULTURAL PRODUCTS RC2000 program are subject to audit. Recipients shall AND PROCESSES FINANCIAL be responsible for the procurement of audit services and ASSISTANCE PROGRAM (VAAPPFAP) for the payment of audit costs. Audits may be performed by the state auditor’s office or by a qualified independent 261—29.1(15) Purpose. The purpose of this program auditor. Audits shall be performed in accordance with is to foster the development of new or innovative products, applicable state and federal laws. practices, and processes related to agriculture through IAB 7/11/90 NOTICES 27

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cant’d) specialized financial or technical assistance to facilitate 261—29.4(15) Loan and grant program. the acquisition of capital. Financial assistance may be 29.4(1) Application procedures. Application materials in the form of a loan, loan guarantee, grant, or a may be obtained from the IDED Division of Financial combination thereof, not to exceed an aggregate amount Assistance, 200 East Grand Avenue, Des Moines, Iowa of $80,000. 50309, telephone (515)281-7254. A comprehensive 261—29.2(15) Definitions. As used in connection with business plan must accompany the application and shall the value-added agricultural products and processes include at least the following: financial assistance program, the following terms have a. Marketing plan for the project; the meanings indicated: b. Project budget and status of alternative financing “Agricultural products advisory council” means a (if applicable); council composed of five members appointed by the c. Production operations; secretary of agriculture and five members appointed by d. Management structure; the director of the department of economic development e. Personnel needs; who are experienced in marketing or exporting f. Description of product, process or practice; agricultural commodities or products, financing the g. Status of product/service development; and export of agricultural commodities or products, or h. Patent status (if applicable). adding value to and processing of agricultural products 29.4(2) Maximum funding levels. as further described in Iowa Code supplement section a. In no case shall a loan exceed $50,000, nor shall 15.203. the value-added agricultural products and processes “Agriculture” means the science, art, and business of financial assistant program finance more than 80 percent cultivating the soil, producing crops and raising of a project. livestock. b. In no case shall a grant exceed $25,000. A grant “Annual gross income” means the total sales before shall be made only to provide leverage for a convention­ deducting returns and allowances but after deducting ally obtained loan. The conventionally obtained loan must corrections and trade discounts, sales taxes and excise be for an amount significantly larger than the amount taxes based on sales as determined in accordance with of the grant. Leveraged financing shall be considered accepted accounting practices. significant when at least $2 of leveraged funds are “Department or IDED” means the Iowa department provided for every $1 in grant funds. of economic development. c. An applicant shall not receive financial or technical “Innovative” means new, creative, or vastly improved. assistance totaling more than $80,000 under this “Person” or “applicant” means any individual, group program as an aggregate amount utilizing loans, loan of individuals, company or community. guarantees or grants! Assistance for technical assistance “Value-added product” .means a product which, shall not exceed $5,000. through a series of activities or processes, can be sold 29.4(3) Interest rate on loans. The interest rate shall at a price higher than its original purchase price. be based on current fair market interest rates as 261—29.3(15) Eligibility. Eligible projects must meet published in the Wall Street Journal under “Prime Rate” the following criteria: as established by large commercial lending institutions. 29.3(1) Residence. The applicant must be a resident The rate shall be at the rate listed in such publication of Iowa. or, at a maximum, 200 basis points above that rate on 29.3(2) Business location. The business or proposed the date of loan closing and shall remain at that rate business must be located in Iowa. for the duration of the term. 29.3(3) Business structure. The business must be 29.4(4) Loan terms. The term shall not exceed five operated under single management and may operate years and in all cases shall be repayable with monthly either for profit or not-for-profit; the business must have installments. fewer than 20 full-time equivalent employees (as defined 29.4(5) Technical assistance. The department may by the U.S. Small Business Administration) or an annual grant up to $5,000 to contract for technical assistance gross income of less than $3 million computed as the in order to aid a person having a pending or approved average of the three preceding fiscal years. application under this subrule. These funds shall be in 29.3(4) Program components. Assistance may be the form of a grant, and the applicant shall provide the provided to approved applicants in the following forms, department with the name of the provider and a except that financial assistance shall not exceed a total description of the services being rendered. Services for of $80,000. this purpose may not commence without prior approval a. Loans not to exceed $50,000; of the department. Payment will be made directly to b. Loan guarantees not to exceed $80,000; the service provider for specified services only. c. Grants not to exceed $25,000 if the grant will provide 29.4(6) Eligible uses of funds. Awards of funds under leverage for a conventionally obtained loan; and this program shall be used for legitimate business d. Technical assistance not to exceed $5,000, not subject purposes including, but not limited to: to the $80,000 aggregate total. a. The development of value-added agricultural 29.3(5) Product. As nearly as practicable agricultural processes not commonly available in this state which are products involved in a processing project should have carried out by a person in this state; . been produced in Iowa. b. The development of an innovative or diversified 29.3(6) Projects. The project must foster the devel­ agricultural product not commonly produced in this state opment of new or innovative products, practices, and which is to be carried out by the person in this state; processes related to agriculture which are not commonly c. The development of an innovative processing, available in this state. packaging, marketing or management practice(s) not 28 NOTICES IAB 7/11/90

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cant’d) commonly available in this state which is to be carried owner may request disbursement of funds on the form out by the person in this state. prescribed by IDED. 29.4(7) Ineligible uses of funds. Awards of funds under 29.4(15) Repayment. Payments will be due on the first this program may not be used for the purposes of day of the month following the date of disbursement and refinancing existing debt. Existing debt in the context on the first day of each successive month until paid in of this rule does not include interim financing obtained full. Late fees may be charged for payments received after the date of the award. The department shall not after the tenth day following the due date. award funds to facilitate financing of a project which 29.4(16) Default. When a loan is in default for a period would consist solely of relocation of an existing business of 60 days, the IDED shall notify the office of the attorney within Iowa. general and recommend appropriate action. 29.4(8) Submittal process. All applications and related informational materials shall be submitted on forms 261—29.5(15) Loan guarantee program. prescribed by IDED. Completed applications shall be 29.5(1) Loan guarantee program description.' This submitted to: Value-Added Agricultural Products and program is intended to allow a business to obtain a Processes Financial Assistance Program, Division of guaranteed loan from a local lender for eligible uses in Financial Assistance, 200 E. Grand Avenue, Des Moines, an amount not to exceed $80,000. Following the Iowa 50309. department’s approval of the application, the value- 29.4(9) Review process. Subject to availability of added agricultural products and processes financial funds, applications are reviewed and rated by IDED staff assistance program will guarantee the financial on an ongoing basis. Applications will be reviewed by institution up to 80 percent of the loan amount. staff for completeness and eligibility. If additional Applicants must meet the credit evaluation of the lending information is required, the applicant shall be provided institution. The lending institution shall make credit risk notice to submit additional information. The applicant evaluations and otherwise make the decision based on shall then have three weeks from the date of the IDED sound lending practices of whether or not to extend credit letter to submit the requested information. IDED staff to the business. After the decision to extend credit has recommendations will be reviewed by the agricultural been made by the participating lender, the borrower products advisory council. Recommendations from the shall forward a complete application to IDED according council will be submitted to the director of the to all requirements in 261—29.4(15). The department will department of economic development for final approval, review and rank the loan applications as set forth in denial or deferral. 29.4(11) and, for applications approved by the agricul­ 29.4(10) Deferral process. Applications may be tural products advisory council and IDED, enter into deferred only one time by the agricultural products a loan guarantee agreement with the participating advisory council. If all additional information requested lender guaranteeing payment to lender in the event the is received within the three-week time frame, subject project defaults. to availability of funds, the application will be considered 29.5(2) Guarantee amount and term. No guarantee on the following month’s agenda. If information is not shall exceed the lesser of 80 percent or $80,000 of the received in a timely manner, second consideration will principal of a loan made to a business. The term of the be delayed by 30 days. No application will be held for guarantee is the lesser of the length of the loan or five over 60 days. If the request for additional information years. The term may be extended for an additional year is not answered, the application will be denied. upon a showing of good cause. The lender shall not 29.4(11) Rating and evaluation criteria. The IDED acquire any preferential security, surety, or insurance staff shall evaluate and rank requests based on the to protect the unguaranteed interest in a loan. following criteria. A maximum of 100 points is possible. 29.5(3) Monitoring. IDED shall have the authority to At least 60 points are needed to be recommended for obtain access to the financial records, ownership identity, funding. and other information it may deem necessary regarding a. Business plan (includes financial plan and market­ the business. The lender shall notify IDED of any adverse ing plan), possible 30 points change in the business’s ownership, financial condition, b. Financial need, possible 10 points or collateral position. c. Management expertise, possible 10 points 29.5(4) Administration of loans. Participating lenders d. Innovativeness, possible 20 points shall hold the loan instrument and shall receive all loan e. Use of Iowa products, possible 15 points payments of principal and interest. The participating f. Amount of value added to product, possible 15 points lender (noteholder) shall not, without prior consent of 29.4(12) Negotiations of funds awarded. The depart­ the department: ment reserves the right to negotiate the amount, term, a. Make or consent to any substantial changes in the interest rate, and other conditions of the loan or grant terms of any loan instrument; prior to the award. b. Make or consent to releases of security or collateral 29.4(13) Award process. Upon approval by the on the loan; director, the applicant business will receive an award c. Accelerate the maturity of the note; letter which shall state the amount of award, conditions d. File suit upon any loan instrument; of the award, any security agreements, and the amount e. Waive any claim against any borrower, cosigner, of monthly loan repayments, if applicable. guarantor, obligor, or standby creditor arising from any 29.4(14) Contract. Following notification of award, Of the loan documents. All loan servicing actions shall contracts will be prepared for execution between the be the responsibility of the participating lender, who applicant business owner and IDED. Business owners shall follow accepted standards of loan servicing are subject to credit checks at this time. If judgments, employed by prudent lenders. federal tax liens, or state liens are found, funding may 29.5(5) Events of default. After a loan is in default be denied. After execution of the contract, the business for a period of 60 days, the lender shall, within 10 days, IAB 7/11/90 NOTICES 29

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cont’d) notify IDED of the default and recommend a course of action. ARC 1052A 29.5(6) Default and eligibility for payment. A default ENVIRONMENTAL PROTECTION is not eligible for payment until the lender has satisfied all administrative and legal remedies for settlement of COMMISSION [567] the loan and the loan has been reduced to a judgment Notice of Intended Action by the lender. After the default has been reduced to Twenty-five interested persons, a governmental subdivision, an agency judgment and the guarantee paid from the loan reserve or an association of 25 or more persons may demand an oral presentation account, the department is entitled to an assignment of hereon as provided in Iowa Code §17A.4(1)“6”. the judgment. The attorney general may take all Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any appropriate action to enforce the judgment or may enter individual or group, review this proposed action under §17A.8(6) at into an agreement with the lender or the department a regular or special meeting where the public or interested persons to provide for enforcement. Upon collection of the amount may be heard. guaranteed, any excess collected shall be applied first Pursuant to the authority of Iowa Code section to principal and then to interest and be paid to the lender 455B. 105(3), the Environmental Protection Commission or to the department as their respective interests may gives Notice of Intended Action, to amend Chapter 39, appear. “Requirements for Properly Plugging Abandoned 29.5(7) Costs of collection. The participating lender Wells,” Iowa Administrative Code. is responsible for all costs and fees, including, but not The proposed amendments are designed to conform limited to, attorneys fees associated with the collection with statutory provisions relating to the use of agricul­ of loans and reducing any default to judgment. tural lime. The first two items involve amendments to 29.5(8) Sharing of repayment proceeds and collateral. two sentences that have been delayed by the Adminis­ The IDED and the lender shall share in any recovery trative Rules Review Committee for a period of 70 days of proceeds including, but not limited to, rights of setoff beyond the scheduled effective date. The third item is and counterclaims, judgments, and bankruptcy trustee similar. payments. IDED’s percentage of recovery shall be equal Any interested person may file written comments or to the percentage of the original loan guarantee. suggestions on the proposed amendments to the rules 29.5(9) Reserve account. The department shall through July 31, 1990. Such written materials should establish a loan reserve account from funds provided for be directed to Wayne Reed, Iowa Department of Natural this program, from which any default on a guaranteed Resources, Wallace State Office Building, 900 East loan shall be paid. In administering the program, the Grand Avenue, Des Moines, Iowa 50319-0034, FAX department shall not guarantee loan values in excess of (515)281-8895. the amount credited to the reserve account and only - Persons are also invited to present oral or written money set aside in the loan reserve account may be used comments at a public hearing which will be held on July for the payment of a default. Each time a loan guarantee 31,1990, at 10 a.m. at the Wallace State Office Building is approved by the department, the amount of value of in the Fifth Floor East Conference Room, 900 East Grand the loan guarantee will be transferred into the loan Avenue, Des Moines, Iowa. reserve account set up for that purpose. As funds in the Copies of the proposed rules may be obtained from reserve account become unencumbered due to the the Records Section, Iowa Department of Natural repayment of loans, the department may transfer money Resources, Wallace State Office Building, 900 East between the reserve and the VAAPPFAP account. The Grand Avenue, Des Moines, Iowa 50319-0034. reserve account shall at all times be actuarially sound. In accordance with Iowa Code section 17A.31, Notice 261—29.6(15) Revolving loan fund. This fund shall is hereby given that these rules may have an impact operate as a revolving loan fund composed of any money on small businesses. appropriated by the general assembly for that purpose, These rules are intended to implement Iowa Code any other moneys available to and obtained or accepted Supplement section 455B.190. by the department from the federal government or Item 1. Amend Subrule. 39.8(3), second paragraph, private sources for placement in the fund, any earned first sentence, to read as follows: interest, and penalties collected from borrowers for late Filling material consisting of sand, gravel, crushed payments as set forth in the loan agreement. stone, or pea gravel or agricultural lime shall be placed 261—29.7(15) Waiver. The department may waive or in the bottom of the well up to four feet below the static vary particular provisions of these rules to conform to water level. requirements of the federal government in connection Item 2. Amend paragraph 39.8(4)“a,” second para­ with a loan with respect to which federal assistance, graph, first sentence, to read as follows: insurance, or guaranty is sought, provided the waiver Filling material consisting of pea gravel, crushed does not conflict with applicable state laws. stone, of gravel or agricultural lime shall be placed from These rules are intended to implement 1990 Iowa Acts, the bottom of the well up to ten feet below the bottom Senate File 2385. of the casing or confining layer, whichever is lower. Item 3. Amend paragraph 39.8(4)“c,” first paragraph, second sentence, to read as follows: For the lowest aquifer, filling material consisting of pea gravel, crushed stone, of gravel or agricultural lime shall be placed from the bottom of the well up to ten feet below the bottom of the casing or confining layer, whichever is lower. 30 NOTICES IAB 7/11/90

ARC 1054A criteria in Table 1. Item 6 will amend subrule 61.3(3), Table 1, by including the actual human health numerical ENVIRONMENTAL PROTECTION criteria. The rule referenced document “Supporting Document for Iowa Water Quality Management Plans” COMMISSION[567] (Iowa Department of Water, Air and Waste Manage­ Notice of Intended Action ment, Chapter IV, July 1976, as revised on Twenty-five interested persons, a governmental subdivision, an agency ______, 1990) will be revised to note the or an association of 25 or more persons may demand an oral presentation calculation approach to be followed in developing hereon as provided in Iowa Code §17A.4(1)“6”. wasteload allocations and permit limits based on the Notice is also given to the public that the Administrative Rules Review human health criteria. Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at Any interested person may submit written suggestions a regular or special meeting where the public or interested persons or comments on the proposed rule changes through may be heard. August 17, 1990. Such written materials should be Pursuant to the authority of Iowa Code sections directed to Ralph Turkle, Iowa Department of Natural 455B.105 and 455B.173, the Environmental Protection Resources, Wallace State Office Building, 900 East Commission for the Department of Natural Resources Grand Avenue, Des Moines, Iowa 50319-0034, or FAX gives Notice of Intended Action to amend Chapter 60, 515/281-8895. Persons who have questions may contact “Scope of Title—Definitions—Forms—Rules of Prac­ Ralph Turkle at (515) 281-7025. tice,” and Chapter 61, “Water Quality Standards,” Iowa Persons are also invited to present oral or written Administrative Code. comments at public hearings which will be held at 1 The recent revisions which amended the numerical and p.m. on August 1,1990, in the auditorium of the Wallace narrative criteria of the water quality standards effective State Office Building, 900 East Grand Avenue,-Des May 23, 1990, included new aquatic use protection Moines, Iowa; on August 2, 1990, at 7 p.m. in the Sioux designations for Iowa’s various water bodies. However, City Main Library, 529 Pierce Street, Sioux City, Iowa; with the U.S. Environmental Protection Agency’s (EPA) and at 7 p.m. on August 7, 1990, in the Cedar Rapids new emphasis to encourage states to adopt in-stream Main Library, 500 First Street S.E., Cedar Rapids, Iowa. criteria to protect human health, the Department of These rules may have an impact upon small businesses. Natural Resources proposes to include human health Copies of these proposed rules may be obtained from criteria applicable to Iowa waters. The criteria would Sarah Detmer, Records Center, Iowa Department of protect citizens from elevated levels of toxic pollutants Natural Resources, Wallace State Office Building, 900 due to the consumption of fish and shellfish caught, in East Grand Avenue, Des Moines, Iowa 50319-0034. Iowa waters. These rules are intended to implement Iowa Code­ The department has not developed the numerical chapter 455B, division III, part I. criteria from toxicity testing data specific to Iowa, but Item 1. Amend rule 60.2 (455B) by adding the rather used the EPA national guideline data and selected following new definition in alphabetical order: a probable risk level. For carcinogenic parameters, a “Human health criteria” means that level of pollution risk level of 10~5 was selected. This represents the which, in the case of noncarcinogens, prevents adverse potential for an increase in a cancer incident from 70 health effects in humans, and in the case of carcinogens, years of consumption of an average of 6.5 grams of fish represents a level of incremental cancer risk of 1 in per day by a 70-kilogram individual. For noncarcino- 100,000. The numerical criteria are based on the human genic parameters, the recommended EPA criteria was consumption of an average of 6.5 grams of fish and selected and represents a concentration to prevent shellfish per day by a 70-kilogram individual for a life specific physiological effects caused by excessive span of 70 years. amounts of the pollutant. For Class C water, the EPA criteria for fish and water consumption were selected Item 2. Amend subrule 61.2(1), second unnumbered using the same considerations for carcinogenic and paragraph, as follows: noncarcinogenic parameters as noted above. The EPA Certain of the criteria are in narrative form without' risk assessment used in deriving the numerical criteria numeric limitations. In applying such narrative assumes the relationships associated with pollutant standards, decisions will be based on the U.S. Envi­ concentrations in the waters and the resulting contam­ ronmental Protection Agency’s methodology described ination of fish flesh. in “Guidelines for Deriving Numerical National Water . The human health criteria noted in Table 1 are Quality Criteria for the Protection of Aquatic Organisms proposed to be met at the boundary of the mixing zone and their Uses,” (1985) and on the rationale contained following the same approach as for the chronic aquatic in “Quality Criteria for Water,” published by the U.S. life criterion. The more stringent of the criteria will be Environmental Protection Agency (1977), as updated by met by the permit limits developed for the dischargers supplemental Section 304 (of the Act) Ambient Water of the pollutants. Not all parameters included in Table Quality Criteria documents. To provide human health 1 have human health criteria established by EPA. criteria for parameters not having numerical values listed Item 1 will add a definition for “human health criteria” in 61.3(3), Table 1, the required criteria mil be based in rule 60.2(455B). As Item 2, subrule 61.2(1) will be on the' rationale contained in these EPA criteria expanded to provide guidance on the method to develop documents. The human health criterion considered will additional human health criteria, if needed, for be the value associated with the consumption of fish flesh parameters not included in Table 1. Items 3 and 4 will and a risk factor of 10'6 for carcinogenic parameters. For amend subrule 61.2(4) to provide that the human health noncarcinogenic parameters, the recommended EPA criteria will be met at the boundary of the mixing zone. criterion associated with fish consumption will be selected. Item 5 will add a new numbered paragraph to For Class C water, the EPA criteria for fish and water 61.3(3)“b”(3) describing the basis for the human health consumption will be selected using the same considerations IAB 7/11/90 NOTICES 31 ENVIRONMENTAL PROTECTION COMMISSION[567] (cant'd.) for carcinogenic and noncarcinogenic parameters as noted considerations for carcinogenic and noncarcinogenic above. parameters as noted above. Item 3. Amend 61.2(4), introductory paragraph, to read as follows: Use Designations 61.2(4) Regulatory mixing zones. Mixing zones are recognized as being necessary for the initial assimilation of point source discharges which have received the Parameter B(CW) B(WW)B(LR) B(LW)C required degree of treatment or control. Mixing zones Arsenic (III) Chronic 200 200 1000 200 — shall not be used for, or considered as, a substitute for Acute 360 360 1800 360 50 minimum treatment technology required by subrule Human 61.2(3). The objective of establishing mixing zones is to Health l.i l.i _ l.i _ provide a means of control over the placement and emission of point source discharges so as to minimize Barium Acute — — — — 1000 environmental impacts. Waters within a mixing zone Benzene Acute — — — — 5 shall meet the general water quality criteria of subrule Human 61.3(2). Waters at and beyond mixing zone boundaries Health 712.8 712.8 _ 712.8 _ shall meet all applicable standards and the chronic and human health criteria of subrule 61.3(3), Tables 1 and Cadmium Chronic 1 - 15 25 1 — 3, for that particular water body or segment. A zone Acute 4 75 100 4 10 of initial dilution may be established within the mixing Human _ — zone beyond which the applicable standards and the Health+ 168 168 168 acute criteria of subrule 61.3(3) will be met. For waters Carbon Tetra-Acute — — — — 5 designated under subrule 61.3(5), any parameter not chloride Human included in Tables 1, 2 and 3 of subrule 61.3(3), the Health ii.2 U.2 _ ii.2 _ chronic and human health criteria, and the acute criterion Chloride Acute — — — — 250* calculated following subrule 61.2(1), will be met at the mixing zone and zone of initial dilution boundaries Chlordane Chronic .004 .004 .15 .004 — respectively. Acute 2.5 2.5 2.5 2.5 — Human Item 4. Amend 61.2(4) “c,” to read as follows: Health .006 .006 — .006 .006 c. The stream flow used in determining wasteload allocations to assure compliance with the chronic and Chlorobenzene Human human health criteria of Table 1 will be that value Health + 20 20 — 20 20 - contained at the boundary of the allowed mixing zone. Chromium This stream flow may not exceed the following percen­ (VI) Chronic 40 40 200 10 — tages of the seven-day, ten-year low stream flow as Acute 60 60 300 15 50 measured at the point of discharge: Human (1) Twenty-five percent for interior streams and rivers, Health+ 3365 3365 — 3365 and the Big Sioux and Des Moines Rivers. (2) Ten percent for the Mississippi and Missouri Rivers. Copper Chronic 20 35 55 10 — The stream flow in the zone of initial dilution used Acute 30 60 90 20 1000 in determining effluent limits to assure compliance with Human the acute criteria of Table 1 may not exceed 10 percent Health+ 1000 1000 — 1000 — of the calculated flow associated with the mixing zone. Cyanide Chronic 5 10 10 10 — 45 45 45 20 Item 5. Amend 61.3(3)“b”(3) by adding the following Acute 20 numbered paragraph: i,i’-DDT+ + Human 3. The human health criteria represents the level of Health .0059 .0059 — .0059 .0059 protection necessary, in the case of noncarcinogens, to para- prevent adverse health effects in humans, and in the case - Dichloro­ Acute 75 of carcinogens, to prevent a level of incremental cancer benzene Human risk not exceeding 1 in 100,000. In-stream concentrations Health+ 2.6* 2.6* ___ 2.6* — in excess of the human health criteria will be allowed only within the boundaries of the mixing zone. 3,3-Dichtoro benzidine Human Item 6. Amend 61.3(3) Table 1 as follows: Health .2 .2 — .2 .1 Table 1: Criteria For Chemical Constituents (all values as micrograms per liter unless noted 1,2-Dichloro- Acute — — — — 5 otherwise). ethane Human Human health criteria for carcinogenic parameters Health 986 986 — 986 — noted below were based on the prevention of an incremental 1,1-Dichloro- Acute • — — — — 7 cancer risk of 1 in 100,000. For parameters not having ethylene Human a noted human health criteria, the U.S. Environmental Health 32 32 — 32 — Protection Agency has not developed final national guideline values. For noncarcinogenic parameters, the Dieldrin Human recommended EPA criterion for fish consumption was Health .oou .oou ___ .001i .OOli selected. For Class C water, the EPA criteria for fish 2,3,7,8- TCDD Human and water consumption were selected vising the same (Dioxin) Health .OOOUf.OOOllA— .0001^.00013f 32 NOTICES IAB 7/11/90

ENVIRONMENTAL PROTECTION COMMISSION[567] (cont’d)

Use Designations Use Designations

Parameter B(CW)BfWWPfLR) B(LW)C Parameter B(CW) BOVWP(LR) B(LW)C Fluoride Acute — — — — 2000 Zinc Chronic 200 450 2000 100 Acute 220 500 2200 110 Heptachlor Human Human Health .002 .002 — .002 .002 Healths 5000 5000 — 5000 Lead Chronic 3 30 80 3 — Acute 80 200 750 80 50 *expressed as milligrams/liter

Mercury (II) Chronic .05 .05 .25 .05 — **to include the sum of known and suspected carcinogenic Acute 6.5 6.5 10 2.5 2 PAHs Human texpressed as nanograms/liter Health + .15 .15 — .15 — +Represents the noncarcinogenic human health parameters. ++ The concentrations of 1,1'- DDT or its metabolites; 1,1'- DDE Nitrate as and 1,1'- DDD, individually shall not exceed the human health N03 Acute — — — — 45* criterion. Nickel Chronic 350 650 750 150 — Acute 3250 5800 7000 1400 — Human Health + 1581 1581 — 1581 607 Polychlori- nated Chronic .014 .014 1 .014 — Biphenyls (PCBs) Acute 2 2 2 2 Human ARC 1039A Health .0001 .0001 — .0001 .ooou HUMAN SERVICES Polynuclear Chronic .03 .03 3 .03 — Aromatic DEPARTMENT[441] Hydro- Acute 30 30 30 30 Notice of Intended Action Carbons Twenty-five interested persons, a governmental subdivision, an agency - (PAHs)** Human or an association of 25 or more persons may demand an oral presentation Health .3 .3 .3 .028 hereon as provided in Iowa Code §17A.4(1)“6”. — Notice is also given to the public that the Administrative Rules Review Phenols Chronic 50 50 50 50 Committee may, on its own motion or on written request by any Acute 1000 2500 2500 1000 50 individual or group, review this proposed action under §17A.8(6) at Human a regular or special meeting where the public or interested persons may be heard. Health + 300 300 — 300 ___ Pursuant to the authority of Iowa Code section 239.18, Selenium (Vl)Chronic 10 125 125 70 — the Department of Human Services proposes to amend Acute 15 175 175 100 10 Chapter 41, “Granting Assistance,” appearing inUhe Silver Chronic 2.5 8.5 8.5 .35 — Iowa Administrative Code. Acute 30 100 100 4 50 The Seventy-third General Assembly, in 1990 Iowa Toluene Chronic 50 50 150 50 — Acts, Senate File 2435, section 1, subsection 6, directed the Department to develop a waiver to exempt income Acute 2500 2500 7500 2500 — Human received by a participant in the Dollar-A-Day program Health + 300* 300* ___ 300* 101* in determining the participant’s eligibility for Aid to Dependent Children (ADC). However, after consulting Total with federal staff, the Department determined that the Residual Chronic 10 20 25 10 — payments can be considered as complimentary assistance Chlorine and are, therefore, exempt. As long as the payment does (TRC) Acute 35 35 40 20 ___ not exceed the difference between the state’s payment 1,1,1- standard and the standard of need, it may be exempted Trichloro- as complimentary assistance. Therefore, this amendment ethane Acute 200 exempts income from the Dollar-A-Day program in Human determining eligibility and the amount of assistance for Health+ 173* 173* ___ 173* _ ADC. The Dollar-A-Day program is state-funded through an Trichloro- Adolescent Pregnancy Prevention grant. The program ethylene Chronic 80 80 . 80 80 — focuses on preventing subsequent pregnancies for (TCE) - Acute 4000 4000 4000 4000 5 Human adolescent mothers who are 16 or younger by providing ___ _ a monetary incentive. These young mothers are required Health 807 807 807 to attend a weekly meeting which concentrates on Vinyl preventing another pregnancy during the adolescent Chloride Acute — — — — 2 years as well as meeting the social and economic needs Human of the participants. As long as the mother attends the Health 5,250 5,250 _ 5,250 weekly sessions and does not become pregnant, she is IAB 7/11/90 NOTICES 33 HUMAN SERVICES DEPARTMENTS 1] (ccmt’d) paid $1 per day. The time interval permits physical and ARC 1041A emotional growth and maturation, thereby more fully equipping teens for their future maternal role. The HUMAN SERVICES philosophy of the program is not to prevent any future DEPARTMENT[441] children, but to provide a viable way to delay pregnancy. Currently the Dollar-A-Day program is operating only Notice of Intended Action in Black Hawk County and has nine participants. Twenty-five interested persons, a governmental subdivision, an agency However, the program could be expanded. It is the or an association of 25 or more persons may demand an oral presentation Department’s intent, if this rule is adopted, to implement hereon as provided in Iowa Code §17A.4(1)“6” the rule retroactively to the beginning of the program. Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any Consideration will be given to all written data, views, individual or group, review this proposed action under §17A.8(6) at and arguments thereto received by the Bureau of Policy a regular or special meeting where the public or interested persons Analysis, Department of Human Services, Hoover State may be heard. Office Building, Des Moines, Iowa 50319-0114, on or Pursuant to the authority of Iowa Code section 249A.4, before August 1,1990. the Department of Human Services proposes to amend This rule is intended to implement Iowa Code section Chapter 75, “Conditions of Eligibility,” appearing in the 239.5. Iowa Administrative Code. The following amendment is proposed: These amendments clarify policy regarding deductions Amend subrule 41.7(7) by adding the following new from income for personal needs when determining the paragraph: amount of client participation for persons in nursing ab. Incentive payments received from participation in facilities as follows: the Dollar-A-Day program. 1. Income paid by a foster child for foster care in the month of entry into the facility is not available for the cost of care in the facility. 2. The additional $65 deduction when a person in a facility has earned income is a deduction from the earned income only. 3. The allowance for stated expenses during the month of entry is for home living expenses. ARC 1043A 4. The allowance for home living expenses in the month when the resident leaves the facility is allowable in any HUMAN SERVICES month of discharge without a physician certification that DEPARTMENT[441] the stay will be less than six months. This change was based on a recent clarification from the Health Care Notice of Intended Action Financing Administration. Twenty-five interested persons, a governmental subdivision, an agency Consideration will be given to all written data, views, or an association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code §17A.4(1)“6”’. and arguments thereto received by the Bureau of Policy Analysis, Department of Human Services, Hoover State Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any Office Building, Des Moines, Iowa 50319-0114, on or individual or group, review this proposed action under §17A.8(6) at before August 1, 1990. a regular or special meeting where the public or interested persons may be heard. This rule is intended to implement Iowa Code section 249A.4. Pursuant to the authority of Iowa Code sections 217.6, The following amendments are proposed: 234.6, and 249A.4, and 1990 Iowa Acts, Senate File 2435, section 38, the Department of Human Services proposes Item 1. Amend ■ subrule 75.16(1) by adding the to amend Chapter 52, “Payment,” Chapter 78, “Amount, following new paragraph: Duration and Scope of Medical and Remedial Services,” f. Foster care recipients. The amount of income paid Chapter 79, “Other Policies Relating to Providers of for foster care for the days that a child is in foster care Medical and Remedial Care,” Chapter 82, “Intermediate in the same month as entry to a medical institution is Care Facilities for the Mentally Retarded,” Chapter 150, not available for client participation. “Purchase of Service,” Chapter 156, “Payments for Item 2. Amend subrule 75.16(2), paragraph “a,” Foster Care and Foster Parent Training,” and Chapter paragraph “b,” subparagraphs (1), (2), and (3), and 177, “In-Home Health Related Care,” appearing in the paragraph “c,” as follows: Iowa Administrative Code. a. Ongoing personal needs allowance. All clients shall The substance of these amendments was adopted and retain $30 of their monthly income for a personal needs filed emergency and is published herein as ARC 1042A. allowance. If the client has earned income, an additional The purpose of this Notice is to solicit comment on that $65 is added to the ongoing personal needs allowance submission, the subject matter of which is incorporated from the earned, income only. by reference. b. Personal needs in the month of entry. Consideration will be given to all written data, views, (1) Single person! A single person shall be given an and arguments thereto, received by the Bureau of Policy allowance for stated home living expenses during the Analysis, Department of Human Services, Hoover State month of entry, up to the amount of the SSI benefit for Office Building, Des Moines, Iowa 50319-0114 on or a single person. before August 1, 1990. (2) Spouses entering institutions together and living These rules are intended to implement Iowa Code together. A married couple Partners in a marriage who sections 234.6, 234.38, 249.4, and 249A.4 and 1990 Iowa enters enter a medical institution in the same month and Acts, Senate File 2435, sections 2 and 31. live in the same room shall be given an allowance for 34 NOTICES IAB 7/11/90

HUMAN SERVICES DEPARTMENT[441] (cont’d) stated home living expenses during the month of entry, This rule is intended to implement Iowa Code section up to the amount of the SSI benefit for a couple. 249A.4. (3) Spouses entering an institution together but living The following amendment is proposed: apart. Members of a married couple Partners in a Amend subrule 78.16(6) by adding the following new marriage who enter a medical institution during the paragraph: same month; but bve in different rooms and who are c. Payment will be approved for day treatment services considered separately for eligibility shall each be given provided by or under the general supervision of a mental an allowance for stated home living expenses during the health professional as defined in rule 441—33.1(225C, month of entry, up to one-half of the amount of the SSI 230A). When services are provided by an employee or benefit for a married couple. However, if the income consultant of the community mental health center who of one spouse is less than one-half of the SSI benefit for is not a mental health professional, the employee or a couple, the remainder of the allowance shall be given consultant shall be supervised by a mental health to the other spouse. If the couple’s eligibility is determined professional who gives professional direction and active together, an allowance for stated home living expenses shall guidance to the employee or consultant and who retains be given to them during the month of entry up to the SSI responsibility for consumer care. The supervision shall benefit for a married couple. be timely, regular, and documented. c. Personal needs in the month of discharge. When a physician verifies at the time of a client’s entry to a /\/*i Irtn I 1 4U rtt 4U rt wft A w l rt A TrKNrt 4- MAtuMM Tn\JtXiCc*T mo iii vu iiiv/n LI 1 cl* L L11L pCIkSOIT lo CTCpCvTCCvI TO lv LUi II home within six months, the The client shall be allowed a deduction for home living expenses in the month of discharge. The amount of the deduction shall be the SSI benefit for one person (or for a couple, if both members are discharged in the same month). This deduction does not apply when a spouse is at home.

ARC 1064A HUMAN SERVICES DEPARTMENT[441] ARC 1040A Notice of Termination Notice is hereby given that the Department of Human HUMAN SERVICES Services is terminating further rule-making proceedings DEPARTMENT[441] under the provisions of Iowa Code section 17A.4(l)“b” for proposed rule making relating to Chapter 79, “Other Notice of Intended Action Policies Relating to Providers of Medical and Remedial Twenty-five interested persons, a governmental subdivision, an agency Care,” Iowa Administrative Code. or an association of 25 or more persons may demand an oral presentation Notice of Intended Action was published in the Iowa hereon as provided in Iowa Code §17A.4(1)“6”. Administrative Bulletin on May 2,1990, as ARC 851A. Notice is also given to the public that the Administrative Rules Review The Notice proposed changes to the diagnosis related Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at groups (DRG) prospective payment system for hospitals. a regular or special meeting where the public or interested persons A portion of the Notice regarding an increase in the may be heard. disproportionate share add-on rate was previously Pursuant to the authority of Iowa Code section 249A.4, implemented effective July 1, 1990. (See ARC 1027A the Department of Human Services proposes to amend herein) Chapter 78, “Amount, Duration and Scope of Medical The Department is terminating the remainder of ARC and Remedial Services,” appearing in the Iowa Admin­ 851A and renoticing rules regarding the hospital istrative Code. payment system (See ARC 1065A herein) for the This amendment allows Medicaid payment to a following reasons: community mental health center certified to provide day 1. When changing the funding source of the dispro­ treatment when services are provided by or under the portionate share add-on, the Iowa Legislature also general supervision of a mental health professional. changed the associated funding structure. This change Currently services are reimbursed only when provided in structure significantly changed the internal calcula­ directly by a professional. tions of the DRG system, hence a reallocation of resources. Community mental health centers are experiencing 2. The indirect medical education component was problems in recruiting master’s level social workers and found to contain an error in theoretical application. The other master’s level staff. This change is consistent with correction of this error changes the distribution of the standards for community mental health center resources among hospitals. services. 3. As a prudent buyer of services, the Department feels Consideration will be given to all written data, views, that the use of Iowa legislative trend factors more and arguments thereto received by the Bureau of Policy accurately reflects current position in Iowa, than use of Analysis, Department of Human Services, Hoover State externally created national update rates. The use of Office Building, Des Moines, Iowa 50319-0114, on or different trend factor adjustments redistributes before August 1, 1990. resources among Iowa hospitals. IAB 7/11/90 NOTICES 35

ARC 1065A Each out-of-state hospital will have the option of submitting a cost report and associated documentation HUMAN SERVICES to Unisys, the Department’s fiscal agent, for purposes DEPARTMENT[441] of receiving a reimbursement level based on the level an in-state hospital would receive in Iowa. This Notice of Intended Action documentation must be presented within 60 days from Twenty-five interested persons, a governmental subdivision, an agency the day of discharge. or an association of 25 or more persons may demand an oral presentation 7. There will be three distinct levels of neonatal care hereon as provided in Iowa Code §17A.4(l)

DRG with noted exceptions. Weights are determined e. Add-ons to the base amount. Three Four payments through the following calculations: are added on to the blended base amount. (1) Capital costs. Capital costs are included, in the rate each ease ela33ificd m the same DRG. table listing and added to the blended base amount prior 2 1. Determine the statewide geometric mean charge to setting the final payment rate schedule. This add-on for all cases classified in each DRG. reflects a 50/50 blend of the average statewide average case-mix adjusted capital cost per discharge and the case- geometric mean charge for each DRG by multiplying the mix adjusted hospital-specific base year capital cost per statewide geometric mean charge for each DRG by the discharge attributed to Medicaid patients. Capital east total number of cases classified in the that DRG. payment is costs are determined from the base year cost report and is increased to reflect inflation. The 50/50 geometric mean charges for all DRGs and divide by the blend is calculated by adding the case-mix adjusted total number of cases for all DRGs to determine the hospital-specific per discharge capital cost to the weighted average charge for all DRGs. statewide average case-mix adjusted per discharge 6 U- Divide the statewide geometric mean charge for capital costs and dividing by two. each DRG by the weighted average charge for all DRGs (2) Medieal Direct medical education costs. Medical to derive the Iowa-specific weight for each DRG. Direct medical education costs are added to included in 5. Normalize the weights so that the average case has the rate table listing if applicable to the provider, and a weight of one. added to the blended base amount plus other add-ons (2) The hospital-specific case-mix index is computed by prior to setting the final payment rate schedule. The taking each hospital’s trimmed claims from the period amount added on reflects Medicaid’s average cost per April 1, 1988, through March 31, 1989, summing the discharge for hospital-specific direct medical education assigned DRG weights associated with those claims and adjusted for case-mix. This add-on is determined from dividing by the total number of Medicaid claims associated the base year cost report and is adjusted to reflect with that specific hospital for that period. inflation. d. Calculation of blended base amount. The DRG *(3) Disproportionate share adjustment. Compensation blended base amount reflects a 50/50 blend of statewide for a disproportionate share of indigent patients is and hospital-specific base amounts. included in the rate table listing if applicable to the (1) Calculation of statewide average case-mix adjusted cost per discharge. The statewide average cost per amount plus add-ons prior to setting the final payment discharge is calculated by subtracting from the statewide rate. Hospitals qualify for disproportionate share total Medicaid inpatient expenditures the total expected payments based on information contained in the calculated payments based on hospitals’ base year cost hospital’s available 1985 1988 audited financial state­ reports for capital costs, medical education costs, and ment submitted Medicaid cost report, and other support­ an estimate calculation of actual payments that will be ing schedules. The disproportionate share add-on is made for additional transfers, outliers, physical determined when the hospital’s low-income utilization rehabilitation services, and disproportionate share rate, as defined as by the ratio of gross billings for all payments indirect medical education. The remaining Medicaid, bad debt, and charity care patients to total amount is (which has been case-mix adjusted and adjusted billings for all patients, is 25 percent or greater. Gross to reflect inflation/, and is divided by the statewide total billings do not include cash subsidies received by the number of Medicaid discharges less an estimate for the hospital for inpatient hospital services. Hospitals also actual number of transfers and short stay outliers. qualify for disproportionate share payment when the (2) Calculation of hospital-specific case-mix average hospital’s inpatient Medicaid utilization rate, defined as adjusted average cost per discharge. The hospital-specific the number of total Medicaid and state indigent patient case-mix average adjusted average cost per discharge for care program inpatient days divided by the number of Medicaid inpatients is calculated By subtracting from total inpatient days, exceeds one standard deviation of the lesser of total Medicaid costs, or reimbursable covered the statewide average Medicaid utilization rate. reasonable charges as determined by the hospital’s base Children’s hospitals, defined as hospitals with inpatients year cost report, the expected actual payments for capital predominantly under 18 years of age, receive twice the costs, direct medical education costs, and an estimate percentage of inpatient hospital days attributable to ef the payments that will be made for transfers, outliers, Medicaid patients. physical rehabilitation services? and disproportionate Hospitals qualify for disproportionate share payment share payments. The remaining amount is case-mix when the hospitals meet the low-income utilization or adjusted, adjusted to reflect inflation, and divided by the Medicaid inpatient utilization guidelines defined above total number of Medicaid discharges for that hospital and the hospital has at least two obstetricians who have during the applicable base year, less an estimate for actual staff privileges at the hospital and who have agreed to provide obstetric services to persons who are entitled number of transfers and short stay outliers. to Medicaid for obstetric services. In the case of a hospital (3) Calculation of the blended statewide and hospital- located in a rural area as defined in Section 1886 of the specific base amount. The hospital-specific case-mix Social Security Act, the term “obstetrician” includes any adjusted average cost per discharge is divided by the physician with staff privileges at the hospital to perform nonemergency obstetric procedures. calculated by dividing the hospital’s weighted sum ef The disproportionate share payment add-on is estab­ lished as a minimum payment of TOO 2.50 percent of in that hospital. Then, the hospital-specific case-mix the hospital’s blended base cost per discharge plus add­ ons. The scale increases TOO 2.50 percent for each mix adjusted statewide average cost per discharge and standard deviation above the mean Medicaid utilization divided by two to arrive at a 50/50 blended base amount. *See also ARC 1027A herein 38 NOTICES IAB 7/11/90

HUMAN SERVICES DEPARTMENTS 1] (cant’d) rate for hospitals receiving Medicaid payments in the The PRO shall review a random sample of 25 percent state. of all outlier claims, as well as all claims for which outlier Hospitals” that qualify for disproportionate share payment is in excess of $20,000. The PRO shall be payments under both the low-income utilization and the responsible for notifying each hospital that has been Medicaid utilization guidelines shall qualify for selected for either review. Those hospitals must then submit disproportionate share payment under the Medicaid all supporting data from the medical record to the PRO utilization payment scale. within 60 days of receipt of the outlier review notification, Hospitals that qualify for disproportionate share or outlier payment will be recouped and forfeited. In payments under the low-income utilization guidelines addition, any hospital may request a review for outlier and do not qualify under the Medicaid utilization payment by submitting the medical record to the PRO guidelines shall be paid the minimum payment as within 365 days. If the medical record is not submitted established t» under the Medicaid utilization payment within 365 days, the provider loses the right to appeal scale. or contest the payment. Out-of-state hospitals serving Iowa Medicaid patients (2) ©ay inlicrs Short stay outliers, ©ay inlicrs Short qualify for disproportionate share payment based on the stay outliers are incurred when a patient’s length of stay definition established by their state’s Medicaid agency is greater than two standard deviations below the fee agency’s calculation of the Medicaid inpatient average statewide length of stay for a given DRG, utilization rate. Payment is through the Iowa Medicaid rounded to the next highest whole number of days. Payment utilization payment scale based on the number of for inlicrs short stay outliers will be 200 percent of the standard deviations greater than the hospital’s own state average Medicaid utilization rate. day the patient qualifies up to the full DRG payment. (4) Indirect medical education costs. Recognition for Inlicrs Short stay outlier claims will be subject to PRO indirect medical education costs incurred by hospitals review and payment denied for inappropriate is made through an add-on to the blended base rate cost admissions. per discharge. Hospitals qualify for indirect medical (3) Cost outliers. Cases qualify as cost outliers when education payment when they receive a direct medical costs of service in a given case exceed the upper eest limit education add-on from Iowa Medicaid and qualify for for each DRG cost threshold. The upper eest limit indirect medical education payment from Medicare. This cost threshold is determined when costs are to be Add-on payment for discharges shall be determined by the greater of two times the statewide average DRG multiplying the hospital’s Medicare Medicaid indirect payment for that case and greater than or the hospital’s medical education factor by the sum of 50 percent of individual DRG payment for that case plus by at least the statewide average base cost and 50 percent of the $16,000. Costs are calculated using hospital-specific cost statewide average capital cost and multiplying the to charge ratios determined in the base year cost reports. resulting product by 1.65. The Medicare Medicaid Additional payment for cost outliers is 80 percent of the indirect medical education factor is determined from the difference excess between the hospital’s cost for the following equation: discharge and the upper cost limit threshold established to define cost outliers. Payment for cost outliers shall be Af\C 7*x\jo made at the time the claim is originally filed for DRG (1 + interna and residents)------4 payment. Cost outlier payment shall be made at the rate 1.89—*--- (------beds------)- of 85 percent of the total calculated outlier payment for that DRG using the above rules. The PRO shall review (residents + interns) x 1.159 a random 25 percent sample of all outlier claims as well as all claims for which the outlier payment is in excess (beds) of $20,000. The PRO shall be responsible for notifying each hospital that has been selected for the random review . The number of interns, residents and beds is based or those which havd*claims in excess of $20,000. Those on information contained in the hospital’s Medicare cost hospitals must then submit all supporting data to the PRO within 60 days of the receipt of outlier review notification, be updated when rebasing and recalibration are or outlier payment will be forfeited and recouped. In performed. addition, any hospital may request a review for outlier f. Outlier payment and inlier policy. Additional payment by submitting documentation to the PRO within payment is made for approved cases meeting or 365 days of receipt of the outlier payment. If requests are exceeding Medicaid criteria for day and cost outliers for not filed within 365 days, the provider loses the right to each DRG. appeal or contest that payment. (1) ©ay Long stay outliers, ©ay Long stay outliers are (4) Day and cost outliers. Cases qualifying as both day incurred when a patient’s length of stay exceeds the and cost outliers are given additional payment as cost upper day limit which is threshold. This threshold is outliers only. defined as the greater of 23 days of care and or two Amend subrule 79.1(5), paragraph “i,” subparagraph standard deviations above the average statewide length (1), as follows: of stay for a given DRG. Additional payment Reimburse­ (1) Per diem calculation. The base rate shall be the ment for day long stay outliers is calculated at 60 percent medical assistance per diem rate as determined by the of the average daily rate for the given DRG for each individual hospital’s cost report for the hospital’s 1985 approved day of stay beyond the upper day limit. 1988 fiscal year as adjusted by Medicare except that no Payment for long stay outliers shall be made at the time recognition will be given to the professional component the claim is originally filed for DRG payment. Payment of the hospital-based physicians. for the outlier claim shall be made at the rate of 85 percent The annual index will be calculated by the department of the total calculated reimbursement for long stay outliers. based on the average percentage change in a standard IAB 7/11/90 NOTICES 39 HUMAN SERVICES DEPARTMENT[441] (cant’d)

category of hospital expenses to which forecasted n. Inappropriate services. Medicaid adopts most increases will be applied. Medicare PRO regulations to control increased admis­ Amend subrule 79.1(5), paragraphs “j,” “1,” “m,” “n,” sions or reduced services. Exceptions to the Medicare “r," and “s,” as follows: review practice are that the PRO reviews Medicaid j. Services covered by DRG payments. Medicaid adopts inliers short stay outliers and all Medicaid patients the Medicare definition of inpatient hospital services readmitted within seven days. Payment can be denied covered by the DRG prospective payment system. As a if either admissions or discharges are performed without result, combined billing for physician services is medical justification as determined by the PRO. To eliminated. Services provided by certified nurse safeguard against these and other inappropriate anesthetists (CRNAs) employed by a physician are practices, the department through the PRO will monitor covered by the physician reimbursement. Payment for admission practices and quality of care. If an abuse of the services provided by of CRN As employed by the the prospective payment system is identified, payments hospital are included in the hospital’s reimbursement. for abusive practices may be reduced or denied. In The cost for hospital-based ambulance transportation reducing or denying payment, Medicaid adopts the that results in inpatient admission and hospital-based Medicare PRO regulations. ambulance services performed while the beneficiary is r. Certification of special units. Medicaid certification an inpatient, in addition to all other inpatient services, of substance abuse, psychiatric and rehabilitation units is covered by the DRG payment. is based on the Medicare reimbursement criteria for l. Eligibility and payment. When a client is eligible excluded these units. The In Iowa, the department of for Medicaid for less than or equal to the average length inspections and appeals is responsible for Medicaid of stay for that DRG, then payment equals 100 percent certification of these units for in-state hospitals. Neonatal of the hospital’s average daily rate times the number units are certified using standards adopted by the of eligible hospital stay days. When a Medicaid client department of public health in accordance with recom­ is eligible for greater than the average length of stay mendations set forth by the American Academy of but less than the entire stay, then payment is treated Pediatrics for newborn care. as if the client were eligible for the entire length of stay. An out-of-state hospital may receive certified unit Outlier Long stay outlier days are determined as the status as a qualifying psychiatric unit when Medicare J 41% /i 4- % % %% % 4 **% /%%ry%%%% **%4 4%%^,%^% 4Uy% 11/1 /%^1% /%/% Mrt I 1 D I ' number of Medicaid eligible days beyond the outlier UcslgTlUlCis lilMb trrrrt zes cAcllipi ttttttt tilt? tvicuiuort r/ivu limits. Date of patient admission is the first date of payment system the unit is eligible for reimbursement service. Outlier Long stay outlier costs are accrued only under the Medicare prospective payment system. Out-of- during eligible days. state hospitals must submit a copy of the Medicare m. Payment to out-of-state hospitals. Payment made exemption notice acceptance to the Iowa Medicaid fiscal to out-of-state hospitals providing care to beneficiaries agent in order to receive special payment as a Medicaid- of Iowa’s Medicaid program is equal to either the Iowa certified psychiatric unit. Neonatal units are accepted statewide average blended base amount plus the statewide as being certified when the hospital is inspected by the average capital cost add-on, multiplied by the DRG home state agency responsible for licensing, using weight, or blended base and capital rates calculated by standards set forth by the American Academy of using the hospital’s submitted cost report. For those Pediatrics for newborn care. Out-of-state hospitals are hospitals which wish to submit a cost report using data not recognized as having special units for substance for Iowa Medicaid patients only, that provider will receive abuse or physical rehabilitation treatment. Reimburse­ a case-mix adjusted blended base rate vising hospital- ment for physical rehabilitation is through the DRG specific Iowa only Medicaid data and the Iowa statewide payment. Out-of-state hospitals may not receive reim­ average cost per discharge amount. Capital costs will be bursement for the rehabilitation portion of substance reimbursed at either the statewide average rate in place abuse treatment. at the time of discharge, or the blended capital rate s. Cost report adjustments. Hospitals with 1985 1988 computed by using submitted cost report data. Hospitals cost reports adjusted by Medicare through the cost that qualify for disproportionate share payment based on settlement process on or after October T 1987 October the definition established by their state’s Medicaid agency 1, 1990, may appeal the hospital-specific base amount for the calculation of the Medicaid inpatient utilization and add-ons used in calculating the Medicaid payment rate will be eligible to receive disproportionate share to the department. payments. If a hospital qualifies for reimbursement for the direct medical education or indirect medical education component under Medicare guidelines, it shall qualify for ARC 1033A this add-on component for reimbursement purposes in Iowa. Hospitals which wish to submit the HCFA 2552 HUMAN SERVICES (or HCFA accepted substitute) cost report, must do so DEPARTMENT[441] within 60 days from the date of patient discharge, to the state of Iowa’s fiscal agent. Hospitals which elect to submit Notice of Intended Action cost reports for the determination of blended rates, must Twenty-five interested persons, a governmental subdivision, an agency submit new reports on an annual basis, within 90 days or an association of 25 or more persons may demand an oral presentation of the close of the hospital’s fiscal year end. When audited, hereon as provided in Iowa Code §17A.4(1)“5” Notice is also given to the public that the Administrative Rules Review finalized reports become available from the Medicare Committee may, on its own motion or on written request by any intermediary, these should be submitted to the Iowa individual or group, review this proposed action under §17A.8(6) at Medicaid fiscal agent. Psychiatric units in out-of-state a regular or special meeting where the public or interested persons hospitals may receive Medieaid certified unit status may be heard. when the unit qualifies as a DRG exempt unit under Pursuant to the authority of Iowa Code section 249A.4 and 1990 Iowa Acts, Senate File 2435, section 38, the 40 NOTICES IAB 7/11/90

HUMAN SERVICES DEPARTMENT[441] (cant’d)

Department of Human Services proposes to amend ARC 1038A Chapter 81, “Intermediate Care Facilities,” appearing in the Iowa Administrative Code. HUMAN SERVICES The substance of these amendments was adopted and filed emergency and is published herein as ARC 1032A. DEPARTMENT[441] The purpose of this Notice is to solicit comment on that Notice of Intended Action submission, the subject matter of which is incorporated Twenty-five interested persons, a governmental subdivision, an agency by reference. or an association of 25 or more persons may demand an oral presentation Consideration will be given to all written data, views, hereon as provided in Iowa Code §17A.4(1)“6” and arguments thereto, received by the Bureau of Policy Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any Analysis, Department of Human Services, Hoover State individual or group, review this proposed action under §17A.8(6) at Office Building, Des Moines, Iowa 50319-0114 on or a regular or special meeting where the public or interested persons before August 1, 1990. may be heard. Oral presentations may be made by appearing at the Pursuant to the authority of Iowa Code section 236.4, following meeting. Written comments will also be the Department of Human Services proposes to amend accepted at that time. Chapter 130, “General Provisions,” appearing in the Iowa Des Moines - August 1, 1990 10 a.m. Administrative Code. Des Moines District Office This amendment provides that any family that has City View Plaza, Conference Room 100 received 12 months of transitional child care does not 1200 University Des Moines, Iowa 50314 have to be placed on a waiting list for day care services These rules are intended to implement Iowa Code if the family is eligible for state child care assistance. section 249A.4 and 1990 Iowa Acts, Senate File 2435, This change may prevent a family from having to give section 31, subsection 1. up employment and go back on Aid to Dependent Children. Consideration will be given to all written data, views, and arguments thereto received by the Bureau of Policy Analysis, Department of Human Services, Hoover State Office Building, Des Moines, Iowa 50319-0114, on or before August 1,1990. This rule is intended to implement Iowa Code section ARC 1020A 234.6. The following amendment is proposed: HUMAN SERVICES Amend subrule 130.3(6) by adding the following new paragraph: DEPARTMENT[441] d. Exception. A family that has received transitional Notice of Intended Action child care assistance for 12 consecutive months under Twenty-five interested persons, a governmental subdivision, an agency 441—Chapter 49 and applies for state child day care or an association of 25 or more persons may demand an oral presentation assistance shall be approved for child care services and hereon as provided in Iowa Code §17A.4(l)a6”. not entered on a log if the family is eligible for services. Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at a regular or special meeting where the public or interested persons may be heard. Pursuant to the authority of Iowa Code section 234.6 and 1990 Iowa Acts, Senate File 2435, section 38, the Department of Human Services proposes to amend Chapter 130, “General Provisions,” and Chapter 153, ARC 1037A “Social Services Block Grant,” appearing in the Iowa Administrative Code. HUMAN SERVICES The substance of these amendments was adopted and DEPARTMENT[441] filed emergency and is published herein as ARC 1019A. Notice of Intended Action The purpose of this Notice is to solicit comment on that submission, the subject matter of which is incorporated Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation by reference. hereon as provided in Iowa Code §17A.4(1)“6" Consideration will be given to all written data, views, Notice is also given to the public that the Administrative Rules Review and arguments thereto, received by the Bureau of Policy Committee may, on its own motion or on written request by any Analysis, Department of Human Services, Hoover State individual or group, review this proposed action under §17A.8(6) at a regular or special meeting where the public or interested persons Office Building, Des Moines, Iowa 50319-0114 on or may be heard. before August 1, 1990. These rules are intended to implement Iowa Code Pursuant to the authority of Iowa Code section 234.6, section 234.6 and 1990 Iowa Acts, Senate File 2435, the Department of Human Services proposes to amend section 6, subsection 3. Chapter 156, “Payments for Foster Care and Foster Parent Training,” appearing in the Iowa Administrative Code. This amendment increases the stipend foster parents receive for in-service training from $50 to $100 per family. IAB 7/11/90 NOTICES 41 HUMAN SERVICES DEPARTMENT[441] (cont’d) Prior to October 1, 1989, foster parents were reim­ ARC 1022A bursed annually for in-service training expenses up to a maximum of $75 per person or $150 for a two-parent HUMAN SERVICES foster family. Actual payments ranged from $3 to $75 per person. That system was cumbersome and inefficient, DEPARTMENT[441] resulting in long delays for reimbursement and Notice of Intended Action * discouraging some foster parents from making any claim Twenty-five interested persons, a governmental subdivision, an agency at all. or an association of 25 or more persons may demand an oral presentation Effective October 1, 1989, foster parents began hereon as provided in Iowa Code §17A.4(l)tffr0. receiving an annual stipend of $50 per family for in- Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any service training. This amount does not cover the out- individual or group, review this proposed action under §17A.8(6) at of-pocket transportation and other per diem expenses a regular or special meeting where the public or interested persons of many of the families. may be heard. The Omnibus Budget Reconciliation Act of 1989 Pursuant to the authority of Iowa Code section 217.6 increased the federal reimbursement for per diem and 1990 Iowa Acts, Senate File 2435, section 38, the training expenses of foster parents from 50 percent to Department of Human Services proposes to amend 75 percent. Therefore, this increase in stipend will not Chapter 163, “Adolescent Pregnancy Prevention and increase the expenditure of state dollars. Services to Pregnant and Parenting Adolescents Consideration will be given to all written data, views, Program,” appearing in the Iowa Administrative Code. and.arguments thereto received by the Bureau of Policy The substance of these amendments was adopted and Analysis, Department of Human Services, Hoover State filed emergency and is published herein as ARC 1021A. Office Building, Des Moines, Iowa 50319-0114, on or The purpose of this Notice is to solicit comment on that before August 1,1990. submission, the subject matter of which is incorporated This rule is intended to implement Iowa Code section by reference. 237.5A. Consideration will be given to all written data, views, The following amendments are proposed: and arguments thereto, received by the Bureau of Policy ITEM 1. Amend subrule 156.18(4) as follows: Analysis, Department of Human Services, Hoover State 156.18(4) In-service training. Each licensed foster Office Building, Des Moines, Iowa 50319-0114 on or family who completes the in-service training require­ before August 1, 1990. ment shall receive a $60 $100 stipend from the These rules are intended to implement 1990 Iowa Acts, department when the family’s license is renewed, for per Senate File 2435, section 16. diem expenses related to meeting the in-service training requirements. Item 2. Rescind and reserve subrule 156.18(7). ARC 1017A ARC 1024A HUMAN SERVICES HUMAN SERVICES DEPARTMENT[441] DEPARTMENT[441] Notice of Intended Action Twenty-five interested persons, a governmental subdivision, an agency Notice of Intended Action or an association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code §17A.4(l)“b”’. Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation Notice is also given to the public that the Administrative Rules Review hereon as provided in Iowa Code §17A.4(1)“6”. Committee may, on its own motion or on written request by any individual or group, review this proposed action under §17A.8(6) at Notice is also given to the public that the Administrative Rules Review a regular or special meeting where the public or interested persons Committee may, on its own motion or on written request by any may be heard. individual or group, review this proposed action under §17A.8(6) at a regular or special meeting where the public or interested persons Pursuant to the authority of Iowa Code section 234.6 may be heard. and 1990 Iowa Acts, House File 2546, section 6, the Pursuant to the authority of Iowa Code section 234.6, Department of Human Services proposes to amend the Department of Human Services proposes to amend Chapter 168, “Child Day Care Grants Program,” Chapter 159, “Resource and Referral Grants Program,” appearing in the Iowa Administrative Code. appearing in the Iowa Administrative Code. The substance of these amendments was adopted and The substance of these amendments was adopted and filed emergency and is published herein as ARC 1016A. filed emergency and is published herein as ARC 1023A. The purpose of this Notice is to solicit comment on that The purpose of this Notice is to solicit comment on that submission, the subject matter of which is incorporated submission, the subject matter of which is incorporated by reference. by reference. Consideration will be given to all written data, views, Consideration will be given to all written data, views, and arguments thereto, received by the Bureau of Policy and arguments thereto, received by the Bureau of Policy Analysis, Department of Human Services, Hoover State Analysis, Department of Human Services, Hoover State Office Building, Des Moines, Iowa 50319-0114 on or Office Building, Des Moines, Iowa 50319-0114, on or before August 1, 1990. before August 1,1990. These rules are intended to implement Iowa Code These rules are intended to implement 1990 Iowa Acts, sections 237A.13 to 237A. 18 and 1990 Iowa Acts, House House File 2546, section 4. File 2546, section 6. 42 NOTICES IAB 7/11/90

ARC 1031A ARC 1051A INDUSTRIAL SERVICES PERSONNEL DEPARTMENT[581] DIVISION[343] Notice of Intended Action * Notice of Intended Action Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation Twenty-five interested persons, a governmental subdivision, an agency hereon as provided in Iowa Code §17A.4(1)“6”. or an association of 25 or more persons may demand an oral presentation Notice is also given to the public that the Administrative Rules Review hereon as provided in Iowa Code §17A.4(1)“6”. Committee may, on its own motion or on written request by any Notice is also given to the public that the Administrative Rules Review individual or group, review this proposed action under §17A.8(6) at Committee may, on its own motion or on written request by any a regular or special meeting where the public or interested persons individual or group, review this proposed action under §17A.8(6) at may be heard. a regular or special meeting where the public or interested persons may be heard. Pursuant to the authority of Iowa Code section 19A.9, the Iowa Department of Personnel proposes to amend Pursuant to the authority of Iowa Code section 86.8, Chapter 4, “Pay,” and Chapter 12, “Grievances and the Industrial Commissioner hereby gives Notice of Appeals,” Iowa Administrative Code. Intended Action to adopt a rule amending Chapter 4, Revisions to Chapter 4 include the following: “Contested Cases.” 1. Allows up to a 15 percent lump sum payment to The rule provides for a means of dispute resolution be given to employees who are at the maximum of the for contested cases. pay grade; The Division of Industrial Services has determined 2. Changes the method of compensation for overtime; that this proposed rule will not have an impact on small and businesses within the meaning of Iowa Code section 3. Rescinds the requirement to remove shift differen­ 17A.31. tial during absences. Any interested person may make written suggestions Subrule 12.1(1), paragraph “a,” was revised to allow or comments on this proposed rule on or before July 31, a person other than the immediate supervisor to be 1990, to the Iowa Industrial Commissioner, Division of designated to accept grievances. Industrial Services, 1000 East Grand Avenue, Des Interested persons may submit written comments on Moines, Iowa 50319. these proposed amendments through August 22, 1990, Persons are also invited to present oral or written to the Director’s Secretary, Iowa Department of comments on this proposed rule at a public hearing which Personnel, Grimes State Office Building, Des Moines, will be held July 31,1990, at 10 a.m. at the Employment Iowa 50319-0150. Services Building, Stanley Room, 1000 East Grand There will be a public hearing on Thursday, August Avenue, Des Moines, Iowa. 23, 1990, at 10 a.m. in the Director’s Conference Room, This rule was adopted and filed emergency arid is Grimes State Office Building, East 14th Street at Grand published herein as ARC 1030A. The content of that Avenue, Des Moines, Iowa. Persons may present their submission is incorporated here by reference. views at this public hearing either orally or in writing. This rule is intended to implement Iowa Code sections Persons who wish to make oral presentations at the public 86.8 and 86.13 and 1990 Iowa Acts, Senate File 2328. hearing must contact the Director’s Secretary prior to the date of the public hearing in order to be scheduled for an appearance. These rules are intended to implement Iowa Code chapter 19 A. The following amendments are proposed: Item 1. Amend 581—Chapter 4 as follows: ARC 1029A Rescind subrule 4.5(3) and insert the following in lieu thereof: LOTTERY DIVISION[705] 4.5(3) Pay in a lump sum. a. Extra pay, not to exceed 5 percent of the employee’s Notice of Termination current annual base pay, may be given to an employee Pursuant to Iowa Code sections 17A.4(1) and 99E.9(3) for exceptional job performance with the approval of the the Iowa Lottery Board for the Iowa Lottery Division director. Written justification setting forth the nature of the Iowa department of Revenue and Finance of the exceptional job performance shall be submitted terminates the rule-making proceedings initiated by its in advance to the director. Notice of Intended Action published in the Iowa b. Extra pay, not to exceed 15 percent of the employee’s Administrative Bulletin as ARC 771A on April 4, 1990. current annual base pay, may be given to a maximum The subject of the Notice was Chapter 10, “Iowa Lotto.” of 15 percent of an agency’s employees who are excluded This Notice was published to solicit public comments, from collective bargaining under Iowa Code section 20.4, and a hearing was held for this purpose on May 10,1990. who are at the maximum of their pay grade and whose No one appeared at the hearing, and no oral or written performance exceeds standards. This extra pay may be comments have been received regarding these given under the following conditions: amendments. (1) The maximum number of eligible employees in an This rule-making proceeding is being terminated as agency for a fiscal year shall be established during the these amendments were adopted and implemented by first pay period of that fiscal year. emergency procedure, published IAB April 4, 1990, as (2) The extra pay may be given to an eligible employee ARC 772A. during any pay period, but only once in a fiscal year. IAB 7/11/90 NOTICES 43 PERSONNEL DEPARTMENT[581] (cont’d)

(3) Extra pay may only be given to an eligible employee The proposed change is to clarify and bring rules up whose performance exceeds standards. to date. This is necessary because previous rules needed (4) Funding for the extra pay shall be derived from to be more understandable for licensees. Chapters 206, the agency’s current fiscal year appropriations. 207 and 208 adopt the uniform rules on declaratory Rescind subrule 4.6(3), introductory paragraph, and rulings and rule making. insert the following in lieu thereof: Any interested person may make comments on the 4.6(3) Compensation for overtime shall be adminis­ proposed rules not later than July 31, 1990, addressed tered as follows: to Carol Barnhill, Professional Licensure, Department a. When directed to work overtime, an employee in of Public Health, Lucas State Office Building, Des an overtime covered class may be required to accept pay Moines, Iowa 50319-0075. as the method of compensation. The proposed rules are intended to implement Iowa b. When directed to work overtime, an employee in Code chapters 17A, 21,147,148A, and 258A. an overtime covered class may refuse to work the overtime if compensatory leave is the method of Item 1. Rescind Chapter 200 and insert in lieu thereof compensation for working overtime. the following: c. An appointing authority may decide the form of 645—200.1(147) Definitions. compensation, either pay or compensatory leave, of an “Board” means the board of physical and occupational employee in an overtime exempt class who is in a position therapy examiners. previously approved by the director to receive overtime. “Department” means the department of public health. Further amend subrule 4.6(3) by relettering para­ “Hour of continuing education” means 50 minutes of graphs “a,” “b,” and “c,” as “d,” “e,” and “f,” respectively. attendance per clock hour. Amend subrule 4.8(3) as follows: “Licensee” means any person licensed to practice 4.8(3) Shift differential shall be paid for all designated physical therapy in the state of Iowa. hours in pay status; except that after an absence of two “Licensure by interstate endorsement” means the issuance of an Iowa license to practice physical therapy to an applicant who is currently licensed in another state. Item 2. Amend subrule 12.1(1), paragraph “a,” as Application will be considered on an individual basis follows: for licensure in Iowa, if the applicant meets the a. Step 1. The grievant shall initiate the grievance by qualifications required of a licensed physical therapist submitting it in writing to the immediate supervisor or in Iowa. to the supervisor designated by the appointing authority 645—200.2(147) General. within 14 calendar days following the day the grievant 200.2(1) Licenses issued by the board shall be for first became aware of, or should have become aware of, licensure by examination or licensure by interstate the grievance issue through the exercise of reasonable endorsement. Each license shall be 8 1/2 by 11 inches diligence. The immediate supervisor shall, within seven in size. Each license issued shall bear the signature of calendar days after the day the grievance is received, the chairperson of the board of physical and occupational attempt to resolve the grievance within the bounds of therapy examiners. these rules and give a decision in writing to the grievant. 200.2(2) The board requires the satisfactory comple­ tion of one of the following physical therapy professional examinations: Prior to August 1, 1989 — Examination prepared by the Professional Examination Service (PES). ARC 1058A After August 1,1989 — Examination prepared by the Assessment System, Inc. (ASI). PROFESSIONAL LICENSURE 200.2(3) Satisfactory completion shall be defined as an overall examination score exceeding 1.5 standard DIVISION[645] deviations below the national average. BOARD OF PHYSICAL AND OCCUPATIONAL • 200.2(4) An examinee failing the examination shall THERAPY EXAMINERS be required to repeat the entire examination. Payment Notice of Intended Action of the examination fee is required for all repeats of the examination. Twenty-five interested persons, a governmental subdivision, an agency or an association of 25 or more persons may demand an oral presentation 200.2(5) Persons desiring information concerning the hereon as provided in Iowa Code §17A.4(1)"6”’. time and place of meetings of the board of physical and Notice is also given to the public that the Administrative Rules Review occupational therapy examiners or other information Committee may, on its own motion or on written request by any should write to Professional Licensure, Iowa Department individual or group, review this proposed action under §17A.8(6) at a regular or special meeting where the public or interested persons of Public Health, Lucas State Office Building, Des may be heard. Moines, Iowa 50319-0075. Pursuant to the authority of Iowa Code section 147.76, 645—200.3(147) Licensure by examination. the Board of Physical and Occupational Therapy 200.3(1) Applications for licensure to practice physical Examiners hereby gives Notice of Intended Action to therapy in Iowa shall be made to Professional Licensure, rescind Chapter 200, “Physical Therapy Examiners” and Iowa Department of Public Health, Lucas State Office adopt Chapter 200, “Physical Therapy Examiners,” Building, Des Moines, Iowa 50319-0075, at least 60 days Chapter 206, “Petitions for Rule Making,” Chapter 207, before the date of the examination. The application form “Declaratory Rulings,” and Chapter 208, “Agency will be furnished by the board. The notarized application Procedure for Rule Making,” Iowa Administrative Code. shall include the following: 44 NOTICES IAB 7/11/90

PROFESSIONAL LICENSURE DIVISION[645] (cont’d)

a. Full name, current address, age, date of birth, place c. Shall have graduated from an approved school of of birth, and other information as requested on the physical therapy within a period of one year from the application form. date of graduation to the time the application is b. Foreign trained physical therapists will submit an completed for licensure; or English translation and an equivalency evaluation of d. Shall have completed 80 hours of board-approved their professional curriculum. Education equivalency continuing education. will be evaluated by one of the following: Credentials 200.4(4) Applicants shall arrange for: Evaluation Service, P.O. Box 24679, Los Angeles, CA a. The appropriate state licensing boards to send: 90245, telephone (213) 475-2133; International Consul­ (1) A notarized copy of all current and former licenses tants of Delaware, Inc., 914 Pickett Lane, Newark, DE to practice physical therapy held in other states. 19711, telephone (301) 737-8715; International Creden- (2) A statement from each' state board of examiners tialing Associates, Inc., 1101 New Hampshire Ave. N.W., regarding the existence of any pending investigations Washington, D.C. 20037, telephone (202) 328-2468. If the of the licensee. evaluation indicates a shortage of required credits, b. A certified copy of the grades from the appropriate general education requirements must be obtained at a professional examination to be sent. school accredited by the North Central Association of 200.4(5) An applicant for licensure under this rule Colleges and Secondary Schools or an equivalent must include with this application a sworn statement accrediting association in other regions of the United of previous physical therapy practice from employer or States. The professional curriculum must be equivalent professional associate, detailing places and dates of to American Physical Therapy Association standards. employment and verifying that the applicant has An applicant shall bear the expense of the curriculum practiced physical therapy at least 2080 hours during evaluation. the last three-year time period. c. If the professional examination is taken in another 200.4(6) An applicant shall submit the required fee state, a certified copy from Assessment System, Inc. in the form of a check or money order made payable d. Required fee in the form of a check or money order to the Board of Physical and Occupational Therapy made payable to the Board of Physical and Occupational Examiners. Therapy Examiners. 200.4(7) An applicant must pass an oral interview to e. Official transcript, with school seal, of physical the satisfaction of the board of examiners and, if required therapy professional curriculum. by the board, a practical examination. f. A notarized copy of the certificate or diploma 200.4(8) An applicant, who will be working in the awarded the applicant from a school of physical therapy scope of physical therapy prior to licensure, shall include accredited by an accrediting agency recognized by the on the application form the name of the licensed physical American Physical Therapy Association Commission on therapist who will be providing supervision of the Accreditation and Education. If graduated from a degree applicant until the applicant is licensed. In the event program which did not issue a diploma stating the that there is a change of the licensed physical therapist applicant’s degree was in physical therapy, a statement providing supervision, the applicant shall submit the verifying that the degree was in physical therapy is name of the therapist to the board in writing within seven required from the school. days after the change in supervision takes place. 200.3(2) An applicant must pass an oral interview to 200.4(9) Applicants not meeting all requirements in the satisfaction of the board of examiners and, if required this rule are required to meet all the requirements as by the board, a practical examination. set out in 200.3(147), including taking or retaking the 200.3(3) An applicant, who will be working in the appropriate physical therapy professional examination. scope of physical therapy prior to licensure, shall include on the application form the name of the licensed physical 645—200.5(147) License renewal. therapist who will be providing supervision of the 200.5(1) The biennial license renewal period shall applicant until the applicant is licensed. The applicant extend from July 1 of each odd-numbered year until June will notify the board, within seven days, of any change 30 of the next odd-numbered year. The continuing in supervision. education period shall extend from January 1 of the odd- 645—200.4(147) Licensure by interstate numbered year until December 31 of the next even- endorsement. numbered year. 200.4(1) An individual from another state seeking a 200.5(2) Individuals who have met continuing license to practice physical therapy in Iowa will be education requirements for the biennium and wish to considered on an individual basis' under the principle have their licenses renewed shall complete the board- of interstate endorsement. approved renewal form and the board-approved continu­ 200.4(2) Applications for licensure to practice physical ing education report and return it to professional therapy in Iowa shall be made to Professional Licensure, licensure, department of public health, by January 31 Iowa Department of Public Health, Lucas State Office of the odd-numbered years. Building, Des Moines, Iowa 50319-0075. 200.5(3) Late filing. Individuals who fail to submit 200.4(3) An applicant for licensure by interstate the application for renewal and complete and appro­ endorsement shall: priately document continuing education hours by a. Have practiced physical therapy for a minimum of January 31 shall be required to pay a late filing fee and 2080 hours during the immediately preceding three-year may be subject to an audit of their continuing education time period; or report. b. Served as a full-time faculty member teaching 200.5(4) Physical therapists who have not fulfilled the physical therapy in a school of physical therapy for at requirements for license renewal or an exemption by least one of the immediately preceding three years; or July 1 (odd year) of the licensure biennium will have IAB 7/11/90 NOTICES 45 PROFESSIONAL LICENSURE DIVISION[645] (cont’d) a lapsed license and shall not engage in the practice of 645—200.10(258A) Continuing education physical therapy. requirements. 645—200.6(147) Exemptions for inactive practitio­ 200.10(1) It is the responsibility of each licensee to ners. A licensee who is not engaged in the active practice arrange for financing of costs of continuing education. of physical therapy in the state of Iowa residing within 200.10(2) Each person licensed to practice physical or without the state of Iowa may be granted a certificate therapy in this state shall complete during each of exemption upon written application to the board. The continuing education compliance period a minimum of application shall contain a statement that the applicant 40 hours of continuing education approved by the board. will not engage in the practice of physical therapy in Compliance with the requirement of continuing educa­ Iowa without first complying with all regulations tion is a prerequisite for license renewal for each- governing reinstatement after exemption (200.7(147). subsequent license renewal period. The application for a certificate of exemption shall be 200.10(3) The continuing education compliance period submitted upon the form provided by the board. shall be each biennium beginning January 1 of the odd- Individuals who fail to request reinstatement after a numbered year to December 31 of the next even- three-year period from the date the certificate of numbered year. During the continuing education exemption was granted shall be considered to have a compliance period, attendance at approved continuing lapsed license. education programs may be used as evidence of fulfilling the continuing education requirement for the subsequent 645—200.7(147) Reinstatement of exempted, inactive biennial license renewal period beginning July 1. The practitioners. Inactive practitioners who have been biennial license renewal period shall extend from July granted a waiver of compliance with these rules and 1 of each odd-numbered year until June 30 of the next obtained a certification of exemption shall, prior to odd-numbered year. engaging in the practice of physical therapy in the state 200.10(4) Hours of continuing education credit may of Iowa, satisfy the following requirements for be obtained by attending and participating in a reinstatement: continuing education activity which meets the require­ 200.7(1) Submit written application for reinstatement ment herein. to the board upon forms provided by the board; and 200.10(5) Carryover credit of continuing education 200.7(2) Furnish in the application evidence of one hours into the next continuing education period will not of the following: be permitted. a. Completion of a total number of hours of accredited 200.10(6) When an initial license is issued via continuing education-computed by multiplying 20 by the examination, the new licensee is exempt from meeting number of years a certificate of exemption shall have the continuing education requirement for the continuing been in effect for such applicant; or education biennium in which the license is originally b. Successful completion of the appropriate physical issued. therapy professional examination (200.2(2) within one 200.10(7) Reinstated licensees and licensees through year immediately prior to the submission of such interstate endorsement shall obtain 40 hours of contin­ application for reinstatement. uing education credit for renewal of license if license 200.7(3) The board may require successful completion is obtained in the first year of the biennium and 20 hours of an oral interview prior to reinstatement. if license is obtained in the second year of the biennium. 645—200.8(147) Reinstatement of lapsed license. 645—200.11(258A) Standards for approval. Individuals allowing a license to lapse will be required 200.11(1) Continuing education is that education to reapply for licensure by examination or interstate which is obtained by a professional or occupational endorsement and shall not engage in the practice of licensee in order to maintain, improve, or expand skills physical therapy. and knowledge obtained prior to initial licensure or to 645—200.9(147) License fees. All fees are develop new and relevant skills and knowledge. A nonrefundable. continuing education activity which meets all of the 200.9(1) The application fee for a license to practice following criteria is appropriate for continuing education physical therapy issued upon the basis of examination credit. or endorsement is $55. The examination fee is an a. It constitutes an organized program of learning additional $100. (including a workshop or symposium) which contributes 200.9(2) The renewal fee of a license to practice directly to the professional competency of the licensee; physical therapy for a biennial period is $55. and 200.9(3) Penalty fee for failure to complete and return b. It pertains to common subjects or other subject the renewal application by January 31 (odd year) is $55. matters which integrally relate to the practice of physical 200.9(4) Penalty fee for failure to complete the therapy; and required continuing education by December 31 of even- c. It is conducted by individuals who have a special numbered years is $25. Failure to complete and return education, training and experience by reason of which the continuing education report (Form G) by January said individuals should be considered experts concerning 31 (odd year) is $25. the subject matter of the program, and is accompanied 200.9(5) Reinstatement fee following inactive exemp­ by a paper, manual or outline which substantively tion and lapsed license is $100. pertains to the subject matter of the program and reflects 200.9(6) Fee for certified statement that a licensee program schedule.. is licensed in Iowa is $10. d. It fulfills stated program goals and/or objectives. 200.9(7) Fee for failure to report, in writing, change e. It provides proof of attendance to include the of address after 30 days is $10. following: 200.9(8) Fee for failure to report change of name by (1) Date, place, Gourse title, presenter(s). notarized copy of official document is $10. (2) Number of program contact hours. 46 NOTICES IAB 7/11/90 PROFESSIONAL LICENSURE DIVISION[645] (cant’d.)

(3) Official signature of program sponsor. (1) Date, place, course title, schedule, presenter(s). 200.11(2) Continuing education credit may be granted (2) Number of contact hours for program attended. for the following: (3) Official signature of sponsor indicating successful a. A maximum of 20 hours of credit will be given for completion of course. presenting professional programs which meet the e. For auditing purposes the physical therapist must criteria as listed in 200.11(1). Two hours of credit will retain the above information for four years. be awarded for each hour of presentation. A course 200.13 Reserved. schedule or brochure must be maintained for audit. b. Official transcripts indicating successful completion 645—200.14(258A) Hearings. In the event of denial, of academic courses which apply to the field of physical in whole or part, of credit for continuing education therapy will be necessary in order to receive the following activity, the licensee shall have the right, within 20 days continuing education credits: after the sending of the notification of denial by ordinary One semester credit = 10 continuing education hours mail, to request a hearing which shall be held within of credit; 60 days after receipt of the request for hearing. The One trimester credit = 8 continuing education hours hearing shall be conducted by the board or an admin­ of credit; istrative law judge designated by the board. If the One quarter credit = 7 continuing education hours of hearing is conducted by an administrative law judge, credit. the law judge shall submit a transcript of the hearing c. Participation in research or other activities of which including exhibits to the board after the hearing with the results are published in a recognized professional the proposed decision of the law judge. The decision of publication. (Maximum of 20 hours per continuing the board or decision of the administrative law judge education biennium.) after adoption by the board shall be final. d. A maximum of 20 hours of viewing videotaped 645—200.15(258A) Disability or illness. The board presentations will be allowed per biennium if the may, in individual cases involving disability or illness, following criteria are met: grant waivers of the minimum continuing education (1) There is a sponsoring group or agency. requirements or extensions of time within which to fulfill (2) There is a facilitator or program official present. them or make the required reports. No waiver or (3) The program official may not be the only attendee. extension of time shall be granted unless written (4) The program meets all the criteria of 200.11(1). application shall be made on forms provided by the board e. Home study courses that have a certificate of and signed by the licensee and an appropriately licensed completion will be considered for a maximum of 20 hours health care professional and the waiver is acceptable to per biennium. the board. Waivers of the minimum continuing education 200.11(3) The subject areas listed below will be requirements may be granted by the board for any period considered for a maximum of 20 hours of continuing of time not to exceed one calendar year. In the event education per biennium: that the disability or illness upon which a waiver has Business-related topics: marketing, time management, been granted continues beyond the period of the waiver, government regulations, and other like topics. the licensee must reapply for an extension waiver. The Personal skills topics: career burnout, communications board may, as a condition of any waiver granted, require skills, human relations, and other like topics. the applicant to make up a certain portion or all of the General health topics: clinical research, CPR, child minimum educational requirements waived. abuse reporting, and other like topics. 645—200.16(258A) Complaint. A complaint of a 645—200.12(258A) Reporting continuing education licensee’s professional misconduct shall be made in credits. writing by any person to the Board of Physical and 200.12(1) A report of continuing education activities Occupational Therapy Examiners, Professional Licen­ shall be submitted on a board-approved form with the sure, Iowa Department of Public Health, Lucas State application for relicensure by January 31 of the odd- Office Building, Des Moines, Iowa 50319-0075. The numbered years. All continuing education activities complaint shall include complainant’s address and phone submitted must be completed by December 31 of the number, be signed and dated by the complainant, shall even-numbered year as specified in 200.10(3) or a late identify the licensee, and shall give the address and any fee will be assessed (200.9(4). other information about the licensee which the complain­ 200.12(2) Failure to receive renewal application shall ant may have concerning the matter. not relieve the physical therapist of the responsibility of meeting continuing education requirements and 645—200.17(258A) Report of malpractice claims or submitting renewal fee for relicensure by January 31 actions or disciplinary actions. Each licensee shall of the odd-numbered year. submit a copy of any judgment or settlement in a 200.12(3) Audit of continuing education reports. malpractice claim or any disciplinary action taken by a. After each educational biennium the board will audit another licensing authority in another state to the board a percentage of the continuing education reports before within 30 days after such occurrences. granting the renewal of licenses to those being audited. 645—200.18(258A) Investigation of complaints or b. All renewal license applications that are submitted malpractice claims. The chair of the board of physical late (after January 31 of the odd-numbered year) shall and occupational therapy examiners shall assign an be subject to audit of continuing education reports. investigation of a complaint or malpractice claim to a c. Any physical therapist against whom a complaint member of the board who will be known as the is filed may be subject to an audit of continuing education. investigating board member or may request the state d. The licensee must make the following information department of inspections and appeals to investigate the available to the board for auditing purposes: complaint or malpractice claim. The investigating board. IAB 7/11/90 “NOTICES 47

PROFESSIONAL LICENSURE DIVISION[645] (cord’d) member or employee of the department of inspections by the board. It is not necessary to request a rehearing and appeals may request information from any peer before the board to appeal to the district court. review committee which may be established to assist the 200.19(8) Transcript. The party who appeals a board. The investigating board member or employee of decision of the board to the district court shall pay the the department of inspections and appeals may consult cost of the preparation of a transcript of the adminis­ with an officer or assistant attorney general concerning trative hearing for the district court. the investigation on evidence produced from the 200.19(9) Publication of decisions. Final decisions of investigation. The investigating board member, if the the board relating to disciplinary proceedings shall be board member investigates the complaint, or an assistant transmitted to the appropriate professional association, attorney general if the department investigates the the news media and employer. complaint, shall make a written determination whether 645—200.20(258A) Suspension, revocation, or proba­ there is probable cause for a disciplinary hearing. The tion. The board may revoke or suspend a license, place investigating board member shall not take part in the a licensee on probation, or impose a civil penalty which decision of the board, but may appear as a witness. shall not exceed $1000 for any of the following reasons: 645—200.19(258A) Alternative procedure and 200.20(1) All grounds listed in Iowa Code section settlement. 147.55. 200.19(1) A disciplinary hearing before the licensing 200.20(2) Violation of the rules promulgated by the board is an alternative to the procedure in Iowa Code board. sections 147.58 to 147.71. 200.20(3) Personal disqualifications: 200.19(2) Informal stipulation or settlement negoti­ a. Mental or physical inability reasonably related to ations may be initiated by either party to the controversy and adversely affecting the licensee’s ability to practice either prior to or during a contested case proceeding. in a safe and competent manner. However, neither party is obligated to utilize this b. Involuntary commitment for treatment of mental informal procedure to settle the controversy pursuant illness, drug addiction or alcoholism. to informal procedures. The investigating board member 200.20(4) Practicing the profession while the license charged with the responsibility of handling disciplinary is suspended or lapsed. and enforcement matters shall have the authority, with 200.20(5) Revocation, suspension, or other disciplinary board approval, to negotiate an informal settlement. If action taken by a licensing authority of another state, the investigating board member believes it to be in the territory, or country; or failure by the licensee to report best interest of the board and the public to informally in writing to the Iowa board of physical and occupational settle the controversy, the investigating board member therapy examiners revocation, suspension, or other shall recommend the. terms of stipulation or settlement disciplinary action taken by a licensing authority of to the board. If the board approves the terms, the another state, territory, or country; or both. investigating board member shall effectuate the 200.20(6) Negligence by the licensee in the practice settlement. The terms of the stipulation or settlement of the profession, which is a failure to exercise due care shall be in writing for entering and filing by the board. including negligent delegation to or supervision of 200.19(3) License denial. Any request for a hearing employees or other individuals, whether or not injury before the board concerning the denial of a license shall results; or any conduct, practice or conditions which be submitted by the applicant, in writing, to the board impair the ability to safely and skillfully practice the by certified mail, return receipt requested, within 30 profession. days of the mailing of a notice of denial of license. 200.20(7) Failure to comply with the following rules 200.19(4) Notice of hearing. If there is a finding of of ethical conduct and practice. probable cause for a disciplinary hearing, the depart­ a. A physical therapist shall not practice outside the ment of public health shall prepare the notice of hearing scope of the license. and transmit the notice of hearing to the respondent by b. When the physical therapist does not possess the certified mail, return receipt requested, at least ten days skill to evaluate a patient, plan the treatment program, before the date of the hearing. or carry out the treatment, the physical therapist is 200.19(5) Hearings open to the public. A hearing of obligated to assist in identifying a professionally a licensing board concerning a licensee or an applicant qualified licensed practitioner to perform the service. shall be open to the public unless the licensee or applicant c. The practice of physical therapy shall minimally or their attorney requests in writing that the hearing consist of: be closed to the public. (1) Interpreting all referrals. 200.19(6) Hearings. The board adopts the rules of the (2) Evaluating each patient. department of public health found in 641—Chapter 173, (3) Identifying and documenting individual patient’s Iowa Administrative Code, as the procedure for hearings problems and goals. before the board. The board may authorize an adminis­ (4) Establishing and documenting a plan of care. trative law judge to conduct the hearings, administer (5) Providing appropriate treatment. oaths, issue subpoenas, and prepare written findings of (6) Determining the appropriate portions of the 'fact, conclusions of law and decision at the' direction of treatment program to be delegated to assistive personnel. the board. If a majority of the board does not hear the (7) Appropriately supervising individuals as described disciplinary proceeding, a recording or a transcript of in 200.20(7)“k.” the proceeding shall be made available to members of (8) Providing timely patient reevaluation. the board who did not hear the proceeding. (9) Maintaining timely records of all physical therapy 200.19(7) Appeal. Any appeal to the district court from activity and the patient’s response to them. disciplinary action of the board or denial of license shall d. It is the responsibility of the physical therapist to be taken within 30 days from the issuance of the decision inform the referring practitioner when any requested 48 NOTICES IAB 7/11/90 PROFESSIONAL LICENSURE DIVISION[645] (cont’d) treatment procedure is inadvisable or contraindicated. therapist a service which exceeds the expertise of the The physical therapist shall refuse to carry out orders unlicensed person being supervised. that are inadvisable or contraindicated and advise the (6) The physical therapist must be readily available referring practitioner as such. at all times to the assistive personnel to render advice, e. Treatment shall not be continued beyond the point instruction and assistance. of possible benefit to the patient or by treating more (7) The physical therapist must provide periodic frequently than necessary to obtain maximum therapeu­ reevaluation of the assistive personnel’s performance in tic effect. relation to the patient. f. It is unethical for the physical therapist to directly 200.20(8) Unethical business practices, consisting of or indirectly request, receive, or participate in the any of the following: dividing, transferring, assigning, rebating, or refunding a. False or misleading advertising. of an unearned fee or to profit by means of credit or b. Betrayal of a professional confidence. other valuable consideration as an unearned commission, c. Falsifying patient’s records. discount, or gratuity in connection with the furnishing 200.20(9) Failure to notify the board of a change of of physical therapy services. name or address within 30 days after it occurs. g. The physical therapist shall not exercise undue 200.20(10) Submission of a false report of continuing influence on patients to purchase equipment produced education. or supplied by a company in which the physical therapist 200.20(11) Failure to notify the board within 30 days owns stock or has any other direct or indirect financial after occurrence of any judgment or settlement of a interest. malpractice claim or disciplinary action taken by another h. Physical therapists shall not permit another person state. to use their licenses for any purpose. 200.20(12) Failure to comply with a subpoena issued i. A physical therapist shall not obtain, possess, or by the board. attempt to obtain or possess a controlled substance 200.20(13) Failure to report to the board as provided without lawful authority, or sell, prescribe, give away, in Iowa Code section 258A.9 any violation by another or administer a controlled substance in the practice of licensee of the reasons for disciplinary action as listed physical therapy. in this rule. j. A physical therapist shall not verbally or physically 645—200.21(258A) Peer review committees. abuse a patient. 200.21(1) Each peer review committee for the k. Adequate supervision by a physical therapist shall profession, if established, may register with the board include the following: of examiners within 30 days after the effective date of (1) Applicant physical therapist. A person who has these rules or within 30 days after formation. made application for licensure and is awaiting board 200.21(2) Each peer review committee shall report action may practice only under the supervision of a in writing, within 30 days of the action, any disciplinary licensed physical therapist for a period not to exceed action taken against a licensee by the peer review six months in the case of licensure by examination and committee. three months for licensure by endorsement. During this 200.21(3) The board may appoint peer review time the applicant may evaluate, plan treatment committees as needed consisting of not more than five programs, and provide periodic reevaluation only under persons who are licensed to practice physical therapy on-site supervision of a licensed physical therapist who to advise the board on standards of practice and other shall bear full responsibility for care provided under matters relating to specific complaints as requested by their supervision. the board. The peer review committee shall observe the (2) Assistive personnel. Following are activities which requirements of confidentiality provided in Iowa Code must be performed by the physical therapist and cannot chapter 258A. be delegated to any assistive personnel including a physical therapist assistant: 645—200.22(21) Conduct of persons attending l. Interpretation of referrals. meetings. 2. Initial physical therapy evaluation and 200.22(1) The person presiding at a meeting for the reevaluations. board may exclude a person from an open meeting for 3. Identification, determination or modification of behavior that obstructs the meeting. patient problems, goals and care plans. 200.22(2) Camera and recording devices may be used 4. Final discharge evaluation and establishment of the at open meetings provided they do not obstruct the discharge plan. meeting. If the user of a camera or recording device (3) Care rendered by assistant personnel shall not be obstructs the meeting by the use of such device, the person referred to as physical therapy unless the following presiding may request the person to discontinue use of conditions are met: the camera or device. If the person persists in use of a. The physical therapist has physical participation the device or camera, that person shall be ordered in the patient’s physical therapy evaluation or treatment excluded from the meeting by order of the board member or both each treatment day. presiding at the meeting. b. The physical therapist assumes responsibility for Item 2. Add a new 645—Chapter 206 as follows: all delegated treatments. (4) Documentation made in patient records by an CHAPTER 206 unlicensed person shall be cosigned, by the supervising PETITIONS FOR RULE MAKING licensed physical therapist. The board of physical and occupational therapy (5) The physical therapist shall not delegate to an examiners hereby adopts the petitions for rule making unlicensed person under the supervision of the physical segment of the Uniform Administrative Rules which is IAB 7/11/90 NOTICES 49 PROFESSIONAL LICENSURE DIVISION[645] (cont’d) printed in the front of Volume I of the Iowa Adminis­ and Occupational Therapy Examiners, Professional trative Code, with the following amendments: Licensure, Iowa Department of Public Health, Lucas 645—206.1(17A) Petition for rule making. In lieu of State Office Building, Des Moines, Iowa 50319-0075”. the words “(designate office)”, insert “Board of Physical 645—208.6(17A) Regulatory flexibility analysis. In and Occupational Therapy Examiners, Professional subrule 208.6(3), Mailing list, in lieu of the words Licensure, Iowa Department of Public Health, Lucas “(designate office)”, insert “Board of Physical and State Office Building, Des Moines, Iowa 50319-0075”. Occupational Therapy Examiners, Iowa Department of In lieu of the words “(AGENCY NAME)”, the heading Public Health, Lucas State Office Building, Des Moines, of the petition should read: Iowa 50319-0075”. BEFORE THE 645—208.10(17A) Exemptions from public rule- BOARD OF PHYSICAL AND OCCUPATIONAL making procedures. In subrule 208.10(2), Categories THERAPY EXAMINERS exempt, in lieu of the words “(List here narrowly drawn 645—206.3(17A) Inquiries. Inquiries concerning the classes of rules where such an exemption is justified and status of a petition for rule making may be made to the a brief statement of the reasons for exempting each of Physical and Occupational Therapy Board Administra­ them)”, insert the following: tor, Professional Licensure, Lucas State Office Building, a. Rules which implement recent legislation, when a Des Moines, Iowa 50319-0075. statute provides for an effective date which does not allow for .the usual public notice and participation Item 3. Add a new 645—Chapter 207 as follows: requirements. CHAPTER 207 b. Rules which confer a benefit or remove a restriction on licensees, the public, or some segment of the public. DECLARATORY RULINGS c. Rules which are necessary because of imminent The board of physical and occupational therapy peril to the public health, safety or welfare. examiners hereby adopts the declaratory rulings d. Nonsubstantive rules intended to correct typograph­ segment of the Uniform Administrative Rules which is ical errors, incorrect citations, or other errors in existing printed in the front of Volume I of the Iowa Adminis­ rules. trative Code, with the following amendments: 645—208.11(17A) Concise statement of reasons. In 645—207.1(17A) Petition for declaratory ruling. In subrule 208.11(1), General, in lieu of the words “(specify lieu of the words “(designate office)”, insert “Board of the office and address)”, insert “Board of Physical and Physical and Occupational Therapy Examiners, Profes­ Occupational Therapy Examiners, Professional Licen­ sional Licensure, Iowa Department of Public Health, sure, Iowa Department of Public Health, Lucas State Lucas State Office Building, Des Moines, Iowa 50319- Office Building, Des Moines, Iowa 50319-0075”. 0075”. 645—208.13(17A) Agency rule-making record. In In lieu of the words “(AGENCY NAME)”, the heading subrule 208.13(2), Contents, paragraph “c,” in lieu of the on the petition should read: words “(agency head)”, insert “Board of Physical and BEFORE THE Occupational Therapy Examiners”. BOARD OF PHYSICAL AND OCCUPATIONAL These rules are intended to implement Iowa Code THERAPY EXAMINERS chapter 17A. 645—207.3(17A) Inquiries. In lieu of the words “(designate official by full title and address)”, insert “the Physical and Occupational Therapy Board Administra­ tor, Professional Licensure, Lucas State Office Building, Des Moines, Iowa 50319-0075”. Item 4. Add a new 645—Chapter 208 as follows: ARC 1061A CHAPTER 208 AGENCY PROCEDURE FOR RULE MAKING REVENUE AND FINANCE The board of physical and occupational therapy DEPARTMENT[701] examiners hereby adopts the agency procedure for rule Notice of Intended Action making segment of the Uniform Administrative Rules Twenty-five interested persons, a governmental subdivision, an agency which is printed in the front of Volume I of the Iowa or an association of 25 or more persons may demand an oral presentation Administrative Code, with the following amendments: hereon as provided in Iowa Code §17A.4(1)“6” Notice is also given to the public that the Administrative Rules Review 645—208.3(17A) Public rule-making docket. In Committee may, on its own motion or on written request by any subrule 208.3(2), Anticipated rule making, in lieu of the individual or group, review this proposed action under §17A.8(6) at a regular or special meeting where the public or interested persons words “(commission, board, council, director)”, insert may be heard. “Board of Physical and Occupational Therapy Examiners”. Pursuant to the authority of Iowa Code sections 17A.22 and 421.14, the Department of Revenue and Finance 645—208.4(17A) Notice of proposed rule making. In hereby gives Notice of Intended Action to amend Chapter subrule 208.4(3), Notices mailed, in lieu of the words 86, “Inheritance Tax,” Iowa Administrative Code. “(specify time period)”, insert “one year”. These amendments implement 1990 Iowa Acts, House 645—208.5(17A) Public participation. In subrule File 2551, sections 20 and 21, which remove the 208.5(1), Written comments, in lieu of the words inheritance tax lien from the share of the estate passing “(identify office and address)”, insert “Board of Physical to the surviving spouse and under certain conditions 50 NOTICES IAB 7/11/90 REVENUE AND FINANCE DEPARTMENT[701] (cont’d) permit the deduction of estate liabilities in computing from property includible in the gross estate for the taxable estate from assets in the estate which are inheritance tax purposes which under Iowa debtor- not normally subject to the payment of estate debts and creditor law is not liable for the payment of the debts charges. and charges of the estate under the following terms and These amendments also change the name of the division conditions: of the Department of Revenue and Finance which (1) The application of liabilities. administers the inheritance tax to conform to the present 1. The liabilities must be paid. If a liability is not paid administrative organization of the Department. in full, the amount deductible is limited to the amount The Department has determined that these proposed paid. If the amount claimed is not certified as paid by amendments will not have an impact on small business the time the inheritance tax return is filed, the statute as defined in Iowa Code section 17A.31(1). requires that the director must be satisfied that the These proposed amendments will not necessitate liabilities, or portions thereof deductible, will be paid. additional expenditures by political subdivisions or 2. The liability can be deducted only from property agencies and entities which contract with political that is included in the gross estate for Iowa inheritance subdivisions. tax purposes. This rule would exclude, among others, Any interested person may make written suggestions that portion of joint tenancy property which is excluded or comments on these proposed amendments on or before from the gross estate, wrongful death proceeds, the first August 10, 1990. Such written comments should be $10,000 in gifts to each donee made within three years directed to the Policy Section, Technical Services of death and property with a situs outside of Iowa. Division, Iowa Department of Revenue and Finance, 3. The property included in the gross estate that is Hoover State Office Building, P.O. Box 10457, Des under Iowa debtor-creditor law subject to the payment Moines, Iowa 50306. of the deductible liabilities must first be applied to the Persons who want to convey their views orally should liabilities, and only after this property has been contact the Policy Section, Technical Services Division, exhausted can the excess liabilities be applied to the other Iowa Department of Revenue and Finance, at (515)281- property included in the gross estate. 4250 or at Department of Revenue and Finance offices 4. Any excess liabilities remaining unpaid after on the fourth floor of the Hoover State Office Building. exhausting the property subject to the payment of the Requests for a public hearing must be received by liabilities must be allocated to the remaining property August 3, 1990. included in the gross estate for inheritance tax purposes These amendments are intended to implement Iowa on the basis of the value of each person’s share of the Code chapters 17A and 421 and 1990 Iowa Acts, House other property in the gross estate bears to the total value File 2551, sections 20 and 21. of the other property included in the gross estate. The following amendments are proposed: (2) General rules.

Item 1. Amend subrule 86.1(2) to read as follows: 1. The source of the funds used for payment of the 86.1(2) Delegation of authority. The director delegates excess liabilities is not relevant to the allowance of the to the administrator of the audit and compliance estates deduction. It is sufficient for the allowance of the and trusts division, subject always to the supervision and deduction that the liability be paid. review by the director, the authority to administer the 2. The-applicability of the statute is limited to the Iowa inheritance tax. This delegated authority specif­ deduction for inheritance tax purposes of those liabilities ically includes, but is not limited to, the determination listed in Iowa Code section 450.12(1). It neither enlarges of the correct inheritance tax liability; making assess­ nor diminishes the rights of creditors under existinglowa ments against the taxpayer for additional inheritance law. tax due; authorizing refunds of excessive inheritance tax 3. The statute is not limited to estates which are paid; issuing receipts for inheritance tax paid; executing probated and subject to the jurisdiction of the probate releases of the inheritance tax lien; granting extension court. It also applies to estates which file an inheritance of time to file the final inheritance tax return and pay tax return for a tax clearance (CIT proceedings) or those the tax due; granting deferments to pay the inheritance otherwise not probated such as, but not limited to, tax on a property interest to take effect in possession intervivos trusts whose assets are subject to inheritance or enjoyment at a future date; requesting or waiving tax, estates consisting of joint tenancy with right of the appraisal of property subject to the inheritance tax survivorship property, estates whose assets consist of and the imposition of penalties determination of transferred property with a reserved life use or interest, reasonable cause for failure to timely file or pay the estates whose assets consist of gifts made within three inheritance tax. The administrator of the audit and years of the decedent’s death and estates consisting compliance division may delegate the examination and entirely of qualified terminal interest property (QTIP) audit of inheritance tax returns to the supervisors, in the estate of the surviving spouse. examiners, agents and clerks of the division. The statute will apply to any estate when any share of the estate will remain taxable after being reduced Item 2. Amend rule 701—86.6(450) by adding the by the liabilities in Iowa Code section 450.12(1) which following new subrule: are lawfully charged to the share and the deduction of 86.6(5) Liabilities' deductible from property not any statutory exemption. Excess liabilities must be subject to the payment of debts and charges. For estates prorated over all of the property not subject to debts of decedents dying on or after July 1,1990. and charges regardless of whether or not the property a. Estates with all of the property located in Iowa. is part of a taxable share. Effective for estates of decedents dying on or after July b. Estates with part of the property located outside 1, 1990, and subject to the special provisions in 86.6(5), of Iowa. Iowa Code section 450.12(2) and department paragraph “c,” the liabilities deductible under Iowa Code subrule 86.6(4)“b” require that the liabilities deductible section 450.12 may be deductible in whole or in part be prorated in those estates where a portion of the IAB 7/11/90 NOTICES 51

REVENUE AND FINANCE DEPARTMENT[701] (cont’d)

property included in the gross estate has a situs outside Computation of shares of Iowa. Subject to the special provisions in 86.6(5), In this estate only the checking account and the paragraph “c,” in these estates the portion of the certificates of deposit in the amount of $18,500 are liabilities deductible which is allocated to the Iowa subject to the payment of the debts and charges of the property under the proration formula must first be estate. The real estate taxes of $4,000 are allocated to applied to the Iowa situs property which is subject to the joint tenancy farm. the payment of the liabilities. Any portion of the liabilities Property subject to debts and charges allocated to Iowa remaining unpaid may then be applied Bank account and cer­ to the other Iowa property included in the gross estate tificates of deposit $ 18,500 subject to the same limitations provided for in subrule $4,000 of the joint 86.6(5)“a” (1) “1” to “4.” tenancy real estate c. Special rule for liabilities secured by property for taxes 4,000 included in the gross estate. If a liability which is Total $ 22,500 deductible under Iowa Code section 450.12(l)(a) is Property not subject to debts and charges secured by property included in the gross estate, then Joint tenancy real the liability is deductible from the specific property that estate secures the liability, regardless of whether or not the ($160,000 - $4,000 property is subject to the payment of the ordinary debts taxes) $156,000 and charges of the estate. If the liability exceeds the Series E U.S. bonds 40,000 value of the property that secures it and is the obligation Total $196,000 of the decedent, then any excess liability is deductible Liabilities under the same rules that govern unsecured obligations. To be paid from prop- Examples illustrating this subrule: erty subject to debts 22,500' Example 1 To be prorated from Decedent A, a widow and resident of Iowa, by will property not subject left her son B 50 percent of her estate and 25 percent to debts and to each of her two grandchildren C and D, children of charges 7.575 her deceased daughter E. Total liabilities $ 30,075 The assets and liabilities of the estate are as follows: Each Beneficiary’s Share of Liabilities Assets To Be Paid From Joint Property Property not subject to debts and charges: 1. Farm in joint B’s share 156.000 79.60% tenancy with her 196.000 son B $160,000 2. Checking account CsC’s share 20,000m m 10.20% in decedent’s name 3,500 3. Certificates of de­ D’s share same as C = 10.20% posit in decedent’s 100% name 15,000 Computation of net shares of estate 4. Series E govern­ Son B ment bonds in the Gross share names of A or Farm in joint tenancy $160,000 grandchild C 20,000 50% of checking acct. 5. Series E govern­ & CDs 9,250 ment bonds in the $169,250 names of A or Less liabilities grandchild D 20,000 Liability allocated to Total gross estate $218,500 $218,500 property subject to 'debts 9,250.00 Liabilities Real estate taxes 4,000.00 Promissory note owed to bank $ 15,000 Excess liabilities Doctor bill in excess (79.60% of $7,575) 6,029.70 of insurance 1.500 Total Liabilities $19,279.70 $19,279.70 Hospital bill in excess of insurance 750 Net share $149,970.30 Utilities 75 Grandchild C Real estate taxes 4,000 Gross share Attorney fees 4.500 Series E bonds in Credit cards 250 joint tenancy $20,000.00 Funeral bill 4,000 25% checking account Total liabilities $ 30,075 $ 30,075 & CDs 4,625.00 Net estate $188,425 $24,625.00 52 NOTICES IAB 7/11/90

REVENUE AND FINANCE DEPARTMENT[701] (cant’d)

Less liabilities * Computation of Shares—Iowa Estate Liabilities allocated to property subject to Child B Net debts $ 4,625.00 Assets Liabilities Share Excess liabilities 1/2 joint tenancy 1/2 excess liabilities (10.20% of House $25,000 $304 $24,696 $7,575.00) 772,65 $ 5,397.65 $5,397.65 1/2 checking Less $750 for debts account $750 0 1/2 certificate Less $500 for debts Net share $19,227.35 of deposit $500 0 Grandchild D Total Net Share $24,696 Same as Grandchild C 19,227.35 Total Shares $188,425.00 Child C - Same as Child B $24,696 Example 2 $49,392 Decedent A, a widower and resident of Dickinson Recap County, Iowa died testate, leaving his estate in equal Total Iowa Gross $52,500 shares to his two children B & C. Assets 160-acre farm owned Less Iowa Liabilities 3,108 Iowa Net Estate $49,392 by the decedent in Minnesota $160,000 Example 3 Residence in Milford, Decedent A, a widow died intestate in a nursing home, Iowa in joint a resident of Iowa. The assets of her estate consisted of tenancy with $100,000 in stocks and bonds held in joint tenancy with children 50,000 her only child B and $10,000 Series E U.S. Savings bonds Checking account - registered in equal amounts in joint tenancy with her decedent owned 1,500 grandchildren C and D. A also owned at death a checking Certificate of de­ account with amount of $5,000 registered in her name posit - decedent alone. The debts and charges in the estate were $10,000. owned 1,000 In this estate, the $5,000 checking account was applied Total Assets (Iowa against the $10,000 debts and charges. The decedent’s $52,500, Minnesota son B paid the remaining debts and charges of $5,000 $160,000) $212,500 from his personal funds. Since the grandchildren’s Liabilities exemption of $15,000 is in excess of each grandchild’s Attorney & fiduciary fees, Minnesota $ 6,680 inheritance of $5,000, allocating 9.09 percent of the excess debts and charges against their joint tenancy U.S. Bonds Court costs, confers no tax benefit on the grandchildren. Under this Minnesota 500 set of facts, the son B is not permitted to deduct from Attorney fees, Iowa 750 his joint property all of the excess debts and charges Iowa court costs 150 Funeral bill 3,500 in the amount of $5,000 he paid. The statute only permits Miscellaneous unse­ him to deduct his pro rata share (90.91% of $5,000 or $4,545.45) even though he paid all of the excess cured debts 1,000 Total Liabilities deductions. The surviving joint tenants are not permitted $ 12,580 to choose which joint tenants will receive the benefit of Proration of the liabilities between Iowa and Minnesota the excess deductions. The statute requires they be under Iowa Code section 450.12(2) and department prorated. subrule 86.6(4). Item 3. Amend the implementation clause at the end of rule 701—86.6(450) to read as follows: Iowa Gross 52.500 This rule is intended to implement Iowa Code sections Total Gross 212.500 = 24.71% x $12,580 = $3,108 450.12, 450.22, 450.24, 450.38, 450.89, 633.278, 633.374 and 4983 Iowa Acts, ehapter 4771990 Iowa Acts, House File 2551. ' In this example the liabilities allocated to the Iowa estate in the amount of $3,108 exceed the $2,500 in Iowa Item 4. Amend 701—Chapter 86 by adding the property subject to debts and charges. The excess debts following new rule: and charges of $608 are deductible from the children’s 701—86.13(73GA, HF 2551) No lien on the surviving joint tenancy property for inheritance tax purposes even spouse’s share of the estate. Effective for estates of though there is sufficient Minnesota property which is decedents dying on or after January 1, 1988, no subject to debts and charges. To take the excess Iowa inheritance tax lien is imposed on the share of the debts and charges from the Minnesota property would decedent’s estate passing to the surviving spouse. allocate more liabilities to Minnesota than Iowa Code This rule is intended to implement 1990 Iowa Acts, section 450.12(2) allows. House File 2551. IAB 7/11/90 NOTICES 53

ARC 1045A 19.2(6) Audit workpapers. A rate-regulated utility shall maintain at its home office workpapers and related UTILITIES DIVISION[199] notes generated by either utility personnel, consultants, or independent auditors and related to audits of the Notice of Intended Action utility’s books, records, and income taxes. Notwithstand­ Twenty-five Interested persons, a governmental subdivision, an agency ing any other board rule, audit workpapers and related or an association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code §17A.4(1)“6” notes must be maintained for each fiscal year since the beginning of the test year used in the utility’s most recent Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any rate proceeding, or for a period of no less than five years, individual or group, review this proposed action under §17A.8(6) at whichever period is longer. a regular or special meeting where the public or interested persons may be heard. This subrule is intended to implement Iowa Code section 476.9(3). The Iowa Utilities Board hereby gives notice that on Item 2. Amend rule 199—20.2(476) by adding the June 22, 1990, the Board issued an order in Docket No. following new subrule: RMU-90-21, In Re: Utility Audit Workpapers, “Order 20.2(6) Audit workpapers. A rate-regulated utility Commencing Rule Making,” pursuant to Iowa Code shall maintain at its home office workpapers and related sections 476.2 and 17A.4, to consider amendments to 199 notes generated by either utility personnel, consultants, I AC 19.2(476), 20.2(476), 21.2(476), and 22.2(476). or independent auditors and related to audits of the These amendments, proposed by the Consumer utility’s books, records, and income taxes. Notwithstand­ Advocate Division of the Department of Justice, would ing any other board rule, audit workpapers and related require every rate-regulated utility to maintain at its notes must be maintained for each fiscal year since the home office copies of all outside auditor workpapers and beginning of the test year used in the utility’s most recent related audit notes. The Board has added specific rate proceeding, or for a period of no less than five years, language to clarify that the rule making would apply whichever period is longer. only to rate-regulated utilities. Consumer Advocate This subrule is intended to implement Iowa Code stated in its petition for rule making that, during rate section 476.9(3). proceedings, its staff routinely conducts on-site inves­ tigations of utilities’ books. Consumer Advocate states ITEM 3. Amend rule 199—21.2(476) by adding the that these audit materials provide valuable information following new subrule: concerning utility accounting and income tax practices 21.2(3) Audit workpapers. A rate-regulated utility directly bearing on utility rates. The availability of audit shall maintain at its home office workpapers and related workpapers at a utility’s home office would facilitate notes generated by either utility personnel, consultants, more cost-efficient investigation of proposed rates and or independent auditors and related to audits of the charges. Consumer Advocate has stated that it is not utility’s books, records, and income taxes. Notwithstand­ aware of any_obstacles to prevent a utility from ing any other board rule, audit workpapers and related contracting with independent auditors or consultants to notes must be maintained for each fiscal year since the obtain at least the right to maintain a copy of these beginning of the test year used in the utility’s most recent documents at the utility’s headquarters. rate proceeding, or for a period of no less than five years, Under Iowa Code section 17A.4(l)“a” and “b,” all whichever period is longer. interested parties may file written comments on the This subrule is intended to implement Iowa Code proposed rule no later than July 31, 1990, by filing an section 476.9(3). original and ten copies of the comments substantially Item *4. Amend rule 199—22.2(476) by adding the complying with the form prescribed in 199 IAC 2.2(2). following new subrule: All written statements should be directed to the 22.2(7) Audit workpapers. A rate-regulated utility Executive Secretary, Iowa Utilities Board, Lucas State shall maintain at its home office workpapers and related Office Building, Des Moines, Iowa 50319. An oral notes generated by either utility personnel, consultants, presentation is scheduled in this docket for 10 a.m. on or independent auditors and related to audits of the August 21, 1990, in the Utilities Board’s First Floor utility’s books, records, and income taxes. Notwithstand­ Hearing Room, Lucas State Office Building, Des Moines, ing any other board rule, audit workpapers and related Iowa. Pursuant to 199 IAC 3.7, all interested persons notes must be maintained for each fiscal year since the may participate in this oral presentation. beginning of the test year used in the utility’s most recent These rules are intended to implement Iowa Code rate proceeding, or for a period of no less than five years, section 476.9(3). whichever period is longer. » Item 1. Amend rule 199—19.2(476) by adding the This subrule is intended to implement Iowa Code following new subrule: section 476.9(3). 54 FILED EMERGENCY IAB 7/11/90

ARC 1071A 2. An individual who is not working, but has a job or business from which the individual is temporarily ECONOMIC DEVELOPMENT, IOWA absent because of illness, bad weather, vacation, labor- management dispute, or a personal reason, whether or DEPARTMENT OF[261] not paid by the employer for time off, and whether or Adopted and Filed Emergency not seeking another job; or , Pursuant to the authority of Iowa Code sections 15.104 3. Members of the armed forces who have not been and 15.106, the Iowa Department of Economic Devel­ discharged or separated; or opment (IDED) emergency adopts and implements 4. Participants in registered apprenticeship programs. Chapter 18, “Work Force Investment Program,” Iowa “Employed part-time” means an individual who is Administrative Code. The Iowa Department of Economic defined as being employed but is regularly scheduled Development Board adopted these rules on June 21,1990. for work less than 30 hours per week. The purpose of the Work Force Investment Program “Not in the work force” means a civilian 14 years of is to enable more Iowans to enter and reenter the work age or older who is not classified as employed, unem­ force by providing training activities and support ployed or employed part-time. services to groups within the population that have “Underemployed” means a working individual whose historically faced barriers to employment and which annualized wage rate does not exceed the higher of either have been more difficult to serve with traditional job the poverty income level for a family-of-one as established training programs. by the federal office of management and budget or 70 Chapter 18 describes the purpose of the Work Force percent of the lower living standard income level for Investment Program, outlines the program eligibility a family-of-one. and coordination requirements, establishes the compet­ “Unemployed” means an individual who did not work itive grant proposal process, and provides for the during the seven consecutive days prior to application, transition of participants from the former displaced who made specific efforts to find a job within the past homemaker program. four weeks prior to application, and who was available These rules are being placed under Notice as ARC for work during the seven consecutive days prior to 1072A herein to allow for public comment. application (except for temporary illness). In compliance with Iowa Code section 17A.4(2), the 18.2(2) Job Training Partnership Act (JTPA) terms. Department finds that public notice and participation The definition of JTPA terms such as private industry are contrary to the public interest because it would council (PIC), local elected official (LEO), service unnecessarily delay needed services to displaced delivery area (SDA), state job training coordinating homemakers. Individuals enrolled in the Displaced council (SJTCC), administrative entity and Job Training Homemaker Program operated by the Job Training Partnership Act (JTPA) can be found in the Job Training Partnership Act Service Delivery Areas prior to July Partnership Act (P.L. 97-300) and its implementing 1, 1990, will be transitioned to the new Work Force regulations at 20 CFR Part 626 et al..(September 22, Investment Program. 1989). The Department finds, pursuant to Iowa Code section 17A.5(2)“b”(2) that the normal effective date of the rules 261—18.3 (73GA,SF2327) Request for proposal should be waived and the rules be made effective upon process. Funds will be made available through a request filing with the Administrative Rules Coordinator. The for proposal process and grants will be awarded on a rules confer a benefit upon the current participants of competitive basis. the discontinued Displaced Homemaker Program by 18.3(1) Time frame for submittal. A proposal can be allowing continuation of their training without a submitted at any time during the year, but the proposal disruption in their activities and services. must be submitted at least 45 calendar days in advance These rules are intended to implement 1990 Iowa Acts, of the anticipated start-up date of the project. Senate File 2327, section 1(18). 18.3(2) Length of projects. A proposed project may These rules became effective June 22,1990. be designed for up to 12 months in duration. The following new chapter is adopted: a. The ending date of a project may extend beyond CHAPTER 18 June 30 of any given year; however, funding is only WORK FORCE INVESTMENT PROGRAM guaranteed through the end of the fiscal year (June 30). Funding beyond that date will be contingent upon 261—18.1(73GA,SF2327) Purpose. The program is appropriation for the next fiscal year. ■ designed to enable more Iowans to enter or reenter the b. The IDED may grant an extension to a project as work force by providing training and support services long as the maximum total length of the project does to groups within the population that have historically not exceed 18 months. faced barriers to employment and which have been more difficult to serve with traditional job training programs. 18.3(3) Required inclusions in the proposal. The IDED, in consultation with the SJTCC, will determine the 261—18.2(73GA,SF2327) Definitions. required elements of tihe proposal which will be published 18.2(1) Eligibility terms. in the request for proposal. Required inclusions may “Employed” means: include, but are not limited to: identification of the target 1. An individual who, during the seven consecutive group(s) to be served, statement of need for service to days prior to the application, did any type of work the target group(s), statement of financial need, including working as a paid employee; working in the coordination and collaboration efforts, proposed budget, individual’s own business, profession or farm; or working description of the program design, goals and expected 15 or more hours as an unpaid worker in an enterprise outcomes, signature of authorized official, and letters of operated by a member of the family; or support for the project. IAB 7/11/90 FILED EMERGENCY 55

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cont'd)

18.3(4) Review criteria. Proposals will be reviewed b. The proposed grant recipient has an agreement with as set forth' in subrule 18.3(5) based upon the following an entity possessing the powers to levy taxes in a political review criteria. subdivision of the state and to spend funds. The a. Statement of need. The proposal must contain a agreement must ensure that the tax levying entity will statement of need including an explanation of such things pay the grant recipient’s liabilities arising under WFIP. as: the need for service to the target group(s) that will (A copy of the agreement must be submitted with the be served, the financial need in the area, reduction of proposal.) federal training funds in the area, and why the target c. The proposed grant recipient has completed a recent group(s) is not being served with current resources. Up audit and has a financial statement which includes a to 35 points may be awarded for this category. current balance sheet showing assets exceeding liabil­ b. Coordination/collaboration efforts. The proposal ities by an amount equal to 25 percent of the budget must demonstrate multiple agency involvement in the request for the proposed project. (A copy of the most planning and implementation of the project including recent audit report and financial statement, including the source, type and amount of any funds which will a balance sheet, must be attached to the proposal.) be made available for the project from other sources. d. The proposed grant recipient will purchase, with Up to 30 points may be awarded for this category. IDED approval, from non-WFIP funds, audit exception c. Program design. The proposal must include a insurance covering at least 25 percent of the budget completed budget summary, a description of the project, request for the proposed project. (A copy of the insurance and the goals and expected outcomes of the project. A policy or a letter from the insurance agency must be higher number of points will be awarded in this category attached to the proposal.) for innovative and replicable projects. Up to 35 points may be awarded for this category. 261—18.6(73GA,SF2327) Allowable costs and 18.3(5) Selection process. Selection of projects to be limitations. funded will be made by the director of the IDED or 18.6(1) Allowable training activities and support the director’s designee after the proposals have been services. The allowable training activities and support scored and recommended by an evaluation team. services under this program will be determined by the a. Each reviewer on the evaluation team will evaluate IDED in consultation with the state job training each proposal independently for acceptability and will coordinating council (SJTCC) and published in the assign a numerical score to each proposal using the request for proposal. review criteria and point values listed in the request for 18.6(2) Cost categories. Allowable costs must be consistently charged against the two cost categories of proposal. administration and participant support/training. b. All reviewer’s scores for each proposal will be 18.6(3) Cost limitations. Costs of administration must averaged to obtain the final average score for the not exceed 20 percent of the expenditures for any project. proposal. c. A project must obtain a final average score of at 261—18.7(73GA,SF2327) Eligible participants. The least 70 out of a maximum of 100 points to be considered target groups for this program will be established by for funding. Proposals with a score below 70 may be the IDED in consultation with the SJTCC. The list of revised and resubmitted to receive reconsideration for target groups and the definition of each will be published funding. in the request for proposal. d. All proposals received within a calendar month will 18.7(1) Regardless of the target group, no individual be ranked by final average scores and funded in the order will be served with these funds unless, at the time of of their rank. application, that individual is unemployed, underem­ ployed, or not in the work force and a resident of Iowa. 261—18.4(73GA,SF2327) Maximum grant amounts. The process for selection of participants for any project The IDED in consultation with the SJTCC will set using these funds should give priority consideration to maximum grant amounts and publish the limitations in individuals who are most in need of assistance and utilize the request for proposal. the JTPA economically disadvantaged criteria to 261—18.5(73GA,SF2327) Eligible recipients. To be determine which individuals are most in need of eligible for receipt of funds an entity must submit a assistance. proposal which has been approved by the private 18.7(2) Generally, the target groups will coincide with industry council (PIC) and local elected officials (LEOs) the target groups that are to be served with the JTPA for the Job Training Partnership Act (JTPA) service 6 percent special projects and the JTPA state education delivery area (SDA) in which the project will operate. coordination and grants 8 percent program in order to 18.5(1) Projects funded by this program must encourage coordination, collaboration, and joint funding demonstrate interagency involvement in the planning with those programs. and implementation of the project. The JTPA adminis­ 18.7(3) The JTPA definitions of the target groups will trative entity must be one of the agencies involved in be used whenever possible. If no JTPA definition exists the development (planning), or the implementation of for a target group, the IDED will develop the definition the project or both. in consultation with the SJTCC and publish it in the 18.5(2) Eligible recipients must have previous request for proposal. experience in operating employment and training 18.7(4) Selection procedures for participants in this programs and must meet one of the following conditions: program should take into consideration those who are a. The proposed grant recipient has the power to levy most in need of assistance and use the JTPA economically t§xes in a political subdivision of the state and to spend disadvantaged eligibility criteria as a guideline for funds to meet potential liabilities arising under the work selecting participants. force investment program (WFIP) in its service delivery 261—18.8(73GA,SF2327) Displaced homemaker set- area. aside. During the fiscal year beginning July 1, 1990, 56 FILED EMERGENCY IAB 7/11/90 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (eont’d.)

and ending June 30, 1991, $300,000 of the funds for this requirements under this program. At IDED’s discretion, program will be utilized for displaced homemaker remedies for noncompliance may include the following: projects. a. Issue a warning letter that further failure to comply 18.8(1) To ensure an orderly transition and to avoid with program requirements within a stated period of the disruption of services, participants who are enrolled time will result in a more serious sanction. as of June 30, 1990, in the state-funded displaced b. Condition a future grant. homemaker programs operated through the JTPA c. Direct the grant recipient to stop the incurring of SDAs, will be continued through the end of their planned costs with grant amounts. activities or until June 30,1991, whichever date is earlier. d. Require that some or all of the grant amounts be Contracts will be written with program year 1989 JTPA remitted to the state. displaced homemaker program grant recipients to e. Reduce the level of funds the recipient would continue such participants. otherwise be entitled to receive. 18.8(2) After the funds for carryover displaced f. Elect not to provide future WFIP funds to the homemaker participants are contracted out, remaining recipient until appropriate actions are taken to ensure displaced homemaker set-aside funds will be included compliance. in the request for proposal process described herein. Reasons for a finding of noncompliance include, but 18.8(3) For subsequent fiscal years, funds will be set are not limited to: the grant recipient’s use of program aside for displaced homemaker projects as prescribed funds for activities not described in its application, the by legislation, or if not prescribed by law, as determined grant recipient’s failure to complete approved activities by IDED in consultation with the state job training in a timely manner, the grant recipient’s failure to coordinating council. comply with the contract or any applicable state or 261—18.9(73GA,SF2327) Administration. federal rules or regulations, or the lack of continuing 18.9(1) Contracts. Upon selection of a proposal for capacity by the grant recipient to carry out the approved funding, the IDED will issue a contract. These rules and project in a timely manner. applicable federal and state laws and regulations become 261—18.10(73GA,SF2327) Redistribution of funds. a part of the contract by reference. IDED reserves the right to recapture and redistribute 18.9(2) Record keeping and retention. Financial funds based upon projected expenditures, if it appears records, supporting documents, statistical records, and that funds will not be expended in accordance with the all other records pertinent to the program shall be proposed budget for a project. retained by the grant recipient in accordance with the These rules are intended to implement 1990 Iowa Acts, following: Senate File 2327,- section 1(18). a. Records for any project shall be retained for three [Filed emergency 6/22/90, effective 6/22/90] years after final closeout and audit procedures are [Published 7/11/90] completed and accepted by IDED; b. Representatives of the state auditor’s office and the Editor’s Note: For replacement pages for IAC, see IAC IDED shall have access to all books, accounts, documents, Supplement, 7/11/90. records and other property belonging to or in use by a grant recipient pertaining to the receipt of funds under these rules. 18.9(3) Data collection and reporting requirements. Grant recipients shall collect, maintain and report to the IDED participant characteristic information, activity and service levels, participant status at termination, program outcomes and expenditures as prescribed in the ARC 1036A contract. The reports will assess the use of funds in accordance with program objectives, the progress of EMPLOYMENT APPEAL program activities, and compliance with program BOARD[486] requirements. 18.9(4) Monitoring. The IDED may perform any Adopted and Filed Emergency review or field inspections it deems necessary to ensure Pursuant to the authority of Iowa Code sections program compliance. 10A.601(6) and 22.11, the Employment Appeal Board a. The grant recipient must make available all of its hereby emergency adopts and implements amendments records pertaining to all matters related to this program to Chapter 2, “Definitions,” and Chapter 7, “Construction and shall permit IDED to utilize, monitor, examine, Contractor Registration Appeals,” Iowa Administrative \make excerpts or transcripts from such records, Code, relating to the definition of the term “work contracts, invoices, payrolls, personnel records, condi­ product.” tions of employment, the management information The Employment Appeal Board adopted these system, and other data and records related to all other amendments on June 18,1990. matters covered by this program. In compliance with Iowa Code section 17A.4(2), the b. When problems of compliance are noted, IDED may Employment Appeal Board finds that public notice and require corrective action to be taken. Failure to respond participation are impracticable as the changes herein to corrective action notifications may result in the serve to further clarify the rules and do not substantively implementation of 18.9(5). change the rules. 18.9(5) Remedies for noncompliance. At any time The Employment Appeal Board also finds, pursuant before project closeout, IDED may, for cause, find that to Iowa Code section 17A.5(2)“b”(2), that the normal a grant recipient is not in compliance with the effective date of these amendments, 35 days after IAB 7/11/90 FILED EMERGENCY 57 EMPLOYMENT APPEAL BOARD[486] (cont’d) publication, should be waived and the rules should Chapter 52. These amendments provide for an increase become effective immediately upon filing, as it is in the maximum reimbursement rate and flat rate for necessary for clarification of the rules. residential care facilities. The maximum reimbursement These rules are intended to implement Iowa Code per diem rate is increased from $18.51 to $19.62 and chapter 91C and section 10A.601. the flat per diem is increased from $13.23 to $14.03. These rules became effective June 20,1990. Chapter 78. These amendments increase the material The following amendments are adopted: costs listed for opticians and hearing aid dealers by 6.4 percent and increase the service costs listed for hearing Item 1. Amend rule 486—2.1(10A) by adding the following new definition: aid dealers by 4 percent. The Medicaid fiscal agent “Work product” means those documents produced by (Unisys) is required to determine the ambulance the agency which describe or portray the “mental transportation was medically necessary for payment to impressions,” conclusions, opinions, or legal theories be made. concerning the determination made by the agency as a Chapter 79. These amendments do the following: result of agency investigation or inquiry. 1. Provide for an increase of 4 percent for the following Medicaid providers over the June 30, 1990, rate as Item 2. Amend subrule 7.1(1) as follows: directed by the General Assembly: ambulances, ambu­ 7.1(1) Form and time of appeal. Any contractor latory surgical centers, area education agencies, aggrieved by a citation or notice of proposed adminis­ audiologists, birth centers, chiropractors, community trative penalty shall notify the commissioner, within 15 mental health centers, dentists, elderly waiver service working days from the date of receipt of the notice, that providers, family planning clinics, genetic counseling the contractor intends to contest the citation or proposed clinics, hearing aid dealers, independent laboratories, penalty. The commissioner shall, within two working model waiver service providers, orthopedic shoe dealers, days of receipt of the notice of contest, transmit the opticians, optometrists, physical therapists, podiatrists, original notice of contest to the employment appeal board, psychiatric medical institutions for children, psycholo­ together with all records and documents contained in gists, and rehabilitation agencies. the administrative file except the agency work product. 2. Reimbursement for optometric products, and The contest (hereinafter called appeal) must be in durable medical products and supplies is increased by writing, signed by the respondent or authorized agent. 6.4 percent. The Department is allowed flexibility in If an appeal is signed by an authorized agent, the name allocating the increase for medical equipment and of the respondent shall be shown at the end of the appeal, supplies so that equipment and supplies which have followed by a signature of the authorized agent. greater wholesale cost increases may be reimbursed at [Filed emergency 6/20/90, effective 6/20/90] a higher rate and those which have a lower or no [Published 7/11/90] wholesale cost increase may be reimbursed at a lower rate or have no increase. Editor’s Note: For replacement pages for IAC, see IAC 3. Reimbursement rates for physicians and certified Supplement, 7/11/90. registered nurse anesthetists are increased by 3.2 percent. 4. Reimbursement rates for screening centers, maternal health centers, obstetric services when provided by physicians or certified nurse midwives, and pediatric services are increased by 7.44 percent. 5. The dispensing fee for pharmacists is increased from ARC 11042A $3.87 to either (1) the lower of the pharmacist’s customary fee to the general public, the 75th percentile of customary HUMAN SERVICES fees charged in the state of Iowa, or a fee of $4.02 for BEPARTMENT[441] prescribed drugs for which a maximum allowable cost (MAC) has been established and for Schedule II Adopted and Filed Emergency - o controlled drugs or (2) the lower of the pharmacist’s Pursuant to the authority of Iowa Code sections customary fee to the general public, the 75th percentile, 217.6,234.6, and 249A.4 and 1990 Iowa Acts, Senate File or a fee of $6.25 for drugs other than Schedule II 2435, section 38, the Department of Human Services controlled drugs for which a MAC has not been hereby amends Chapter 52, “Payment,” Chapter 78, established. “Amount, Duration and Scope of Medical and Remedial 6. Reimbursement rates for hospitals are increased by Services,” Chapter 79, “Other Policies Relating to 5.7 percent. Providers of Medical and Remedial Care,” Chapter 82, 7. Reimbursement rates for skilled nursing facilities “Intermediate Care Facilities for the Mentally are increased by 5 percent. Retarded,” Chapter 150, “Purchase of Service,” Chapter 8. The maximum reimbursement rate for intermediate 156, “Payments for Foster Care and Foster Parent care facilities is established at the 74th percentile of Training,” and Chapter 177, “In-Home Health Related facility costs as calculated from the June 30, 1990, Care,” appearing in the Iowa Administrative Code. unaudited compilation of cost and statistical data. The These amendments implement the changes in rates current maximum payment rate is $40.11. The Depart­ for Medicaid and service providers mandated by the ment’s budget was based on a maximum payment rate General Assembly. The changes are summarized by of $43.32 for July 1,1990. chapter below. . 9. Intermediate care facilities shall receive in addition In addition, these rules provide that Medicaid shall to their approved per diem rate, $2.50 per day for each not reimburse an ambulance service for transporting a Medicaid resident identified by the Iowa Foundation for Medicaid recipient unless the trip was medically Medical Care as meeting criteria to receive special care necessary. or services. 58 FILED EMERGENCY IAB 7/11/90 HUMAN SERVICES DEPARTMENT[441] (cont’d)

Chapter 82. Intermediate care facilities for the f. Payment for a total frame shall be at cost not to mentally retarded with 15 or fewer beds shall be exceed $12.96 $13.78 and payment for replacement parts reimbursed at 95 percent of the authorized per diem for frames shall be at cost not to exceed $8.64 $9.19. reimbursement for allowed leave days. j. Case for glasses not to exceed $1.03 $1.09. Chapter 150. These amendments increase rates to Item 3. Amend subrule 78.11(2), introductory para­ service providers by 6 percent over the rates in effect graph, as follows: on June 30, 1990. The maximum rate for foster group 78.11(2) The fiscal agent shall determine that and shelter care is set at $75.11 per day. However, foster group care and shelter care providers whose reim­ that the condition of the patient precluded any ether bursement rate is $70.86 or less on June 30, 1990, will receive an automatic increase of $4.25. the recipient and ambulance service will he notified A provision is also included that the 6 percent rate increase may be applied to the maximum rate a provider eases ether than transport from a medical institution has received in any of the last five fiscal years if the te a hospital. The fiscal agent shall determine that the provider can justify that the costs associated with that ambulance transportation was medically necessary and reimbursement rate pertain to fiscal year 1991. that the condition of the patient precluded any other method Chapter 156. These amendments provide an average of transportation. Payment can be made without the increase of 9 percent for foster family maintenance physician’s confirmation when: payments and raise the foster group care cap to $75.11. Chapter 177. These amendments increase the maxi­ Item 4. Amend subrule 78.14(7), paragraphs “a,” “b,” mum payment rate for in-home health related care by and “d,” as follows: 6 percent, from $368.07 to $390.15. a. Payment for hearing aids shall be acquisition cost The Department of Human Services finds that notice plus a dispensing fee covering the fitting and service and public participation are impracticable because there for six months. is not adequate time to implement the regular rule- (1) For service in the office, the dispensing fee shall making process and to carry out 1989 Iowa Acts, Senate not exceed $162:58 $169.08. File 541, sections 2 and 31, by July 1, 1990. The (2) For service out of the office, the dispensing fee shall Department has no choice in implementing these not exceed $178.84 $185.99. provisions which are legislative mandates. Therefore, b. Payment will be made for the ear mold, not to exceed these amendments are filed pursuant to Iowa Code $22M $28.82. section 17A.4(2). d. Payment will be made for routine service after the These rules are also published herein as a Notice of first six months, not to exceed $1389 $14-14 per year. Intended Action, ARC 1043A, to allow for public Item 5. Amend rule 441—79.1(249A) as follows: comment. The Department finds that 1990 Iowa Acts, Amend subrule 79.1(2) as follows: Senate File 2435, section 38, allows these amendments 79.1(2) Basis of reimbursement of specific provider to be effective immediately upon filing, unless a later categories. effective date is specified. Therefore, these amendments are filed pursuant to Iowa Code section 17A.5(2)“b”(l). Basis of The Council on Human Services adopted these rules Provider category reimbursement Unner limit June 13, 1990. Ambulance Fee schedule Fee schedule in effect These rules are intended to implement Iowa Code 6/30/89 6/30/90 plus sections 234.6, 234.38, 249.4, and 249A.4 and 1990 Iowa Acts, Senate File 2435, sections 2 and 31. These rules became effective July 1,1990. Ambulatory surgical Fee schedule as Fee schedule in effect centers determined by Medi­- 6/30/89 6/30/90 plus The following amendments are adopted: care. See 79.1(3) £36% i% Item 1. Amend subrule 52.1(3), introductory para­ graph, as follows: Area education Fee schedule Fee schedule in effect agencies o 6/30/89 6/30/90 plus 52.1(3) Residential care. Payment to a recipient in a 3:36% i% residential care facility shall be made on a flat per diem rate of $13.28 $14.03 or on a cost-related reimbursement Audiologists Fee schedule Fee schedule in effect system with a maximum reimbursement per diem rate 6/30/89 6/30/90 plus of $1-8:51 $19.62. A cost-related per diem rate shall be 2:36% U% established for each facility choosing this method of Birth centers Fee schedule Fee schedule in effect payment according to rule 54.3(249). 6/30/89 6/30/90 plus o oco/ -0*10 \ nra/ <7 / iq, BTCtT/O piUS X. f /.4470 Item 2. Amend subrule 78.7(1), paragraphs “e,” “f,” for obstetrical service and “j,” as follows: e. Payment for single vision lenses shall be $14.58 Case management Monthly fee Fee schedule $15.51 per pair, bifocal vision lenses shall be $25.38 providers per enrollee $27.00 per pair, trifocal vision lenses shall be $81.86 $83.89 per pair, and aphakia lenses shall be $50:76 $54.00 Certified registered Fee schedule Fee schedule in effect per pair. Payment for lenses with a correction of plus nurse anesthetists 6/30/90 plus 3.2% or minus six diopters or more shall be an additional $884 Chiropractors Fee schedule Fee schedule in effect $9.19 per pair. One lens shall be one-half the per pair 6/30/89 6/30/90 plus price. All fees shall be reviewed annually. ssm U% IAB 7/11/90 FILED EMERGENCY 59 HUMAN SERVICES DEPARTMENTS 1] (cont’d)

Community mental Fee schedule Reimbursement rate for Intermediate care Prospective reim­ Seventy-fourth percen­ health centers center in effect facilities bursement See tile of facilities as calcu­ 6/80/89 S/30/90 plus 81.10(1) and 441— lated from Jane 30; 1989 £26% 4% 81.6(249A) June SO, 1990 cost reports plus $2.50 per Dentists * Fee schedule Fee schedule in effect day for Medicaid recip­ 6/30/89 6/30/90 plus O octv in/, rtltn 1 r?g up to intermediate care providing care to ICF/ 6.4% for materials* facility, intermediate MR clients shall receive Home health agencies Retrospective cost- Maximum Medicare rate care facility for the SNF rate related mentally retarded-out of home) Hospices Prospective Fee Medicare cap (See schedule as deter­ 79.1(14)“d”) (Foster group care- Prospective P.O.S. contract rate to a mined by Medicare out of home) reimbursement maximum of $68.13 per day Hospitals (Inpatient) Prospective reim­ Reimbursement rate in bursement. See effect 6/30/89 6/30/90 (Foster family home- Fee schedule Emergency care rate 79.1(5) plus 396% 5.7% out of home) (See 156.11(2) Hospitals (Outpatient) Retrospective cost- Fee schedule in effect Nurse-midwives Fee schedule Fee schedule in effect related for providers 6/30/89 plus 2.26% 6/30/89 6/30/90 plus n ortv ^1,./. 1 i7CQL fOP listed at 78.31(l)“a” i5*£v7v pnio TtM/A# xvi to “f >> Retrospective rate m obststpic&l services effect 6/30/90 plus 5.7% 7.44% Fee schedule for pro- Retrospective pate tft Opticians Fee schedule. Fixed Reimbursement rate for ~te—*. ft/on/flO nln-i o aco/ viders listed at Cllctt “/OV/0“ piUS BTStTO fee for lenses and provider in effect 78.31(l)“g” to “k.” frames: other optical 6/30/89 6/30/90 for pro­ Fee schedule in effect materials at product fessional services plus 6/30/90 plus 5.7% acquisition cost 2.26% 4% plus up to 8% Independent Fee schedule See Fee schedule in effect 6.4% for materials opto- laboratories 79.1(6) 6/30/89 6/30/90 plus metric products * O flCIV IQ/ ETE(77u 60 FILED EMERGENCY IAB 7/11/90 HUMAN SERVICES DEPARTMENT[441] (cont’d)

Optometrists Fee schedule. Fixed Reimbursement rate for “Maximum allowable cost (MAC)” is defined as the fee for lenses and provider in effect upper limit for multiple source drugs established in frames; other optical 6/30/80 6/S0/90 for pro- materials at product fessional services plus accordance with the methodology of the Health Care acquisition cost 3.25% 4% plus hT-5% for Financing Administration (HCFA) as described in 42 office visits plus up to 8% CFR 447.332(a)(i) and (ii). 6.4% for materials opto- The basis of payment for prescribed drugs for which metric products * a MAC has been established and for Schedule II Orthopedic shoe Fee schedule Reimbursement rate for controlled drugs shall be the lesser of the submitted dealers provider in effect acquisition cost or the MAC plus a professional 6/30/89 6/S0/90 plus 3.35% 4% plus up to 8% dispensing fee which is the lower of the pharmacist’s 6.4% for materials* customary fee to the general-public, the 75th percentile of customary fees charged in the state of Iowa, or a fee Physical therapists Fee schedule Fee schedule in effect 6/30/89 6130/90 plus of $4.02. 336% 4% The basis of payment for drugs other than Schedule II controlled drugs for which a MAC has not been Physicians (doctors of Fee schedule. See Fee schedule in effect medicine or’ 79.1(7) established shall be the lesser of the submitted acqui­ osteopathy) 235% 3.2% plus 1.75% far sition cost or the EAC plus a professional dispensing office visits and 7.44% fee which is the lower of the pharmacist’s customary for obstetrical services fee to the general public, the 75th percentile of fees as defined by the depart­ ment and pediatric pri­ charged in the state of Iowa or a fee of $6.25. mary care services as If a physician certifies in the physician’s handwriting defined by the that, in the physician’s medical judgment, a specific department brand is medically necessary for a particular recipient, Podiatrists Fee schedule Fee schedule in effect the MAC does not apply and the payment equals the 6/30/89 6/30/90 plus average wholesale price of the brand name product less o ocq/, /q/ Ttliifi 1 7K

HUMAN SERVICES DEPARTMENT[441] (cord’d)

providers of social services shall be established by department worker may authorize an additional automatically increasing the unreduced rates in effect maintenance paymentof $27.25 per month. Expenses on June 30, 1989 1990, by 4 6 percent. This automatic over $26 $27.25 may be reimbursed with prior approval increase is intended to be a one-time exception to policy by the worker. Eligible expenses shall include the actual for the fiscal year beginning July 1, 1989 1990, and cost of the most reasonable passenger fare or gas. ending June 30, 1990 1991, only, and is not intended to Amend the implementation clause at the end of rule eliminate regular submission of cost reports. Interrup­ 441—156.6(234) as follows: tions in service programs will not affect the rate. If an This rule is intended to implement Iowa Code section agency assumes the delivery of service from another 234.38 and 1989 Iowa Aets, Senate File 64F section 27 agency, the rate shall remain the same as for the former 1990 Iowa Acts, Senate File 2435, section 31. agency. Providers of social services shall receive the 4 Item 9. Amend subrule 156.9(1) and the implemen­ 6 percent rate increase with the following exceptions: tation clause at the end of rule 441—156.9(234) as follows: (1) Rates for foster group care and shelter care shall 156.9(1) Public and private foster group care facili­ not exceed $70.86 $75.11 per day. The increases for foster ties licensed or approved in the state of Iowa shall not group care and shelter care service shall be $2.73 $4.25 be reimbursed in excess of $70.86 $75.11 per child per unless subparagraph (2) applies. day. Rate setting procedures established in 441— (2) Reimbursement rate increases may be applied to 150.3(234) shall be followed. Additional per diem the maximum reimbursement rate a service has received reimbursement may be authorized if a facility has been in any of the last five fiscal years," provided that if the awarded a grant for supplemental payments according service uses a reimbursement rate for a year other than to subrule 156.9(3) or if the facility has a performance- the fiscal year beginning July 1,1988 1989, the provider based contract. can justify to the department that the costs associated This rule is intended to implement Iowa Code sections with the reimbursement rate pertain to the fiscal year 09A £ qn99/1 QQ 1 flQ^7 Tmurvi pfn U'iIa faiO**!/ CtliU 60^4 « OOj Tt/ui 1U W cl TTvvoJA TTffu CIqT? niv vTa y SCv LiUIlio beginning July 1,1989 1990. OAO n J 1QOO IXauaa LNlrt 0442^ SvSoIuISTTj ctliLl TJ/OO lv/WO HUUoC x lit- £rcxcx I , 36UUUII 1. The provider shall submit to the project manager 361990 Iowa Acts, Senate File 2435, section 31. not later than January 1, 1990 1991, a letter in which the provider specifies the desired reimbursement rate Item 10. Amend subrule 156.11(2) and the implemen­ and the year in which the rate was in effect. tation clause at the end of rule 441—156.11(234) as 2. The provider shall submit with the letter Form SS- follows: 1703-0, The Financial and Statistical Report for 156.11(2) Foster family homes may be designated to Purchase of Services Contract, which the provider provide emergency care and may be paid on a daily rate completes using projected costs for the fiscal year per child when a child is placed. Rates for children shall beginning July 1, 1989 1990. be: 3. The purchase of service section bureau shall make the final decision regarding the rate in accordance with Age of child Rate established procedures except that the rate shall be Age 0-11 $10.54 $11.49 per day ($316.20 $344-70 effective the first day of the month following the month per month) in which a report sufficient to establish rates is received Age 12 $17.54 $19.12 per day ($526.20 $573.60 by the purchase of service section bureau. and over per month) Item 8. Amend rule 441—156.6(234) as follows: Amend subrule 156.6(1) as follows: This rule is intended to implement Iowa Code section QQ4 QQ nn/1 1 flQfl Ta«tt« A aIa K4 1 aaaI-i02 156.6(1) Basic rate. A monthly payment for care in £04.00 dim TiTOt/ iOWa TTCtS^ OCilalC .r 116 UtiJ {JCUtiUTi CT a foster family home licensed in Iowa shall be made to 1990 Iowa Acts, Senate File 2435, section 31. the foster family based on the following schedule. Item 11. Amend rule 441—177.4(249) as follows: Amend subrule 177.4(3) as follows: Age of Child Monthly rate 177.4(3) Maximum costs. The maximum cost of service shall be $368.07 $390.15. The provider shall accept the 0 through 5 $4W $198 payment made and shall make no additional charges to 6 through 11 222 243 the recipient or others. 12 through 15 268 289 Amend subrule 177.4(7), introductory paragraph, as 16 and over 279 300 follows: 177.4(7) Income for adults. The gross income of the Amend subrule 156.6(4), paragraphs “a,” “b,” and “c,” individual and spouse, living in the home, shall be limited as follows: to $368.07 $390.15 per month if one needs care or $736.14 156.6(4) Special care maintenance payment. $780.30 if both need care, with the following disregards: a. When foster parents provide care to a special needs Amend subrule 177.4(8), paragraph “b,” introductory child an additional payment of $100 $109 per month may paragraph, as follows: be authorized for extra expenses associated with the b. The income of the child shall be limited to $368.07 child’s special needs. $390.15 per month with the following disregards: b. When a foster family provides care to a sibling group of three or more children, an additional payment of $26 [Filed emergency 6/20/90, effective 7/1/90] $27.25 per month per child may be authorized for each [Published 7/11/90] nonspecial needs child in a sibling group. EDITOR’S NOTE: For replacement pages for I AC, see I AC c. When the foster family’s responsibilities in the case Supplement, 7/11/90. permanency plan include providing transportation related to family or preplacement visits outside the community in which the foster family lives, the 62 FILED EMERGENCY IAB 7/11/90

ARC 1025A Chapter 75, “Conditions of Eligibility,” appearing in the Iowa Administrative Code. HUMAN SERVICES This rule is being promulgated pursuant to Section 9401 of the Omnibus Budget Reconciliation Act of 1986 DEPARTMENT[441] which requires continuation of Medicaid to a child Adopted and Filed Emergency attaining a maximum age limit who loses Medicaid Pursuant to the authority of Iowa Code section 234.6, eligibility solely due to the attainment of that age if, the Department of Human Services hereby amends at the time of the age change, the child is receiving Chapter 73, “Commodity Distribution Programs,” inpatient services. Medicaid continues until the child appearing in the Iowa Administrative Code. leaves the medical institution. Income eligibility guidelines for the Federal Surplus This rule provides continued Medicaid coverage for Food Program in Iowa are based on the income guidelines the duration of the inpatient stay for infants who turn for the reduced price meals in the National School Lunch age one and whose family income exceeds 133 percent Program. New income guidelines have been received of the federal poverty level, for children who turn age from the Food and Nutrition Service, Department of six and whose family income exceeds 100 percent of the Agriculture, which are effective July 1,1990. federal poverty level, and for children who turn age eight. The Department of Human Services finds that notice When this language was enacted, Iowa did not have and public participation are impracticable because these rules under which children became Medicaid ineligible amendments merely incorporate new federal income upon reaching a certain age. Therefore, no action was guidelines. Therefore, these amendments are filed necessary at that time for the state to comply. The pursuant to Iowa Code section 17A.4(2). provisions of the Second Omnibus Reconciliation Act The Department finds that these amendments confer expanding Medicaid coverage to pregnant women, a benefit on the public by increasing the income infants and children were implemented in Iowa effective guidelines and thereby making more persons eligible for January 1, 1989, and established the need for this the free food. Therefore, these amendments are filed provision. pursuant to Iowa Code section 17A.5(2)“b”(2). The Department will implement this provision The Council on Human Services adopted these retroactively to January 1, 1989, for any cases brought amendments on June 13, 1990. to its attention. This rule is intended to implement Iowa Code section The Department of Human Services finds that notice 234.12. and public participation are impracticable because, the This rule became effective July 1, 1990. Department has no choice but to implement this provision The following amendments are adopted: which is required by federal statute. Therefore, this Amend subrule 73.4(3), paragraph “d,” subparagraph amendment is filed pursuant to Iowa Code section (2), as follows: 17A.4(2). (2) Income eligible status. The gross income according The Department finds that this rule confers a benefit to family size is no more than the following amounts: by providing continued Medicaid coverage for the duration of the affected children’s hospital stay. House- Therefore/this amendment is filed pursuant to Iowa Code hold Yearly Monthly Weekly section 17A.5(2)“b”(2). Size Income Income Income The Council on Human Services adopted this rule June 1 $11-,063 $11,615 ^ 322 $ 969 ^213 $221, 2 14 £37 15,557 ^ 236 1,299 2Qg 300 13,1990. 3 IS 611 19,536 1,626 350 376 This rule is intended to implement Iowa Code section oo ooe 4 CCiOOU 23,1,95 1,958 1,52 249A.4. 5 26 159 27,1,51, 2 I3Q 2,288 5Qg 528 This rule became effective June 14,1990. 29^933 ■ 6 31,US 2 494 2,618 605 The following amendment is adopted: 7 33,707 35,372 2 QQQ 2,91,8 681 Amend subrule 75.1(28) by adding the following new 8 37 481 39,331 3 123 3,278 721 757 paragraphs: For each additional j. If an infant loses eligibility under this coverage group household member £ 3 774 at the time of the first birthday due to an inability to add: $ 3,959 $ 316 $ 320 $ 73 $ 77 meet the income limit for children under this subrule, [Filed emergency 6/14/90, effective 7/1/90] but is receiving inpatient services in a medical [Published 7/11/90] institution, Medicaid shall continue under this coverage EDITOR’S NOTE: For replacement pages for IAC, see IAC group for the duration of the time continuous inpatient Supplement, 7/11/90. services are provided. k. If a child loses eligibility under this coverage group at the time of the sixth birthday due to an inability to meet the income limit for children six years of age or at the time of reaching the maximum age duration of eligibility allowed under this subrule, but is receiving ARC 1014 A inpatient services in a medical institution, Medicaid shall continue under this coverage group for the duration of HUMAN SERVICES the time continuous inpatient services are provided. DEPARTMENT[441] [Filed emergency 6/13/90, effective 6/14/90] Adopted and Filed Emergency [Published 7/11/90] Pursuant to the authority of Iowa Code section 249A.4, EDITOR’S NOTE: For replacement pages for IAC, see IAC the Department of Human Services hereby amends Supplement, 7/11/90. IAB 7/11/90 FILED EMERGENCY • 63

A person in a nursing facility who transfers resources ARC 1I044A to become eligible for Medicaid becomes ineligible for HUMAN SERVICES Medicaid for a period of 30 months or a lesser amount of time determined by dividing the value of the BEPARTMENT[441] transferred resources by the statewide average cost to Adopted and Filed Emergency After Notice a private pay person in order to arrive at the number of months of ineligibility for nursing facility services. Pursuant to the authority of Iowa Code section 249A.4, Under current policy the Department is to conduct a the Department of Human Services hereby amends survey annually to update the average statewide cost. Chapter 75, “Conditions of Eligibility,” appearing in the Under proposed policy the Department will continue to Iowa Administrative Code. update the average statewide cost annually, but need The Council on Human Services adopted these rules not conduct an annual survey. These amendments update June 13,1990. Notice of Intended Action regarding these the statewide average cost from $1841.12 to $2025.19. rules was published in the Iowa Administrative Bulletin This figure was arrived at by using the information from on April 18,1990, as ARC 810A. the survey conducted in February 1989 and updating These amendments implement a new coverage group it based on the 10 percent inflation reflected in facility which provides Medicaid payment of only the Medicare cost reports. Part A premium for qualified working and disabled The Department of Human Services finds that these individuals, change the policies on treatment of income rules confer a benefit by providing payment for the Part and resources when both members of a married couple A Medicare premium for disabled and working persons are living in the same medical institution, and revise under certain conditions and by treating the income and the method used to determine the statewide average cost resources of a couple in a medical institution in the to a private pay person in a medical institution and manner most beneficial to the couple. In addition these update the amount for the next fiscal year. rules increase the statewide average cost to a private The Omnibus Budget Reconciliation Act of 1989, pay resident in a medical institution. This cost is used Section 6012, added a new Section 1818A to the Social in computing the period of ineligibility for persons in Security Act which provides continued eligibility for medical institutions who have transferred property to Part A of Medicare for disabled persons who would become eligible for Medicaid. This reduces the period otherwise lose eligibility due to earnings. Section 6408 of ineligibility. of OBRA 1989 mandates that states pay the Medicare Subrule 75.1(33), paragraph “b,” was revised following Part A premium for those disabled and working federal clarification to provide that Medicaid payment individuals who meet certain conditions. Qualified of Medicare Part A premiums for the disabled and disabled and working individuals are those persons working persons is effective the first day of the month whose income does not exceed 200 percent of the poverty that the application is filed and there is a three-month level, whose resources do not exceed twice the amount retroactive period provided all eligibility requirements allowed for the Supplemental Security Income program, are met. Payment shall not be made prior to July 1,1990. who would not be eligible for other Medicaid benefits, Subrule 75.5(2), paragraphs “b” and “c,” subrule and who are entitled to Medicare Part A under Section 75.5(4), paragraphs “c” and “d,” and subrule 75.16(1), 1818A of the Social Security Act. At the present time paragraph “d,” subparagraph (2) were revised by the Part A premium is $175 per month. The Social substituting the phrase “partners in a marriage” for Security Administration will determine if persons are “members of a married couple” and the word “partner” eligible to continue receiving Part A of Medicare and for “member of the couple” wherever they appeared. the states will then determine if the persons are qualified These rules are intended to implement Iowa Code to receive payment of the premium by Medicaid. section 249A.4. Under current policy a husband and wife who are These rules became effective July 1, 1990. living in the same room in a medical institution are The following amendments are adopted: treated as a couple until the first day of the seventh Item 1. Amend rule 441—75.1(249A) by adding the calendar month that they reside together. Their income following new subrule: and resources are combined for purposes of determining 75.1(33) Qualified disabled and working persons. eligibility. Effective the first day of the seventh calendar Medicaid shall be available to cover the cost of the month they are then treated as individuals. The Omnibus premium for Part A of Medicare (hospital insurance Budget Reconciliation Act of 1987 gave states the option benefits) for qualified disabled and working persons. of treating a husband and wife living in the same medical a. Qualified disabled and working persons are persons institution as a couple after they have lived in the same who meet the following requirements: medical institution continuously for six months if (1) The person’s monthly income does not exceed 200 treating them as a couple would prevent either of them percent of the federal poverty level applicable to the from losing eligibility or receiving a reduction in benefits family size involved. or if they choose to be considered together. This (2) The person’s resources do not exceed twice the amendment implements that option. The Department maximum amount allowed under the supplemental has recently become aware of a couple of cases that this security income (SSI) program. policy change will benefit. For example, a husband has (3) The person is not eligible for any other Medicaid an income of $1200 and the wife has an income of $600. benefits. Under the old policy their income must be considered (4) The person is entitled to enroll in Medicare Part separately after the first six months and the husband A of Title XVIII under Section 1818A of the Social is no longer eligible for payment of the facility care. Security Act (as added by Section 6012 of OBRA 1989). Under the new policy, both husband and wife continue b. The amount of the person’s income and resources to be eligible. shall be determined as under the SSI program. 64 FILED EMERGENCY IAB 7/11/90 HUMAN SERVICES DEPARTMENT[441] (cont’d)

Item 2. Amend rule 441—75.5(249A) as follows: d. Spouses institutionalized and living apart. Members Amend subrule 75.5(2), paragraphs “a,” “b,” and “c,” of a married couple Partners in a marriage who are both as follows: institutionalized, although not residing in the same room a. Institutionalized spouse and community spouse. If of the institution, shall be treated as individuals effective there is a community spouse, only the institutionalized the month after the month the members of the couple person’s income shall be considered in determining partners cease living together. If they live in the same eligibility for the institutionalized spouse. facility after six months of continuous residence, they may b. Spouses institutionalized and living together. be considered as a couple for medical assistance effective Members of a married couple Partners in a marriage the first day of the seventh calendar month of continuous who are residing in the same room in a medical institution residency if one partner would be ineligible for medical shall be treated as a couple until the first day of the assistance or would receive reduced benefits by considering seventh calendar month that they reside together them separately or if they choose to be considered together. continuously reside in the facility. The couple may In the month of entry into a medical institution, all continue to be considered as a couple for medical assistance resources of both spouses shall be combined and shall effective the first day of the seventh calendar month of be subject to the resource limit for a married couple. continuous residency if one partner would be ineligible Item 3. Amend subrule 75.15(2) as follows: for medical assistance or receive reduced benefits by 75.15(2) Unless exempt, the transfer of resources will considering them separate individuals or if they choose result in 30 months of ineligibility beginning with the to be considered together. When spouses are treated as month of transfer, or a lesser period determined by a couple, the The combined income of the couple shall dividing the total uncompensated value of resources not exceed twice the amount of the income limit transferred by the average statewide cost of nursing established in subrule 75.1(7). Persons treated together facility services to a private pay resident at the time as a couple for income must be treated togetherfor resources of application. and persons treated individually for income must be The average statewide cost to a private pay resident treated individually for resources. They shall Spouses residing in the same room in a and updated annually for whieh shall eendaet a medical institution may be treated as individuals representative survey of the skilled and intermediate effective the first day of the seventh calendar month. care facilities. The income of each spouse shall not exceed the income For the period from July 1, 1989 1990, through June limit established in subrule 75.1(7). 30, 1999 1991, this average statewide cost shall be c. Spouses institutionalized and living apart. Members $-1,841.12 $2,025.19. of a married couple Partners in a marriage who are both institutionalized, although not residing in the same room Item 4. Amend subrule 75.16(1), paragraph “d,” by of the institution, shall be treated as individuals effective amending subparagraph (2), as follows and rescinding the month after the month the members of the couple and reserving subparagraph (3): partners cease living together. Their income shall be (2) Spouses Both spouses institutionalized and living treated separately for eligibility. If they live in the same together. Client participation for each member of a facility after six months of continuous residence, they may married couple partner in a marriage who are residing be considered as a couple for medical assistance effective in the same room in a medical institution shall be based the first day of the seventh calendar month of continuous on one-half of the couple’s combined income until the residency if one partner would be ineligible for medical when the partners are considered together for eligibility. assistance or receive reduced benefits by considering them L' rtt.TTrt ILa ^ 4- i-U /\ rtrt I .4 ** separate individuals or if they choose to be considered micbti vc Tire inst ui tire sc vciiui caicuuai iiiuulii, cireiiT together. Client participation for each partner who is considered In the month of entry into a medical institution, income individually for eligibility shall be determined individ­ shall not exceed the amount of the income limit ually from each person’s income. established in subrule 75.1(7). [Filed emergency after Notice 6/20/90, effective 7/1/90] Amend subrule 75.5(4), paragraphs “c” and “d,” as [Published 7/11/90] follows: EDITOR’S NOTE: For replacement pages for IAC, see IAC c. Spouses institutionalized and living together. The Supplement, 7/11/90. combined resources of both members of a married couple partners in a marriage who are residing in the same room in a medical institution shall be subject to the resource limit for a married couple until the first of the seventh calendar month that they continuously reside together in the facility. The couple may continue to be ARC 1027A considered as a couple for medical assistance effective with the seventh month if one partner would be ineligible for HUMAN SERVICES medical assistance or would receive reduced benefits by DEPARTMENT[441] considering them separately or if they choose to be Adopted and Filed Emergency After Notice considered together. Persons treated together as a couple 0 for resources must be treated together for income and Pursuant to the authority of Iowa Code section 249A.4 persons treated individually for resources must be treated and 1990 Iowa Acts, Senate File 2435, section 38, the individually for income. Effective the first of the seventh Department of Human Services hereby amends Chapter calendar month of continuous residence, they shall may 79, “Other Policies Relating to Providers of Medical and be treated as individuals, with the resource limit for each Remedial Care,” appearing in the Iowa Administrative spouse the limit for a single person. Code. IAB 7/11/90 FILED EMERGENCY 65

HUMAN SERVICES DEPARTMENT[441] (cant’d)

The Council on Human Services adopted this rule June physician with staff privileges at the hospital to perform 13, 1990. Notice of Intended Action regarding this rule nonemergency obstetric procedures. was published in the Iowa Administrative Bulletin on The disproportionate share payment add-on is estab­ May 2, 1990, as ARC 851A. This amendment adopts lished as a minimum payment of -LOO 2.50 percent of only that part of the rule placed under Notice dealing the hospital’s blended base cost per discharge plus add­ with disproportionate share. [79.1(5)“e” See also ARC ons. The scale increases L00 2.50 percent for each 1065A herein.] standard deviation above the mean Medicaid utilization The Seventy-third General Assembly in 1990 Iowa rate for hospitals receiving Medicaid payments in the Acts, Senate File 2435, section 2, subsection 8, provided state. that, effective July 1, 1990, the differential reimburse­ Hospitals that qualify for disproportionate share ment amount paid to hospitals which provide a dispro­ payments under both the low-income utilization and the portionate share of care to Medicaid recipients shall be Medicaid utilization guidelines shall qualify for increased by 2.5 times the amount paid to hospitals on disproportionate share payment under the Medicaid June 30, 1990. Therefore, this amendment increases the utilization payment scale. add-on rate being paid for disproportionate share from Hospitals that qualify for disproportionate share 1 percent for every standard deviation above the mean payments under the low-income utilization guidelines to 2.50 percent for every standard deviation above the and do not qualify under the Medicaid utilization mean. guidelines shall be paid the minimum payment as The Department finds that 1990 Iowa Acts, Senate established in under the Medicaid utilization payment File 2435, section 38, allows this amendment to be scale. effective immediately upon filing, unless a later effective Out-of-state hospitals serving Iowa Medicaid patients date is specified. Therefore, this amendment is filed qualify for disproportionate share payment based on the pursuant to Iowa Code section 17A.5(2)“b”(l). definition established by their state’s Medicaid agency This rule is identical to that filed under Notice of fee agency’s calculation of the Medicaid inpatient Intended Action. utilization rate. Payment is through the Iowa Medicaid This rule is intended to implement Iowa Code section utilization payment scale based on the number of 249A.4 and 1990 Iowa Acts, Senate File 2435, section standard deviations greater than the hospital’s own state 2, subsection 8. average Medicaid utilization rate. This rule became effective July 1,1990. [Filed emergency after Notice 6/14/90, effective 7/1/90] The following amendment is adopted: [Published 7/11/90] Amend subrule 79.1(5), paragraph “e,” subparagraph (3), as follows: EDITOR’S Note: For replacement pages for IAC, see IAC (3) Disproportionate share adjustment. Compensation Supplement, 7/11/90: for a disproportionate share of indigent patients is included in the rate table listing if applicable to the amount plus add-ons prior to setting the final payment rate. Hospitals qualify for disproportionate share payments based on information contained in the hospital’s available 1985 1988 audited financial state­ ment submitted Medicaid cost report, and other support­ HUMAN SERVICES ing schedules. The disproportionate share add-on is BEPARTMENT[441] determined when the hospital’s low-income .utilization rate, as defined as by the ratio of gross billings for all Adopted and Filed Emergency Medicaid, bad debt, and charity care patients to total Pursuant to the authority of Iowa Code section 249A.4 billings for all patients, is 25 percent or greater. Gross and 1990 Iowa Acts, Senate File 2435, section 38, the billings do not include cash subsidies received by the Department of Human Services hereby amends Chapter hospital for inpatient hospital services. Hospitals also 81, “Intermediate Care Facilities,” appearing in the Iowa qualify for disproportionate share payment when the Administrative Code. hospital’s inpatient Medicaid utilization rate, defined as These rules establish the maximum reimbursement the number of total Medicaid and state indigent patient rate for intermediate care facilities at the 74th percentile care program inpatient days divided by the number of of facility costs as calculated from the June 30, 1990, total inpatient days, exceeds one standard deviation of unaudited compilation of cost and statistical data and the statewide average Medicaid utilization rate. provide that intermediate care facilities shall receive in Children’s hospitals, defined as hospitals with inpatients addition to their approved per diem rate an amount equal predominantly under 18 years of age, receive twice the to $2.50 per day for each Medicaid-eligible resident percentage of inpatient hospital days attributable to identified by the Iowa Foundation for Medical Care as Medicaid patients. meeting criteria to receive special care or services. The Hospitals qualify for disproportionate share payment criteria a resident must meet to need special care are when the hospitals meet the low-income utilization or established. In general, a resident needing special care Medicaid inpatient utilization guidelines defined above is a resident with special needs who requires more care and the hospital has at least two obstetricians who have than that typically offered at the intermediate level of staff privileges at the hospital and who have agreed to care, but whose needs do not require the resident to be provide obstetric services to persons who are entitled at the skilled level of care. to Medicaid for obstetric services. In the case of a hospital These changes were mandated by the Seventy-third located in a rural area as defined in Section 1886 of the General Assembly. The current maximum payment rate Social Security Act, the term “obstetrician” includes any is $40.11. The Department’s budget was based on a 66 FILED EMERGENCY IAB 7/11/90 HUMAN SERVICES DEPARTMENT[441] (eont’d) maximum payment rate of $43.32 for July 1, 1990. It and medical record documentation shall substantiate that is estimated that up to 3000 residents will be identified the indicated services have been provided for the facility as needing special care, with a total cost for fiscal year to receive the special care reimbursement. 1991 of $2,737,028, or $1,007,500 in state funds. a. Residents shall meet the criteria for intermediate care. The Department of Human Services finds that notice b. Residents shall meet the criteria in one of the following and public participation are impracticable because there topic areas to qualify for special care: . is not adequate time to implement the regular rule- (1) Mental status. The resident has a severe cognitive, making process and to carry out 1990 Iowa Acts, Senate perceptual or maladaptive behavior deficit related to an File 2435, section 31, subsection 1, by July 1, 1990. The organic mental disorder, mental illness, mental retarda­ Department has no choice in implementing these tion, or developmental disability. The facility must have provisions which are legislative mandates. Therefore, an individualized plan of care and must document and these amendments are filed pursuant to Iowa Code implement all of the following: section 17A.4(2). 1. Intervention, for the safety of the resident to include These rules are also published herein as a Notice of frequent visual monitoring at a minimum of every 30 Intended Action, ARC 1033A, to allow for public minutes. comment. 2. Referral to a qualified mental retardation profes­ The Department finds that 1990 Iowa Acts, Senate sional or qualified mental health professional on a File 2435, section 38, allows these amendments to be quarterly basis for consultation. effective immediately upon filing, unless a later effective 3. Twenty-four-hour monitoring by licensed professional date is specified. Therefore, these amendments are filed staff on premises. pursuant to Iowa Code section 17A.5(2)“b”(l). (2) Extremity function. The resident has a spica cast. The Council on Human Services adopted these rules The facility must have a plan of care which addresses June 13,1990. the resident’s needs, such as proper body alignment, These rules are intended to implement Iowa Code repositioning every two hours, monitoring of pressure section 249A.4 and 1990 Iowa Acts, Senate File 2435, points, circulation, and edema, and observation for signs section 31, subsection 1. and symptoms of infection. These rules became effective July 1, 1990. (3) Bowel and bladder status. The resident receives The following amendments are adopted: continuous ambulatory peritoneal dialysis (CAPD) Item 1. Amend rule 441—81.3(249A) as follows: performed by licensed nurses in a distinct or freestanding nursing facility as ordered by the physician, and the 441—81.3(249A) Initial approval for intermediate resident does not require skilled level of care. The plan LdlCan ma 1UC111 Ij nnnnCULvt of care must provide all of the following: 81.3(1) Certification of need. Residents of intermediate 1. Registered nurse assessment at least once every 24 care facilities shall be certified as needing either hours. intermediate care or special care. Payment will be made 2. Daily intake and output. for intermediate care facility care residents only upon 3. Daily weights. certification of the need for the level of care by a licensed 4. Weekly monitoring of vital signs, lung and bowel physician of medicine or osteopathy and approval by the sounds. Iowa foundation for medical care. Payment will be made (4) Drug therapy. The resident has blood glucose levels for special care residents upon certification of the need regulated by sliding-scale insulin at least two to four times for the level of care by the Iowa foundation for medical daily per written physician’s orders. If the resident care according to the criteria listed in subrule 81.3(4). remains stable on this regimen for 30 days, intermediate 81.3(2) Reserved. care maybe indicated. 81.3(3) Screening. All persons, regardless of the source (5) Psychosocial. The resident is at high risk for transfer of payment, seeking admission to an intermediate care trauma as evidenced by all of the following conditions: facility must also be screened by the Iowa foundation 1. An involuntary move or transfer will be imposed on for medical care to determine if mental illness, mental a resident within the next two weeks and limited options retardation, or a related condition is present. The Iowa are available. Medicaid program will cover the cost of this screening. 2. The resident has not been prepared for a sudden move Final approval for initial admissions and continued which involves a radical change in environment. stay of persons with mental illness, mental retardation, 3. The resident is at high risk due to the resident’s or a related condition is determined by the department dependence on others as evidenced by a sudden onset of of human services, division of mental health, mental illness, confusion and disorientation, chronic illness, retardation and developmental disabilities. terminal illness, permanent disability, disability, Intermediate care facility payment under the Iowa disfiguring or handicapping condition, suicidal tenden­ Medicaid program will be made for persons with mental cies, mental retardation, acting out or extremely passive illness, mental retardation, or a related condition only behavior or very old age (greater than 80 years). if it is determined by the division of mental health, mental Social services are provided under the direction of a retardation and developmental disabilities that the qualified social worker and include each of the following: person’s treatment needs will be or are being met. provision of two or three choices for alternate placement, 81.3(4) Special care level of need. The Iowa foundation opportunity for the resident to visit the alternate placement for medical care shall review each facility every 60 days site two or three times, and the social worker from the to determine which residents are eligible for the special transferring facility will contact the resident at the new care payment. Residents must meet the criteria specified residence within 24 hours after admission and will make in subrule 81.3(4), paragraph “a” and paragraph “b” or one additional contact within two weeks. Documentation “c” at time of admission review or for SO consecutive days substantiates the need for and provision for all of the except for psychosocial transfer trauma (See 81.3(4)“b”(5) services above. Payment is limited to 14 days. IAB 7/11/90 FILED EMERGENCY 67

HUMAN SERVICES DEPARTMENT[441] (cant’d)

c. Residents shall meet the criteria in two or more of be reassessed quarterly to evaluate the resident’s progress the following topic areas to qualify for special care: towards goats and changes in approaches must be made (1) Mobility. The resident is totally bedfast, quadriplegic as appropriate to foster goal completion. or requires three or more staff for transfers. A plan of ' (5) Nutritional status. The resident with mental care shall address the resident’s needs as follows: retardation or a developmental disability requires daily 1. Repositioning at least every two hours. facility implementation of a step-by-step approach 2. The use of pressure relieving agents such as developed under consultation of a qualified mental sheepskins, or flotation, or air mattresses. retardation professional. The resident exhibits an 3. Inspection of skin status at least twice daily. inappropriate pattern of eating including rate of eating 1+. Daily passive range of motion to affected extremities. and drinking, the size of bites, stealing food or eating off 5. Maintenance of proper body alignment. the table, lap, or floor. Facility staff under the direction (2) Skin status. The resident has a stage II noninfected of a licensed nurse will teach or reteach eating skills and pressure ulcer, skin lesion, or postoperative wound table manners including, but not limited to, appropriate present, which requires treatment prescribed by the use of all utensils, adaptive devices, and napkins. The attending physician (e.g., use of prescription medications goals must be reassessed quarterly to evaluate the resident’s and dressings, using clean technique) on at least a daily progress towards goals and changes in approaches must basis. The implemented plan of care shall include all of be made as appropriate to foster goal completion. the following: (6) Speech and language. The resident with mental 1. Weekly assessment and documentation noting the retardation or a developmental disability requires daily location, size, and amount of drainage, inflammation or facility implementation of a step-by-step approach necrosis. developed under consultation of a qualified mental 2. Repositioning at least every two hours and measures retardation professional. Facility staff under, the direction to relieve pressure are to be utilized. of a licensed nurse will teach or reteach speech and (3) Bowel and bladder status. The resident who is language skills under a plan developed by a certified mentally retarded or who has a developmental disability speech and language pathologist familiar with mental requires daily facility implementation of a step-by-step retardation and developmental disability services. approach developed under consultation with a qualified Services include, but are not limited to, sound imitation, mental retardation professional. Facility staff under the simple phrases and sentences, communication-board, direction of a licensed nurse will teach or reteach toileting signing, object identification, and common sign language skills including, but not limited to, appropriate scheduling identification. The goals must be reassessed quarterly to to prevent incontinence, wiping, flushing, hand washing. evaluate the resident’s progress towards goals and changes The goals must be reassessed quarterly to evaluate the in approaches must be made as appropriate to foster goal resident’s progress toward goals and changes in completion. approaches must be made as appropriate to foster goal (7) Education. The resident requires an educational completion. program (identified as a need through the mental illness (1+) Activities of daily living. The resident meets one of and mental retardation screening process) with individ­ the following criteria: ual or group instruction for 30 minutes at least three times 1. The resident is totally dependent on the nursing staff per week to learn about the resident’s mental illness, to provide all of the following: bathing, dressing, personal psychotropic medications, or increase coping skills. This hygiene, hair care and feeding. The resident is confused instruction is provided by facility staff and is designed or unresponsive, totally involuntary of bowel function and to enhance compliance and increase habilitation for is incontinent of urine or an indwelling catheter is in discharge to a lower level of care. place. The resident is nonambulatory and requires daily This rule is intended to implement Iowa Code sections passive range of motion to all extremities (unless passive 249A.2(6) and, 249A.3(2)“ar,” 21+9A. 1+ and 1990 Iowa Acts, range of motion is contraindicated by physician’s order). Senate File 21+35, section 31, subsection 1. The resident’s condition is medically stable. Item 2. Amend subrule 81.6(16), paragraph “e,” as 2. The resident is alert and oriented and has a specific follows: progressive debilitating disease which requires total dependence on the nursing staff to provide all of the e. Beginning July 1, 1989 1990, the basis for estab­ following: bathing, dressing, personal hygiene, hair care lishing the maximum reimbursement rate for interme­ and feeding. The resident is also totally involuntary of diate care facilities shall be the seventy-fourth percentile bowel function and incontinent of urine or an indwelling of participating facilities’ per diem rates as calculated catheter is in place. The resident is nonambulatory and from the June 30, 1989 1990, report of “unaudited requires daily passive range of motion to all extremities compilation of various costs and statistical data.” (unless passive range of motion is contraindicated by Intermediate care facilities shall receive, in addition to physician’s order). Examples: Huntington’s chorea, their approved per diem rate, an amount equal to $2.50 advanced multiple sclerosis, amyotrophic lateral sclero­ per day for each Medicaid-eligible resident identified by sis. The resident with mental illness, mental retardation the Iowa foundation for medical care as meeting criteria or a developmental disability as defined in rule 1+1+1— to receive special care or services as long as the resident 22.1(225C) requires daily facility implementation of a meets the criteria and thefaeility is providing the special step-by-step approach developed under consultation of a care. This additional rate is not subject to the ceiling. qualified mental retardation professional. Facility staff ITEM 3. Amend rule 441—81.10(249A) as follows: under the direction of a licensed nurse will teach or reteach Amend subrule 81.10(4) by adding the following new any of the following skills: dressing and undressing; paragraph: bathing, washing, and drying (includes body and hair); h. Payment for special care to residents who are absent and hygiene and grooming (may include shaving, from the facility for visitation or hospitalization shall deodorant, makeup, nail care, oral care). The goals shall be at the same rate as established in 81.10(4)“f.” 68 FILED EMERGENCY IAB 7/11/90 HUMAN SERVICES DEPARTMENT[441] (cant’d)

Amend subrule 81.10(6) as follows: This rule became effective June 14,1990. 81.10(6) Payment for out-of-state care. Payment will The following amendment is adopted: be made for care in out-of-state intermediate care Amend subrule 83.2(1), paragraph “b,” as follows: facilities. Out-of-state providers will be reimbursed at b. The person must be ineligible for medical assistance the same intermediate care facility rate they are under other Medicaid programs or coverage groups7 with receiving from their state of residence or the Iowa the exception of the medically needy program, and the maximum, whichever is lower. Payment for special care cases approved by the intradepartmental board for shall not be applicable for residents in out-of-state facilities supplemental security income deeming determinations, who meet the criteria for special care. and children eligible for supplemental security income Item 4. Amend the implementation clause at the end under Section 8010 of Public Law 101-239. of rules 81.6(249A) and 81.10(249A) by adding the [Filed emergency 6/13/90, effective 6/14/90] following: [Published 7/11/90] 1990 Iowa Acts, Senate File 2435, section 31, subsection EDITOR’S NOTE: For replacement pages for IAC, see IAC 1. Supplement, 7/11/90. [Filed emergency 6/19/90, effective 7/1/90] [Published 7/11/90] EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement, 7/11/90. ARC 1019A HUMAN SERVICES ARC 1015A DEPARTMENT[441] HUMAN SERVICES Adopted and Filed Emergency DEPARTMENT[441] Pursuant to the authority of Iowa Code section 234.6 Adopted and Filed Emergency and 1990 Iowa Acts, Senate File 2435, section 38, the Department of Human Services hereby amends Chapter Pursuant to the authority of Iowa Code section 249A.4, 130, “General Provisions,” and Chapter 153, “Social the Department of Human Services hereby amends Services Block Grant,” appearing in the Iowa Adminis­ Chapter 83, “Medicaid Waiver Services,” appearing in trative Code. the Iowa Administrative Code. These amendments implement two changes in admin­ Section 8010 of Public Law 101-239 allows the Social istration of the child day care program as mandated by Security Administration to exclude the income and the Seventy-third General Assembly. resources of parents when determining eligibility for First, monthly gross income guidelines for child day Supplemental Security Income (SSI) for certain children care services are increased to 150 percent of the current with disabilities effective June 1, 1990. The child must federal poverty guidelines. be eligible for Medicaid under a Medicaid state home Second, the procedures for allocation and reallocation plan (the Home and Community-Based Model Waiver of child day care funds are revised to provide for in Iowa), have received SSI in a medical institution at allocation of funds first to the districts and then to the some time, be under age 18, and be otherwise ineligible counties by the districts and to remove obsolete dates. for SSI due to parental income or resources. The Department of Human Services finds that notice Currently, rules for the Model Waiver require that and public participation are impracticable because there the person be ineligible for medical assistance under is not adequate time to implement the regular rule- other Medicaid programs or coverage groups. This making process and to carry out 1990 Iowa Acts, Senate amendment will provide that children eligible for SSI File 2435, section 6, by July 1, 1990. Therefore, these under Section 8010 of Public Law 101-239 remain eligible amendments are filed pursuant to Iowa Code section for the Model Waiver. 17A.4(2). The Department of Human Services finds that notice These amendments are also published herein as a and public participation are impracticable because there Notice of Intended Action, ARC 1020A, to allow for is not time to implement this change by the required public comment. statutory date of June 1,1990. The Department received The Department finds that 1990 Iowa Acts, Senate instructions regarding implementation of this provision File 2435, section 38, allows these amendments to be in a letter from the Department of Health and Human effective immediately upon filing, unless a later effective Services dated May 16,1990. Therefore, this amendment date is specified. Therefore, these amendments are filed is filed pursuant to Iowa Code section 17A.4(2). pursuant to Iowa Code section 17A.5(2)“b”(l). The Department finds that this rule confers a benefit The Council on Human Services adopted these on the children and families involved by allowing them amendments June 13,1990. to remain eligible for the services available under the These rules are intended to implement Iowa Code Model Waiver program which are not available to all section 234.6 and 1990 Iowa Acts, Senate-File 2435, Medicaid recipients. Therefore, this amendment is section 6, subsection 3. filed pursuant to Iowa Code section 17A.5(2)“b”(2). These rules became effective July 1,1990. The Council on Human Services adopted this rule June The following amendments are adopted: 13, 1990. This rule is intended to implement Iowa Code section Item 1. Amend subrule 130.3(1), paragraph “d,” 249A.4. subparagraph (2), as follows: IAB 7/11/90 FILED EMERGENCY 69 HUMAN SERVICES DEPARTMENTS 1] (cord’d)

(2) Income eligible status. The monthly gross income The Seventy-third General Assembly enacted the according to family size is no more than the following following changes in the Resource and Referral Grants amounts: program: For Child Day Care: All Other Services: 1. The program is now to be used only to fund child Monthly Monthly Gross day care resource and referral grants, not dependent Family size Gross Income Income Below adult care resource and referral grants. 2. The list of services which an agency may provide 1 Member 8 748 $ 785 $ 518 2 Members 1,053 677 is expanded to include referral of eligible facilities to 3 Members 1,320 837 the federal child care program; loan of toys, other 1 gyo 4 Members 1,910 1,588 995 equipment and resource materials to facilities; assisting 5 Members 1703 1,855 1,154 the department in providing facilities with opportunities 6 Members 2 023 2,123 1,313 for group purchasing of equipment and supplies; and 7 Members 2 27S 2,390 1,342 administering funding designated within the grant to 8 Members 2 2,658 1,373 2 723 provide a substitute caregiver program for registered 9 Members 2,925 1,404 family and group day care homes. 10 Members 3 3,193 1,432 3. Grants shall be awarded to facilitate the establish­ For child day care, when a family has more than ten ment of resource and referral agencies throughout the members, add $266 $268 for each additional member. state, based upon the distribution of the child population For other services, for each additional person add 3 in the state. percent of the amount for a family of four to the ten- 4. The Department is required to annually evaluate member amount. agencies awarded a grant. These amendments incorporate the above changes and Item 2. Amend subrule 153.5(6) as follows: correct several incorrect references. The appropriation 153.5(6) Twenty-five percent of state child day care for resource and referral grants was increased from assistance funds shall be allocated to counties districts $250,000 to $500,000. based upon the number of children living in a county The Department of Human Services finds that notice district whose family income is at or below 150 percent and public participation are impracticable because there of poverty guidelines published by the Department of is not adequate time to allow for public comment and Health and Human Services. Seventy-five percent of the implement the changes mandated by the July 1, 1990, funds shall be allocated to eounties districts based upon effective date of the statute. Therefore, these amend­ the department’s estimate of a eeanty^s district’s ments are filed pursuant to Iowa Code section 17A.4(2). expenditures for child day care assistance during the These rules are being placed under Notice to allow for public comment as ARC 1024A, herein. previous fiscal year which ended Jane 8671989. The funds The Department finds that these rules confer a benefit allocated The district shall distribute funds to a each on the agencies involved by conforming rules to match county in the district shall act be less than in an amount the statute and eliminating possible sources of confusion. which is at least equal to the county’s allocation of funding Therefore, these amendments are filed pursuant to Iowa for protective and state child day care assistance in the Code section 17A.5(2)“b”(2). previous fiscal year whieh ended June 8O71989. However, The Council on Human Services adopted these rules if the district determines that funds remaining in a county June 13,1990. are sufficient to meet current demand and projected These rules are intended to implement 1990 Iowa Acts, growth, the department district may transfer excess funds House File 2546, section 4. which are net used by a eounty to a another county in These rules became effective July 1,1990. whieh there is a demonstrated need. If the department The following amendments are adopted: determines that funds remaining in a district will be Item 1. Amend 441—Chapter 159, Title and Pream­ sufficient to meet current demand and projected growth, ble, as follows: the department may transfer excess funds to another CHILD CARE RESOURCE AND REFERRAL district. GRANTS PROGRAM [Filed emergency 6/14/90, effective 7/1/90] Preamble [Published 7/11/90] These rules define and structure the resource and Editor’s NOTE: For replacement pages for IAC, see IAC referral grants program. This program shall make Supplement, 7/11/90. grants available for the development and operation of resource and referral services for child care anti

ITEM 2. Amend rule 441—159.1(72GA,HF2447), ARC 1023A definition of “Grant review committee,” as follows: HUMAN SERVICES “Grant review committee” means a five-member body designated by the chief of the bureau of adult children DEPARTMENT[441] and family 3ervicc3 individual and family support and Adopted and Filed Emergency protective services, to review and rate submitted Pursuant to the authority of Iowa Code section 234.6, applications and make its recommendations for grant the Department of Human Services hereby amends funding to the department. Chapter 159, “Resource and Referral Grants Program,” ITEM 3. Amend rule 441—159.2(72GA,HF2447) as appearing in the Iowa Administrative Code. follows: 70 FILED EMERGENCY IAB 7/11/90 HUMAN SERVICES DEPARTMENT[441] (cont’d)

441—159.2(72GA,HF2447) Availability of grants. In Item 5. Amend subrule 159.4(1) and subrule 159.4(2), any year in which funds are available for resource and introductory paragraph, as follows: referral grants, the department shall administer grants 159.4(1) The director will announce through public to eligible applicants. The amount of each grant shall notice the opening of an application period. Applicants be contingent upon the funds available and shall not for grants shall request Form 470-2474, “Child Care exceed $50,000. The department shall work with all new Resource and Referral Grant Application,” and shall and existing resource and referral agencies to extend these submit a grant proposal using this form by the deadlines services to all regions of the state. specified in the announcement. The department reserves the right to grant less than 159.4(2) Requirements for project proposals are the amount of appropriated funds if there is an specified on the “Child Care Resource and Referral Grant insufficient number of acceptable applications submitted Application.” If a proposal does not contain the to adequately achieve the purpose of the resource and information specified in the application package or if referral grants program. it is late, it shall be disapproved. Proposals shall contain ITEM 4. Amend rule 441—159.3(72GA,HF2447) as the following information: follows: Item 6. Amend rule 441—159.6(72GA,HF2447) as Rescind subrule 159.3(1) and insert the following in follows: lieu thereof: 441—159.6(72GA,HF2447) Project contracts. The 159.3(1) Grants will be awarded to community-based funds for approved applications shall be awarded nonprofit incorporated agencies and public agencies that through a contract entered into by the commissioner have the capacity to provide the following services: director and the applicant. The contract period shall not a. Assist families in selecting quality child care. The exceed the state fiscal year in which the contract is agency shall provide referrals to registered and licensed awarded. The state fiscal year is from July 1 to June child day care facilities and may provide referrals to 30. Expenditures shall be reimbursed monthly pursuant unregistered providers. to regular reimbursement procedures of the state of Iowa. b. Assist child day care providers in adopting appropriate program and business practices to provide Item 7. Amend rule 441—159.8(72GA,HF2447) as quality child care services. follows: c. Provide information to the public regarding the 441—159.8(72GA,HF2447) Evaluation. The depart­ availability of child day care services in the communities ment may shall evaluate the provider at least once prior within the agency’s region. to the end of the contract year to determine how well d. Actively encourage the development of new and the purposes and goals are being met. Funds are to be expansion of existing child day care facilities in response spent to meet program goals as provided in the contract. to identified community needs. The provider will receive a written report of the e. Provide specialized services to employers, including evaluation. the provision of resource and referral services to employee groups identified by the employer and the Item 8. Amend rule 441—159.10(72GA,HF2447), provision of technical assistance to develop employer- introductory paragraph, as follows: supported child day care programs operated on or near 441—159.10(72GA,HF2447) Appeals. Applicants the work site. dissatisfied with the eommiaskmer^ director’s decision f. Refer eligible child day care facilities to the federal may file an appeal with the commissioner director. The child care food programs. letter of appeal must be submitted within ten working g. Loan toys, other equipment, and resource materials days of the notice of decision and must include a request to child day care facilities. for the commissioner director to review the decision and h. Inform child day care facilities regarding technical the reasons for dissatisfaction. The amount of the grant assistance available from the department in obtaining award cannot be appealed. Within ten working days of insurance coverage at a reasonable cost. the receipt of the appeal the commissioner director will i. Assist the department in providing child day care review the appeal request and issue a final decision. facilities with opportunities for group purchasing of Item 9. Amend the implementation statute following equipment and supplies. each rule in 441—Chapter 159 by striking j. Administer funding designated within the grant to “(72GA,HF2447)” and inserting “(73GA,HF2546)”. provide a substitute caregiver program for registered family and group day care homes. Item 10. Amend the implementation clause at. the end Amend subrules 159.3(2) and 159.3(5) as follows: of 441—Chapter 159 as follows: 159.3(2) Grants will be awarded to eligible agencies These rules are intended to implement 1988 Iowa Aets; for the establishment of new child care resource and House File 2447, section 48 1990 Iowa Acts, House File referral agencies and on-going operation of existing child 25U6, section U. care resource and referral agencies. 159.3(5) There shall be an advisory or incorporated [Filed emergency 6/14/90, effective 7/1/90] board specifically for the child care resource and referral [Published 7/11/90] services representative of the child care community, EDITOR’S NOTE: For replacement pages for IAC, see IAC parent consumers of services, public education, adult Supplement, 7/11/90. education, private sector organizations, business and industry. IAB 7/11/90 FILED EMERGENCY 71

ARC 1021A effective immediately upon filing, unless a later effective date is specified. Therefore, these amendments are filed HUMAN SERVICES pursuant to Iowa Code section 17A.5(2)“b”(l). The Council on Human Services adopted these DEPARTMENT[441] amendments June 13,1990. Adopted and Filed Emergency These rules are intended to implement 1990 Iowa Acts, Pursuant to the authority of Iowa Code section 217.6 Senate File 2435, section 16. and 1990 Iowa Acts, Senate File 2435, section 38, the These rules became effective July 1, 1990. Department of Human Services hereby amends Chapter The following amendments are adopted: 163, “Adolescent Pregnancy Prevention and Services to Item 1. Amend subrule 163.3(3), paragraphs “a” and Pregnant and Parenting Adolescents Program,” appear­ “b,” as follows: ing in the Iowa Administrative Code. a. Workshops and information programs for adoles­ The Seventy-third General Assembly appropriated cents and parents of adolescents to improve communi­ $523,500 to continue to provide grants for adolescent cation between adolescents children and parents pregnancy prevention and services to areas of the state regarding human sexuality issues. with a high incidence of adolescent pregnancy. At least b. Development and distribution of informational 75 percent of these grant funds shall be awarded to material designed to discourage adolescent sexual projects located in the seven Iowa counties with the activity, to provide information regarding acquired greatest number of live births occurring to persons under immune deficiency syndrome and sexually transmitted 18 years of age. The scope of the services to be provided diseases, and to encourage male and female adolescents under these grants was expanded to include the to assume responsibility for their sexual activity and development and distribution of informational material parenting. designed to provide information regarding acquired Item 2. Amend rule 441—163.3(73GA,SF2435) by immune deficiency syndrome and sexually transmitted adding the following new subrule: diseases. 163.3(5) Grants for the following purposes will be In addition, the General Assembly appropriated an administered in accordance with the provisions for additional $250,000 to provide adolescent pregnancy adolescent pregnancy prevention grants, except for grants not targeted to geographical locations of the state requirements to target certain specific geographic areas for the following purposes: of the state: 1. Programs targeted to children which include the a. Programs targeted to children. A program must following: components for parental involvement; paren­ include the following: components for parental involve­ tal. education, including techniques for encouraging ment; parental education, including techniques for sexual abstinence; outreach services for recruiting encouraging sexual abstinence; outreach services for parents and children into the program; and the provision recruiting parents and children into the program; and of transportation to program staff and participants the provision of transportation to program staff and necessary for recruiting and encouraging program participants necessary for recruiting and encouraging participation. program participation. 2. Programs intended to prevent an additional b. Programs intended to prevent an additional pregnancy by a parent who is less than 19 years of age. pregnancy by a parent who is less than 19 years of age. Preference in grant awards shall be given to programs Preference in grant awards shall be given to programs which provide financial incentives to clients for their which provide financial incentives to clients for their program participation and success in avoiding an program participation and success in avoiding an additional pregnancy. additional pregnancy. 3. Providing additional pregnancy prevention grants. c. Providing additional pregnancy prevention grants. Preference in grant awards shall be given to programs Preference in grant awards shall be given to programs which, in addition to other services, provide counseling which, in addition to other services, provide counseling to mixed gender groups of adolescents. to mixed gender groups of adolescents. These amendments implement those changes. The Department of Human Services finds that notice Item 3. Strike the parenthetical implementation and public participation are impracticable because there following each rule in 441—Chapter 163 and insert in is not adequate time to implement the regular rule- lieu thereof “(73GA,SF2435)”. making process and to carry out 1990 Iowa Acts, Senate Item 4. Amend the implementation clause at the end File 2435, section 16, by July 1, 1990. The Department of 441—Chapter 163 as follows: has no choice in implementing these provisions which These rules are intended to implement 1989 Iowa Acts; are legislative mandates. Therefore, these amendments Senate File 641; section 45 1990 Iowa Acts, Senate File are filed pursuant to Iowa Code section 17A.4(2). 21f35, section 16. These amendments are also published herein as a [Filed emergency 6/14/90, effective 7/1/90] Notice of Intended Action, ARC 1022A, to allow for [Published 7/11/90] public comment. The Department finds that 1990 Iowa Acts, Senate Editor’s NOTE: For replacement pages for IAC, see IAC File 2435, section 38, allow these amendments to be Supplement, 7/11/90. 72 FILED EMERGENCY IAB 7/11/90

ARC 1016A “Grant review committee” means a committee appointed by the director ef the Iowa department ef HUMAN SERVICES human services chief of the bureau of individual and family support and protective services. DEPARTMENT[441] Further amend rule 441—168.1(73GA,SF541) by Adopted and Filed Emergency rescinding the definition of “Training,” and adding the Pursuant to the authority of Iowa Code section 234.6 following new definition: and 1990 Iowa Acts, House File 2546, sections 6 and “County board” means the county board of social 12, the Department of Human Services hereby amends welfare. Chapter 168, “Child Day Care Grants Program,” Item 3. Amend rule 441-168.2(73GA,SF541) as appearing in the Iowa Administrative Code. follows: The Seventy-third General Assembly in 1990 Iowa Acts, House File 2546, placed most of the administration 441—168.2(73GA,SF541) Availability of grants. In of the Child Day Care Grants back with the County any year in which funds are available for child day care Boards of Social Welfare.The Legislature appropriated grants, the department or the county board shall $683,548 to the 99 counties to be administered by the administer grants to eligible applicants. The amount of County Boards of Social Welfare;$50,000 to be held in each grant shall be contingent upon the funds available the Department for start-up grants to child day care and shall not exceed $10,000. facilities located in counties with population of less than The department or the county board reserves the right 20,000 or in cities with a population of less than 5,000; to grant less than the amount of appropriated funds if and an additional $26,452 will be held by the Department there are an insufficient number of acceptable applica­ to match $79,360 in federal grants funds for before and tions submitted to’adequately achieve the purpose of the after school-age programs located in school facilities. child day care grants program. These amendments implement the changes necessary 168.2(l)County boards of social welfare. All eligible to allow for administration of the grants by the county child care facilities and organizations and agencies may boards of social welfare and provide that grants are no apply to the county board of social welfare through the longer available for training costs. In addition, appeal local offices of human services for child day care grants. rules are changed to provide that applicants may not Grants are available for start-up and expansion, fire appeal the amount of the grant award. safety, and equipment. The Department of Human Services finds that notice 168.2(2) Bureau of individual and family support and and public participation are impracticable because there protective services. is not adequate time to implement the regular rule- a. All eligible child care facilities in rural counties with making process and to carry out 1990 Iowa Acts, House a population of less than 20,000 or in cities with a File 2546, section 6, subsection 2, by July 1, 1990. The population less than 5,000 may apply to the bureau of Department has no choice in implementing these individual and family support and protective services for provisions which are legislative mandates. Therefore, start-up and expansion grants. these amendments are filed pursuant to Iowa Code b. All eligible child care facilities located in public or section 17A.4(2). private school facilities may apply to the bureau of These amendments are also published herein as a individual and family support and protective services for Notice of Intended Action, ARC 1017A, to allow for start-up and expansion grants for before and after school- public comment. age children. The Department finds that 1990 Iowa Acts, House File Item 4. Amend rule 441—168.3(73GA,SF541), intro­ 2546, section 12, allows these amendments to be effective ductory paragraph, as follows: immediately upon filing, unless a'later effective date is 441—168.3(73GA,SF541) Project Grant eligibility. specified. Therefore, these amendments are filed Grants will be awarded to any child care facility or pursuant to Iowa Code section 17A.5(2)“b”(l). organization or agency as defined in the chapter that The Council on Human Services adopted these meets all the requirements of this chapter. amendments June 13, 1990. Further amend rule 441—168.3(73GA,SF541)by These rules are intended to implement Iowa Code sections 237A.13 to 237A.18 and 1990 Iowa Acts, House rescinding subrule 168.3(4). File 2546, section 6. Item 5. Amend rule 441—168.4(73GA,SF541) as These rules became effective July 1, 1990. follows: The following amendments are adopted: 441—168.4(73GA,SF541) Request for proposals for Item 1. Amend 441—Chapter 168, Preamble, as project grants grant applications. The director will follows: announce through public notice the opening of an Preamble application period for grants administered by the bureau of individual and family support and protective services. These rules define and structure the child day care The county board will announce through public notice the grants program. This program shall make grants opening of an application period for grants administered available for start-up funding, fire safety, and equip- by the county board. Applicants for grants shall request Form 470-2581, “Child Day Care Grant Application” /% Ln Wrtftn tin oAnuLuia Item 2. Amend rule 441—168.1(73GA,SF541) by TTTtttT tllC LMJl CAU Ut ZtUUlL, LillluiTll, 211111 lalllliy ocrTnXB amending the definitions of “Equipment” and “Grant and shall submit a grant proposal to the bureau using review committee” as follows: this form by the deadlines specified in the announcement “Equipment” means any equipment necessary to respective announcements. programming activities for children or for administra­ tion ef a ehdd eare program. are specified on the “Child Day Care Grant Application.” IAB 7/11/90 FILED EMERGENCY 73

HUMAN SERVICES DEPARTMENT[441] (cant’d)

If a proposal grant application does not contain the 3. Submit a final financial report of expenditures for information specified in the application package or if the fiscal year to the department at the end of the fiscal it is late, it shall be disapproved. year. 4. Submit a progress report on the use of funds when Item 6. Amend rule 441—168.5(73GA,SF541) as follows: requested by the department or the county board. Amend subrule 168.5(1), paragraph “b,” as follows: 5. Keep on file a copy of the final report and all b. Specified project information with a description of corresponding invoices and receipts for five years. the proposed service or program including a time Item 9. Rescind rule 441—168.8(73GA,SF541) and schedule for implementing the proposed project grant. insert the following in lieu thereof: It shall be specific to types of care to be included in 441—168.8(237A) County, board of social welfare the proposed service or programs; infant care (0 to 24 responsibilifies. months); preschool-age care (two years to school age); 168.8(1) The deadline date for submittal of applica­ school-age care; or, other specialized care such as tions established by the county board shall be between therapeutic child care or drop-in-get-well center care. August 1 and January 1 of the fiscal year for which the Amend subrule 168.5(2), introductory paragraph, and funds are appropriated. paragraph “b,” introductory paragraph, as follows: 168.8(2) The county board shall submit two copies of 168.5(2) Fire safety; and equipment; and training all approved applications to the district office of the grants. department within 30 days following the deadline b. Specific information as to fire safety; and equipment; established by the board. or training being required in the grant. 168.8(3) The county board shall submit two copies of Further amend subrule 168.5(2), paragraph “b,” by all approved applications for reallocated funds to the rescinding subparagraph (3). district office of the department by June 15 of the fiscal Item 7. Rescind subrule 168.6(2) and insert the year for which the funds are appropriated. following in lieu thereof: ITEM 10. Rescind rule 441—168.9(73GA,SF541) and 168.6(2) Selection criteria. All proposals received by insert the following in lieu thereof: the county board of social welfare shall be reviewed by that board. All proposals received by the bureau of 441—168.9(237A) Unencumbered funds. Any funds individual and family services and protective services unencumbered as of April 30 of any year shall be shall be reviewed by a grant review committee. The order reclaimed and redistributed among counties that have of priority is as follows: start-up or expansion, fire safety, used all of the funds allocated to them. However, funds and equipment. unencumbered shall not be reallocated unless the a. The following factors shall be considered for all grant unencumbered funds reclaimed exceed $5000. applications: ITEM 11. Amend rule 441—168.12(73GA,SF541) as (1) The demonstrated need for child care services in follows: the community served by the facility. (2) The proportion of low-income families among all 441—168.12(73GA,SF541) Appeals. families served by the facility. 168.12(1) Applicants dissatisfied with the director’s (3) The demonstrated need for start-up, fire safety, or decision may file an appeal with the director. The letter equipment. of appeal must be submitted within ten working days (4) The manner in which the facility derives its support of the notice of decision and must include a request for other than tuition or fees paid by the parents or guardians the director to review the decision and the reasons for of the children served by the facility. dissatisfaction. The amount of the grant award cannot b. The following additional factors shall be considered be appealed. Within ten working days of the receipt of for start-up and expansion grant applications: the appeal the director will review the Appeal request (1) Community support. and issue a final decision. (2) Program structure and quality of the proposal. 168.12(2) Any organization or agency which serves day (3) The plan for using the funds. The funds may be care facilities and any licensed or registered facility that used for salaries, fringe benefits, materials, equipment has been aggrieved by a decision of a county board under and operational expenses. Funds may also be used for Iowa Code section 287A. 17 and this chapter may request remodeling to meet licensing requirements, but they may a fair hearing. The amount of the grant award cannot not be used otherwise for construction, capital improve­ be appealed. The request shall be in writing and submitted ment or purchase of real estate. No more than 5 percent to the department’s local or district office. When the request of the total project costs may be used for administrative is filed within ten working days after the notice is mailed, costs. a hearing shall be granted pursuant to rules in UU1- Chapter 7. Appeals filed after a ten-working-day-limit Item 8. Rescind rule 441—168.7(73GA,SF541) and shall be considered untimely and not granted a hearing. insert the following in lieu thereof: a. The county board shall direct the local office of the 441—168.7(237A) Grant contracts. The approved department to send the appropriate notice of the action “Child Day Care Grant Application,” Form 470-2581, taken by the county board to all applicants according to shall serve as the contract between the department and subrule 7.1(H). the applicant. The applicant receiving funds under these b. No disbursements will be made to any facility or rules shall: organization following issue of notice for a period of ton 1. Use the funds only as prescribed in the application working days. If an appeal is filed within the ten working and approved by the department or the county board. days, all disbursements in the county in which the appeal 2. Return any unused funds to the department that was filed will be held pending a final decision on the remain unused or unencumbered by June 30. appeal. All facilities involved will be notified if an appeal 74 FILED EMERGENCY IAB 7/11/90

HUMAN SERVICES DEPARTMENTJ441] (cont’d)

is filed and given the opportunity to be included as a party The Industrial Commissioner adopted this rule on June in the appeal. 19, 1990. Item 12. Further amend 441—Chapter 168 by adding Notice of Intended Action is published herein as ARC the following new rule: 1031A to solicit public comment on the rule. This rule implements Iowa Code sections 86.8 and 86.13 441—168.13(237A) Return of equipment. The county and 1990 Iowa Acts, Senate File 2328. board may require the return of any movable equipment Amend 343—Chapter 4 by adding the following new purchased within the last three years with funds awarded rule: under this chapter when a child care facility’s registra­ tion or license is terminated. Returned equipment shall 343—4.40(73GA,SF2328) Dispute resolution. The be redistributed to other child care facilities. industrial commissioner or the industrial commissioner’s designee (hereinafter collectively referred to as the ITEM 13. Strike the parenthetical implementation industrial commissioner) shall have all power reasonable following each rule in 441—Chapter 168 and insert in and necessary to resolve contested cases filed under lieu thereof “(237A)”. Chapter 4 of these rules. This power includes, but is Item 14. Amend the implementation clause at the end not limited to, the following: the power to resolve matters of 441—Chapter 168 to read as follows: pursuant to initiation of mandatory dispute resolution These rules are intended to implement Iowa Code proceedings by the industrial commissioner; the power section sections 234.6 and 237A.13 to 237A.18 and 1989 to resolve matters pursuant to a request by the parties; Iowa Ae-ts, Senate File 644t sections 6 and 39 1990 Iowa the power to impose sanctions; and the power to require Acts, House File 2546, section 6. conduct by the parties. However, no issue in a contested case may be finally resolved under this rule without [Filed emergency 6/14/90, effective 7/1/90] consent of the parties. . [Published 7/11/90] An employee of the division of industrial services who Editor’s Note: For replacement pages for IAC, see IAC has been involved in dispute resolution shall not be a Supplement, 7/11/90. witness in any contested case proceeding under this chapter. 4.40(1) Mandatory proceedings. The industrial commissioner may require that the parties participate in dispute resolution in the following situation: a. The oldest one-fourth of contested cases which are ARC 1030A not scheduled for hearing. b. All cases where discovery deadlines have been set INDUSTRIAL SERVICES pursuant to a prehearing order and the deadlines have DIVISION[343] passed. c. All cases where the principal dispute is medical Adopted and Filed Emergency benefits. Pursuant to the authority of Iowa Code section 86.8, d. All cases where the only dispute is the extent of the Industrial Commissioner hereby emergency adopts” disability. an amendment to Chapter 4, “Contested Cases,” Iowa e. All cases involving liability disputes of alleged Administrative Code. workers’ compensation insurance carriers and alleged The rule provides for a means of dispute resolution employers pursuant to Iowa Code section 85.21. for contested cases. f. Equitable apportionment of compensation payments In compliance with Iowa Code section 17A.4(2), the pursuant to Iowa Code section 85.43. Industrial Commissioner finds that public notice and g. All cases where the industrial commissioner participation are unnecessary in that the rule will confer determines that dispute resolution would be in the best a benefit on the public and the rule should be imple­ interest of the parties. mented as soon as practicable to serve the public interest. 4.40(2) Voluntary proceedings. The parties may The Division has determined that the rule will have voluntarily agree to submit to dispute resolution. no impact on small business within the meaning of Iowa This rule is intended to implement Iowa Code sections Code section 17A.31. 86.8 and 86.13 and 1990 Iowa Acts, Senate File 2328, The Division also finds, pursuant to Iowa Code section section 3. ' 17A.5(2)“b”(2), that the normal effective date of this rule, [Filed emergency 6/19/90, effective 7/1/90] 35 days after publication, should be waived and the rule [Published 7/11/90] made effective July 1, 1990, as it confers a benefit upon the public to ensure speedy and uniform compliance with Editor’s Note: For replacement pages for IAC, see IAC the agency’s legislative mandate. Supplement, 7/11/90. IAB 7/11/90 FILED 75

ARC 1069A CEBA funding. The committee shall, if formed, be .composed of fear/w board members, two of whom shall ECONOMIC DEVELOPMENT, IOWA be the board chairperson and vice chairperson. The director shall be an a nonvoting ex officio member of DEPARTMENT OF[261] an active committee. A quorum of three committee Adopted and Filed members is necessary for taking action and at least three Pursuant to the authority of Iowa Code sections 15.104 members must concur before making recommendations to and 15.106, the Iowa Department of Economic Devel­ the board. The vote ef a majority ef members in opment hereby adopts amendments to Chapter 22, 4-U « “Economic Betterment Program," Iowa Administrative tire UucliU, Code. Item 3. Amend paragraph 22.6(3)“e” as follows: Notice of Intended Action was published in the Iowa e. The department staff will rate and rank applications Administrative Bulletin as ARC 825A on April 18,1990. according to the criteria in rule 22.7(99E) and. The Iowa Department of Economic Development Additionally, for Small Business Gap Financing Board adopted these amendments on June 21, 1990. The applications as described in the department mil use rule amendments provide additional definitions, increase the 22.8(99E), or for New Business Opportunities or New project review committee to five members, detail Product Development applications as dcacribcd in the penalties and procedures when a business fails to meet department will use rule 22.9(99E). The staff department goals, establish standards for contract extensions and will present its recommendations on rating and ranking explain the process for calculating average county wage. to the committee. The committee will present its A public hearing to receive comments about the recommendations to the board. The board will have final proposed amendments was held on May 9, 1990. There authority in the rating and ranking of applications. The were no public comments concerning the proposed board will also make the final decision to approve, reject, amendments. Based on suggestions from the Adminis­ table, defer, or refer an application to another funding trative Rules Review Committee (ARRC), the following program. The department may negotiate with the changes were made to the proposed rules: applicant or proposed recipient concerning dollar 1. Rule 22.3(99E) was revised to delete the last sentence amounts, terms, or any other elements of the application which required that a vote of the majority of members package. The department board may offer an award in in attendance on the CEBA project review committee a lesser amount or structured in a manner different than was necessary for making recommendations to the IDED requested. Board. The ARRC was concerned that this provision would permit only two members to make a recommen­ Item .4. Amend subrule 22.6(4) as follows: dation to the full IDED Board; the CEBA project review 22.6(4) Emergency applications. Applications are committee is a five-member subcommittee. With the sometimes made for projects which require an immediate deletion of this sentence, a quorum of three members decision on CEBA assistance in order to be successful. is necessary to take action and a vote of three members In the event evidence is presented to the department that is required before recommendations are made to the this situation exists, the board may hold an a electronic IDED Board. telephonic meeting or otherwise process the application 2. Subrule 22.6(4) was revised by deleting “electronic in an accelerated manner. If approved, the project must meeting” and inserting “telephonic meeting”. commence within 45 days of the date of approval; failure 3. Grammatical corrections were made in 22.6(3)“e” to begin within 45 days may cause be grounds for the and 22.14(l)“a.” termination of the award. These rules will become effective on August 15,1990. Item 5. Amend subrule 22.7(2) as follows: These rules are intended to implement Iowa Code 22.7(2) Relating to job creation/retention: section 99E.32. a. The total number of jobs to be created or retained; The following amendments are adopted: b. The quality of jobs to be created. In rating the quality Item 1. Amend rule 261—22.2(99E) by adding the of the jobs, the department shall award more points to following new definitions in alphabetical order: those jobs that have a higher wage scale, a lower turnover “Agreement expiration date” means the date the rate, are full-time career-type positions, or have other CEBA agreement expires. In the case of a forgivable related factors. Those applications that have wage scales loan, the expiration date is the date of final loan more than which are 25 percent or more below that of repayment, usually five years from the date of award. existing Iowa businesses in their area county shall be “Job attainment goal”means the total number of jobs given the lowest ranking an overall score of zero. To created and job retention pledged by the recipient. calculate the average county wage scales, The the “Project expiration date” means the date when the department intends to use the latest Job Service ef Iowa recipient must complete all project expenditures and Wage Survey publication fer comparing wage scales have fulfilled the job attainment goal. In the case of small proposed in the application te those ef the area. If ne business gap financing projects, it is two years from the recent publication exists fer that area, the department date of award. In the case of new business opportunities may use wage survey information from another labor or new product development projects, it could be up to five years. quarters of wage and employment information as provided in the Quarterly Covered Wage and Employment Data Item 2. Amend rule 261—22.3(99E) as follows: report as provided by the Iowa department of employment 261—22.3(99E) Board and committee. The chairper­ services, audit and analysis section. Agricultural/mining son of the board may appoint a feur/fre-member project and governmental employment categories will be deleted review committee to review applications requesting in compiling the wage information. 76 FILED IAB 7/11/90 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261] (cont’d)

Item 6. Amend subrule 22.8(1) as follows: responsibilities. Certain other activities may be required 22.8(1) Additional criteria. The criteria rule of applicants or recipients before funds may be obtained from the department. Requirements will be specified in this component, fe addition applications Applications the agreement between the department, applicant, and under this component shall be for businesses that meet recipient. the SBA definition of a small business. All geographic Prior to the release of funds- by the department all locations of the business will be used to determine the known required environmental permits must be granted total number of employees. The criteria in rule 22.7(99E) and regulations met. Also, if the recipient has, within will be used for evaluating applications under this three years of application for assistance, acquired or component. merged with an Iowa corporation or company, the recipient shall make a good faith effort to hire the Item 7. Amend subrule 22.8(3) as follows: 22.8(3) Scoring. The criteria noted in rule 22.7(99E) workers of the merged or acquired company. are incorporated into the scoring system as follows: The applicant and the recipient must execute the CEBA a. Local effort compared with local resources. agreement within 180 days from the date of award. If Maximum - 20 points. This includes assistance from the the agreement is not signed by that date the department city, county, community college, chambers of commerce, may recommend to the board that the award be rescinded economic development groups, utilities, or other local and the funds deobligated, unless the applicant or recipient sources, compared to the resources reasonably available has received prior written permission from the department from those sources. Up to a maximum of 25 percent of to exceed the time frame for an agreed upon time period. the actual assistance from the local dollars committed Item 11. Rescind subrule 22.12(5), insert the following to a RISE project, er Iowa Code chapter 280B or 280C new rules, and renumber the remaining rule as or tax abatements issued under Iowa Code chapters kOU 22.15(99E): and 427B and 100 percent of the local dollars committed to a RISE project will be. considered local effort. The 261-22.13(99E) Default. form of local assistance compared to the form of CEBA 22.13(1) At any time prior to or after the project assistance requested would be considered. Conventional expiration date, the department may, for cause, financing, inadequately documented in-kind financing, determine that a recipient is in default under the terms and local infrastructure projects not specifically directed of their agreement. The department may determine that at the business are not considered local effort. the recipient is in default if any of the following occur: ITEM 8. Amend subrule 22.8(4) as follows: a. Any material representation or warranty made by 22.8(4) Project period. Projects funded under rule the recipient in connection with the application that was 22.8(99E) are considered to have a project period of two incorrect in any material respect when made. years for meeting job creation attainment goal and other b. There is a material change in the business ownership related performance goals. or structure that occurs without prior written disclosure Forgivable loans require that the recipient achieve the and the permission of the department. pledged jobs at the project expiration date and upon the c. There is a relocation or abandonment of the business agreement expiration date or be subject to penalties as or jobs created or retained through the project. set out in rule 22.12(5). d. Expending CEBA funds for purposes not described The recipient shall maintain the pledged jobs for 90 in the application or authorized in the agreement. days beyond the project expiration date or will be subject e. Failure of the recipient to make timely payments to penalties as provided for in rule 22.13(99E). under the terms of the agreement, note or other obligation. Item 9. Amend subrule 22.9(4) as follows: f. Failure of the recipient to fulfill its job attainment 22.9(4) Project period. Projects funded under rule obligation. 22.9(99E) are considered to have up to a maximum five- g. Failure to perform or comply with the terms and year project period. conditions of the agreement. Forgivable loans require that the recipient achieve the h. Failure to comply with any applicable state rules pledged jobs at the project expiration date and upon the or regulations. agreement expiration date or be subject to penalties as set out in rule 22.12(5). 22.13(2) Agency actions upon default. The recipient shall maintain the pledged jobs for 90 a. The department will take prompt, appropriate, and days beyond the project expiration date or will be subject aggressive debt collection action to recover any funds to penalties as provided for in rule 22.1S(99E). misspent by recipients. b. If the department determines that the recipient is Item 10. Amend rule 261—22.11(99E) as follows: in default, the department may seek recovery of all 261—22.11(99E) Award process. Every applicant will program funds plus interest, assess penalties, negotiate be notified in writing of the disposition of their alternative repayment schedules, suspend or discontinue application within two weeks of final department action collection efforts, and take other appropriate action as on it. Successful applicants will be required to sign an the department deems necessary. agreement, along with the recipient, with the department 22.13(3) Penalties for failure to meet job attainment which clarifies the applicant’s responsibility to provide goals. funds to the recipient in return for the jobs created by a. Forgivable loans, grants, buy-downs, and interest the recipient. Applicants may be requested to obtain subsidy awards. If the recipient receives this type of mortgages, liens, or other security from the recipient award and at the project expiration date does not provide in return for the provision of funds. The agreement will 100 percent of the pledged FTE jobs, the department also define the applicant’s responsibilities for oversight may require repayment of program funds using the of the project, reporting to the department, and other following criteria: IAB 7/11/90 FILED 77 ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261J (cont'd)

(1) If the recipient fails to achieve at least 50 percent 261—22.14(99E) Standards for compromise, suspen­ of the job attainment goal, 100 percent of the award will sion or discontinuance of collection efforts. be due as a loan at an annual interest rate as determined 22.14(1) Collection efforts may be discontinued if the periodically by the board. Interest due will be calculated board determines that any of the following conditions from the date CEBA funds were disbursed to the exist: recipient. a. There is not a likelihood of recovering any substantial (2) If the recipient achieves more than 50 percent of amount of the CEBA funds. the job attainment goal, the award will be prorated b. The cost of collection would exceed the amount that between the percentage of jobs attained and the would be recovered. percentage of shortfall. The pro rata amount of the award c. The department has been advised by the attorney associated with the percentage of shortfall will be general’s office that the claim is legally without merit, amortized over the remaining term of the forgivable loan, cannot be substantiated by evidence, no security remains or in the case of a grant, buydown, or interest subsidy, to be liquidated, the statute of limitations has run, or three years (beginning at the agreement expiration date) other conditions exist that would not allow recovery of at an annual interest rate as determined periodically by funds. the board. Interest will be charged beginning with the 22.14(2) Board approval. Before collection efforts may date the recipient received the funds; interest due from be suspended or discontinued, the department will first the date funds are received to the closeout date will be report to the committee the reasons for recommending due immediately. the suspension or discontinuance of collection efforts. The b. Loan awards. If the recipient receives a loan at a committee will recommend to the board those projects rate that is below the annual interest rate for noncom­ for which it determines collection efforts should be pliance as set periodically by the board, the remaining suspended or ceased. The board will determine and direct principal amount of the loan will be prorated between the department to suspend, discontinue or continue the percentage of jobs attained and the percentage of collection efforts. shortfall. The shortfall principal portion will be Item 12. Amend renumbered rule 261—22.15(99E.) by amortized over the remaining term of the loan, beginning adding two new subrules and renumbering the remain­ at the agreement expiration date, at an annual interest ing subrule. rate that is determined periodically by the board. Interest 22.15(4) Extension requests for project expiration will be charged beginning with the date the recipient date. Extension requests may be approved only when received the funds; interest due from the date funds are the following conditions apply: received to the closeout date will be due immediately. a. The delay in achievement of proposed job attainment Finally, the pro rata portion of the loan associated with goal was caused by events over which the recipient had the percentage of jobs attained will be left at the original no control and could not have reasonably predicted; and rate and term. b. If the extension is approved, there is a reasonable c. Loan awards that have a deferred payment period. probability that the originally proposed job attainment If the recipient receives a loan at a rate that is below goal can be achieved; the annual interest rate for noncompliance as set c. Projects which do not fit under the above two periodically by the board, the remaining principal conditions, and where special. consideration can be amount of the loan will be prorated between the obtained from the recipient which appear appropriate percentage of jobs attained and the percentage of to the department, may be brought to the committee for shortfall. The shortfall principal portion will be disposition. amortized beginning at the agreement expiration date d. In no case would the accumulative extensions at an annual interest rate that is determined periodically approved on any project exceed 12 months. by the board. Interest will be charged beginning with 22.15(5) Extensions based on actual performance. If the date the recipient received the funds; interest due the recipient achieves the job attainment goal within 90 from the date funds are received to the closeout date days after the project expiration date, the department will be due immediately. Finally, the accomplished may consider providing up to a 90-day extension to the portion of the loan will be left at the original rate and project expiration date without committee approval. term. 22.13(4) Determination of appropriate repayment [Filed 6/22/90, effective 8/15/90] plan. Upon determination that the recipient has not met [Published 7/11/90] the job attainment goals, the department will notify the EDITOR’S NOTE: For replacement pages for IAC, see IAC recipient of the amount to be repaid to the department. Supplement, 7/11/90. If the enforcement of such penalties would endanger the viability of the recipient, the department may extend the term of the loan to ensure payback, stability, and survival of the recipient. The committee will be notified ARC 1063A of penalties imposed in either of these manners. In certain instances, additional flexibility in a ENVIRONMENTAL PROTECTION repayment plan may be necessary to ensure payback, COMMISSION[567] stability, and survival of the recipient. Flexibility in a repayment plan may include, but is not limited to, Adopted and Filed deferring principal payments or collecting monthly Pursuant to Iowa Code section 455B.304 and Iowa Code payments below the amortized amount. In these cases, Supplement section 455D.7, the Environmental Protec­ committee review and approval is necessary before the tion Commission of the Department of Natural Resources department may finalize the repayment plan. amends 567—Chapter 100, “Scope of Title—Definitions— 78 FILED IAB 7/11/90

ENVIRONMENTAL PROTECTION COMMISSION[567J (cont'd)

Forms—Rules of Practice,” and Chapter 101,' “General 102 pertains to the permits which must be obtained in Requirements Relating to Solid Waste Disposal,” Iowa order to construct and operate a sanitary disposal project. Administrative Code. Chapter 103 details the plan and operating requirements One purpose of the revision is to implement Iowa Code for all sanitary disposal landfills. Chapter 104 details Supplement sections 455D.3, 455D.18, 455B.304, the requirements for sanitary disposal projects with 455B.305 and 455B.306, the Waste Volume Reduction processing facilities. Chapter 105 sets forth the require­ and Recycling Act. These sections pertain to Solid Waste ments for the planning and operation of all composting Comprehensive Plans, Part I. The revision also clarifies facilities. Chapter 106 pertains to design and operating existing rules. requirements for recycling operations. Chapter 107 sets Notice of Intended Action was published in the April forth the rules and regulations pertaining to beverage 18, 1990, Iowa Administrative Bulletin as ARC 816A. container deposits and approval of redemption centers. Oral and written comments were received from five Chapter 108 pertains to the reuse of solid waste. Chapter persons during the comment period. A public hearing 109 contains the procedure for the assessment and was held in Des Moines on May 8, 1990. There was no collection of fees for the disposal of solid waste at landfills. attendance at the hearing. Chapter 110 contains design, construction, and operation Changes from the Notice of Intended Action are as standards for solid waste management facilities. Chapter follows: 118 governs removal and disposal of PCBs from white Subrule 101.4 was reworded to avoid confusion with goods. Chapter 119 provides requirements for collection a different use of the word “alternative” in the rules. .and disposal of waste oil. Title IX, Chapters 120 and Subrule 101.5(3) was revised to change the word 121 govern land application of sludge and other solid “recommendations” to “implementation plan and waste. schedule” to more accurately state, the requirement. Item 3. Amend rule 100.2(455B) by adding 455D to Paragraph 101.5(4)“c” was expanded to state that the the parenthetical implementation following the rule wasfe stream report must include, per capita tons per number, amending the definition of “recycling,” and year as well as total tonnage. Progress toward meeting adding definitions for “local governments,” “planning state volume reduction at recycling goals must use per area,” and “waste reduction,” as follows: capita rates. “Recycling” means the reutilization of natural Subparagraph 101.5(5)“b”(l) was revised to add the resources and man-made products any process by which word “participation” to clarify that public input is waste or materials which otherwise become waste are expected as well as public education. Because public collected, separated, or processed and reused or returned participation is not optional, the word “should" was to use in the form of raw materials or products. Recycling changed to “must” in the following sentence: “Strategies includes, but is not limited to, the composting of yard waste must include, but not be limited to, public meetings which has been previously separated from other waste and during the planning and implementation stages and collected by the sanitary facility, but does not include any other forms of information dissemination, such as form of energy recovery. workshops and advertisements.” “Local governments” means those counties or munic­ 101.5(5)“b”(7)‘T” was amended to correct the name of ipalities using the sanitary disposal project. the Preserves and Ecological Services Bureau. “Planning area” means the localities and facilities 101.5(5)“b”(7)“2” was amended to correct the name of involved in any aspect of the sanitary disposal project/s) the Historic Preservation Bureau. management of waste, including out-of-state localities Copies of the rules may be obtained from the Records and facilities, if applicable. A planning area may include Section, Iowa Department of Natural Resources, Wallace one or more sanitary disposal projects. State Office Building, 900 East Grand Avenue, Des “Waste reduction” means practices which reduce, Moines, Iowa 50319-0034. avoid, or eliminate both the generation of solid waste These rules will become effective on August 15, 1990. and the use of toxic materials so as to reduce risks to These rules are intended to implement Iowa Code health and the environment and to avoid, reduce or section 455B.304 and Iowa Code Supplement chapter eliminate the generation of wastes or environmental 455D. pollution at the source and not merely achieved by Item 1. Amend the caption to Title VIII to read shifting a waste output or waste stream from one “Solid Waste Management and Disposal.” environmental medium to another environmental medium. Waste reduction includes, but is not limited Item 2. Amend rule 100.1(455B) to read as follows: to, home yard waste composting, which prevents yard 567—100.1(455B, J*55D) Scope of title. The depart­ waste from entering the waste stream. ment has jurisdiction over the management, dumping, depositing, and disposal of solid waste by establishing Item 4. Amend the title of Chapter 101 to read, standards for sanitary disposal projects and by regulat­ “General Requirements Relating to Solid Waste Man­ ing the dumping of solid waste through a system of agement and Disposal.” general rules and specific permits. The construction and Item 5. Amend rule 101.1(455B) as follows: operation of any sanitary disposal project requires a specific permit from the department. 567—101.1(455B, U55D) Compliance. All solid waste This chapter provides general definitions applicable shall be stored, collected, transported, utilized, pro­ to this title and rules of practice, including forms, cessed, reclaimed or disposed of in a manner consistent applicable to the public in the department’s adminis­ with requirements of these rules Chapters 100 to 129. tration of the subject matter of this title. Item 6. Adopt a new rule 101.4 (455B.455D) as follows Chapter 101 contains the general requirements and renumber current rules 101.4(455B) to relating to solid waste management and disposal. Chapter 101.6(455B) accordingly. IAB 7/11/90 FILED 79

ENVIRONMENTAL PROTECTION COMMISSION[567] (cant’d)

567—101.4(455B,455D) Duties of cities and counties. governmental body has reviewed the plan and will adopt Every city and county of this state shall provide for the the implementation plan and schedule contained in the establishment and operation of a comprehensive solid plan. The letter shall briefly summarize the implemen­ waste reduction program consistent with the waste tation plan and schedule. management hierarchy under 101.5(5)“a” and a sanitary If a local government included in the planning area disposal project for final disposal of solid waste by its refuses to provide a letter, then that local government must residents. Comprehensive programs and sanitary prepare its own plan and is no longer considered to be disposal projects may be established separately or in the original planning area. In such cases, the original through cooperative efforts, including Iowa Code chapter plan may still be approved, but it must include a brief 28E agreements and interstate efforts, for the joint use addendum stating the effect of the change on the waste of participating public agencies as provided by law. stream. All cities and counties or Iowa Code chapter 28E 101.-45(2)(4) Content of a comprehensive plan. In agencies representing cities and counties shall file with fulfillment of the requirements of Iowa Code sections the director a comprehensive plan detailing the method 455B.306(3), and 455B.301A, and Iowa Code Supplement by which the city or county or 28E agency will comply chapter U55D, a comprehensive plan or revision to a with the requirements to establish and implement a comprehensive plan shall include the following comprehensive solid waste reduction program for its information: residents. If the city or county or 28E agency does not a. A description of the planning area and the public participate in the preparation of a regional comprehen­ and private agencies involved, including afdescription sive plan, then the city or county or 28E agency must of each agency’s role in managing solid waste generated file a comprehensive plan separately. in the area7. Prior, to waste being received from, disposed If a city or county facility refuses any particular solid of, or otherwise managed on an ongoing basis outside of waste type, with the exception of special waste author­ the delineated planning area, an amendment to the plan izations, it must identify another waste management is required before the waste may be managed. All out- facility for that waste within that planning area. If no of-state localities that use permitted facilities in any Iowa other waste management facility for the waste type exists planning area are subject to the same comprehensive within the planning area, the city or county must planning rules (IAC Chapter 101) as Ioiba localities; establish one or arrange by contract to establish access b. A description of past local and regional planning to one. activitiesj; Item 7. Amend renumbered rule 101.5(455B,455D) as c. A report of the waste stream as of July 1, 1988, in follows: total tons per year and in per capita tons per year. The 567—101.45(455B,455D) Comprehensive plans. information may be based on tonnage figures as reported Cities, counties and private agencies operating or in surcharge tax reports, plus any incinerated waste. This planning to operate a sanitary disposal project after July baseline data will be used to demonstrate progress toward 1, 1988, shall, in conjunction with all local governments meeting the state volume reduction and recycling goals using the sanitary disposal project, file a comprehensive pursuant to subrule 101.5(2). Changes in population, plan with the director either prior to or at the time of employment, or industrial production shall not be used application for issuance, renewal or reissuance of a to demonstrate progress or to justify lack of progress sanitary disposal project permit. At a minimum, The toward meeting state volume reduction and recycling the plan shall be updated and refiled with the department goals. Any such changes shall be documented in the plan; every three years or at the time of each subsequent e d. A description of the current and projected 20- application for issuance, renewal, or reissuance of a year waste composition and waste generation rates, sanitary disposal project permit. The department may including a listing of industrial and commercial require filing and updating a plan at other times. The generators in the area7; department shall act to coordinate and expedite planning d e. A description of the existing waste management activities for multicounty areas where feasible. system, its capacity, disposal costs per ton, and projected 101.45(1) Comprehensive planning goal purpose. The 20-year disposal costs, and any financial assurance that goal purpose of a comprehensive plan submitted may be required by the department, pursuant to Iowa Code according to subrules 101.4(2) 101.5(2), and 101.4(8), section U55B.30U; '101.5(5), 101.5(6) and 101.5(7) is the development of a e /. An analysis of alternative waste management specific plan and schedule for implementing technically systems according to the state’s waste management and economically feasible solid waste management hierarchy7; methods that will prevent or minimize adverse envi­ f g. A description of the proposed waste management ronmental impact impacts. system for the planning area based upon the results of the alternatives analysis7; 101.5(2) State volume reduction and recycling goals. (| T 4-U a rv-F n iht 1«»< 1 I n A n rvA/)1 T1 rt T“\ Ion The goal of the comprehensive plan of each planning area giL. ixt tile case t7i a sanitary laiKimi, zt s± pian of the state is to reduce the amount of materials in the and schedule for fully implementing the comprehensive waste stream, existing as of July 1, 1988, 25 percent by plan no later than July 1,19977; and July 1, 199U, and 50 percent by July 1, 2000, through b i. A description of the methods of financing to be the practice of waste volume reduction at the source and used. through recycling. A guidance document describing in more detail the 101.5(3) Evidence of cooperation. When a comprehen­ content of a comprehensive plan, part I, is available from sive plan is submitted to the department, it must be the records center of the department at (515)281-8860. accompanied by a letter or letters from all local The document title is “Guidelines for Solid Waste governments using or planning to use the sanitary disposal Comprehensive Plans, Part I: Waste Management project. The letter shall include a statement that the Alternatives” July 1,1988 1990. 80 FILED IAB 7/11/90 ENVIRONMENTAL PROTECTION COMMISSION[567] (cont’d)

101 .45(&)f5) Alternatives analysis. within the planning area, the plan must identify the a. Alternative solid waste management systems shall nearest collection site(s) to the planning area. be evaluated according to the following waste manage­ • A description of public education strategies. ment hierarchy, listed in descending order of preference: • Other requirements as specified in Chapter 119. (1) Volume reduction at the source, 2. For lead-acid batteries, the examination shall also (2) Recycling and reuse, include a description of public education strategies, as (3) Combustion with energy recovery, detailed in 101.5(5)“b”(l). (4) Combustion for volume reduction, 3. For white goods, the examination shall also include (5) Landfilling. a methodology for recycling the metal they contain. If b. A complete analysis of alternatives shall include at capacitors are removed from white goods at a sanitary a minimum: disposal project, the materials must be handled in (1) The development of or participation in a' public accordance with Chapter 118. education program to reduce the volume of solid waste U- For waste tires, the examination shall also include: generated by residents, farms; businesses, and indus­ • The number and geographic distribution of waste tries; A detailed description of a public participation and tires generated and existing in the planning area, education program for source reduction and recycling by including identification of stockpiles containing over 1,000 residences, farms, businesses, and industries. The waste waste tires. management authority division of the Iowa department • The identification of any management methods for of natural resources may be contacted for assistance with waste tires in the planning area. public education strategies and materials. The public • If a sanitary disposal project in the planning area education program must address,, at a minimum, accepts tires, then the plan must include a methodology household hazardous materials, tires, motor oil, lead-acid for processing the tires in a manner established by the batteries, backyard composting, and methods of materials department. separation and recycling. Public education strategies, (64) Consideration of an organic municipal waste rt ^ rtl w\ ft 4- 4-Uft ftftn Wftft ft» ftAnXH^l estimated costs, and materials must be described fully in CvIIipUoLlllg pi Ugl tllll CTCITCr ell L1IL dUIXI vU or ill <1 Ivll i>i. ai the plan. Strategies must include, but not be limited to, processing facility (at a minimum this program should public meetings"during the planning and implementation include yard waste composting-); Detailed descriptions stages and other forms of information dissemination, such of programs developed to encourage backyard composting as workshops and advertisements. Timelines and a budget of yard waste, to investigate the feasibility of central for public education activities must be included in the plan. composting facilities that will, at a minimum, include (2) Details of a local recycling program which shall yard, waste composting, and to investigate the use of land contain a specific methodology for meeting the state volume application of yard waste or the use of yard waste as reduction and recycling goals pursuant to subrule 101.5(2) a soil conditioning material. These programs must include and a methodology for implementing a program of public education elements as detailed in subrule separation of wastes including, but not limited to, glass, 101.5(5)“b”(2) and identification of markets or outlets for plastic, paper, and metal. The methodologies must include, any compost generated at a central composting facility. but not be limited to: In addition, any compost generated at a■ centralized 1. Public education strategies; facility must be produced in accordance with standards 2. Public education materials; established by the department. 3. A specific description of recycling activities already (45) Investigation of market potential for energy in place, including the names of groups conducting the recovery from waste incineration;, including the activities; U. The names of any local groups that will be involved prior to combustion; If incineration for energy recovery in any recycling programs in the planning area; or volume reduction is an alternative, then the plan must 5. Letters from those local groups stating the nature of include methodologies for the separation of recyclable and their present or planned involvement in the recycling reusable materials, materials which result in uncontrolled program(s) described in the plan; toxic or hazardous air emissions when burned, and 6. Identification of possible markets and estimated hazardous or toxic materials which are not rendered prices for each material including, but not limited to, glass, nonhazardous or nontoxic by incineration. Separation of plastic, paper, and metal; waste includes, but is not limited to, magnetic separation. 7. A detailed timeline which identifies yearly waste The removed materials shall be recycled, reused or treated reduction and recycling goals and milestones for each and disposed of in a manner that is consistent with the phase of the program(s): planning, implementation, and waste management hierarchy as described in subrule evaluation. 101.5(5). (23) An examination of the following waste items for (65) Description of expected environmental impacts their existing and potential recyclability, including an from the alternative waste management systems identification of available markets: motor oil, waste tires, including any negative impacts on water, groundwater, ear lead-acid batteries, nickel chrome and mercury air quality, plant life, animal life, and human health;. household batteries, plastics, newspapers, corrugated (7) All new sanitary landfills or expansions that require cardboard, textiles, office paper, construction materials, a new permit or a permit amendment shall include: aluminum and steel cans, colored and clear glass, yard 1. A comprehensive listing of plant and animal species. clippings waste, animal wastes and other organic wastes, In preparing the listing the permit applicant shall contact and white goods. the department’s preserves and ecological services bureau 1. For motor oil, the examination shall also include: with a request to search its records to determine the • Specific locations of collection sites in the planning presence of or habitat for any threatened or endangered area for those who change their own oil. If no sites exist species or communities and any forests, prairies or IAB 7/11/90 FILED 81

ENVIRONMENTAL PROTECTION COMMISSION[567] (cant’d) wetlands. In the event that the department’s preserves and 101.66(2) All public agencies which contract with a ecological services bureau does not contain records of rare hauler to comply with the requirements of part 1 of species or community but their presence is suspected, the division IV of chapter 455B shall include as terms of permit applicant may be required to conduct an approved that contract that all solid waste collected by the hauler site survey. for that agency shall be disposed of or deposited at a 2. A determination of the presence of and assessment sanitary disposal project permitted by the department, of the impact on any archaeological, historical, or or otherwise managed in accordance with the rules of the architecturally significant properties on the proposed site. department. To assess the impact, the permit applicant must consult [Filed 6/22/90, effective 8/15/90] with the historic preservation bureau of the Iowa state [Published 7/11/90] historical society. 3. An assurance that soil boring samples have been taken EDITOR’S NOTE: For replacement pages for IAC, see IAC at the site. The soil boring samples must be kept by the Supplement, 7/11/90. permit applicant until the permit is issued and must be made available to the department if the department requests them. (%8) Inclusion of established and anticipated regulatory requirements regarding the future siting, operation, closure and postclosure of solid waste facilities, and (79) Completion of the cost analysis worksheets contained in the “Guidelines for Solid Waste Compre­ ARC 1062A hensive Plans, Part I: Waste Management Alternatives.” This document is available upon request from the ENVIRONMENTAL PROTECTION department. Refer to “Guidelines for Solid Waste COMMISSION[567] Comprehensive Plans, Part I: Waste Management Adopted and Filed Alternatives” for the comprehensive planning require­ ments that apply to composting, recycling, processing, and Pursuant to the authority of Iowa Code section medical waste incineration facilities. Because these 455B.304, the Environmental Protection Commission operations are specialized, some requirements contained adopts amendments to Chapter 109, “Fees for Disposal in these rules may not apply to these operations. of Solid Waste at Sanitary Landfills,” Iowa Adminis­ \Q\.45(4)(6) Plan review. A plan submitted according trative Code. to subrules 101.4(2) and 101.4(8) rule 101.5(U55B,U55D) Notice of Intended Action was published in the Iowa shall be reviewed by the department for its accuracy, Administrative Bulletin on April 18,1990, as ARC 818A. completeness, and appropriateness of baseline data and The Commission amends 567—Chapter 109 to conform alternatives analysis, for the environmental and to recent legislative changes including the addition of economic feasibility of selected waste management certain exclusions from the fee for landscape waste, coal systems, for the plan’s adherence to the state’s waste combustion residues, and foundry sand at landfills which management hierarchy, for compliance with statutory accept only those wastes, the increase in fees, and penalty deadlines, and for the agency’s commitment to public changes. Item 5 amends rule 109.7(455B) to conform education and adequate financing. The director may penalties to changes made by 1990 Iowa Acts, Senate reject, suggest modification, or approve a plan based File 2181. upon these criteria. The Department held public hearings in Iowa City, 101.5(7) Subsequent plans. After the initial plan has Des Moines, and Atlantic. The Department received no been approved, all subsequent plans must include all oral or written comments on the proposed rule changes. elements in rule 101.5(U55B,U55D) and a thorough The rules were amended after interdepartmental evaluation of progress toward meeting the state volume review. It was determined that the penalty for late fee reduction and recycling goals as detailed in subrule remittance should be clarified. Therefore, 567— 101.5(2). The solid waste abatement table included in the 109.7(455B) has been amended to indicate that fees late “Guidelines for Solid Waste Comprehensive Plans, Part for partial months will be assessed the full 2 percent I: Waste Management Alternatives” shall be vised for this penalty fee. evaluation of progress. If a new facility requests to be These rules are intended to implement Iowa Code included in a planning area after completion of a plan section 455B.310 as amended by 1990 Iowa Acts, Senate but before a subsequent plan is due, and the planning area File 2181. agrees to include the facility, the following procedure is These rules shall become effective August 15, 1990. required: The following amendments are adopted: a. A letter is submitted to the department by the facility Item 1. Amend subrule 109.1(1) as follows: operator describing the facility’s operation and the amount 109.1(1) Authority. Pursuant to Iowa Code sections of waste to be managed. 455B.309 and section 455B.310, the department has b. A letter is submitted to the department by the planning authority to collect fees for the disposal of solid waste area’s responsible agency agreeing to accept the facility at sanitary landfills. Moneys collected or received by the in its planning area and stating how the facility will affect department shall be deposited in the state treasury to the planning area’s waste stream. the credit of the groundwater fund. All tonnage fees c. The subsequent plan submitted by the planning area received by the department under this chapter shall be will include the facility. deposited in the solid waste account of the'groundwater ITEM 8. Amend renumbered subrule 101.6(2) as protection fund created under Iowa Code section follows: U55E.11(1). 82 FILED IAB 7/11/90 ENVIRONMENTAL PROTECTION COMMISSION[567] (cont’d)

Item 2. Rescind rule 567—109.3(455B) and insert in ARC 1053A lieu thereof the following: 567—109.3(455B) Exclusions. ENVIRONMENTAL PROTECTION 109.3(1) The fees specified in rule 109.4(455B) do not COMMISSION[567] apply to solid waste disposal facilities with special permit Adopted and Filed provisions which limit the site to the disposal of construction and demolition waste, landscape waste, coal Pursuant to the authority of Iowa Code Supplement combustion waste, foundry sand or solid waste materials sections 455B.304 and 455D.6(6), the Environmental approved by the department for lining or capping or Protection Commission of the Department of Natural constructing berms, dikes or roads in the project. Resources adopts new Chapter 118, “Removal and 109.3(2) Fees do not apply to wastes which will not Disposal of Polychlorinated Biphenyls (PCBs) from be buried at a sanitary landfill, if such material is White Goods Prior to Processing,” Iowa Administrative salvaged or recycled in accordance with the provisions Code. of the landfill permit. These rules pertain to the environmentally safe removal and disposal of electrical parts of white goods, Item 3. Amend subrule 109.4(2) as follows: which contain polychlorinated biphenyls, prior to any Rescind paragraph “a” and insert in lieu thereof the processing or metals recovery. following: Notice of Intended Action was published in the a. For the year beginning July 1, 1988, the tonnage February 7,1990, Iowa Administrative Bulletin as ARC fee is $1.50 per ton of solid waste and shall increase 657A. Oral and written comments were received from annually in the amount of $.50 per ton through July 1, 13 persons during the comment period and at three public 1992. hearings. Confusion arose when information from EPA Amend 109.4(2)“c”(l) by adding after “Construction was received that indicated a possible conflict between and Demolition Waste” and before “Other”, the following this chapter and federal PCB regulations. Written Type of Waste and Volume/Weight Conversion: clarification was requested from EPA and those clarifications are reflected in some of the changes from Contaminated soil 1 cubic yard = 2000 pounds the Notice of Intended Action. Further amend subrule 109.4(2) by adding the Changes from the Notice of Intended Action are as following new paragraph: follows: e. A county in which a privately operated landfill 1. A new definition of “small capacitors” was added accepts solid waste from outside of the county may charge to clarify the type and size capacitors that are being an additional tonnage fee for the disposal of solid waste regulated by this chapter. at the sanitary landfill which is not more than 100 percent 2. The definition of “white goods” was changed to of the fee otherwise established in this chapter. The include window unit air conditioners. additional fee charged and the moneys collected should 3. Subrule 118.3(1), paragraph “b,” was expanded to be used exclusively for the development and implemen­ be more specific about the standards with which removal tation of alternatives to sanitary landfills or for costs and storage sites must comply. incurred by the county to abate problems associated with 4. Subrule 118.3(1), paragraph “c,” was expanded to the operation of the sanitary landfill. include a record-keeping requirement to ensure that those who claim an exemption do so in accordance with Item 4. Amend subrule 109.5(2) as follows: this rule. Exemption to registration was extended to 109.5(2) Manner, time and place. Fees and forms are those who are already subject to federal EPA registration due on April 15 for the previous ealcndar year. Fees are under 40 CFR 761. to be paid on a quarterly basis. The fees will be due 5. Subrule 118.3(2), paragraph “b,” was expanded to January 1, April 1, July 1, and October 1 for the previous allow information from manufacturers to be used as proof quarter. The person shall present or mail the completed that a particular model white goods does not contain PCB form with the appropriate fees to: Accounting, Depart­ capacitors.' ment of Natural Resources, Henry A. Wallace Building, 6. Subrule 118.3(3), paragraph “a,” modifies the type 900 East Grand Avenue, Des Moines, Iowa 50319. of container required from “55-gallon” to “DOT approved.” Also, the requirement that all interstitial Item 5. Amend rule 567—109.7(455B) as follows: space be filled with absorbent material is changed to 567—109.7(455B) Failure to pay fees. If it is found allow 2 inches of absorbent material in the bottom of that a person has failed to pay the fees assessed by this the container. chapter, the director will shall enforce the collection of 7. Subrules 118.3(3), paragraphs “d” and “f,” were the delinquent fees. A person required to pay fees as amended to reflect federal regulations on storage, required by Iowa Code section 455B.310 who fails or disposal and transport of PCB and PCB articles. refuses to pay the fees by the due date shall be assessed These rules are intended to implement Iowa Code a penalty of 45 2 percent of the quarterly fee due to be Supplement sections 455B.304 and 455D.6. assessed on January 2, April 2, July 2, October 2, and These rules shall become effective August 15,1990. on the first day of each month thereafter, on a monthly The following new chapter is adopted: basis until paid. The penalty shall be paid in addition to the fee due. CHAPTER 118 REMOVAL AND DISPOSAL OF POLYCHLORI­ [Filed 6/22/90, effective 8/15/90] NATED BIPHENYLS (PCBs) FROM WHITE [Published 7/11/90] GOODS PRIOR TO PROCESSING EDITOR’S NOTE: For replacement pages for IAC, see IAC 567—118.1(455B,455D) Purpose. The purpose of this Supplement, 7/11/90. chapter is to implement Iowa Code Supplement sections IAB 7/11/90 FILED 83 ENVIRONMENTAL PROTECTION COMMISSION[567] (cont'd.)

455B.304 and 455D.6(6) by providing rules for the proper fluids about proper sanitation, that is washing hands and removal and disposal of electrical parts containing exposed skin before eating, drinking, smoking or using polychlorinated biphenyls from white goods prior to toilet facilities during the work shift. processing. (5) Emergency procedures must include evacuation of 567—118.2(455B,455D) Definitions. all nonessential personnel from the area of any leaks or spills and adequate ventilation of the area to prevent “Capacitor” means a device for accumulating and the accumulation of fumes. holding a charge of electricity and consisting of c. Exemptions. Any facility that is subject to federal conducting surfaces separated by a dielectric. PCB identification requirements is exempt from further “Facility” refers to any permitted sanitary disposal registration with the state of Iowa. Any person or facility project, salvage dealer, shredder operation or other party that removes less than 200 pounds of small capacitors which may accept white goods for disposal or processing. in one month, but no more than 500 pounds in one year, “Fluff’ is the residual waste from the shredding is exempt from the registration requirement but is not operation after metals recovery. exempt from the remaining rules on removal and “PCB” and “PCBs” mean any chemical substance that disposal of capacitors, handling of spills or shredding is limited to the biphenyl molecule that has been of white goods. The person or facility is required to keep chlorinated to varying degrees or any combination of records of the amount, in pounds, of capacitors removed substances which contains such substance. each month and each year. These records are to be made “Processing” means crushing, compacting, smashing, available to the department upon request. These records shredding, or other similar action. are to be maintained for at least three years. “Small capacitor” means a capacitor which contains d. Permitted sanitary disposal projects must comply less than 1.36 kg (3 lbs) of dielectric fluid. The following with permit conditions pertaining to activities governed assumptions may be used if the actual weight of the fluid by this chapter. is unknown. A capacitor whose volume is less than 1,639 118.3(2) Removal of capacitors. cubic centimeters (100 cubic inches) may be considered a. All white goods must be inspected for the presence to contain less than 1.36 kg (3 lbs) of dielectric fluid. of capacitors. A capacitor whose volume is between 1,639 and 3,278 b. All capacitors are assumed to contain PCBs unless cubic centimeters may be considered to contain less than proven otherwise by an approved laboratory, unless the 1.36 kg (3 lbs) of dielectric fluid if the total weight of words “No PCBs” have been imprinted on the body of the capacitor is less than 4.08 kg (9 lbs). the capacitor by the manufacturer, or if the manufac­ “White goods” means appliances including, but not turer certifies in writing that no PCBs were used in the limited to, refrigerators, freezers, window unit air manufacture of the white goods or capacitor. conditioners, central heating/air conditioning units, c. All capacitors must be removed from all white goods washers, dryers, microwave ovens, and fluorescent light prior to processing and disposed of in accordance with ballasts. subrule 118.3(3) with the exception of any capacitor 567—118.3(455B,455D) Removal and disposal which is proven not to contain PCBs that may be disposed requirements. of as any other nonhazardous solid waste. 118.3(1) Registration of capacitor removal and storage 118.3(3) Disposal of capacitors. facility. a. All capacitors must be placed in DOT-approved a. Any facility that is now or plans to be engaged in containers which show no signs of damage. The bottom the removal of PCB capacitors from white goods must of the container must be filled to a depth of two inches register by submitting a written description of the with absorbent material (soil, sand, oil-dry, kitty litter, removal and storage site to the department of natural etc.). resources which will maintain that list and provide copies b. All containers must be labeled with the proper EPA- to interested parties upon request. approved PCB label, in both English and the predom­ b. The removal and storage site must comply with 40 inant language of non-English reading workers. CFR 761.65 if capacitors, other than small capacitors, c. All containers must be sealed prior to shipment. are stored. If only small capacitors are to be stored at d. Small capacitors may be stored for up to one year the facility the following is required: on-site in DOT-approved containers provided that: the (1) Signs must be posted warning workers of the containers show no signs of rust, cracking or dents; the hazards associated with PCBs and the proper first-aid containers are properly labeled with EPA PCB label; measures in the event of contact with skin or eyes. the storage area is separated and delineated from any (2) Personal protective equipment including protective other nonhazardous storage area; and the capacitors clothing, eye protection and respirators must be made show no sign of cracks or leaks (cracks or leaks are treated available to all workers who will be handling PCB as spills). Other capacitors must be stored in accordance capacitors. with 40 CFR 761.65. (3) Employers must maintain all personal protective e. All capacitors must be transported to and disposed equipment to ensure that they will be in proper working of at a waste disposal facility approved by the EPA for order when needed. PCBs. (4) Education of all personnel must include information f. Sealed containers of small capacitors may be on emergency procedures in the event of a spill; transported by the owner or by an EPA-approved PCB instruction on the handling of leaks and spills; decon­ transporter, in accordance with 40 CFR 761, subpart K. tamination procedures; fire-fighting equipment location 118.3(4) Spills. Any spills from leaking or cracked and use; first-aid procedures, equipment and use; capacitors must be handled by placing the capacitor and instruction on the odor properties of PCBs that will help any contaminated rags, clothing, and soil into a container workers detect unseen leaks or spills; and instruction for immediate shipment to an EPA-approved waste to all personnel coming in contact with capacitors or PCB disposal facility. In the event of a spill, the facility which 84 FILED IAB 7/11/90 ENVIRONMENTAL PROTECTION COMMISSION[567] (cont’d) handles, stores or transports the PCB-contaminated CHAPTER 11 materials must notify the department of natural INHERITANCE TAX PAYMENTS resources (515) 281-8694, and the local police department or the office of the affected county of occurrence of a 420—11.1(450) Authority of executive council. Iowa hazardous condition as soon as possible, but no later than Code section 450.6 authorizes the executive council to six hours after the onset or discovery of a spill. allow a beneficiary, heir, surviving joint tenant or other 118.3(5) Shredding of white goods. Fluff from the transferee who transfers real property or tangible shredding of white goods must be sampled quarterly for personal property to the state of Iowa or its political the presence of PCBs. If the fluff contains less than subdivisions to receive a tax credit against inheritance 50ppm PCB, it may be landfilled at a permitted landfill tax liability to the extent of the value of the property under a special waste authorization (SWA) from the transferred, provided the property is used for public department of natural resources. If the fluff contains purposes. If the transfer is to be made to a political levels of contamination 50ppm or higher, it must be subdivision, the governing body thereof must approve treated in a manner in accordance with 40 CFR 761.125 the transfer prior to a request for approval by the council. on disposal of free-flowing PCBs. The council is not required to approve the tax credit [Filed 6/22/90, effective 8/15/90] for such transfers, but can do so in the exercise of [Published 7/11/90] reasonable discretion. 420—11.2(450) Decedent’s gross estate. Transfers to Editor’s NOTE: For replacement pages for IAC, see.IAC be eligible for the tax credit must consist of property Supplement, 7/11/90. that is included in the decedent’s gross estate for Iowa inheritance tax purposes. 420—11.3(450) Value of property. The value of the property for payment of the tax and the tax credit is ARC 1035A the same as its value established for inheritance tax purposes. If the value of the property transferred exceeds EXECUTIVE COUNCIL[420] the tax liability, the excess value shall not be refunded. Adopted and Filed 420—11.4(450) Prior tax payment. If the inheritance Pursuant to the authority of Iowa Code section 17A.3, tax has been paid and the payment is not excessive and, the Iowa Executive Council hereby adopts new Chapter therefore, not subject to refund under Iowa Code 11, “Inheritance Tax Payments,” Iowa Administrative subsection 450.94(3), the council will not approve, as a Code. tax credit, any property transfer as a substitute for the Notice of Intended Action was published in the Iowa prior tax payment. Administrative Bulletin on December 27, 1989, as ARC 420—11.5(450) Real property and tangible personal 528A. These rules were adopted by the Executive property. The tax credit is applicable for transfers of Council June 18, 1990. real property or of tangible* personal property located The purpose of this chapter is to implement Iowa Code in Iowa. Transfers of intangible property or of property section 450.6 to provide guidelines for taxpayers desiring located outside of Iowa will never qualify for the tax to transfer property in a decedent’s estate to the State credit. of Iowa or any of its political subdivisions in payment 11.5(1) Real property. The executive council will not of the Iowa inheritance tax. These guidelines specify the approve a credit for a transfer of a joint interest in real kinds of property that are eligible for payment of the property or for property which is encumbered by liens. inheritance tax, the purposes for which the transfer can However, the council may approve a credit for an interest be made and the procedure required before the transfer in real property which is less than full legal and equitable can be approved. title if the interest is an easement for public access, a The new chapter will not necessitate additional conservation or preservation easement, dedication for expenditures by political subdivisions or agencies and preserves or for other public use, or other similar interest entities which contract with political subdivisions. which by virtue of the location and nature of the property Three primary changes have been made since the is of significant, unique value to the public or to the Notice of Intended Action. Subrule 11.5(1) was changed environment. Property encumbered by liens of creditors to permit a credit for a transfer of an easement, will not qualify for the tax credit. Proposals to transfer dedication for preserves, or similar interest which is of a partial interest will not qualify for the tax credit. significant, unique value to the public or the Example: A and B inherit a remainder interest in environment. land from an estate. C is the life tenant. Any request Rule 11.6(450) denies a tax credit where the property for tax credit for a proposal which would only transfer is to be transferred or sold. This rule was clarified to the remainder interest or only transfer a life estate will permit a donee agency to retain authority to dispose of not be approved by the council. If A, B, and C propose a gift in certain circumstances. This rule was also to transfer their entire interests, such transfers would changed to permit a credit for personal property of become eligible for the tax credit. significant cultural as well as historical value. Example: D inherits land from an estate. The land Rule 11.11(450) has been added to provide for notice is encumbered by a mortgage lien. D proposes to transfer to a state agency transferee when a tax credit application the land to a school district, which has accepted the is on the executive council agenda. transfer, and requests a tax credit. Since the land is These rules are intended to implement Iowa Code encumbered with a mortgage lien, the council will not sections 17A.3 and 450.6. approve the tax credit. These rules shall become effective August 15,1990. Example: E and F inherit land from an estate as The following new chapter is adopted: tenants in common. E proposes to transfer E’s interest IAB 7/11/90 FILED 85

EXECUTIVE COUNCIL[420] (cmd’d)

to the state. Because the proposal is to transfer a partial 420—11.8(450) Eligible taxes. The tax credit provi­ interest, the council will not approve the tax credit. sions in section 450.6 are applicable to the Iowa 11.5(2) Tangible personal property. Tangible personal inheritance tax imposed by Iowa Code chapter 450. The property is tangible property which can be touched or taxes imposed by Iowa Code chapter 450A (generation handled. It is corporeal and is contrasted with intangible skipping tax) and by Iowa Code chapter 451 (Iowa estate property. Intangible property includes but is not limited tax) will not be eligible for the tax credit for property to cash, choses in action, copyrights, patents, stocks, transfers. bonds, trademarks, or annuities. Ramco, Inc. v. Director, 420—11.9(450) Partial payment. If the value of the Department of Revenue, 248 N.W.2d 122 (Iowa 1976). property to be transferred is less than the inheritance 420—11.6(450) Type, use, and purpose of transfers. tax liability of the beneficiary, heir, surviving joint The transferred property for which tax credit will be tenant or other transferee who proposes such transfer claimed should be useful to the public generally. Thus, and if the council approves the transfer, the remaining for example, transfers of real property to be dedicated portion of the liability shall be paid to the department and used as a park or wildlife area will generally be of revenue and finance before the tax credit will be approved by the council for the tax credit. In addition, granted. at the time of the transfer, the governmental entity receiving the property should intend to own and use it 420—11.10(450) Timeliness of application. An appli­ for a public purpose for an indefinite period of time. cation for approval of a proposed transfer shall be filed The council will not approve a tax credit if the property with the council within eight months of the death, of the transferred is to be sold or otherwise transferred again. decedent, unless, for good cause, the council extends the However, mere retention of authority to dispose of or period for filing such application. In no case will such transfer property does not preclude the council from extension be granted beyond the due date for the filing granting the credit if the donee has rules or policies to of the inheritance tax return and due date for payment assure that the property may only be transferred to a of the tax or, if applicable, an extended date obtained similar entity or affiliated organization for a similar pursuant to department of revenue and finance rule purpose or sold in a reasonable manner with the .proceeds 701—86.2(13), Iowa Administrative Code. pledged to the same purpose as the original gift. The 420—11.11(450) Notice to donee agencies. Any state property transferred should have real significance to the agency which is the transferee of the property in question public and should be permanently used for the public’s shall receive notice of any pending application on the benefit. Personal property transferred should have agenda of the executive council. significant historical or cultural value or be transferred 420—11.12(450) Scope of rules. These rules do not and used in association with any real property trans­ foreclose any transfers of property of any kind to the ferred for which the council will approve the tax credit. state or its political subdivisions. These rules are only Example: G, a beneficiary of an estate, proposes to concerned with whether such transfers will qualify for transfer land to a city which has accepted the transfer, the tax credit authorized by section 450.6. The council’s and upon which the city will build a recreational facility. intent is to demonstrate that its discretion to approve Provided all other criteria are met, the council will the tax credit will not be broadly exercised. generally approve the tax credit with respect to such transfer: 420—11.13(450) Forms. The application to pay Example: H, a Surviving joint tenant, proposes to inheritance tax by a transfer of property and the transfer property held in joint tenancy, consisting of ten certifications required by these rules shall be made on acres of land, to a county which has accepted the transfer. forms prescribed by the executive council. The following The county intends to sell the land and use the proceeds forms* are hereby adopted. to purchase other property that will be used for a public These rules are intended to implement Iowa Code purpose. Since the county will not use the transferred sections 17A.3 and 450.6. property for an indefinite period of time, the council will [Filed 6/19/90, effective 8/15/90] not approve the tax credit. [Published 7/11/90] Example-. I, an heir, proposes to transfer assets received from an estate. These transfers will be a pickup EDITOR’S NOTE: For replacement pages for IAC, see I AC truck to a county, a computer to a school district, a carpet Supplement, 7/11/90. *Note: Forms are being omitted from the Iowa to a city community center, a portrait of someone to hang on a courthouse wall, decedent’s clothing to a county Administrative Bulletin pursuant to Iowa Code section hospital, and some silver and gold coins to a drainage 17A.6(3). The forms will appear in the Iowa Adminis­ district. All political subdivisions have accepted these trative Code. transfers. The personal property does not have signif­ icant historical value. The council will not approve the tax credit for any of these transfers as they do not ARC 1018A constitute personal property of significant historical value or the transferred property will not be used by HUMAN SERVICES the political subdivisions for an indefinite period of time. DEPARTMENT[441] 420—11.7(450) Political subdivisions. A political Adopted and Filed subdivision of the state of Iowa is a geographic or Pursuant to the authority of Iowa Code sections 217.6 territorial portion of the state in which local governmen­ and 239.18, the Department of Human Services hereby tal functions are performed. An agency or instru­ amends Chapter 41, “Granting Assistance,” and Chapter mentality of a political subdivision is part of the political 130, “General Provisions,” appearing in the Iowa subdivision. 1976 Op. Att’y Gen. 823. Administrative Code. 86 FILED IAB 7/11/90 HUMAN SERVICES. DEPARTMENT[441] (cord’d)

The Council on Human Services adopted these ARC 1026A amendments June 13, 1990. Notice of Intended Action regarding these amendments was published in the Iowa HUMAN SERVICES Administrative Bulletin on April 18,1990, as ARC 811 A. The Omnibus Budget Reconciliation Act of 1989, DEPARTMENT[441] Public Law 101-239, Section 10405, requires that Agent Adopted and Filed Orange settlement payments be excluded from countable Pursuant to the authority of Iowa Code section 249A.4, income and resources under Aid to Dependent Children the Department of Human Services hereby amends (ADC), Supplemental Security Income (SSI), Medicaid, Chapter 76, “Application and Investigation,” appearing food stamps, and service programs. These amendments in the Iowa Administrative Code. exempt payments from Agent Orange settlement funds The Council on Human Services adopted this rule on as income and resources for ADC and as income for the June 13, 1990. Notice of Intended Action regarding this service programs. Resources are not considered for the rule was published in the Iowa Administrative Bulletin service programs. ADC-related Medicaid follows ADC on May .2, 1990, as ARC 850A. This amendment is policy and SSI-related Medicaid follows SSI policies, so identical to that published under Notice. no rules are necessary for Medicaid. Food stamps will This amendment waives the face-to-face interview. not need a rule as federal regulations allow for exclusion requirement in certain circumstances when processing of income and resources as required by federal statute. ADC-related Medicaid applications. In addition these amendments correct several incorrect Currently, Aid to Dependent Children (ADC) policy references. requiring a face-to-face interview before approving an These rules are identical to those published under application is followed when determining eligibility for Notice of Intended Action.. ADC-related Medicaid coverage groups. The Depart­ These rules are intended to implement Iowa Code ment has determined that a face-to-face interview is sections 234.6 and 239.5. impractical and the interview may be waived in the These rules shall become effective September 1, 1990. following situations: The following amendments are adopted: 1. When a service worker or juvenile court officer is Item 1. Amend subrule 41.3(3), paragraph “b,” as completing an application for Medicaid on behalf of a follows: child in a foster care placement and the parent or b. When an individual is out of the home to secure caretaker of the child is noncooperative. In this situation, education or training, as defined for children in 41.4(1)%^ it is not essential for the income maintenance worker “e” and for adults in 55.2(249C) 93.14(1), first sentence, to have a face-to-face contact with a department social as long as the caretaker relative retains supervision of worker or juvenile court officer in order to obtain the child. additional information to determine Medicaid eligibility. 2. When, due to the distance between a child’s county Item 2. Amend rule 441—41.7(239) as follows: Amend subrule 41.7(2), paragraph “m,” subpara­ of residence and the child’s institutional setting, it is graph (1), as follows: difficult for the parent or representative of the child to (1) $41 plus an amount equivalent to the monthly thrifty attend the face-to-face interview. A telephone interview food plan maximum food stamp allotment in the food may be held in lieu of a face-to-face interview in order stamp program for a one-member household for a to process the application. boarder and roomer or an individual in the home to This rule is intended to implement Iowa Code section receive nursing care, or $41 for a roomer, or an amount 249A.4. equivalent to the monthly thrifty feed plan maximum This rule shall become effective September 1,1990. food stamp allotment in the food stamp program for a The following amendment is adopted: one-member household for a boarder. Amend subrule 76.2(1) as follows: Amend subrule 41.7(6) by adding the following new 76.2(1) In processing applications for Medicaid which paragraph: are related to the aid to dependent children (ADC) w. Payments made from the Agent Orange Settlement program, interviews shall be held in accordance with Fund or any other fund established pursuant to the ADC policy found in subrule 40.4(2). However, the face- settlement in the In re Agent Orange product liability to-face interview requirement may be waived in the litigation, M.D.L. No. 381 (E.D.N.Y.). following situations: Amend subrule 41.7(7), paragraphs “k” and “n,” as a. When the application for assistance has been follows: completed by an employee of the department or a juvenile k. The training allowance issued by the rehabilitation court officer on behalf of a child, in a foster care or education and services branch of the department of subsidized adoption placement and the parent(s) or pu-blic instruction division of vocational rehabilitation, caretaker of the child is unwilling to cooperate in the department of education. eligibility process. n. The training allowance issued by the commission b. When the application for assistance has been made department for the blind. on behalf of a child in a psychiatric institution for children (PMIC) in a county other than a county in which the Item 3. Amend subrule 130.3(3) by adding the parent(s) or caretaker resides and the distance is such following new paragraph: that the parent(s) or caretaker cannot reasonably be w. Agent Orange settlement payments. [Filed 6/14/90, effective 9/1/90] [Published 7/11/90] EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement, 7/11/90. IAB 7/11/90 FILED 87 HUMAN SERVICES DEPARTMENT[441] (cant’d) expected to commute to attend the face-to-face interview. 9. A designation of a licensed Iowa resident agent A telephone interview shall be conducted in lieu of a face- qualified to write excess and surplus lines insurance. to-face interview in this situation. 10. A synopsis of current reinsurance treaties in force. [Filed 6/14/90, effective 9/1/90] 11. Remittance of a $50 filing fee. [Published 7/11/90] In addition to the above requirements, the insurer shall have minimum capital and surplus of $5 million and Editor’s Note: For replacement pages for IAC, see IAC have been actively in operation for at least three years Supplement, 7/11/90. without significant changes in ownership or manage­ ment during the three-year period. These financial and management requirements may be waived by the commissioner upon a finding that the insurer will be offering coverage in a line of insurance for \yhich there ARC 1049A is an unavailability of capacity and an extraordinary need for coverage in this state. The commissioner may INSURANCE DIVISION[191] require other information as deemed necessary. Adopted and Filed [Filed 6/22/90, effective 8/15/90] Pursuant to the authority of Iowa Code section 505.8, [Published 7/11/90] the Iowa Division of Insurance hereby adopts amend­ EDITOR’S Note: For replacement pages for IAC, see IAC ments to Chapter 21, “Surplus Lines Requirements,” Supplement, 7/11/90. Iowa Administrative Code. •NOTE: Forms are being omitted from the Iowa Administrative Bulletin pursuant These amendments change all references in the to Iowa Code section 17A.6(3). They will appear in the Iowa Administrative Code. chapter from “unauthorized 'insurer” to “nonadmitted insurer”. The amendments also set out revised informa­ tional filings and qualifications for surplus lines insurers wishing to qualify in Iowa. Notice of Intended Action was published in the May 16,1990, Iowa Administrative Bulletin as ARC 879A. ARC 1050A The only change to the amendments as published under Notice is to permit a waiver of the financial and INSURANCE DIVISION [191] management requirements for surplus lines insurers in Adopted and Filed the event an insurer will be offering coverage in a line Pursuant to the authority of Iowa Code section 505.8, of insurance for which there is a shortage of capacity the Iowa Insurance Division hereby adopts a new Chapter and an extraordinary need for coverage in this state. 28, “Credit Life and Credit Accident and Health This rule is intended to implement Iowa Code section Insurance,” Iowa Administrative Code. 515.149. Notice of Intended Action was published in the May This rule will become effective August 15,1990. 16,1990, Iowa Administrative Bulletin as ARC 883A. The following amendments are adopted: A few changes to the rule as Noticed have been made ITEM 1. Amend 191—Chapter 21 by striking as a result of comments. Their effect is not to make the “unauthorized” and inserting in lieu thereof “nonadmit­ rule more restrictive. ted” wherever it appears. Rule 28.1(509) is clarified so as to make the chapter inapplicable to credit insurance where there is no charge Item 2. Rescind rule 191—21.5(515) and insert in lieu to the debtor or where the transaction is not related to thereof the following: an agreement or a plan for insuring debtors. 191—21.5(515) Procedures for qualification as a The definition of “credit accident and health insurance” nonadmitted insurer. Any insurer who wishes to qualify in rule 28.2(509) is amended to clarify the technical point under Iowa Code section 515.147 as a nonadmitted that such insurance is not written on the lives of debtors. insurer shall make an application. The application shall The time periods in 28.3(3)“a,” 28.10(2) and 28.11(4) contain the following information: relating to delivery of the policy or certificate, review 1. A certificate of compliance from the state of domicile. of loss ratios, and the effect of deviated rates are 2. An executed power of attorney. This document shall amended. be in a form which is found in the appendix to this The last unnumbered paragraph of subrule 28.3(10) chapter.* is deleted to conform with the model credit life and 3. A biographical affidavit of directors and principal accident and health regulation of the National Associ­ officers. This document shall be in a form which is found ation of Insurance Commissioners. in the appendix to this chapter.* The introductory paragraph of subrule 28.8(2) is 4. A copy of the insurer’s annual statement for the revised to conform with the model. last preceding calendar year. Applications received Revision is made in paragraph 28.8(2)“a” relating to between November 1 and December 31 will not be preexisting conditions. examined until an annual statement for the current Subrule 28.13(7) is revised to clarify that it is failure calendar year is available. to make claims adjusting not in reasonable conformity 5. The insurer’s most recent calendar year quarterly with policy provisions, and not simply adjusting in the financial statement. interest of the lender/agent, which is precluded. 6. A certified copy of the most recent state of domicile Subrule 28.13(9) is revised to make clear that for examination report. purposes of determining unfair discrimination, expenses . 7. A current certified public accountant audit report. and underwriting characteristics are to be considered 8. A marketing plan of operation. along with mortality and morbidity experience. 88 FILED IAB 7/11/90

INSURANCE DIVISION[191] (cont’d)

These rules are intended to implement Iowa Code set by the creditor) is generally made available to the chapter 509. extent that any outstanding balance is repaid. These rules will become effective January 1, 1991. “Person” means any natural person, partnership, The following new chapter is adopted: corporation or other business entity. CHAPTER 28 191—28.3(509) Rights and treatment of debtors. CREDIT LIFE AND CREDIT 28.3(1) Multiple plans of insurance. If a creditor has ACCIDENT AND HEALTH INSURANCE available to the debtors more than one plan of credit life insurance or more than one plan of credit accident 191—28.1(509) Purpose. The purpose of this chapter and health insurance, the debtors must be informed of is to protect the interests of debtors and the public in all plans applicable to the credit transaction. All relevant this state by providing a system of rate, policy form, plans shall be fully disclosed to the consumer prior to and operating standards for the transaction of credit life the preparation of any insurance documents and before and credit accident and health insurance. Compliance the consumer becomes obligated on the credit with any disclosure requirements in this chapter shall transaction. not be deemed to be in compliance with the requirements 28.3(2) Substitution. When a creditor requires credit set out in the Iowa consumer credit code and supporting life insurance, credit accident and health insurance, or rules. This chapter shall not be applicable to coverage both, as additional security for an indebtedness, the provided by creditors at their own expense where no debtor shall be given the option of furnishing the required charge is made to the insured debtors for their coverage amount of insurance through existing policies of or to coverage which is an isolated transaction on the insurance owned or controlled by the debtor or by part of the insurer not related to an agreement or a plan procuring and furnishing the required coverage through for insuring debtors of a creditor. any insurer authorized to transact insurance business 191—28.2(509) Definitions. in this state. If this subrule is applicable, the debtor shall “Consumer credit transaction” shall have the same be informed by the creditor of the right to provide definition as set out in Iowa Code section 537.1301(11) alternative coverage before the transaction is completed. to (14). 28.3(3) Evidence of coverage. • “Credit accident and health insurance” means a. All credit insurance shall be evidenced by an insurance on a debtor or debtors to provide indemnity individual policy, or, in the case of group insurance, by for payments becoming due on a specific loan or other a certificate of insurance, which individual policy or credit transaction while the debtor is disabled as defined group certificate of insurance shall be delivered to the in the policy. debtor at the time the indebtedness is incurred, except “Credit insurance” means both credit-life and credit as provided in the following. If the individual policy or accident and health insurance. group certificate of insurance is not delivered to the “Credit life insurance” means insurance on the lives debtor at the time the indebtedness is incurred, a copy of debtors pursuant to or in connection with a specific of the application for the policy or a notice of proposed loan or other credit transaction. insurance shall be delivered to the debtor at the time “Creditor” means the lender of money or vendor or the indebtedness is incurred. Upon acceptance of the lessor of goods, services or property, rights or privileges, insurance by the insurer and within 30 days of the date for which payment is arranged through a credit upon which the indebtedness is incurred, the insurer transaction, or any successor to the right, title or interest shall cause the individual policy or group certificate of of any lender, vendor, or lessor, and an affiliate, associate insurance to be delivered to the debtor. or subsidiary of any of them or any director, officer or b. Each individual policy or group certificate of credit employee of any of them or any other person in any way insurance delivered or issued for delivery in this state associated with any of them. shall, in addition to the other requirements of law, set “Credit transaction” means any transaction by the forth: terms of which the repayment of money loaned or loan (1) The name and home office address of the insurer commitment made, or payment for goods, services or and, on group certificates, an identification of the master properties sold or leased, is to be made at a future date policy; or dates. (2) The identity of the insured debtor by name or any “Debtor” means a borrower of money or a purchaser other reasonable alternative method of identification or lessee of goods, services, property, rights or privileges approved by the insurance commissioner; for which payment is arranged through a credit (3) The amount of premium or identifiable insurance transaction. charge to the debtor, separately for the credit life “Indebtedness” means total amount repayable includ­ insurance and credit accident and health insurance. ing principal, interest and finance charges. (4) A description of the coverage including the amount “Lender-agent” means a creditor, as defined herein, and term thereof; who offers credit insurance or arranges for the offering (5) Any exceptions, limitations and restrictions; of credit insurance to debtors. (6) A statement that the benefits will be paid to the “Open-end credit” means credit extended by a creditor creditor to reduce or extinguish the indebtedness, and under an agreement in which: any excess shall be paid to a beneficiary, other than the 1. The creditor reasonably contemplates repeated creditor, named by the debtor or to the debtor’s estate; transactions; c. A policy, certificate of credit insurance or notice 2. The creditor imposes a finance charge from time of proposed insurance shall not contain provisions which to time on an outstanding unpaid balance; and would encourage misrepresentation or which are unjust, 3. The amount of credit that may be extended to the unfair, inequitable, misleading, deceptive or contrary to debtor during the term of the agreement (up to any limit law or to the public policy of this state. IAB 7/11/90 FILED 89

INSURANCE DIVISION[191] (cont’d)

d. A credit life insurance or credit accident and health creditor shall not be designated as claim representative insurance policy violates paragraph “c” if it provides an for the insurer in adjusting claims. However, a group amount of insurance less than the amount necessary to policyholder may, by arrangement with the group discharge the indebtedness, when it does not set forth insurer, pay or credit the claims due to the group clearly the information on the insured debtor’s policy policyholder subject to audit and review by the insurer. or certificate in not less than 10-point bold-faced type 28.3(5) Termination of group credit insurance policy. or in some other prominent method approved by the a. If a debtor is covered by a group credit insurance commissioner. policy providing for the payment of single premiums to e. A notice of proposed insurance or a copy of the the insurer, then provision shall be made by the insurer application for the policy, when delivered pursuant to that in the event of termination of the policy for any paragraph “a” as evidence of coverage, violates para­ reason, insurance coverage with respect to any debtor graph “c” above, if it does not set forth the name and insured under the policy shall be continued for the entire home office of the insurer; the name or names of the period for which the single premium has been paid. debtor; the premium or amount of payment by the debtor, b. If a debtor is covered by a group credit insurance separately for credit life or credit accident and health policy providing for the payment of premiums to the insurance; the amount, term and a brief description of insurer on a monthly outstanding balance basis, then the coverage provided. The copy of the application for, the policy shall provide that, in the event of its or notice of proposed insurance, shall also refer termination for whatever reason, the termination notice exclusively to insurance coverage and shall be separate shall be given to the insured debtor at least 30 days prior and apart from the loan, sale or other credit statement to the effective date of termination except where of account, instrument, or agreement, unless the replacement of the coverage by the same or another information required by this subrule is prominently insurer in the same or greater amount takes place disclosed. without lapse of coverage. The notice required in this f. If an insurer other than the insurer named on the paragraph shall be given by the insurer or, at the option application, notice of proposed insurance, policy or of the insurer, by'the creditor. certificate of insurance accepts the risk, the debtor shall 28.3(6) Interest on premiums. If the creditor adds receive a new policy or certificate of insurance setting identifiable insurance charges or premiums for credit forth the name and home office address of the substituted insurance to the indebtedness and any direct or indirect insurer and the amount of the premium to be charged . finance, carrying, credit or service charge is made to and, if the amount of the new premium is less, an the debtor on the insurance charges or premiums, the appropriate refund shall be made. creditor must remit and the insurer shall collect the g. If an insured debtor states that the debtor is under premium within 60 days after it is added to the the maximum age for insurance, but is not, the insurer indebtedness. shall return the premium when this is discovered and 28.3(7) Renewal or refinancing of the indebtedness. no benefit will be paid. If the indebtedness is discharged due to renewal or h. If the insurer accepts premiums where the debtor refinancing prior to the scheduled maturity date, the has correctly stated the.debtor’s age, insurance coverage insurance in force shall be terminated before any new shall be effective regardless of age limitations or age insurance may be issued in connection with the renewed exclusions unless a premium refund is made within 30 or refinanced indebtedness. In all cases of termination days following the date the application or notice of prior to scheduled maturity, a refund shall be paid or proposed insurance is received by the insurer. credited to the debtor as provided in rule 28.8(509). In i. No statements made by a debtor shall be used by any renewal or refinancing of the indebtedness, the an insurer as a basis for denying a claim unless the effective date of'the coverage as respects any policy statement is contained in a written application for provision shall be deemed to be the first date on which insurance signed by the debtor, a copy of which is or the debtor became insured under the policy covering the has been ,furnished to the debtor or to the debtor’s indebtedness which was renewed or refinanced, at least beneficiary, and the form of which has been filed with to the extent of the amount and term of the indebtedness and approved by the insurance commissioner for use in outstanding at the time of renewal and refinancing of connection with the policy form in question. the debt. This subrule shall apply to all consumer credit j. An application must identify the insurer providing transactions renewed pursuant to Iowa Code section the coverage. An application signed by the debtor, is 537.2504 or 537.2505. required whenever the policy contains an exclusion on 28.3(8) Maximum aggregate provisions. A provision account of age or other eligibility requirement. in a policy or certificate that sets a maximum limit on 28.3(4) Claims processing. All claims shall be total payments must apply only to that policy or promptly reported to the insurer or its designated claim certificate. representatives, and the insurer shall maintain adequate 28.3(9) Voluntary prepayment of indebtedness. If a claim files. All claims shall be settled as soon as possible debtor prepays the indebtedness other than as a result and in accordance with the terms^of the insurance of death or through a lump-sum disability payment: contract, but in no event shall claims be settled more a. Any credit life insurance covering the indebtedness than 30 days after notification of the claim and shall be terminated and an appropriate refund of the compliance by the debtor of all requirements under the credit life insurance premium shall be paid to the debtor policy. All claims shall be paid or credited to the claimant in accordance with rule 28.9(509); and pursuant to the policy provisions, or upon direction of b. Any credit accident and health insurance covering the claimant to one specified. No plan or arrangement the indebtedness shall be terminated and an appropriate shall be used whereby any person, firm or corporation refund of the credit accident and health insurance other than the insurer or its designated claim represen­ premium shall be paid to the debtor in accordance with tative shall be authorized to settle or adjust claims. The rule 28.9(509). If a claim under the coverage is in progress 90 FILED IAB 7/11/90

INSURANCE DIVISION[191] (cont’d) at the time of prepayment, the amount of refund may No person shall, directly or indirectly, act within this be determined as if the prepayment did not occur until state as agent in receiving or procuring applications for the payment of benefits terminates. No refund need be credit insurance for any company until procuring from paid during any period of disability for which credit the insurance commissioner a license to act as agent for accident and health benefits are payable. A refund shall that company. be computed as if prepayment occurred at the end of 191—28.5(509) Determination of reasonableness of the disability period. benefits in relation to premium charge. 28.3(10) Involuntary prepayment of indebtedness. If 28.5(1) General standard. Under the credit insurance an indebtedness is prepaid by the proceeds of a credit law, benefits provided by credit insurance policies must life insurance policy covering the debtor or by a lump­ be reasonable in relation to the premium charged. This sum payment of a disability claim under a credit requirement is satisfied if the premium rate charged insurance policy covering the debtor, then it shall be develops or may be reasonably expected to develop a loss the responsibility of the insurer to see that the following ratio of not less than 50 percent. With the exception of are paid to the insured debtor, if living, or the beneficiary, deviations approved under rule 28.11(509), the rates other than the creditor, named by the debtor or to the shown in rules 28.7(509) and 28.8(509), as adjusted debtor’s estate: pursuant to rule 28.10(509), shall be conclusively a. In the case of prepayment by the proceeds of a credit presumed to satisfy this general standard. life insurance policy, or by the proceeds of a lump-sum 28.5(2) Nonstandard coverage. If any insurer files for total and permanent disability benefit under credit life approval of any form providing coverage more restrictive coverage, an appropriate refund of the credit accident than that described in rules 28.7(509) and 28.8(509), the and health insurance premium in accordance with rule insurer shall demonstrate to the satisfaction of the 28.9(509); insurance commissioner that the premium rates to be b. In the case of prepayment by a lump-sum disability charged for the restricted coverage will develop or may claim, an appropriate refund of the credit life insurance be reasonably expected to develop a loss ratio not less premium in accordance with rule 28.9(509); than that contemplated for standard coverage at the c. In either case, the amount of the benefits in excess premium rates described in these rules. of the amount required to repay the indebtedness after 28.5(3) Coverage without, separate charge. If no crediting any unearned interest or finance charges. specific charge is made to the debtor for credit insurance, 28.3(11) Amounts to be insured. the standards of this rule are not required to be used; a. Credit life insurance benefits shall be consistent with ' but any premium rates resulting from the standards used the premium charge. Credit life insurance may .provide which exceed the premium rate standards set out in rules benefits in amounts which do not exceed, but may be 28.7(509) and 28.8(509) must be filed with the insurance less than, the scheduled amount of indebtedness, commissioner. For purposes of this subrule, it will be including unearned interest or finance charges, or the considered that the debtor is charged a specific amount actual amount of unpaid indebtedness, whichever is for insurance if an identifiable charge for insurance is greater. disclosed in the credit or other instrument furnished the • b. Credit accident and health insurance may provide debtor which sets out the financial elements of the credit benefits not exceeding the amount of outstanding transactions, or if there is a differential in finance, indebtedness inclusive of unearned interest or finance interest, service or other similar charge made to debtors charges. who are in like circumstances, except for their insured or noninsured status. 191—28.4(509) Policy forms and related material. 28.6 Reserved. 28.4(1) Permissible forms. Credit life insurance and credit accident and health insurance shall be issued only 191—28.7(509) Credit life insurance rates. in the following forms: 28.7(1) Premium rate. Credit life insurance premium a. Individual policies of life insurance issued to debtors rates for the insured portion of an indebtedness repayable on the term plan; in equal monthly installments, where the insured portion of the indebtedness decreases uniformly by the amount b. Individual policies of accident and health insurance of the monthly installment paid, shall be as set forth issued to debtors on a term plan or disability benefit in paragraphs “a” and “b” below. Paragraph “c” below provisions in individual policies of credit life insurance; refers to premium rates for other types of benefits either c. Group policies of life insurance issued to creditors alone or in combination with the type of benefits providing insurance upon the lives of debtors on the term applicable to paragraphs “a” and “b.” plan; a. $.89 per month per $1,000 of outstanding principal d. Group policies of accident and health insurance balance if premiums are payable on a monthly outstand­ issued to creditors on a term plan insuring debtors or ing balance basis. disability benefit provisions in group credit life insurance b. Gross coverage — decreasing term. If premiums policies to provide such coverage. are payable on a single-premium basis and the amount 28.4(2) Filing requirements. All policies, certificates of insurance decreases in equal monthly amounts, the of insurance, notices of proposed insurance, applications prima facie premium rate shall be $.58 per annum per for insurance, endorsements, disclosure forms and riders $100 of initial insured indebtedness. delivered or issued for delivery in this state must be filed c. Gross coverage — level term. If premiums are and approved by the insurance commissioner prior to payable on a single-premium basis when the benefit use of the form. provided is level term, the prima facie rate shall be $1.07 28.4(3) Issuance of policies. All policies of credit life per annum per $100 of initial insured indebtedness. insurance and credit accident and health insurance shall d. Joint coverage on either of the bases in paragraph be delivered or issued for delivery in this state only by “a,” “b,” or “c” of this subrule shall be 166 percent of an insurer authorized to do an insurance business therein. the specific rate for that type of coverage. IAB 7/11/90 FILED 91 INSURANCE DIVISION[191] (cant’d)

e. A combination of the appropriate rate for level term Credit accident and health insurance rates for and the appropriate rate for decreasing term (with equal durations less than 12 months shall be derived by decrements), if coverage provided is a combination of multiplying the number of months by 1/12 of the 12- level term and decreasing term (with equal decrements). month rate. Rates for durations of more than 12 months f. If the benefits provided are other than those but less than 60 months which are not listed above shall described in the introduction to this subrule, premium^ be derived by straight-line interpolation between the rates for the benefits shall be actuarially consistent with listed rates, with the results rounded to the nearest cent. the rates provided in paragraphs “a,” “b,” “c,” and “d” Rates for durations exceeding 60 months shall be derived above. by adding 3 cents to the 60-month rate for each month 28.7(2) The premium rates in 28.7(1) shall apply to in excess of 60 months and rounding to the nearest cent. policies providing credit life insurance to be issued with b. If premiums are paid on the basis of a premium or without evidence of insurability, to be offered to all rate per month per thousand dollars of outstanding debtors, and containing: insured indebtedness, these premiums shall be computed a. No exclusions other than suicide within six months according to the following formula or according to a of the incurred indebtedness; and formula approved by the insurance commissioner which b. Either no age restrictions or age restrictions making produces rates actuarially equivalent to the single­ ineligible for coverage debtors 65 or over at the time premium rates: the indebtedness is incurred or debtors having attained Opn~ 20 SPn age 66 or over on the maturity date of the indebtedness. n+1 c. Insurance written in connection with an open-end Where SPn = Single-Premium Rate per $100 of initial credit plan may exclude from the classes eligible for insured indebtedness repayable in n equal monthly insurance classes Of debtors determined by age, and installments. provide for the cessation of insurance or reduction in Op = Monthly Outstanding Balance Premium Rate per the amount of insurance upon attainment of not less than $1,000. age 65. n = Original repayment period, in months. d. On insurance written in connection with closed-end c. The actuarial equivalent of paragraphs “a” and “b” credit plans and open-end credit plans where the amount shall be used if the coverage provided is a constant of insurance is based on or limited to the outstanding maximum indemnity for a given period of time. unpaid balance, no provision excluding or denying a d. An appropriate combination of the premium rate claim for death resulting from a preexisting condition for a constant maximum indemnity for a given period except for those conditions for which the insured debtor of time and the premium rate for a maximum indemnity received medical diagnosis or treatment within six which decreases in even amounts per month, if the months preceding the effective date of coverage and coverage provided is a combination of a constant which caused or substantially contributed to the death maximum indemnity for a given period of time after of the insured debtor within six months following the which the maximum indemnity begins to decrease in effective date of coverage. The effective date of coverage even amounts per month. for each part of the insurance attributable to a different e. If the benefits provided are other than those advance or charge to the plan account is the date on described in paragraph “a” above, rates shall be which the advance or charge is posted to the plan account. actuarially consistent with rates provided in paragraphs Other more restrictive provisions may be used subject “a,” “b,” “c,” and “d.” to appropriate rate adjustment approved by the - f. The outstanding balance rate for credit accident and insurance commissioner. health insurance may be either a term-specified rate or 191—28.8(509) Credit accident and health insurance. may be a single composite term outstanding balance rate 28.8(1) Premium rate. Credit accident- and health applicable to all loans made under open-end or closed- insurance premium rates for the insured portion of an end credit plans. indebtedness repayable in equal monthly installments, 28.8(2) The premium rates in 28.8(1) shall apply to where the insured portion of the indebtedness decreases all policies providing credit accident and health uniformly by the amount of the monthly installment paid, insurance, to be issued with or without evidence of shall be as set forth in paragraphs “a” and “b” below. insurability, and to be offered to all eligible debtors, and Paragraphs “c,” “d,”and “e” refer to premium rates for containing: other types of benefits either alone or in combination a. No provision excluding or denying a claim for with the type of benefits applicable to paragraphs “a” disability resulting from preexisting conditions except and “b.” for those conditions for which the insured debtor received a. If premiums are payable on a single-premium basis medical advice, diagnosis or treatment within six months for the duration of the coverage, the rates shall be as preceding the effective date of the debtor’s coverage and follows: which caused loss within the six months following the Single Premium Per $100 of Initial Insured effective date of coverage. On insurance written in Indebtedness connection with closed-end credit plans and open-end credit plans where the amount of insurance is based on Nonretroactive Retroactive or limited j;o the outstanding unpaid balance, the effective 14-Day 30-Day 14-Day 30-Day date of coverage for each part of the insurance Months Elimination Elimination Elimination Elimination attributable to a different advance or charge to the plan 12 $1.26 $0.72 $1.98 $1.53 account is the date on which the advance or charge is 24 $1.98 $1.44 $2.70 $2.25 posted to the plan account. 36 $2.70 $2.16 $3.42 $2.97 b. No other provision which excludes or restricts 48 $3.15 $2.61 $3.87 $3.42 liability in the eyent of disability caused in a specific 60 $3.51 $2.97 $4.23 $3.78 manner except that it may contain provisions excluding 92 FILED IAB 7/11/90 INSURANCE DIVISION[191] (cont’d)

or restricting coverage in the event of normal pregnancy publish the adjusted actual statewide prima facie rates and intentionally self-inflicted injuries. to be used by insurers during the next triennium. These c. No actively-at-work requirement more restrictive rates will reflect the difference between (a) actual claims than one requiring that the debtor be actively at work based on experience; and (b) expected claims based on at a full-time gainful occupation on the effective date the loss ratio standards set forth in rule 28.5(509) applied of coverage. “Full time” means a regular work week of -to the prima facie rates set forth in rules 28.7(509) and not less than 30 hours. A debtor shall be deemed to be 28.8(509). actively at work if absent from work due solely to regular 191—28.11(509) Use of rates — direct business only. day off, holiday or paid vacation. 28.11(1) As used in this rule: d. No age restrictions, or only age restrictions making “Earned premiums” means gross written premiums ineligible for coverage debtors 65 or over at the time minus refunds on terminations, with this result adjusted the indebtedness is incurred or debtors who will have for the change in unearned premium reserve. attained age 66 or over on the maturity date of the “Experience” means “earned premiums” and indebtedness. “incurred claims” during the experience period. e. A daily benefit equal in amount to one-thirtieth of “Experience period” means the most recent period of the monthly benefit payable under the policy for the time for which experience is reported, but not for a period indebtedness. longer than three full years. f. A definition of “disability” which provides that “Incurred claims” means total claims paid during the during the first 12 months of disability the insured shall experience period, adjusted for the change in claim be unable to perform the duties of the occupation at the reserve. time the disability occurred, and thereafter the duties 28.11(2) Use of prima facie rates. An insurer that files of any occupation for which the insured is reasonably rates or has rates on file that are not in excess of the fitted by education, training or experience. This prima facie rates shown in rules 28.7(509) and 28.8(509), paragraph shall not apply to lump-sum disability to the extent adjusted pursuant to rule 28.10(509), may coverage. use those rates without further proof of their g. Insurance written in connection with an open-end reasonableness. credit plan may exclude from the classes eligible for 28.11(3) Use of rates higher than prima facie rates. insurance classes of debtors determined by age and An insurer may file for approval of and use rates that provide for the cessation of insurance or reduction in are higher than the prima facie rates shown in rules the amount of insurance upon attainment of not less than 28.7(509) and 28.8(509), to the extent adjusted pursuant age 66. to rule 28.10(509), if it can be expected that the use of 191—28.9(509) Refund formulas. higher rates will result in a ratio of claims incurred to 28.9(1) Refund formulas must be filed with and premiums earned (assuming the use of the higher rates) approved by the insurance commissioner prior to use. that is not less than 50 percent for those accounts to which 28.9(2) In the event of termination, no charge for credit the higher rates apply and that the upward deviations insurance may be made for the first 15 days of a loan will not result on a statewide basis in that insurer having month and a full month may be charged for 16 days a ratio of claims incurred to premiums earned less than or more of a loan month. the expected loss ratio underlying the current prima facie 28.9(3) The requirement that refund formulas be filed rate developed or adjusted pursuant to rule 28.10(509). with the insurance commissioner shall be considered If rates higher than the prima facie rates shown in fulfilled if the refund formulas are set forth in the rules 28.7(509) and 28.8(509), to the extent adjusted individual policy or group certificate filed with the pursuant to rule 28.10(509), are filed for approval, the insurance commissioner. filing shall specify the account to which the rates apply. 28.9(4) No refund of $1 or less need be made. The rates may be: a. Applied uniformly to all accounts of the insurer; 191—28.10(509) Experience reports and adjustment or of prima facie rates. b. Applied on an equitable basis approved by the 28.10(1) Each insurer doing insurance business in this insurance commissioner to only one or more accounts state shall annually file with the insurance commissioner of the insurer for which the experience has been less and the NAIC Support and Services Office a report of favorable than expected. credit life and credit accident and health business written 28.11(4) Approval period of deviated rates. on a calendar-year basis. The report shall utilize the a. A deviated rate will be in effect for a period of time Credit Insurance Supplement-Annual Statement Blank not longer than three years based on the most recent as approved by the National Association of Insurance three-year experience period. An insurer may file for Commissioners. The filing shall be made in accordance a new rate before the end of a rate period, but not more with and no later than the due date in the instructions often than once during any 12-month period. to the annual statement and should be sent separately b. Notwithstanding the provision of 28.11(2), if an to the life and health bureau. account changes insurers, the rate approved to be used 28.10(2) The insurance commissioner will, no later for the account by the prior insurer is the maximum than on a triennial basis, review the loss ratio standards rate that may be used by the succeeding insurer for the set forth in rule 28.5(509), and the prima facfe rates set remainder of the rate approval period approved for the forth in rules 28.7(509) and 28.8(509) and determine the prior insurer or until a new rate is approved for use rate of expected claims on a statewide basis, compare on the account, if sooner. the rate of expected claims with the rate of actual claims 28.11(5) Use of rates lower than filed rates. An insurer for the preceding triennium determined from the may at any time use a rate for an account that is lower incurred claims and earned premiums at prima facie than its filed rate without notice to the insurance rates reported in the annual statement supplement, and commissioner. IAB 7/11/90 FILED 93

INSURANCE DIVISION[191] (cant'd)

191—28.12(509) Supervision of credit insurance 28.13(7) Claim adjusting not in reasonable conformity operations. with policy provisions. 28.12(1).Each insurer transacting credit insurance in 28.13(8) Failure by both companies and agents to this state shall be responsible for conducting a thorough inform the debtor of coverage. periodic review of creditors, with respect to their credit 28.13(9) Charging rates that are unfairly discrimi­ insurance business, to ensure compliance with the natory in that the company charges different rates for insurance laws of this state and the rules promulgated identical groups- with similar mortality, morbidity, by the insurance commissioner. The review required expenses and other valid underwriting characteristics. above shall include, but not be limited to, a determination 28.13(10) Any violation of Iowa Code chapter 507B that: or Iowa Code section 714.16. a. The proper charges are being made by the creditor; 191—28.14(509) Disclosure and readability. b. The proper refunds are being made; 28.14(1) Disclosure. When a premium or identifiable c. All known claims are being filed and properly • charge is payable by a debtor for credit insurance handled; coverage offered by a creditor, at the time insurance d. Amounts of insurance payable on death in excess is applied for, disclosures shall be made to the principal of the amount necessary to discharge the indebtedness debtor and copies given and retained, in accordance with are properly refunded; and state and federal law. The creditor shall also disclose e. The creditor is promptly and fairly processing the optional nature of the coverage, premium or complaints concerning its credit insurance operations identifiable charge separately by type of coverage, and is maintaining proper procedures for and records eligibility requirements, and policy limitations and of the complaints processed. exclusions. These disclosures shall be made prominently 28.12(2) Written records of the reviews shall be above the space for the signature indicating election to maintained by the insurer for review by the insurance obtain the coverage. These disclosures may be made in commissioner. conjunction with either (a) the federal truth-in-lending 191—28.13(509) Prohibited transactions. The follow­ disclosure, or (b) a notice of proposed insurance, or ing practices, when engaged in by insurers in connection insurance policy or certificate. with the sale or placement of credit insurance, or as an 28.14(2) Readability. The insurance commissioner inducement, shall constitute unfair methods of compe­ shall not approve any form unless the policy or certificate tition and shall be subject to the unfair trade practices is written in nontechnical, readily understandable Acts of this state. language, using words of common everyday usage: 28.13(1) The offer or grant by an insurer to a creditor a. Each insurer is required to test the readability of of any special ^advantage or any service not set out in its policies or certificates by use of the Flesch Readability either the group insurance contract or in the agency Formula, as set forth in Rudolf Flesch, The Art of contract, other than the payment of agent’s commissions; Readable Writing (1949, as revised 1974); 28.13(2) Agreement by an insurer to deposit with a b. A total readability score of 40 or more on the Flesch bank or financial institution money or securities of the scale is required; insurer with the design or intent that the same shall c. All policies or certificates within the scope of this affect or take the place of a deposit of money or securities - rule shall be filed with the insurance commissioner which otherwise would be required of the creditor by accompanied by a certification setting forth the Flesch the bank or financial institution as a compensating score and certifying the compliance with the guidelines balance or offsetting deposit for a loan or other set forth in this rule. advancement. 191—28.15(509) Severability. If any provision or clause 28.13(3) Deposit by an insurer of money or securities of this chapter or its application to any person or situation without interest or at a lesser rate of interest than is is held invalid, the invalidity shall not affect any other currently being paid by the creditor, bank or financial provision or application of the chapter which can be given institution to other depositors of like amounts. This effect without the invalid provision or application, and paragraph shall not be construed to prohibit the to this end the provisions of this chapter are declared maintenance by an insurer of demand deposits or severable. premium deposit accounts reasonably necessary for use in the ordinary course of the insurer’s business. 191—28.16(509) Effective date. 28.13(4) Failure by the insurance companies to refund, 28.16(1) This chapter shall take effect January 1,1991. within a reasonable time period, unearned premiums to 28.16(2) Any deviations thought to be appropriate by the person who originally paid the premium. an insurer as a result of promulgation of this chapter 28.13(5) Misrepresentation or deception by the lender- - shall be filed in accordance with the provisions of rule agent by either leading a borrower to believe that the 28.11(509) no later than January 1, 1991. borrower must purchase insurance from a specific 28.16(3) Certificates, notices of proposed insurance insurance company or failing to inform the borrower and premium rates in connection with existing group that insurance is not mandatory and by including the policies shall conform to the requirements of this chapter cost of insurance premiums in all loan quotations. not later than the anniversary date of the group policy 28.13(6) Any representation, either express or next following January 1, 1991. implied, that could reasonably cause a borrower to 191—28.17(509) Fifteen-day- free examination. The believe that the loan might be jeopardized if insurance certificate of insurance, notice of proposed insurance, or is not purchased through the recommended channels and, individual policy may be returned to the creditor within by taking advantage of the weak bargaining position of 15 days of receipt of the policy or certificate for a full the debtor, cause the purchase of insurance which might refund of premium paid, if after examination, the not otherwise be wanted. debtor(s) is not satisfied with the insurance for any 94 FILED IAB 7/11/90

INSURANCE DIVISION[191] (cont’d) reason. Notice of the 15-day free examination right shall business after the layoff as well as when the individual be prominently printed upon the cover of the insurance works in temporary employment, which is employment policy, certificate of insurance or notice of proposed of a duration not to exceed four weeks, between the layoff insurance. from the business closing employer and the claim for These rules are intended to implement Iowa Code benefits. chapter 509. Subrule 4.60(3), paragraph “a,” subparagraph (3), is amended because it requires that an alien be disqualified [Filed 6/21/90, effective 1/1/91] for unemployment benefits unless the alien is perma­ [Published 7/11/90] nently residing in the United States under color of law EDITOR’S NOTE: For replacement pages for IAC, see IAC at the time the services were performed upon which the Supplement, 7/11/90. unemployment benefits are based. Subrule 5.15(1), paragraph “c,” is amended, as per the holding of the Supreme Court of Iowa, to state that the burden of proof rests with the employer in estab­ lishing the dollar amount of the back pay award and the specific period of time to which the remuneration applies. Rule 345—5.16(96), introductory paragraph, describes the state income tax offset program which is a program ARC 1073A to recover an individual’s overpayment of unemployment benefits from the individual’s state income tax refund. JOB SERVICE DIVISION[345] More specifically, if the individual is owed an Iowa state income tax refund- of at least $50 and owes a fraud or Adopted and Filed nonfraud overpayment of unemployment benefits of at Pursuant to the authority of Iowa Code section 96.11, least $50, then the individual’s Iowa state income tax the Commissioner of the Division of Job Service hereby refund is subject to offset to recover the overpayment adopts amendments to Chapter 2, “Employer Records of unemployment benefits. and Reports,” Chapter 3, “Employer’s Contribution and These rules were adopted by the Director of the Charges,” Chapter 4, “Claims and Benefits,” and Chapter Department of Employment Services on June 22, 1990, 5, “Benefit Payment Control,” Iowa Administrative Code. and will become effective August 15,1990. These rules are identical to those published under These rules are intended to implement Iowa Code Notice of Intended Action in the Iowa Administrative sections 96.3(5), 96.3(8), 96.5(l)“b,” 96.6(2), 96.11(7)“c”(2), Bulletin on May 16, 1990, as ARC 891A. 96.11(11), 96.19(12), 96.29(2), 96.5(10) 9a amended by Rule 345—2.15(96) is amended to state that the Division 1990 Iowa Acts, Senate File 2328, section 28, and Iowa will certify the account of an employer to the Internal Code section 421.17(29). Revenue Service upon request. It also states that the Division will certify those accounts the Division has, Item 1. Amend rule 345—2.15(96) as follows: except governmental and 501(c)(3) nonprofit employers, 345—2.15(96) 940 certification. that were not included on the yearly certification tape 2.15(1) The Upon request, the division shall furnish from the IRS. The rule also lists the information that to the Internal Revenue Service; upon request; a will be given to the IRS. certification of an employer’s account for a particular Rule 345—3.4(96), introductory paragraph, is amended year. Certification requests may be on an individual basis to clarify the definition of wages in the form of, or in or may be part of a bulk yearly certification. Such lieu of, back pay as utilized in Iowa Code section 96.3(8). certification will include the employer’s state account The rule states that a back pay award, in order to be number, yearly taxable payroll, contribution rate, deductible, must be defined as wages as the term is contributions paid prior to January 31 of the next defined in Iowa’s Employment Security Law. Punitive succeeding year, and the date and amount of contribu­ or liquidated damages for other than lost wages, health tions after January 31; of the next succeeding year. insurance premiums, sick pay, equipment allowances 2.15(2) The division shall also yearly certify aR 4U/\ 1 ft I • and job search expenses are not taxable, recoverable or tevnc inturluti. . Tkwx my deductible as a back pay award. A back pay award for In addition to the information certified in subrule 2.15(1), lost wages, including severance pay and dismissal pay, yearly certification shall include: constitutes a deductible back pay award. a. Employers who filed a federal unemployment tax Subrule 4.19(2) is amended to provide that an return (Form 940) that did have not filed a state tax interested party is afforded an in-person unemployment - return or paid the tax file with the division. insurance factfinding, unless it is impractical, then the hr Employers who have partially paid the state tax Division has the discretion to conduct the unemployment and the unpaid amount is more than ten dollars ($10). insurance factfinding in whole or in part by telephone. This includes employers whe have net filed returns for However, the Division reserves the right to require an in-person factfinding interview. €7 Employers who have paid state tax ef more than Rescind subrule 4.24(17) because duplicative language mre riunu.1cu uuiiars Miter me uuc tiale. is eliminated, and there is no change in the requirements. dr Employers whe show a difference ef more than Subrule 4.29(1) is amended to provide for a recom­ fifteen hundred dollars ($1500) in state wages than in putation of an individual’s duration of benefits when the federal wages. individual is unemployed due to the individual’s eb. Employers who filed returns with the division but employer going out of business. This rule also clarifies. not with the Internal Revenue Service except governmen­ that an individual shall have the duration of benefits tal employers and employers that division records indicate recomputed when the individual’s employer goes out of to be 501(c)(3) nonprofit organizations. IAB 7/11/90 FILED 95 JOB SERVICE DIVISION[345] (cant'd)

ITEM 2. Amend rule 345—3.4(96), introductory or a part of the individual’s overpayment of benefits. All paragraph, as follows: overpayments, whether fraud or nonfraud, are included 345—3.4(96) Wages—back pay. A payment in the form in this process. of or in lieu of back pay to an individual (exclusive of [Filed 6/22/90, effective 8/15/90] legal fees and other litigation expenses) shall be reported [Published 7/11/90] by the employer as total and taxable wages paid to the Editor’S NOTE: For replacement pages for IAC, see IAC individual in the quarter in which the employer actually made the payment in the form of or in lieu of back pay. Supplement, 7/11/90. A -payment for back pay shall be taxable and recoverable if it meets the definition of wages contained in rule 3.3(96). Punitive or liquidated damages for other than lost wages, and job search expenses, are not taxable, recoverable or deductible as a back pay award. Item 3. Amend subrule 4.19(2) to read as follows: 4.19(2) Each interested party will be afforded the opportunity to have an in-person factfinding interview regarding matters which are scheduled for a hearing. telephonic communications may be provided when it is impractical for the division to conduct an in-person factfinding, the factfinding may be conducted in whole or ARC 1056A in part by telephone at the discretion of the division. The division shall reserve the right to call any interested party PROFESSIONAL LICENSURE in for an in-person factfinding interview. DIVISION[645] Item 4. Rescind subrule 4.24(17). BOARD OF PODIATRY EXAMINERS Item 5. Amend subrule 4.29(1) to read as follows: 4.29(1) Whenever an employer at a factory, establish­ Adopted and Filed ment, or other premises goes out of business at which Pursuant to the authority of Iowa Code section 147.76, the individual was last employed and is laid off, the the Board of Podiatry Examiners hereby amends individual’s account is credited with one-half, instead of Chapter 220, “Podiatry Examiners,” Iowa Administra­ one-third, of the wages for insured work paid to the tive Code. individual during the individual’s base period. This rule These amendments clarify what agency is recognized also applies retroactively for monetary redetermination by the Board of Podiatry as approving colleges of purposes during the current benefit year of the individual podiatric medicine and residency programs. who is temporarily laid off with the expectation of Notice of Intended Action was published in the Iowa returning to work once the temporary or seasonal factors Administrative Bulletin on April 4,1990, as ARC 798A. have been eliminated and is prevented from returning There are no changes from the Notice of Intended Action. to work because of the going out of business of the These amendments were adopted by the Board of employer within the same benefit year of the individual. Podiatry Examiners on May 18,1990. This rule also applies to an individual who works in These rules will become effective August 15, 1990. temporary employment between the layoff from the These rules are intended to implement Iowa Code business closing employer and the claim for benefits. For sections 149.4 and 149.7. the purposes of this rule, temporary employment means Item 1. Amend subrule 220.4(2), paragraph “b,” as employment of a duration not to exceed four weeks. follows: Item 6. Amend subrule 4.60(3), paragraph “a,” b. Present with the application an official copy (8” x subparagraph (3), as follows: 11”) of diploma and official transcript proving gradua­ (3) Was permanently residing in this country under tion from a college of podiatric medicine approved by color of law at the time such services were performed. the American Association of Colleges of Podiatric Medicine Council on Podiatric Medical Education Item 7. Amend subrule 5.15(1) by adding new paragraph “c” as follows: (CPME) of the American Podiatric Medical Association. c. The burden of proof shall rest with the employer Item 2. Amend subrule 220.4(2), paragraph “d,” to establish the dollar amount of the back pay award subparagraph (5), as follows: which is remuneration for lost wages and the specific (5) Acceptance in a residency program approved by period of time to which the remuneration applies. the American Association ef Colleges of Podiatric Medieine Council on Podiatric Medical Education Item 8. Amend rule 345—5.16(96), introductory paragraph, to read as follows: (CPME) of the American Podiatric Medical Association or a preceptorship program approved by a sponsoring 345—5.16(96) Income tax offset. An individual who accredited podiatry college. is owed an Iowa state income tax refund of at least fifty dollars ($50) and has owes an overpayment of benefits [Filed 6/22/90, effective 8/15/90] of at least fifty dollars ($50) or more is subject to an [Published 7/11/90] offset against any available the individual’s Iowa state EDITOR’S NOTE:' For replacement pages for IAC, see IAC income tax refund owed that individual to reoover all Supplement, 7/11/90. 96 FILED IAB 7/11/90

ARC 1059A ARC 1055A PUBLIC HEALTH PUBLIC SAFETY DEPARTMENT[641] DEPARTMENT[661] Adopted and Filed Adopted and Filed Pursuant to the authority of Iowa Code section 147A.4, Pursuant to the authority of Iowa Code Supplement the Iowa Board of Medical Examiners hereby adopts section 321L.8, the Department of Public Safety hereby amendments to Chapter 132, “Training and Certification adopts a new Chapter 18, “Handicapped Parking,” Iowa of and Services Performed by Advanced Emergency Administrative Code. Medical Technicians and Paramedics,” Iowa Adminis­ The Notice of Intended Action was published in the trative Code. January 10,1990, Iowa Administrative Bulletin as ARC These amendments relate to advanced EMTs and 557A. paramedics which are regulated by the Board of Medical A public hearing was held on February 1, 1990, to Examiners. These rules were changed to provide that receive comments on the proposed action. Concerns were students enrolled in out-of-state training programs may expressed on behalf of Iowa municipalities at the public participate in clinical or field experience in Iowa, that hearing about the proposed rules, especially provisions applicants that fail the written or practical examination having to do with on-street handicapped parking spaces for the third time may retake the didactic portion of in municipal business districts. These concerns were the course in lieu of retaking the entire course, and that addressed by the Iowa General Assembly in 1990. Iowa all fees are nonrefundable. Acts, Senate File 2244. Changes have been made in these These amendments were published under Notice of rules from the Notice of Intended Action to assure Intended Action as ARC 823A in the April 18, 1990, consistency with the provisions of Iowa Code chapter Iowa Administrative Bulletin. These amendments are 321L as amended by 1990 Iowa Acts, Senate File 2244. identical to those published under Notice of Intended The definitions contained in the Notice of Intended Action. Action are no longer required and have been omitted These amendments are intended to implement Iowa from these rules. Rule 661—18.3(321L) and 661— Code chapter 147A. 18.4(321L) have been revised to use the dimensions and These amendments shall become effective August 15, wording as prescribed by 1990 Iowa Acts, Senate File 1990. 2244, and 36 CFR §1190.31. The following amendments are adopted: Additional wording which is in Iowa Code Supplement chapter 321L has been added to the sign designation rule ITEM 1. Amend subrule 132.3(2) to read as follows: 661—18.5(321L) for clarity. 132.3(2) Audits. Notes have been added to rules for which federal a. With training program approval, persons who are standards stricter than those contained in state law may not enrolled in an advanced emergency medical care provider course may audit those courses. They shall not apply to some projects, clarifying those standards. be eligible to take the practical and written certification Rule 661—18.8(321L) has been revised to reference the examinations. Iowa Code Supplement sections for on-street parking b. Students enrolled in an out-of-state training program because 1990 Iowa Acts, Senate File 2244, gives specific may participate in clinical or field experience in Iowa direction to the cities on on-street parking. provided: The following new chapter is adopted and will become (1) The out-of-state training program has been approved effective August 15,1990: by that state to conduct advanced emergency medical care CHAPTER 18 training, and HANDICAPPED PARKING (2) A written agreement exists between the out-of-state 661—18.1(321L) Scope. These rules shall apply to all training program and the clinical or field experience public and private parking facilities, temporary or provider. permanent, used by the general public. ITEM 2. Amend subrule 132.4(1), paragraph “n,” to 661—18.2(321L) Location. Parking spaces designated read as follows: for physicially handicapped people and accessible n. A student who fails to pass the practical or written passenger loading zones that serve a particular building certification examination on the third attempt and who shall be located on the shortest possible accessible wishes to pursue certification shall repeat the didactic circulation route to an accessible entrance of the building. portion of the course within two years after the third In separate parking structures or lots that do not serve attempt and after two years repeat the entire course. a particular building, parking spaces for physically Item 3. Amend subrule 132.4(8), introductory para­ handicapped people shall be located on the shortest graph, to read as follows: possible circulation route to an accessible pedestrian 132.4(8) Certification and renewal fees. The following entrance of the parking facility. When handicapped fees shall be collected by the board and shall be parking spaces are required for buildings with more than nonrefundable: once accessible entrance, the spaces shall be distributed so that each accessible entrance shall have at least one [Filed 6/22/90, effective 8/15/90] handicapped parking space located on the shortest [Published 7/11/90] accessible route to that entrance. Editor’s NOTE: For replacement pages for IAC, see IAC Exception: If the required number of spaces is less Supplement, 7/11/90. than tfie number of accessible entrances, the spaces shall IAB 7/11/90 FILED 97

PUBLIC SAFETY DEPARTMENT[661] (cant’d) be distributed so that as many entrances as possible are 18.4(2) A minimum vertical clearance of 108 inches served by at least one handicapped parking space located shall be provided at accessible passenger loading zones on the shortest accessible route to those entrances. and along vehicle access routes to such areas from site 661—18.3(321L) Dimensions. entrances. 18.3(1) Single space. Parking spaces for physically Note: Uniform Federal Accessibility Standard handicapped people shall be at least 96 inches wide and requires 114 inches of vertical clearance. shall have an adjacent access aisle 60 inches wide 18.4(3) If there are curbs between the access aisle and minimum (see Figure 1). Parked vehicle overhangs shall the vehicle pull-up space, then a curb ramp complying not reduce the clear width of an accessible circulation with Iowa Code section 601D.9 shall be provided. route. Parking spaces and access aisles shall be level with surface slopes not exceeding 1:50 in all directions. 661—18.5(321L) Designation. Accessible parking 18.3(2) Multiple spaces. Two accessible parking spaces spaces shall be designated as reserved for physically may share a common access aisle (see Figure 1). handicapped people by a sign having a blue background 18.3(3) The requirements of subrules 18.3(1) and and bearing the international symbol of accessibility in 18.3(2) do not apply to parallel on-street parking spaces. white. The handicapped parking sign shall be affixed vertically on another object so that it is readily visible to a driver of a motor vehicle approaching the handi­ ACCESSIBLE ROUTE capped parking space. Note-. Spaces designated only by painted symbols on the parking surface do not meet the requirements of this rule. 661—18.6(321L) Numbers of handicapped parking spaces required in off-street parking facilities. All publicly owned and operated off-street parking facilities and all nonresidential entities which provide parking to ------1—ACCESS the general public and which provide ten or more parking 96 min 60 min AISLE spaces shall designate handicapped parking spaces in accordance with the following table: Required Minimum Number of Handicapped Total Parking Spaces in Lot Parking Spaces 252 min 10 to 25 1 26 to 50 2 51 to 75 3 Fig. 1 76 to 100 4 Dimensions of Parking Spaces 101 to 150 '5 151 to 200 6 240 min 201 to 300 7 301 to 400 • 8 401 to 500 9 501 to 1,000 * 1,001 and over ** * 2 percent of total ** 20 spaces plus 1 for each 100 over 1000 • NOTE: Projects which are required, to comply with the Uniform Federal Accessibility Standards shall provide a minimum of one handicapped parking space. 661—18.7(321L) Handicapped parking at residential facilities. All public and private buildings and facilities, temporary and permanent, which are residences and Fig. 2 which provide ten or more tenant parking spaces, Access Aisle at Passenger Loading Zones excluding extended health care facilities, shall designate at least one handicapped parking space as needed for This rule is intended to implement 36 CFR §1190.31 each individual dwelling unit in which a handicapped (7-1-89) as required by 1990 Iowa Acts, Senate File 2244. person resides. Residential buildings and facilities which 661—18.4(321L) Access aisles and loading zones. provide public visitor parking of ten or more spaces shall 18.4(1) Passenger loading zones shall provide an access designate handicapped parking spaces in the visitors’ aisle at least 48 inches wide and 20 feet long adjacent parking area in accordance with the table contained in and parallel to the vehicle pull-up space (see Figure 2). rule 661—18.6(321L). Vehicle standing spaces and access aisles shall be level 661—18.8(321L) On-street parking. Provisions for on­ with surface slopes not exceeding 1:50 in all directions. street parking within city business districts shall be as NOTE: Projects which are required to comply with the required by Iowa Code Supplement section 321L.5, Uniform Federal Accessibility Standards shall provide subsection 4, as amended by 1990 Iowa Acts, Senate File a width of 60 inches for the access aisle. 2244, section 7. 98 FILED IAB 7/11/90 PUBLIC SAFETY DEPARTMENT[661] (cant’d)

These rules are intended to implement Iowa Code These amendments reflect changes made in the Supplement chapter 321L as amended by 1990 Iowa Acts, assessor education program over the past few years. They Senate File 2244. include the change that the assessor education program [Filed 6/22/90, effective 8/15/90] is no longer administered by the Assessor Education [Published 7/11/90] Commission but by the Director of the Department of Revenue and Finance, establish a committee chaired by EDITOR’S NOTE: For replacement pages for IAC,see IAC the Director of Revenue and Finance, delete an obsolete Supplement, 7/11/90. listing of courses, update examples and form numbers, add the narrative appraisal as tested credit, and include other minor changes. These rules are identical to those published under Notice of Intended Action. These amendments will become effective August 15, 1990, after filing with the Administrative Rules Coordinator and publication in the ARC 1060A Iowa Administrative Bulletin. These rules are. intended to implement Iowa Code REVENUE AND FINANCE section 441.8. DEPARTMENT[701] EDITOR’S Note: Pursuant to recommendation of the Adopted and Filed Administrative Rules Review Committee published in Pursuant to the authority of Iowa Code section 421.14, the Iowa Administrative Bulletin, September 10, 1986, the Iowa Department of Revenue and Finance hereby the text of these rules [amendments to chs 122,123,124, adopts amendments to Chapter 122, “Administration,” 125] is being omitted. These rules are identical to those Chapter 123, “Certification,” Chapter 124, “Courses,” and published under Notice as ARC 884A, IAB 5/16/90. Chapter 125,“Review of Agency Action,” Iowa Adminis­ [Filed 6/22/90, effective 8/15/90] trative Code. [Published 7/11/90] Notice of Intended Action was published in the Iowa [For replacement pages for IAC, see IAC Supplement, Administrative Bulletin on May 16,1990, as ARC 884A. 7/11/90.] IAB 7/11/90 EXECUTIVE DEPARTMENT 99

InThe Name and By The Authority of The State of Iowa

EROCUMAXICN OF DISASTER EMERGENCY

WHEREAS, severe storm systems affecting Icwa on June 16, 1990, producing heavy rainfall causing extensive flooding of urban and rural areas of Polk, Warren, Johnson, Dallas, Muscatine, Scott and Jasper Counties.

whereas. after further contact with county and local offi­ cials, and conditions have been confirmed, I am including Polk, Warren, Johnson, Dallas, Muscatine, Scott and Jasper Counties in the proclamation; and

WHEREAS, assistance may be necessary from State agencies for services beyond local resources in repair and restoration of public facilities, debris removal, security, and clean-up activities, and

WHEREAS, assistance could result in lessening of human suffering,

NOW THEREFORE, I, Terry E. Branstad, Governor of the State of Iowa, do hereby proclaim Polk, Warren, Johnson, Dallas, Muscatine, Scott and Jasper Counties to be a disaster area and call upon the citizens and agencies of 100 EXECUTIVE DEPARTMENT IAB 7/11/90

local, state, and federal government to render good and sufficient aid to assist this area in its time of need.

IN TEbTIMCNY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the State pf Iowa to be affixed. Done at Des Moines this 16th day of June in the year of our lord one thousand nine hundred ninety.

GOVERNOR

SECRETARY OF S' IAB 7/11/90 EXECUTIVE DEPARTMENT 101

In The Name and By The Authority of The State of Iowa

HOCLAWYnCN QF DISASTER EMERGENCY As Amended to Include Additional Counties

WHEREAS, I declared a Disaster Emergency for Polk, Warren, Johnson, Dallas, Muscatine, Scott and Jasper Counties on June 16, 1990 due to a severe storm system containing heavy rains, hail, and high winds causing extensive flood damages; and

WHEREAS, after further contact with county and local offi­ cials, and conditions have been confirmed, I am including Story, Crawford, Madison, Woodbury, Cedar, Jones, Wapello, Linn, Shelby, Clinton, Icwa, Benton, Boone, Carroll and, Monona Counties in the proclama­ tion; and

WHEREAS, assistance may be necessary from State agencies for services beyond local resources in repair and restoration of public facilities, debris removal, security, and clean-up activities, and

/ WHEREAS, assistance could result in lessening of human suffering,

NOW THEREFORE, I, Terry E. Brans tad, Governor of the State of Icwa, do hereby proclaim Story, Crawford, Madison, Wood­ bury, Cedar, Jones, Wapello, Linn, Shelby, Clinton, Icwa, Benton, Boone, Carroll'1, and Monona Counties to be a disaster area and call upon the citizens and 102 EXECUTIVE DEPARTMENT IAB 7/11/90

agencies of local, state, and federal government to render good and sufficient aid to assist this area in its time of need.

IN HSTOCNY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the State of Iowa to be affixed. Done at Des Moines this 18th day of June in the year of our Lord one thousand nine hundred ninety.

\GOVERNOR IAB 7/11/90 EXECUTIVE DEPARTMENT 103

InThe Name and By The Authority of The State of Iowa

mOCXAMAXlCN GP DISASTER EMERGQJCY As Amended to Include Additicnal Counties

- WHEREAS, I declared a Disaster Emergency for Polk, Warren, Johnson, Dallas, Muscatine, Scott and Jasper Counties on June „ 16, 1990 due to a severe storm system containing heavy rains, hail, and high winds causing extensive flood damages; and

WHEREAS, again on June 18, 1990 I included Story, Crawford, Madison, Woodbury, Cedar, Jones, Wapello, Linn, Shelby, Clinton, Icwa, Benton, Boone, Carroll and, Monona Counties in the proclamation; and

WHEREAS, after further contact with county and local offi­ cials, and conditions have been confirmed, I am including Tama, Audubon, Louisa, Marion, Mahaska, Pocahontas, Washington, Webster, Cherokee, Clarke, and Hamilton counties in the proclamation; and

WHEREAS, assistance may be necessary from State and Federal agencies for services beyond local resources in repair and restoration of public facilities, debris removal, security, and clean-up activities; and

WHEREAS, assistance could result in lessening of human suffering,

Now THEREFORE, I, Terry E. Branstad, Governor of the State of Iowa, do hereby proclaim Tama, Audubon, Louisa, Marion, Mahaska, Pocahontas, Washington, Webster, Cherokee, Clarke, and Hamilton Counties to be disaster areas 104 EXECUTIVE DEPARTMENT IAB 7/11/90

and call upon the citizens and agencies of local, state, and federal government to render good and sufficient aid to assist this area in its time of need.

IN TESEMUY WHEREOF, I have hereunto subscribed my name and caused , the Great Seal of the State of Iowa to be affixed. Done at Des Moines this 19th day of June in the year of our Lord one thousand nine hundred ninety.

GOVERNOR IAB 7/11/90 EXECUTIVE DEPARTMENT 105

JJvmitiliT Jlqj arlumit

In The Name and By The AuihorityofThe SiArE of Iowa

PROCLAMATION OF DISASTER EMERGENCY As Amended to Include the Counties of Decatur# Calhoun# Hardin# Marshall# Pottawattamie & Keokuk

WHEREAS# I declared a Disaster Emergency for a total of thirty-four counties on June 16# June 18# and June 19, 1990 due to a severe storm system containing heavy rains# hail and high winds# causing substantial damage; and

WHEREAS; after further contact with county and local officials# and conditions have been confirmed# I am including Decatur, Calhoun# Hardin# Marshall# Pottawattamie# and Keokuk counties in the proclamation; and

WHEREAS; assistance is necessary from State and Federal agencies for services beyond local resources to enable the citizens to recover; and

WHEREAS; assistance could result in lessening of human suffering#

NCW THEREFORE# I# Terry E. Brans tad# Governor of the State of Iowa# do hereby proclaim Decatur# Calhoun# Hardin, Marshall# Pottawattamie# and Keokuk counties to be disaster areas and call upon the citizens and agencies of local and State government to render good and - sufficient aid to assist these areas in their time of need.

IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the State of Iowa to be affixed. Done at Des Moines this 20th day of June in the year of our Lord one thousand nine hundred ninety.

\ VO GOVERNOR

Attest: 106 EXECUTIVE DEPARTMENT IAB 7/11/90

jllxmitiltr tfJqjtirtumit

In The Name and By The Authority of The State of Iowa

PROCLAMATION OP DISASTER EMERGENCY As Amended to Include Union County

WHEREAS/ I declared a Disaster Emergency for a total of forty counties on June 16, June 18/ June 19/ and June 20, 1990 due to a severe storm system containing heavy rains/ hail and high winds/ causing substantial damage; and

WHEREAS; after further contact with county and local officials/ and conditions have been confirmed/ I am including Union County/ and

WHEREAS; assistance is necessary from State and Federal agencies for services beyond local resources to enable the citizens to recover; and

WHEREAS; assistance could result in lessening of human suffering/

NOW THEREFORE# I, Terry E. Branstad/ Governor of the State of Iowa/ do hereby proclaim Union County to be a disaster area and call upon the citizens and agencies of local and State government to render good and sufficient aid to assist these areas in their time of need.

IN TESTIMONY WHEREOF/ I have hereunto subscribed my name arid caused the Great Seal of the State of Iowa to be affixed. Done at Des Moines this 25th day of June in the year of our Lord one thousand nine hundred ninety.

\ VQ ^ \ GOVERNOR

Attest: IAB 7/11/90 EXECUTIVE DEPARTMENT 107

InThe Name and By The Authority of The State of Iowa

PROCLAMATION OF DISASTER EMERGENCY

WHEREAS: on June 28, 1990, a fast-moving thunderstorm with hail, rain and a tornado passed through Franklin County in Iowa; and -

WHEREAS: the effect of this storm was damage and destruction to businesses, residences; and

WHEREAS: based upon reports of damages and after requests by local officials, the conditions reported have been confirmed.

NOW, THEREFORE, I, Terry E. Branstad, Governor of the State of Iowa, do hereby proclaim Franklin County to be a disaster area and call upon the citizens and agencies of local find state government to render good and sufficient aid to assist this stricken area in its time of need.

IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the State of Iowa to be affixed. Done at Des Moines, Iowa this 29th day of June in the year of our Lord one thousand nine hundred

Attest:

n • — ■ £21 SECRETARYcr OP STATE 108 EXECUTIVE DEPARTMENT IAB 7/11/90

j

In The Name and By The Authority of The State of Iowa

'PROCLAMATION OF DISASTER EMERGENCY As Amended to Include Greene County

WHEREAS/ I declared a Disaster Emergency for a total of forty-one counties on June 16, June 18, June 19, June 20, and June 25, 1990 due to a severe storm system containing heavy rains, hail and high winds, causing substantial damage; and

WHEREAS/ after further contact with county and local officials, and conditions have been confirmed, I am including Greene County, and

WHEREAS, assistance is necessary from State and Federal agencies for services beyond local resources to enable the citizens to recover; and

WHEREAS, assistance could result in lessening of human suffering,

NOW THEREFORE, I, Terry E. Branstad, Governor of the State of Iowa, do hereby proclaim Greene County to be a disaster area and call upon the citizens and agencies of local and state government to render good and , sufficient aid to assist these areas in their time of need. IAB 7/11/90 EXECUTIVE DEPARTMENT 109

IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the State of Iowa to be affixed. Done at Des Moines this 29th day of June in the year of our Lord one thousand nine hundred ninety.

\ \0 GOVERNOR 110 SUPREME COURT IAB 7/11/90

SUMMARY OF DECISIONS - THE SUPREME COURT OF IOWA

FILED JUNE 20, 1990

NOTE: Copies of these opinions may be obtained from the Supreme Court Clerk, State Capitol Building, Des Moines, IA, 50319, for a fee of 40 cents per page.

No. 89-690. CITY OF DES MOINES vs. GRUEN. Appeal from the Iowa District Court for Polk County, Joel D. Novak, Judge. AFFIRMED. Considered en banc. Opinion by McGiverin, C.J. (7 pages $2.80)

Gruen kept unregistered automobiles, used tires, and old automobile component parts around the garage and in the back yard of his residence in Des Moines. The zoning inspector asked Gruen to clean up his property. When Gruen failed to do so, the City of Des Moines charged him with violating a municipal ordinance, 2A-7(S), which restricted the parking or storage of certain vehicles, vehicle parts and "miscellaneous junk." After a bench trial, the district court ruled that Gruen was guilty of the infraction, assessed a'civil penalty of $100 against Gruen, and ordered him to cease violating the municipal ordinance. Gruen appealed. Gruen contends that the ordinance is "inconsistent" with Iowa Code section 321.487(1) and, therefore, unconstitutional under Article III, section 38A of the Iowa Constitution. Article III, section 38A of the Iowa Constitution, known as the "Home Rule Amendment," grants municipal corporations broad authority to regulate matters of local concern, subject to preemption by laws of the general assembly. A municipal ordinance is "inconsistent" with a law of the general assembly and, therefore, preempted by it, when the ordinance "prohibits an act permitted by a statute, or permits an act prohibited by a statute." Gruen is an automobile dealer. Iowa Code section 321.48 ( 1 )( 19.87 ) exempts vehicles from registration when the transferee of a vehicle is a dealer. OPINION HOLDS: I. It is clear that the ordinance does not prohibit an act permitted by Iowa Code section 321.48(1). The statute and the ordinance may be harmonized: Gruen may lawfully possess unregistered vehicles in Des Moines, but he may not store them in a residential neighborhood unless in an enclosed building. Even then, of course, he may not conduct his used car business at his residence if to do so would violate a valid zoning law. The ordinance at issue is not unconstitutional under Article III, section 38A of the Iowa Constitution. 11* Gruen has not shown the ordinance to be unconstitutionally overbroad as applied to him. The judgment of the district court is affirmed. IAB 7/11/90 SUPREME COURT 111

No. 88-592. STATE vs. DRAPER. On review from the Iowa Court of Appeals. Appeal from the Iowa District Court for Woodbury County, Michael S. Walsh, Judge. DECISION OF THE COURT OF APPEALS AFFIRMED; DISTRICT COURT CONVICTIONS AFFIRMED, THREE SENTENCES VACATED AND CASE REMANDED FOR RESENTENCING. Considered by McGiverin, C.J., and Larson, Carter, Lavorato and Neuman, JJ. Opinion by McGiverin, C.J. (18 pages $7.20)

Defendant Schery Draper was convicted of four drug offenses, three of them felonies. The jury found Schery to be a habitual offender under Iowa Code section 902.8. She was therefore sentenced to serve up to 15 years on each of the three felony charges, with a 3-year mandatory minimum term; these three terms were to be concurrent. (A 180-day sentence on the serious misdemeanor charge, count IV, was also concurrent to the felony sentences.) Schery appealed her convictions and sentences. The court of appeals held that the sentences on the three felony counts are illegal because they are more lenient than allowed by the Iowa Code; the court of appeals reasoned the district court had imposed an illegal mandatory minimum prison sentence of three years under Iowa Code section 90'2.8 (habitual offender) rather than the requisite five years under Iowa Code section 204.413. We granted Schery's application for further review. OPINION HOLDS: I. In our view, the fifteen-year prison sentence Schery received on each of the three felony counts is not a criminal penalty imposed separate from chapter 204 and, therefore, superseded by chapter 204 under Schery's reading of the statute. The district court and the court of appeals were correct in holding that Schery's maximum indeterminate prison sentence is fifteen years on each of the felony counts. Because section 902.9 and, through it, section 902.8, defers to sentences prescribed by other statutes, the court of appeals correctly applied the mandatory minimum sentence provision of section 204.413 to the exclusion of the last sentence of section 902.8. The court of appeals was correct in holding that Schery's minimum prison term is five years on each of the three felony counts, subject to discretionary reduction under Iowa Code section 901.10. III. The three-year minimum prison terms ordered in this case are illegal, and must be corrected. We have stated many times that an illegal sentence is a nullity subject to correction, even though correction may result in an increase in the sentence on remand. IV. The decision of the court of appeals, the district court convictions and the judgment on count IV are affirmed. The sentences on counts I, II and III are vacated. The case is remanded for resentencing on those counts, consistent with this opinion. 112 SUPREME COURT IAB 7/11/90

No. 88-594. STATE vs. DRAPER. On review from the Iowa Court of Appeals. Appeal from the Iowa District Court for Woodbury1 County, Michael S. Walsh, Judge. DECISION OF THE COURT OF APPEALS AFFIRMED; DISTRICT COURT CONVICTIONS AFFIRMED, THREE SENTENCES VACATED AND CASE REMANDED FOR RESENTENCING. Considered by McGiverin, C.J., and Larson, Carter, Lavorato and Neuman, JJ. Opinion by McGiverin, C.J. (12 pages $4.80)

The facts in this case concerning Robert Draper are the same as those set forth in State v. Draper, No. 88-592, also filed on this date. No. 88-592 disposes of the case of defendant's wife Schery Draper. OPINION HOLDS: I. The evidence in this case clearly was sufficient to support Robert's convictions on a "conspiracy" ground. We conclude that Robert's convictions on counts I, II and III should be affirmed. II. For the reasons stated in our opinion in Schery's appeal, Robert's sentences on counts I, II, and III must be vacated. In Robert's case, as in Schery's, the court of appeals correctly determined the maximum and minimum prison sentences on these three counts. III. The court was right to conclude that Robert should be sentenced as a habitual offender if the jury found that he was the person previously convicted of at least two felonies. No further inquiry was required under the circumstances. IV. We find no merit in Robert's arguments on further review. Accordingly, the decision of the court of appeals, the district court convictions and the judgment on count IV are affirmed. The sentences on counts I, II and III are vacated. The case is remanded for resentencing on those counts, consistent with this opinion and the opinion in Schery's appeal.

No. 89-943. HILLVIEW ASSOCIATES VS. PALMER. Appeal from the Iowa District Court for Polk County, Theodore M. Miller, Judge. APPEAL DISMISSED. Considered by Harris, P.J., and Larson, Schultz, Snell, and Andreasen, JJ. Opinion by Schultz, J. (4 pages $1.60)

Hillview Associates commenced a forcible entry and detainer action against Paul Palmer, . its mobile home tenant, in the small claims division of district court. Hillview Associates prevailed, and Palmer appealed the judgment to district court. The trial court ruling was affirmed, and Palmer now seeks relief from this court. OPINION HOLDS: Iowa Code section 631.16 specifically provides that "[a] civil action originally tried as a small claim shall not be appealed to the supreme court unless by discretionary review as provided herein." We conclude that Palmer does not have an appeal of right from the rulings of the district court. While certiorari is available to test the legality of the district court's action, we conclude IAB 7/11/90 SUPREME COURT 113

No. 89-943. HILLVIEW ASSOCIATES vs. PALMER (continued). that the district court did not act illegally in failing to ask for additional evidence or in ruling that "the record substantially supports the ruling of [the trial judge]." Accordingly, we dismiss the appeal.

No. 89-556. REIMERS v. HONEYWELL. Appeal from the Iowa District Court for Polk County, Arthur E. Gamble, Judge. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED. Considered by Harris, P.J., and Larson, Schultz, Snell, and Andreasen, JJ. Opinion by Harris, J. (11 pages $4.40)

In 1985 there was a gas explosion in the home of Harvey and Janice Reimers in Poweshiek County. Harvey and his son, Lance, were killed. The survivors and the estates of Harvey and Lance brought a products liability action against Honeywell, Inc. Honeywell manufactured a furnace valve which failed, causing leaking L.P. gas and the subsequent explosion. Other defendants were joined in the action on theories of claimed involvement with providing or supplying the furnace. Reimers' suit was brought in Polk County because at least one defendant (Iowa Supply Co.) resided there. Venue was therefore proper for all defendants. Iowa Code § 616.18. Honeywell filed cross-claims for contribution against Magic Chef and Triple "S." In addition Honeywell filed a third-party petition against Poweshiek-Jasper Farm Service, the Reimers' gas supplier. Prior to trial Honeywell settled with the Reimers for $1.4 million and also settled some of its contribution claims. The case then proceeded to trial on Honeywell's contribution claim against Poweshiek. The jury returned a verdict finding Honeywell eighty percent at fault, Poweshiek fifteen percent at fault, and Triple "S" five percent at fault. The jury found the $1.4 million settlement reasonable. The trial court entered judgment against Poweshiek in favor of Honeywell for $210,000. OPINION HOLDS: I. After Iowa Supply was granted summary judgment Poweshiek moved for dismissal pursuant to Iowa Code section 616.20, which permits a non-resident defendant to move for dismissal if resident defendants are no longer involved in the case. Poweshiek contends that the expressed sweep of section 616.20 should be broadened to include actions brought under 616.18, a contention we do not address. We rest our affirmance of the point on another ground. Honeywell was licensed to do business in Iowa and maintained its primary Iowa offices in Des Moines, Polk County. This makes Honeywell also a "resident" of Polk County for venue purposes. Polk County venue was not lost when the other Polk County defendant was dismissed from the case. The trial court was correct in so holding. 114 SUPREME COURT IAB 7/11/90

No. 89-556. REIMERS v. HONEYWELL (continued). II. Poweshiek contends that Honeywell is barred from recovering contribution because it was guilty of conduct justifying an award of punitive damages. Poweshiek also contends that, because the portion of the settlement attributable to such conduct was not shown, the entire damage award was tainted and no contribution is recoverable for any part of the award. While it is generally true that a tortfeasor cannot obtain contribution for a punitive damage award, we do not believe this prohibition also bars a tortfeasor against whom punitive damages were awarded from seeking contribution for other damages. When and if the conduct giving rise to punitive damages can be separated from damages arising from the tortfeasor's other, less egregious, conduct there is no reason to bar contribution for that part of the damages which was not punitive in nature. The burden is upon the contribution claimant to show what portion was for punitive damages. Where no segregation of punitive damages can be established by a preponderance of the evidence contribution cannot be obtained. We think, under the limited facts here, Honeywell should be allowed to show, if it can, that a specific portion of the $1.4 million settlement was to satisfy the punitive damage claim against it. On remand the matter should be tried as a special issue case. See Iowa R. Civ. P. 186.

No. 89-1636. STATE v, O'DELL. Appeal from the Iowa District Court for Page County, Keith E. Burgett, Judge. REVERSED AND REMANDED. Considered en banc. Opinion by Harris, J. (9 pages $3.60) The State sought discretionary review to challenge a pretrial ruling excluding inculpatory statements. OPINION HOLDS: I. Defendant's challenges to our grant of discretionary review in this case are without merit. II. At the time of the challenged interview charges against O'Dell were undoubtedly seriously contemplated but had not been filed. O'Dell was not in custody, nor subject to any kind of restraint. Therefore 'O'Dell's sixth amendment right to counsel had not attached. It was error for the trial court to suppress the contents of O'Dell's statement to Brinkley. The suppression order is reversed, and the case is remanded for further proceedings in conformance with this opinion. IAB 7/11/90 SUPREME COURT 115

No. 90-283. COMMITTEE ON PROFESSIONAL ETHICS AND CONDUCT VS. BRADFIELD. On review of the report of the Grievance Commission. LICENSED SUSPENDED. Considered en banc. Per curiam. Dissent by Schultz, J. (9 pages $3.60)

A complaint was filed by the ethics committee charging respondent with failing to file timely state and federal income tax returns, filing a false answer on the client security questionnaire on two occasions and on one occasion intentionally not filing the questionnaire on time in an attempt to conceal the filing of an untimely income tax return. Following a hearing, the Grievance Commission found that respondent had filed untimely returns and answered one questionnaire falsely but rejected claims of a second false answer and intentional concealment. It recommended that respondent's license be suspended for a period of three months. OPINION HOLDS: We suspend respondent's license indefinitely, with no possibility of reinstatement, for four months from the filing of this opinion. DISSENT ASSERTS: I disagree with the sanction imposed in the majority opinion. This is not a tax fraud case. A failure to file timely tax returns should not always require the sanction of suspension. Procrastination in filing tax returns bears only a distant relationship to a lawyer's fitness to practice. I stand by the dissent in Committee on Profe.ssional Ethics and Conduct v. .Baudino, 452 N.W.2d 455, 461-64 (Iowa 1990). We can still protect the public and deter this conduct by more appropriate sanctions which would allow respondent the opportunity to pay his taxes and recover financially.

No. 89-839. IN RE MARRIAGE OF ALSHAIBI. Appeal from the Iowa District Court for Johnson County, Kristin L. Hibbs, Judge. AFFIRMED AND REMANDED WITH INSTRUCTIONS. Considered by McGiverin, C.J., and Schultz, Carter, Lavorato, and Neuman, JJ. Per curiam. (6 pages $2.40)

This is an appeal by respondent Hameed Alshaibi from a decree dissolving his twenty-year marriage to petitioner Maha Alshaibi. Hameed challenges the economic provisions of the decree. OPINION HOLDS: We affirm the division of assets and liabilities and the award of rehabilitative alimony to Maha. We also affirm the award of child support to Maha, subject to remand for entry of a new judgment for child support corresponding to the date when the parties voluntarily transferred the custody of the two youngest children from Maha to Hameed. Finally, we direct the district court to enter judgment against Hameed for Maha's appellate attorney fees in the sum of $4000. 116 SUPREME COURT IAB 7/11/90

No. 89-397. FELL V. KEWANEE FARM EQUIPMENT CO. Appeal from the Iowa District Court for Clay County, Tom Hamilton, Judge, James L. McDonald, Judge, and Murray S. Underwood, Senior Judge. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED. Considered en banc. Opinion by Lavorato, J. Dissent by Carter, J. (29 pages $11.60)

Anne Fell was loading ear corn into a corn crib when her left hand was caught in the exposed beveled gear mechanism of a Kewanee Model 500 elevator. As a result of the accident Anne suffered mutilating injuries to her left hand. Following the accident Anne sued Kewanee Farm Equipment Co., the manufacturer of the elevator, on theories of negligence, breach of implied warranty, and strict liability. Anne asked for compensatory and punitive damages. Anne also named her father-in-law Lewis Fell, owner of the elevator, as a defendant. As a third-party plaintiff, Lewis sought relief from Anne's husband, James. Before trial, Anne settled with Lewis, and Lewis and James were dismissed from the lawsuit. The district court granted Kewanee a partial summary judgment as to Anne's strict liability and implied warranty theories and her request for punitive damages. The case proceeded to trial on the only remaining claim—Kewanee's alleged negligence. During trial, the district court sustained Kewanee's objections to evidence of prior accidents and to certain exhibits. Following the close of the evidence the district court instructed the jury as to Kewanee's state of the art defense as codified in Iowa Code section 668.12 (1987). In the special verdict forms, the court listed James Fell as a party against whom to apportion fault. In accordance with the special verdict form, the jury found that Kewanee had established its state of the art defense. So the jury, as instructed, proceeded no further. The district court then entered judgment for Kewanee. Anne challenges on appeal the district court's .ruling on the partial summary judgment motions as to the strict liability and implied warranty theories and on the request for punitive damages. Anne also challenges the district court's evidentiary rulings„ its state of the art defense construction, and its action in listing James Fell as a party in the special verdict forms. OPINION HOLDS: I. The district court incorrectly sustained Kewanee's partial summary judgment motion on Anne's strict liability claim. The record was sufficient to generate a material fact question on this issue. The court did, however, correctly sustain Kewanee's partial summary judgment motion on Anne's claim of breach of implied warranty. The statute of limitations had clearly run on this claim. The parties actually tried the punitive damages issue even though the district court sustained Kewanee's motion for summary judgment on this issue. We think, however, that there was not sufficient evidence to submit punitive damages to the jury. So we conclude that IAB 7/11/90 SUPREME COURT 117

No. 89-397. FELL V. KEWANEE FARM EQUIPMENT CO. (continued), there was no reversible error on this issue. II. The trial court did not abuse its discretion when it refused to admit evidence of prior accidents. This evidence was not ~ relevant because none of the accidents happened under substantially similar circumstances. III. In the state of the art defense instruction, the district court should have instructed on Anne's theory that Kewanee subsequently learned of a defect that made its elevators unreasonably dangerous. There was sufficient evidence to generate a jury question on this issue. IV. Finally, in the special verdict forms, the district .court should not have listed James Fell as a party against whom the jury could apportion fault. James was dismissed before trial and was not a party to any release. V. We affirm in part and reverse in part. We remand for further proceedings consistent with this opinion on the strict liability claim. We also remand for new trial on the negligence claim. DISSENT ASSERTS: The jury's acceptance of the state of the art defense would have been a complete defense to the strict liability claim even if it had been submitted. Plaintiff's strict liability claim- should also be rejected on the merits. In the present case, the evidence shows that the owner of the machine had elected to leave the guard off the machine for a period of more than three years prior to plaintiff's injury. There was, I submit, a clear break in the causal chain which should preclude recovery as a matter of law against the manufacturer based on the loose wing nut. The alleged danger discovered by the manufacturer after the machine had been placed in the chain of commerce was the danger that the shield might fall off due to vibrations. I submit that the manufacturer's failure to warn of this danger does not provide a basis for recovery by a plaintiff who had actual knowledge that the shield was off when using the machine prior to and at the time of injury.

No. 89-1194. IN THE MATTER OF R.L.D. Appeal from the Iowa District Court for Mills County, Gary K. Anderson, District Associate Judge. AFFIRMED. Considered by Harris, P.J., and Larson, Schultz, Snell and Andreasen, JJ. Opinion by Andreasen, JJ. (5 pages $2.80)

Parents appeal from the district court's denial of their application for appointment of counsel in an involuntary hospitalization proceeding initiated in the interest of their minor child by the State of Iowa. OPINION HOLDS: The indigent parents of a minor who is the subject of an involuntary hospitalization proceeding under Iowa Code section 229.6A ( 1987 ) are not entitled to court-appointed counsel. 118 SUPREME COURT IAB 7/11/90

No. 89-567. KONICEK V. LOOMIS BROTHERS, INC. Appeal from the Iowa District Court for Linn County, William L. Thomas, Judge. AFFIRMED. Considered by Harris, P.J., and Schultz, Lavorato, Snell, and Andreasen, JJ. Opinion by Lavorato, J. (14 pages $5.60) .

In April 1985 Loomis Brothers, Inc.--the defendant—contracted with Cornell College in Mount Vernon to build a sports learning center. The contract provided that Loomis would act as the general contractor of the project. Loomis then subcontracted with Cliff Abild Construction Co. to roof the center. Gary Konicek—the plaintiff—was a construction employee of Abild. Konicek fell through a skylight while on the roof of the sports learning center. Because of his injuries, Konicek received workers' compensation benefits from Abild. He sued Loomis, the general contractor, and alleged negligence as the basis for his suit. The jury found that Loomis was negligent and that Konicek was entitled to damages. Loomis appealed from the resulting judgment. OPINION HOLDS: I. Loomis' motion for judgment notwithstanding the verdict and for new trial raises, among other things, the issue whether there was sufficient evidence to support a verdict under the business invitee theory. Loomis made the same assertion in its motion for directed verdict. So the issue was properly preserved for our review. II. Here Konicek was an employee of an independent contractor. So he was correctly identified by the district court as a business invitee. Loomis had the same duty of care to business invitees as Cornell College had. We think the evidence generated a jury question as to Loomis' duty to Konicek. Viewing the evidence in the light most favorable to Konicek, we think the jury could find that the danger posed by the open skylights was known and obvious not only to Konicek but to Loomis as well. The jury, however, could also find from the evidence that despite this obvious danger, Loomis should have anticipated that the uncovered skylights could cause injury to the Abild roofers. Certainly Loomis could anticipate that Abild roofers would probably proceed in the face of obvious danger, knowing that if they failed to do so, they could lose their jobs. Because the skylights were uncovered and irregularly spaced across the roof, the jury could find that any warning would have been inadequate, leaving Loomis only one alternative: covering the sky­ lights . To prove error Loomis must convince us that these matters were established against Konicek as a matter of law. We are not convinced. III. Loomis raises several other issues. We have considered these issues and find that they have no merit. IAB 7/11/90 SUPREME COURT 119

No. 88-1832. FOLKERS v. BRITT. On review from the Iowa Court of Appeals. Appeal from the Iowa District Court for Jones County, Van D. Zimmer, Judge. DECISION OF COURT OF APPEALS AFFIRMED IN PART AND VACATED IN PART; DISTRICT COURT JUDGMENT AFFIRMED IN PART, REVERSED IN PART, AND REMANDED WITH INSTRUCTIONS. Considered by Harris, P.J., and Larson, Schultz, Snell, and Andreasen, JJ. Opinion by Snell, J. (15 pages $6.00)

In December 1979, the Britts executed a note and security agreement with H.W.G. Folkers to obtain a loan. Theosecurity interest was property perfected. In 1980, the Britts began obtaining operating loans from the Citizens State Bank. The bank then filed a blanket financing statement containing an after-acquired property clause. The security agreements with the bank indicated that they were subject to the prior lien held by H.W.G. Folkers. In December 1984 the Folkers' security interest lapsed since the Folkers failed to file a continuation of their financing statement. The bank's security interest has remained in force. The Folkers filed this action seeking a judgment from the Britts. Eventually, the Britts' assets were sold with the proceeds held in escrow. The district court entered judgment in favor of the Folkers but determined that the debt was unsecured since their security interest had lapsed. The Folkers appealed. OPINION HOLDS: I. The language in the bank's security agreements noting the Folkers' prior security interest with the Britts did not constitute a subordination agreement. Since the bank was not entitled to priority in relation to the Folkers at the time it entered into security agreements with the Britts, the bank was in no position to make a subordination agreement in favor of the Folkers. II. The clauses found in the security agreements between the bank and the Britts noting the Folkers' prior security interests did not constitute a waiver of the bank's rights. III. The Folkers failed to prove the facts necessary to establish estoppel. IV. The trial court ruled correctly that interest on the debt the Britts owed the bank continued to accrue at the contracted fate until the entry of judgment. V. • The trial court did not err in distributing the income from the sale of four cows. VI. The trial court erred in failing to award the Folkers their portion of the proceeds from the sale of jointly-held hogs. On this issue, the case is remanded. 120 SUPREME COURT IAB 7/11/90

Mo. 90-368. COMMITTEE ON PROFESSIONAL ETHICS AND CONDUCT v. WASHBURN. On review of the report of the Grievance Commission. LICENSE SUSPENDED. Considered en banc. Opinion by Andreasen, J. Dissent by Lavorato, J. (6 pages $2.40) The commission concluded that Washburn: (1) failed to file timely his state and federal income tax returns and (2) made false statements on his client security questionnaire. The commission recommended that Washburn's license to practice law be suspended for three months. OPINION HOLDS: Although we do not find a convincing preponderance of the evidence that Washburn made false statements on his . questionnaire, he did knowingly and willfully -fail to file his 1986 and 1987 state and federal income tax returns. We continue to impose meaningful license suspension in our effort to end income tax violations by Iowa attorneys. Although an attorney's substance•abuse problems and efforts to control them do not excuse misconduct, they are factors we consider. We have considered the positive steps that Washburn has taken in overcoming his substance abuse and agree with the commission that the sanction should be mitigated accordingly. We hold that Washburn's license to practice law should be suspended indefinitely with no possibility of reinstatement for three months. DISSENT ASSERTS: I dissent because I think this case warrants no more than a reprimand. No. 89-607. JENNEY v. IOWA DISTRICT COURT FOR LINN COUNTY. Certiorari to the Iowa District Court for Linn County, August F. Honsell, Judge. WRIT ANNULLED. Considered by Harris, P.J., and Larson, Schultz, Snell, and Andreasen, JJ. Opinion by Andreasen, J. (7 pages $2.80) Plaintiff challenges the authority of the district court to impose the penalty for contempt of court for alleged violations of terms of probation not set forth in a court order. OPINION HOLDS: Iowa Code section 908.11, as amended in 1984, provides that if a violation of the terms of probation is established, the court may hold an adult defendant in contempt of court and sentence the defendant to a jail term while continuing the probation. This amendment expanded the dispositional options available to the court. We reject Jenney's contention that the amendment requires a contempt proceeding before a jail term may be imposed. We conclude that the proceeding was a probation revocation proceeding in which the court, in its discretion, found Jenney in contempt as permitted by section 908.11. When viewed in this light, Jenney's allegations of error are without merit. His allegations of error are based upon the assumption that the proceeding was in the nature of a contempt action under Iowa Code chapter 665 . IAB 7/11/90 SUPREME COURT 121

NO. 89-1488. DAVIS v. PARKINS. Appeal from the Iowa District Court for Polk County, Rodney Ryan, Judge. REVERSED AND REMANDED. Considered by Harris, P.J., and Larson, Schultz, Snell, and Andreasen, JJ. Opinion by Larson, J. (5 pages $2.00)

The plaintiffs, James Davis and George Tlagg, filed a petition for an injunction in district court to prevent the Polk County Auditor, as election commissioner, from using electronic voting procedures under Iowa Code chapter 52 (1985), on the ground that the equipment proposed to be used did not meet the specifications for conventional voting booths prescribed by Iowa Code section 49.25(3). The defendants filed a motion to dismiss for lack of subject matter jurisdiction, asserting the plaintiffs' failure to exhaust their administrative remedies. The motion was overruled, and the district court issued the injunction. We granted the defendant's application for permission to appeal in advance of final judgment and stayed further district court proceedings. OPINION HOLDS: The voting machine board clearly falls within the defini­ tion of agency and, under our administrative procedure act, ch. 17A, the plaintiffs would ordinarily be required to pursue remedies through the board before seeking judicial intervention. Judicial intervention may be sought without exhaustion of administrative remedies, if it is necessary to prevent "irreparable injury." Here, the plaintiffs have not shown irreparable injury, nor have they claimed any. Accordingly, we reverse and remand with instructions to dismiss the suit.

NO. 89-833. DAVENPORT BANK AND TRUST COMPANY v. IOWA DEPARTMENT OF REVENUE AND FINANCE. Appeal from the Iowa District Court or Scott County, Edward B. de Silva, Judge. REVERSED AND REMANDED. Considered by McGiverin, C.J., and Harris, Schultz, Carter, and Lavorato, JJ. Opinion by Carter, J. (8 pages $2.40)

The Davenport Bank and Trust Company (the bank), is an Iowa financial institution subject to the franchise tax imposed by section 422.60 (1987). Following an audit procedure, the Iowa Department of Revenue and Finance (the agency) assessed additional franchise taxes based on. the agency's inclusion in the franchise tax base of the amount which the bank received during 1982-85 as interest on bonds issued by the government of Puerto Rico. The bank pro­ tested that portion of the additional franchise taxes. The district court upheld the agency's determination that the Puerto Rico bond interest was includable in the bank's franchise tax base. It is from that order that the present appeal is taken. OPINION HOLDS: We hold that the Puerto Rico bond interest is not includable in the net 122 SUPREME COURT IAB 7/11/90

NO. 89-833. DAVENPORT BANK AND TRUST COMPANY v. IOWA DEPARTMENT OF REVENUE AND FINANCE (continued), income of the financial institution computed in accordance with those provisions of section 422.35 which are incorporated under section 422.61(4). Consequently, we find the district court erred in upholding the agency order including interest from the Puerto Rico bonds in the base upon which the bank's franchise tax was computed. The judgment of the district court is reversed.

No. 89-1493. STATE v. BYERS. Appeal from the Iowa District Court for Linn County, Kristin L. Hibbs and Lynne E. Brady, Judges. AFFIRMED. Considered by Harris, P.J., and Larson, Schultz, Snell, and Andreasen, JJ. Opinion by Snell, J. (6 pages $2.40) Lawrence Byers was convicted and sentenced, pursuant to Iowa Code section 204.401(1)(a), for possession of cocaine with intent to deliver. Because the conviction was for a second or subsequent offense, the sentencing court enhanced the sentence as permitted by Iowa Code section 204.411(1). The court then provided, pursuant to Iowa Code section 204.413, that Byers would not be eligible for parole until serving one-third of the maximum sentence. Byers has appealed, ‘challenging only the application to him of a mandatory minimum term under section 204.413. He points out that section 204.413, by its terms, applies only to sentences imposed under section 204.401(1)(a). He argues he was not sentenced under section 204.401(1)(a), but rather under section 204.411 (the enhanced penalty statute). OPINION HOLDS: We disagree with Byers' argument, since we cannot accept the premise that section 204.411 is a separate sentencing provision. We conclude that section 204.411 must be seen as an enhancement provision to sentences imposed pursuant to section 204.401. We note that the terms of section 204.411 do not define a crime or determine its severity, as do other provisions of chapter 204. Section 204.411 can be applied only after conviction pursuant to the specific sections of chapter 204 that do define particular offenses and determine their severity, such as section 204.401. Likewise, the level of the offense with which Byers was charged and the minimum mandatory punishment cannot be determined without reference to section 204.401(1)(a). This is the provision of the Code under which Byers was sentenced. The sentencing court correctly applied section 204.411(1) to enhance the sentence imposed pursuant to section 204.401(1)(a). It correctly applied section 204.413 to assure that a minimum of one-third of the enhanced sentence imposed pursuant to section 204.401(1)(a) is served by Byers. IAB 7/11/90 SUPREME COURT 123

NO. 88-1413. KIRK v. FARM & CITY INSURANCE COMPANY. On review from the Iowa Court of Appeals. Appeal from the Iowa District Court for Polk County, Ray A. Fenton, Judge. COURT OF APPEALS DECISION VACATED; JUDGMENT OF DISTRICT COURT REVERSED ON APPEAL, AFFIRMED ON CROSS-APPEAL. Considered by McGiverin, C.J., and Larson, Carter, Lavorato, and Neuman, JJ. Opinion by Larson, J. (14 pages $5.60) Vance Kirk and two companions were killed in a one-car . accident in Illinois in April 1984. The car was owned by Lanny Weeks, one of the occupants. Neither Weeks nor the car was insured. Vance Kirk was covered under two insur­ ance policies with Farm & City Insurance Company, both of them containing uninsured motorist coverage in the amount of $20,000. Kirk's estate filed suit to recover under the policy and demanded punitive damages for the insurance company's failure to pay. Kirk's parents filed a separate suit to recover for intentional infliction of emotional distress, allegedly caused by Farm & City's refusal to pay the full amount of the uninsured coverage. On the estate's case, the district court awarded damages, including punitive damages, against- Farm & City. The court denied the parents' claim. Farm & City appealed in the first case, and the plaintiffs "cross-appealed" in the second. We transferred the appeals to the court of appeals, which reversed the judgment for punitive damages, affirmed the denial of damages for intentional infliction of emotional distress, and remanded the estate's case for a determina­ tion of whether the facts justified a recovery under a first-party, bad-faith claim. OPINION HOLDS: I. We conclude, as did the court of appeals, that the false representations found by the district court were not established. We also believe that there is no substantial evidence of reliance. We hold, therefore, that the punitive damages based on alleged false statements were improperly allowed. II. The court of appeals remanded for a reconsideration of the bad-faith claim. We agree with the defendant that the court of appeals should not have remanded the case for this purpose. The issues raised by the defendant in denying full payment under the policy were "fairly debatable." III. We reverse on the defendant's appeal and remand for dismissal of the administrator's claims based on both the fraud and bad-faith theories. IV. The parents' cross-appeal challenges the district court's dismissal of their claim for intentional infliction of severe emotional distress. We believe that the plain­ tiff failed to establish that the defendant's conduct was so outrageous that recovery could be possible under this theory. Accordingly, we affirm on the cross-appeal. 124 SUPREME COURT IAB 7/11/90

NO. 88-1546. HERITAGE CABLEVISION v. BOARD OF REVIEW. On review from the Iowa Court of Appeals. Appeal from the Iowa District Court for Cerro Gordo County, Jon S. Scoles, Judge. DECISION OF COURT OF APPEALS VACATED; DISTRICT COURT JUDGMENT AFFIRMED. Considered by McGiverin, C.J., and Larson, Carter, Lavor.ato, and Neuman, JJ. Opinion by Carter, J. (13 pages $5.20) This dispute involves the assessment of those assets of the plaintiff, Heritage Cablevision, located in Cerro Gordo County which are taxable as real property. In the plain­ tiff's appeal of the assessment pursuant to Iowa Code section 441.38 (1989), the district court reduced the aggregate assessment as confirmed by the boards of review from $3,168,519 to $1,611,449. The court of appeals reinstated the assessed valuation which had been confirmed by the board of review. We granted further review. OPINION HOLDS: Our cases interpreting section 441.21 indicate that the market data or comparable sales approach is to be utilized in determining market value of property assessed under that section unless market value "cannot be readily established in that manner." The property owner may seek to establish, either by challenging the assessor's proof or by independent evidence, that market value cannot be accurately established through comparable sales and then attempt to establish market value through the so-called "other factors" approach. The assessors or board of review in the present case have never claimed that the disputed valuations may be readily established by comparable sales alone. They have utilized the "other factors" approach throughout in attempting to show the market value of plaintiff's property. The advantage of using multiple appraisal techniques lies primarily in those instances where the differing techniques lead to similar conclusions concerning market value and therefore tend to support each other. We believe the district court's conclusion reject­ ing six comparable sales was valid. We believe that the valuations which the appraiser derived from these sales failed to exclude the substantial value which the buyers were receiving from the business enterprise with which the taxable assets were associated. Although the witness attempted to remove a portion of the sales price attribut­ able to the franchise value, we do not believe this adjustment produced a figure which is in any way represen­ tative of the fair and reasonable exchange between a willing buyer and willing seller of only the taxable assets. We also conclude that the district court acted correctly in giving slight if any weight to that ’witness's income approach to valuation. The district court's valuation was consistent with the witness's depreciated cost valuation less the amount attributable to the ficti­ tious leases. This valuation is considerably more than that which was reflected in the testimony of the plain­ tiff's experts. We conclude that the district court's valuation most nearly reflects the market value to be accorded the disputed assets and affirm its judgment and decree. IAB 7/11/90 SUPREME COURT 125

No. 89-958. HARRINGTON v. SCHOSSOW. Appeal from the Iowa District Court for Woodbury County, Dewie J. Gaul, Judge. AFFIRMED. Considered by Harris, P.J., and Larson, Schultz, Snell, and Andreasen, JJ., Opinion by Snell, J. (15 pages .$6.00)

This . is an interlocutory appeal from the district court's refusal to dismiss a portion of Linda K. Harrington's action against a motor vehicle enforcement officer for the Iowa Department of Transportation. She claims the officer used excessive force in arresting her and that she suffered damages as a result. The trial court dismissed all of her counts except the first which alleged a cause of action against the officer pursuant to 42 U.S.C. section 1983. It is from this decision that the officer appeals. He contends that Harrington sued him in his official capacity, and as a result the State is the real party in interest. He invokes the sovereign immunity of the State and asserts that the trial court lacks jurisdiction over the case as a result. Alternatively, he argues that section 1983 is inapplicable to him in his official capacity as a matter of statutory interpretation. Harrington argues that the first count of her petition is directed against Schossow in his individual, rather than official, capacity. As a result, she argues that the State is not the real party in interest and its immunity from suit is not implicated. She also argues that as to an individual section 1983 is manifestly applicable to officer Schossow's alleged conduct. state officials. We conclude that Harrington instituted her section 1983 action against Schossow in his individual capacity and that as an individual, section 1983 is manifestly applicable to the officer's alleged conduct. OPINION HOLDS: We conclude that Harrington's petition does state a claim against Schossow in his individual capacity. She states with particularity facts which, if proven, demonstrate that Schossow acted "willfully, knowingly, purposefully, and with malice," to deprive her of interests protected under the constitution. In addition, she specifically states that Schossow acted maliciously or with reckless disregard for her rights. Finally, as Harrington points out, she asks that "judgment be entered against the Defendant LaVerne Schossow. " We need not decide at this juncture whether a judgment against Schossow would require that the State indemnify him. Even if we assume that such is the case, we must conclude that an indemnification statute cannot be used by the State, to convert individual action into official conduct. We must conclude that the State cannot act to unilaterally bar a section 1983 action against an official in his or her individual capacity simply because the claim is not cognizable under chapter 25A of the Code. While Iowa Code section 25A.23 may act as a bar to suits against individual state employees under the state tort claims act, it does not follow that a federal 126 SUPREME COURT IAB 7/11/90

No. 89-958. HARRINGTON v. SCHOSSOW (continued), cause of action is similarly barred. If such were the case, the State could immunize its employees and make enforcement of federal civil rights impossible against state officials. We conclude that Harrington's section 1983 action against Schossow in his individual capacity is not barred nor can the State's sovereign immunity be extended unilaterally to embrace Schossow's individual actions.

No. 89-1633. VANCE V. PEKIN INSURANCE CO. Certified questions of law from the United States District Court for the Southern District of" Iowa, William C. Stuart, Judge. CERTIFIED QUESTION ANSWERED. Considered by McGiverin, C.J., and Larson, Carter, Lavorato, and Neuman, JJ. Opinion by Lavorato, J. (12 pages $4.80)

In 1986 the residence of Donald and Susan Vance was damaged by fire. The Vances are coinsureds under a home­ owner's insurance policy with Pekin. In 1987 the Vances filed a law action against Pekin. The Vances sought to recover for the damages under the policy. Later in 1987 Donald was convicted of second-degree arson for setting fire to the couple's residence. Donald withdrew as plaintiff in the civil action, leaving Susan as the sole plaintiff. Now, the United States District Court for the Southern District of Iowa has certified two questions to us. First, may an innocent coinsured spouse recover under a fire insurance policy when the other coinsured spouse has been convicted of arson? Second, if the innocent coinsured spouse can recover, what proportion of the casualty loss may such coinsured recover? OPINION HOLDS: In answering the first question, we adopt the "best reasoned rule." Under this approach, recovery depends--not on property rationales or marital relationships—but on a contract analysis of the insurance policy provisions. After examining the policy, we conclude that the exclusion here clearly and unequivocally says that a loss caused by an intentional act of an insured party bars coverage. Donald Vance was clearly an insured so his arson bars recovery by any insured under the policy and that includes Susan Vance. As such, our answer in this case to the first certified question is no. Susan is denied coverage under the policy. We need not answer the second question.

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