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Iowa Administrative Bulletin

Published Biweekly VOLUME XX NUMBER 11 November 19, 1997 Pages 941 to 1064

CONTENTS IN THIS ISSUE

Pages 957 to 1062 include ARC 7644A to ARC 7670A

AGENDA

Administrative rules review committee 946

Committee actions 949

ALL AGENCIES

Schedule for rule making 944

Publication procedures 945

Agency identification numbers 954

BANKING

Notice--Agricultural credit corporation
maximum loan rate 957

CITATION OF ADMINISTRATIVE RULES 943

ECONOMIC DEVELOPMENT, IOWA
DEPARTMENT OF[261]

Filed Emergency After Notice, Iowa jobs training
program, 7.1, 7.3, 7.4, 7.7 to 7.32
ARC 7649A 1024

Filed, Community development block grant,
23.2, 23.6(3), 23.7, 23.17(4) ARC 7648A 1030

Filed, Community economic betterment program--
wages, project period, 53.2, 53.6(1),
53.7(2)"b," 53.8, 53.9(4), 53.13(3)"a"(2)
ARC 7647A
1031

Filed, Community economic betterment program--
venture project, 53.2, 53.6(3), 53.9
ARC 7646A
1033

Filed, Physical infrastructure assistance program,
ch 61 ARC 7645A 1034

EDUCATION DEPARTMENT[281]

Filed, ICN subsidization reimbursement
procedures, ch 8 ARC 7651A 1036

Filed, Minimum school day; student records,
12.2(3), 12.3(6) ARC 7650A 1037

ENVIRONMENTAL PROTECTION
COMMISSION[567]

NATURAL RESOURCES DEPARTMENT[561] "umbrella"

Notice, Water wells; wastewater treatment and
disposal systems, ch 49, 60.3(2), 64.15(3),
ch 69 ARC 7652A 957

Notice, Groundwater professionals, ch 134 title,
134.2(2)"f" ARC 7654A 981

Filed, Storm water discharge, 64.6, 64.8(2),
64.15, 64.16 ARC 7653A 1037

HUMAN SERVICES DEPARTMENT[441]

Notice, FIP and FMAP, 40.27(1), 41.27,
75.52(1), 75.57 ARC 7656A 981

Notice, Medicaid reimbursement for chiro-
practors, 78.8, 79.1(2) ARC 7657A 982

INSURANCE DIVISION[191]

COMMERCE DEPARTMENT[181]"umbrella"

Filed, Voluntary licensing of insurance agency,
10.2, 10.8 to 10.24 ARC 7659A 1039

LABOR SERVICES DIVISION[875]

WORKFORCE DEVELOPMENT DEPARTMENT[871]"umbrella"

Notice, Boilers and pressure vessels, rescind
347--chs 41, 42, 49; adopt 875--chs 200 to
203; transfer and amend 347--chs 43 to
48 to 875--chs 204 to 209 ARC 7666A 984

Filed, Fees, Rescind 347--ch 75; adopt
875--ch 75 ARC 7665A 1040

PERSONNEL DEPARTMENT[581]

Filed, IPERS, 21.5, 21.6(9), 21.11(6), 21.13,
21.16(2), 21.19(5), 21.24(3) ARC 7667A 1041

PETROLEUM UST FUND BOARD, IOWA
COMPREHENSIVE[591]

Notice, Remedial or insurance claims,
11.1(3)"b" ARC 7668A 993

PROFESSIONAL LICENSURE DIVISION[645]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Notice, Cosmetology, 60.2(2), 60.5, 60.6(3),
60.7(2), 60.8(3), 60.10(1), 60.12, 61.6,
62.1 ARC 7663A 994

PUBLIC FUNDS--AVAILABILITY

Public Health Department[641]
Childhood lead poisoning 956

PUBLIC HEALTH DEPARTMENT[641]

Notice of Public Funds Availability 956

PUBLIC HEARINGS

Summarized list 950

PUBLIC SAFETY DEPARTMENT[661]

Filed, Sex offender registry, 8.301 to 8.305
ARC 7661A 1045

Filed, Video surveillance and excursion
gambling boats, 23.1, 23.4, 23.5, 23.9
ARC 7660A
1053

RACING AND GAMING COMMISSION[491]

INSPECTIONS AND APPEALS DEPARTMENT[481]"umbrella"

Filed, Partnerships owning racing animals;
licensure; distribution of receipts, 13.17,
13.18(1), 20.11(6), 20.15(5) ARC 7655A 1056

SUBSTANCE ABUSE COMMISSION[643]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Notice, Assessment and evaluation programs,
3.25 ARC 7662A 998

Notice, OWI law, ch 8 ARC 7664A 1004

TRANSPORTATION DEPARTMENT[761]

Notice, Substance abuse evaluation and treatment;
course for drinking drivers, 620.5, 620.15,
620.16 ARC 7644A 1006

UTILITIES DIVISION[199]

COMMERCE DEPARTMENT[181]"umbrella"

Filed, Safety and service standards, 9.1(1), 10.1,
10.3(4), 10.7, 10.8, 10.9(2), 10.10(1), 10.12(1),
12.7, 19.2(5), 19.5(2), 19.6(3), 19.8,
20.5(2), 20.6(3), 20.7(2), 25.2 ARC 7670A 1057

Filed, Natural gas transportation, 19.13
ARC 7669A
1061

WORKFORCE DEVELOPMENT BOARD/
SERVICES DIVISION[877]

WORKFORCE DEVELOPMENT DEPARTMENT[871]"umbrella"

Notice, Iowa job training partnership program,
rescind 345--ch 14; adopt 877--ch 12
ARC 7658A 1007

PUBLISHED UNDER AUTHORITY OF IOWA CODE SECTIONS 2B.5 AND 17A.6

__________________________________

PREFACE

The Iowa Administrative Bulletin is published biweekly in pamphlet form pursuant to Iowa Code chapters 2B and 17A and contains Notices of Intended Action on rules, Filed and Filed Emergency rules by state agencies.

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 Public Hearings, Attorney General Opinions and Supreme Court Decisions.

The Bulletin may also contain Public Funds Interest Rates [12C.6]; Workers' Compensation Rate Filings [515A.6(7)]; Usury [535.2(3)"a"]; Agricultural Credit Corporation Maximum Loan Rates [535.12]; and Regional Banking--Notice of Application and Hearing [524.1905(2)].

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

KATHLEEN K. BATES, Administrative Code Editor Telephone: (515)281-3355

ROSEMARY DRAKE, Assistant Editor (515)281-7252

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, 1997, to June 30, 1998 $237.00 plus $11.85 sales tax

Second quarter October 1, 1997, to June 30, 1998 $178.00 plus $8.90 sales tax

Third quarter January 1, 1998, to June 30, 1998 $118.00 plus $5.90 sales tax

Fourth quarter April 1, 1998, to June 30, 1998 $ 60.00 plus $3.00 sales tax

Single copies may be purchased for $17.50 plus $0.88 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 - $1,086.00 plus $54.30 sales tax

(Price includes 22 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 $10.55 plus $0.53 tax.)

Iowa Administrative Code Supplement - $382.00 plus $19.10 sales tax

(Subscription expires June 30, 1998)

All checks should be made payable to the Iowa State Printing Division. Send all inquiries and subscription orders to:

Customer Service Center

Department of General Services

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Telephone: (515)242-5120

Schedule for Rule Making
1997

NOTICE
SUBMISSION DEADLINE

NOTICE PUB.
DATE
HEARING OR
COMMENTS 20 DAYS
FIRST
POSSIBLE ADOPTION DATE
35 DAYS
ADOPTED FILING DEADLINE
ADOPTED PUB.
DATE
FIRST
POSSIBLE EFFECTIVE DATE
POSSIBLE EXPIRATION OF NOTICE 180 DAYS
Dec. 13 '96
Jan. 1
Jan. 21
Feb. 5
Feb. 7
Feb. 26
Apr. 2
June 30
Dec. 27 '96
Jan. 15
Feb. 4
Feb. 19
Feb. 21
Mar. 12
Apr. 16
July 14
Jan. 10
Jan. 29
Feb. 18
Mar. 5
Mar. 7
Mar. 26
Apr. 30
July 28
Jan. 24
Feb. 12
Mar. 4
Mar. 19
Mar. 21
Apr. 9
May 14
Aug. 11
Feb. 7
Feb. 26
Mar. 18
Apr. 2
Apr. 4
Apr. 23
May 28
Aug. 25
Feb. 21
Mar. 12
Apr. 1
Apr. 16
Apr. 18
May 7
June 11
Sept. 8
Mar. 7
Mar. 26
Apr. 15
Apr. 30
May 2
May 21
June 25
Sept. 22
Mar. 21
Apr. 9
Apr. 29
May 14
May 16
June 4
July 9
Oct. 6
Apr. 4
Apr. 23
May 13
May 28
May 30
June 18
July 23
Oct. 20
Apr. 18
May 7
May 27
June 11
June 13
July 2
Aug. 6
Nov. 3
May 2
May 21
June 10
June 25
June 27
July 16
Aug. 20
Nov. 17
May 16
June 4
June 24
July 9
July 11
July 30
Sept. 3
Dec. 1
May 30
June 18
July 8
July 23
July 25
Aug. 13
Sept. 17
Dec. 15
June 13
July 2
July 22
Aug. 6
Aug. 8
Aug. 27
Oct. 1
Dec. 29
June 27
July 16
Aug. 5
Aug. 20
Aug. 22
Sept. 10
Oct. 15
Jan. 12 '98
July 11
July 30
Aug. 19
Sept. 3
Sept. 5
Sept. 24
Oct. 29
Jan. 26 '98
July 25
Aug. 13
Sept. 2
Sept. 17
Sept. 19
Oct. 8
Nov. 12
Feb. 9 '98
Aug. 8
Aug. 27
Sept. 16
Oct. 1
Oct. 3
Oct. 22
Nov. 26
Feb. 23 '98
Aug. 22
Sept. 10
Sept. 30
Oct. 15
Oct. 17
Nov. 5
Dec. 10
Mar. 9 '98
Sept. 5
Sept. 24
Oct. 14
Oct. 29
Oct. 31
Nov. 19
Dec. 24
Mar. 23 '98
Sept. 19
Oct. 8
Oct. 28
Nov. 12
Nov. 14
Dec. 3
Jan 7 '98
Apr. 6 '98
Oct. 3
Oct. 22
Nov. 11
Nov. 26
Nov. 28
Dec. 17
Jan. 21 '98
Apr. 20 '98
Oct. 17
Nov. 5
Nov. 25
Dec. 10
Dec. 12
Dec. 31
Feb. 4 '98
May 4 '98
Oct. 31
Nov. 19
Dec. 9
Dec. 24
Dec. 26
Jan. 14 '98
Feb.18 '98
May 18 '98
Nov. 14
Dec. 3
Dec. 23
Jan. 7 '98
Jan. 9 '98
Jan. 28 '98
Mar. 4 '98
June 1 '98
Nov. 28
Dec. 17
Jan. 6 '98
Jan. 21 '98
Jan. 23 '98
Feb. 11 '98
Mar. 18 '98
June 15 '98
Dec. 12
Dec. 31
Jan. 20 '98
Feb. 4 '98
Feb. 6 '98
Feb. 25 '98
Apr. 1 '98
June 29 '98
Dec. 26
Jan. 14 '98
Feb. 3 '98
Feb. 18 '98
Feb. 20 '98
Mar. 11 '98
Apr. 15 '98
July 13 '98

PRINTING SCHEDULE FOR IAB


ISSUE NUMBER
SUBMISSION DEADLINE
ISSUE DATE
13
Friday, November 28, 1997
December 17, 1997
14
Friday, December 12, 1997
December 31, 1997
15
Friday, December 26, 1997
January 14, 1998

PLEASE NOTE:

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.

PUBLICATION PROCEDURES

TO: Administrative Rules Coordinators and Text Processors of State Agencies

FROM: Kathleen K. Bates, Iowa Administrative Code Editor

SUBJECT: Publication of Rules in Iowa Administrative Bulletin

The Administrative Code Division uses Interleaf 6 to publish the Iowa Administrative Bulletin and can import documents directly from most other word processing systems, including Ami Pro, Microsoft Word, Professional Write, Word for Windows (Word 7 or earlier), and WordPerfect.

1. To facilitate the processing of rule-making documents, we request a 3.5" High Density (not Double Density) IBM PC-compatible diskette of the rule making. Please indicate on each diskette the following information: agency name, file name, format used for exporting, and chapter(s) amended. Diskettes may be delivered to the Administrative Code Division, 4th Floor, Lucas State Office Building or included with the documents submitted to the Governor's Administrative Rules Coordinator.

2. Alternatively, if you have Internet E-mail access, you may send your document as an attachment to an E-mail message, addressed to both of the following:

bcarr@legis.state.ia.us

kbates@legis.state.ia.us

Please note that changes made prior to publication of the rule-making documents are reflected on the hard copy returned to agencies by the Governor's office; diskettes are returned unchanged.

Your cooperation helps us print the Bulletin more quickly and cost-effectively than was previously possible and is greatly appreciated.

ADMINISTRATIVE RULES REVIEW COMMITTEE ACTIONS

NOVEMBER 1996 THROUGH OCTOBER 1997

OBJECTION (17A.4(2) and (17A.4(4)"a")

CORRECTIONS DEPARTMENT[201]
Inmate telephone commissions, 20.20, ARC 7298A, IAB 6/18/97, ARRC meeting 7/8/97.
Objection filed 7/22/97 (Pursuant to Iowa Code section 17A.4(2), the rule ceases to be effective January 18, 1998.)
SECRETARY OF STATE[721]
County and city election ordinances, 21.30, 21.31, ARC 7295A, IAB 6/18/97, ARRC meeting 7/8/97.
The rules were amended ARC 7456A, IAB 8/27/97; objection was withdrawn ARRC meeting 9/8/97.
70-DAY DELAY (17A.4(5))

ENVIRONMENTAL PROTECTION COMMISSION[567]
Regents tire-derived fuel program, ch 216, ARC 7242A, IAB 5/21/97, delayed 70 days from 6/25/97, ARRC meeting 6/10/97.
Delay withdrawn ARRC meeting 8/19/97, effective 8/20/97.
REVENUE AND FINANCE DEPARTMENT[701]
Communication services, 18.20(5), 18.20(6), ARC 6997A, IAB 1/15/97, delayed 70 days from 2/19/97, ARRC meeting 2/10/97.
Delay expired 4/30/97.
TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION, IOWA[751]
Authorized use and users, ch 7, ARC 7186A, IAB 4/9/97, delayed 70 days from 5/14/97, ARRC meeting 5/13/97.
Ch 7 rescinded effective 7/9/97, ARC 7361A, IAB 7/16/97.
GENERAL REFERRAL TO SPEAKER OF THE HOUSE AND PRESIDENT OF THE SENATE (17A.8(7))

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]
Groundwater protection fund, ch 45, ARRC meeting 7/8/97
CORRECTIONS DEPARTMENT[201]
Inmate telephone commissions, 20.20, ARC 7298A, IAB 6/8/97, ARRC meeting 7/8/97
HUMAN SERVICES DEPARTMENT[441]
Disability services management, 25.42, ARC 6960A, IAB 1/1/97, ARRC meeting 1/6/97
FIP, Medicaid and social service block grant programs, amendments to chs 41, 75, 86, 153, ARC 6961A, IAB 1/1/97, ARRC meeting 1/6/97
Eligibility for child care, ch 130, ARRC meeting 6/10/97
INSURANCE DIVISION[191]
Postdelivery benefits and care, 70.8, 70.9, ch 81, ARC 6991A, IAB 1/1/97, ARRC meeting 1/7/97
LABOR SERVICES DIVISION[347]
Construction contractor registration, ch 150, ARC 7062A, IAB 2/16/97, ARRC meeting 3/10/97
PUBLIC HEALTH DEPARTMENT[641]
Decision-making assistance program and parental notification of intent to terminate a pregnancy through abortion, ch 89,
ARC 6896A, IAB 12/4/96, ARRC meeting 1/6/97
PUBLIC SAFETY DEPARTMENT[661]
Direct breath testing, 7.2, ARRC meeting 10/14/97
REVENUE AND FINANCE DEPARTMENT[701]
Motor vehicle use tax on long-term leases, 26.68, 31.4, 31.5, 32.11, 34.5, 34.9, 34.10, ARC 6974A, IAB 1/1/97, ARRC meeting 1/7/97
SECRETARY OF STATE[721]
City and county election ordinances--initiative and referendum, 21.30, 21.31, ARC 7295A, IAB 6/18/97, ARRC meeting 8/19/97
TRANSPORTATION DEPARTMENT[761]
Handicapped parking, 411.3, ARRC meeting 2/10/97
POW license plates--retention and renewal by surviving spouse, ARRC meeting 10/14/97
MISCELLANEOUS

Joe Royce's salary--one step increase, effective 6/27/97; ARRC meeting 7/8/97
Approved paying $350 NAARR membership dues, ARRC meeting 9/8/97

PUBLIC HEARINGS

To All Agencies:

The Administrative Rules Review Committee voted to request that Agencies comply with Iowa Code section 17A.4(1)"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.




ENVIRONMENTAL PROTECTION COMMISSION[567]



Water wells; wastewater treatment
and disposal systems,
ch 49, 60.3(2), 64.15(3), ch 69
IAB 11/19/97 ARC 7652A
Conference Rooms 4E and 4W
Wallace State Office Bldg.
Des Moines, Iowa
December 9, 1997
9 a.m. to 12 noon

Atlantic Public Library
507 Poplar
Atlantic, Iowa
December 10, 1997
1 to 4 p.m.

Siebens Forum--Room 9
Buena Vista University
4th and Grand Avenue
Storm Lake, Iowa
December 11, 1997
9 a.m. to 12 noon

Amana Bldg., Iowa Hall, Rooms A-B
Kirkwood Community College
6301 Kirkwood Blvd. S.W.
Cedar Rapids, Iowa
December 15, 1997
1 to 4 p.m.

City Council Chambers
112 S. Main St.
Fairfield, Iowa
December 16, 1997
9 a.m. to 12 noon

Muse-Norris Conference Room
North Iowa Area Community College
Mason City, Iowa
December 17, 1997
12 noon to 3 p.m.
LABOR SERVICES DIVISION[875]


Boilers and pressure vessels,
rescind 347--chs 41, 42, 49;
adopt 875--chs 200 to 203;
transfer and amend 347--chs 43
to 48 to 875--chs 204 to 209
IAB 11/19/97 ARC 7666A
1000 E. Grand Ave.
Des Moines, Iowa
December 11, 1997
3 p.m.
(If requested)
PETROLEUM UST FUND BOARD, IOWA COMPREHENSIVE[591]


Remedial and insurance claims,
11.1(3)"b"
IAB 11/19/97 ARC 7668A
Conference Room--6th Floor
Lucas State Office Bldg.
Des Moines, Iowa
December 9, 1997
10 a.m.
Remedial and insurance claims,
11.1(3)"n"(3)
IAB 11/5/97 ARC 7615A
Conference Room--6th Floor
Lucas State Office Bldg.
Des Moines, Iowa
November 25, 1997
10 a.m.
Payments for RBCA analysis
on "monitor only" sites, 11.8
IAB 11/5/97 ARC 7616A
Conference Room--6th Floor
Lucas State Office Bldg.
Des Moines, Iowa
November 25, 1997
10 a.m.
PROFESSIONAL LICENSURE DIVISION[645]


Cosmetology,
60.2(2)"a," 60.5, 60.6(3), 60.7(2),
60.10(1), 60.12, 61.6, 62.1
IAB 11/19/97 ARC 7663A
Room 19--Lower Level
Capitol Bldg.
Des Moines, Iowa
December 9, 1997
1 to 3 p.m.
PUBLIC HEALTH DEPARTMENT[641]


Tattooing,
22.1 to 22.7
IAB 11/5/97 ARC 7642A
Conference Room--3rd Floor
Side One
Lucas State Office Bldg.
Des Moines, Iowa
November 26, 1997
10 a.m.
Gambling treatment program,
ch 162
IAB 11/5/97 ARC 7641A
(ICN Network)

ICN Room 326
Lucas State Office Bldg.
Des Moines, Iowa
November 25, 1997
10 a.m.

Scott Community College
Room 210
500 Belmont Rd.
Bettendorf, Iowa
November 25, 1997
10 a.m.

Loess Hills AEA
ICN Room
(6 miles east of Council Bluffs
on Hwy. 92)
Council Bluffs, Iowa
November 25, 1997
10 a.m.

Dubuque AEA
ICN Classroom
2310 Chaney Rd.
Dubuque, Iowa
November 25, 1997
10 a.m.

Western Hills AEA
Room 209A
1520 Morningside Ave.
Sioux City, Iowa
November 25, 1997
10 a.m.
PUBLIC SAFETY DEPARTMENT[661]


Building code--manufactured homes,
16.626
IAB 10/22/97 ARC 7609A
Leavitt Room
Des Moines Botanical Center
909 E. River Dr.
Des Moines, Iowa
November 20, 1997
10:30 a.m.
REGENTS BOARD[681]


Regent institutions--Iowa
resident tuition and fees,
1.4(2)"i"
IAB 11/5/97 ARC 7627A
Conference Room
First Floor West
Old Historical Bldg.
Des Moines, Iowa
November 26, 1997
2 p.m.
Personnel administration,
3.39
IAB 11/5/97 ARC 7626A
Conference Room
First Floor West
Old Historical Bldg.
Des Moines, Iowa
November 26, 1997
2 p.m.
REGENTS BOARD[681]
(Cont'd)


Consent for purchasing--removal
of regents' roll call vote,
8.9(1)"a"
IAB 11/5/97 ARC 7625A
Conference Room
First Floor West
Old Historical Bldg.
Des Moines, Iowa
November 26, 1997
2 p.m.
SECRETARY OF STATE[721]


Election forms and voting
systems, 21.800(3)"b"(1),
22.201(2), 22.221
IAB 11/5/97 ARC 7622A
Office of Secretary of State
Second Floor
Hoover State Office Bldg.
Des Moines, Iowa
November 25, 1997
1:30 p.m.
SUBSTANCE ABUSE COMMISSION[643]


Assessment and evaluation,
3.25
IAB 11/19/97 ARC 7662A
(ICN Network)

Continuing Ed. Bldg.--ICN Room 2
Iowa Western Community College
2700 College Rd.
Council Bluffs, Iowa
December 11, 1997
10 a.m. to 12 noon

ICN Room 326--3rd Floor
Lucas State Office Bldg.
Des Moines, Iowa
December 11, 1997
10 a.m. to 12 noon

Larson Hall--Room 60
Muscatine Community College
152 Colorado St.
Muscatine, Iowa
December 11, 1997
10 a.m. to 12 noon

Buena Vista University--Room 7A
610 W. 4th St.
Storm Lake, Iowa
December 11, 1997
10 a.m. to 12 noon

Pinecrest Office Bldg.
1407 Independence Ave.
Waterloo, Iowa
December 11, 1997
10 a.m. to 12 noon
OWI law, ch 8
IAB 11/19/97 ARC 7664A
(ICN Network)

Continuing Ed. Bldg.--ICN Room 2
Iowa Western Community College
2700 College Rd.
Council Bluffs, Iowa
December 11, 1997
10 a.m. to 12 noon

ICN Room 326--3rd Floor
Lucas State Office Bldg.
Des Moines, Iowa
December 11, 1997
10 a.m. to 12 noon

Larson Hall--Room 60
Muscatine Community College
152 Colorado St.
Muscatine, Iowa
December 11, 1997
10 a.m. to 12 noon

Buena Vista University--Room 7A
610 W. 4th St.
Storm Lake, Iowa
December 11, 1997
10 a.m. to 12 noon

Pinecrest Office Bldg.
1407 Independence Ave.
Waterloo, Iowa
December 11, 1997
10 a.m. to 12 noon
TRANSPORTATION DEPARTMENT[761]


Financial liability coverage cards,
425.10(8), ch 641
IAB 11/5/97 ARC 7612A
Conference Room--Lower Level
Park Fair Mall
100 Euclid Ave.
Des Moines, Iowa
December 2, 1997
10 a.m.
(If requested)
OWI and implied consent,
620.5, 620.15, 620.16
IAB 11/19/97 ARC 7644A
Conference Room--Lower Level
Park Fair Mall
100 Euclid Ave.
Des Moines, Iowa
December 11, 1997
10 a.m.
(If requested)
WORKFORCE DEVELOPMENT BOARD/SERVICES DIVISION[877]


Iowa job training partnership
program, rescind 345--ch 14;
adopt 877--ch 12
IAB 11/19/97 ARC 7658A
Room 135
150 Des Moines St.
Des Moines, Iowa
December 9, 1997
10 a.m.

CITATION of Administrative Rules

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

441 IAC 79 (Chapter)

441 IAC 79.1(249A) (Rule)

441 IAC 79.1(1) (Subrule)

441 IAC 79.1(1)"a" (Paragraph)

441 IAC 79.1(1)"a"(1) (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

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 small capitals at the left-hand margin, e.g., BEEF INDUSTRY COUNCIL, IOWA [101].

The following list will be updated as changes occur:

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]

Agricultural Development Authority[25]

Soil Conservation Division[27]

ATTORNEY GENERAL[61]

AUDITOR OF STATE[81]

BEEF INDUSTRY COUNCIL, IOWA[101]

blind, department For The[111]

CITIZENS' AIDE[141]

CIVIL RIGHTS COMMISSION[161]

COMMERCE DEPARTMENT[181]

Alcoholic Beverages Division[185]

Banking Division[187]

Credit Union Division[189]

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NOTICES

NOTICE -- AGRICULTURAL CREDIT CORPORATION MAXIMUM LOAN RATE

In accordance with the provisions of Iowa Code section 535.12, the Superintendent of Banking has determined that the maximum rate of interest that may be charged on loans by Agricultural Credit Corporations as defined in Iowa Code section 535.12, subsection 4, shall be:

September 1, 1996 -- September 30, 1996 6.90%

October 1, 1996 -- October 31, 1996 6.80%

November 1, 1996 -- November 30, 1996 6.75%

December 1, 1996 -- December 31, 1996 6.75%

January 1, 1997 -- January 31, 1997 6.65%

February 1, 1997 -- February 28, 1997 6.70%

March 1, 1997 -- March 31, 1997 6.70%

April 1, 1997 -- April 30, 1997 6.70%

May 1, 1997 -- May 31, 1997 7.00%

June 1, 1997 -- June 30, 1997 7.00%

July 1, 1997 -- July 31, 1997 6.95%

August 1, 1997 -- August 31, 1997 7.15%

September 1, 1997 -- September 30, 1997 6.95%

October 1, 1997 -- October 31, 1997 6.95%

November 1, 1997 -- November 30, 1997 6.95%

ARC 7652A

ENVIRONMENTAL PROTECTION COMMISSION[567]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 455B.172, the Environmental Protection Commission hereby gives Notice of Intended Action to rescind Chapter 49, "Nonpublic Water Wells" and Chapter 69, "On-Site Wastewater Treatment and Disposal Systems," Iowa Administrative Code, and adopt Chapter 49 and Chapter 69 with the same titles, and to amend Chapter 60, "Scope of Title--Definitions--Forms--Rules of Practice," and Chapter 64, "Wastewater Construction and Operation Permits," Iowa Administrative Code.

Chapter 49, "Nonpublic Water Wells," has not undergone major updating since before it was moved to the Department's jurisdiction from the Department of Public Health in 1983. Starting in late 1995, a technical committee of the Iowa Groundwater Association reviewed the rules and suggested revisions. Meetings with well drillers from the Iowa Water Well Association and sanitarians from the Iowa Environmental Health Association were then held to incorporate industry and other regulatory points of view.

The impetus to review Chapter 69, "On-Site Wastewater Treatment and Disposal Systems," came primarily from state legislators desiring to provide counties more flexibility to deal with difficult sewage disposal situations. Also, significant new technology is being introduced into the state which has created a need for rule changes. An advisory committee of legislators, county supervisors, private contractors and county sanitarians was established to review this rule and recommend revisions. The revised rules are a culmination of this effort and include input by the Iowa Environmental Health Association.

Any interested person may provide written comments on these amendments on or before December 23, 1997. Comments should be submitted to Brent Parker, P.E., R.S., Iowa Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319-0034. Interested persons are also invited to present oral or written comments at public hearings which will be held at the following locations:

December 9, 1997

9 a.m. to 12 noon
IDNR, Wallace State Office Bldg.

4E and 4W Conference Rooms

Des Moines, Iowa 50319


December 10, 1997

1 to 4 p.m.
Atlantic Public Library

507 Poplar

Atlantic, Iowa 50022


December 11, 1997

9 a.m. to 12 noon
Buena Vista University

Siebens Forum, Room 9

4th & Grand Avenue

Storm Lake, Iowa 50588


December 15, 1997

1 to 4 p.m.
Amana Bldg., Iowa Hall, Rooms A and B

Kirkwood Community College

6301 Kirkwood Boulevard SW

Cedar Rapids, Iowa 52406


December 16, 1997

9 a.m. to 12 noon
City Council Chambers

112 South Main Street

Fairfield, Iowa 52556


December 17, 1997

12 noon to 3 p.m.
North Iowa Area Community College (NIACC)

Muse-Norris Conference Room

Mason City, Iowa 50401


Any persons who intend to attend a public hearing and have special requirements such as hearing or mobility impairments should contact the Department of Natural Resources and advise of specific needs.

Copies of relevant amendments may be obtained fromSarah Detmer, Records Center, Iowa Department of Natural Resources, Wallace State Office Building, 900 East Grand Avenue, Des Moines, Iowa 50319-0034.

These amendments may have an impact on small business.

These amendments are intended to implement Iowa Code chapter 455B.172.

The following amendments are proposed.

ITEM 1. Rescind 567--Chapter 49 and adopt the following new chapter in lieu thereof:

CHAPTER 49

NONPUBLIC WATER SUPPLY WELLS

567--49.1(455B) Purpose. The purpose of this chapter is to protect the public health by protecting groundwater supplies from contamination by establishing uniform minimum standards and methods for well construction and reconstruction for nonpublic water supply wells.

567--49.2(455B) Definitions.

"Abandoned well" means a well whose use has been permanently discontinued. A well shall be considered abandoned when its condition is such that continued use is impractical or no longer desired.

"Administrative authority" means the local boards of health.

"Anaerobic lagoon" means an impoundment, the primary function of which is to store and stabilize organic wastes. The impoundment is designed to receive wastes on a regular basis and the design waste loading rates are such that the predominant biological activity in the impoundment will be anaerobic. An anaerobic lagoon does not include:

1. A runoff control basin which collects and stores only precipitation-induced runoff from an open feedlot feeding operation; or

2. A waste slurry storage basin which receives waste discharges from confinement feeding operations and which is designed for complete removal of accumulated wastes from the basin at least semiannually; or

3. Any anaerobic treatment system which includes collection and treatment facilities for all off-gases.

"Annular space" means the open space between the well hole excavation and the well casing.

"Cesspool" means a covered excavation, lined or unlined, into which wastes from toilets or urinals are discharged for disposal. Cesspools are not an approved method of sewage disposal.

"Compensation for well interference" means payment to the owner of a nonregulated well for damages caused by a lowered water level in the well due to withdrawal of water for a permitted use.

"Confinement building" means a building used in conjunction with a confinement feeding operation to house animals.

"Conforming well" means a well that complies with the standards of this chapter, including wells properly plugged according to 567--Chapter 39.

"Deep well" means a well located and constructed in such a manner that there is a continuous layer of low permeability soil or rock at least 5 feet thick located at least 25 feet below the normal ground surface and above the aquifer from which water is to be drawn.

"Earthen manure storage basin" means an earthen cavity, either covered or uncovered, which, on a regular basis, receives waste discharges from a confinement feeding operation if accumulated wastes from the basin are completely removed at least once each year.

"Established grade" means the permanent point of contact of the ground to artificial surface with the casing or curbing of the well.

"Formed manure storage structure" means a structure, either covered or uncovered, used to store manure from a confinement feeding operation, which has walls and a floor constructed of concrete, concrete block, wood, steel, or similar materials. Similar materials may include, but are not limited to, plastic, rubber, fiberglass, or other synthetic materials. Materials used in a formed manure storage structure shall have the structural integrity to withstand expected internal and external load pressures.

"Grout" means a material used to seal the annular space between the casing and the borehole and shall consist of neat cement, concrete, high solids bentonite slurry, or hydrated bentonite chips.

"Health-related problem" means well water that contains any contaminant at a level that exceeds MCLs (maximum contaminant levels), or HALs (health advisory levels) as adopted by the department of natural resources.

"Heavy drilling fluid" means water used for drilling which because of the natural clay content of the borehole or by addition of bentonite grout has a solids density of at least 10 percent by weight or a mud weight of at least 9.25 lb/gal.

"Low permeability material" means a geological unit of unconsolidated material (usually clay or till) or bedrock (usually shale) that is all or partially saturated, and having permeability low enough (10-7 cm/sec) to give water in the aquifer artesian head.

"Nonpublic water supply well" means a well that does not supply a public water supply system.

"Nonregulated well" means a well used to supply water for a nonregulated use (a use of water less than 25,000 gallons per day which is not required to have a water use permit).

"Open feedlot" means an unroofed or partially roofed animal feeding operation in which no crop, vegetation, or forage growth or residue cover is maintained during the period that animals are confined in the operation.

"Permitted use" means a use of water in excess of 25,000 gallons per day which requires a water use permit pursuant to 567--Chapters 50 through 52 and Iowa Code chapter 455B, division III, part 4.

"Pitless adapter" means a device designed for attachment to one or more openings through a well casing. It shall be constructed so as to prevent the entrance of contaminants into the well through such openings, conduct water from the well, protect the water from freezing or extremes of temperature, and provide access to water system parts within the well.

"Pitless unit" means an assembly which extends the upper end of the well casing to above grade. It shall be constructed so as to prevent the entrance of contaminants into the well, conduct water from the well, and protect the water from freezing or extremes of temperature, and shall provide full access to the well and to water system parts within the well. It shall provide a pitless well cap for the top terminal of the well.

"Public water supply" means a system for the provision to the public of piped water for human consumption, if such system has at least 15 service connections or regularly serves an average of at least 25 individuals daily at least 60 days out of the year. The term includes (1) any collection, treatment, storage, and distribution facilities under control of the supplier of water and used primarily in connection with the system; and (2) any collection (including wells) or pretreatment storage facilities not under the control of the supplier which are used primarily in connection with the system.

"Pumps and pumping equipment" means any equipment or materials, including seals, tanks, fittings and controls utilized or intended for use in withdrawing or obtaining water for any use.

"Rehabilitation or reconstruction" means modifying the original construction of a well. Rehabilitation or reconstruction includes, but is not limited to, deepening, installing a liner, installing or replacing a screen, installing a pitless adapter, extending the casing, or hydrofracturing a well. Replacing a screen with one of identical diameter and length, replacing a pitless adapter, or acidizing a well would be considered repair, not rehabilitation or reconstruction.

"Runoff control basin" means an impoundment designed and operated to collect and store runoff from an open feedlot.

"Shallow well" means a well located and constructed in such a manner that there is not a continuous layer of low permeability soil or rock (or equivalent retarding mechanism acceptable to the department) at least 5 feet thick, the top of which is located at least 25 feet below the normal ground surface and above the aquifer from which water is to be drawn.

"Stuffing box" means an approved receptacle in which packing may be compressed to form a watertight or airtight junction between two objects.

"Well" means any excavation that is drilled, cored, driven, dug, bored, augered, jetted, washed or is otherwise constructed for the purpose of exploring for groundwater, monitoring groundwater, utilizing the geothermal properties of the ground, or extracting water from or injecting water into the aquifer. "Well" does not include an open ditch, drain tiles, an excavation made for obtaining or prospecting for oil, natural gas, minerals, or products mined or quarried, lateral geothermal heat exchange systems less than 20 feet deep, nor temporary dewatering wells such as those used during the construction of subsurface facilities only for the duration of the construction.

"Well seal" means a device used to cover or seal a well that establishes or maintains a junction between the casing of the well and the piping, electric conduit or equipment installed, so as to prevent water or other foreign material from entering the well at the uppermost terminal.

1. "Well cap" means a snug-fitting, watertight device used above flood level that excludes dust and vermin and allows for screened venting.

2. "Sanitary seal" means a watertight fitting which uses mechanical compression that is installed on wells that terminate in a well house.

"Well services" means new well construction, well reconstruction, installation of pitless equipment, or well plugging.

567--49.3(455B) Applicability. The provisions contained herein apply to all nonpublic water supply wells constructed for the purpose of domestic, livestock, irrigation, recreation, and commercial or industrial use, that are completed after the effective date of these rules. They shall also apply to existing water wells undergoing rehabilitation or reconstruction.

Ponds and surface water supplies are not covered by these standards. Information regarding use of these sources of water should be sought from the administrative authority prior to the development of the sources.

49.3(1) Nonconforming installations. Certified well contractors shall ensure that the rehabilitation or reconstruction of nonconforming wells adheres to all applicable provisions of this chapter or to comparable construction or installation requirements approved by the administrative authority.

When any construction or reconstruction is done on a nonconforming feature of a well, that feature shall be upgraded and brought into compliance with the material and installation standards contained in this chapter.

49.3(2) Exemptions. This chapter shall not apply to public water supply wells, horizontal heat pump installations, elevator shafts, underground storage tank monitoring wells as covered under 567--Chapter 135, or monitoring wells for solid waste disposal facilities as covered in 567--Chapter 110.

567--49.4(455B) General. The administrative authority shall have the authority to visit well sites during any phase of the work without prior notice. The administrative authority shall by rule require the issuance of permits and the submission of water well logs. No well services shall be initiated until a permit has been issued by the proper authority. Theadministrative authority may also require posting of performance bonds and collection and submission of other data. The issuance of permits is covered in 567--Chapter 38 and shall be coordinated with the water withdrawal permits issued by the Iowa department of natural resources as covered in 567--Chapters 51 and 52. All well services shall be performed by a certified well contractor or the property owner as specified in 567--Chapter 82.

It shall be the responsibility of the certified well contractor to ensure that a well construction permit has been issued prior to initiation of well services. It shall also be the responsibility of the certified well contractor to ensure that all well services are performed in accordance with the provisions of this chapter.

567--49.5(455B) Variances. Variances to these rules may be granted by the administrative authority if sufficient information is provided to substantiate equal protection and the need for such action. Variance requests and reasoning shall be in writing. Variance approvals or rejections shall also be in writing. Where permitting authority has not been delegated to the county, the department will review and grant or deny any variance requests within that jurisdiction.

567--49.6(455B) Location of wells. Wells shall be located with consideration given to the lot size, contour, porosity and absorbency of the soil, local groundwater conditions, flooding, and other factors necessary to implement the rules. The lack of specific distances to other possible sources of contamination, such as refuse disposal sites and high-pressure gas lines, does not minimize their potential hazard. These must be evaluated in each particular situation and a distance arrived at that is based on pertinent facts. The well contractor shall consult the administrative authority for assistance in determining a proper distance in such cases.

49.6(1) Minimum distances. The following minimum lateral distances shall apply for the common sources of contamination listed in the following table.

Table 49.6(1) Minimum lateral distances

Sources of Contamination
Minimum
Lateral
Distance (feet)


Shallow Well
Deep Well
Formed manure storage structure,
confinement building, feedlot solids settling facility, open feedlot
200
100
Public water supply well
400
200

All Wells


Earthen manure storage basin, runoff control basins and anaerobic lagoons
1000

Domestic wastewater lagoon
400

Sanitary landfills
1000

Preparation or storage area for spray materials, commercial fertilizers or chemicals that may result in groundwater contamination
100

Sources of Contamination

Minimum
Lateral
Distance (feet)

Drainage wells
1000

Conforming wells
10

Nonconforming wells
100

Soil absorption field, any sewage treatment
system with an open discharge, pit privy or
septic tank discharge line (not conforming to 567--Chapter 69)
100

Septic tank, concrete vault privy, sewer of
tightly joined tile or equivalent material,
sewer-connected foundation drain, or sewers under pressure
50

Sewer of cast iron with leaded or mechanical joints, sewer of plastic pipe with glued or compression joints, independent clear water drains, cisterns, well pits, or pump-house
floor drains
10

Hydrants
10

Property lines (unless a mutual easement is signed and recorded by both parties)
4

Liquid hydrocarbon storage tanks
100

Ditches, streams, ponds, or lakes
25

49.6(2) Exception to minimum lateral distances. The minimum separation distance between a well and an anaerobic lagoon, earthen manure slurry storage basin, earthen manure storage basin, or runoff control basin shall be 400 feet if the lagoon or basin was permitted by the department after January 1, 1989, or if the applicant demonstrates through percolation testing that the seepage loss through the lagoon or basin does not exceed 1/16 inch per day (0.0625 inch/day). The percolation test shall meet the requirements of ASTM-1587 and 567--subrule 65.15(11).

49.6(3) Relation to buildings. The well shall be located so that no building interferes with reasonable access for cleaning, treatment, repair, testing, inspection and other maintenance. Wells shall not be located in basements.

49.6(4) Easements. No well shall be located on a property not owned by the well owner unless an easement allowing such placement is reviewed and approved by the administrative authority and the easement is legally recorded.

567--49.7(455B) General construction requirements. Wells shall be planned and constructed to adapt to the geologic and groundwater conditions of the proposed well site to ensure reasonable utilization of every natural protection against contamination of the water-bearing formation(s) and the exclusion of possible sources of contamination, to attempt to produce bacterially safe water which is free of health-related problems.

49.7(1) Water used in construction. Water used in the construction process shall be obtained from a potable water source that will not result in contamination of the well. Water used for drilling shall be treated with 3 pints of 5.25 percent sodium hypochlorite solution per 100 gallons of water or 0.25 pounds of 65 percent calcium hypochlorite per 100 gallons of water or other additives to produce an equivalent concentration of chlorine residual (50 ppm).

49.7(2) Wellhead. The upper terminal casing of all wells shall extend at least 12 inches above established grade or pump-house floor, or the 100-year flood level, whichever is higher. A well cap or sanitary seal shall be installed immediately following well completion. A well cap shall be used on an exposed well, a sanitary seal only on a well terminating within a well house. Any openings in the cap or seal, such as for pump wiring or water depth measurement, shall be properly grommeted or sealed except properly screened and oriented vent openings.

The ground surface immediately adjacent to the well casing shall be compacted and graded so that surface water is diverted away from the casing. Well platforms are not recommended other than those used as pump-house floors as indicated in 49.12(2).

49.7(3) Criteria for well interference protection. 567-- Chapter 54 provides an administrative process for owners of nonregulated wells to receive compensation for well interference caused by permitted uses. To be eligible for compensation due to well interference, nonregulated wells constructed after July 1, 1986, must be constructed to allow for some potential well interference.

Allowance for potential well interference is accomplished by constructing a nonregulated well to anticipate a lowering of the static head of the well which may be caused by interference from a nearby permitted use well.

a. The well must be drilled deep enough to allow for setting the pump at least 10 feet or half the normal pumping drawdown, whichever is greater, below the initial recommended setting depth.






b. If the well draws from an unconfined aquifer, the static water level may drop to half the saturated thickness of the aquifer before well interference is considered, if the calculation in "a" above should indicate a shallower depth. Shallow aquifers that are only slightly confined may be classified as unconfined aquifers for this purpose.





The well design also needs to consider drought and reduced well efficiency. (Additional information is contained in 567--Chapter 54.)

A well that is used to withdraw more than 25,000 gallons of water per day requires a water use permit from the Iowa department of natural resources. Upon obtaining such a permit, the well is called a permitted use. If a permitted use exists prior to the construction of a well without a water use permit, no compensation for well interference will be allowed unless a significant change in the permitted use occurs. A physical change to withdrawal facilities may be considered a significant change to a permitted use (e.g., moving the withdrawal location, installing a new well, or installing a higher capacity pump). A person desiring to construct a well not requiring a water use permit should first obtain information concerning nearby permitted use wells. The department of natural resources will provide information on permitted use wells upon request.

49.7(4) Access port for measurement of water levels. Permitted use wells shall be equipped with an access port having a minimum diameter of 3/4 inch. The access port shall be fitted with a threaded cap or plug and be located to allow insertion of a steel tape or electric probe into the well for measurement of water levels. When a spool type of pitless adapter is used which obstructs clear access to the water, a 3/4-inch pipe shall be attached to the spool and brought to the surface below the well cap to allow water level measurements. Wells not requiring a water use permit should be constructed with an access port for water level measurement for possible future well interference concerns.

49.7(5) Interconnection of aquifers. There may be local confining beds that serve an important protective function. Permitted use wells shall use casing and grouting to maintain a hydraulic separation between distinct aquifers separated by confining intervals. Extreme caution should be exercised in the construction of non-permitted use wells if allowing the well to connect aquifers across confining intervals, particularly in areas where that would open the aquifer to surficial contamination, i.e., in areas where the upper rock unit is unconfined or contains less than 40 feet of unconsolidated materials. The administrative authority shall be consulted for possible local regulations when interconnection of aquifers across confining intervals is anticipated.

567--49.8(455B) Types of well construction.

49.8(1) Drilled wells.

a. Drilled wells in unconsolidated materials.

(1) Depth. In no case shall less than 20 feet of permanent casing be installed in wells drilled in unconsolidated materials. If the alluvial aquifer where the water is to be drawn from is covered by less than 40 feet of low permeability materials, the well screen shall be set at the bottom of the water-bearing aquifer or at least 60 feet from the surface. (Deeper depths may be required if nitrate contamination is excessive.) If more than 40 feet of low permeability materials are present above the aquifer, the casing shall extend down at least to the top of the aquifer.

(2) Grouting. Grout shall be placed to a minimum depth of 40 feet or along the full length of the casing where less than 40 feet of casing is set. Grouting the full length of the casing below 40 feet may be necessary to isolate any undesirable contaminated water lenses or aquifers. If a layer of low permeability material at least 5 feet thick is encountered less than 40 feet from the surface, the grout may be terminated at least 5 feet below the top of this low permeability material, but in no case less than 20 feet from the ground surface. Grout must be placed in accordance with 49.9(3), except when driving casing. When driving casing a #8 mesh bentonite or bentonite grout must be maintained around the outside of the casing. The bottom of driven casing must be equipped with a drive shoe.

(3) Annular space. The diameter of the borehole shall be at least 3 inches greater than the outside diameter of the well casing to the minimum grouting depth. When steel well casing pipe is installed using percussion methods, the annular space shall be at least 5 inches greater than the outside diameter of the well casing to a minimum depth of 25 feet.

(4) If the depth of casing is greater than 40 feet, the annular space below 40 feet may be filled with heavy drilling fluid taken from the borehole as long as the top 40 feet is properly grouted. In this case, the annular space below 40 feet shall be kept as small as possible to avoid settling.

b. Drilled wells in consolidated material.

(1) Minimum casing depth. Casing shall extend to a depth of at least 40 feet and be seated in firm rock. When the uppermost bedrock consists of creviced limestone or dolomite that does not produce water, the casing shall extend through the creviced formation, be seated in firm rock and be properly grouted.

(2) Grouting. For bedrock wells, full-length casing grouting is strongly recommended. Grout shall be placed to a minimum depth of 40 feet in accordance with 49.9(3),except when driving casing while percussion or casing-hammer/rotary drilling. When driving casing, #8 mesh bentonite or bentonite grout must be maintained around the outside of the casing. The bottom of driven casing must be equipped with a drive shoe. If a layer of low permeability material at least 5 feet thick is encountered less than 40 feet from the surface, the grout may be terminated at least 5 feet below the top of this low permeability material, but in no case less than 20 feet from the ground surface. Where local conditions warrant, the administrative authority may require more extensive grouting to protect the aquifer(s) that are penetrated.

(3) Annular space. The borehole shall be at least 3 inches greater than the outside diameter of the well casing for the upper 40 feet or the minimum grouting depth. When steel casing pipe is installed using percussion, or casing-hammer/rotary methods, the annular space shall be at least 5 inches greater than the outside diameter of the well casing to a minimum depth of 25 feet. When bedrock wells are full-length pressure-grouted through the casing, the 3-inch larger borehole is also only required for the top 25 feet.

(4) If the depth of casing is greater than 40 feet, the annular space below 40 feet may be filled with heavy drilling fluid taken from the borehole as long as the top 40 feet is properly grouted. In this case, the annular space below 40 feet shall be kept as small as possible to avoid settling.

(5) In fractured rock, where circulation of slurry cannot be maintained, grouting may be done with bentonite chips. The chips shall be hydrated with one gallon of water per bag of bentonite.

49.8(2) Bored and augered wells in unconsolidated materials. For bored or augered wells with concrete or clay tile casings at least 18 inches in diameter, buried-slab construction is required.

a. Casing. The concrete or vitrified clay pipe casing shall be terminated not less than 10 feet below ground surface and extend to a minimum of 20 feet. The casing shall be fitted with a reinforced concrete or steel plate into which a watertight steel or thermoplastic casing is firmly imbedded in or connected to a pipe cast or welded into the plate. This casing shall be at least 5 inches in diameter and shall extend from the plate to not less than 12 inches above established grade or the 100-year flood level, whichever is higher. A pitless adaptor shall be installed below frost depth on the newly installed plastic or steel casing.

b. Backfilling annular space. A 12-inch grout seal shall be poured over and around the plate. The annular space between the steel or thermoplastic casing and the borehole shall be backfilled with clean compacted soil free of debris or large organic material. During the backfilling process, the earth shall be thoroughly tamped to minimize settling. Grading around the well shall then be accomplished in accordance with subrule 49.7(2).

49.8(3) Driven and direct push wells. Sandpoint wells are typically constructed in sandy areas with a high water table. Groundwater in these areas is often susceptible to contamination. This type of construction is not recommended for potable water supply. Sandpoint wells shall meet the requirements of this chapter except for casing depth and grouting requirements.

49.8(4) Flowing artesian wells. Drilling operations shall extend into but not through the formation confining the water. The casing shall then be installed and the annular space full-length pressure-grouted and allowed to set. After setting, the drill hole shall then be extended into the confined water-bearing formation. Flow control from the well shall be provided by valved pipe connections or a receiving tank set at an altitude corresponding to that of the artesian head. Under no circumstances shall the water flow uncontrolled to waste. A direct connection between the discharge pipe and a receiving tank, sewer, or other source of contamination is prohibited.

567--49.9(455B) Material standards. All materials utilized in well water construction shall conform to the standards of the American Water Works Association (AWWA), the American Petroleum Institute (API), the American Society for Testing and Materials (ASTM), and the National Ground Water Association (NGWA) except as modified by these standards.

49.9(1) Water well casing.

a. Steel well casing and couplings.

(1) Steel well casing pipe shall have the dimensions and weights specified in Table 49.9(1)"a"(4). Well casing pipe shall be new steel pipe meeting one of the following standards:

1. ASTM A 53-96,

2. ASTM A 106-95,

3. ASTM A 589-95a - Type I, II or III,

4. API 5CT (5th Edition, 4/1/95),

5. API 5D (3rd Edition, 8/1/92), or

6. API 5L (41st Edition, 4/1/95).

(Copies of these standards are available for inspection at the Des Moines office of the department of natural resources rec-ords center or may be obtained for personal use from the American Society for Testing and Materials, 100 Barr Harbor Drive, West Conshohocken, Pennsylvania 19428-2959, or the American Petroleum Institute, 1220 L Street NW, Washington, DC 20005.)

(2) Each length of casing shall be legibly marked in accordance with API or ASTM marking specifications showing the manufacturer's or processor's name or trademark, size in inches, weight in pounds per foot, whether seamless or welded (type of weld) and the API or ASTM specification or trade monogram.

(3) All casing pipe joints shall be watertight welded construction or threaded couplings.

(4) Minimum casing pipe and coupling weights and dimensions are as follows:

Table 49.9(1)"a"(4)

Minimum casing pipe and coupling weights and dimensions



Weight (lbs/ft)



Pipe




Couplings

Size
(inches)

Threads & Coupling
Plain End


Thickness (inches)

External
Diameter (inches)
Internal
Diameter (inches)
Threads per inch
External
Diameter (inches)
Length (inches)
1

1.70
1.68


.133

1.315
1.049
11-1/2
1.576
2-5/8
1-1/4

2.30
2.27


.140

1.660
1.380
11-1/2
1.900
2-3/4
1-1/2

2.75
2.72


.145

1.900
1.610
11-1/2
2.200
2-3/4
2

3.75
3.65


.154

2.375
2.067
11-1/2
2.750
2-7/8
2-1/2

5.90
5.79


.203

2.875
2.469
8
3.250
3-15/16
3

7.70
7.58


.216

3.500
3.068
8
4.000
4-1/16
3-1/2

9.25
9.11


.226

4.000
3.548
8
4.625
4-3/16
4

11.00
10.79


.237

4.500
4.026
8
5.200
4-5/16
5

15.00
14.62


.258

5.563
5.047
8
6.296
4-1/2
6

19.46
18.97


.280

6.625
6.065
8
7.390
4-11/16
6-5/8 OD

20.00
19.49


.288

6.625
6.049
8
7.390
4-11/16
7 OD

23.00
22.63


.317

7.000
6.366
8 R
7.657
4-11/16
8

29.35
28.55


.322

8.625
8.071
8
9.625
5-1/16
10

41.85
40.48


.365

10.750
10.136
8
11.750
5-9/16
12

51.15
49.56


.375

12.750
12.090
8
14.000
5-15/16
14 OD

57.00
54.57


.375

14.000
13.250
8
15.000
6-3/8
16 OD

65.30
62.58


.375

16.000
15.250
8
17.000
6-3/4
18 OD

73.00
70.59


.375

18.000
17.250
8
19.000
7-1/8
20 OD

81.00
78.60


.375

20.000
19.250
8
21.000
7-5/8
R = Round Threads

b. Thermoplastic casing and couplings.

(1) Materials. Thermoplastic well casing pipe andcouplings shall be new polyvinyl chloride (PVC) oracrylonitrile-butadiene-styrene (ABS) material produced to and meeting the ASTM F 480 standard and shall have a standard dimension ratio (SDR) of 21, 17, or 13.5, a dimension ratio (DR) of 18 or 14, or a schedule 40 or 80 rating depending upon the specification. Styrene-rubber thermoplastic well casing pipe, including ASTM F 480, may not be used.

(2) Potable water standards. The thermoplastic well casing pipe, pipe couplings, cement, primer and other components used shall be approved for well casing pipe in potable water supplies by the NSF Standard Number 61 or the health effects portion of Standard Number 14 as they relate to well casing pipe, or an approved equivalent organization.

(3) Markings. Each length of casing shall be legibly marked showing the manufacturer's or processor's name or trademark, size in inches, and the ASTM F 480 specification or trade monogram.

(4) Casing joints. The thermoplastic pipe shall beassembled with either flush-threaded joints, integral-bell,solvent-cemented joints, one-piece solvent-cemented couplings or nonmetallic restrained joint system in a manner according to the specifications in ASTM F 480.

(5) Depths for plastic casing. The following table provides specifications for maximum depths (in feet of water head) to which PVC well casing of different strengths can be installed.

Table 49.9(1)"b"(5)

PVC WELL CASING

Maximum Depths of Installation(1)

ASTM F 480 or ASTM 2241



C-900

ASTM 1785


SDR
SDR
SDR
DR
DR
SCH.
SCH.
SIZE
21
17
13.5
18
14
40
80
4"
257'
496'
1,024'
--
--
353'
1,055'
41/2"
257'
496'
1,024'
--
--
--
--
5"
257'
496'
1,024'
--
--
236'
758'
6"
257'
496'
1,024'
490'
956'
177'
678'
8"
257'
496'
1,024'
490'
956'
121'
471'
10"
257'
496'
1,024'
490'
956'
90'
404'
12"
257'
496'
1,024'
490'
956'
74'
376'
16"
257'
496'
1,024'
490'
956'
70'
350'
(1) Determined by formulae in ASTM F 480 with Poisson's ratio of .38

(6) When cement grout is used with thermoplastic casing, the manufacturer's specifications for use shall be followed except in the top 40 feet.

(7) Thermoplastic pipe extending above ground shall be protected from ultraviolet light exposure.

(8) Under no circumstances shall thermoplastic water well casing be driven.

49.9(2) Grouting guides. Casing that is to be grouted shall have a minimum of two sets of centering guides attached to the casing so as to permit the unobstructed flow and deposition of grout.

49.9(3) Grouting. Materials and procedures for grouting shall be as follows:

a. Concrete grout. The mixture, used with bored and augered wells, shall consist of cement, sand aggregate and water, in the proportion of one bag cement (94 lbs.) and an equal volume of aggregate to not more than six gallons of clean water. Concrete grout shall not be used below the water table. Admixtures to reduce permeability or control setting time must meet ASTM Standard C 494-92. Concrete grout may be used with permission of the administrative authority where large void spaces need to be filled.

b. Neat cement grout. The mixture shall consist of one bag of cement (94 lbs.) to not more than six gallons of clean water. Admixtures to reduce permeability or control setting time must meet ASTM Standard C 494-92.

c. Bentonite grout. A mixture of water and commercial sodium-bentonite clay manufactured for the purpose of water well grouting. Mixing shall be per manufacturer's specifications. Sodium-bentonite products that contain low solids, are designed for drilling purposes, or contain organic polymers shall not be used.

d. Exclusion. Drilling fluids and cuttings may not be used as grouting material for the minimum grouting depths.

e. Application. Grouting shall be performed by pumping the mixture into the annular space from the bottom upward through the casing or through a tremie pipe until the annular space is filled. Grouting shall be done in one continuous operation, if possible. The bottom of the tremie pipe must remain submerged in grout while grouting.

f. Exceptions. The exceptions to this method of ap-plication are the use of buried-slab, percussion, or casing-hammer/rotary methods to construct a well. The proper grouting methods for these types of wells are specified in 49.8(1) and 49.8(2). Another exception is where dry bentonite is required because circulation cannot be maintained as described in 49.8(1)"b"(5).

49.9(4) Pitless adapters and pitless units.

a. Pitless adapters and pitless units conforming to Pitless Adapter Standard-97 as promulgated by the Water Systems Council are considered as complying with these regulations. A copy of this standard is available for inspection at the Des Moines office of the department of natural resources records center or may be obtained for personal use from the Pitless Adapter Division, Water Systems Council, 800 Roosevelt Road, Bldg. C, Suite 20, Glen Ellyn, Illinois 60137.

b. A pitless subsurface pipe connection to a well casing pipe shall be made with a weld-on, clamp-on, or bolt-on pitless adapter or weld-on or threaded pitless unit. Above-ground discharge pitless adapters are prohibited.

c. Grouting pitless adapters and pitless units. After connecting a pitless adapter or unit, the area surrounding the unit must be uniformly filled with dry bentonite.

d. If the pitless adapter is gasketed, the opening in the casing shall be sawed, to the diameter recommended by the manufacturer, with a hole saw and not cut with a torch. The pitless adapter used shall have the correct curvature to fit the diameter of the casing.

567--49.10(455B) Rehabilitation or reconstruction. All well rehabilitation or reconstruction must meet therequirements of this chapter. If the well feature needingrehabilitation/reconstruction cannot be brought into compliance with these rules, the well must be properly plugged.

49.10(1) Installing a liner. If the rehabilitation/reconstruction will involve the placement of a liner, thecertified well contractor must then determine whether the proposed rehabilitation/reconstruction is to be done to correct a health-related problem. The work to be performed must then be done in accordance with paragraph "a" or "b" below.

a. Standards for installation of a liner to correct a health-related problem.

(1) The liner shall have a minimum of two sets of centering guides to allow the proper placement of grout. In no case shall the liner be driven into place.

(2) The liner shall extend to the ground surface or top of the pitless adapter.

(3) The annular space between the old casing and the liner shall be pressure-grouted the entire length in place using an approved grout.

b. Standards for installation of a liner to correct a problem that is not health-related.

(1) The liner shall extend at least ten feet above the static water level or, if a caving zone is present, shall extend above this region.

(2) The liner may be pressure grouted in place if there is a sufficient annular space for proper application of the grout.

c. Liner material standards. Liners must meet well casing standards as defined in 49.8(1). Liners may be composed of either steel or thermoplastic with a minimum inside diameter of 4 inches. Steel liners must be new and have a minimum wall thickness of .188 inches. Plastic liners must have a standard dimension ratio of 21 or less or a schedule rating of SCH 40 or SCH 80.

49.10(2) Reserved.

567--49.11(455B) Disposal of drilling mud. Drilling fluid and mud remaining after construction of a well shall not be disposed of in a steam or storm sewer nor shall these materials be discharged into a sanitary sewer without permission of the owner and operator of the wastewater treatment facility.

567--49.12(455B) Water distribution systems.

49.12(1) Pump-house appurtenances. When pump houses are utilized, they shall be constructed above established grade permitting access to the well and pump for maintenance and repair. The pump room shall be provided with an independent floor drain that discharges to ground surface. The outside opening of this drain line shall be fitted with a brass, bronze or copper 16-mesh screen to exclude the entrance of pests.

49.12(2) Pump-house floors. The top of the well casing shall terminate at least 12 inches above the pump-house floor. The pump-house floor shall be constructed of concrete that is not less than 4 inches in thickness and is sloped away from the casing. A watertight seal to provide resiliency shall be provided between the casing and the pump-house floor.

49.12(3) Frost pits. Wells are not permitted to be located within frost pits. Frost pits that do not contain wells within are permitted for the purpose of housing pressure tanks and valves,for example, provided they are not located closer than ten feet from any well. Frost pits shall be constructed so as to be weatherproof and vermin-proof and an independent floor drain or a sump pump shall be provided.

49.12(4) Pumps and pumping equipment.

a. General pump installation requirements. The installation of pumps shall be planned and carried out so the pump will be:

(1) Installed so that it and its surroundings are in a sanitary condition;

(2) Properly sized so as to provide the volume of water necessary, where obtainable, for an adequate water supply;

(3) Designed to meet the well characteristics and not exceed the yield of the well except when the available aquifer is low producing;

(4) Installed for operation without priming or breaking suction;

(5) Installed in such manner as to provide adequate protection against contamination of the water supply from any surface or subsurface sources;

(6) Installed in a manner so that it is accessible for maintenance, repair, and removal.

b. Lubrication. Pump motor lubricant or coolant oil shall be USDA- or FDA-approved food contact grade formulations.

c. Well/pump discharge. Every pump shall be installed with an aboveground discharge, an approved subsurface pitless adapter or pitless unit, or an approved subsurface well casing pipe connection.

d. Other power pumps. Other power pumps located over the well shall be mechanically joined to the casing or on a pump foundation or stand in such a manner as to effectively seal the top of the well. A sanitary seal shall be used where the pump is not located over the well, and the pump delivery or suction pipe emerges from the top. If these units are located in a basement, all suction lines shall be elevated at least 12 inches above the floor and shall be encased in a protective galvanized steel pipe.

e. Hand pumps or similar devices. A hand pump, hand pump head, stand, or similar device must have a closed and screened spout, directed downward. The pump must have a concrete slab at least 4 inches thick extending horizontally at least 1 foot in every direction from the well casing and sloped to divert water away from the casing. A watertight seal must be provided between the casing and the slab. A reciprocating pump rod must operate through a stuffing box.

f. Well disinfection after pump installation or repair. Wells must be properly disinfected by the pump installer as described in rule 49.13(455B) after the installation or repair of pumps.

g. Interconnections and cross connections. No connection between a well or boring and another well, boring, water supply system, or contamination source is allowed unless the connection is:

(1) Protected by an air gap;

(2) Protected by a backflow prevention device; or

(3) Between wells or borings that meet the construction standards of this chapter, are used for the same purpose, and have equivalent quality water supply.

49.12(5) Hydropneumatic (pressure) tanks. Pressure tanks should be sized by pump capacity and expected usage. They must be installed in accordance with manufacturers' directions and shall maintain a pressure of at least 15 pounds at highest point usage under normal demand.

49.12(6) Filters and water treatment equipment. Filters and water treatment equipment shall be installed and operated in accordance with manufacturers' directions.

567--49.13(455B) Well disinfection. All new, repaired or rehabilitated wells shall be pumped to waste until the water is free of drilling mud, drill cuttings and sand, and the water is reasonably clear.

Wells shall be disinfected by the contractor following completion of construction and whenever the well seal or cap is removed and work is done within the casing. A chlorine solution such as a sodium or calcium hypochlorite shall be used. Chlorine compounds having special additives shall not be used.

49.13(1) The disinfectant shall be dispersed throughout the entire water column in the well. The disinfectant shall also be brought into contact with the inside of the well casing pipe above the static water level.

49.13(2) The disinfectant shall remain in the well for at least two hours except for emergency situations, when water is needed without delay. A contact time of at least 30 minutes shall be provided for emergency situations.

49.13(3) A chlorine solution with a minimum of 200 mg/l of chlorine shall be used to disinfect wells and well drilling equipment.

49.13(4) The disinfectant shall be prepared according to the following table:

Table 49.13(4)

Amount of pelleted HTH required for every 25 feet of water in well

Well casing diameter (in inches)

4"
6"
8"
12"
18"
24"
30"
36"
Amount of disinfectant (in ounces)
1 oz.
2 oz.
3 oz.
6 oz.
13 oz.
23oz.
36 oz.
52 oz.

49.13(5) The disinfectant shall be introduced into the well in a solution of disinfectant and water. The solution shall contain not more than eight ounces of disinfectant per five gallons of water. In no case shall pressed pellets of disinfectant be introduced directly into the well without first being dissolved.

567--49.14(455B) Water sampling and analysis.

49.14(1) In all pressure water systems, provision shall be made for collection of water samples directly from the well by installation of a sampling faucet before the pressure tank, and prior to encountering any water treatment equipment. The sampling faucet shall be installed at least 12 inches above the floor, have a downturned spout and be in an accessible location. All sample faucets shall be metal and shall have a diameter of at least one-half inch. The sample faucet shall have a smooth end.

49.14(2) The owner of a new, repaired, or rehabilitated well shall be responsible for submitting a water sample to a certified laboratory for coliform bacteria and nitrate analysis. The water sample shall be collected at least 10 days and not more than 30 days after a well is put into service following the construction, repair, or rehabilitation. The analysis results shall be submitted to the administrative authority.

49.14(3) If the water sample analysis detects presence of bacteria, the disinfection procedure described in rule 49.13(455B) shall be repeated.

567--49.15(455B) Abandonment of wells. Abandoned wells are a contamination hazard to the water-bearing formation as well as a physical hazard for people.

49.15(1) Plugging rules. Abandoned wells shall be properly plugged as required in 567--Chapter 39.

49.15(2) Waste disposal prohibition. Under no circumstances shall abandoned wells be used for the disposal of debris, solid waste, septic tank sludge or effluents, or for any other type of unauthorized disposal of waste materials, or as a receptacle for field tile drainage.

567--49.16(455B) Closed circuit vertical heat exchangers. These provisions apply to closed circuit vertical heat exchanger construction.

49.16(1) Piping used must be 160 psi pressure-rated high-density polyethylene or polybutylene.

49.16(2) Connection to piping must use socket fusion or butt fusion joining methods.

49.16(3) Piping must be pressure-tested with air or potable water for 15 minutes at a pressure of 1.5 times the system operating pressure after installation in the borehole.

49.16(4) The annular space between the vertical heat exchanger piping and the borehole must be grouted as required in 49.9(3) using an approved grouting method and material. Grout shall be placed at least in the top 40 feet. Any confining layers between aquifers shall be replaced with grout. Grouting must be performed within 24 hours of completion of the borehole.

49.16(5) Only food-grade or USP-grade propylene glycol or calcium chloride may be used as heat transfer fluid. Any other materials or additives must be NSF-approved for drinking water applications. A permanent sign must be attached to the heat pump specifying that only approved heat transfer fluids must be used.

49.16(6) A flow meter must be installed.

49.16(7) Water make-up lines to the vertical heat exchanger must be protected with a backflow prevention device.

ITEM 2. Amend subrule 60.3(2) by adding the following new paragraph "j":

j. Notice of intent for coverage under NPDES General Permit No. 4 "Discharges from On-Site Wastewater Treatment and Disposal Systems."

ITEM 3. Amend 567--64.15(455B) by adding the following new subrule:

64.15(3) On-site wastewater discharges from systems where soil discharge is not possible.

ITEM 4. Rescind 567--Chapter 69 and adopt the following new chapter in lieu thereof:

CHAPTER 69

ON-SITE WASTEWATER TREATMENT AND DISPOSAL SYSTEMS

567--69.1(455B) General.

69.1(1) Applications. These rules are applicable only to on-site wastewater treatment and disposal systems.

69.1(2) Definitions.

"Administrative authority" is the local board of health as authorized by Iowa Code section 455B.172 and 567--Chapter 137.

"Approved" means accepted or acceptable under an applicable specification stated or cited in these rules, or accepted as suitable for the proposed use by the administrative authority.

"Area drain" means a drain installed to collect surface or storm water from an open area of a building or property.

"Building drain" is that part of the lowest horizontal piping of a house drainage system which receives the discharge from soil, waste, and other drainage pipes inside the walls of any building and conveys the same to the building sewer.

"Building sewer" is that part of the horizontal piping from the building wall to its connection with the main sewer or the primary treatment portion of an on-site wastewater treatment and disposal system conveying the drainage of one building site.

"Chamber system" is a buried structure, typically with a domed or arched top, providing at least a six-inch height of sidewall soil exposure, creating a covered open space above a buried soil infiltrative surface.

"Distribution box" is a structure designed to accomplish the equal distribution of wastewater to two or more soil absorption trenches.

"Drainage ditch" is any watercourse meeting the classification of a "general use segment" under rule 567-- 61.3(455B) which includes intermittent watercourses and those watercourses which typically flow only for short periods of time following precipitation in the immediate locality and whose channels are normally above the water table.

"Drip irrigation" is a form of subsurface soil absorption using shallow pressure distribution with low pressure drip emitters.

"Drop box" is a structure to divert wastewater flow into a soil absorption trench until the trench is filled to a set level, then allow any additional waste, which is not absorbed by that trench, to flow to the next drop box or soil absorption trench.

"Dwelling" means any house or place used or intended to be used by humans as a place of residence.

"Fill soil" means clean soil, free of debris or large organic material, which has been mechanically moved onto a site and has been in place for less than one year.

"Foundation drain" means that portion of a building drainage system provided to drain groundwater from the outside of the foundation or over or under the basement floor not including any wastewater and not connected to the building drain.

"Free access filter (open filter)" means an intermittent sand filter constructed within the natural soil or above the ground surface with access to the distributor pipes and top of the filter media for maintenance and media replacement.

"Gravel" means stone screened from river sand or quarried. Concrete aggregate designated as Class II by the department of transportation is acceptable.

"Gravelless pipe system" means an absorption system comprised of large diameter (8 and 10 inches) corrugated plastic pipe, perforated with holes on a 120-degree arc centered on the bottom, wrapped in a sheath of geotextile filter wrap and installed level in a trench without gravel bedding or cover.

"Individual mechanical aerobic wastewater treatment system" means an individual wastewater treatment and disposal system employing bacterial action which is maintained by the utilization of air or oxygen and includes the aeration plant and equipment and the method of final effluent disposal.

"Intermittent sand filters" are beds of granular materials 24 to 36 inches deep underlain by graded gravel and collecting tile. Wastewater is applied intermittently to the surface of the bed through distribution pipes or troughs and the bed is underdrained to collect and discharge the final effluent. Uniform distribution is normally obtained by dosing so as to flood the entire surface of the bed. Filters may be designed to provide free access (open filters), or may be buried in the ground (buried filters or subsurface sand filters).

"Lake" means a natural or man-made impoundment of water with more than one acre of water surface area at the high water level.

"Limiting layer" means bedrock, seasonally high groundwater level, or any layer of soil with a stabilized percolation rate exceeding 60 minutes for the water to fall one inch.

"Mound system" is an alternative above-ground system used to absorb effluents from septic tanks in cases where either seasonally high water table, high bedrock conditions, slowly permeable soils or limited land areas prevent conventional subsurface absorption systems.

"On-site wastewater treatment and disposal system" means all equipment and devices necessary for proper conduction, collection, storage, treatment, and disposal of wastewater from four or fewer dwelling units or other facility serving the equivalent of 15 persons (1,500 gpd) or less. This includes domestic waste whether residential or nonresidential but does not include industrial waste of any flow rate. Included within the scope of this definition are building sewers, septic tanks, subsurface absorption systems, mound systems, sand filters, constructed wetlands and individualmechanical/aerobic wastewater treatment systems.

"Percolation test" is a falling water level procedure used to determine the ability of soils to absorb primary treated wastewater. (See Appendix B.)

"Pond" means a man-made impoundment of water with a water surface area of one acre or less at the high water level.

"Primary treatment" is a unit or system to separate the floating and settleable solids from the wastewater before the partially treated effluent is discharged for secondary treatment.

"Professional soil analysis" is an alternative to the percolation test which depends upon a knowledgeable person evaluating the soil factors, such as color, texture, and structure, in order to determine an equivalent percolation rate.

"Roof drain" is a drain installed to receive water collecting on the surface of a roof and discharging into an area or storm drain system.

"Secondary treatment system" is a system which provides biological treatment of the effluent from septic tanks or other primary treatment units to meet minimum effluent standards as required in these rules and NPDES General Permit No. 4. Examples include soil absorption systems, sand filters,mechanical/aerobic systems, or other systems providing equivalent treatment.

"Septage" means the liquid contents (including sludge and scum) of a septic tank normally pumped out periodically and transported to another site for disposal.

"Septic tank" is a watertight structure into which wastewater is discharged for solids separation and digestion, referred to as part of the closed portion of the treatment system.

"Sewage wastewater" is the water-carried waste derived from ordinary living processes.

"Sludge" means the digested or partially digested solid material accumulated in a wastewater treatment facility.

"Stream" means any watercourse listed as being a "designated use segment" in rule 567--61.3(455B) which includes any watercourse which maintains flow throughout the year, or contains sufficient pooled areas during intermittent flow periods to maintain a viable aquatic community of significance.

"Subsurface absorption system" is a system of perforated conduits connected to a distribution system, forming a series of subsurface, water-carrying channels into which the primary treated effluent is discharged for direct absorption into the soil (referred to as part of the open portion of the treatment system).

"Subsurface sand filter" is a system in which the effluent from the primary treatment unit is discharged into perforated pipes, filtered through a layer of sand, and collected by lower perforated pipes for discharge to the surface or to a subsurface absorption system. A subsurface sand filter is an intermittent sand filter which is placed within the ground and provided with a natural topsoil cover over the crown of the distribution pipes.

"Wastewater management district" means an entity organized in accordance with permitting legislation to perform various specific functions such as planning, financing, construction, supervision, repair, maintenance, operation and management of on-site wastewater treatment and disposal systems within a designated area.

69.1(3) General regulations.

a. Connections to approved sewer system.

(1) No on-site wastewater treatment and disposal system shall be installed, repaired, or rehabilitated where the nearest connection to a public sanitary sewer is within 300 feet of the facility served and the public sewer authority is willing to accept the waste or where a local ordinance requires connection to a public system. Criteria, other than distance, may influence the accessibility of the public sewer. Exceptions must be approved in writing by the administrative authority.

(2) When a public sanitary sewer becomes available within 300 feet, any building then served by an on-site wastewater treatment and disposal system shall connect to said public sanitary sewer within a time frame or under conditions set by the administrative authority.

(3) When a public sanitary sewer is not available within 300 feet or will not accept the waste, every building wherein persons reside, congregate or are employed shall be provided with an approved on-site wastewater treatment and disposal system.

(4) If a building is to be connected to an existing on-site wastewater treatment and disposal system, that existing system shall meet the standards of these rules and be appropriately sized.

b. Discharge restrictions. It is prohibited to discharge any wastewater from on-site wastewater treatment and disposal systems (except under an NPDES permit) to any ditch, stream, pond, lake, natural or artificial waterway, county drain tile, surface water drain tile, land drain tile or to the surface of the ground. Under no conditions shall effluent from on-site wastewater treatment and disposal systems be discharged to any abandoned well, agricultural drainage well or sinkhole. Existing discharges to any of the above-listed locations or structures shall be eliminated by constructing a system which is in compliance with the requirements of these rules.

c. Construction or alteration. All on-site wastewater treatment and disposal systems constructed or altered after the effective date of these rules shall comply with these requirements. Alteration includes any changes that effect the treatment or disposal of the waste. Repair of existing components that does not change the treatment or disposal would be exempt. However, the discharge restrictions in "b" above would always apply.

69.1(4) Permit required. No on-site wastewater treatment and disposal system shall be installed or altered as described in 69.1(3)"c," until an application for a permit has been submitted and a permit has been issued by the administrative authority. The installation shall be in accordance with these rules.

69.1(5) Site analysis.

a. Site evaluation. A site evaluation shall be conducted prior to issuance of a construction permit. Consideration shall be given, but not be limited to, the impact of the following: topography; drainageways; terraces; floodplain; percent of land slope; location of property lines; location of easements; buried utilities; existing and proposed tile lines; existing, proposed and abandoned water wells; amount of available area for the installation of the system; evidence of unstable ground; alteration (cutting, filling, compacting) of existing soil profile; and soil factors determined from a soil analysis, percolation tests and soil survey maps if available.

b. Soil survey reports. During a site analysis and investigation, maximum use should be made of soil survey reports which are available from USDA Natural Resources Conservation Service. A general identification of the percolation potential can be made from soil map units in Iowa. Verification of the soil permeability on the specific site must be performed.

69.1(6) Minimum distances. All on-site wastewater treatment and disposal systems shall be located in accordance with the minimum distances shown in Table I.

TABLE I

Minimum Distance in Feet From
Closed
Portion of Treatment
System(1)
Open
Portion of Treatment System(2)
Private water supply well
50
100
Public water supply well
200
200
Groundwater heat pump borehole
50
100
Lake or reservoir
50
100
Stream or pond
25
25
Edge of drainage ditch
10
10
Dwelling or other structure
10
10
Property lines (unless a mutual easement is signed and recorded)
10
10
Other type subsurface
treatment system
5
10
Water lines continually
under pressure
10
10
Suction water lines
50
100
Foundation drains or
subsurface tiles
10
10
(1)Includes septic tanks, mechanical aeration tanks and impervious vault toilets.

(2)Includes subsurface absorption systems, mound systems, intermittent sand filters, constructed wetlands or lagoons.

567--69.2(455B) Requirements when discharged into surface water. All discharges from on-site wastewater treatment and disposal systems which are discharged into any surface water shall be treated in a manner that will conform with the requirements of NPDES General Permit No. 4 issued by the department of natural resources, as referenced in 567--Chapter 64. Prior to the installation of any system discharging to waters of the state, a notice of intent to be covered by NPDES General Permit No. 4 shall be submitted to the department. Systems covered by this permit must meet all applicable requirements listed in the NPDES permit.

567--69.3(455B) Requirements when discharged into the soil. No septage or wastewater shall be discharged into the soil except in compliance with the requirements contained in these rules.

567--69.4(455B) Building sewers.

69.4(1) Location and construction. The types of construction and distances as shown in Table II shall be maintained for the protection of water supplies. The distances shall be considered minimum and increased where possible to provide better protection.

TABLE II

Sewer Construction
Distance from Well Water
Supply





Private
Public
1. Schedule 40 plastic pipe (or SDR 26 or stronger) with approved type joints or cast-iron soil pipe (extra heavy or centrifugally cast) with joints of preformed gaskets.
10
25
2. Sewer pipe installed to remain watertight and root-proof.
50
75

Under no circumstances shall a well suction line pass under a building sewer line.

69.4(2) Requirements for building sewers.

a. Type. Building sewers used to conduct wastewater from a building to the primary treatment unit of an on-site wastewater treatment and disposal system shall be constructed of Schedule 40 plastic pipe (or SDR 26 or stronger) with solvent-weld or bell-and-gasket type joints, or cast iron with integral bell-and-gasket type joints.

b. Size. Such building sewers shall not be less than 4 inches in diameter.

c. Grade. Such building sewers shall be laid to the following minimum grades:

4-inch sewer 12 inches per 100 feet

6-inch sewer 8 inches per 100 feet

69.4(3) Cleanouts.

a. Spacing. A cleanout shall be provided where the building sewer leaves the house and at least every 100 feet allowing rodding downstream.

b. Change of direction. An accessible cleanout shall be provided at each change in direction or grade, if the change exceeds 45 degrees.

567--69.5(455B) Primary treatment--septic tanks.

69.5(1) General requirements.

a. Septic tank required. Every on-site wastewater treatment and disposal system, except mechanical-aerobic systems, shall have as a primary treatment unit a septic tank as described in this rule. All wastewater from the facility serviced shall discharge into the septic tank (except as noted in "d" below).

b. Easements. No septic tank shall be located upon property under ownership different from the ownership of that property or lot upon which the wastewater originates unless easements to that effect are legally recorded and approved by the proper administrative authority.

c. Effluent discharge requirements. All septic tank effluent shall discharge into a secondary treatment system in compliance with this rule or other system approved by the administrative authority according to rule 69.18(455B).

d. Prohibited wastes. Septic tanks shall not be used for the disposal of chemical wastes or grease in quantities which might be detrimental to the bacterial action in the tank or for the disposal of drainage from roof drains, foundation drains, or area drains.

69.5(2) Capacity.

a. Minimum capacity. The minimum liquid holding capacity shall be as specified in the following table (capacity may be obtained by using one or more tanks):

up to and including 3-bedroom homes 1,000 gal.

4-bedroom homes 1,250 gal.

5-bedroom homes 1,500 gal.

6-bedroom homes 1,750 gal.

Two hundred fifty gallons of capacity shall be added to each of these tank volumes if a kitchen garbage disposal unit, water softener, or a high volume water use fixture such as a whirlpool bath is to be used.

b. Other domestic waste systems. In the event that any installation serves more than a 6-bedroom home or its equivalent, or serves a facility other than a house and serves the equivalent of 15 persons or less (1,500 gal/day), approval of septic tank capacity and design must be obtained from the administrative authority. Minimum septic tank liquid holding volume shall be two times the estimated daily sewage flow.

c. For wastewater flow rates for nonresidential and commercial domestic waste applications under 1,500 gal/day, refer to Appendix A.

d. Minimum depth. Minimum liquid holding depth in any compartment shall be 40 inches.

e. Maximum depth. Maximum liquid holding depth for calculating capacity of the tank shall not exceed 61/2 feet.

f. Dimensions. The interior length of a septic tank should not be less than 5 feet and shall be at least 11/2 times the width (larger length-to-width ratios are preferred). No tank or compartment shall have an inside width of less than 2 feet. The minimum inside diameter of a vertical cylindrical septic tank shall be 5 feet.

69.5(3) Construction details.

a. Fill soil. Any septic tank placed in fill soil shall be placed upon a level, stable base that will not settle.

b. Compartmentalization. Every septic tank shall be divided into two compartments as follows (compartmentalization may be obtained by using more than one tank):

(1) The capacity of the influent compartment shall not be less than one-half nor more than two-thirds of the total tank capacity.

(2) The capacity of the effluent compartment shall not be less than one-third nor more than one-half of the total tank capacity.

c. Inlet/outlet. The invert of the inlet pipe shall be a minimum of 2 inches and a maximum of 4 inches higher than the invert of the outlet pipe.

d. Baffles. Four-inch schedule 40 plastic pipe tees shall be used as inlet and outlet baffles. Inlet tees shall extend at least 6 inches above and 8 inches below the liquid level of the tank. The inlet tee shall extend below the liquid level no more than 20 percent of the liquid depth. The outlet tee shall extend above the liquid level a distance of at least 6 inches and below the liquid level a distance of at least 10 inches but no more than 40 percent of the liquid depth. A minimum clearance between the top of the inlet and outlet tees and the bottom of the tank lid of 2 inches shall be provided. A horizontal separation of at least 36 inches shall be provided between the inlet baffle and the outlet baffle in each compartment.

A horizontal slot 4 inches by 6 inches, or two suitably spaced 4-inch-diameter holes in the tank partition, may be used instead of a tee or baffle, the top of the slot or holes to be located below the water level a distance of one-third the liquid depth. A ventilation hole or slot shall be provided in the partition, at least 8 inches above the liquid level.

e. Access. Access must be provided to all parts of septic tanks necessary for adequate inspection, operation, and maintenance.

An access opening shall be provided at each end of the tank over the inlet and outlet. These openings shall be at least 18 inches in the smallest dimension if the tank has no other openings. Alternatively, a single opening at least 24 inches in diameter may be provided at the center of the tank allowing access to both compartments, with two smaller openings at least 6 inches in diameter over both inlet and outlet.

If the top of the tank is to be greater than 12 inches below the finished ground surface, a riser at least 24 inches in diameter must be installed over each manhole of 18 inches in diameter or more to bring the top of the manhole lid to within 6 inches of the finished ground surface.

69.5(4) Construction.

a. Materials. Tanks shall be constructed of poured concrete or plastic resistant to corrosion or decay and designed so that they will not collapse or rupture when subjected to anticipated earth and hydrostatic pressures when the tanks are either full or empty. Metal tanks are prohibited.

b. Dividers. Tank divider walls and divider wall supports shall be constructed of heavy, durable plastic, fiberglass, concrete or other similar corrosion-resistant materials approved by the administrative authority.

c. Inlet and outlet ports. Inlet and outlet ports of pipe shall be constructed of heavy, durable schedule 40 PVC plastic sanitary tees or other similar approved corrosion-resistant material.

69.5(5) Wall thickness. Minimum wall thickness for tanks shall conform to the following specifications:

Poured concrete 6 inches thick

Poured concrete, reinforced 4 inches thick

Special concrete mix, vibrated
and reinforced 2.5 inches thick

Fiberglass or plastic .25 inches thick

69.5(6) Concrete specifications. Concrete used in precast septic tank construction shall have a maximum water-to-cement ratio of 0.45. Cement content shall be at least 650 pounds per cubic yard. Minimum compressive strength (f `c) shall be 4,000 psi (28 Mpa) at 28 days of age. The use of ASTM C150 Type II cement or the addition of silica fume or Class F fly ash is recommended.

69.5(7) Tank bottoms. Septic tank bottoms shall conform to the specifications set forth for septic tank walls except special mix concrete shall be at least 3 inches thick.

69.5(8) Tank tops. Concrete or masonry septic tank tops shall be a minimum of 4 inches in thickness and reinforced with 3/8-inch reinforcing rods in a 6-inch grid or equivalent. Fiberglass or plastic tank tops shall be a minimum of 1/4inch in thickness and shall have reinforcing and be of ribbed construction.

69.5(9) Reinforcing steel placement. The concrete cover for reinforcing bars, mats, or fabric shall not be less than 1 inch.

69.5(10) Bedding. Fiberglass or plastic tanks shall be bedded according to manufacturer's specifications. Provisions should be made to prevent flotation when the tanks are empty.

69.5(11) Connecting pipes.

a. Minimum diameter. The pipes connecting septic tanks installed in series and at least the first 5 feet on the effluent side of the last tank shall be a minimum of 4-inch-diameter schedule 40 plastic.

b. Tank connections. All inlet and outlet connections at the septic tanks shall be made by self-sealing gaskets cast into the concrete or formed into the plastic or fiberglass.

c. Joints. All joints in connecting schedule 40 plastic pipe shall be approved plastic pipe connections such assolvent-welded or compression-type gaskets.

d. Pipe in unstable ground. Schedule 40 plastic pipe shall be used extending across excavations or unstable ground to at least 2 feet beyond the point where the original ground has not been disturbed in septic tank installations. If the excavation spanned is more than 2 feet, it must be filled with sand or compacted fill to provide a firm bed for the pipe. The first 12 inches of backfill over the pipe shall be applied in thin layers using material free from stones, boulders, large frozen chunks of earth or any similar material that would damage or break the pipe.

567--69.6(455B) Secondary treatment--subsurface absorption systems. Soil absorption systems are the best available treatment technology and shall always be used where possible.

69.6(1) General requirements.

a. Locations. All subsurface absorption systems shall be located on the property to maximize the vertical separation distance from the bottom of the absorption trench to the seasonal high groundwater level, bedrock, hardpan or other limiting layer, but under no circumstances shall this vertical separation be less than 3 feet.

b. Soil evaluation. A percolation test or professional soil analysis is required before any soil absorption system is installed.

(1) Percolation test. The percolation test procedure is outlined in Appendix B.

(2) Alternative analysis. If a professional soil analysis is performed, soil factors such as soil content, color, texture, and structure shall be used to determine a percolation rate.

(3) Acceptable percolation rate. An area is deemed suitable for conventional soil absorption if the average percolation test rate is 60 minutes per inch or less and greater than 1 minute per inch. However, if an alternative-type system is proposed (e.g., mound), then the percolation test should be extended to determine whether a percolation rate of 120 minutes per inch is achieved.

(4) Confining layer determination. An additional test hole 6 feet in depth or to rock, whichever occurs first, shall be provided in the center of the proposed absorption area to determine the location of groundwater, rock formations or other confining layers. This 6-foot test hole may be augered the same size as the percolation test holes or may be made with a soil probe.

c. Groundwater. If seasonal groundwater is present within 3 feet of the trench bottom final grade and cannot be successfully lowered by subsurface tile drainage, the area shall be classified as unsuitable for the installation of a standard subsurface absorption system. Consult the administrative authority for an acceptable alternative method of wastewater treatment.

d. Site limitations. In situations where specific location or site characteristics would appear to prohibit normal installation of a soil absorption system, design modifications may be approved by the administrative authority which could overcome such limitations. Examples of such modifications could be the installation of subsurface drainage, use of shallow or at-grade trenches, use of dual soil treatment areas, mound system or water conservation plans.

e. Prohibited drainage. Roof, foundation and storm drains shall not discharge into or upon subsurface absorption systems. Nothing shall enter the subsurface absorption system which does not first pass through the septic tank.

f. Prohibited construction. There shall be no construction of any kind, including driveways, covering the septic tank, distribution box or absorption field of an on-site wastewater treatment and disposal system. Vehicle access should be infrequent, primarily limited to vegetation maintenance.

g. Driveway crossings. Connecting lines under driveways shall be constructed of schedule 40 plastic pipe or equivalent, and shall be protected from freezing.

h. Easements. No wastewater shall be discharged upon any property under ownership different from the ownership of the property or lot upon which it originates unless easements to that effect are legally recorded and approved by the administrative authority.

69.6(2) Trench length requirements.

a. Percolation charts. Table IIIa specifies lineal feet of lateral trenches required in accordance with the results of the standard percolation tests. Tables IIIb and IIIc list optional methods for determining length of lateral trenches or sizing of absorption beds. The alternative option for increased rock usage (Table IIIb) shall be used only when the size of lots limits the use of trench lengths prescribed in Table IIIa. Absorption beds (Table IIIc) shall not be used except when the lot size limitations preclude the installation of a lateral trench system. Further details concerning limitations of these two alternatives should be obtained from the administrative authority prior to requesting authorization for installation.

b. Unsuitable absorption. Conventional subsurface soil absorption trenches shall not be installed in soils that have a percolation rate less than 1 minute per inch or greater than 60 minutes per inch. Plans for an alternative method of wastewater treatment shall be submitted to the administrative authority for approval prior to construction.

Table IIIa

Soil Absorption System Sizing Chart

(Lineal feet of absorption trench)

Min. Per Inch
Two-Bedroom

300 gal/day(1)

Three-Bedroom

450 gal/day


Four-Bedroom

600 gal/day

Five-Bedroom

750 gal/day

Six-Bedroom

900 gal/day

1-5(2) (sand)
160
200
260

340
400
6-15 (loamy sand)
200
300
400

500
600
16-30 (sandy loam)
300
400
500

600
700
31-45 (sandy clay loam)
400
500
600

800
900
46-60 (clay loam)
500
600
700

900
1,100
(1)For domestic, nonhousehold wastewater flow rates, refer to Appendix A.

(2)For soils having more than 50 percent of very fine sand by weight, plus fine sand having a particle size range of 0.05 millimeters (sieve size 270) to 0.25 millimeters (sieve size 60), the 16-30 min. per inch values shall be used when gravelless pipe is installed.

Table IIIb

Alternative Option for Increased Rock Usage

(Only if necessary)

Depth of gravel(1) below distribution line
Reduction in trench lengths as taken from Table IIIa
12"
20%
18"
33%
24"
40%
(1)Total depth of trench must not exceed 36". Soil profile must be consistent with the percolation rate throughout the depth used. Separation from groundwater and confining layers must be maintained.

Table IIIc

Alternative Option for Use of Absorption Bed(1)

Percolation Rate Min./Inch
Absorption
Area/Bedroom Sq. Ft.
Loading Rate/Day Gal./Sq. Ft.
1-5
300
.5
6-15
400
.375
16-30
600
.25
(1)Absorption beds may only be used when site space restrictions require and shall not be used when the soil percolation rate exceeds 30 min./inch.

69.6(3) Construction details. (All soil absorption trenches.)

a. Depth. Lateral trenches shall not exceed 36 inches in depth unless authorized by the administrative authority, but a more shallow trench bottom depth of 18 to 24 inches is recommended. Not less than 6 inches of porous soil shall be provided over the laterals. Minimum separation between trench bottom and groundwater, rock formation or other confining layers shall be 36 inches even if extra rock is used under the pipe.

b. Length. No lateral absorption trench shall be greater than 100 feet long.

c. Separation distance. At least 6 feet of undisturbed soil shall be left between each trench edge on level sites. The steeper the slope of the ground, the greater the separation distance should be. Two feet of separation distance should be added for each 5 percent increase in slope from level.

d. Grade. Trench bottom should be constructed level from end to end. On sloping ground, the trench shall follow a uniform land contour to maintain a minimum soil cover of 6 inches while ensuring a level trench bottom.

e. Compaction. There shall be minimum use or traffic of heavy equipment on the area proposed for soil absorption. In addition, it is prohibited to use heavy equipment on the bottom of the absorption area.

f. Fill soil. Soil absorption systems shall not be installed in fill soil. Disturbed soils which have stabilized for at least one year would require a recent percolation test.

g. Bearing strength. Soil absorption systems shall be designed to carry loadings to meet AASHTO H-10 standards.

h. Soil smearing. Soils with significant clay content should not be worked when wet. If soil moisture causes sidewall smearing, the trench bottom and sidewalls shall be scar-ified.

69.6(4) Gravel systems.

a. Gravel. A minimum of 6 inches of clean, washed river gravel, free of clay and clay coatings, shall be laid below the distribution pipe, and enough gravel shall be used to cover the pipe. This gravel shall be of such a size that 100 percent will pass a 21/2-inch screen and 100 percent will be retained on a 3/4-inch screen. Limestone or crushed rock is not recommended for soil absorption systems. If used it shall meet the following criteria:

(1) Abrasion loss. The percent wear, as determined in accordance with the AASHTO T 96, Grading C, shall not exceed 40 percent.

(2) Freeze and thaw loss. When subjected to the freezing and thawing test, Iowa DOT Materials Laboratory Test Method 211, Method A, the percentage loss shall not exceed 10 percent.

(3) Absorption. The percent absorption, determined in accordance with Iowa DOT Materials Laboratory Test Method 202, shall not exceed 3 percent.

(4) Gradation. The aggregate shall have not more than 1.5 percent by weight pass a No. 16 sieve.

b. Trench width. Lateral trenches for gravel systems shall be a minimum of 24 inches and a maximum of 36 inches in width at the bottom of the trench.

c. Grade. The distribution pipes shall be laid with a minimum grade of 2 inches per 100 feet of run and a maximum grade of 6 inches per 100 feet of run, with a preference given to the lesser slope.

d. Pipe. Distribution pipe shall be PVC rigid plastic meeting ASTM Standard 2729, or other suitable material approved by the administrative authority. The inside diameter shall be not less than 4 inches, with perforations at least 1/2 inch and no more than 3/4 inch in diameter spaced no more than 40 inches apart. Two rows of perforations shall be provided located 120 degrees apart along the bottom half of the tubing (each 60 degrees up from the bottom centerline). The end of the pipe in each trench shall be sealed with a watertight cap unless, on a level site, a footer is installed connecting the trenches together. Coiled perforated plastic pipe shall not be used when installing absorption systems.

e. Gravel cover. Unbacked, rolled, 31/2-inch-thick fiberglass insulation, untreated building paper, synthetic drainage fabric, or other approved material shall be laid so as to separate the gravel from the soil backfill.

69.6(5) Gravelless pipe systems.

a. Application. Gravelless subsurface absorption systems may be used as an alternative to conventional 4-inch pipe placed in gravel-filled trenches. However, they cannot be used in areas where conventional systems would not be allowed due to poor permeability, high groundwater, or insufficient depth to bedrock.

b. Installation. Manufacturer's specifications and installation procedures shall be adhered to.

c. Material. The 8- and 10-inch I.D. corrugated polyethylene tubing used in gravelless systems shall meet the requirements of ASTM F667, Standard Specification for Large Diameter Corrugated Polyethylene Tubing.

d. Perforations. Two rows of perforations, 3/4 inch in diameter, shall be located 120 degrees apart along the bottom half of the tubing (each 60 degrees up from the bottom centerline). Perforations shall be cleanly cut into each inner corrugation along the length of the tubing and should be staggered so that there is only one hole in each corrugation.

e. Top marking. The tubing should be visibly marked to indicate the top of the pipe.

f. Filter wrap. All gravelless drainfield pipe shall be encased, at the point of manufacture, with a geotextile filter wrap specific to this purpose.

g. Trench width. If dug with a backhoe, the minimum trench width for the gravelless system shall be 18 inches in sandy loam soil to ensure proper backfill around the bottom half of the pipe. In clay soils, the minimum trench width shall be 24 inches. If the pipe is laid in with a wheel trencher leaving a curved trench bottom, the trench width may be just 2 inches wider than the outside diameter of the pipe.

h. Length of trench. The total length of absorption trench for a 10-inch gravelless tubing installation shall be the same as given in Table IIIa for a conventional absorption trench, except for fine sandy soils as noted in Table IIIa footnote. An increase of at least 20 percent in total trench length shall be required if 8-inch tubing is used rather than 10-inch.

69.6(6) Chamber systems.

a. Application. Chamber systems may be used as an alternative to conventional 4-inch pipe placed in gravel-filled trenches. However, they cannot be used in areas where conventional systems would not be allowed due to poor permeability, high groundwater, or insufficient depth to bedrock.

b. Installation. Manufacturer's specifications and installation procedures shall be closely adhered to.

c. Length of trench. The total length of absorption trench for chambers 24 inches or less in bottom width shall be the same as given in Table IIIa for a conventional absorption trench. For chambers 36 inches in width a reduction of 25 percent from the lengths given in Table IIIa may be used.

d. Sidewall. The chambers shall have at least 6 inches of sidewall slotted height.

69.6(7) Gravity distribution. Dosing is always recommended and preferred to improve distribution, improve treatment and extend the life of the system.

a. On a hillside, septic tank effluent may be serially loaded to the soil absorption trenches by drop boxes or overflow piping (rigid sewer pipe). Otherwise, effluent shall be distributed evenly to all trenches by use of a distribution box or commercial distribution regulator approved by the administrative authority.

b. Design. When a distribution box is used, it shall be of proper design and installed with separate watertight headers leading from the distribution box to each lateral.

c. Outlets height. The distribution box shall have outlets at the same level at least 4 inches above the bottom of the box to provide a minimum of 4 inches of water retention in the box.

d. Baffles. There shall be a pipe tee or baffle at the inlet to break the water flow.

e. Unused outlets. All unused outlet holes in the box shall be securely closed.

f. Interior coating. All distribution boxes shall be constructed of corrosion-resistant rigid plastic materials, or other corrosion-resistant material approved by the administrative authority.

g. Outlets level. All outlets of the distribution box shall be made level. A 4-inch cap with an offset hole approximately 21/2 inches in diameter shall be installed on each outlet pipe. These caps shall be rotated until all outlets discharge at the same elevation. Equivalent leveling devices may be approved by the local authority.

h. Equal length required. The soil absorption area serviced by each outlet of the distribution box shall be equal.

69.6(8) Dosing systems.

a. Pump systems.

(1) Pump and pit requirements. In the event the effluent from the septic tank outlet cannot be discharged by gravity and still maintain proper lateral depths, the effluent shall discharge into a watertight vented pump pit with an inside diameter of not less than 24 inches, equipped with a tight-fitting manhole cover at grade level. The sump vent shall extend a minimum of 6 inches above grade level and shall be a minimum size of 11/4 inches fitted with a return bend. The pump shall be of a submersible type of corrosion-resistant material.

(2) Pump setting. The pump shall be installed in the pump pit in a manner that ensures ease of service and protection from frost and settled sludge. The pump shall be set to provide a dosing frequency of approximately twice a day based on the maximum design flow. No on-site electrical connections shall be made in the pump pit. These connections shall be made in an exterior weatherproof box.

(3) Pressure line size. The pressure line from the pump to the point of discharge shall not be smaller than the outlet of the pump it serves.

(4) Drainage. Pressure lines shall be installed to provide total drainage between dosings to prevent freezing or be buried below frost level up to the distribution box.

(5) High water alarm. Pump pits shall be equipped with a sensor set to detect if the water level rises above the design high water level when the pump fails. This sensor shall activate an auditory or visual alarm to alert the homeowner that repairs are required.

(6) Discharge point. The effluent shall discharge under pressure into a distribution box or may be distributed by small diameter pipes throughout the entire absorption field.

b. Dosing siphons. Dosing siphons may also be used. Manufacturer's specifications shall be adhered to for installation. Similar dosing volumes and frequencies are recommended. Dosing siphons require periodic cleaning to ensure their continued proper operation.

567--69.7(455B) Mound system.

69.7(1) General requirements.

a. Mound systems shall be permitted only after a thorough site evaluation has been made and landscaping, dwelling placement, effect on surface drainage and general topography have been considered.

b. Mound systems shall not be utilized on sites which are subject to flooding with a ten-year or greater frequency.

c. Mound systems shall not be utilized on soils where the high groundwater level, impermeable bedrock or soil strata having a percolation rate exceeding 120 minutes per inch occur within 12 inches of natural grade, or where creviced bedrock occurs within 20 inches of natural grade.

d. Mound systems shall be constructed only upon undisturbed naturally occurring soils.

e. Mound systems shall be located in accordance with the distances specified in Table I as measured from the outer edge of the mound.

f. No buildings, driveways or other surface or subsurface obstructions shall be permitted within 50 feet on the down gradient side of the mound when the mound is constructed on a slope greater than 5 percent. No future construction shall be permitted in this effluent disposal area as long as the mound is in use.

69.7(2) Material for mound fill.

a. The mound shall be constructed using clean, medium-textured sand, sometimes referred to as concrete sand. The sand size shall be such that at least 25 percent by weight shall have a diameter between 2.0 and 0.25mm, less than 35 percent with a diameter between 0.25 and 0.05mm and less than 5 percent with a diameter between 0.002 and 0.05mm.

b. Rock fragments larger than 1/16 inch (2.0mm) shall not exceed 15 percent by weight of the material used for sandy fill.

69.7(3) Construction details.

a. There shall be a minimum of 3 feet of fill material and undisturbed naturally occurring soils between the bottom of the washed gravel and the highest elevation of the limiting conditions defined in 69.7(1)"c."

b. Gravel shall be washed and shall range in size from 3/4 inch to 21/2 inches.

c. From 1 to 2 feet of medium-textured sand (depending upon the underlying soil depth, see 69.7(3)"a") must be placed between the bottom of the gravel and the top of the plowed surface of the naturally occurring soil.

d. Mound systems shall utilize absorption bed distribution piping design. The bed shall be installed with the long dimension parallel to the land contour. Systems on steep slopes with slowly permeable soils should be narrow to reduce the possibility of toe seepage.

e. Minimum spacing between distribution pipes shall be 4 feet, and a minimum of 3 feet shall be maintained between any trench and the sidewall of the mound.

f. No soil under or up to 50 feet down gradient of the mound may be removed or disturbed except as specified herein.

g. Construction equipment which would cause undesirable compaction of the soil shall be kept off the base area. Construction or plowing shall not be initiated when the soil moisture content is high. If a sample of soil from approximately 9 inches below the surface can be easily rolled into a 1/8- to 1/4-inch diameter wire, the soil moisture content is too high for construction purposes.

h. Aboveground vegetation shall be closely cut and removed from the ground surface throughout the area to be utilized for the placement of the fill material.

i. The area shall be plowed to a depth of 7 to 8 inches, parallel to the land contour with the plow throwing the soil up slope to provide a proper interface between the fill and the natural soil. Tree stumps should be cut flush with the surface of the ground, and roots should not be pulled.

j. The base area of the mound is to be calculated on the results of percolation rate as indicated in Table IV. The base area of the mound below and downslope from the trenches, excluding the area under the end slopes, must be large enough for the natural soil to absorb the estimated daily wastewater flow.

k. Table IV

Percolation Rate
Min/Inch

Permeability
Application Rate

Gal/Square

Foot/Day

Less than 1
Gravel
Not Suitable
1 - 5
Sand
1.25
6 - 15
Loamy Sand
1.00
16 - 30
Sandy Loam
.75
31 - 45
Sandy Clay Loam
.50
46 - 60
Clay Loam
.40
61- 90
Brown Clay
.20
91 - 120
Gray Clay
.10
Over 120
Blue Clay
Not Suitable

l. The area of the fill material shall be sufficient to extend 3 feet beyond the edge of the gravel area before the sides are shaped to at least a 4:1 slope (preferably 5:1).

m. Distribution system.

(1) The distribution pipe shall be rigid plastic pipe, schedule 40 or 80 with 1-inch nominal diameter.

(2) The distribution pipe shall be provided with a single row of 1/4-inch perforations in a straight line 30 inches on center along the length of the pipe or an equivalent design that ensures uniform distribution. All joints and connections shall be solvent-cemented.

(3) The distribution pipe shall be placed in the clean, washed gravel (or crushed limestone as described in 69.6(4)"a") with holes downward. The gravel shall be a minimum of 9 inches in depth below and 3 inches in depth above the pipe.

(4) No perforations shall be permitted within 3 inches of the outer ends of any distribution pipes.

(5) The outer ends of all pressure distribution lines shall be securely capped.

(6) The central pressure manifold should consist of 11/2-inch or 2-inch solid plastic pipe using a tee or cross for connecting the distribution lines.

n. Construction should be initiated immediately after preparation of the soil interface by placing all of the sandy fill material needed for the mound (to the top of the trench) to a minimum depth of 21 inches above the plowed surface. This depth will permit excavation of the trenches to accommodate the 9 inches of washed gravel or crushed stone necessary for the distribution piping.

o. The absorption trench or trenches shall be hand excavated to a depth of 9 inches, the bottoms of the trenches made certain to be level.

p. Twelve inches of gravel shall be placed in the trench and hand leveled, and then 3 inches of the gravel removed with a shovel in the location where the distribution pipe will be placed. After the distribution pipe is placed, the pipe shall be covered with 2 inches of gravel.

q. The top of the gravel shall be covered with synthetic drainage fabric. Unbacked, rolled 31/2-inch-thick fiberglass insulation, untreated building paper, or other suitable material may be used with approval of the administrative authority. Plastic or treated building paper shall not be used.

r. After installation of the distribution system, gravel and material over the gravel, the entire mound is to be covered with topsoil native to the site or of similar characteristics to support vegetation found in the area. The entire mound shall be crowned by providing 12 inches of topsoil on the side slopes with a minimum of 18 inches over the center of the mound. The entire mound shall be seeded, sodded or otherwise provided with a grass cover to ensure stability of the installation.

s. The area surrounding the mound shall be graded to provide for diversion of surface runoff water.

69.7(4) Dosing.

a. Dosing shall be required for mound systems.

b. The dosing volume shall be five to ten times the distribution piping network volume.

c. The size of the dosing pump or siphon shall be capable of maintaining an approximate pressure of one psi at the outer ends of the distribution lines.

567--69.8(455B) Drip irrigation.

69.8(1) General design.

a. Pretreatment required. These systems must be preceded by a secondary treatment system discharging a treated, filtered effluent with BOD and TSS values less than 20 mg/l.

b. Separation from groundwater. Drip irrigation systems shall have a minimum vertical separation distance to high groundwater level or bedrock of 20 inches.

c. Maximum hillside slope. Drip irrigation systems shall not be installed on slopes of more than 25 percent.

69.8(2) Emitter layout.

a. Discharge rate. Systems shall be designed so that emitters discharge approximately 1 gpm at 12 psi or other rates suggested by the manufacturer and approved by the administrative authority.

b. Grid size. Drip lines shall be run in parallel lines 2 feet apart. Emitters shall be placed in the drip lines on 2-foot intervals with emitters offset 1 foot between adjacent lines. Each emitter shall cover 4 square feet of absorption area.

c. Field size. The field shall be sized according to the application rate given in Table I.

d. Depth of drip lines. Drip lines shall be laid on the contour 6 to 12 inches deep with a maximum line length of 100 feet. Lines may be of unequal length.

e. Interconnection. Drip lines shall all be connected to supply and return headers such that the entire system will automatically drain back to the dosing tank or pump pit upon completion of the pumping cycle. Vacuum breakers shall be positioned at the high point of the supply and return headers.

The dosing tank shall have a high water audio/visual alarm.

Table V. Length of Drip Line Required Per Bedroom

Perc. Rate

min./in.

Design Hyd. Loading

gpd/sq.ft.

Length of Drip Line

feet/bedroom

1 - 5
2.0
40
6 - 15
1.3
60
16 - 30
0.9
90
31 - 45
0.6
150
46 - 60
0.4
200
61 - 90
0.2
400
91 - 120
0.1
800
567--69.9(455B) Intermittent sand filters.

69.9(1) General requirements.

a. Use. Intermittent sand filters shall be used when the administrative authority determines the soil is unacceptable for a soil absorption system.

b. Location. Intermittent sand filters shall be located in accordance with the distances specified in Table I.

c. Sampling. A sampling port shall be available at the discharge point of the filter or shall be installed in the discharge line. Monitoring and effluent sampling of intermittent sand filters must meet the requirements of the NPDES permit as specified in rule 69.2(455B). Such sampling shall be performed annually or as directed by the administrative authority. The maximum carbonaceous BOD5, total suspended solids and fecal coliform count requirements are as follows:

Effluents Discharging To

Fecal Coliform/100 ml
CBOD5
TSS
Class "A" waters:
Primary contact
water use*
200
25
25
All other water use
classifications
no limit
25
25

*A separation distance of 750 feet shall be maintained between any point of discharge and a primary recreational area as specified in the "Recommended Standards for Bathing Beaches" of the Great Lakes-Upper Mississippi River Board of State Public Health and Environmental Managers.

d. Prohibited construction. There shall be no construction, such as buildings or concrete driveways, covering any part of an intermittent sand filter.

69.9(2) Construction.

a. Number. An intermittent sand filter shall consist of one filtering bed or two or more filtering beds connected in series and separated by a minimum of 6 feet of undisturbed earth.

b. Pipelines. Each bed shall contain a horizontal set of collector lines. The collector lines shall be equivalent to schedule 40 PVC pipe or other suitable materials.

(1) One collector line shall be provided for each 6 feet of width or fraction thereof. A minimum of two collector lines shall be provided.

(2) The collector lines shall be laid to a grade of 1 inch in 10 feet (or 0.5 to 1.0 percent).

(3) Each collector line shall be vented or connected to a common vent. Vents shall extend at least 12 inches above the ground surface with the outlet screened, or provided with a perforated cap.

(4) Gravelless drainfield pipe with fiber wrap may be used for the collector lines. If so, no gravel or pea gravel is required covering the collector lines.

(5) If 4-inch schedule 40 sewer pipe with 3/4-inch holes is used for the collector lines, they shall be covered as follows:

1. Gravel 3/4 inch to 21/2 inches in size shall be placed around and over the lower collector lines until there is a minimum of 4 inches of gravel over the pipes.

2. The gravel shall be overlaid with a minimum of 3 inches of washed pea gravel 1/8-inch to 3/8-inch size interfacing with the filter media. A fabric filter may be used in place of the pea gravel. Fabric filters must be 30 by 50 mesh with a percolation rate of at least 5 gal/sq.ft.

(6) A minimum of 24 inches of coarse washed sand shall be placed over the pea gravel or above the gravelless drainfield pipe. The sand shall meet the Iowa DOT standards for concrete sand: 100 percent shall pass a 9.5 mm screen, 90 to 100 percent shall pass a 4.75 mm screen, 70 to 100 percent shall pass a 2.36 mm screen, 10 to 60 percent shall pass a 600Tm screen, and 0 to 1.5 percent shall pass a 75Tm screen.

69.9(3) Subsurface sand filters.

a. Distribution system and cover.

(1) Gravel base. Six inches of gravel 3/4 inch to 21/2 inches in size shall be placed upon the sand in the bed.

(2) Distribution lines. Distribution lines shall be level and shall be horizontally spaced a maximum of 3 feet apart, center to center.

(3) Venting. Venting shall be placed on the downstream end of the distribution lines with each distribution line being vented or connected to a common vent. Vents shall extend at least 12 inches above the ground surface with the outlet screened, or provided with a perforated cap.

(4) Gravel cover. Enough gravel shall be carefully placed to cover the distributors.

(5) Separation layer. A layer of material such as unbacked, rolled 31/2-inch-thick fiberglass insulation, untreated building paper of 40- to 60-pound weight, synthetic drainage fabric or 4 to 6 inches of marsh hay or straw shall be placed upon the top of the upper layer of gravel.

(6) Soil cover. A minimum of 12 inches of soil backfill shall be provided over the beds.

(7) Distribution boxes. A distribution box shall be provided for each filter bed where gravity distribution is used. The distribution boxes shall be placed upon undisturbed earth outside the filter bed. Separate watertight lines shall be provided leading from the distribution boxes to each of the distributor lines in the beds.

b. Sizing of subsurface sand filters.

(1) Gravity flow.

1. For residential systems, single bed subsurface sand filters shall be sized at a rate of 240 square feet of surface area per bedroom.

2. Dual subsurface sand filters, constructed in series, shall be sized at the rate of 160 square feet of surface per bedroom in the first filter and 80 square feet of surface area per bedroom in the second filter in the series.

(2) Pressure dosed.

1. For residential systems, single bed subsurface sand filters dosed by a pump or dosing siphon may be sized at a rate of 180 square feet of surface area per bedroom.

2. Dual subsurface sand filters, constructed in series, may be sized at the rate of 120 square feet of surface per bedroom in the first filter and 60 square feet of surface area per bedroom in the second filter in series.

(3) Nonhousehold. Effluent application rates for commercial systems treating domestic waste shall not exceed the following:

1. 1.5 gallon/square feet/day for double bed sand filters.

2. 1.0 gallon/square feet/day for single bed sand filters.

3. Total surface area for any subsurface sand filter system shall not be less than 200 square feet.

69.9(4) Free access sand filters.

a. Description. Media characteristics and underdrain systems for free access filters are similar to those for subsurface filters. Dosing of the filter should provide for flooding the bed to a depth of approximately 2 inches. Dosing frequency is usually greater than two times per day. For coarser media (greater than 0.5mm) a dosing frequency greater than four times per day is desirable. Higher acceptable loadings on these filters as compared to subsurface filters relate primarily to the accessibility of the filter surface for maintenance. Gravel is not used on top of the sand media, and the distribution pipes are exposed above the surface.

b. Distribution. Distribution to the filter may be by means of troughs laid on the surface, pipelines discharging to splash plates located at the center or corners of the filter, or spray distributors. Care must be taken to ensure that lines discharging directly to the filter surface do not erode the sand surface. The use of curbs around the splash plates or large stones placed around the periphery of the plates will reduce the scour. A layer of washed pea gravel placed over the filter media may also be employed to avoid surface erosion. This practice will create maintenance difficulties, however, when it is time to rake or remove a portion of the media surface.

c. Covers. Free access filters may be covered to protect against severe weather conditions and to avoid encroachment of weeds or animals. The cover also serves to reduce odor conditions. Covers may be constructed of treated wooden planks, galvanized metal, or other suitable material. Screens or hardware cloth mounted on wooden frames may also serve to protect filter surfaces. Where weather conditions dictate, covers should be insulated. A space of 12 to 24 inches should be allowed between the insulated cover and sand surface. Free access filters may not be buried by soil or sod.

d. Loading. The hydraulic loading for free access sand filters should be from 2.0 to 5.0 gpd/sq.ft.

e. Number of filters. Dual filters each sized for the design flow are recommended for loading rates in excess of 31/2 gpd/sq.ft. treating septic tank effluent.

69.9(5) Dosing. Dosing for sand filters is strongly advised. Without dosing, the entire area of the sand filter is never effectively used. Dosing not only improves treatment effectiveness but also decreases the chance of premature failure.

a. Pumps. A pump shall be installed when adequate elevation is not available for the system to operate by gravity.

(1) The pump shall be of corrosion-resistant material.

(2) The pump shall be installed in a watertight pit.

(3) The dosing system shall be designed to flood the entire filter during the dosing cycle. A dosing frequency of greater than two times per day is recommended.

(4) A high water alarm shall be installed.

b. Dosing siphons. When a dosing siphon is used where elevations permit, such siphon shall be installed as follows:

(1) Dosing siphons shall be installed between the septic tank and the first filter bed.

(2) Dosing siphons shall be installed with strict adherence to the manufacturer's instructions.

c. Dosing tanks. The dosing tank shall be of such size that the siphon will flood the entire filter during the dosing cycle. A dosing frequency of greater than two times per day is recommended.

567--69.10(455B) Individual mechanical aerobic wastewater treatment systems. General requirements for individual mechanical aerobic wastewater treatment systems are as follows:

69.10(1) Use. Mechanical/aerobic systems shall be used when the administrative authority determines that the soil is unacceptable for a soil absorption system. Because of the higher maintenance requirements of mechanical/aerobic systems, preference should be given to sand filters, where conditions allow.

69.10(2) Certification. All individual mechanical aerobic wastewater treatment plants shall be certified by an ANSI-accredited third-party certifier to meet National Sanitation Foundation Standard 40, Class I, including appendices (May 1996).

69.10(3) Installation and operation. All individual mechanical aerobic wastewater treatment plants shall be installed, operated and maintained in accordance with the manufacturer's instructions and the requirements of the administrative authority. The aerobic plants shall have a minimum treatment capacity of 150 gallons per bedroom per day or 500 gallons, whichever is greater. Installation of these types of plants should be restricted to those locations where they can be monitored by the local administrative authority.

69.10(4) Effluent treatment. The effluent from individual mechanical aerobic wastewater treatment plants shall receive additional treatment through the use of intermittent sand filters, mound systems or subsurface absorption systems of a magnitude of half that prescribed in rules 69.6(455B), 69.7(455B) or 69.9(455B) or by discharge to a drip irrigation system as sized in 69.8(455B).

69.10(5) Maintenance contract. A maintenance contract with a manufacturer-certified technician shall be maintained at all times. Maintenance agreements and responsibility waivers shall be recorded with the county recorder and in the abstract of title for the premises on which mechanical aerobic treatment systems are installed. Mechanical aerobic units shall be inspected for proper operation at least three times a year.

69.10(6) Effluent sampling. Any open discharge from systems involving mechanical aeration shall have the effluent sampled at each inspection. In the spring, tests shall be run on all parameters as required in 69.9(1). At other times, only CBOD5 testing is required.

567--69.11(455B) Constructed wetlands.

69.11(1) General site design.

a. Application. Constructed wetlands shall only be used where soil percolation rates at the site exceed 120 minutes per inch. Because of the higher maintenance requirements of constructed wetland systems, preference should be given to sand filters, where conditions allow.

b. Effluent treatment. The effluent from a constructed wetland shall receive additional treatment through the use of intermittent sand filters of a magnitude of half that prescribed in rule 69.9(455B).

c. Effluent sampling. Effluent sampling of constructed wetlands shall be performed twice a year or as directed by the administrative authority. In the spring, tests shall be run on all parameters as required in 69.9(1). At other times, only CBOD5 testing is required.

69.11(2) Wetland design.

a. Depth. The wetland shall be of a subsurface flow construction with a rock depth of 18 inches and a liquid depth of 12 inches.

b. Materials. Substrate shall be washed river gravel with a diameter of 3/4 inch to 21/2 inches. If crushed quarried stone is used, it must meet the criteria listed in 69.6(4)"a."

c. Sizing and configuration. Detention time shall be a minimum of seven days.

(1) Dimensions. This may be accomplished with trenches 16 to 18 inches deep (12 inches of liquid), 3 feet wide with 100 feet of length per bedroom. This may also be done with beds 16 to 18 inches deep with at least 300 square feet of surface area per bedroom. The bottom of each trench or bed must be level within +/-1/2 inch.

(2) Configuration. Multiple trenches or beds in series should be used. Beds or trenches in series may be stepped down in elevation to fit a hillside application. If the system is on one elevation, it should still be divided into units by earthen berms at about 50 and 75 percent of the total length.

(3) Unit connections. Each subunit shall be connected to the next with an overflow pipe (rigid sewer pipe) that maintains the water level in the first section. Protection from freezing may be necessary.

d. Liner. Wetlands shall be lined with a synthetic PVC or PE plastic liner 20 to 30 mils thick.

e. Inlet pipe. Effluent shall enter the wetland by a 4-inch pipe sealed into the liner. With beds, a header pipe shall be installed along the inlet side to distribute the waste.

f. Protective berms. Wetland system sites shall be bermed to prevent surface water from entering the trenches or beds.

69.11(3) Vegetation.

a. Setting plants. Vegetation shall be established on the wetlands at time of construction. Twelve inches of rock is placed in each unit, the plants are set, then the final 4 to 6 inches of rock is placed.

b. Plant species. Only indigenous plant species shall be used, preferably collected within a 100-mile radius of the site. Multiple species in each system are recommended. Preferred species include, but are not limited to:

(1) Typha Latifolia - Common cattail

(2) Typha Angustifolia - Narrow leaf cattail

(3) Scirpus spp. - Bullrush

(4) Phragmites communis - Reed

c. Plant establishment. Transplantation is the recommended method of vegetation establishment. For transplanting, the propagule should be transplanted, at a minimum, on a 2-foot grid. The transplants should be fertilized, preferably with a controlled release fertilizer such as Osmocote 18-5-11 for fall and winter planting, 18-6-12 for spring planting, and 19-6-12 for summer planting. Trenches or beds should be filled with fresh water immediately.

d. Plant management. In the late fall the vegetation shall be mown and the detritus left on the wetland surface as a temperature mulch. In the early spring the mulch shall be removed and disposed of to allow for adequate bed aeration.

567--69.12(455B) Waste stabilization ponds.

69.12(1) General requirements. Waste stabilization ponds may be used if designed and constructed in accordance with the following criteria and provided the effluent is discharged in accordance with the requirements of the general NPDES permit listed in rule 69.2(455B). A septic tank sized according to rule 69.5(455B) shall precede a waste stabilization pond.

69.12(2) Location. Waste stabilization ponds must meet the following separation distances:

a. 1,000 feet from the nearest inhabitable residence, commercial building, or other inhabitable structure. If the inhabitable or commercial building is the property of the owner of the proposed treatment facility, or there is written agreement with the owner of the building, the separation criteria shall not apply. Any such written agreement shall be filed with the county recorder and recorded for abstract of title purposes, and a copy submitted to the department.

b. 1,000 feet from public shallow wells.

c. 400 feet from public deep wells.

d. 400 feet from private wells.

e. 400 feet from lakes and public impoundments.

f. 25 feet from property lines and rights-of-way.

69.12(3) Size.

a. Dimensions. Ponds shall have a length not exceeding three times the width.

b. Capacity. When domestic sewage from a septic tank is to be discharged to a waste stabilization pond, the capacity of the pond shall be equivalent to 180 times the average daily design flow.

c. Depth. The wastewater depth for a waste stabilization pond shall be uniform and 3 feet to 5 feet.

d. Freeboard. A minimum freeboard of 2 feet shall be maintained at all times.

69.12(4) Embankments.

a. Seal. Embankments shall be constructed of impermeable materials and shall be compacted. The bottom of the waste stabilization pond shall be cleared and leveled to the required elevation and shall be lined with an impermeable natural or man-made material. Seepage loss through the sides and bottom shall be less than 1/16 inch per day.

b. Slopes. Inside embankment slopes shall be 3 horizontal to 1 vertical. Outside embankments shall be at least 3:1.

c. Berm top. Berm tops shall be at least 4 feet wide.

d. Cover. Embankments shall be seeded from the outside toe to the inside high water line. From the high water line down the embankment diagonally about 5 feet shall be rip-rapped for erosion and vegetation control.

69.12(5) Inlet and outlet structures.

a. Inlet. The inlet shall be placed no higher than 12 inches above the bottom of the pond. It shall discharge near the middle of the pond at a point opposite the overflow structure and onto a concrete splash plate at least 2 feet square.

b. Outlet. The outlet pipe shall withdraw water from a submerged depth of at least 1 foot. The intake for the outlet pipe shall be 3 to 5 feet from the embankment.

c. Separation. The inlet and outlet should be separated to the maximum extent possible, ideally by a berm or baffle constructed in the lagoon to prevent short-circuiting.

69.12(6) Drainage. All surface water shall be diverted away from the waste stabilization pond.

69.12(7) Discharge.

a. Controlled discharge. If the pond is to be open discharged, it must be under controlled conditions. The effluent must be tested before discharge, and effluent quality must be less than CBOD of 25 mg/l and TSS of 25 mg/l. Another test must be taken during discharge with the same results. Pond discharge is permitted only in spring and fall when stream flows are highest.

b. Continuous discharge. If the pond is to have an unlimited continuous discharge, the effluent shall receive additional treatment through the use of intermittent sand filters, mound systems or subsurface absorption systems of a magnitude of half that prescribed in rules 69.6(455B), 69.7(455B) and 69.9(455B). Under continuous discharge, effluent sampling shall be as required for constructed wetlands as outlined in 69.11(1)"c."

69.12(8) Maintenance.

a. Fencing. All waste stabilization ponds are to be fenced adequately to prevent entrance of livestock and to discourage entrance by people into the area. Signs shall be posted warning of possible health and safety hazards.

b. Vegetation. Vegetation on the top and sides of the berm shall be kept mown. No trees shall be allowed to become established.

567--69.13(455B) Requirements for impervious vault toilets. All impervious vault toilets hereafter constructed or required by the administrative authority to be reconstructed shall comply with the following requirements:

69.13(1) Location. Impervious vault toilets shall be located in accordance with the distances given in Table I, rule 69.3(455B).

69.13(2) Construction. The vault shall be constructed of reinforced, impervious concrete at least 4 inches thick. The superstructure including floor slab, seat, seat cover, riser and building shall comply with good design and construction practices to provide permanent safe, sanitary facilities. The vault shall be provided with a cleanout opening fitted with a fly-tight cover.

69.13(3) Disposal. Wastewater from impervious vault toilets shall be disposed of at a public sewage treatment facility.

567--69.14(455B) Requirements for portable toilets. All portable toilets shall be designed to receive and retain the wastes deposited in them and shall be located and maintained in a manner that will prevent the creation of any nuisance condition. Disposal of waste from portable toilets shall be at a public sewage treatment facility.

567--69.15(455B) Requirements for chemical toilets. All chemical toilets shall comply with the following requirements:

69.15(1) Tank. Chemical toilets for use in isolated residences shall have a receptacle of smooth, impervious material that is resistant to chemicals and easily cleanable.

69.15(2) Vent. When vents are required for chemical toilets, they shall be of durable corrosion-resistant material installed in a professional manner.

69.15(3) Mixing and chemical charge. The fixture shall be equipped with a mixing device and shall be charged with the proper concentration of bactericidal chemical or chemicals. Chemical recharges shall be added and mixed with the contents when necessary to maintain sufficient solution strength and to suppress odors.

69.15(4) Toilet rooms. Chemical toilets shall be located in toilet rooms which are well lighted, ventilated and maintained in a nuisance-free condition.

69.15(5) Final disposal of receptacle contents. The receptacle contents shall be disposed of in accordance with the requirements of 567--Chapter 68. The recommended method of disposal is discharging to a municipal sewage treatment facility.

567--69.16(455B) Other methods of wastewater disposal. Other methods or types of private wastewater treatment and disposal systems shall be installed only after plans and specifications for each project have been approved by the administrative authority.

567--69.17(455B) Disposal of septage from on-site wastewater treatment and disposal systems. The collection, storage, transportation and disposal of all septage shall be carried out in accordance with the requirements in 567--Chapter 68.

69.17(1) Methods of septage disposal.

a. Discharge (with owner approval) to a municipal or other permitted wastewater treatment system.

b. Discharge (with owner approval) to permitted sludge lagoons or sludge drying beds.

c. Land application in accordance with the following requirements:

(1) The maximum application rate is 30,000 gallons of septage per 365-day period per acre of cropland.

(2) The following site restrictions shall be met when septage is applied to land.

1. Septage shall not be applied to a lawn or a home garden.

2. The septage shall be applied only to soils classified as acceptable throughout the top five feet of soil profile. The septage shall not be applied to soils classified as sand, loamy sand and silt. The acceptability of a soil shall be determined using the USDA soil classifications.

3. Land application sites shall have soil pH maintained above 6.0, unless crops prefer soils with lower pH conditions. If the soil pH is below 6.0, it is acceptable to use agricultural lime to increase the pH to an acceptable level.

4. If the septage is applied to land on which the soil loss exceeds the soil loss limits established by the county soil conservation district, the septage shall be injected on the contour or shall be applied to the surface and mechanically incorporated into soil within 48 hours of application. The septage shall not be applied to ground having greater than 9 percent slope.

5. Septage application on frozen or snow-covered ground should be avoided, unless special precautions are taken to avoid runoff. If application on frozen or snow-covered ground is necessary, it shall be limited to land areas of less than 5 percent slope.

6. Septage shall not be applied to land that is 35 feet or less from an open waterway. If septage is applied within 200 feet of a stream, lake, sinkhole or tile line surface intake located down gradient of the land application site, it shall be injected or applied to the surface and mechanically incorporated into the soil within 48 hours of application.

7. If the septage is applied to land subject to flooding more frequently than once in ten years, the septage shall be injected or shall be applied to the surface and mechanically incorporated into the soil within 48 hours. Information on which land is subject to flooding more frequently than once in ten years is available from the department.

8. Septage shall not be applied within 200 feet of an occupied residence or within 500 feet of a well.

9. Food crops shall not be harvested for 38 months after application of septage.

10. Animals shall not be allowed to graze on the land for 30 days after application of septage.

(3) One of the following vector attraction reduction requirements shall be met when septage is applied to land.

1. Septage shall be injected below the surface of the land. No significant amount of the septage shall be present on the land surface within one hour after the septage is injected.

2. Septage applied to the land surface shall be incorporated into the soil within six hours after application to or placement on the land.

3. The septage shall be stabilized by adding and thoroughly mixing sufficient lime to produce a mixture with a pH of 12. Provide a minimum of two hours of contact time after mixing the lime with the septage prior to applying to land. Each container of septage shall be monitored for compliance.

4. The septage shall be stabilized by adding and thoroughly mixing 50 pounds of lime with each 1,000 gallons of septage.

(4) When septage is applied to land, the person who applies the septage shall develop the following information and shall retain the information for five years:

1. The location, by either street address or latitude and longitude, of each site on which septage is applied.

2. The number of acres in each site on which septage is applied.

3. The date and time septage is applied to each site.

4. The rate, in gallons per acre per 365-day period, at which septage is applied to each site.

5. A description of how the vector attraction reduction requirements are met.

6. The following certification statement shall be provided with the records when the records are requested by the department:

"I certify, under penalty of law, that the pathogen requirements and the vector attraction reduction requirements have been met. I am aware that there are significant penalties for false certification including the possibility of fine and imprisonment."

(5) Other methods of stabilization may be acceptable if shown to be equivalent to 69.17(1)"c"(3)"3."

d. Discharge (with owner approval) to a permitted sanitary landfill in accordance with 567--Chapters 102 and 103 and the following requirements:

(1) Stabilize the septage by adding and thoroughly mixing sufficient lime to produce a mixture with a pH of 12.

(2) Provide a minimum of two hours of contact time after mixing the lime with the septage prior to applying to the landfill.

(3) Dewater the septage.

(4) Obtain a special waste authorization permit from the department.

69.17(2) Commercial septic tank cleaners. Individual administrative authorities shall enforce the licensing program for commercial septic tank cleaners in accordance with the requirements of 567--Chapter 68.

567--69.18(455B) Alternative or innovative on-site wastewater treatment and disposal systems.

69.18(1) Design requirements. Alternative or innovative systems are to be designed and operated in accordance with approved standards and operating procedures established by individual administrative authorities.

a. Plans and specifications, meeting all applicable rule requirements, should be prepared and submitted to the administrative authorities by a licensed professional engineer. Included with the engineering submittal should be adequate supporting data relating to the effectiveness of the proposed system.

b. For systems designed to discharge treated effluent into waters of the state, it will be necessary to obtain a Notice of Intent to fall under the requirements of NPDES General Permit No. 4. The administrative authority is responsible for determining that the requirements of the permit are met including the monitoring program.

c. Administrative authorities should prepare for signature an enforceable agreement to be placed on record which would require that present and future system owners meet all applicable rule requirements. In the event of noncompliance, the administrative authority shall require that adequate steps be taken by the system owner to bring the system into compliance.

d. Wastewater management districts may be formed for the purpose of providing specialized control of on-site wastewater treatment and disposal systems located in certain problem areas or in intensive development areas. Formation of such wastewater management districts shall be coordinated under the guidance of the administrative authority and shall meet all applicable rule requirements.

69.18(2) Reserved.

567--69.19(455B) Variances. Variances to these rules may be granted by the department of natural resources or the administrative authority provided sufficient information is submitted to substantiate the need and propriety for such action. Applications for variances and justification shall be in writing and copies filed with the department.

These rules are intended to implement Iowa Code chapter 455B, division III, part 1.

Appendix A
Estimates of Nonhousehold Domestic Sewage Flow Rates







Gallons per day per unit










Average


Maximum
Source of use for
sewage unit
(units)




(Secondary treatment unit sizing)


(Septic tank)
Dwelling units









Hotels or luxury motels
(Each guest)




50


60

(Add per employee)




11


13
or
(Per square foot)




0.26


0.3
Discount motels
(Each guest)




30


40

(Add per employee)




11


13
or
(Per square foot)




0.22


0.46
Rooming house
(Each resident)




40


50

(Add per nonresident meal)




2.5


4.0
Commercial/Industrial









Retail stores
(Per square foot of sales area)




0.1


0.15
or
(Each customer)




2.5


5

(Plus each employee)




11


15
or
(Each toilet room)




530


630
Offices
(Each employee)




15


18
or
(Per square foot)




0.1


0.25
Medical offices
(Per square foot)




0.6


1.6
Industrial buildings






(Each employee)
15
20
(Does not include process ware or cafeteria)









Construction camp






(Each employee)
15
20
Visitor center






(Each visitor)
5
20
Laundromat






(Each machine)
580
690
or






(Each load)
50
50
or






(Per square foot)
2.2
2.9
Barber shops






(Per chair)
55
80
Beauty shops






(Per station)
270
300
Car washes






(Per inside square foot)
5
10
(Does not include car wash water)









Eating and Drinking Establishments









Restaurant






(Per meal)
2.5
4.0
(Does not include bar or lounge)









or






(Each seat)
24
40







(Plus add for each employee)
11
13
Dining hall






(Per meal)
2.5
4.0
Coffee shop






(Each customer)
2.0
2.5







(Add per employee)
11
13
Cafeteria






(Each customer)
2.0
2.5







(Add per employee)
11
13
Drive-in






(Per car stall)
110
145
Bar or lounge






(Each customer)
2.0
5.5







(Add per employee)
13
16
or






(Per seat)
32
40
Country clubs (no meals)






(Per member)
22
22
or






(Per member) (Meals and showers)
105
130
or






(Per member in residence)
75
100
Resorts









Housekeeping cabin






(Per person)
42
50







Gallons per day per unit










Average


Maximum
Source of use for
sewage unit
(units)




(Secondary treatment unit sizing)


(Septic tank)
Lodge






(Per person)
53
74
Parks/swimming pools






(Per guest)
10
13
Picnic parks with toilet only






(Per guest)
5
10
Movie theaters






(Per guest)
2.5
4.0
Drive-in theaters






(Per space)
3
5
Skating rink/dance hall






(Per customer)
7
10
Bowling lanes






(Per lane)
133
200
Transportation









Airport, bus or rail depot






(Per passenger)
2.5
4
or






(Per square foot)
3.33
6.5
or






(Per public restroom)
500
630
Auto service station






(Each vehicle served)
11
13







(Add per employee)
13
16
or






(Per inside square foot)
0.25
0.6
or






(Per public restroom)
500
630
Institutional









Hospitals






(Each medical bed)
175
250







(Add per employee)
10
16
Mental institution






(Each bed)
105
175







(Add per employee)
10
16
Prison or jail






(Each inmate)
120
160







(Add per employee)
10
16
Nursing home






(Each resident)
93
145







(Add per employee)
10
16
Schools and churches









School



(Per student) (No gym, cafeteria or showers)



10
17







(Per student) (Cafeteria only)
16
17




(Per student) (Cafeteria, gym & showers)



20
30
Boarding school






(Per student)
75
115
Churches






(Per member)
0.14
0.86







(Add for each kitchen meal)
1
1







(Add per Sunday School student)
0.14
0.86
Recreational









Campground/with hookups






(Per person)
32
40
or






(Per site with central bath)
100
100







(Per site)
50
75







(Add for dump station w/hookup)
13
16
Day camp (no meals)






(Per person)
13
16
YMCA/YWCA






(Per member)
33
33

Appendix B

Percolation Test Procedure

(1) A minimum of three test holes distributed evenly over the proposed lateral field is required.

(2) Percolation test holes shall be 4 to 12 inches in diameter and to the same depth as the proposed absorption trenches (not to exceed 36 inches in depth).

(3) Sides and bottoms of the test holes shall be scratched or roughened to provide a natural surface. All loose material shall be removed from each hole.

(4) The bottoms of the test holes shall be covered with approximately 2 inches of rock to protect the bottom from scouring action when the water is added.

(5) The hole shall be filled with at least 12 inches of clean water and this depth shall be maintained for at least 4 hours and preferably overnight if clay soils are present. It is important that the soil be allowed to soak for a sufficiently long period of time to allow the soil to swell if accurate results are to be obtained.

(6) In sandy soils with little or no clay, soaking is not necessary. If, after filling the hole twice with 12 inches of water, the water seeps completely away in less than 10 minutes, the test can proceed immediately.

(7) Except for sandy soils, percolation rate measurements should be made at least 4 hours but no more than 24 hours after the soaking period began. Any soil that sloughed into the hole during the soaking period is removed and the water level is adjusted to 6 inches above the gravel (or 8 inches above the bottom of the hole). At no time during the test is the water level allowed to rise more than 6 inches above the gravel.

(8) Immediately after adjustment, the water level is measured from a fixed reference point to the nearest 1/8 inch at 30-minute intervals. The test is continued until two successive water level drops do not vary by more than 1/8 inch. At least three measurements are made.

(9) After each measurement, the water level is readjusted to the 6-inch level. The last water level drop is used to calculate the percolation rate.

(10) In sandy soils or soils in which the first 6 inches of water added after the soaking period seeps away in lessthan 30 minutes, water level measurements are made at 10-minute intervals for a 1-hour period. The last water level drop is used to calculate percolation rate.

(11) The percolation rate is calculated for each test hole by dividing the time interval used between measurements by the magnitude of the last water level drop. This calculation results in a percolation rate in terms of minutes per inch. To determine the percolation rate for the area, the rates obtained from each hole are averaged. (If tests in the area vary by more than 20 minutes per inch, variations in soil type are indicated. Under these circumstances, percolation rates should not be averaged.) EXAMPLE: If the last measured drop in water level after 30 minutes is 5/8 inch, the percolation rate = (30 minutes)/(5/8 inch) = 48 minutes/inch.

ARC 7654A

ENVIRONMENTAL PROTECTION COMMISSION[567]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 455G.18, the Environmental Protection Commission gives Notice of Intended Action to amend Chapter 134, "Registration of Groundwater Professionals," Iowa Administrative Code.

The proposed amendments are intended to change the title of the chapter by removing "Registration" and replacing it with "Certification" and to remove the June 10, 1991, date requirement for meeting the five years of experience and training in order to initially qualify for certification. The requirement for having the five years of experience by June 10, 1991, was removed by 1997 Iowa Acts, Senate File 75.

Any interested person may make written suggestions or comments on these proposed amendments on or before December 9, 1997. Such written materials should be directed to Keith Bridson, Iowa Department of Natural Resources, Wallace State Office Building, 900 East Grand Avenue, Des Moines, Iowa 50319-0034, fax (515)281-7212, or E-mail at kbridso@max.state.ia.us.

There will be no public hearings on these proposed amendments.

These amendments may have an impact on small businesses as provided in Iowa Code section 17A.31.

These proposed amendments are intended to implement Iowa Code section 455G.18.

The following amendments are proposed.

ITEM 1. Amend the title to 567--Chapter 134 to read as follows:

REGISTRATION CERTIFICATION
OF GROUNDWATER PROFESSIONALS

ITEM 2. Amend subrule 134.2(2), paragraph "f," as follows:

f. Any person with five years of direct or related experience and training as a groundwater professional or in the field of earth sciences as of June 10, 1991. This must include a minimum of at least two years of education and training, and two years of experience as a groundwater professional.

ARC 7656A

HUMAN SERVICES DEPARTMENT[441]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 249A.4 and 1997 Iowa Acts, Senate File 516, section 5, subsection 3, the Department of Human Services proposes to amend Chapter 40, "Application for Aid," Chapter 41, "Granting Assistance," and Chapter 75, "Conditions of Eligibility," appearing in the Iowa Administrative Code.

These amendments exempt all educational funds as income and as a resource when determining Family Investment Program (FIP) eligibility or benefit amount and Family Medical Assistance Program (FMAP)-related Medicaid coverage group eligibility.

Currently, the Department only exempts educational funds obtained from programs administered by the U.S. Secretary of Education but counts educational funds from other programs. When a client has a combination of exempt and also nonexempt educational funds, any allowable educational expenses the student may have are offset first against the educational income that is exempt. Any remaining expenses are then offset against the countable educational funds. As a result, even though the source of the educational funds in itself renders the funds exempt, by deducting educational expenses from these funds first, the exempt funds are, in fact, used in the eligibility and benefit determination. However, recent litigation in another program has raised an issue in the Family Investment Program and FMAP-related Medicaid Program. Amendments to the Higher Education Act of 1965 may prohibit the use of educational funds obtained from programs under the Secretary of Education in any calculation to determine FIP eligibility or benefit amount and FMAP-related Medicaid eligibility. The Department is proposing these amendments to eliminate any possibility of litigation or incorrect policy.

The Department has the option to still consider educational funds from programs other than those under the Secretary of Education to determine FIP eligibility and benefit amount and FMAP-related Medicaid eligibility. However, by eliminating the exempt educational funds from the eligibility and benefit calculation, little, if any, countable income will most likely remain. Determining countable educational income is a very complicated and error-prone process. Considering the very low number of FIP participants who are students with countable educational income, there seems to be little, if any, purpose in performing the required complex calculation. Also, better education will lead to better-paying jobs. Supporting clients' efforts at improving their marketable skills that will increase their opportunities for gainful employment is in line with the Department's philosophy on welfare reform.

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 December 10, 1997.

These amendments are intended to implement Iowa Code section 249A.4 and 1997 Iowa Acts, Senate File 516, sections 3 and 8.

The following amendments are proposed.

ITEM 1. Amend subrule 40.27(1), paragraph "a," subparagraph (3), as follows:

(3) The assistance unit contains any member receiving nonexempt unearned income, the source or amount of which is expected to change more often than once annually, unless the income is from job insurance benefits, or interest oreducational income as described in 441--paragraph 41.27(1)"d"; or unless the assistance unit's adult members are 60 years old or older, or are receiving disability or blindness payments under Titles I, II, X, XIV, or XVI of the Social Security Act; or unless all adults, who would otherwise be members of the assistance unit, are receiving supplemental security income including state supplementary assistance.

ITEM 2. Amend rule 441--41.27(239) as follows:

Amend subrule 41.27(1) by rescinding and reserving paragraphs "d" and "e."

Amend subrule 41.27(6) by rescinding paragraph "r" and inserting the following new paragraph in lieu thereof:

r. All earned and unearned educational funds of an undergraduate or graduate student. Any extended social security benefits received by a parent or nonparental relative as defined at subrule 41.22(3), conditional to school attendance, shall be exempt.

Further amend subrule 41.27(6) by rescinding and reserving paragraph "s."

Amend subrule 41.27(9) by rescinding and reserving paragraph "g."

ITEM 3. Amend subrule 75.52(1), paragraph "a," subparagraph (3), as follows:

(3) The assistance unit contains any member receiving nonexempt unearned income, the source or amount of which is expected to change more often than once annually, unless the income is from job insurance benefits, or interest or educational income as described in paragraph 75.57(1)"b,"; or unless the assistance unit's adult members are 60 years old or older, or are receiving disability or blindness payments under Titles I, II, X, XIV, or XVI of the Social Security Act; or unless all adults, who would otherwise be members of the assistance unit, are receiving supplemental security income (SSI) including state supplementary assistance (SSA).

ITEM 4. Amend rule 441--75.57(249A) as follows:

Amend subrule 75.57(1) by rescinding and reserving paragraphs "b" and "c."

Amend subrule 75.57(6) by rescinding paragraph "r" and inserting the following new paragraph in lieu thereof:

r. All earned and unearned educational funds of an undergraduate or graduate student. Any extended social security benefits received by a parent or nonparental relative as defined at subrule 75.55(1), conditional to school attendance, shall be exempt.

Further amend subrule 75.57(6) by rescinding and reserving paragraph "s."

Amend subrule 75.57(9) by rescinding and reserving paragraph "g."

ARC 7657A

HUMAN SERVICES DEPARTMENT[441]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 249A.4, the Department of Human Services proposes to amend Chapter 78, "Amount, Duration and Scope of Medical and Remedial Services," and Chapter 79, "Other Policies Relating to Providers of Medical and Remedial Care," appearing in the Iowa Administrative Code.

These amendments revise Medicaid reimbursement policies for chiropractors.

Under current policy Medicaid only pays chiropractors for manual manipulation of the spine. In 1997, the American Medical Association expanded the procedural code for chiropractors for manual manipulation of the spine from one to three codes, based on the area of the spine being manipulated. Medicare has predicted a 15 percent increase in chiropractic reimbursement with implementation of the new codes. These amendments adopt the new procedural codes.

In order to maintain budget neutrality, these amendments also restrict payment for manual manipulation of the spine to manipulations done for the purpose of correcting a subluxation demonstrated by X-ray which has resulted in a neuromusculoskeletal condition as defined below. Subluxation means an incomplete dislocation, off-centering, misalignment, fixation, or abnormal spacing of the vertebrae. No other diagnostic or therapeutic service furnished by a chiropractor is covered under the Medicaid program.

The subluxation must have resulted in a neuromusculo-skeletal condition for which chiropractic manipulative therapy (CMT) is appropriate treatment. The symptoms must be directly related to the subluxation that has been diagnosed. The mere statement or diagnosis of "pain" is not sufficient to support the medical necessity of CMT. CMT must have a direct therapeutic relationship to the patient's condition. The neuromusculoskeletal conditions generally require either short-term, moderate-term, or longer-term CMT depending on the category of the neuromusculoskeletal condition. If the CMT utilization guidelines are exceeded, documentation supporting the medical necessity of additional CMT must be submitted with the Medicaid claim form or the claim will be denied for failure to provide information.

The Iowa Chiropractic Society has been involved in the development of these rules.

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 December 10, 1997.

These amendments are intended to implement Iowa Code section 249A.4.

The following amendments are proposed.

ITEM 1. Rescind rule 441--78.8(249A) and insert the following new rule in lieu thereof:

441--78.8(249A) Chiropractors.

78.8(1) Covered services. Chiropractic manipulative therapy (CMT) eligible for reimbursement is specifically limited by Medicaid to the manual manipulation (i.e., by use of the hands) of the spine for the purpose of correcting a subluxation demonstrated by X-ray. Subluxation means an incomplete dislocation, off-centering, misalignment, fixation, or abnormal spacing of the vertebrae.

78.8(2) Indications and limitations of coverage.

a. The subluxation must have resulted in a neuromusculoskeletal condition set forth in the table below for which CMT is appropriate treatment. The symptoms must be directly related to the subluxation that has been diagnosed. The mere statement or diagnosis of "pain" is not sufficient to support the medical necessity of CMT. CMT must have a direct therapeutic relationship to the patient's condition. No other diagnostic or therapeutic service furnished by a chiropractor is covered under the Medicaid program.

ICD-9

CATEGORY I
ICD-9
CATEGORY II
ICD-9
CATEGORY III
307.81
Tension headache
353.0
Brachial plexus lesions
721.7
Traumatic spondylopathy
721.0
Cervical spondylosis without myelopathy
353.1
Lumbosacral plexus lesions
722.0
Displacement of cervical intervertebral disc without myelopathy
721.2
Thoracic spondylosis without myelopathy
353.2
Cervical root lesions, NEC
722.10
Displacement of lumbar intervertebral disc without myelopathy
721.3
Lumbosacral spondylosis without myelopathy
353.3
Thoracic root lesions, NEC
722.11
Displacement of thoracic intervertebral disc without myelopathy
723.1
Cervicalgia
353.4
Lumbosacral root lesions, NEC
722.4
Degeneration of cervical intervertebral disc
724.1
Pain in thoracic spine
353.8
Other nerve root and plexus disorders
722.51
Degeneration of thoracic or thoracolumbar intervertebral disc
724.2
Lumbago
719.48
Pain in joint (other specified sites, must specify site)
722.52
Degeneration of lumbar or lumbosacral intervertebral disc
724.5
Backache, unspecified
720.1
Spinal enthesopathy
722.81
Post laminectomy syndrome, cervical region
784.0
Headache
722.91
Calcification of intervertebral cartilage or disc, cervical region
722.82
Post laminectomy syndrome, thoracic region


722.92
Calcification of intervertebral cartilage or disc, thoracic region
722.83
Post laminectomy syndrome, lumbar region


722.93
Calcification of intervertebral cartilage or disc, lumbar region
724.3
Sciatica


723.0
Spinal stenosis in cervical region




723.2
Cervicocranial syndrome




723.3
Cervicobrachial syndrome




723.4
Brachial neuritis or radiculitis, NOC




723.5
Torticollis, unspecified




724.01
Spinal stenosis, thoracic region




724.02
Spinal stenosis, lumbar region




724.4
Thoracic or lumbosacral neuritis or radiculitis




724.6
Disorders of sacrum, ankylosis




724.79
Disorders of coccyx, coccygodynia




724.8
Other symptoms referable to back, facet syndrome




729.1
Myalgia and myositis, unspecified




729.4
Fascitis, unspecified




738.40
Acquired spondylolisthesis




756.12
Spondylolisthesis




846.0
Sprains and strains of sacroiliac region, lumbosacral (joint; ligament)




846.1
Sprains and strains of sacroiliac region, sacroiliac ligament




846.2
Sprains and strains of sacroiliac region, sacrospinatus (ligament)




846.3
Sprains and strains of sacroiliac region, sacrotuberous (ligament)




846.8
Sprains and strains of sacroiliac region, other specified sites of sacroiliac region




847.0
Sprains and strains, neck




847.1
Sprains and strains, thoracic




847.2
Sprains and strains, lumbar




847.3
Sprains and strains, sacrum




847.4
Sprains and strains, coccyx


b. The neuromusculoskeletal conditions listed in the table in paragraph "a" generally requires either short-,moderate-, or long-term CMT. A diagnosis or combination of diagnoses within Category I generally requires short-term CMT of 12 per 12-month period. A diagnosis or combination of diagnoses within Category II generally requiresmoderate-term CMT of 18 per 12-month period. A diagnosis or combination of diagnoses within Category III generally requires long-term CMT of 24 per 12-month period. For diagnostic combinations between categories, 28 CMTs are generally required per 12-month period. If the CMT utilization guidelines are exceeded, documentation supporting the medical necessity of additional CMT must be submitted with the Medicaid claim form or the claim will be denied for failure to provide information.

c. CMT is not a covered benefit when:

(1) The maximum therapeutic benefit has been achieved for a given condition.

(2) There is not a reasonable expectation that the continuation of CMT would result in improvement of the patient's condition.

(3) The CMT seeks to prevent disease, promote health and prolong and enhance the quality of life.

78.8(3) Documenting X-ray. An X-ray must document the primary regions of subluxation being treated by CMT. CMT of additional regions of subluxation without a documenting X-ray will be allowed only if the additional regions of subluxation are reasonably related to the primary regions of subluxation. The clinical records must clearly document the relationship of the additional regions of subluxation to the primary regions of subluxation.

The documenting X-ray must be taken at a time reasonably proximate to the initiation of CMT. An X-ray is considered to be reasonably proximate if it was taken no more than 12 months prior to or 3 months following the initiation of CMT. X-rays need not be repeated unless there is a new condition. No X-ray is required for pregnant women and children aged 18 and under.

The X-ray films shall be labeled with the patient's name and date the X-rays were taken and shall be marked right or left. The X-ray shall be made available to the department or its duly authorized representative when requested. A written and dated X-ray report, including interpretation and diagnosis, shall be present in the patient's clinical record.

This rule is intended to implement Iowa Code section 249A.4.

ITEM 2. Amend subrule 79.1(2), provider category of Chiropractors, as follows:

Provider category

Basis of

reimbursement

Upper limit
Chiropractors
Fee schedule
Fee schedule in effect 6/30/90 plus 2% 2/1/98
ARC 7666A

LABOR SERVICES DIVISION[875]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 sections 17A.3, 89.5, and 252J.8, the Labor Commissioner hereby gives Notice of Intended Action to rescind 347--Chapters 41, 42, and 49; adopt 875--Chapters 200 to 203; and transfer 347--Chapters 43 to 48 to 875--Chapters 204 to 209, Iowa Administrative Code.

These amendments relating to boilers and pressure vessels implement Iowa Code sections 89.3, 89.5, and 252J.8 and 1997 Iowa Acts, House File 399, section 1; reorganize and renumber certain rules; delete, amend, and adopt numerous definitions; require applicants for special inspector commissions to complete, sign and submit the application form available from the division of labor; make technical and editing corrections; change references to match updated and current standards; allow disciplinary action against special inspectors based upon their failure to maintain a valid work card from the National Board of Boiler and Pressure Vessel Inspectors and for obtaining or retaining, or attempting to obtain or retain, a special inspector's commission through the use of fraud or deceit; change the fee schedule; require special inspectors to provide to the insured a copy of the inspection report; require special inspectors to list all adverse conditions and requirements on their reports; and adopt updated national requirements for new installations of boilers and pressure vessels.

If requested by December 9, 1997, a public hearing will be held on December 11, 1997, at 3 p.m. at 1000 E. Grand Avenue, Des Moines, Iowa. Any interested person will be given the opportunity to make oral or written submissions concerning the proposed amendments. Written data or arguments to be considered in adoption may be submitted to the Deputy Labor Commissioner, Division of Labor Services, 1000 E. Grand Avenue, Des Moines, Iowa 50319-0209, no later than December 11, 1997.

The Division has determined that this Notice of Intended Action may have an impact on small business. These amendments will not necessitate additional annual expenditures exceeding $100,000 by any political subdivision or agency.

The Division will issue a regulatory flexibility analysis as provided by Iowa Code section 17A.31 if a written request is filed by delivery or by mailing postmarked no later than December 10, 1997, to the Deputy Labor Commissioner, Division of Labor Services, 1000 E. Grand Avenue, Des Moines, Iowa 50319-0209. The request may be made by the Administrative Rules Review Committee, the Governor, a political subdivision, at least 25 persons who qualify as a small business under the Administrative Procedure Act, or an organization of small businesses representing at least 25 persons which is registered with the Division of Labor Services under the Administrative Procedure Act.

These amendments are intended to implement Iowa Code chapters 89 and 252J and 1997 Iowa Acts, House File 399.

The following amendments are proposed.

ITEM 1. Rescind 347--Chapter 41 and adopt new 875--Chapter 200 in lieu thereof:

CHAPTER 200

GENERAL

875--200.1(89) Purpose. These rules institute administrative and operational procedures for implementation of Iowa Code chapter 89.

875--200.2(89,252J) Definitions. The definitions in this chapter, to the extent they do not conflict with the definitions contained in Iowa Code chapter 89, shall be applicable to the rules contained in 875--Chapters 200 to 209.

"Alteration" means a change in a boiler or pressure vessel that substantially alters the original design requiring consideration of the effect of the change on the original design. It is not intended that the addition of nozzles smaller than an unreinforced opening size will be considered an alteration.

"ANSI/API510" means the Recommended Practice for Inspection, Repair, and Rating of Pressure Vessels in Petroleum Refining Service as published by the American Petroleum Institute, Inspection Code, ANSI/API510-1992 with 1994 addendum.

"ANSI/ASME CSD-1" means Control and Safety Devices for Automatically-Fired Boilers.

"ASME" means the American Society of Mechanical Engineers.

"Authorized inspector" means a special inspector or an inspector of boilers and pressure vessels employed by the division.

"BSI" means British Standards Institute.

"Certificate of noncompliance" means a certificate of noncompliance with child support payment obligations issued by the child support recovery unit, department of human services, pursuant to Iowa Code chapter 252J.

"CNS" means Canadian National Standards.

"Construction or installation code" means the applicable recognized national or international standard for construction or installation in effect at the time of installation such as American Society of Mechanical Engineers (ASME), German Institute of Standards (DIN), British Standards Institute (BSI), Japanese Industrial Standards (JIS) or Canadian National Standards (CNS).

"DIN" means German Institute of Standards.

"Division" means the division of labor services, unless another meaning is clear from the context.

"Electric boilers" means a power boiler, heating boiler, high or low temperature water boiler in which the source of heat is electricity.

"External inspection" means as complete an examination as can be reasonably made of the external surfaces and safety devices while the boiler or pressure vessel is in operation.

"High temperature water boiler" means a water boiler intended for operations at pressures in excess of 160 psig or temperatures in excess of 250 degrees F.

"Hot water heating boiler" means a boiler in which no steam is generated, from which hot water is circulated for heating purposes and then returned to the boiler, and which operates at a pressure not exceeding 160 psig or a temperature of 250 degrees F at the boiler outlet.

"Hot water supply boiler" means a boiler completely filled with water that furnishes hot water to be used externally to itself at pressures not exceeding 160 psig or at temperatures not exceeding 250 degrees F.

"Internal inspection" means as complete an examination as can be reasonably made of the internal and external surfaces of a boiler or pressure vessel while it is shut down and while manhole plates, handhole plates or other inspection opening closures are removed as required by the inspector.

"ISO" means International Standards Organization.

"JIS" means Japanese Industrial Standards.

"Labor commissioner" means the labor commissioner or the commissioner's designee.

"Lap seam crack" means a crack found in lap seams, extending parallel to the longitudinal joint and located either between or adjacent to rivet holes.

"Major repair" means a repair which affects or will affect the strength of a boiler or pressure vessel.

"National Board" means the National Board of Boiler and Pressure Vessel Inspectors, 1055 Crupper Avenue, Columbus, Ohio 43229, whose membership is composed of the chief inspectors of jurisdictions who are charged with the enforcement of the provisions of local boiler codes.

"National Board Inspection Code" means the Manual for Boiler and Pressure Vessel Inspectors (ANSI/NB 23) published by the National Board. Copies of the code may be obtained from the National Board.

"New boiler installations" means all boilers constructed, installed and placed in operation after July 1, 1959, and all hot water supply boilers installed and placed in operation after July 1, 1983.

"Nonstandard object" means an object or related equipment that has not been designed and manufactured to a recognized national or international standard such as ASME, DIN, BSI, JIS or CNS, and has not been inspected by an inspector commissioned by the National Board and registered with the National Board.

"Nuclear power plant components" means items constructed in accordance with the rules of Section III, ASME Boiler and Pressure Vessel Code, for use in, or containment of, portions of a nuclear power system. A nuclear power system is that system which serves the purpose of producing and controlling the output of thermal energy from nuclear fuel and those associated systems essential to the functions and overall safety of the nuclear power system.

"Object" means a boiler or pressure vessel.

"Pressure vessel" means a vessel in which pressure is obtained from an external source, or by the application of heat from an indirect or direct source.

"Process steam generator" means a vessel or system of vessels comprised of one or more drums and one or more heat exchange surfaces as used in waste heat or heat recovery type steam boilers.

"Psig" means pounds per square inch gage.

"Reinstalled boiler or pressure vessel" means an object removed from its original setting and reinstalled at the same location or at a new location.

"Relief valve" means an automatic pressure-relieving device actuated by a static pressure upstream of the valve which opens further with the increase in pressure over the opening pressure. It is used primarily for liquid service.

"Repair" means work necessary to return a boiler or pressure vessel to a safe operating condition.

"Rupture disk device" means a nonreclosing pressure-relief device actuated by inlet static pressure and designed to function by the bursting of a pressure-containing disk.

"Safety appliance" shall include, but not be limited to:

1. Rupture disk device;

2. Safety relief valve;

3. Safety valve;

4. Temperature limit control;

5. Pressure limit control;

6. Gas switch;

7. Air switch; or

8. Any major gas train control.

"Safety relief valve" means an automatic, pressure-actuated relieving device suitable for use as a safety or relief valve, depending on application.

"Safety valve" means an automatic, pressure-relieving device actuated by the static pressure upstream of the valve and characterized by full opening pop action. It is used for gas or vapor service.

"Special inspection" means an inspection which is not required by Iowa Code chapter 89.

"Temperature/pressure relief valve" means a valve set to relieve at a designated temperature and pressure.

"Unfired steam boiler" means a vessel or system of vessels intended for operation at a pressure in excess of 15 psig for the purpose of producing and controlling an output of thermal energy.

"Water heater supply boiler" means a closed vessel in which water is heated by combustion of fuels, electricity or any other source and withdrawn for use external to the system at pressure not exceeding 160 psig and shall include all controls and devices necessary to prevent water temperatures from exceeding 210 degrees F.

875--200.3(89) Publications available for review. Pursuant to Iowa Code section 89.5, subsection 4, the standards, codes, and publications adopted by reference in these rules are available for review in the office of the Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa.

875--200.4(89) Fees.

200.4(1) Special inspector certification fee. A $30 fee shall be paid annually to the commissioner to obtain a special inspector certification obtained pursuant to Iowa Code section 89.7, subsection 1.

200.4(2) Certificate fee. A $15 fee shall be paid for each one-year certificate and a $25 fee shall be paid for each two-year certificate.

200.4(3) Fees for inspection. An inspection fee for each object inspected by a division inspector shall be paid by the appropriate party as follows:

a. A $20 fee for each water heater supply boiler.

b. A $35 fee for each boiler, other than a water heater supply boiler, having a working pressure to and including 70 pounds per square inch.

c. A $40 fee for each boiler, other than a water heater supply boiler, having a working pressure in excess of 70 pounds to and including 150 pounds per square inch.

d. A $60 fee for each boiler, other than a water heater supply boiler, having a working pressure in excess of 150 pounds to and including 450 pounds per square inch or generating between 20,000 and 100,000 pounds of steam per hour.

e. A $100 fee for each boiler, other than a water heater supply boiler, having a working pressure in excess of 450 pounds per square inch and generating in excess of 100,000 pounds of steam per hour.

f. A $20 fee for each pressure vessel, such as steam stills, tanks, jacket kettles, sterilizers and all other reservoirs having a working pressure from 15 pounds to and including 70 pounds per square inch.

g. A $23 fee for each pressure vessel, such as steam stills, tanks, jacket kettles, sterilizers and all other reservoirs having a working pressure from 71 pounds to and including 150 pounds per square inch.

h. A $25 fee for each pressure vessel, such as steam stills, tanks, jacket kettles, sterilizers and all other reservoirs having a working pressure from 150 pounds to and including 450 pounds per square inch.

i. A $28 fee for each pressure vessel, such as steam stills, tanks, jacket kettles, sterilizers and all other reservoirs having a working pressure in excess of 450 pounds per square inch.

j. In addition to the applicable object's inspection fee, if the division cannot follow normal practice of scheduling inspections in a cost-effective manner due to a request by an owner or user for a customized schedule, or due to a failure of any special inspector to comply with applicable laws or rules, travel expenses may be charged at the discretion of the division.

k. Inspections and code qualification surveys made by the commissioner at the request of a boiler or tank manufacturer shall be charged at a rate set by the commissioner not to exceed the rate currently charged by the various insurance companies for performing a similar service. This charge shall not void the regular fee for inspection or certification when the boiler or tank is installed.

l. If a boiler or pressure vessel has to be reinspected through no fault of the division, there shall be another inspection fee as specified above. However, there shall be no fee charged for the first scheduled reinspection to verify that ordered repairs have been made.

m. If the division is required to inspect a boiler or pressure vessel due to the failure of a special inspector to comply with any applicable law or rules, the insurance company which employs the special inspector shall be charged $100 per inspection, plus travel expenses as described in subrule 200.4(3), paragraph "j."

200.4(4) Fees for attempted inspections. A $20 fee shall be charged for each attempt by a division inspector to conduct an inspection which is not completed through no fault of the division.

875--200.5(89) Quality reviews, surveys and audits.

200.5(1) An entity that manufactures or repairs boilers, pressure vessels or related equipment may request quality reviews, surveys or audits from certifying organizations such as the ASME or the National Board. The division is authorized to conduct the quality reviews, surveys or audits. If the division performs the service, the manufacturer or repairer shall pay all applicable expenses as specified in 200.4(3), paragraph "j."

200.5(2) Quality reviews, surveys and audits for certification to the National Board or ASME standards shall be conducted only by a person or organization designated by the labor commissioner. Any person or organization seeking this designation on behalf of the division shall provide documented evidence of training, examination, experience, and certification for the type of reviews, surveys and audits to be performed. The labor commissioner shall have final authority to determine qualifications and designations.

a. Assessing quality programs. The division recognizes the ASME and the National Board as qualified designees for conducting quality reviews, surveys and audits which lead to ASME or National Board program certification.

b. ISO 9000 assessments. The division recognizes the ASME and the National Board as acceptable ISO 9000 registrars of quality systems for boilers and pressure vessels and the related pressure-technology equipment industry, and to certify auditors and lead auditors to the requirements of ISO 10011-2 1991(E), Annex A, for conducting ISO 9000 assessments for the boiler, pressure vessel, and related pressure-technology equipment industry.

These rules are intended to implement Iowa Code section 84A.2 and chapter 89.

ITEM 2. Rescind 347--Chapter 42 and adopt new 875--Chapter 201 in lieu thereof:

CHAPTER 201

INSPECTIONS AND CERTIFICATES

875--201.1(89) Inspections.

201.1(1) General. All boilers and pressure vessels covered by Iowa Code chapter 89 shall be inspected by a division inspector or special inspector within a 60-day period prior to the expiration date of an operating certificate. Modification of this period will be permitted only upon written application showing just cause for waiver of the 60-day period. Special inspections may be conducted at any time mutually agreed to by the division and the object's owner or user.

201.1(2) Inspections conducted by special inspectors. Special inspectors shall leave a copy of the completed report with the insured at the time of the inspection and shall submit reports to the division within 30 days of the inspection. The reports shall list all adverse conditions and requirements, if any. If the special inspector has not notified the division of the inspection results within 30 days of the expiration of an operating certificate, the division may conduct the inspection. If the division inspects a boiler or pressure vessel due to the failure of a special inspector to notify the division of the inspection results, the specified fees in subrule 200.4(3), paragraph "m," shall be paid by the insurance company which employs the special inspector.

201.1(3) Type of inspection. The inspection shall be an internal inspection when required; otherwise, it shall be as complete an external inspection as possible. An internal inspection of an unfired steam pressure vessel operating in excess of 15 pounds per square inch may be required by the commissioner when an inspector observes any deviation from these rules, Iowa Code chapter 89, or the construction or installation code, the National Board Inspection Code. Conditions including, but not limited to, the following may also be the basis for an internal inspection:

1. Visible metal or insulation discoloration due to excessive heat.

2. Visible distortion of any part of the pressure vessel.

3. Visible leakage from any pressure-containing boundary.

4. Any operating records or verbal reports of a vessel being subjected to pressure above the nameplate rating or temperature above or below the nameplate design temperature.

5. A suspected or known history of internal corrosion or erosion.

6. Evidence or knowledge of a vessel having been subjected to external heat from a resulting fire.

7. A welded repair not documented as required.

8. Personal injury, property damage accident, or malfunction affecting the pressure vessel's integrity.

875--201.2(89) Certificate. A certificate to operate shall not be issued until the boiler or pressure vessel complies with the applicable rules and all fees have been paid.

875--201.3(89) Preinspection owner or user preparation.

201.3(1) Preparation of objects. Each owner or user shall ensure that each object covered by Iowa Code chapter 89 is prepared for inspection pursuant to this rule.

201.3(2) Permit-required confined spaces (29 CFR 1910.146 in effect on July 1, 1997) and control of hazardous energy (lock-out/tag-out) (29 CFR 1910.147 in effect on July 1, 1997) compliance.

a. It is the responsibility of the owner or user to assess all objects for compliance with the confined space and lock-out/tag-out standards. If an object is a non-permit-required confined space or a permit-required confined space as defined by 29 CFR 1910.146, the owner or user must comply with all the requirements of 29 CFR 1910.146 and 1910.147 in preparing the object for inspection.

b. It is the duty of the owner or user to inform any inspector of the owner's or user's confined space policy and standards, supply to the inspector all information necessary to assess whether the confined space is safe for entry, and ensure all inspectors comply with the policy and Iowa occupational safety and health standards for confined space entry.

c. If the requirements of 29 CFR 1910.146 and 1910.147 are not met, the inspector shall not enter the space or, if there is a breach of the policy or standard, the inspection process shall cease until the space is reassessed and determined to be safe. It is the right of an inspector to verify any of the information supplied. No inspector shall violate the owner's or user's confined space or lock-out/tag-out policies in making an inspection.

d. The owner or user shall have all objects locked-out or tagged-out prior to entry for inspection or testing.

201.3(3) Hydrostatic tests. The owner or user shall prepare for and apply a hydrostatic test, whenever necessary, on the date specified by the division's inspector, which date shall be not less than seven days after the date of notification.

201.3(4) Boilers. A boiler shall be prepared for internal inspection in the following manner:

a. Water shall be drawn off and the boiler washed thoroughly.

b. Manhole and handhole plates, washout plugs and inspection plugs in water columns shall be removed as required by the inspector. The furnace and combustion chambers shall be thoroughly cooled and cleaned.

c. All grates of internally fired boilers shall be removed.

d. Brickwork shall be removed as required by the inspector in order to determine the condition of the boiler, header, furnace, supports or other parts.

e. If it is found that steam or hot water is leaking into a boiler or unfired pressure vessel when opened for inspection, the source of the leakage shall be disconnected, if necessary, to eliminate the steam or hot water from the boiler or pressure vessel to be inspected.

f. Before opening the manhole or handhole plates and entering any parts of the steam-generating unit connected to the common header with other boilers, the nonreturn and steam stop valves must be closed, tagged, and locked. Drain valves between the two valves must be opened. Blowoff lines, where practicable, shall be disconnected between pressure parts and valves. All drains and vent lines shall be opened.

g. Low water fuel cutoff controls shall be opened or removed to allow for visual inspection.

201.3(5) Pressure vessels. The extent of inspection preparation for a pressure vessel will vary. If the inspection is to be external only, advance preparation is not required other than to afford reasonable access to the vessel. For combined internal and external inspections of small vessels of simple construction handling air, steam, nontoxic or nonexplosive gases or vapors, minor preparation is required including isolating the vessel from its source of pressure, affording reasonable means of access and removing manhole plates and inspection opening closures. In other cases, preparation shall include draining, venting and purging the vessel to free toxic, explosive or other harmful gases or vapors, providing suitable safeguards to prevent leakage or accidental inflow of harmful substances into the vessel, removing manhole plates and inspection opening closures, cooling and cleaning the interior of the vessel and removing the internal fittings and appurtenances to permit satisfactory inspection of the interior of the vessel.

201.3(6) Removal of covering or brickwork to permit inspection. If the object is jacketed so that the longitudinal seams of shells, drums, or domes cannot be seen, sufficient jacketing, setting wall, or other form of casing or housing shall be removed to permit reasonable inspection of the seams and so that the size of rivets, pitch of the rivets, and other data necessary to determine the safety of the object may be obtained, providing the information cannot be determined by other means. Brickwork shall be removed as required by the inspector in order to determine the condition of the boiler, header, furnace, supports or other parts.

201.3(7) Improper preparation for inspection. If an object has not been properly prepared for an internal inspection, or if the owner or user fails to comply with the requirements for hydrostatic tests as set forth in this chapter, the inspector may decline to make the inspection or test, and the inspection certificate shall be withheld until the owner or user complies with the requirements.

These rules are intended to implement Iowa Code chapter 89 and 1997 Iowa Acts, House File 399.

ITEM 3. Adopt new 875--Chapter 202 as follows:

CHAPTER 202

SPECIAL INSPECTORS

875--202.1(89) Commission. A special inspector shall obtain a commission from the labor commissioner. A commission shall be granted only to those persons holding a commission from the National Board. The commission is for no more than one year and ceases when the special inspector leaves employment with the insurance company, or when the commission is suspended or revoked by the labor commissioner. A person applying for a commission shall complete, sign, and submit to the division with the required fee the form entitled "Special Inspector Commission Application Boiler and Pressure Vessel Inspector" provided by the division. The special inspector shall notify the division at the time any of the information on the form or attachments changes. Additionally, the applicant shall submit a copy of the applicant's National Board Inspectors Commission with an initial application and a copy of the applicant's current National Board work card with each application. Each commission shall expire no later than June 30 of each year.

875--202.2(89) Denials. The labor commissioner may refuse to issue or renew a special inspector's commission for failure to complete an application package or for any reason listed in rules 202.4(89) to 202.6(89).

875--202.3(89) Investigations. Investigations shall take place at the time and in the places the labor commissioner directs. The labor commissioner may investigate for any reasonable cause. The labor commissioner may conduct interviews and utilize other reasonable investigatory techniques. Investigations may be conducted without prior notice.

875--202.4(89) Reasons for probation. The labor commissioner may issue a notice of commission probation where an investigation reasonably reveals the special inspector filed inaccurate reports.

875--202.5(89,252J) Reasons for suspension. The labor commissioner may issue a notice of commission suspension where an investigation reasonably reveals the following:

1. The special inspector failed to submit and report inspections on a timely basis;

2. The special inspector abused special inspector's authority;

3. The special inspector misrepresented self as a state inspector or a state employee;

4. The special inspector used commission authority for inappropriate personal gain;

5. The special inspector failed to follow the division's rules for inspection of object repairs, alterations, construction, installation, or in-service inspection;

6. The special inspector committed numerous violations as described in rule 202.4(89);

7. The special inspector used fraud or deception to obtain or retain, or attempt to obtain or retain, a special inspector commission whether for one's self or another;

8. The National Board revoked or suspended the special inspector's work card;

9. The division received a certificate of noncompliance; or

10. The special inspector failed to take appropriate disciplinary actions against a subordinate special inspector who has committed repeated acts or omissions listed in paragraphs "1" to "8" of this rule.

875--202.6(89,252J) Reasons for revocation. The labor commissioner may issue a notice of revocation of a special inspector's commission where an investigation reveals any of the following:

1. The special inspector filed a misleading, false or fraudulent report;

2. The special inspector failed to perform a required inspection;

3. The special inspector failed to file a report or filed a report which was not in accordance with the provisions of applicable standards;

4. The special inspector failed to notify the division in writing of any accident involving an object;

5. The special inspector committed repeated violations as described in rule 202.5(89,252J);

6. The special inspector used fraud or deception to obtain or retain, or attempt to obtain or retain, a special inspector commission whether for one's self or another;

7. The special inspector instructed, ordered, or otherwise encouraged a subordinate special inspector to perform the acts or omissions listed in paragraphs "1" to "6" of this rule;

8. The National Board revoked or suspended the special inspector's work card; or

9. The division received a certificate of noncompliance.

875--202.7(89) Notice of actions. The labor commissioner shall serve a notice on the special inspector by certified mail to an address listed on the commission application form or by other service as permitted by Iowa Code chapter 17A. A copy shall be sent to the insurance company employing the special inspector.

875--202.8(89) Contested cases. The special inspector shall have 20 days to file a written notice of contest with the labor commissioner. If the special inspector does not file a written contest within 20 days of receipt of the notice, the action stated in the notice shall automatically be effective.

875--202.9(89) Hearing procedures. The hearing procedures in rules in 347--Chapter 300 shall govern.

875--202.10(89) Emergency suspension. Pursuant to Iowa Code section 17A.18(3), if the labor commissioner finds that public health, safety or welfare imperatively requires emergency action because a special inspector failed to comply with applicable laws or regulations, the special inspector's commission may be summarily suspended.

875--202.11(89) Probation period. A special inspector may be placed on probation for a period not to exceed one year for each incident causing probation.

875--202.12(89) Suspension period. A special inspector's commission may be suspended up to five years for each incident causing a suspension.

875--202.13(89) Revocation period. A special inspector's commission which has been revoked shall not be reinstated for five years.

875--202.14(89,252J) Certificates of noncompliance. Rules 202.8(89) through 202.13(89) shall not apply in the event of revocation or suspension due to receipt of a certificate of noncompliance, and the procedures of Iowa Code section 252J.8 shall apply.

875--202.15(89) Concurrent actions. Multiple actions under rules 202.3(89) to 202.7(89) or 202.14(89,252J) may proceed at the same time against any special inspector.

These rules are intended to implement Iowa Code chapters 17A, 89, and 252J.

ITEM 4. Adopt new 875--Chapter 203 as follows:

CHAPTER 203

GENERAL REQUIREMENTS FOR ALL OBJECTS

875--203.1(89) Hydrostatic pressure tests. A hydrostatic pressure test, when applied to objects, shall not exceed 11/2 times the maximum allowable working pressure, less corrosion factor, as applicable. The pressure shall be under proper control so that in no case shall the required test pressure be exceeded by more than 2 percent. During a hydrostatic test involving pressures in excess of the lowest safety valve setting, the safety valve or valves shall be removed or each valve disk shall be held to its seat by means of a testing clamp and not by screwing down the compression screw upon the spring. Other safety devices that may be damaged shall be removed prior to applying a hydrostatic test. When a hydrostatic test is to be applied to existing installations, the pressure shall be as follows:

1. To determine tightness, the hydrostatic test pressure need be no greater than the set pressure of the safety valve having the lowest setting.

2. For safety tests, the pressure shall be equal to 2 times the maximum allowable working pressure, less corrosion factor, as applicable. All major repairs and alterations shall require a safety test.

875--203.2(89) Safety appliance. Any safety appliance required shall not be removed or tampered with except for the purpose of repair or inspection. An object shall not be operated unless all applicable safety appliances are properly functional and operational.

875--203.3(89) Pressure-reducing valves. Wherepressure-reducing valves are used, one or more relief or safety valves shall be provided on the low-pressure side of the reducing valve when the piping equipment on the low-pressure side does not meet the requirements for the full initial pressure. The relief or safety valves shall be located adjoining or as close as possible to the reducing valve. Proper protection shall be provided to prevent injury or damage caused by the escaping fluid from the discharge of relief or safety valves if vented to the atmosphere. The combined discharge capacity of the relief valves or safety valves shall be such that the pressure rating of the lower-pressure piping or equipment shall not be exceeded in case the reducing valve sticks open. If a bypass around the reducing valves is used, a safety valve is required on the low-pressure side and shall be of sufficient capacity to relieve all the fluid that can pass through the bypass without overpressuring the low-pressure side. A pressure gage shall be installed on the low-pressure side of a reducing valve.

875--203.4(89) Blowoff equipment. The blowdown from an object that enters a sanitary sewer system or blowdown which is considered a hazard to life or property shall pass through some form of blowoff equipment that will reduce pressure and temperature. The temperature of the water leaving the blowoff equipment shall not exceed 150 degrees F, and the pressure shall not exceed 5 psig. The blowoff piping and fittings between the object and the blowoff tank shall comply with the construction or installation code. All materials used in the fabrication of object blowoff equipment shall comply with the construction or installation code. All blowoff equipment shall be equipped with openings to facilitate cleaning and inspection.

875--203.5(89) Location of discharge piping outlets. The discharge from safety valves, safety relief valves, blowoff pipes and other outlets shall be so arranged that there will be no danger of scalding personnel. When the safety valve or temperature/pressure relief valve discharge is piped away from the object to the point of discharge, provision shall be made for properly draining the piping. The size and arrangement of discharge piping shall be such that any pressure that may exist or develop will not reduce the relieving capacity of the relieving devices below that capacity required to protect the object.

875--203.6(89) Piping and fitting requirements. No galvanic pipe or fittings may be used on any object. The minimum piping and fitting supplied on any object shall be schedule 40. The piping design must take into account the removal of material for mechanical joints such as threading or bolting, corrosion and erosion requirements, and the effects of hydrostatic head pressure. ASME B31.1 and ASME B31.9 (1995 with 1997 addenda) provide the applicable standards and calculations for piping design.

875--203.7(89) Electric steam generator.

203.7(1) A cable at least as large as one of the incoming power lines to the generator shall be permanently fastened to and provide grounding of the generator shell.

203.7(2) A suitable screen or guard shall be provided around high-tension bushings and a sign posted warning of high voltage. This screen or guard shall be so located that it will be impossible for anyone working around the generator to accidentally come in contact with the high-tension circuits.

203.7(3) All electrically heated boilers shall meet the applicable standards of the construction or installation code.

875--203.8(89) Alterations, retrofits and repairs to objects. Alterations, retrofits, and repairs shall be made so that the object shall be at least as safe as the original construction. Alterations, retrofits, and repairs not covered by these rules shall be done as though new construction and shall comply with the applicable code or codes. The appropriate National Board "R" form shall be filed with the division.

203.8(1) Welding. Repairs or alterations by welding shall be approved beforehand by an authorized inspector, and all welding repairs or alterations must be in accordance with the "Repairs and Alterations to Boilers and Pressure Vessels by Welding," Chapter III, National Board Inspection Code (1995 with 1997 addendum). All welding shall be done by an organization holding a National Board "R" stamp. The organization performing the repair or alteration is responsible for filing the appropriate National Board "R" form with the division.

The material used for patches shall be of the same general quality and have at least the minimum physical properties of the plate to be patched. The thickness of any patch shall be at least equal to the plate being patched. Flush-welded patches in unstayed shells, drums, or headers shall be radiographed and stress-relieved in accordance with the requirements of the construction or installation code.

203.8(2) Stress-relieving of alterations and repairs. Subject to the approval of the labor commissioner, peening or other methods of stress-relieving may be substituted for thermal stress-relieving. Flush-welded patches or new sections may be applied to stayed plates without limitations of size or plate thickness.

Threaded stays may be replaced by welded stays provided that in the judgment of the authorized inspector the plate adjacent to the staybolt has not been materially weakened by deterioration or wasting away. All material requirements of the applicable section of the construction or installation code governing welded stays shall be met except that stress-relieving other than thermal means may be used.

875--203.9(89) Boiler door latches. A watertube boiler shall have the firing doors of the inward opening type, unless such doors are provided with substantial and effective latching or fastening devices or otherwise so constructed as to prevent them when closed from being blown open by pressure on the furnace side. These latches or fastenings shall be of the positive, self-locking type. Friction contacts, latches, and bolts actuated by springs shall not be used. The foregoing requirements for latches or fastenings shall not apply to coal openings on downdraft or similar furnaces.

All other doors, except explosion doors, not used in the firing of the boiler may be provided with bolts or fastenings in lieu of self-locking latching devices. Explosion doors, if used and located in the setting walls within seven feet of the firing floor or operating platform, shall be provided with substantial deflectors to divert the blast.

875--203.10(89) Clearance. All objects shall be so located that adequate space is provided for the proper operation, inspection, and necessary maintenance and repair of the object and its appurtenances.

875--203.11(89) Ladders and runways. When necessary for safety, a steel runway platform of standard construction shall be installed across the tops of objects or at some other convenient level for the purpose of affording safe access. All runways shall have at least two means of exit remotely located from each other.

875--203.12(89) Exit from rooms containing objects. All rooms exceeding 500 square feet of floor area and containing one or more objects having a fuel-burning capacity of 1 million Btu's shall have two means of exit remotely located from each other on each level.

875--203.13(89) Air and ventilation. A permanent source of outside air shall be provided for each room to permit satisfactory combustion of fuel and ventilation if necessary under normal operations.

The minimum ventilation for coal, gas, or oil burners in rooms containing objects is based on the Btu's per hour, required air, and louvered area. The minimum net louvered area shall not be less than 1 square foot. The following table shall be used to determine the net louvered area in square feet:

INPUT(BTUs per hour)


MINIMUM AIRREQUIRED(cubic feet)

MINIMUMLOUVERED AREA(net square feet)
500,000

125

1.0
1,000,000

250

1.0
2,000,000

500

1.6
3,000,000

750

2.5
4,000,000

1,000

3.3
5,000,000

1,200

4.1
6,000,000

1,500

5.0
7,000,000

1,750

5.8
8,000,000

2,000

6.6
9,000,000

2,250

7.5
10,000,000

2,500

8.3

When mechanical ventilation is used, the supply of combustion and ventilation air to the objects and the firing device shall be interlocked with the fan so the firing device will not operate with the fan off. The velocity of the air through the ventilating fan shall not exceed 500 feet per minute and the total air delivered shall be equal to or greater than shown above.

875--203.14(89) Condensate return tank. Condensate return tanks shall be equipped with at least two vents or a vent and overflow pipe to protect against a loose float plugging a single connection.

875--203.15(89) Nuclear power plant components. Nuclear power systems shall be designed, manufactured, installed, stamped, inspected, repaired and maintained in accordance with the ASME Code, Section III, for the year of construction or installation.

875--203.16(89) Conditions not covered. For any condition or modification not covered by these rules, the ASME Code for New Installations (1995 with 1997 addenda) shall apply.

875--203.17(89) Stamping of Iowa identification number. All objects shall be stamped with an Iowa identification number followed by an "IA," the letters and figures to be not less than a height of 5/16 of an inch. Stamping of the Iowa identification number shall be located on steel objects below the ASME Code stamping. When construction of the object does not allow the direct stamping of an object, a metal tag the size of 1 inch by 21/2 inches shall be affixed to the object with the Iowa identification number. This tag shall be attached as closely as possible to the manufacturer's data plate of the object. For objects covered by Iowa Code chapter 89 which are unstamped, state inspectors and special inspectors shall assign numbers as directed by the division.

875--203.18(89) Nonstandard objects. If a nonstandard object as defined in rule 875--200.2(89) is to be installed in Iowa, all of the following conditions must first be met.

203.18(1) The blueprints and design calculations for construction of the object must be submitted to the labor commissioner for review and approval before any installation work is commenced. All units of measure on submitted paperwork must be scaled to customary United States units of measure. All documents must be provided in the English language.

203.18(2) The blueprints and design calculations for construction of the object must be certified by a professional engineer who is registered in the United States for the design of objects. The manufacturer's data report or design documentation records must be signed by a special inspector who is commissioned by the labor commissioner or by a division employee holding a National Board commission and a state commission.

203.18(3) The blueprints and design calculations of these objects shall be prepared utilizing a specified, stated, known engineering standard such as the DIN, ISO, BSI, ASME, JIS or CNS.

203.18(4) All documentation verifying quality and code compliance shall be submitted to the division for review and approval by the labor commissioner unless there is an agreement which provides for reciprocity between the division and the jurisdiction in which the object was built. The quality assurance system shall include, but is not limited to:

a. Quality assurance documentation. The quality assurance documentation shall include the following: statement of authority, scope of work addressed, organizational charts, quality control responsibilities, drawings and design, calculation, specification control, order entry, purchasing, training, audits, auditor training, material control, examination and inspection programs, correction and detection of nonconformities, welding controls, nondestructive examination and personnel qualifications, heat treatment, calibration of test equipment, records retention, sample forms, and duties of the authorized inspector; or the requirements of ANSI/ASQC Q 91-1994 or ASME NQA 1-1989 with 1C-1992 addenda.

b. Certification from a registered professional engineer knowledgeable about the code of construction and installation; and

c. Implementation of all phases of the quality assurance system(s) and certification(s) shall be demonstrated.

203.18(5) An English language version of the documents described in subrule 203.18(4) shall be submitted for review by the labor commissioner. The English language versions of the documents shall control during any implementation or demonstration of the fabrication of the nonstandard object. The documentation and certification described in subrule 203.18(4), if in a language other than English, must include a statement that in case of a conflict, the translated English language version shall prevail.

203.18(6) The fees and costs for the review shall be borne by the manufacturer, owner, or user of the object requesting the review and shall include, but not be limited to, the inspection fees set forth in rule 875--200.4(89). Fees and costs shall include travel, lodging, meals, and incidental costs associated with performing the review or audit. If the review is outside the United States, the party or parties requesting the review shall be responsible to arrange all travel permits and visas. A party requesting a review or audit shall guarantee access to all phases of manufacture, regardless of who is the owner of a relevant facility.

203.18(7) After a manufacturer has received permission to construct a nonstandard object for an Iowa location, the manufacturer shall construct the object complying with all quality standards approved and certified for Iowa installation and construction. Compliance with this rule during the installation and construction phases shall not in any way be viewed as creating an exception from any provisions of Iowa Code chapter 89 or IAC 875--Chapters 200 to 209.

875--203.19(89) Notification of explosion. Owners and users of covered objects must report any object explosion by calling (515)281-3647 or(515)281-6533. If the explosion occurs during normal division operating hours, notification shall occur before close of business on that day. If the explosion occurs when the division office is closed, the notification shall occur no later than close of business on the next division business day. Division hours are 8 a.m. to 4:30 p.m., Monday through Friday, except state holidays.

875--203.20(89) Lap seam crack. The shell or drum of an object in which a lap seam crack is discovered along a longitudinal, riveted joint shall be immediately discontinued from use. If the object is not more than 15 years of age, a complete new course of the original thickness may be installed at the discretion of the inspector. Patching is prohibited.

These rules are intended to implement Iowa Code chapter 89.

ITEM 5. Transfer 347--Chapters 43 to 48 to 875--Chapters 204 to 209, respectively, and change all references within those chapters accordingly.

ITEM 6. Amend subrule 204.2(4) as follows:

204.2(4) Installations after --July 1, 1996, to December 31, 1997. All new installations between July 1, 1996, and December 31, 1997, of boilers, including reinstalled boilers, shall be installed in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section I (1992) with 1994 addenda) or with the requirements of recognized national or international standards such as DIN, BSI, JIS, or Canadian National Standards CNS. Gas-fired jacketed steam kettles may be installed provided they are designed, installed, inspected and stamped in accordance with ASME Code for Boilers and Pressure Vessels Section VIII, Division I, Appendix 19 (1995). Boiler installations Installations shall also comply with ANSI/ASME CSD-1 (1995).

ITEM 7. Adopt new subrule 204.2(5) as follows:

204.2(5) Installations after January 1, 1998. After January 1, 1998, all new installations of boilers, including reinstalled boilers, shall be installed in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section I (1995 with 1997 addenda) or with the requirements of recognized national or international standards such as DIN, BSI, JIS, or CNS. Boiler installations shall also comply with ANSI/ASME CSD-1 (1995 with 1996 addenda).

ITEM 8. Amend subrule 205.1(1) as follows:

205.1(1) Working pressure--shell. The maximum allowable working pressure on the shell of a boiler shall be determined by the strength of the weakest course computed from the thickness of the plate, the tensile strength of the plate, the efficiency of the longitudinal joint, the inside diameter of the course, and the factor of safety allowed by these rules. The formula for determining the maximum allowable working pressure is:

TStE = Maximum allowable working pressure, psig.

RFS

Where:

TS = Ultimate tensile strength of shell plates plate(s), psig. When the tensile strength of a steel plate(s) is unknown, it shall be taken as 55,000 psig for temperatures not exceeding 650 degrees F.

t = Minimum thickness of shell plates of the weakest course, in inches.

E = Efficiency of longitudinal joint ,method of determining which is given in (calculated pursuant to ANSI/ASME BPV-1-PG-27) (1995 with 1997 addenda).

R = Inside radius of the weakest course of the shell or drum, in inches.

FS = Factor of safety specified in subrule 44.1(2) 205.1(2).

ITEM 9. Amend subrule 205.4(1) to read as follows:

205.4(1) The use of weighted-lever safety valves or safety valves having either the seat or disk of cast iron is prohibited. All power boilers shall have direct, springloaded, pop-type safety valves that conform to the requirements of ASME Code, Section I (1995 with 1997 addenda).

ITEM 10. Amend subrule 205.4(10), paragraph "c," to read as follows:

c. For heating surface determination, see ASME Code, Section I, Appendix A 44, 1995 with 1997 addenda.

ITEM 11. Amend subrule 205.4(10) by inserting new paragraph "d" as follows:

d. Maximum steaming capacity for safety valves shall be the value stated on design documents or shall be calculated by multiplying horsepower by 34.5.

ITEM 12. Amend subrule 206.2(2), catchwords, to read as follows:

206.2(2) Installations after --July 1, 1996, to December 31, 1997.

ITEM 13. Adopt new subrule 206.2(3) as follows and renumber 206.2(3) as 206.2(4).

206.2(3) Installations after January 1, 1998. After January 1, 1998, all installed and reinstalled miniature boilers covered by this chapter shall be constructed and installed in accordance with national and international standards such as DIN, BSI, ASME, JIS, or CNS (1995 with 1997 addenda). Only national and international standards acceptable to the division may be utilized. Miniature boilers installed and reinstalled after January 1, 1998, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers must comply with the requirements of ANSI/ASME CSD-1 (1995 with 1997 addenda).

ITEM 14. Amend subrule 207.2(5) to read as follows:

207.2(5) Installations after --July 1, 1996, to December 31, 1997. All new installations of boilers, including reinstalled boilers, between July 1, 1996, and December 31, 1997, shall be designed, manufactured, installed, inspected and stamped in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section I IV (1992) with 1994 addenda or with the requirements of recognized national or international standards such as DIN, BSI, JIS, Canadian National Standards or CNS. Only national and international standards acceptable to the division of labor services may be utilized. Boilers installed and reinstalled after July 1, 1996, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers must comply with the requirements of ANSI/ASME CSD-1 1995.

ITEM 15. Adopt new subrule 207.2(6) as follows:

207.2(6) Installations after January 1, 1998. After January 1, 1998, all new installations of boilers, including reinstalled boilers, shall be designed, manufactured, installed, inspected and stamped in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section IV (1995 with 1997 addenda) or with the requirements of recognized national or international standards such as DIN, BSI, JIS, or CNS. Only national and international standards acceptable to the division may be utilized. Boilers installed and reinstalled after January 1, 1998, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers must comply with the requirements of ANSI/ASME CSD-1 (1995 with 1997 addenda).

ITEM 16. Amend subrule 209.1(4) as follows:

209.1(4) Installations after --July 1, 1996, to December 31, 1997. Pressure vessels, including reinstalled pressure vessels, installed between July 1, 1996, and December 31, 1997, shall be designed, manufactured, installed, inspected, and stamped according to an accepted in accordance with the requirements of ASME Code for Boilers and Pressure Vessels Section VIII (1995) or the requirements of recognized national or international standard such as DIN, BSI, ASME, JIS, Canadian National Standards or CNS. Only national and international standards acceptable to the division of labor services may be utilized. Pressure vessels installed and reinstalled after January July 1, 1996, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers pressure vessels must comply with the requirements of ANSI/ASME CSD-1 1995 (1995), as applicable.

ITEM 17. Adopt new subrule 209.1(5) as follows:

209.1(5) Installations after January 1, 1998. After January 1, 1998, pressure vessels installed, including reinstalled pressure vessels, shall be designed, manufactured, installed, inspected, and stamped in accordance with the requirements of ASME Code for Boilers and Pressure Vessels Section VIII (1995) or the requirements of recognized national or international standard such as DIN, BSI, ASME, JIS, or CNS. Only national and international standards acceptable to the division may be utilized. Pressure vessels installed and reinstalled after January 1, 1998, must be inspected by a National Board commissioned inspector and be registered with the National Board. The pressure vessels must comply with the requirements of ANSI/ASME CSD-1 (1995 with 1997 addenda) as applicable.

ITEM 18. Amend subrule 209.2(2) to read as follows:

209.2(2) Maximum allowable working pressure (noncode stamped).

a. The maximum allowable working pressure on the shell of pressure vessels not covered by subrule 209.2(1) shall be determined by the strength of the weakest course computed from the thickness of the plate, the tensile strength of the plate, the efficiency of the longitudinal joint, the inside diameter of the course and the factor of safety set by this subrule.

TStE = Maximum allowable working pressure, psig

RFS

WHERE Where:

TS = Ultimate tensile strength of shell plate plate(s), psig. When the tensile strength of a steel plate(s) is not known unknown, it shall be taken as 55,000 psig for temperatures not exceeding 650 degrees F.

t = Minimum thickness of shell plate plates of the weakest course, in inches.

E = Efficiency of longitudinal joint. For riveted joints, use ASME Code, Section 1 (1971). For fusion-welded and brazed joints, use the following table:

Single lap welded 40

Double lap welded 60

Single butt welded 60

Double butt welded 75

Forge welded 70

Brazed steel 80

R = Inside radius for of the weakest course of shell or drum in inches, provided the thickness does not exceed 10 percent of the radius. If the thickness is over 10 percent of the radius the outer radius shall be used.

FS = Factor of safety shall be four.

b. External pressure. The maximum allowable working pressure for noncode pressure vessels subjected to external or collapsing pressure shall be determined by the ASME Code, Section VIII, Divisions 1, 2 and 2 3, 1995 (1995 with 1997 addenda).

ITEM 19. Amend subrule 209.2(4) to read as follows:

209.2(4) End closures. The maximum allowable working pressure permitted for formed heads under pressure shall be determined by using the formulas in ASME Code, Section VIII, Divisions 1, 2 and 2 3, 1995 (1995 with 1997 addenda).

ITEM 20. Rescind 347--Chapter 49.

ARC 7668A

PETROLEUM UNDERGROUND STORAGE TANK FUND BOARD, IOWA COMPREHENSIVE[591]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 sections 455G.4(3), 455G.6(15), 455G.9 and 455G.21, the Iowa Comprehensive Petroleum Underground Storage Tank Fund Board (Board) proposes to amend Chapter 11, "Remedial or Insurance Claims," Iowa Administrative Code.

The rules in Chapter 11 describe the guidelines for reimbursement of remedial and insurance claims.

Paragraph 11.1(3)"b" requires that any owner or operator applying for remedial benefits shall demonstrate financial responsibility coverage no later than October 26, 1990. If there is a lapse in financial responsibility coverage for any period after October 26, 1990, the owner/operator will no longer be eligible for benefits if the site for which benefits are being requested has active tanks during the time the owner was unable to demonstrate financial responsibility. This paragraph requires that all owners maintain financial responsibility continuously while tanks are operational. As a result of this paragraph, those owners who made a good-faith attempt to maintain their financial responsibility coverage through the state insurance fund, but encountered a lapse of coverage due to improper documentation, incorrect premium payment or missing a deadline, lost not only their financial responsibility coverage but also all remedial benefits to address past contamination.

Prior to 1996, owners whose coverage lapsed were able to purchase backdated insurance if they could document compliance with underwriting criteria and all payments were made. However, under current Board rules, backdating insurance is no longer allowed except for innocent landowner claims for periods prior to December 1993. Therefore, a lapse of coverage for even a very short period of time will result in a loss of all remedial benefits.

This proposed amendment will allow for the reinstatement of remedial benefits if the lapse in financial responsibility coverage occurred after an owner/operator made a good-faith attempt to comply with the coverage requirements. Although coverage will not be backdated, the owner/operator will remain eligible for remedial benefits if extenuating circumstances are documented which created the lapse in coverage and the owner can document good-faith attempts to maintain that coverage.

Any interested person may make written suggestions or comments on this proposed amendment on or before December 9, 1997. Such written comments should be directed to the Iowa Comprehensive Petroleum Underground Storage Tank Fund Board, Administrator, 1000 Illinois Street, Suite B, Des Moines, Iowa 50314.

Persons who want to orally convey their views should contact Patrick Rounds, Administrator, Iowa Comprehensive Petroleum Underground Storage Tank Fund Board, at (515)284-1616, during regular business hours.

There will be a public hearing on December 9, 1997, at 10 a.m. in the Conference Room of the Iowa Insurance Division, Sixth Floor, Lucas State Office Building, Des Moines, Iowa. Persons may present their views at this public hearing either orally or in writing.

This amendment will not necessitate additional annual expenditures exceeding $100,000 by political subdivisions or agencies and entities which contract with political subdivisions. Therefore, no fiscal note accompanies this Notice.

This amendment is intended to implement Iowa Code sections 455G.9 and 455G.21.

The following amendment is proposed.

Amend paragraph 11.1(3)"b" as follows:

b. To be eligible for benefits under Iowa Code section sections 455G.9 and 455G.21, any owner or operator applying for such benefits shall demonstrate financial responsibility coverage using a method provided for under 567--Chapter 136 no later than October 26, 1990. If an owner or operator is unable to demonstrate financial responsibility coverage, or there is a lapse in the financial responsibility coverage for any period after October 26, 1990, the owner/operator will no longer be eligible for benefits if the site for which benefits are being requested has active tanks during the time the owner/operator was unable to demonstrate financial responsibility or if there is a lapse of financial responsibility coverage. The financial responsibility coverage requirement shall not be required on tanks which are temporarily closed consistent with 11.1(3)"o." subject to the following limitations:

(1) The financial responsibility coverage requirement shall not be required on tanks which are temporarily closed consistent with 11.1(3)"o."

(2) A lapse of financial responsibility coverage shall not cause loss of remedial benefits if the owner or operator can demonstrate:

1. Good-faith attempts were made to maintain the financial responsibility coverage;

2. Communications were ongoing between the owner or operator and the board in an attempt to maintain financial responsibility coverage at the time of the lapse;

3. The lapse in coverage was due to failure to timely submit proper documentation, failure to timely pay full payment of required premium, or both;

4. If the lapse was due to a failure to timely submit proper documentation:


* The owner or operator is able to demonstrate that documentation was submitted in a good-faith attempt to comply with the financial responsibility criteria.


* The owner or operator can provide factual support that the documentation submitted was sufficient to maintain financial responsibility coverage.


* The owner or operator submits a signed affidavit certifying that the owner or operator believed the documentation submitted was sufficient to maintain financial responsibility coverage.

5. If the lapse was due to a failure to timely submit full payment of required premium:


* The owner or operator is able to demonstrate that the payment was submitted in a good-faith attempt to comply with the financial responsibility criteria.


* The owner or operator can provide factual support that the payment submitted was sufficient to maintain financial responsibility coverage.


* The owner or operator submits a signed affidavit certifying that the owner or operator believed the payment submitted was sufficient to maintain financial responsibility coverage.

6. The owner or operator submits an amount equal to the full premium and any applicable surcharges that would have been required if financial responsibility coverage had been maintained.

The board will determine if the action taken by the owner or operator qualifies as good faith based upon the financial responsibility coverage requirements and the owner or operator's knowledge of and experience with financial responsibility coverage requirements and general business principles. When determining good faith, the board may consider the owner or operator's past history of maintaining financial responsibility coverage, the extent of the owner or operator's business knowledge taking into consideration business size and the number of UST sites owned or operated, compliance with other environmental programs, and other events occurring at the time of the financial responsibility coverage lapse which may have impacted the owner or operator's actions when attempting to maintain the financial responsibility coverage.

ARC 7663A

PROFESSIONAL LICENSURE DIVISION[645]

BOARD OF COSMETOLOGY ARTS AND SCIENCES EXAMINERS

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 157.14, the Board of Cosmetology Arts and Sciences Examiners hereby gives Notice of Intended Action to amend Chapter 60, "Licensure of Cosmetologists, Electrologists, Estheticians, Manicurists, Nail Technologists, and Instructors of Cosmetology Arts and Sciences," Chapter 61, "Licensure of Salons and Schools of Cosmetology Arts and Sciences," and Chapter 62, "Fees," Iowa Administrative Code.

These amendments update the requirements of cosmetology, electrology, esthetics, manicurist, and nail technology curriculum; change the number of hours of training for electrology from 325 to 425 hours; require successful completion of the Iowa Law Examination for persons applying for manicurist license; require practical experience in the area of electrolysis for instructors of electrology courses; clarify the requirements for reinstatement of inactive license; replace language for school credit hours; change the fee for an instructor's license from $30 to $70; and add language for fees for reinstatement application and Iowa Law Examination.

Any interested person may make written comments on the proposed amendments no later than December 9, 1997, addressed to Sharon Cook, Professional Licensure, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075.

There will be a public hearing on December 9, 1997, from 1 p.m. to 3 p.m. in Room 19, Lower Level, Capitol Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.

This Notice of Intended Action does not have an impact on small business.

These amendments are intended to implement Iowa Code chapter 157.

The following amendments are proposed.

ITEM 1. Amend subrule 60.2(2), paragraph "a," as follows:

a. Present to the department a diploma, or similar evidence, issued by a licensed school of cosmetology arts and sciences indicating that the applicant has completed the course of study prescribed by the board. For licensure of applicants licensed outside of Iowa, see rule 645--60.3(157).

Cosmetology course of study. The course of study in an approved school of cosmetology arts and sciences shall be 2100 hours of training. Clock hours may be converted to credit hours using a standard, recognized method of conversion. No school of cosmetology arts and sciences will be approved by the board of cosmetology arts and sciences examiners unless it complies with the requirements of study as provided in the following curriculum:

COSMETOLOGY CURRICULUM

THEORY, DEMONSTRATIONS AND LECTURES

Core life sciences curriculum (see 60.9(1)) 150 hours

Electrology theory 5 hours

Esthetics theory 115 hours

Nail technology theory 50 hours

Cosmetology theory (all subject material, using a standard approved textbook; may be supplemented with other cosmetology-related texts) 250 hours

Properties of skin, scalp and hair composition, analysis,disorders and care

Shampooing, rinsing and conditioning

Haircutting

Wet hairstyling

Thermal hairstyling

Permanent waving

Haircoloring

Chemical hair relaxing

Thermal hair straightening

Artificial hair (wiggery)

Theory of massage

Business and management

TOTAL THEORY, DEMONSTRATION AND
LECTURE THEORETICAL CURRICULUM
570 765 hours

SUPERVISED APPLIED PRACTICAL INSTRUCTION

Sanitation and sterilization

Shampoos, rinses and conditioning

Scalp treatments

Haircutting

Wet hairstyling

Thermal hairstyling

Permanent waving

Haircoloring

Chemical hair relaxing

Thermal hair straightening

Artificial hair (wiggery)

Manicuring and pedicuring

Esthetics practice (see esthetics curriculum,
60.6(3))

Makeup application

Electrology practice (see electrology curriculum,
60.5(3))

Nail technology practice (see nail technology
curriculum, 60.8(2))

Electrotherapy

Salon management

Mentoring option may be 5 percent of the total
course hours

1. Student is under supervision at all times.

2. Course subjects shall include skills and
business subjects related to the practice
of cosmetology.

3. Mentoring option may not exceed 5 percent of
the total course hours.

TOTAL SUPERVISED APPLIED PRACTICAL
INSTRUCTION 1380 1335 hours

UNASSIGNED--Specific needs 150 hours

TOTAL COURSE OF STUDY 2100 hours

ITEM 2. Amend subrule 60.5(1) as follows:

60.5(1) All A persons person who practice practices electrology in the state of Iowa are is required to be licensed as an electrologists electrologist. with the exception of those cosmetologists licensed after July 1, 1993, who show proof of completion of the complete cosmetology curriculum which includes the entire electrology course of study established with the adoption of these rules.

ITEM 3. Amend subrule 60.5(2), paragraph "a," as follows:

a. Present to the board a diploma or similar evidence indicating successful completion of a course of at least 325 425 hours of training related to electrology, and taught by an electrology instructor who is licensed to teach the clinical and theoretical practice of electrology, in a licensed school of cosmetology arts and sciences in Iowa, or from any school in another state which is licensed or approved by the board and which teaches the practice of electrology. The board shall not require that a person be licensed as a cosmetologist in order to obtain a license to practice electrolysis; however, the board shall credit the holder of a current cosmetology license with 200 hours toward the electrology licensing course.

ITEM 4. Amend subrule 60.5(3) as follows:

60.5(3) The electrology course of study shall consist of not less than 325 425 hours of training. Clock hours may be converted to credit hours using a standard, recognized method of conversion.

ELECTROLOGY CURRICULUM

THEORY, DEMONSTRATION AND LECTURES

Core life sciences 150 hours

Electrology theory (all subject material, using a
standard text and related support texts)

Needles and tweezers 3

Thermolysis 8

General treatment 4

Galvanic treatment 8

The blend 8

Angiology and neurology 10

Equipment 2

Speaker (doctor, business or insurance) 3

Field trip to salon 4

TOTAL THEORETICAL CURRICULUM THEORY,
DEMONSTRATIONS AND LECTURES 200 hours

SUPERVISED APPLIED PRACTICAL INSTRUCTION

1. Student is under supervision at all times.

2. Course subjects shall include skills and business
management related to the practice of electrology.

3. Mentoring option may not exceed 5 percent of the
total course hours.

TOTAL SUPERVISED APPLIED PRACTICAL
INSTRUCTION
225 hours

TOTAL COURSE OF STUDY 425 hours

Two hundred hours are listed above; however, a total of 325 hours is required. The remaining 125 hours will be applied to salon management and practical application on models under strict supervision. Mentoring option not to exceed 5 percent of the total course hours.

ITEM 5. Amend subrule 60.6(3) as follows:

60.6(3) The esthetics course of study shall consist of not less than 600 hours of training. Clock hours may be converted to credit hours using a standard, recognized method of conversion.

ESTHETICS CURRICULUM

THEORY, DEMONSTRATIONS AND LECTURES

Core life science 150 hours

Esthetics theory (all subject materials, using a
standard approved textbook; may be supplemented by using other esthetics-related texts)

History of skin care and cosmetics 2

Particular sterilization and sanitation 5

Physiology and histology of the skin 10

Skin analysis 5

Diseases and disorders of the skin 10

Chemistry for esthetician 10

Composition of cosmetic ingredients

Nutrition 3

Cleansing 2

Massage 3

Mask therapy 5

Electricity and facial machines 5

Facial treatments 5

Superfluous hair removal 5

Light therapy 5

Environmental and hereditary effect
on the skin 5

Cosmetic surgery: dermabrasion,
chemical peel, reconstruction 5

Aromatherapy 5

Color theory and psychology 5

Makeup application: basic, day,
evening, corrective lash and
brow tinting, prostheses 15

Consultation 5

TOTAL THEORETICAL CURRICULUM
THEORY, DEMONSTRATIONS AND
LECTURES 265 hours

SUPERVISED APPLIED PRACTICAL INSTRUCTION

Sterilization and sanitation

Consultation and record keeping

Skin analysis

Cleansing

Massage: face, hand, arm and body

Mask therapy

Treatments: face, hand, arm and body

Superfluous hair removal

Aromatherapy

Makeup: all aspects

Scheduling and sales

Salon management

1. Student is under supervision at all times.

2. Course subjects shall include skills and
business management related to the
practice of esthetics.

3. Mentoring option may not to exceed 5 percent
of the total course hours.

TOTAL SUPERVISED APPLIED PRACTICAL
INSTRUCTION 335 hours

TOTAL COURSE OF STUDY 600 hours

ITEM 6. Amend subrule 60.7(2), paragraph "a," as follows:

a. Submit proof of successfully completing a course of at least 40 hours of training relating to manicuring in a licensed school of cosmetology arts and sciences or licensed barber school.

MANICURIST COURSE OF STUDY

THEORY, DEMONSTRATION AND LECTURES

All subject material, using a standard text

(introduction to manicuring-nail disorders-
sterilization-bacteriology)

TOTAL THEORETICAL CURRICULUM 26 hours

SUPERVISED APPLIED PRACTICAL INSTRUCTION

1. Student is under supervision at all times.

2. Course subjects shall include all skills related to the practice of manicurist.

3. Students must complete 25 manicures.

CLASS/CLINIC CLASSIFICATION HOURS

Theory--Introduction to Manicuring 8

(Basic, Hot Oil, Male)

Theory--Nail and Skin Disorders 4

Theory--Bacteriology 4

Theory--Sterilization and Sanitation 6

(Practical Practice) 4

Public Relations and Attitudes 2

Iowa State Laws and Rules 2

Practical 10

4. Mentoring option not to exceed 5 percent of the total course hours.

Total hours of theory are 26 hours, total hours of practical are 14 hours. Students must complete 25 manicures.

TOTAL SUPERVISED APPLIED PRACTICAL
INSTRUCTION 14 hours

TOTAL COURSE OF STUDY 40 hours

ITEM 7. Adopt new subrule 60.7(2), paragraph "c," as follows:

c. Pass the Iowa Law Examination.

ITEM 8. Amend subrule 60.8(3) as follows:

60.8(3) Nail technology course of study. The nail tech-nology course of study shall consist of not less than 325 hours of training. Clock hours may be converted to credit hours using a standard, recognized method of conversion.

NAIL TECHNOLOGY CURRICULUM

THEORY, DEMONSTRATIONS AND LECTURES

Core life sciences 150 hours

Nail Technology Theory (all subject materials,
using a standard approved textbook; may be
supplemented with other nail-related texts)

Theory introduction to manicuring 3

Disorders and diseases of the nail 8

Particular sanitation and sterilization 5

Chemistry for the nail technologist 5

Composition of manicuring products
and sculptured nail products,toxicity
and allergic reactions

Basic techniques 5

Sculptured nails 8

Wraps 5

Fiberglass and gels 5

Corrections and repairs 2

Implements, equipment and supplies 2

Superfluous hair removal 2

TOTAL THEORETICAL CURRICULUM THEORY,
DEMONSTRATION AND LECTURES 200 hours

Two hundred hours are listed above; however, a total of 325 hours is required. The remaining 125 hours will be applied to salon management and practical application on models under strict supervision, which shall include all techniques of wraps, sculptured nails, tips and fills.

SUPERVISED APPLIED PRACTICAL INSTRUCTION

1. Student is under supervision at all times.

2. Course subjects shall include skills and business
management related to the practice of nail
technology.

3. Mentoring option not to exceed 5 percent of the
total course hours.

TOTAL SUPERVISED APPLIED PRACTICAL
INSTRUCTION 125 hours

TOTAL COURSE OF STUDY 325 hours

ITEM 9. Adopt new subrule 60.10(1), paragraph "h," as follows:

h. An instructor teaching courses in electrology shall have 60 hours of practical application experience, excluding school hours, in the area of electrolysis prior to application. The 60 hours must be documented by the employer.

ITEM 10. Amend subrule 60.12(2), paragraphs "a" and "b," as follows:

a. Verification of current active licensure in another state of the United States or the District of Columbia and a notarized statement of active practice of 12 months during the 24 months preceding application for reinstatement of Iowa license and. If exempt four years or more, the person shall pass the Iowa Law Examination; or

b. Completion of a total number of hours of approved continuing education computed by multiplying four hours by the number of years, with to a maximum of four years, a certificate of exemption shall have been in effect for the applicant; or completion of a refresher course approved by the board and through a licensed Iowa school of cosmetology. If exempt four years or more, the person shall pass the Iowa Law Examination (see 645--subrule 64.6(2), paragraph "d" 64.7(1)); or

ITEM 11. Adopt new subrule 60.12(3) as follows:

60.12(3) Submit reinstatement fee equivalent to two renewal periods.

ITEM 12. Rescind subrule 61.6(2) and adopt the following new subrule 61.6(2):

61.6(2) Student hours. A school of cosmetology arts and sciences shall have a written, published attendance policy.

a. When determining student hours, a school may define its attendance requirements to include 100 percent attendance for the course length or may allow excused absences for not more than 10 percent of the course length for satisfactory completion;

(1) Student attendance policies shall be applied uniformly and fairly;

(2) Attendance policies give appropriate credit for all hours earned;

(3) A student shall not be granted hours to retake tests or redo work projects in order to improve a grade, or be granted hours for makeup work missed due to an excused absence. All retake tests, redo projects and makeup work shall be completed without benefit of additional hours earned and shall be at the school's discretion to schedule time for same;

(4) Hours shall not be added to or deducted from hours earned as a penalty;

(5) A student shall not receive credit for participating in demonstrations of cosmetology arts and sciences for the sole purpose of recruiting students;

(6) The school must maintain attendance records for each student to verify that the minimum attendance standard set forth by the school is being met.

b. Accelerated learning. A school of cosmetology arts and sciences may adopt a policy which would allow for accelerated learning procedures. Such a policy may include acceptance of life experience, prior knowledge learned and test-out procedures. Hours granted for accelerated learning may not exceed 15 percent of hours for entire course of study.

(1) A student upon completion of all entrance requirements may elect to sit for one or more academic written tests which would allow for the evaluation of knowledge about subject matter gained from life experience or prior learning experience;

The school may accept and grant hours for prior or concurrent education, life experience and test-out results, at the time of enrollment, not to exceed 15 percent of the total course requirement.

(2) While a student in a cosmetology arts and sciences course of study, a student may be allowed to test out of a certain subject matter by sitting for final examinations covering the basic knowledge gained by a student who attends class sessions, or the school may accept and grant hours for prior or concurrent education and life experience. This would allow the student to demonstrate understanding of, and proficiency in, the subject matter gained either from self-study or advanced understanding of the subject.

1. A student who wishes to receive test-out credit, or be granted hours for prior or concurrent education or life experience, of academic or practical skills subject matter shall have maintained the academic grades and attendance policy standards set forth by the school;

2. A student may be allowed to receive test-out credit, or be granted hours for prior or concurrent education or life experience, of academic or practical skills subject matter not to exceed 15 percent of hours for entire course of study;

3. A school may have a policy which limits the number of times a student is allowed to sit for a test-out of any subject;

4. A school shall be responsible for setting a schedule for administering test-out examinations.

(3) Test-out credit for hours shall be accumulated in the student's file and applied to the total hours earned.

(4) The school shall have a written, published policy which clearly outlines the criteria for acceptance and granting of hours for test-out credit and hours granted for prior or concurrent education and life experience.

ITEM 13. Rescind subrule 61.6(3) and adopt the following new subrule 61.6(3):

61.6(3) To be considered a graduate, a student must have completed the course scheduled for completion and met the minimum attendance standard of the established course of study and all other academic and evaluation factors established by the school. Therefore, in addition to completion of required hours, the student must have satisfactorily completed the practical and theoretical curriculum requirements set forth by the school.

ITEM 14. Amend subrule 62.1(7) as follows:

62.1(7) License to instruct in a school teaching cosmetology arts and sciences is $30 $70.

ITEM 15. Adopt new subrules 62.1(21) and 62.1(22) as follows:

62.1(21) Fee for reinstatement of an inactive (exempt) license is $50.

62.1(22) Examination fee for Iowa Law Examination for applicants reinstating inactive or lapsed license is $20.

ARC 7662A

SUBSTANCE ABUSE COMMISSION[643]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 subsection 125.7(4), the Commission on Substance Abuse gives Notice of Intended Action to amend Chapter 3, "Licensure Standards for Substance Abuse Treatment Programs," Iowa Administrative Code.

This rule is proposed to establish specific standards for the licensing of screening, intake, assessment and evaluation programs. This proposed new rule reflects the current needs of assessment and evaluation programs and patients in general areas including application for licensure; procedures for denial, revocation, suspension, and refusal to renew a license; placement screening, admission and assessment clinical services; administration; programming and facilities; and management of care.

The Commission on Substance Abuse shall hold a public hearing on Thursday, December 11, 1997, from 10 a.m. to 12 noon. The public hearing will be held over the Iowa Communications Network (ICN), accessing several sites around the state simultaneously. Individuals wishing to participate should contact Lois Borg at (515)242-6161 to receive confirmation of ICN availability at the following locations:

Iowa Western Community College, Continuing Education Building, ICN Room 2, 2700 College Road, Council Bluffs, Iowa 51501;

Department of Public Health, Third Floor, ICN Room 326, Lucas State Office Building, Des Moines, Iowa 50319-0075;

Muscatine Community College, Larson Hall, Room 60, 152 Colorado Street, Muscatine, Iowa 52761;

Buena Vista University, Room 7A, 610 West 4th Street, Storm Lake, Iowa 50588; and

Waterloo Regional Office, Iowa Department of Human Services, Pinecrest Office Building, 1407 Independence Avenue, Waterloo, Iowa 50703.

Any interested person or agency may submit written comments on or before December 9, 1997, to Janet Zwick, Division Director, Division of Substance Abuse and Health Promotion, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075.

This rule is intended to implement Iowa Code section 125.13.

The following rule is proposed.

Adopt new rule 643--3.25(125) as follows:

643--3.25(125) Specific standards for assessment and evaluation programs.

3.25(1) Definitions.

"Acute intoxication or withdrawal potential" is a category to be considered in the ASAM-PPC-2 placement, continued stay, and discharge criteria. This category evaluates client/patient's current status of intoxication and potential for withdrawal complications as it impacts on level of care decision making. Historical information about client/patient's withdrawal patterns may also be considered.

"Admission" means the point in an individual's relationship with the program at which the screening process has been completed and the individual is entitled to receive treatment services.

"Admission criteria" means specific ASAM-PPC-2 criteria developed by the department to be considered in determining appropriate client/patient placement and resultant referral to a level of care. Criteria vary in intensity and are organized into six categories: acute intoxication or withdrawal potential, biomedical conditions or complications, emotional/behavioral conditions or complications, treatment resistance/acceptance, relapse potential, and recovery environment.

"ASAM-PPC-2" means the American Society of Addiction Medicine, Patient Placement Criteria for the Treatment of Substance-Related Disorders, Second Edition.

"Assessment" means the ongoing process of identifying a diagnosis, ruling out other diagnoses, and determining the level of care needed by the client.

"Biomedical condition or complication" means one category to be considered in ASAM-PPC-2 placement, continued stay, and discharge criteria. This category evaluatesclient/patient's current physical condition as it impacts on level of care decision making. Historical information onclient/patient's medical/physical functioning may also be considered.

"Case management" means the process of using predefined criteria to evaluate the necessity and appropriateness of client care.

"Chemical dependency" means alcohol or drug dependence or psychoactive substance use disorder as defined by current Diagnostic and Statistical Manual for Mental Disorders, Fourth Edition (DSM-IV) criteria or by other standardized and widely accepted criteria.

"Client/patient" means an individual who has a substance abuse problem or is chemically dependent, has been assessed as appropriate for services, and for whom screening procedures have been completed.

"Clinically managed high-intensity residential services" (Level III.5) offers high-intensity residential services designed to address significant problems with living skills. The prime example of Level III.5 care is the therapeutic community, which provides a highly structured recovery environment in combination with moderate-to-high intensity professional clinical services to support and promote recovery. (Reference ASAM-PPC-2.)

"Clinically managed low-intensity residential services" (Level III.1) offers low-intensity professional addiction treatment services at least five hours a week. Treatment is directed toward applying recovery skills, preventing relapse, promoting personal responsibility and reintegrating the resident into the worlds of work, education, and family life. The services provided may include individual, group and family therapy. Mutual/self-help meetings usually are available on site. (Reference ASAM-PPC-2.)

"Clinically managed medium-intensity residential services" (Level III.3) is frequently referred to as extended or long-term care. Level III.3 programs provide a structured recovery environment in combination with medium-intensity professional clinical services to support and promote recovery. (Reference ASAM-PPC-2.)

"Continued stay criteria" means specific ASAM-PPC-2 criteria to be considered in determining appropriate client/patient placement for continued stay at a level of care or referral to a more appropriate level of care. Criteria vary inintensity and are organized into six categories: acute intoxication or withdrawal potential; biomedical conditions or complications; emotional/behavioral conditions or complications; treatment resistance/acceptance; relapse potential; and recovery environment.

"Continuing care" means Level I service of ASAM-PPC-2 placement criteria, which provides a specific period of structured therapeutic involvement designed to enhance, facilitate and promote transition from primary care to ongoing recovery. (Reference ASAM-PPC-2.)

"Detoxification" means the process of eliminating the toxic effects of drugs and alcohol from the body. Supervised detoxification methods include social detoxification and medical monitoring or management and are intended to avoid withdrawal complications. (Reference ASAM-PPC-2 for detoxification level of care.)

"Emotional/behavioral conditions or complications" is a category to be considered in ASAM-PPC-2 placementcriteria. This category evaluates client/patient's currentemotional/behavioral status as it impacts on level of care decision making. Emotional/behavioral status may include, but is not limited to, anxiety, depression, impulsivity, and guilt and the behavior that accompanies or follows these emotional states. Historical information on client/patient emotional/behavioral functioning may also be considered.

"Evaluation" means the process to evaluate the client/patient's strengths, weaknesses, problems, and needs for the purpose of defining a course of treatment. This includes use of the standardized placement screening and any additional client/patient profile information and recommendation to an appropriate level of care.

"Intake" means gathering additional assessment information at the time of admission to services.

"Intensive outpatient treatment" (Level II.1) programs generally provide nine or more hours of structured programming per week, consisting primarily of counseling and education around alcohol and other drug problems. Intensive outpatient differs from partial hospitalization (Level II.5) in the intensity of clinical services that are directly available; specifically, intensive outpatient has less capacity to effectively treat individuals who have substantial medical and psychiatric problems.

"Levels of care" is a general term that encompasses the different options for treatment that vary according to the intensity of the services offered. Each treatment option in the client/patient placement criteria is a level of care.

"Recovery environment" means one category to be considered in the ASAM-PPC-2 placement, continued stay and discharge criteria. This category evaluates client/patient's current recovery environment as it impacts on level of care decision making. Recovery environment may include, but is not limited to, current relationships and degree of support for recovery, current housing, employment situation, and availability of alternatives. Historical information on client/patient's recovery environment may also be considered.

"Relapse" means progressive irresponsible, inappropriate and dysfunctional behavior patterns that could lead to resumption of alcohol or drug use. "Relapse" also refers to the resumption of alcohol or drug use.

"Relapse potential" means a category to be considered in ASAM-PPC-2 placement, continued stay, and discharge criteria. This category evaluates client/patient's current relapse potential as it impacts on level of care decision making. Relapse potential may include, but is not limited to, current statements by client/patient about relapse potential, reports from others on potential for clients/patient's relapse, and assessment by clinical staff. Historical information on client/patient's relapse potential may also be considered.

"Screening" means the process by which a client/patient is determined appropriate and eligible for admission to a particular program or level of care. The focus is on the minimum criteria necessary for appropriateness/eligibility.

"Substance abuser" means a person who habitually lacks self-control as to the use of chemical substances or uses chemical substances to the extent that the person's health is substantially impaired or endangered or that the person's social or economic function is substantially disrupted.

"Treatment acceptance/resistance" is a category to be considered in ASAM-PPC-2 placement, continued stay, and discharge criteria. This category evaluates client/patient's current treatment acceptance/resistance as it impacts on level of care decision making. Treatment acceptance/resistance may include, but is not limited to, current statements byclient/patient about treatment acceptance/resistance, reports from others on client/patient treatment acceptance/resistance, and assessment by clinical staff on client/patient motivation. Historical information on client/patient may also be considered.

"Treatment supervisor" means an individual who, by virtue of education, training or experience, is capable of assessing the psychosocial history of a substance abuser to determine the treatment plan most appropriate for the client. This person shall be designated by the applicant.

3.25(2) Governing body. Each program shall have a formally designated governing body that is representative of the community being served, complies with the Iowa Code, and is the ultimate authority for the overall program operations.

a. The governing body shall develop and adopt written bylaws and policies that define the powers and duties of the governing body, its committees, advisory groups, and the executive director. These bylaws shall be reviewed and revised by the governing body as necessary.

b. The bylaws shall minimally specify the following:

(1) The qualifications of the memberships;

(2) The type of membership;

(3) The method of selecting members;

(4) The term of appointment or election of members, officers and chairpersons of committees;

(5) The number of the membership;

(6) The frequency of meetings;

(7) The attendance requirements; and

(8) The quorum necessary to transact business.

c. Minutes of all meetings shall be kept and be available for review by the department and shall include, but not necessarily be limited to:

(1) Date of the meeting;

(2) Names of members attending;

(3) Topics discussed;

(4) Decisions reached and actions taken; and

(5) A summary of all reports presented to the governing body.

d. The duties of the governing body shall include, but not necessarily be limited to, the following:

(1) Appointment of a qualified executive director who shall have the responsibility and authority for the management of the program in accordance with the governing body's established policies;

(2) Establish an effective control which will ensure that quality services are delivered;

(3) Review and approve the program's annual budget; and

(4) Approve all contracts.

e. The governing body shall develop and approve policies for the effective operation of the program.

f. The governing body shall be responsible for all funds, equipment, supplies and the facility in which the program operates. The governing body shall be responsible for the appropriateness and adequacy of services provided by the program.

g. The governing body shall at least annually prepare a report which will include, but not necessarily be limited to, the following items:

(1) The name, address, occupation, and place of employment of each governing body member;

(2) Any family relationship which a member of the governing body may have to a program staff member; and

(3) Where applicable, the name and address of all owners or controlling parties whether they are individuals, partnerships, corporation body, or subdivision of other bodies, such as a public agency, or religious group, fraternity, or other philanthropic organization.

h. The governing body shall assume responsibility in seeing that the program has malpractice and liability insurance and a fidelity bond.

3.25(3) Executive director. The governing body shall appoint an executive director whose qualifications, authority, and duties are appropriate to the administrative and treatment requirements of the program. This individual shall have primary responsibility for the overall program operations in accordance with the policies established by the governing body.

a. The duties of the executive director shall include, but not necessarily be limited to, the following:

(1) The developing and organizing of administrative and procedural functions of the program;

(2) Public relations;

(3) Establishing a formal means of staff accountability;

(4) Control and conservation of the physical and financial assets of the program;

(5) Personnel administration; and

(6) Review of policies on an annual basis and updating as appropriate.

b. The executive director shall assist the governing body in formulating policies and shall prepare, present, and interpret all relevant information as deemed appropriate by the governing body which may include:

(1) Reports describing the program's operation;

(2) Evaluation reports dealing with the efficiency and effectiveness of the program;

(3) Plans based upon the nature and extent of substance abuse problems within the service area, the nature and extent of funding, and other resources available, and federal, state and local developments affecting substance abuse treatment; and

(4) Budget and financial statements.

3.25(4) Treatment supervisor services. The program shall have available consultation from a treatment supervisor to ensure quality of clinical services provided to clients/patients. This individual will assist the program in developing policies and procedures relating to the assessment of psychopathology. The treatment supervisor will assist in the training of the staff and providing assistance to the clinical staff in client screening and placement. The executive director or designee shall be ultimately responsible for clinical services and implementation of screening and placement services to clients.

3.25(5) Staff development and training. There shall be written policies and procedures that establish a staff development program. The staff development program shall include orientation for entry-level staff, on-the-job training, in-service education, and opportunities for continuing job-related education.

a. Initial training is recommended for all staff, which for each clinical staff member shall include structured, scheduled orientation in the following areas: psychosocial, medical, pharmacological, confidentiality, and tuberculosis and blood-borne pathogens; an orientation to the program and community resources; screening, evaluation, and placement skill development; HIV/AIDS (Human Immunodefi-ciency Virus/Acquired Immune Deficiency Syndrome)information/education; and the attitudes, values and lifestyles of racially diverse cultures, other cultures and special populations. In addition, each treatment staff member shall complete two hours of training relating to the identification and reporting of child abuse and dependent adult abuse within six months of initial employment, and at least two hours of additional training every five years thereafter.

b. The program shall establish on-site training programs or enter into relationships with outside resources capable of meeting staff training needs.

c. The staff development program shall take steps to ensure that staff members are kept informed of new developments in the field of substance abuse screening, evaluation and placement.

d. In-service training programs shall be instituted when program operations or functions are changed and shall be designed to allow staff members to develop new skills so that they may effectively adapt to such changes.

e. Staff development activities and participation in state, national and regional training shall be planned and scheduled. These activities shall be documented in order to evaluate their scope, effectiveness, attendance, and amount of time spent on such efforts. The written plan for on-site staff development and activities for professional growth and development of personnel shall be based on the annual needs assessment and shall be available to all personnel.

f. Minutes shall be kept of on-site training activities and shall include, but not necessarily be limited to:

(1) Date of the meeting;

(2) Names of persons attending;

(3) Topics discussed, to include name and title of presenters; and

(4) Recommendations made.

g. The individual responsible for supervising staff development activities shall conduct at least an annual needs assessment.

h. The local program shall document staff attendance and participation at local, regional, state and national training opportunities.

3.25(6) Management information system. All programs funded by the department shall submit client data to the Iowa Department of Public Health, Division of Substance Abuse and Health Promotion, Lucas State Office Building, Des Moines, Iowa 50319-0075, in accordance with substance abuse reporting system procedures.

3.25(7) Procedures manual. All programs shall develop and maintain a procedures manual. This manual shall define the program's policies and procedures to reflect the program's activities. Revisions shall be entered with the date, name and title of the individual making the entries. This manual shall contain all of the required written policies, procedures, definitions, and all other documentation required by these standards in the following areas:

a. Legal authority and organization of the governing body;

b. Fiscal management;

c. Personnel policies;

d. Medical services;

e. Staff training;

f. Client case records;

g. Supportive and professional services;

h. Follow-up services;

i. Client rights;

j. Confidentiality of client records;

k. Clinical services, such as screening, assessment, and evaluation;

l. Objectives;

m. Table of organization;

n. The role of the coordinator/director in charge of this service; and

o. Interrelationship with other service components and providers.

3.25(8) Fiscal management. The program shall ensure proper fiscal management which shall include the following:

a. The preparation and maintenance of an annual written budget which shall be reviewed and approved by the governing body prior to the beginning of the budget year.

b. The fiscal management system shall be maintained in accordance with generally accepted accounting principles, including internal controls to reasonably protect the agency assets. This shall be verified by an independent fiscal audit of the program by the state auditor's office or certified public accountant based on an agreement entered into by the governing body.

c. There shall be an insurance program that provides for the protection of the physical and financial resources of the program which provides coverage for all people, buildings, and equipment. The insurance program shall be reviewed annually by the governing body.

3.25(9) Personnel. Written personnel policies and procedures shall be developed by all programs.

a. These policies and procedures shall address the following areas:

(1) Recruitment, selection, and certification of staff members;

(2) Recruitment and selection of volunteers;

(3) Wage and salary administration;

(4) Promotions;

(5) Employee benefits;

(6) Working hours;

(7) Vacation and sick leave;

(8) Lines of authority;

(9) Rules of conduct;

(10) Disciplinary actions and termination of employees;

(11) Methods for handling cases of inappropriate client care;

(12) Work performance appraisal;

(13) Employee accidents and safety;

(14) Arbitration of employee grievances; and

(15) Policy on staff persons suspected of using or abusing substances.

b. The written personnel policies and practices shall include an equal employment opportunity policy and an affirmative action plan for hiring members of protected classes.

c. There shall be written job descriptions for all positions. Each job description shall identify specifically:

(1) Job title;

(2) Tasks and responsibilities of the job;

(3) The skills, knowledge, training, education and experience required for the job; and

(4) Lines of authority.

d. Job descriptions shall accurately reflect the actual job situation and shall be reviewed when necessary by the executive director or whenever there is a change in required qualifications or duties.

e. All positions shall have job descriptions included in the personnel section of the procedures manual or personnel record of the staff member.

f. The written personnel policies and practices shall include a mechanism for the evaluating of personnel performance on at least an annual basis. This evaluation shall be in writing. There shall be evidence that this evaluation is reviewed with the employee and that the employee is given the opportunity to respond to this evaluation.

g. There shall be a personnel record kept on each staff member. These records shall contain as applicable:

(1) The application for employment;

(2) Verification of training, experience, and all professional credentials relevant to the position;

(3) Wage and salary information, including all changes;

(4) Job performance evaluations;

(5) Incident reports;

(6) Disciplinary actions taken; and

(7) Documentation of review and adherence to confidentiality laws and regulations. This review and agreement shall occur prior to assumption of duties.

h. For each employee working within a juvenile service area, these personnel records shall contain:

(1) Documentation of a criminal records check with the Iowa division of criminal investigation on all new applicants for employment asking whether the applicant has been convicted of a crime.

(2) A written, signed, and dated statement furnished by a new applicant for employment which discloses any substantiated reports of child abuse, neglect, or sexual abuse that may exist on the applicant.

(3) Documentation of a check after hiring on probationary or temporary status, but prior to permanently employing the individual with the Iowa central child abuse registry for any substantiated reports of child abuse, neglect, or sexual abuse.

(4) A person who has a record of a criminal conviction or founded child abuse report shall not be employed, unless an evaluation of the crime or founded child abuse has been made by the department of human services which concludes that the crime or founded child abuse does not merit prohibition of employment. If a record of criminal conviction or founded child abuse exists, the person shall be offered the opportunity to complete and submit Form 470-2310, Record Check Evaluation. In its evaluation, the department of human services shall consider the nature and seriousness of the crime or founded abuse in relation to the position sought, the time elapsed since the commission of the crime or founded abuse, the circumstances under which the crime or founded abuse was committed, the degree of rehabilitation, and the number of crimes or founded abuses committed by the person involved.

i. There shall be written policies and procedures designed to ensure confidentiality of personnel records and a delineation of authorized personnel who have access to various types of personnel information.

j. Personnel conducting screenings, placements, and assessments shall be certified through the Iowa board of substance abuse certification, or certified by an international certification and reciprocity consortium member board in the states of Illinois, Minnesota, Nebraska, Missouri, South Dakota, and Wisconsin; or be eligible for certification or have education, training, or experience in the substance abuse field.

k. There shall be written policies related to the prohibition of sexual harassment.

l. There shall be written policies related to the implementation of the Americans With Disabilities Act.

3.25(10) Child abuse. Written policies and procedures shall prohibit mistreatment, neglect, or abuse of children and specify reporting and enforcement procedures for the program. Alleged violations shall be reported immediately to the director of the facility and appropriate department of human services personnel. Written policies and procedures on reporting alleged violations shall be in compliance with the department of human services, 42 CFR, Part 2, Regulations on Confidentiality of Alcohol and Drug Abuse Client Rec-ords. Any employee found to be in violation of Iowa Code chapter 232, division III, part 2, as substantiated by the department of human services' investigation shall be subject to the agency's policies concerning dismissal.

3.25(11) Client case record maintenance. There shall be written policies and procedures governing the compilation, storage and dissemination of individual client case records.

a. These policies and procedures shall ensure that:

(1) The program exercises its responsibility for safeguarding and protecting the client case record against loss, tampering, or unauthorized disclosure of information;

(2) Content and format of client records are kept uniform; and

(3) Entries in the client case record are signed and dated.

b. The program shall provide adequate physical facilities for the storage, processing, and handling of client case records. These facilities shall include suitably locked, secured rooms or file cabinets.

c. Appropriate records shall be readily accessible to those staff members providing services directly to the client and other individuals specifically authorized by program policy. Records should be kept in proximity to the area in which the client normally receives services.

d. There shall be a written policy governing the disposal and maintenance of client case records. Client case records shall be maintained for not less than five years from the date they are officially closed.

e. Each file cabinet or storage area containing client/patient case records shall be locked.

f. The governing body shall establish policies that specify the conditions under which information on applicants or clients may be released and the procedures to be followed for releasing such information. Even if a program is not federally funded, all such policies and procedures shall be in accordance with the federal confidentiality regulations, "Confidentiality of Alcohol and Drug Abuse Patient Records," 42 CFR, Part 2, effective June 9, 1987, which implement federal statutory provisions, 42 U.S.C. 290dd-3 applicable to alcohol abuse patient records, and 42 U.S.C. 290ee-3 applicable to drug abuse patient records, and state confidentiality laws and regulations.

g. Confidentiality of alcohol and drug abuse patient rec-ords. The confidentiality of alcohol and drug abuse patient records maintained by a program is protected by the "Confidentiality of Alcohol and Drug Abuse Patient Records" regulations, 42 CFR, Part 2, effective June 9, 1987, which implement federal statutory provisions, 42 U.S.C. 290dd-3 applicable to alcohol abuse patient records, and 42 U.S.C. 290ee-3 applicable to drug abuse patient records.

3.25(12) Placement screening, admission, and assessment. There shall be clearly stated written criteria for determining the eligibility of individuals for screening and evaluation.

a. The program shall have written policies and procedures governing a uniform process that defines:

(1) The types of information to be gathered on all individuals upon admission;

(2) Procedures to be followed when accepting referrals from outside agencies or organizations;

(3) The types of records to be kept on all individuals applying for services.

b. The program shall conduct a screening, which shall include evaluation of the ASAM-PPC-2 for determining the recommendation of individuals for placement into a level of care.

c. When an individual refuses to divulge information or to follow the recommended course of treatment, this refusal shall be noted in the case record.

d. At the time of screening, documentation shall be made that the individual has been informed of:

(1) General nature and goals of the program;

(2) Rules governing client conduct and infractions that can lead to disciplinary action or discharge from the program;

(3) The hours during which services are available;

(4) Evaluation costs to be borne by the client, if any;

(5) Client's rights and responsibilities; and

(6) Confidentiality laws, rules and regulations.

e. Sufficient information shall be collected during the screening and evaluation process so that a recommendation can be made for placement into a level of care.

f. The results of the screening and evaluation process shall be clearly explained to the client and to the client's family when appropriate. This shall be documented in the client record.

g. Programs conducting screenings and evaluations on persons convicted of operating a motor vehicle while intoxicated (OWI), Iowa Code section 321J.2, and persons whose driver's license or nonresident operating privileges are revoked under chapter 321J, shall do so in accord with and adhere to 643 IAC Chapter 8.

3.25(13) Client case record contents. There shall be a case record for each client that contains:

a. Results of all examinations, tests, and screening and admissions information;

b. Reports from referring sources;

c. Reports from outside resources shall be dated and include the name of the resource;

d. Multidisciplinary case conference and consultation notes, including the date of the conference or consultation, recommendations made, actions taken, and individuals involved;

e. Correspondence related to the client, including all letters and dated notations of telephone conversations relevant to the client's treatment;

f. Information release forms;

g. Records of services provided;

h. Management information system or other appropriate data forms.

3.25(14) Medical services. The applicant shall have policies and procedures developed in conjunction with a physician to examine and evaluate substance abusers seeking or undergoing screening, placement and assessment services.

3.25(15) Emergency medical services. The program shall ensure, by affiliation agreement or contract, that emergency medical services at a general hospital are available on a 24-hour basis.

a. The program will maintain emergency medical service coverage on a 24-hour, seven-day-a-week basis.

b. The program shall ensure that all community service providers, medical facilities, law enforcement agencies, and other appropriate personnel are informed of the 24-hour emergency services and treatment available.

3.25(16) Management of care. The program shall ensure appropriate level of care utilization by implementing and maintaining the written placement screening.

3.25(17) Building construction and safety. All buildings in which clients receive treatment are designed, constructed, equipped, and maintained in a manner that is designed to provide for the physical safety of clients, personnel, and visitors.

a. If required by local jurisdiction, all programs shall maintain a certification of occupancy.

b. During all phases of construction or alterations of buildings, the level of life safety shall not be diminished in any occupied area. The construction shall be in compliance with all applicable federal, state, and local codes.

c. New construction shall comply with Iowa Code chapter 104A and all applicable federal and local codes and provide for safe and convenient use by disabled individuals.

3.25(18) Facility grounds. All programs shall maintain facility grounds in a manner that is designed to provide safe access to and a safe environment for clients, personnel, and visitors.

a. The program shall have written policies and procedures for the maintenance, supervision, and safe use of all its grounds and equipment, including special activity areas such as swimming pools, tennis courts, and gymnasiums.

b. Safe access and a safe environment shall be maintained during phases of construction or alterations of the grounds.

c. New construction shall provide for safe and convenient use of the grounds by disabled individuals and comply with Iowa Code chapter 104A, federal and local codes.

3.25(19) General safety. All programs shall have written policies and procedures to provide a safe environment for clients, personnel, and visitors and to monitor that environment. The written policies and procedures shall include, but not be limited to, the following:

a. The process for the identification, development, implementation, and review of safety policies and procedures for all departments or services.

b. The promotion and maintenance of an ongoing, facilitywide hazard surveillance program to detect and report all safety hazards related to clients, visitors, and personnel.

c. The process by which the staff is to dispose of biohazardous waste within the clinical service areas.

d. All program areas.

(1) Stairways, halls, and aisles shall be of substantial nonslippery material, shall be maintained in a good state of repair, shall be adequately lighted and shall be kept free from obstructions at all times. All stairways shall have handrails.

(2) Radiators, registers, and steam and hot water pipes shall have protective covering or insulation. Electrical outlets and switches shall have wall plates.

(3) For juvenile facilities, fuse boxes shall be under lock and key or six feet above the floor.

(4) Facilities shall have written procedures for the handling and storage of hazardous materials.

(5) Facilities shall not keep firearms and ammunition on the premises.

(6) Swimming pools shall conform to state and local health and safety regulations. Adult supervision shall be provided at all times when children are using the pool.

(7) Facilities shall have policies regarding fishing ponds, lakes, or any bodies of water located on or near the program and accessible to the children.

3.25(20) Safety education. All programs shall have an organized safety education program.

a. The safety education program shall include, butnot be limited to, orientation of new employees to generalfacilitywide safety practices and orientation and continuing education regarding safety practices specific to individual departments or services at least annually.

b. The orientation and in-service education programs shall utilize findings of the quality improvement function and other appropriate standing committees, if applicable.

3.25(21) Outpatient facility. The outpatient facility shall be safe, clean, well ventilated, properly heated and in good repair.

a. The facility shall be appropriate for providing services available from the program and for protecting client confidentiality.

b. Furniture shall be clean and in good repair.

c. Written reports of annual inspections by state or local fire safety officials shall be maintained with records of corrective action taken by the program on recommendations articulated in such reports.

d. There shall be a written plan outlining procedures to be followed in the event of fire or tornado. This plan shall be conspicuously displayed at the facility.

3.25(22) Therapeutic environment. All programs shall establish an environment that enhances the positive self-image of clients and preserves their human dignity. The grounds of the program shall have adequate space for the program to carry out its stated goals. When client needs or program goals involve outdoor activities, these activities and programs shall be appropriate to the ages and clinical needs of the client.

a. All services shall be accessible to people with disabilities, or the program shall have written policies and procedures that describe how people with disabilities can gain access to the facility for necessary services.

b. The waiting or reception areas shall be of adequate size, have appropriate furniture, and be located so as to ensure confidentiality of clients in session or receiving services.

c. Program staff shall be available in waiting or reception areas so as to address the needs of clients and visitors.

d. The program may designate and identify with signs specific smoking areas, which shall allow smoking only in such designated areas.

3.25(23) Client rights. The program shall maintain written policies and procedures that ensure that the legal and human rights of clients participating in the program shall be observed and protected.

a. There shall be procedures to inform all clients of their legal and human rights at the time of admission into the program or when the client is deemed competent to receive them.

b. There shall be documentation of the implementation of these procedures.

c. There shall be written policies and procedures for reviewing and responding to clients' communications, e.g., opinions, recommendations, and client grievances with a mechanism for redress.

d. There shall be procedures designed to protect the clients' rights and privacy with respect to facility visitors, e.g., educational or other individual or group visitations at the program.

3.25(24) Administrative and procedural standards. The program shall comply with the following rules:

a. 643--3.2(125) Licensing.

b. 643--3.3(125) Type of licenses.

c. 643--3.4(125) Nonassignability.

d. 643--3.5(125) Application procedures.

e. 643--3.6(125) Application review.

f. 643--3.7(125) Inspection of licensees.

g. 643--3.8(125) Licenses--renewal.

h. 643--3.9(125) Corrective action plan.

i. 643--3.10(125) Grounds for denial of initial license.

j. 643--3.11(125) Suspension, revocation, or refusal to renew a license.

k. 643--3.12(125) Contested case hearing.

l. 643--3.13(125) Rehearing application.

m. 643--3.14(125) Judicial review.

n. 643--3.15(125) Reissuance or reinstatement.

o. 643--3.16(125) Complaints.

p. 643--3.17(125) Variances.

q. 643--3.18(125) Reserved.

r. 643--3.19(125) Funding.

s. 643--3.20(125) Inspection.

This rule is intended to implement Iowa Code section 125.13.

ARC 7664A

SUBSTANCE ABUSE COMMISSION[643]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 subsection 125.7(4), the Commission on Substance Abuse gives Notice of Intended Action to adopt Chapter 8, "Standards for Programs and the Operating a Motor Vehicle while Intoxicated (OWI) Law," Iowa Administrative Code.

This new chapter is proposed to establish rules for substance abuse treatment programs to implement changes to Iowa's OWI law to address the areas of screening, evaluation and treatment; costs; confidentiality; and records.

The Commission on Substance Abuse shall hold a public hearing on Thursday, December 11, 1997, from 10 a.m. to 12 noon over the Iowa Communications Network (ICN), accessing several sites around the state simultaneously. Individuals wishing to participate should contact Lois Borg at (515)242-6161 to receive confirmation of ICN availability at the following locations:

Iowa Western Community College, Continuing Education Building, ICN Room 2, 2700 College Road, Council Bluffs, Iowa 51501;

Department of Public Health, Third Floor, ICN Room 326, Lucas State Office Building, Des Moines, Iowa 50319-0075;

Muscatine Community College, Larson Hall, Room 60, 152 Colorado Street, Muscatine, Iowa 52761;

Buena Vista University, Room 7A, 610 West 4th Street, Storm Lake, Iowa 50588; and

Waterloo Regional Office, Iowa Department of Human Services, Pinecrest Office Building, 1407 Independence Avenue, Waterloo, Iowa 50703.

Any interested person or agency may submit written comments on or before Tuesday, December 9, 1997, to Janet Zwick, Division Director, Division of Substance Abuse and Health Promotion, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075.

These rules are intended to implement Iowa Code section 125.13.

The following chapter is proposed.

Adopt new 643--Chapter 8 as follows:

CHAPTER 8

STANDARDS FOR PROGRAMS AND THE OPERATING A MOTOR VEHICLE WHILE INTOXICATED (OWI) LAW

643--8.1(125) Definitions. Unless otherwise indicated, the following definitions shall apply to the specific terms used in these rules:

"Assessment" means the ongoing process of identifying a diagnosis, ruling out other diagnoses, and determining the level of care needed by the client.

"Department" means the Iowa department of public health.

"Evaluation" means the process to evaluate the client's strengths, weaknesses, problems, and needs for the purpose of defining a course of treatment. This includes use of a standardized placement screening and any additional patient/client profile information, and recommendation to an appropriate level of care.

"Facility" means a hospital, detoxification center, institution or program licensed under Iowa Code section 125.13, providing care, maintenance and treatment for substance abusers. Facility also includes the physical areas such as grounds, buildings, or portions thereof under direct administrative control of the program.

"Licensed" means issuance of a license by the department and the commission on substance abuse, which validates the licensee's compliance with substance abuse program standards and authorizes the licensee to operate a substance abuse program in the state of Iowa.

"Licensee" means any program licensed by the department.

"Posttreatment" means continuing care after primary treatment has been completed.

"Primary treatment" means substance abuse treatment modality including inpatient, primary residential treatment, extended residential treatment, medically monitored residential, extended outpatient, intensive outpatient, and partial hospitalization.

"Program" means any individual, partnership, corporation, association, governmental subdivision or public or private organization.

"Screening" means the process by which a client/patient is determined at risk and in need of further evaluation.The focus is on the minimum criteria necessary forappropriateness/eligibility.

"Shall" means the term used to indicate a mandatory statement and the only acceptable method under the present standards.

"Should" means the term used in the interpretation of a standard to reflect the commonly accepted method, yet allowing for the use of effective alternatives.

"Staff" means any individual who provides services to the program on a regular basis as a paid employee, agent, consultant, or as a volunteer.

"Substance abuser" means a person who habitually lacks self-control as to the use of chemical substances or uses chemical substances to the extent that the person's health is substantially impaired or endangered or that the person's social or economic function is substantially disrupted.

"Treatment" means the broad range of planned and continuing, inpatient, outpatient, residential care services, including diagnostic evaluation, counseling, medical, psychiatric, psychological, and social service care, which may be extended to substance abusers, concerned persons, concerned family members, or significant others, and which is geared toward influencing the behavior of such individuals to achieve a state of rehabilitation.

643--8.2(125) Screening, evaluation, and treatment. Persons who are convicted of operating a motor vehicle while intoxicated (OWI), Iowa Code section 321J.2, and persons whose driver's license or nonresident operating privileges are revoked under Iowa Code chapter 321J shall be assigned to undergo a substance abuse evaluation and, if recommended, treatment.

8.2(1) Screening. The initial screening shall consist of a generally accepted standardized substance abuse screening instrument. In addition, information on blood alcohol content at time of arrest; history of other alcohol or drug-related arrests; history of alcohol/drug treatment; history of mental health problems and treatment; any OWI arrest that included personal injury or additional charge(s); and family history of substance abuse shall be collected.

8.2(2) Evaluation. If the initial screening shows a potential for chemical dependency, then a further evaluation will be completed. This evaluation shall consist of further development of the six assessment dimensions outlined in the American Society of Addiction Medicine, Patient Placement Criteria for the Treatment of Substance-Related Disorders, Second Edition.

8.2(3) Treatment. Treatment will consist of a broad range of planned and continuing, inpatient, outpatient, residential care services, including ongoing diagnostic evaluation, counseling, medical, psychiatric, psychological, and social service care geared toward influencing the behavior of such individuals to achieve a state of rehabilitation. Individuals will be placed in the appropriate level of care in accordance with the American Society of Addiction Medicine, Patient Placement Criteria for the Treatment of Substance-Related Disorders, Second Edition.

643--8.3(125) Screening, evaluation, and treatment completion. Substance abuse screening, assessment, evaluation and treatment completion shall be reported to the department of transportation and to the district court in accordance with Iowa Code sections 125.37, 125.84 and 125.86 and the federal confidentiality regulations, "Confidentiality of Alcohol and Drug Abuse Patient Records," 42 CFR, Part 2, effective June 9, 1987.

8.3(1) Reporting form. Programs shall report screening, evaluation, and treatment completion utilizing the form "Notice Iowa Code 321J-Confidential Medical Record."

8.3(2) Primary treatment. Upon completion of primary treatment, programs shall report to the department of transportation and the courts that treatment has been completed.

8.3(3) Posttreatment results. If the court orders a posttreatment program, progress and attendance shall be reported to the person's probation officer or otherwise as ordered by the court.

643--8.4(125) Cost of evaluation and treatment.

8.4(1) Screening and evaluation. The cost of screening and evaluation shall be no more than $100 and the individual shall be responsible for the costs of the screening and evaluation.

8.4(2) Treatment. A person admitted to the program pursuant to Iowa Code section 321J.3 who does not possess sufficient income or estate to make payment of the costs of the treatment in whole or in part shall be considered a state patient and eligible for state-funded treatment as provided in Iowa Code section 125.44. Programs should utilize the department's statewide sliding fee schedule to determine cost of treatment. There is no prohibition on any individual from paying in whole the cost of treatment.

8.4(3) Programs shall be able to seek reimbursement of cost of screening, evaluation and treatment through an individual's insurance company, firm or corporation bound to pay, Medicaid for individual eligible or enrolled, or other forms of funding.

643--8.5(125) Timeliness. Substance abuse evaluations and treatment shall be conducted and completed as soon as possible.

643--8.6(125) Confidentiality. Programs will abide by federal regulations, "Confidentiality of Alcohol and Drug Abuse Patient Records," 42 CFR, Part 2, and Iowa Code section 125.37.

643--8.7(125) Records. Records shall be maintained for a minimum of five years after discharge or completion of service.

643--8.8(125) Reciprocity. For a resident of a state other than Iowa or an Iowa resident obtaining evaluation or treatment outside the state, screening, evaluation or treatment services shall be provided by programs licensed or approved by that state's substance abuse authority. The results of the screening, evaluation and treatment shall be submitted to the Iowa department of public health, division of substance abuse and health promotion, for review and reporting purposes to the Iowa department of transportation.

These rules are intended to implement Iowa Code section 125.13.

ARC 7644A

TRANSPORTATION DEPARTMENT[761]

Notice of Intended Action

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 [omega]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 sections 307.10 and 307.12, the Department of Transportation hereby gives Notice of Intended Action to amend Chapter 620, "OWI and Implied Consent," Iowa Administrative Code.

These amendments provide for substance abuse evaluation and treatment and a course for drinking drivers.

Any person or agency may submit written comments concerning these proposed amendments or may submit a written request to make an oral presentation. The comments or request shall:

1. Include the name, address, and telephone number of the person or agency authoring the comments or request.

2. Reference the number and title of the proposed rule, as given in this Notice, that is the subject of the comments or request.

3. Indicate the general content of a requested oral presentation.

4. Be addressed to the Department of Transportation, Director's Staff Division, 800 Lincoln Way, Ames, Iowa 50010; fax (515)239-1639.

5. Be received by the Director's Staff Division no later than December 9, 1997.

A meeting to hear requested oral presentations is scheduled for Thursday, December 11, 1997, at 10 a.m. in the conference room of the Motor Vehicle Division, which is located on the lower level of Park Fair Mall, 100 Euclid Avenue, Des Moines.

The meeting will be canceled without further notice if no oral presentation is requested.

These amendments are intended to implement 1997 Iowa Acts, chapter 177 [House File 707], sections 7 and 17.

Proposed rule-making actions:

ITEM 1. Amend rule 761--620.5(321J) as follows:

761--620.5(321J) Reinstatement. When the revocation period has ended, a person shall be notified by the department to appear before a driver's license examiner to obtain a motor vehicle license. A license The license may be issued if the person has:

620.5(1) Filed proof of financial responsibility with the department in accordance with under Iowa Code chapter 321A for all motor vehicles to be operated.

620.5(2) Paid the $200 victim reparation civil penalty.

620.5(3) Received a notice from the department ending the revocation.

620.5(3) Provided proof of satisfactory completion of a course for drinking drivers and proof of completion of substance abuse evaluation and treatment or rehabilitation services on a form and in a manner approved by the department.

620.5(4) Successfully completed the required driver license examination.

620.5(5) Paid the specified reinstatement fee.

620.5(6) Paid the appropriate license or permit fee.

ITEM 2. Amend 761--Chapter 620 by adding new rule 761--620.15(321J) as follows:

761--620.15(321J) Substance abuse evaluation and treatment or rehabilitation services. When the department revokes a person's license under Iowa Code chapter 321J, the department shall also order the person to submit to substance abuse evaluation and, if recommended, treatment or rehabil-itation services. A provider of substance abuse evaluation and treatment or rehabilitation programs shall be licensed by the Iowa department of public health, division of substance abuse. A provider of a substance abuse evaluation who is not licensed by the Iowa department of public health may be granted provisional authority by the Iowa department of public health to conduct a substance abuse evaluation required under Iowa Code chapter 321J. To obtain provisional authority, the provider must apply for a license to the Iowa department of public health accompanied by a recommendation from the district court having jurisdiction for the offense. Provisional authority will expire on July 1, 1998.

620.15(1) Reporting.

a. A provider of a substance abuse program shall report to the department on a form and in a manner approved by the department when a person who has been ordered to attend the program has satisfactorily completed the program.

b. Reporting to the department shall be in accordance with Iowa Code sections 125.37, 125.84 and 125.86 and the federal confidentiality regulations, "Confidentiality on Alcohol and Drug Abuse Patient Records," 42 CFR Part 2, effective June 9, 1987.

620.15(2) Payment. Payment of substance abuse evaluation and treatment or rehabilitation costs shall be in accordance with Iowa department of public health rules.

ITEM 3. Amend 761--Chapter 620 by adding new rule 761--620.16(321J) as follows:

761--620.16(321J) Drinking drivers course. When the department revokes a person's license under Iowa Code chapter 321J, the department shall order the person to enroll, attend and satisfactorily complete a course for drinking drivers, as provided in Iowa Code section 321J.22.

620.16(1) Reporting.

a. A community college conducting a drinking drivers course shall report to the department on a form and in a manner approved by the department when a person who has been ordered to attend the course has successfully completed it.

b. Reserved.

620.16(2) Payment. A person ordered to complete a drinking drivers course is responsible for payment of course fees and expenses in accordance with Iowa Code section 321J.22.

ITEM 4. Amend 761--Chapter 620, implementation clause, as follows:

This chapter of rules is intended to implement Iowa Code chapters 17A and 321J and section sections 321.376 and 707.6A and 1997 Iowa Acts, chapter 177.

ARC 7658A

WORKFORCE DEVELOPMENT BOARD/SERVICES DIVISION[877]

Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code [omega]17A.4(1)"b."

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
[omega]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 sections 84A.1B(9) and 96.11, the Department of Workforce Development hereby gives Notice of Intended Action to rescind 345--Chapter 14, "Iowa Job Training Partnership Program," and adopt 877--Chapter 12, "Iowa Job Training Partnership Program," Iowa Administrative Code.

On October 15, 1997, the Workforce Development Board approved the proposed new chapter. The new chapter updates the changes in federal law and streamlines the chapter to make it more understandable for county officials, administrators, and participants.

Public comments concerning the proposed new chapter will be accepted until 4:30 p.m. on December 9, 1997, for written comments. Interested persons may submit written or oral comments by contacting: JoAnn Callison, Office of Workforce Development Policy, Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309; telephone (515)281-9017.

A public hearing to receive comments about the proposed chapter will be held at 10 a.m. on December 9, 1997, at the above address in Room 135. Individuals interested in providing comments at the hearing should contact JoAnn Callison (515)281-9017 by 4 p.m. on December 8, 1997, to be placed on the hearing agenda.

These rules are intended to implement Iowa Code chapters 7B and 84A and P.L. 97-300 as amended by P.L. 102-367.

The following amendment is proposed.

Rescind 345--Chapter 14 and adopt the following new 877--Chapter 12:

CHAPTER 12

IOWA JOB TRAINING PARTNERSHIP PROGRAM

877--12.1(7B,PL97-300,PL102-367) Assumption of responsibility. Effective July 1, 1996, the department of workforce development was designated the department responsible for activities and services under the Job Training Partnership Act (P.L. 97-300 as amended by P.L. 102-367). The JTPA administrative functions previously performed by the department of economic development were transferred to the department of workforce development by Iowa Code chapter 84A.

877--12.2(7B,PL97-300,PL102-367) Purpose. The purpose of the Iowa Job Training Partnership Act program is to establish programs to prepare youth and unskilled adults for entry into the labor force and afford job training to those economically disadvantaged individuals and others facing serious barriers to employment who are in special need of and will benefit from the training to obtain productive employment.

877--12.3(7B,PL97-300,PL102-367) Definitions. The following definitions apply to this chapter and the Iowa Job Training Partnership Act program unless the context otherwise requires:

"Act" means the Job Training Partnership Act, P.L. 97-300, as amended by P.L. 102-367.

"Administrative capacity" means the positions that have overall administrative responsibility for selection, hiring, placement, or supervisory responsibilities regarding participants served or staff hired under a grant agreement.

"Administrative entity" means the organization, corporation, agency or unit of government designated under an agreement between a private industry council and representative(s) of the parties to an Iowa Code chapter 28E agreement to manage and execute a job training plan in a service delivery area of the state.

"Chief elected official (CEO)" means the local elected official who is selected from the participating units of government in the service delivery area (SDA) to act as their authorized representative. In the case of a service delivery area, this would be the chairperson of the local elected officials' JTPA board. For the state, the CEO is the governor.

"Community-based organizations (CBO)" means private nonprofit organizations which are representative of communities or significant segments of communities and which provide job training services. Examples include United Way of America, neighborhood groups and organizations, community action agencies, community development corporations, vocational rehabilitation organizations, rehabilitation facilities (as defined in Section 7(10) of the Rehabilitation Act of 1973), tribal governments, and agencies serving youth, persons with disabilities, displaced homemakers, or on-reservation Indians.

"Department" or "DWD" means the department of workforce development, which has been designated as the state administrative entity to administer the Job Training Partnership Act on behalf of the governor.

"Grant recipient" means the organization, corporation, agency or unit of government designated under an agreement between a private industry council and representative(s) of the parties to a 28E agreement to receive Job Training Partnership Act funds on behalf of a service delivery area of the state.

"Local elected officials (LEO)" means county supervisors, except with respect to contiguous municipal corporations with a population of 200,000 or more that serve a substantial part of a labor market, in which case the mayor of that municipality(ies) is also a "local elected official." LEOs must approve the local service delivery area's local training plans and modifications before they are submitted to the governor.

"Local training plan" means a written program of action approved by the governor which delineates the method of operation and proposed budget for a JTPA program in a service delivery area. The two types of local training plans are:

1. The Job Training Plan (JTP) is the designation given to the plan for the Title IIA and IIB programs.

2. The Title III Dislocated Workers Plan is the designation given to the plan which describes the Dislocated Worker Center program.

"Private industry council (PIC)" means the group of persons in a service delivery area appointed to oversee (review, monitor, and evaluate) the programs conducted pursuant to that service delivery area's local training plans. The PIC must also approve the local service delivery area's local training plans and modifications before they are submitted to the governor.

"Service delivery area (SDA)" means those regions in which the state is divided and through which job training services are delivered. Each SDA must have a PIC, a LEO 28E agreement, a LEO/PIC agreement, a job training plan, a grant recipient, an administrative entity, and service providers.

"Service provider" means any person, organization, or other entity which receives a contract (financial or nonfinancial) under JTPA through an SDA grant recipient or JTPA grantees or contractors to carry out substantive work (e.g., employment, training, support services, purchases of supplies or equipment).

"Subrecipient" means any person, organization or other entity which receives financial assistance under JTPA through an SDA grant recipient. In a service delivery area where the grant recipient and administrative entity are separate entities, the term "subrecipient" includes the administrative entity.

"Workforce development board" or "WDB" means the board appointed by the governor pursuant to Iowa Code chapter 84A.

877--12.4(7B,PL97-300,PL102-367) Service delivery ar-ea designations.

12.4(1) Governor's proposed service delivery areas. After receiving the recommendations of the workforce development board, the department of workforce development shall publish in a daily newspaper of general circulation in the state the governor's proposed designation of service delivery areas.

12.4(2) Public comment. Units of local government, business organizations, and other affected persons or organizations may make written comments on the proposed service delivery areas to the Policy Office, Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309, within 30 days from the date of publication or a date designated by the department which allows at least 30 days for comment.

12.4(3) Petitions for alternative service delivery area designation. Within 30 days from the date of publication of the governor's proposed designation of service delivery areas or a date designated by the department which provides at least 30 days for response, any unit of general local government or consortium of contiguous units of general local government which serves a substantial portion of a labor market area may petition for alternative service delivery area designation. Petitions under this subrule shall be submitted to the Policy Office, Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309, and shall include:

a. The name or names of the unit or units of general local government in the proposed alternative service delivery area.

b. The aggregate population of that unit or units according to the 1990 U.S. Census data.

c. In the case where the proposed alternative service delivery area contains more than one unit of general local government or less than 200,000 aggregate population, a statement describing how the proposed alternative service delivery area serves a substantial portion of a labor market area.

d. A statement indicating how the proposed alternative service delivery area will promote effective delivery of job training services.

e. In the case where the proposed alternative service delivery area represents a consortium of units of general local government, a letter of intent must be executed by each unit of general local government in the proposed alternative service delivery area, which indicates that each unit endorses the petition and will amend its consortium agreement to conform to Iowa Code chapter 28E and these rules.

12.4(4) Appeal of petition for alternative service delivery area designation. When the governor denies a petition for alternative service delivery area designation, which alleges the petitioning unit of general local government has a population of 200,000 or more, or the petitioning consortium of contiguous units of general local government has an aggregate population of 200,000 or more and serves a substantial part of a labor market area, the petitioning entity may appeal the denial to the Secretary, U.S. Department of Labor, Washington, D.C. 20210. To be heard, the appeal must be filed within 30 days of receipt of such denial.

12.4(5) Publication of final service delivery area designations. After the governor makes a final designation of service delivery areas in the state, the department of workforce development shall publish a notice of the final designations in a daily newspaper of general circulation in the state.

877--12.5(7B,PL97-300,PL102-367) Service delivery ar-ea redesignation.

12.5(1) An SDA will be redesignated by merging its counties into one or more other SDAs if the PIC and the appropriate chief elected official or officials fail to reach an agreement on the PIC/LEO agreement or the job training plan, or if all units of local government choose not to participate in an SDA, or if they are unable to find a grant recipient.

12.5(2) The governor may act as the chief elected official in an SDA that is to be redesignated until redesignation occurs.

12.5(3) Redesignation will occur no later than March 1 prior to the program year in which the redesignations will be effective.

877--12.6(7B,PL97-300,PL102-367) Consortium agreements.

12.6(1) Submission date. Subject to subrules 12.6(2) and 12.6(3), units of general local government in a service delivery area shall jointly submit a consortium agreement which satisfies Iowa Code chapter 28E within 30 days from the date of publication of the service delivery area designation.

12.6(2) Extension. Where the units of general local government provide evidence of just cause, the governor may, at the governor's discretion, extend the 30-day consortium agreement submission date.

12.6(3) Election not to participate. Where a unit of general local government in a service delivery area does not wish to participate in the Iowa Job Training Partnership Act program by entering a consortium agreement, the unit shall by board resolution or other appropriate legal action indicate its election not to participate. Proof of adoption of a resolution electing not to participate shall be submitted within 30 days of the publication of the final service delivery area designation to the governor. Such election shall be effective for one year.

12.6(4) Elements of LEO agreements. In addition to conforming to Iowa Code chapter 28E, each JTPA 28E LEO agreement must contain the following elements:

a. Designation of the person or persons who will serve as the chief elected official(s) who will be responsible for making appointments to the PIC, developing an agreement with the PIC, approving and signing local training plans, and negotiating with the PIC.

b. Apportionment of responsibility and liability among the participating units of government for any losses, expenses, and burdens which may result from the consortium involvement in the JTPA program.

12.6(5) Consortium agreement approval. Before a consortium agreement shall be operational, it shall be submitted to and approved by the Division of Workforce Development Center Administration, Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309.

877--12.7(7B,PL97-300,PL102-367) Private industry council. Within each service delivery area there shall be established a private industry council. Appointees to public and nonprofit sector positions on a private industrial council shall exclusively represent one and only one organization or agency. Appointees to private sector positions on a private industry council shall exclusively represent the private sector.

12.7(1) Composition of the PIC.

a. There must be a minimum of 17 members on each PIC and the private sector representatives must constitute amajority of the membership. The required members include 9 members from the private sector, 3 members fromcommunity-based organizations and organized labor, and 1 representative from each of the following public agencies: education, vocational rehabilitation, public assistance, public employment service and economic development.

b. In order to maintain the partnership between the PIC and LEOs, the following LEOs may not serve on the PIC.

(1) A member of a unit of government which is a party to a JTPA 28E LEO agreement and

(2) Designated as a chief elected official or

(3) Is a member who serves in an executive capacity for the LEOs. Executive capacity is defined as:

A member of a LEO executive board,

1. A member of a LEO executive committee, or

2. A member of another LEO executive body which has the authority to negotiate with the PIC, approve the PIC/LEO agreement, vote to approve/disapprove the SDA's job training plan developed by the PIC, or act on behalf of the LEOs in the partnership with the PIC.

c. It is permissible for a local elected official to serve on the PIC if:

(1) The individual represents one of the eight groups designated in the Act, is nominated and appointed in a manner consistent with the Act and is not serving on a LEO board in an executive capacity as defined in 12.7(1)"b"(3) above, or

(2) The individual is serving in an executive capacity, but is serving on the PIC as a non-voting member.

12.7(2) Selecting PIC members.

a. Whenever a new position is created or a vacancy occurs on a PIC for any reason, the division administrator of the division of workforce development center administration must be notified in writing of the vacancy within seven days of vacancy. This notification must come from the chief elected official (CEO) or someone designated by the CEO to notify the department.

b. The chief elected officials must appoint a new member to fill the position and submit a "Request for Private Industry Council Certification" to the department within 45 days of the position's becoming open.

c. Printed copies of "Request for Private Industry Council Certification" forms shall be available from the Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309. This form shall be used by the official(s) who appointed the private industry council in each service delivery area when applying for private industry council certification. All information requested by the form must be completed. When requested, the official(s) submitting the request for certification shall also submit copies of letters of nomination for all nominees to the private industry council.

12.7(3) PIC nomination process.

a. Nominations to the nonprofit or public PIC positions must come from the interested organizations. For example, nominations to education positions must come from educational agencies and institutions, and labor representative position nominees must come from recognized state and local labor organizations.

b. Nominations are good for 90 days. After the 90-day period, nominations expire and must be resubmitted.

12.7(4) Appointment and certification.

a. After selecting PIC members from the nominees submitted, local elected officials must submit those names to the department for certification.

b. Whenever a PIC is not composed of the required representatives as specified in 12.7(1), the PIC is out of compliance with the Act.

c. If the appointment and request for certification are not completed within the 45-day time period, the PIC will be found in nonconformance and the procedure for PIC decertification will be initiated, unless the vacant position is not one of the required 17 positions listed in 12.7(1).

d. A newly appointed PIC member may not vote on issues before the PIC until the department certifies the appointment of that member.

e. No change in the size, membership, chair or composition of a PIC shall be valid and effective until approved in writing by the department.

12.7(5) PIC decertification. If at any time the department determines that a PIC does not conform, it shall give that PIC a written notice of nonconformance which states the deficiency and allows a period of time in which to correct the deficiency. Failure to satisfy the notice of nonconformance within the time period allowed is grounds for the decertification of the PIC.

877--12.8(7B,PL97-300,PL102-367) Private industry council/local elected official agreement. The local JTPA program is operated as a partnership between the PIC and LEOs. This partnership is formed by an agreement between the PIC and LEOs which outlines procedures for developing the local job training plans for all JTPA titles and programs in the SDA and which provides for the selection of the grant recipient, administrative entity and Title III grantee.

12.8(1) Elements. The PIC/LEO agreement must include, at a minimum, the following elements:

a. Local training plan development procedure. The agreement must include a determination as to who (e.g., PIC members, elected officials, grant recipient staff, administrative entity staff, and consultants) will be involved in the preparation of the various job training plans.

b. Selection of Title III grantee. The agreement must describe the required request for proposal procedure that will be used to select the Title III grantee.

c. Selection of the grant recipient and administrative entity for Title II. The agreement must specify which entity or entities will act as the grant recipient and administrative entity for the Title II programs or how they will be chosen.

d. Policy guidance. The PIC and LEOs must agree on how policy guidance will be provided for the SDA's JTPA program. This effort could entail periodic meetings between representatives of each group to coordinate their policy recommendations for the administrative entity. Alternatively, either group could be designated to take the lead in guiding policy and establishing a systematic method to keep the other group informed and provide for its input.

e. Oversight. Both the PIC and the LEOs are responsible for oversight of the program. The agreement must state who will conduct oversight, how and when it will occur. Oversight is defined as reviewing, monitoring, and evaluating the JTPA program within the SDA. The PIC and LEOs may perform the oversight function jointly or the PIC may take the lead and keep the LEOs informed.

f. Lines of communication. Regardless of how the LEOs and the PIC decide to coordinate individual responsibilities, the agreement must contain the method used by the PIC and the LEOs to keep each other informed. These procedures could include an indication of who is responsible for initiating communication, at what intervals, by what means (for example, personal meetings and written reports), and issues needing review on a regular basis.

g. Development of the local workforce development plan. The Act requires the local workforce development plan to be developed jointly with the LEOs and the PIC in each SDA. The agreement must indicate the procedure for participating in the development of the workforce development plan.

h. Period of agreement. The period of time covered by the agreement must be defined.

12.8(2) Revisions or modifications.

a. The LEO/PIC agreement should be reviewed and modified, as necessary, prior to the planning cycle each program year.

b. If the LEO/PIC agreement is rewritten or modified, a copy of the agreement must be sent within 30 days of its execution to: Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309.

12.8(3) Certifications. All grantees must certify, as a condition to receive funding, compliance with the following laws and implementing regulations:

a. Job Training Partnership Act (PL 97-300) and amendments contained in PL 1022-367.

b. U.S. Department of Labor (DOL) implementing regulations as described in 20 CFR 626 et. al.

c. Age Discrimination Act of 1964 (PL 88-352) and DOL implementing regulations.

d. Civil Rights Act of 1964 (PL 88-352) and DOL implementing regulations.

e. Equal Employment Opportunity Commission Policy Statement (2/26/87) and 29 CFR Part 34.

f. Education Amendments of 1972 (PL 92-318) and DHEW implementing regulations.

g. Rehabilitation Act of 1973 (PL 93-112) and DOL implementing regulations.

h. Americans With Disabilities Act of 1990 (PL 99-603) and Department of Justice implementing regulations (8 CFR 274a).

i. Immigration Reform and Control Act of 1986 (PL 99-603) and Department of Justice implementing regulations (8 CFR 274a).

j. Military Selective Service Act, Section 3, and Selective Service registration information and forms.

k. DOL Nonprocurement, Debarment, and Suspension regulations (49 CFR Part 29).

l. Iowa Code chapter 7B.

m. Iowa Administrative Code 877--Chapter 12.

n. Iowa Civil Rights Act of 1965, as amended.

o. Federal Executive Order Number Fifteen - Code of Fair Practices (4/2/73).

p. Federal Executive Order Number Eleven - Amendments to Executive Order Number 15 (3/30/84).

q. Other relevant regulations as noted in the JTPA handbook for grantees.

877--12.9(7B,PL97-300,PL102-367) Plan requirements.

12.9(1) Job training plan. Pursuant to rule 12.8(7B, PL97-300,PL102-367), each service delivery area shall develop a job training plan signed by the chairperson of the PIC and the chief elected official(s). Plan development instructions will be issued to the SDAs prior to the effective date of the local training plan submission. The instructions will include guidelines for and explanations of the planning information requested. Plan development must be conducted in coordination with the other SDAs, regional advisory boards, the department, local school districts, and other local agencies, including at a minimum, the department of human services, vocational rehabilitation, area agency on aging, and the community action agency.

a. Where submitted. The job training plan and all modifications shall be submitted to the Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309.

b. Submittal date. The job training plan shall be submitted no later than May 1 of each program year. An original and four copies of the final plan must be submitted.

c. Failure to submit or gain approval.

(1) The human resource investment council committee of the WDB will approve or disapprove the job training plan within 30 days of submittal.

(2) If a plan is disapproved, the disapproval will be provided to the PIC and LEOs in writing, detailing the reasons for the disapproval and revisions required to approve the plan. Any required revisions shall include only pages that need changes. The entire plan does not need to be resubmitted. The revision must be clearly marked and resubmitted within 20 days from the date of disapproval.

(3) Revisions must be signed by the PIC chairperson and chief elected official. After revisions are submitted, the final determination approving or disapproving the plan will be made within 15 days.

d. Local documentation. Each party to the job training plan shall adhere to the job training plan public review and comment process, shall document adherence and retain copies of all written comments received. Proof of publication of the availability of the proposed and final job training plan for public review shall accompany each job training plan submitted.

e. Modifications. Modifications to a job training plan may be made when:

(1) Agreed to and signed by the PIC and the local elected official(s);

(2) Published no later than 80 days before it is effective; and

(3) Approved by WDB prior to implementation.

12.9(2) Title III dislocated workers plan.

a. Funds are allocated under Title III for the statewide operation of programs providing activities and services to dislocated workers. Programs will be operated in each service delivery area through a dislocated worker center which will be selected by the PIC and LEOs through a request for proposal (RFP) process that meets state procurement standards.

b. By March 3 of each program year, each SDA must publish a notification that the Title III plan is being drafted in at least one newspaper of general circulation. The notification must solicit comments from appropriate local educational and other public agencies and labor organizations in the area representing employees having the skills for which training is proposed.

12.9(3) Workforce development plan. The Wagner-Peyser Act, which establishes the national public employment service system, requires the department to develop a workforce development plan for each SDA in cooperation with the PIC and chief elected official(s). The LEO/PIC agreement establishes procedures for the cooperative development of the plan.

Each program year the department will issue a technical assistance guide (TAG) explaining the procedures for completing the local workforce development plan. For planning purposes, the amount of the Wagner-Peyser allocation for each SDA will be provided to the PIC's workforce development representative within 30 days of notification to the governor. The state will also publish the substate resource distributions in a newspaper of general circulation.

a. Cooperative efforts. Each local workforce development plan must be developed taking into consideration proposals developed jointly by the PIC and LEOs. The workforce development representative on the PIC serves as the department coordinator in this effort.

b. Plan submittal, review and approval process.

(1) The workforce development plan must be submitted by the date established in the workforce development TAG. An original and two copies must be sent to:

Department of Workforce Development

150 Des Moines Street

Des Moines, IA 50309

(2) Workforce development board review. After approval by the PIC and LEOs, each workforce development plan will be reviewed by the human resources investment council committee of the workforce development board. The human resource investment council committee will determine if the components of the plan have been jointly agreed to by the department, the PIC, and LEOs and if the plan is consistent with the 5- and 20-year state plans for workforce development.

If the WDB determines the above provisions have not been met, the plan will be returned to the department with the WDB's recommendations for it to consider jointly with the PIC and LEOs. Thirty days from the date of written notification that the plan cannot be approved are permitted to modify and resubmit the plan.

c. Failure to agree. If agreement cannot be reached between the department, the PIC and LEOs, the plan may be submitted to the WDB and Secretary of Labor and must be accompanied by the proposed modifications as recommended by the disagreeing parties. In such cases, the WDB must inform the Secretary of Labor of its recommendations for resolution of the disagreement.

d. Governor's review. The governor is permitted to review and transmit to the Secretary of Labor proposed modifications of any workforce development plans.

877--12.10(7B,PL97-300,PL102-367) Grant agreements. Upon department approval of a plan, the department will issue a grant agreement. The grant agreement shall be between the department and the designated grant recipient. The grant recipient shall retain responsibility for ensuring that the administration of the program meets all applicable federal and state requirements even when subcontracting or designation of other entities to perform JTPA activities and services. These rules and applicable federal and state laws and regulations and the provisions of the Iowa JTPA handbook and handbook updates must be incorporated by reference in each grant agreement. The department shall hold grantees, including SDA grant recipients, responsible for JTPA funds received through the grant. The grantees shall hold subgrantees and subrecipients responsible for JTPA funds received through the grant.

877--12.11(7B,PL97-300,PL102-367) Incentive grant award system. Exceptional performance in the Title IIA and Title IIC programs is recognized and rewarded through an incentive grant system. Section 202(b)(3) of the Act reserves 5 percent of each state's Title IIA funds to provide incentive grants to SDAs which demonstrate superior performance and to provide technical assistance to those SDAs which do not qualify for incentive grants.

12.11(1) Division of funds.

a. If there are any incentive funds from previous program years which must be awarded due to a redetermination, the amount of those funds will be subtracted from the available funds for the current year.

b. Incentive grant funds are divided into two categories:

(1) Thirty-three percent of the funds are reserved by the department to provide technical assistance;

(2) Sixty-seven percent of the funds available are apportioned into formula shares for each SDA using the regular Title IIA formula. These SDA formula shares are further subdivided into specific dollar amounts corresponding to the eight Title IIA performance measures. The department will assign percentage weights to each of the eight performance measures.

12.11(2) Data requirements and time line for incentive awards.

a. The determination of actual performance achievement on the eight performance standards and subsequent incentive awards will be based upon data contained in the management information system (MIS). All final program year data must be entered in the MIS and a final JTPA annual status report generated no later than August 15 following the end of the program year. The information contained on this report will be used for incentive award determinations. No updates to this data will be permitted unless authorized by the department.

b. The initial determination of incentive awards will be made no later than September 1 following the end of the program year. By that time each grantee will be notified of its initial performance and incentive award determination. The grantee will be allowed 15 days to respond to the initial determination. The grantee's response is to be limited to the calculation of the awards. A final determination and the awarding of incentive funds will occur no later than October 1 following the end of the program year.

c. The department reserves the authority to adjust the time lines to award incentive funds if exceptional circumstances warrant an adjustment.

12.11(3) Qualification for incentive awards. To be eligible for an incentive award for any performance measure, a grantee must exceed the base performance standard.

12.11(4) Determination of incentive award amounts.

a. If an SDA qualifies for incentive funds for a given performance measure, its share of the dollars for that measure is combined with the shares of all qualifying SDAs to establish the total incentive funds available for that performance measure. These funds are then divided as described in paragraph "c."

b. If an SDA does not qualify for incentive funds for a given performance measure, its share of those dollars reverts to the department to provide technical assistance to the SDAs that do not qualify for incentive grants. These funds will be pooled and the department will determine how these funds are to be expended for technical assistance. If any of these funds are not expended during the program year, the funds will be carried forward and added to incentive awards in the following program year.

c. The amount awarded to an SDA for each performance measure exceeded will be determined as follows:

(1) The percent each SDA exceeded the performance standard is calculated. These figures are converted into a percent of the total for each of the qualifying SDAs. This percent represents the portion of the total funds for that performance measure each SDA would be entitled to without reductions. This calculation is performed for each of the eight performance measures. An SDA's total incentive award will be the sum of its share of the funds in each of these measures.

(2) An SDA's incentive award may be reduced for any of the following reasons: low expenditure rates; failure to meet service level requirements for dropouts; failure to meet service level requirements for WIN registrants; or late submittal of a required report. An SDA's incentive award will not be reduced to less than 10 percent of its incentive award.

12.11(5) Redistribution of reduced awards. The department will redistribute those funds which are reduced from an SDA's incentive awards. The procedure for redistributing these funds will be developed by the department and priority will be given to those SDAs whose incentive awards were not reduced. The department will provide a written description of the redistribution calculation to each SDA.

12.11(6) Distribution of funds.

a. Incentive awards, including incentive funds which are redistributed, may not exceed an amount equal to 50 percent of an SDA's formula allocation of new program year funds for Title IIA.

b. Actual distribution of the funds will occur after the end of each program year when final performance standards are calculated. At that time, each SDA's Title IIA performance will be compared against its standards to determine eligibility for, and the amount of, incentive awards.

c. Incentive awards granted during any program year will be distributed based upon performance from the previous program year.

877--12.12(7B,PL97-300,PL102-367) Reallocation process. In order to avoid the loss of JTPA funds to the state, the department will reallocate Title IIA, IIB and III funds. The department will redistribute carryover funds in accordance with the formula and procedures developed by the department. The department's reallocation formula and procedures will be distributed to the SDAs in writing.

877--12.13(7B,PL97-300,PL102-367) Financial management. Each JTPA grantee must provide fiscal controls and accounting procedures sufficient to prepare required reports, demonstrate compliance with matching requirements, and trace funds to ensure compliance with the Act, state and federal regulations, and general grant agreement provisions.

12.13(1) A financial management system must include:

a. Adequate administrative and internal controls to safeguard funds;

b. Procedures to ensure that expenditures are planned, controlled, recorded, and reported against the following: training, participant support, and administrative cost categories; the total of each Title or program; and adult and youth for Title IIA and 6 percent funds;

c. Procedures to ensure that expenditures are reported by the following: each funding source listed in the budget summary; program year; cost category; and adult and youth for Title IIA and 6 percent funds;

d. Financial records that accurately and properly reflect program costs by allowable cost categories;

e. Procedures to ensure timely and accurate reporting;

f. Procedures to ensure compliance with cost provisions of the Act, state and federal regulations, and grant agreement general provisions;

g. Procedures to determine that costs incurred are necessary, reasonable, and allocable to the program;

h. Procedures for determining allowable costs;

i. Procedures that ensure that cash on hand is kept to a minimum;

j. Procedures to identify program income including controls to ensure the proper reporting, use, and accountability of those funds;

k. Procedures for determining allowable match including documenting and reporting match;

l. Information needed to evaluate the effectiveness of the program; and

m. Procedures for maintaining time and attendance rec-ords.

12.13(2) An accounting system must use generally accepted accounting principles to control and account for JTPA funds to ensure JTPA moneys are used in accordance with the Act, state and federal regulations, and grant agreement provisions. An accounting system must include procedures for:

a. Coding of expenses to the following: grants; total of each Title and program; cost categories within each Title and program; and adult and youth for Title IIA and 6 percent funds;

b. Reviewing, editing, and approving expenditures for accuracy, allowability and allocability;

c. Reconciling books of account with bank statements;

d. Posting transactions to books of account;

e. Preparing trial balances;

f. Preparing financial reports by grant, funding source as listed in the budget summary, program year, cost category, and adult and youth for Title IIA 6 percent funds;

g. Maintaining a petty cash system if one is used;

h. Maintaining a cash receipt and disbursement system;

i. Distributing joint costs;

j. Safeguarding unsigned and signed checks; and

k. Maintaining a payroll system.

12.13(3) Program income. Any JTPA program income generated must be reported monthly to the department. Each grantee will be notified regarding action that must be taken with income generated.

12.13(4) Administrative cost pool. Administrative funds received under all JTPA titles may be used to form an administrative cost pool. However, the actual reporting of administrative costs must be by title or program. A cost allocation plan may be used to distribute the joint costs to titles and programs for reporting purposes. The plan must be in place prior to the pooling of administrative costs.

12.13(5) Bonding. An individual who is authorized to act on behalf of a grantee for the purpose of receiving or depositing JTPA funds into program accounts or issuing financial documents, checks, or other instruments of payment for program costs must be covered, at a minimum, by a fidelity bond equal to the lower of $100,000 or the highest advance or reimbursement received through check or drawdown during the term of a grant agreement.

12.13(6) Indirect cost rates. Indirect costs may be charged to a JTPA grant if the grantee has an approved indirect cost agreement with a federal cognizant agency and the agreement covers the term of the grant. Up to 10 percent of salaries and fringe benefits, excluding participant salaries and fringe benefits, or the approved rate, whichever is less, may be charged to a JTPA grant.

12.13(7) Time and attendance records. Time and attendance records must be maintained for any individuals who receive any part of their wage from JTPA funds, including participants, and for all participants who receive tryout employment compensation, needs-based payments, or support service payments which are made directly to the participant. Time coding or allocation plans must be used for all personnel receiving payment from more than one fund or JTPA Title or program.

12.13(8) Matching. The state education coordination and grants program (8 percent) and the Title III employment and training assistance for dislocated workers require matching funds be identified by a total amount equal to the amount provided pursuant to Sections 123(b) and 304 of the Act. Local grantees and contractors must assist the state in meeting these matching requirements. The Title III match must be made from nonfederal sources, whereas the 8 percent match may use both nonfederal and federal (non-JTPA) fund sources.

Matching requirements may be satisfied by cash contributions or by in-kind contributions identified and are used to provide services to JTPA participants. In-kind matching contributions for the state education coordination and grants program may be used in support of participants enrolled in the 8 percent program only. In-kind matching for the Title III program must be linked to participants enrolled in Title III.

12.13(9) Close-out. Each grantee must complete and submit the following documents as provided by the department within 45 days of the end date of the grant agreement:

a. A grantee/contractor submittal of close-out documents form;

b. A request for reimbursement form;

c. A periodic financial status report form;

d. A grantee/contractor release form; and

e. An inventory of JTPA-related property.

12.13(10) Monitoring. These monitoring requirements are intended to promote effective use of public funds and to provide procedures to ensure the objectives of the program are met.

a. The grantee must perform financial and program compliance monitoring at reasonable intervals.

b. The monitoring system must be designed to determine if the program and financial operations comply with all applicable laws and regulations. The monitoring system must include provisions for checking:

(1) Financial management;

(2) Participant eligibility determination;

(3) Program and plan compliance;

(4) Equal opportunity compliance; and

(5) Participant files.

c. A monitoring report on each entity must be prepared and maintained along with documentation of corrective action.

877--12.14(7B,PL97-300,PL102-367) Auditing. Each grantee must submit to the department an annual list of all subrecipient contracts including the name of the subrecipient, the dollar amount of the contract, the contract number, and a description of the contract.

12.14(1) Annual audit. Each grantee must perform an annual independent financial and compliance audit of funds received by the grantee and its subrecipients. All costs incurred with the audit are the responsibility of the grantee. The grantee must ensure that the following are audited:

a. The grantee;

b. For Title II grants, the administrative entity, if different from the grantee;

c. All subrecipient contracts of $25,000 or more;

d. Five percent of all remaining subrecipient financial contracts;

e. Five percent of all remaining participant files for eligibility and financial transactions.

12.14(2) Audit procedures.

a. Grantees must provide the information contained in the Auditing section of the Iowa JTPA handbook to the auditor selected to do the JTPA audit.

b. The auditor must determine whether the financial statements of the audited entity accurately represent the financial position and the results of financial operations in accordance with generally accepted accounting principles applicable to governmental agencies.

c. Each audit must determine whether the audited entity has complied with the JTPA, applicable DOL regulations and state administrative rules.

d. All audits must be conducted in accordance with applicable auditing standards set forth in the financial and compliance element of the Standards for Audit of Governmental Organizations, Programs, Activities and Functions.

12.14(3) Audit tests. At a minimum, each audit must include a test for compliance with applicable federal and state laws and regulations in the following areas:

a. Allowability of costs;

b. Classification of costs;

c. Cost limitations by category;

d. Expenditure requirements for the state education and coordination and grants programs and the Title IIA adult and youth program funds;

e. Participant record keeping and documentation;

f. Grantee monitoring procedures;

g. Reporting requirements;

h. Program income;

i. Matching requirements for Title III and state education coordination and grants programs.

12.14(4) Audit resolution procedures. The department shall hold grantees liable for JTPA funds received through the grant. Grantees are responsible for audit resolution involving their subgrantees. This procedure shall be used by the department to resolve audit findings contained in grantee audits.

a. Grantee audit resolution.

(1) Grantees are liable to the state for any misexpenditure of JTPA funds received through the grant.

(2) Grantees are responsible for audit resolution involving their subgrantees including affording the subgrantee an opportunity for a hearing under the local grantee complaint procedure.

(3) Prompt, appropriate, and aggressive debt collection action by the grantee to recover any funds misspent by subgrantees shall be considered a part of the corrective action.

(4) If a grantee requests a waiver under 12.14(4)"f," the grantee shall not be released from liability for misspent funds of their subgrantees until DOL accepts the state's audit resolution and corrective action report concerning the waiver by the state. If DOL rejects the state's waiver, the grantee remains liable to the state for the misspent funds.

b. Initial determination.

(1) For each final audit report received from each grantee, an initial determination allowing or disallowing costs questioned in the audit report and proposing corrective action(s) to be taken by the grantee will be sent to the grantee.

(2) Each initial determination will include:

1. Citations to relevant statutory, regulatory, or grant agreement provisions supporting the findings and determinations;

2. Necessary corrective action required by the department for the grantee to achieve compliance;

3. Request for additional documentation, if needed, to satisfactorily respond to findings; and

4. Notice of the opportunity for an audit resolution conference with the department.

c. Response period. Each grantee will be allowed a 30-day period from the date of notification in which to respond to the initial determination and, if requested, meet with the department to discuss informal resolution. If further clarification or information is requested by the department to assist in the preparation of the final determination, additional time will be allowed for the grantee to respond to the request.

d. Final determination.

(1) After receipt of the grantee's response to the initial determination, a final determination will be issued and sent by certified mail, return receipt requested, to the grantee within 30 days. A final determination will be issued whether or not a response to the initial determination has been made.

(2) A final determination will include:

1. Identification of those costs questioned in the audit report which will be allowed and an explanation of why those costs are allowed;

2. Identification of disallowed costs, listing each disallowed cost and describing reasons for each disallowance; and

3. Information on the grantee's right to appeal through the department's appeal process as provided in 12.14(4)"g."

(3) A copy of each final determination will be used to establish a debt account in the amount of costs disallowed. An audit resolution report will be forwarded to the DOL in the manner prescribed by the Secretary of Labor.

e. Disallowance of costs. The following criteria will be applied to questioned costs in determining whether those costs will be disallowed:

(1) Costs not expended in accordance with the Act, regulations, grant agreement, plan, or administrative rules shall be disallowed;

(2) If the misexpenditure was due to willful disregard of the requirements of the Act, regulations, grant agreement, plan, or administrative rules, gross negligence, or failure to observe accepted standards of administration, the costs will be disallowed and repayment must be from non-JTPA funds;

(3) Costs may be disallowed if the funds were not expended in accordance with generally accepted accounting practices;

(4) Ignorance of the requirements of the Act, regulations, rules or grant provisions is not sufficient justification to allow a questioned cost;

(5) The grantee's inability to pay the debt will not be a consideration in the determination of allowing a cost.

f. Waiver.

(1) If an established debt has been determined to have resulted from a fraudulent action or from willful disregard of the Act or applicable rules and regulations, no waiver will be granted. The department will initiate immediate debt collection action against the grantee and may notify the DOL Office of the Inspector General. This action will be taken regardless of whether the fraud or willful disregard occurred at the grantee or any other subrecipient level.

(2) A grantee may request a waiver of debt collection from the department. The request must be in writing and include supporting documentation. In determining whether to impose any sanction on a grantee, including the disallowance of questioned costs for violations by a subrecipient, the department will first determine whether the grantee has adequately demonstrated that it has:

1. Established and adhered to an appropriate system for the enrollment of participants and the award of contracts with subrecipients which contain acceptable standards for ensuring accountability, clear goals, and obligations in unambiguous terms;

2. Acted with due diligence to monitor the implementation of the subrecipient contracts and participant files, including the performance of the appropriate monitoring, auditing and verification activities at reasonable intervals; and

3. Taken prompt and appropriate corrective action upon becoming aware of any evidence of a violation of this Act or the regulations by the subrecipient.

(3) If the department determines that the grantee has demonstrated substantial compliance with the requirements of paragraph "a," the department may waive the imposition of sanctions against the grantee and include the waiver in the state's audit resolution and corrective action report to DOL. The grantee will not be released from liability for misspent funds until DOL accepts the state's audit resolution and corrective action report and approves the state's resolution activities. Any waiver by the department for the benefit of the grantee shall be considered a waiver proposal which is subject to final disposition by the DOL.

(4) Unless waived, each recipient shall repay to the state amounts found not expended in accordance with the Act, regulations, administrative rules, or grant agreement provisions.

(5) Each recipient shall repay from non-JTPA funds misexpenditures due to willful disregard of the requirements of the Act, regulations, administrative rules, or grant agreement provisions; gross negligence; or failure to observe accepted standards of administration.

g. Request for hearing.

(1) Requests for hearing on provisions of a final report or final determination shall be filed within 15 days of receipt of the final determination. The request for hearing shall specify those provisions of the report or determination upon which a hearing is requested. Those provisions of the report or determination not specified for hearing, or the entire determination when no hearing has been requested, shall be considered resolved and not subject to review.

(2) The party requesting the hearing shall have the burden of establishing, by a preponderance of the evidence, the facts and the entitlement to the relief requested.

(3) The grantee will receive written notice of the date, time and place of the hearing, an opportunity to present evidence, and a written decision.

877--12.15(7B,PL97-300,PL102-367) Debt collection procedures.

12.15(1) Establishment of debt.

a. Audits. A debt is established by the release of a final determination on an audit report. The amount of the debt is determined by the amount of costs disallowed in the final determination.

b. Compliance review reports. A debt is established upon the release of a final report disallowing costs resulting from a compliance review report. The final compliance review report includes a review of the corrective action taken by the grantee and any disallowed costs.

c. Postponement of debt collection. If a grantee requests and the department recommends, a waiver under debt collection procedures will not be initiated unless DOL rejects the department's audit resolution and corrective action report concerning the waiver request. If a hearing is requested on a final determination or final report, debt collection will be delayed pending the outcome of the hearing.

12.15(2) Notification of debt.

a. Within ten days of the establishment of the debt, an initial demand letter will be sent by certified mail, return receipt requested, to the grantee from the department requesting repayment of the misspent funds.

b. If no response or payment is received within 15 days of the date of the initial demand letter, a final demand letter will be sent by certified mail, return receipt requested.

c. Letters not claimed and signed for by the grantee shall be treated as "no response" for purposes of calculation of time periods.

12.15(3) Payment methods.

a. Grantees shall pay debts in a one-time cash payment except in cases of documented financial hardship or as allowed by the department.

b. The department may charge interest on the debt when established.

c. The following repayment methods may be used by the department:

(1) Repayment agreement. A repayment agreement may be negotiated for a time period not to exceed one year. The agreement shall be in writing and signed by the department and the grantee. The agreement shall include a schedule of payments which includes exact payment dates, amount of the debt, interest, date of agreement and a requirement for payment in full for breach of the agreement by the grantee.

(2) Allocation reduction. Title IIA and IIB allocations to a grantee may be reduced when DOL offsets a debt against funds allotted to the state and the state debt resulted from a misexpenditure by the grantee or its subrecipients. This method may not be used for any other title or subpart of the JTPA.

(3) If the misexpenditure of funds was due to a grantee's willful disregard for the requirements of the Act, regulations, administrative rules, or grant agreement provisions, gross negligence, or failure to observe accepted standards of administration, the grantee shall repay those amounts from non-JTPA funds.

12.15(4) Legal actions. The state will take necessary and appropriate legal actions to recover misspent grant funds in the event a grantee refuses to satisfy a debt owed to the state.

877--12.16(7B,PL97-300,PL102-367) Grantee report requirements.

12.16(1) State reports. There are three reports which are required to be filed by each grantee with the department: the monthly progress report; file merge report; and the annual report. Instructions for completion and any necessary data or forms will be provided in writing to the grantee by the department.

12.16(2) Monthly reports. The information entered into the department's management information system (MIS) is the official database of the Iowa JTPA program. All reports must be consistent with the data contained in the MIS. To ensure consistency, reports must be completed at the same time and use the same reporting period as the file merge reports which are prepared and submitted by the fifteenth of each month using the last day of the previous month as an end date for the reporting period. After a file merge report is submitted, any other reports submitted for the same reporting period must agree. No additional data should be included for that reporting period which would change a subsequent report for the same reporting period.

a. Monthly progress reports.

(1) This report contains data on enrollments, participant characteristics, terminations, activities and services, budgets, expenditures, participant service levels, and performance measures. Information from these standardized reports will be distributed quarterly via JTPA issuance and will also be disseminated at meetings of the WDB, PIC chairpersons, chief LEOs and to other interested parties as requested. The information contained in these reports will be used to identify specific areas where technical assistance is needed.

(2) A report must be generated for the Title IIA adult and youth program, the Title IIB summer youth employment and training program, the dislocated worker center program, the state education coordination and grants program, and the older individual training program in each SDA each month. A report must also be generated for any special project or program such as: the state education coordination and grants offender projects, the Title IVC veterans programs, and the Title III discretionary grants. These reports must be completed as designated in the appropriate grant agreement.

(3) These reports must be signed by the grantee certifying the accuracy of the information and must be received by the division administrator with a copy to the appropriate field administrator by the fifteenth of each month for the preceding month except that the final monthly progress report for each program year must be received by July 31. All data for the program year must be entered into the system prior to completing the final monthly progress reports. A copy of the monthly progress report for the state education coordination and grants program must also be sent to the department of education. For Title IIB, reports are due on July 15, August 15, September 15, and October 15 with the final report due on November 15.

b. File merge report.

(1) The file merge report contains data on all titles and programs and is compiled by merging files in the management information system (MIS) as instructed by the department in the JTP information system user news. This merged data is then transmitted electronically to the department.

(2) The file merge reports from all SDAs are entered into the department's database, where the data is used to compile aggregate reports and analyze data at the state and SDA levels.

(3) The file merge reports must be submitted for each month by the fifteenth of the following month, except for the end-of-program-year file merge report which must be received by July 31. All data for the program year must be entered into the system prior to running the end-of-the-year file merge report.

12.16(3) Annual report.

a. Several narrative reports are required in connection with JTPA activities. Section 104(b)(10) requires the PIC and LEOs in each SDA to submit an annual report to the governor; state legislation requires the department to submit an annual report to the Iowa general assembly. The WDB is required to submit an annual report to the governor concerning all JTPA activities.

b. To coordinate all requirements, a report must be submitted annually for the following JTPA titles and programs:

(1) Title IIA adult and youth program;

(2) Title IIB summer youth employment and training program; and

(3) Title III dislocated worker center program; and, if applicable,

(4) State education coordination and grants programs;

(5) Older individual training program;

(6) Title III discretionary dislocated worker program; and

(7) Title IVC veterans employment program.

c. The annual report for each title or program must include the cumulative information from the final monthly progress report for the program year plus a description of programs conducted during the program year. The narrative description should be no longer than five typewritten pages. Other elements may be included at local option.

d. Financial information contained in the annual report must agree with the grantee's close-out information which is submitted to the department.

e. All annual reports must be signed by the PIC chairperson and chief elected official, except for 8 percent projects and Title IVC.

f. All annual reports must be received by the division administrator no later than September 15 following each program year end. A copy of the state education coordination and grants program report must be submitted to the department of education (DOE) based on the agreement between the administrative entity and DOE. Since the Title IIB summer youth employment and training program is on a different program year cycle, the annual report for Title IIB will be for the previously completed summer program year.

877--12.17(7B,PL97-300,PL102-367) Compliance review system. The department is responsible for reviewing program operations of all its grantees and subrecipients. The components of the review system are based upon policies, objectives and procedures prescribed in federal, state, or local documents. The review system is intended to comply with state's oversight and monitoring responsibilities while minimizing the degree of interference with local decision making and control of JTPA programs.

Federal and state documents used to conduct reviews are listed in 12.8(3).

12.17(1) Method of review. There are two methods of review: statistical and procedural.

a. Statistical method. The statistical aspect of the reviews examines three areas: participant service levels, fiscal data, and performance measures.

(1) The review of service levels includes the items identified on the planning summaries in the local training plan which vary between JTPA titles or programs.

(2) The fiscal review may vary from JTPA title and program. The fiscal evaluation may include, but is not limited to, a review of expenditure levels in accordance with program requirements including cost category limitations, allowable costs, matching requirements, planned expenditure rates compared to actual expenditure levels, youth expenditures and the noneconomically disadvantaged expenditure requirements.

(3) The program performance review will include, but may not be limited to, a calculation of actual performance in each title and program and an evaluation against performance standards.

b. Procedural method. The procedural aspect of the reviews includes the examination of procedures used to organize and operate JTPA programs in the SDAs. Local procedures will be reviewed to determine compliance with federal and state requirements governing the program. Items in this review include, but are not limited to, the following: applicant and participant process, activities and services; auditing; cash management; complaint procedures; debt collection; equal opportunity; federal and state reports; financial management; fiscal accountability; general program provisions; grant agreement provisions; LEO/PIC agreement; local job training plan; management information system; monitoring; monthly progress reports; participant service levels; participant and service provider record; PICs and LEOs; procurement procedures; property; record retention and verification.

12.17(2) Procedures and time lines. There are two procedures used to implement the methods of review described above: the monthly performance review and the annual financial and program compliance review.

a. Monthly performance review.

(1) Monthly performance reviews of the operation of JTPA programs will be conducted for each grantee by the department. These reviews will provide a continuous process of program examination and identification of technical assistance needs.

(2) Monthly performance reviews will use the statistical method relying upon several reports including the JTPA financial status report (FSR), the MIS computer-generated monthly progress report and a monthly JTPA annual status report (JASR).

(3) The summary and detail of the analysis will be provided to each local JTPA director by the end of each month. If significant findings are found in the analysis, corrective actions will be required or recommended; and, in some cases, modification to the technical assistance plan may be necessary. If corrective action is required, the JTPA director must provide a written response along with the monthly reports submitted for the subsequent month. Follow-up determinations on findings and corrective actions will usually be carried out by examining the monthly reports. If a significant finding continues over a period of several months, an on-site review may be required.

b. Annual financial and program compliance reviews.

(1) Annual financial and program compliance reviews provide for a comprehensive, in-depth evaluation of all JTPA programs and a system of technical assistance to correct program deficiencies.

(2) Formal program compliance and financial management reviews will be conducted with each grantee by the department annually using a compliance guide and applicable documents. The formats of these reviews will be included in the Iowa JTPA handbook made available to each grantee.

(3) With the exception of Title IIB, both a financial management and program compliance review will be conducted during the first six months of the program year.

(4) A Title IIB program compliance review will be completed with each grantee during July of each summer program year. A program compliance review of 5 percent of the Title IIB work sites in each SDA will be conducted during June and July of each summer program year.

(5) The guides and documents used in conducting both program compliance and financial management reviews will include both statistical and procedural methods of review. The comprehensive review is designed to examine the statistical success or failure of the program operation and to evaluate the procedures, policies and methods of operation.

12.17(3) Compliance review reports.

a. A report will be completed on each financial and program compliance review and on each work site visit. This report shall include: a description of findings including any questioned costs; recommended corrective action to be implemented by the grantee; and time frames for completing any corrective action and responding to the report.

b. Because these reviews examine both program achievement and program efficiency, technical assistance is provided on both a required and recommended basis. Required corrective actions are necessary for any program performance levels or procedures which are deficient or in conflict with required standards of operation. Recommended corrective actions are suggested which may result in improved program efficiency or effectiveness.

c. Initial reports that include corrective action will be sent to the grantee only. The initial report may also be sent to the PIC chairperson and the chief elected official if the review identifies substantial problems.

d. The grantee must respond in writing to each report that includes required corrective action. The response must include a description and documentation of any corrective action taken. If the grantee disagrees with the findings of the report, the grantee must include in the response the reasons for the disagreement and any appropriate documentation.

e. The grantee shall have 20 days from the date of the report to respond to program compliance review reports. A maximum of 15 days shall be allowed to respond to financial management reports. For worksite visits, findings requiring corrective action must be initiated immediately upon verbal notification of the findings. A written response to worksite findings must be made within 10 days of the date a written report is issued.

f. A second report will be sent to the grantee within 20 days of receiving the grantee's response, if further corrective action is required. The grantee shall have 15 days to respond to the second report.

g. The department will issue a final report within 20 days of receipt of the grantee's response and corrective action. Copies of the final report, along with copies of the initial report and any responses from the grantee, will be sent to the PIC chairperson and the chief elected official.

h. Except for Title IIB, follow-up reviews will be conducted during the third quarter of the program year to review corrective actions taken in response to findings identified during the initial reviews. Title IIB follow-up will be conducted during the summer program year. Any follow-up visit will be documented via a letter to the grantee describing the findings and directing further corrective actions as necessary. If further corrective action is required, the grantee will have 15 days to respond.

12.17(4) Questioned costs. If the department questions costs in a compliance review or audit report, debt collection procedures will be initiated as provided in 12.15 (7B,PL97-300,PL102-367). Grantees will be afforded an opportunity to request a hearing in accordance with 12.14(4)"g." Waiver requests by the grantee for subgrantee misexpenditures will follow the requirements of 12.14(4) "f."

877--12.18(7B,PL97-300,PL102-367) Sanctions for violations of the Act. The state may impose appropriate sanctions and corrective actions for violations of the Act, regulations, grant terms or conditions and other applicable laws and regulations.

12.18(1) Findings warranting sanctions.

a. In determining whether to impose a sanction, the department will consider the frequency, quantity, flagrancy, severity and willfulness of the finding and whether it was the result of willful disregard of the Act or other applicable laws and regulations. The findings may fall into four major categories: administrative, fiscal, program operation and performance standards.

b. Administrative findings. Sanctions may be imposed for failure to establish a 28E agreement to implement JTPA programs; maintain private industry council membership in accordance with Section 102 of the JTPA; establish a LEO/PIC agreement; meet publication and distribution requirements for local training plans; agree on a local training plan; obtain or maintain supporting documentation for grant activities; maintain accurate and current required data in the MIS; submit revised planning summaries to maintain an up-to-date local training plan; make procurements according to required policies and procedures including prior approval where necessary; implement required corrective actions; submit accurate required reports on time; implement the technical assistance plan; perform required audits; and meet monitoring requirements. This list is not intended to be all-inclusive.

c. Fiscal findings. Sanctions may be imposed for failure to operate within the minimum cash balance requirements; comply with program cost limitations; maintain adequate expenditure rates in accordance with the local training plan; properly allocate expenditures to JTPA and between titles and programs; properly disburse funds; obtain and document required match; maintain adequate systems of fiscal control; and submit accurate required fiscal reports on time. This list is not intended to be all-inclusive.

d. Program operation findings. Sanctions may be imposed for failure to obtain proper information for eligibility determination resulting in ineligible participants receiving benefits from the program; meet required enrollment levels for dropouts and WIN recipients; enroll substantial segments of the eligible population in proportion to their existence in that population; and meet required expenditure rates for Title IIA youth. This list is not intended to be all-inclusive.

e. Program performance findings (Title IIA only). Sanctions may be imposed for failure to meet performance standards for one year; two consecutive years; and more than two consecutive years.

Findings under this category are distinct from other types of sanctionable findings in that these deficiencies relate to performance criteria and sanctions as described in Section 106(h) of the Act. Sanctions to be taken under this Section are solely in response to an SDA's failure to meet performance standards. For purposes of Section 106(h) of the Act "failure to meet performance standards" means achieving the standard in fewer than five of the seven DOL performance measures in Title IIA.

12.18(2) Types of sanctions. Sanctions which may be imposed, as listed below, are intentionally progressive in their severity to reflect the willfulness, severity or flagrancy of the finding. The severity of the sanction imposed may also increase with repeated findings. Sanctions include, but are not limited to, the following:

a. Disallowing costs associated with the particular violation or deficiency and seeking repayment;

b. Stopping the drawdown of funds until the violation or deficiency is corrected;

c. Reallocating unexpended or unobligated funds;

d. Prohibiting the use of certain service providers;

e. Revoking all or any part of the grant agreement affected;

f. Disapproving the local training plan or requiring modifications until conditions, violations or deficiencies are corrected;

g. Requiring the restructuring of the JTPA organization within the grantee or administrative entity;

h. Requiring the selection of an alternate grantee or administrative entity;

i. Requiring the restructuring of the PIC;

j. Decertifying the PIC;

k. Redesignating the SDA.

12.18(3) Determination and notification of sanctions.

a. All findings and questioned costs which may warrant sanction will be referred to a committee appointed by the division administrator. The committee may request and receive additional information and documentation concerning the findings and questioned costs. It is the responsibility of the committee to determine whether or not a sanction will be imposed.

b. The decision to impose the disallowed cost sanction will take into consideration the criteria stated in 12.14(4)"e."

c. If the sanction committee recommends imposing any of the sanctions in 12.18(2)"f" to "k," this recommendation will be taken to the WDB or a committee empowered to act on the WDB's behalf for review and recommendation. The sanction committee will then take the WDB's recommendation into consideration in its determination of whether or not to impose any of the referenced sanctions.

d. The initial notification of sanction will be communicated to the grantee, the PIC, and the LEOs within 30 days of the establishment of the findings. The grantee, the PIC and the LEOs will be allowed 15 days to respond to this initial notification of sanction. A final notification of sanction will be made no later than 60 days after the establishment of the findings.

e. Sanctions taken to prevent the misexpenditure of funds (e.g., in cases of fraud, illegal expenditures) will be imposed on an immediate basis along with notification to the grantee, the PIC and the LEOs.

f. Prior to imposing any sanction, except those sanctions taken to avoid misexpenditure of funds, the grantee, the PIC and the LEOs will be notified of their appeal rights. The grantee, the PIC and the LEOs may also appeal, within 15 days of the sanction imposition, sanctions imposed on an immediate basis to protect the misexpenditure of funds.

12.18(4) Process for appealing proposed sanctions to be applied for failure to meet performance standards.

a. For sanctions imposed for failure to meet performance standards, the grantee, the PIC and LEOs will be provided with the opportunity to request a hearing. A request for hearing must be filed within 15 days of receipt of the final notification of sanction.

b. The division administrator, or the division administrator's designee, will conduct the hearing and make a proposed decision to the department's director within 30 days of the receipt of the request for a hearing. The grantee, the PIC and the LEOs will be provided the opportunity to present evidence, both written and oral. The parties will receive written notice of the date, time and place of the hearing.

c. The department director will provide the grantee, PIC and LEOs written notification of the determination of the hearing within 60 days of the receipt of the request for a hearing.

d. If the determination upholds the imposition of the sanction, the PIC and LEOs may jointly submit an appeal to DOL as provided in JTPA Section 164(b) and 29 CFR 628.5 (March 15, 1983).

12.18(5) Process for appealing the proposed sanction of revoking all or part of the local training plan. Within 30 days of receipt of notification of intent to revoke all or part of the local training plan, the PIC and LEOs may jointly appeal to the DOL as provided in 20 CFR 628.5 (March 15, 1983).

12.18(6) Process for appealing the proposed sanctions of PIC decertification and SDA redesignation. Reserved.

12.18(7) Process for appealing all other sanctions including disallowed costs. For all other sanctions, the grantee, the PIC and the LEOs will be provided the opportunity to file a request for a hearing.

877--12.19(7B,PL97-300,PL102-367) Equal opportunity compliance. The Directorate of Civil Rights (DCR) has adopted regulations, 29 CFR Part 34 (January 15, 1993), to implement the equal opportunity and nondiscrimination provisions of the Act. These regulations require the department of workforce development to establish and adhere to a method of administration (MOA) designed to give reasonable guarantee of compliance with equal opportunity and nondiscrimination provisions. The department's MOA requires each SDA to develop a local MOA which includes required elements as outlined in the JTPA handbook to ensure compliance with the Act and regulations. Those requirements include, but are not limited to:

12.19(1) Designation of equal opportunity officer. Each grantee shall designate an individual or committee to coordinate equal opportunity and affirmative action responsibilities.

a. The name, title of position, address, telephone and TDD (or relay) number of the equal opportunity (EO) officer should be made public.

b. An adequate level of resources (i.e., nonpersonnel, such as travel budget, and training funds) must be provided to the EO officer to enable the officer to accomplish the responsibilities assigned. The EO officer must report directly, on EO matters, to the grantee's director.

c. The equal opportunity officer should have a background relative to EO laws, regulations, theories of discrimination, and understanding of how to conduct EO investigations and reviews or be given the opportunity to receive training and appropriate technical assistance to develop such a background.

12.19(2) Notification. Procedures must be established to inform applicants, participants, program beneficiaries and employees that the program does not discriminate in admission, access, treatment or, where applicable, employment in JTPA programs.

a. A system should be maintained for periodic distribution of EO-related policies, guidelines, and information.

b. Publication in languages other than in English must be provided to ensure all individuals are informed of JTPA programs and activities. In determining the language(s) used to provide the information, the grantee shall consider the scope of the program and the size and concentration of the population.

c. Advertisements, recruitment materials, program brochures, and other similar publications regarding JTPA programs must contain the initial and continuing notice or alternative tagline as required by 29 CFR 34.23.

12.19(3) Posters. Equal opportunity and affirmative action posters must be displayed prominently and in reasonable numbers. Posters should explain briefly the procedures for filing a complaint and identify a local contact person who can provide assistance.

12.19(4) Monitoring. A system for periodic monitoring of the compliance status of subcontractors and subrecipients must be established and implemented.

a. The system should provide for periodic on-site reviews to assess their EO compliance.

b. Findings should be documented and retained.

c. The system should identify EO training and technical assistance needs and identify methods to meet these needs.

12.19(5) Discrimination complaint procedures. The equal opportunity officer for the grantee, administrative entity or subrecipient is responsible for adopting and publishing the complaint procedures. The complaint procedure must include the following minimum elements:

a. Who may file. Persons may file who believe they have been subjected to discrimination on the basis of race, color, national origin, religion, sex, age, disability, political affiliation or belief and, for beneficiaries only, citizenship or participation in JTPA.

b. Where to file. The complaint may file with grantee, administrative entity, subrecipient or the director of the Directorate of Civil Rights (DCR) at the following address: Director, Directorate of Civil Rights, U. S. Department of Labor, 200 Constitution Avenue NW, Room N-4123, Washington, D. C. 20210.

c. When to file. A complaint must be filed within 180 days of the alleged discrimination. Only the director of DCR may, for good cause shown, extend the filing deadline.

d. Contents of complaint. Each complaint should be in writing and shall:

(1) Be signed by the complainant or representative;

(2) Contain the complainant's name and address (or specify another means of contacting the complainant);

(3) Identify the respondent;

(4) Describe the complainant's allegations in sufficient detail to allow the grantee, administrative entity or subrecipient to determine whether the complaint falls under the jurisdiction of the grantee, administrative entity or subrecipient jurisdiction, was timely filed, and has apparent merit. This information may be provided by completing DCR's Complaint Information Form (CIF) and accompanying Privacy Act Consent Form.

e. Due process elements. The complaint handling process and responses to those charges should provide for:

(1) Notice to all parties of the specific charges and responses to those charges;

(2) An impartial decision maker;

(3) The right of both parties to representation;

(4) The right of both parties to present evidence;

(5) The right of both parties to question others who present evidence; and

(6) A decision made strictly on the presented evidence.

f. Processing time frames. The complaint procedure must provide for notice to the complainant of the following time frames:

(1) If the complainant chooses to file with the recipient, the complainant shall allow the grantee, administrative entity or subrecipient 60 days to process the complaint.

(2) Within 60 days, the grantee, administrative entity or subrecipient shall offer a resolution of the complaint to the complainant and shall notify the complainant of the right to file a complaint with the director of the DCR and inform the complainant that this right must be exercised within 30 days.

(3) If, by the end of 60 days, the grantee, administrative entity or subrecipient has not completed its processing of the complaint or has failed to notify the complainant of the resolution, the complainant or complainant's representative may, within 30 days of the expiration of the 60-day period, file with the director of DCR.

(4) The director of DCR may extend the 30-day time limit for good cause shown.

(5) The grantee, administrative entity or subrecipient shall notify the complainant immediately in writing upon determining that it does not have jurisdiction over the complaint. The notice shall be in writing, include the reasons for the determination, and state the complainant's right to file with the director of DCR within 30 days' receipt of the notice.

g. Service providers. In the case of service providers, the required complaint procedures must be adopted and published on behalf of the service provider by the grantee.

h. Resolution. The grantee, administrative entity or subrecipient must have a sanction policy to ensure that a resolution can be enforced.

i. Complaint log. The grantee, administrative entity or subrecipient must maintain a log of all discrimination complaints.

12.19(6) Accessibility. JTPA-funded programs must be accessible to persons with disabilities and program information must be available, as necessary, in languages other than English and for the visual and hearing impaired.

a. JTPA grantees should conduct a self-evaluation regarding the accessibility of the facilities where JTPA services are provided and establish alternate methods of providing services where facilities are determined not to be physically accessible to persons with disabilities.

b. Accessibility standards should be consistent with regulations adopted by the DOL, Directorate of Civil Rights to implement JTPA.

12.19(7) Record keeping. Characteristics data (e.g., race, sex, national origin, age, disability status) must be maintained in the records on applicants, participants, program beneficiaries and employees and records must be sufficient to determine whether grantees are in compliance with nondiscrimination and equal opportunity provisions of the applicable civil rights laws, regulations, and executive orders.

12.19(8) Overcoming sex stereotyping. Mechanisms must be developed for the use of recruitment, training, and other program activities and services to overcome sex stereotyping by encouraging entry of men or women into occupations with skill shortages where their representation is less than 25 percent of the labor force in the occupation. A list to assist in identifying those Iowa occupational areas where men or women represent less than 25 percent within the occupational area is available to grantees from the state administrative entity.

12.19(9) Methods of administration (MOA). Each grantee, administrative entity, or subrecipient shall develop and submit to DWD their MOA. The MOA shall be in compliance with 20 CFR Part 34 and the Iowa JTPA handbook. The purpose of the MOA is to give reasonable guarantee that grantees, administrative entities, or subrecipients have established systems to ensure the implementation of nondiscrimination and equal opportunity requirements under JTPA.

12.19(10) Corrective action sanctions. Procedures must be established for taking prompt action to correct or remedy noncompliance or, as necessary, to invoke sanctions where noncompliance cannot be resolved voluntarily. Procedures for corrective action sanctions should provide for:

a. Notice to contractor to correct deficiencies;

b. Coordination with federal and state civil rights enforcement agencies, when necessary;

c. An appeal process with risk of contract suspension, termination, denial, discontinuance, or debarment from future contracting subject to a final appeal utilizing the existing complaint procedure;

d. Rights and remedies for suspension, termination, denial or discontinuance of the contract for cause should be stated in the contract;

e. Execution, as necessary, of a written assurance or a conciliation agreement which includes documentation that violations have been corrected. A conciliation agreement must be in writing, address each cited violation, specify the corrective or remedial action to be taken within a specified period, provide for periodic reporting on the status of corrective and remedial action, ensure violations will not recur, and provide for enforcement for a breach of the agreement.

f. Contract termination and debarment procedures must be developed. The procedures should take into consideration the history of experience with the contractor, nonperformance, the response to the corrective action required, lack of good faith or a minimal effort taken to indicate remedial action. These procedures should establish the basis for debarment or termination of the grant whether due to civil rights violations or violations of any other contract provision.

12.19(11) Contracting with small and minority firms and women's business enterprises. Steps must be taken to ensure small and minority firms and women's business enterprises are used when possible as sources of supplies, equipment, construction and services. Grantees should identify small, minority and women's business enterprises in their SDAs and maintain a list to be contacted.

877--12.20(7B,PL97-300,PL102-367) SDA level complaint procedures.

12.20(1) SDA grantee complaint procedures. Each service delivery area (SDA) grantee shall establish procedures for resolving any complaint by a participant, subgrantee, subcontractor and other interested persons alleging a violation of the JTPA, regulations, grant or other agreements under the JTPA by the SDA grantee, administrative entity, private industry council, subgrantee or subcontractor. At a minimum, the SDA level complaint procedure shall provide for:

a. Resolution of any complaint, except discrimination complaints which shall be resolved consistent with 12.19(5) and 12.21(4), alleging a violation of the Act, federal regulations, JTPA administrative rules, grant or other agreements under the Act;

b. Resolution of complaints arising from actions such as audit disallowances or the imposition of sanctions taken with respect to audit findings, investigations or monitoring reports;

c. Filing of complaints within one year of the alleged violation, except for allegations of fraud or criminal activity and discrimination prohibited under the Act;

d. An opportunity for a hearing within 30 days of the date the complaint is filed;

e. Written notice of the date, time, and place of the hearing;

f. An opportunity to present evidence at the hearing;

g. Opportunity to have records or documents relevant to the issues produced by their custodian when the records or documents are kept by or for the SDA grantee or its subgrantees in the ordinary course of business and where prior reasonable notice has been given to the presiding officer;

h. A written decision within 60 days of the date a complaint is filed;

i. A written explanation to all parties of the right to request a review by the state of the complaint if a party receives an adverse decision or if there is no final decision within the 60-day period. Requests for review by the state must meet the requirements of 12.21(3);

j. If the state should fail to issue a decision within 30 days of the filing of the request for state review, a party may request from the Secretary of Labor a determination whether reasonable cause exists to believe that the Act or regulations have been violated. A request to the Secretary of Labor must be filed within 10 days of the date a decision should have been issued by the state and conform to the requirements of 20 CFR 629.52(d) as of October 7, 1980.

k. Upon enrollment, all participants must receive a written description of the complaint procedures which they are to follow. The description must include notification of the right to file a complaint and instructions on how to do so;

l. If a person is not familiar with English, a written or oral translation into a language understood by the individual must be provided. If a person is illiterate or semiliterate, the person must be advised of such right to the satisfaction of that person's understanding;

m. During the complaint process, each complainant and party must be notified in writing of the next step in the complaint procedure;

n. A complaint log and a record of each complaint filed must be maintained at the local level.

12.20(2) Grantees and other subrecipients of JTPA funds must ensure that employers of participants under this Act continue to operate, or establish and maintain, a grievance procedure relating to the terms and conditions of employment. Employers may operate their own grievance procedure or use the grievance procedure established by the grantee. Employers shall inform participants of the grievance procedure they are to follow and of their right to have the employer's decision reviewed by the grantee.

877--12.21(7B,PL97-300,PL102-367) Department complaint procedures.

12.21(1) General information.

a. These rules indicate and specify the minimum procedural requirements for resolving complaints about the Job Training Partnership Act (JTPA) program administered by the department and operated by grantees within each service delivery area (SDA) alleging a violation of the JTPA, state or federal regulations, grant or other agreements under the Act. For complaints involving audit reports, compliance review reports and the imposition of sanctions on the grantee, refer to the rules applicable to audit resolution, debt collection, compliance reviews and sanctions for filing deadlines and procedures.

b. The JTPA and federal implementing regulations require the establishment of both local and state level complaint procedures. Grievances or complaints about local level actions, decisions, activities, and programs are to be resolved through the SDA level complaint procedure. As provided in subrule 12.21(3) the state may, upon request of a party or upon its own motion, review a final local complaint decision. Complainants may file initially with the state if the requirements of subrule 12.21(4) are met.

c. These rules do not apply to proceedings that determine law or policy of general applicability based on legislative fact nor to automatic grant adjustments for classes of contractors, subcontractors or participants when adjustments are required by state or federal law.

d. Complaints may be brought by participants, subgrantees, subcontractors, and other interested persons. The department may also initiate complaints as required by statute or constitution in order to determine the legal rights, duties, or privileges of a party which are at issue.

e. The identity of any person who has furnished information relating to, or assisting in an investigation of a possible violation of JTPA shall be kept confidential to the extent possible, consistent with due process and a fair determination of the issues.

f. No grantee, administrative entity, private industry council, or subgrantee shall in any manner discriminate against or discharge any individual because the individual has filed a complaint or instituted or caused to be instituted any proceeding under or related to this Act, or has testified or is about to testify in any proceeding or investigation under or related to this Act.

12.21(2) Definitions. As used in this complaint procedure the following definitions apply, unless the context otherwise requires.

"Complaint" means an alleged injury, injustice or wrong and includes the term grievance.

"Contested case" means a proceeding in which the legal rights, duties or privileges of a party are required by constitution or statute to be determined by the department, after an opportunity for an evidentiary hearing.

"Director" means the director of the department of workforce development.

"Dismissal" means that a complaint will not be pursued for the following reasons:

1. The alleged violation is not one that arises in connection with JTPA Act, regulations, grant, or other agreements under the Act; or

2. No useful purpose would be derived in pursuing further action on the complaint.

"Final action" means resolution of the complaint by withdrawal, settlement agreement, dismissal, or final decision.

"Interested person" incorporates the legal concept of "standing" and means a person who has some personal and legal interest in the matter which is the subject of the complaint and can demonstrate a specific injurious effect on this interest.

"Settlement agreement" means a written agreement, signed by the parties, that has been executed and which recites the subject of the controversy, the solution mutually agreed upon by the parties, and a statement of the action to be taken, or prohibited in the future, by each of the parties.

"Withdrawal" means the complainant requested, prior to a hearing, that no further action be taken by the state on the complaint.

12.21(3) State review of SDA complaint decisions. If a party does not receive a final decision at the SDA level within 60 days of filing of the complaint or receives an adverse decision, a party may request a review of the complaint by the department.

a. Filing deadline. To be considered, a request must be filed with the department within 10 days of receipt of the adverse decision or 15 days after the decision was mailed.

b. Exhaustion of local procedures. No party may file a request for review by the department until the SDA procedures have been exhausted, unless a decision has not been issued within 60 days of the filing of the complaint.

c. Where to file. The request shall be filed with the JTPA complaint officer at the department.

d. Contents. The request shall be in writing and shall include:

(1) The date of filing the request for review;

(2) The names and addresses of all parties involved;

(3) A clear statement of the facts, relevant dates, and which provision(s) needs review. Provisions not identified for review will be considered resolved, unless the agency desires to review a provision on its own motion;

(4) The date the complaint was filed with the SDA and the date the SDA decision was issued or should have been issued;

(5) Signature of the party requesting the review; and

(6) A copy of the SDA level decision, if issued.

e. Notice. After receipt of the request for review, the JTPA complaint officer will:

(1) Send written notice of the filing and a description of the review process to each party;

(2) Request from the SDA complaint officer a copy of the SDA complaint file consisting of all pertinent documents including, but not limited to, the original complaint, evidence, hearing transcript, briefs, pleadings and written decision(s);

(3) Transmit the request to appropriate personnel; and

(4) Establish a deadline for submission of briefs, exceptions or additional evidence.

f. State review process.

(1) Review procedure. The director, or the director's designee, will review the SDA decision, complaint file, all timely filed briefs and exceptions, and any other relevant information. The director, or the director's designee, may request additional information from the parties, investigate any matter, request oral arguments on the complaint, or take any other appropriate action to aid in the review process;

(2) Standard of review. Deference will be given to the findings of fact made at the local level. The agency's experience, technical competence and specialized knowledge may be utilized in the evaluation of the evidence and decision. The local decision will be reviewed to determine:

1. Consistency with state, federal and local law, regulation and policy under the JTPA;

2. The lawfulness of the local procedure;

3. Whether the decision is in violation of any statutory or regulatory provision;

4. Whether it is in excess of the authority delegated to the SDA;

5. Whether it is supported by substantial evidence in the record when that record is reviewed as a whole; and

6. Whether it is unreasonable, arbitrary or capricious or characterized by an abuse of discretion or a clearly unwarranted exercise of discretion.

(3) Final decision.

1. When the director reviews the SDA decision, the decision of the director is final. When an individual designated by the director reviews the SDA decision, the designee will prepare a recommended decision which the director may adopt, modify or reject. The director shall issue a final written agency decision.

2. A final written agency decision will be made within 30 days of the filing of the request for department review. This written decision of the director is final agency action and subject to judicial review as provided in Iowa Code section 17A.19.

12.21(4) State complaint procedure.

a. Who may file. A participant, subgrantee, subcontractor or other interested person may file a complaint.

b. Jurisdiction. A complaint may be filed with the state to adjudicate or otherwise resolve an allegation that the department has violated the JTPA, applicable federal or state regulations, grants, contracts or other agreements under the JTPA. For complaints involving audit reports, compliance review reports, and the imposition of sanctions on the grantee, refer to the sections on audit resolution, debt collection, compliance reviews and sanctions for special filing deadlines and procedures.

c. Time.

(1) Except for complaints alleging fraud or discrimination prohibited under the Act, complaints shall be filed within one year of the alleged occurrence. For appeals of final audit reports, compliance review reports and the imposition of sanctions refer to the applicable rules for filing deadlines.

(2) Discrimination-based complaints. All complaints alleging discrimination based on race, color, religion, sex, national origin, age, disability, political affiliation, or belief and, for beneficiaries only, citizenship or participationin JTPA must be filed within 180 days of occurrence.Discrimination-based complaints may be filed with the DWD or Directorate of Civil Rights, U.S. Department of Labor at the following address: Director, Directorate of Civil Rights, U.S. Department of Labor, 200 Constitution Avenue NW, Room N-4123, Washington, D.C. 20210. The state JTPA complaint officer will provide the charging party with the U.S. Department of Labor complaint information form and assistance in completing and filing the complaint. If the complainant elects to file with DWD, a written decision will be issued within 60 days of the filing date of the complaint. If the complainant is not satisfied with DWD's resolution of the complaint or if no decision is released within the 60 days, the complainant has the right to file a complaint with the Directorate of Civil Rights. This right must be exercised within 30 days after DWD notifies the complainant of the proposed resolution or within 30 days of the expiration of the 60-day period.

d. Contents. Complaints shall:

(1) Be clearly portrayed as a complaint by the complainant;

(2) Be legible and signed by the complainant or the complainant's authorized representative;

(3) Pertain to a single subject, situation or set of facts;

(4) State the name, address and telephone number (or TTY - Telecommunications Device for the Deaf - number) of the complainant and the name, address and telephone number of an attorney or other representative of the complainant's choice;

(5) State the name of the party or parties complained against and, if known to the complainant, the address and telephone number of the party or parties complained against;

(6) Contain a clear and concise statement of the facts, including pertinent dates, constituting the alleged violations;

(7) Cite the provisions of JTPA regulations, grants or other agreements under JTPA believed to have been violated;

(8) State the relief or remedial action(s) sought;

(9) Include copies of documents supporting or referred to in the complaint; and

(10) State whether or not an oral hearing is requested.

e. Where filed. Complaints shall be filed with the Department of Workforce Development, 150 Des Moines Street, Des Moines, Iowa 50309.

12.21(5) Acknowledgment of complaint and notice of opportunity for hearing.

a. A complaint shall be deemed filed with the state when it has been received by the JTPA complaint officer in a form which satisfies the requirements of paragraph 12.21(4)"d."

b. Upon receipt of a complaint in proper form, the department of workforce development will send by personal service or certified mail, a copy of the complaint and a letter of acknowledgment and notice to the parties. The letter of acknowledgment and notice shall contain the filing date, the docket number, and guidance concerning the following:

(1) The opportunity for informal resolution of the complaint at any time before a contested case hearing is convened.

(2) The opportunity for a party to request a hearing by filing with the complaint officer within seven days of receipt of the acknowledgment of the complaint a request for hearing.

(3) The opportunity for a party to be represented by counsel at the party's own expense.

(4) Failure to file a written request for a hearing within the time provided constitutes a waiver of the right to a hearing. The presiding officer will rule on the complaint based upon the pleadings, evidence and briefs submitted.

(5) If a hearing is requested, the hearing shall be held within 30 days of the filing of the complaint.

(6) The opportunity for a party to submit written evidence, pleadings and briefs in a time and manner prescribed by the presiding officer.

(7) When an administrative law judge presides, the administrative law judge shall issue a proposed decision within 60 days of the filing date of the complaint and forward a copy to each party, the complaint officer and the director.

(8) Should the administrative law judge fail to issue a written decision within 60 days or if a party receives an adverse decision, a party may request an independent state review of the complaint. The request must be filed with the director within 10 days of the issuance date of the adverse decision or within 10 days from the date on which the decision should have been issued. If accepted for review, a decision shall be made within 30 days and the director's decision is final.

(9) Parties may file exceptions to and appeals of the proposed decision for review by the director no later than 10 days from the issuance date of the proposed decision by filing with the complaint officer exceptions, appeals, and appeal briefs or briefs in support of the exceptions. The parties will receive written notice of the acceptance or denial of the request for review. The state reserves the right to review the administrative law judge's decision on its own motion.

(10) If no exceptions to or appeals of the proposed decision are filed within the time provided or not reviewed upon agency motion, the proposed decision of the administrative law judge shall become the final agency decision.

12.21(6) Settlement. A controversy may, unless precluded by statute, be informally settled by mutual agreement of the parties any time before or after a controversy is formally identified by the filing of a complaint, notice, or petition, and before a contested case hearing is convened. The settlement shall be effected by a written settlement agreement signed by all parties or a written statement from the complainant that the complaint has been withdrawn or resolved to the complainant's satisfaction. The complaint officer shall acknowledge the informal settlement and notify the parties of the final action. With respect to the specific factual situation which is the subject of controversy, the informal settlement shall constitute a waiver, by all parties of the formalities to which they are entitled under the terms of the Iowa administrative procedure Act, Iowa Code chapter 17A, JTPA and the rules and regulations under JTPA.

12.21(7) Waiver of right to a hearing. Failure to request a hearing in a timely fashion constitutes a waiver of a right to a hearing. If no hearing is requested, the presiding officer shall make a record of the written evidence, pleadings and briefs submitted by the parties. These documents shall be considered the complete record and will be the basis for the administrative law judge's proposed decision.

12.21(8) Notice of hearing. Upon receipt of a timely request for a hearing, the JTPA complaint officer will assign the matter to an administrative law judge. The parties shall be notified of this assignment and all future correspondence and filings shall be directed to the administrative law judge and copies of the documents shall be served on all parties and the JTPA complaint officer. All hearings shall be conducted in accordance with the procedures required in Iowa Administrative Code 871--Chapter 26.

These rules are intended to implement Iowa Code chapters 7B and 84A and P.L. 97-300 as amended by P.L. 102-367.

FILED EMERGENCY

ARC 7649A

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

Adopted and Filed Emergency After Notice

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts amendments to Chapter 7, "Iowa Jobs Training Program," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 7502A on September 10, 1997. The IDED Board adopted the amendments on October 23, 1997.

The proposed amendments implement program changes authorized by 1997 Iowa Acts, House File 655, namely the incorporation of an apprenticeship program within the current Iowa Jobs Training Program structure. The amendments also further refine and clarify application scoring criteria for existing programs.

A public hearing was held on October 1, 1997, to receive comments about the proposed amendments. The following comments were received at the public hearing. The Associated Builders and Contractors of Iowa, Inc. (ABC) expressed concern about having a review criterion based on wage and suggested alternative wording for that criterion; they also were concerned with having a Final Performance report. The Iowa Federation of Labor, AFL-CIO requested that "high technology apprenticeship program" be defined. They also expressed concern over the average wage review criteria and commented that more points should be allocated to these criteria.

Based on these comments, the following changes were made to the proposed amendments:

(1) Rule 261--7.3(260F) was amended to include four additional definitions: "high technology apprenticeship program," "lead apprenticeship sponsor," "lead business," and "lead organization."

(2) Paragraph "b" of subrule 7.20(3) was revised to clarify how this criterion will be evaluated.

(3) Subrule 7.21(1) was revised to incorporate references to lead business, lead organization, and apprenticeship sponsor(s) and lead apprenticeship sponsor.

(4) A new subrule 7.21(7) was added to rule 7.21(260F) to specify that a lead business, apprenticeship sponsor, or organization that is the only signatory on the contract will be the party responsible for default and reporting requirements.

The Department finds, pursuant to Iowa Code section 17A.5(2)"b"(2), that the normal effective date of the amendments, 35 days after publication, should be waived and the rules be made effective on October 24, 1997. These amendments confer a benefit on the public by allowing community colleges and apprenticeship sponsors to proceed with apprenticeship programming that normally begins in the early fall.

The agency is taking the following steps to notify potentially affected parties of the effective date of the amendments: publishing the final amendments in the Iowa Administrative Bulletin, providing free copies on request, and having copies available wherever requests for information about the program are likely to be made.

These amendments are intended to implement 1997 Iowa Acts, House File 655.

These amendments became effective on October 24, 1997.

The following amendments are adopted.

ITEM 1. Amend 261--7.1(260F) as follows:

261--7.1(260F) Authority. The authority for establishing rules governing the development of training projects under the Iowa jobs training Act is provided in Iowa Code chapter 260F as amended by 1996 Iowa Acts, Senate File 2351 1997 Iowa Acts, House File 655.

ITEM 2. Amend 261--7.3(260F) as follows:

261--7.3(260F) Definitions.

"Act" means Iowa Code chapter 260F as amended by 1996 Iowa Acts, Senate File 2351 1997 Iowa Acts, House File 655.

"Apprentice" means a person who is at least 16 years of age, except where a higher minimum age is required by law, who is employed in an apprenticeable occupation, and is registered with the United States Department of Labor, Bureau of Apprenticeship and Training.

"Apprenticeable occupation" means an occupation approved for apprenticeship by the United States Department of Labor, Bureau of Apprenticeship and Training.

"Apprenticeship program" means a program registered with the U.S. Bureau of Apprenticeship and Training which contains the terms and conditions for the qualification, recruitment, selection, employment and training of appren-tices, including the requirement for a written apprenticeship agreement.

"Apprenticeship sponsor" means an entity operating an apprenticeship program or in whose name an apprenticeship program is being operated, registered or approved by the United States Department of Labor, Bureau of Apprenticeship and Training.

"Business network" means five or more businesses which are located in two or more community college districts and which share a common training need. A business network training project must have a designated lead community college, business, or organization to serve as the administrative entity that will coordinate the training program.

"Community college" means a community college established under Iowa Code chapter 260C.

"Community college consortium" means two or more businesses located in the same community college district which share a common training need.

"Department" means the Iowa department of economic development.

"High technology apprenticeship program" means a program that includes the definitions of apprenticeship program and high technology training.

"High technology training" means training that provides knowledge or skills that are clearly recognized throughout the industry as technologically up to date or advanced for a particular occupation.

"Lead apprenticeship sponsor" means an apprenticeship sponsor that is the applicant for an apprenticeship project.

"Lead business" means a business that is the applicant for a business network project.

"Lead organization" means a trade organization, labor organization or other incorporated entity representing a group of businesses that is the applicant for a business network project.

"Program costs"means all necessary and incidental costs of providing program services.

"Supplier network training" means training provided to five or more businesses whose common training need results from a requirement of one common customer or business.

ITEM 3. Amend 261--7.4(260F) as follows:

261--7.4(260F) Program funding.

7.4(1) Program funds consist of any money allocated by department board for the purpose of this program, all repayments of loans or other awards or recaptures of awards, and earned interest, including interest earned on program funds held by the community colleges.

7.4(2) A community college 260F account is established in the department. The distribution of funds in this account, to the community colleges, shall be based upon the percentages prescribed in this rule, unless the general assembly stipulates otherwise in the appropriation process.

7.4(3) Ninety Seventy-five percent of the funds from the community college 260F account shall be distributed to each community college on a percentage basis using the distribution formula established in Iowa Code chapter 260D section 260F.6B.

7.4(4) Fifteen percent of the funds from the community college 260F account shall be distributed to community colleges for high technology apprenticeship programs based upon related eligible contact hours under the programs administered during the prior fiscal year as determined by the department of education. Contact hours generated in on-the-job training experiences are not eligible for consideration for apprenticeship funding.

7.4(4) 7.4(5) Ten percent of the funds from the community college 260F account shall be held by the department to fund community college-sponsored business network training projects and shall be available on a first-come, first- served basis, based on the date an application is received by the department.

7.4(5) 7.4(6) Any unexpended or uncommitted funds remaining in the community college 260F account on May 1 of the fiscal year shall revert to a general account to be available on a first-come, first-served basis, based on the date an application is received by the department.

7.4(6) 7.4(7) A department-sponsored business network training project account consisting of funds allocated by the department board is established in the department to funddepartment-sponsored business network training projects.

7.4(8) A department-sponsored high technology apprenticeship project account consisting of funds allocated by the department board is established in the department to funddepartment-sponsored high technology apprenticeship training projects.

ITEM 4. Adopt new rule 261--7.7(260F) as follows and renumber rules 261--7.7(260F) to 261--7.23(260F) as 261--7.8(260F) to 261--7.24(260F):

261--7.7(260F) Funding for high technology apprenticeship programs.

7.7(1) A community college high technology apprenticeship program as defined in 261--7.3(260F) may be funded at the discretion of each specific community college at an amount up to, but not exceeding, the specific community college's apprenticeship distribution for the year.

7.7(2) Department-sponsored high technology apprenticeship programs as defined in 261--7.3(260F) are not subject to a funding maximum.

ITEM 5. Amend renumbered rule 261--7.8(260F) as follows:

261--7.8(260F) Matching funds requirement.

7.8(1) An apprenticeship sponsor, A business, community college consortium, or business network shall provide matching funds in order to be eligible for a program award.

7.8(2) An apprenticeship sponsor, A business, community college consortium, or business network requesting a program award of less than $5,000 shall provide in-kind matching funds.

7.8(3) An apprenticeship sponsor, A business, community college consortium, or business network requesting a program award of $5,000 or more shall provide cash to pay at least 25 percent of the total project cost, including training and administration costs.

7.8(4) In-kind matching funds include employee wages paid by the business during the training period, the value of business-provided facilities and equipment used for training, or the value of any other resources provided by the business or apprenticeship sponsor to facilitate the training program.

ITEM 6. Amend renumbered rule 261--7.17(260F) as follows:

261--7.17(260F) Agreement of intent.

7.17(1) A college and a business or apprenticeship sponsor may, but are not required to, enter into an agreement of intent.

7.17(2) A college and a business which enter into an agreement of intent shall use Agreement of Intent, Form 260F-2. A college and an apprenticeship sponsor which enter into an agreement of intent shall use Apprenticeship Agreement Intent, Form 260F-2A.

7.17(3) An agreement of intent shall remain in effect for a maximum of one calendar year from the date of the agreement. An agreement of intent for one project does not establish the commencement date for subsequent projects.

ITEM 7. Amend renumbered rule 261--7.19(260F) as follows:

261--7.19(260F) Application process.

7.19(1) An application for training assistance must be submitted to the department by a community college on behalf of a business or apprenticeship sponsor. An application shall not be accepted by the department if submitted directly by a business or apprenticeship sponsor.

7.19(2) Community colleges shall use Application for Assistance, Form 260F-1, to apply for 260F business assistance. Apprenticeship Application for Assistance, Form 260F-1D, shall be used for apprenticeship assistance.

7.19(3) Required contents of the application will be described in the application package.

7.19(4) Applications must be submitted to Iowa Department of Economic Development, Division of Administration, Workforce Development Programs, 200 East Grand Avenue, Des Moines, Iowa 50309. Required forms and instructions are available at this address.

7.19(5) The department will score applications according to the criteria specified in 261--7.19(260F) 261-- 7.20(260F).

7.19(6) To be funded, an application must receive a minimum score of 65 out of a possible 100 points and meet all other eligibility criteria specified elsewhere in these rules.

7.19(7) The department may approve, reject, defer, or refer an application to another training program.

7.19(8) The department reserves the right to require additional information from the business or apprenticeship sponsor.

7.19(9) Application approval shall be contingent on the availability of funds. The department shall reject or defer an application if funds are not available.

ITEM 8. Amend renumbered rule 261--7.20(260F) as follows:

261--7.20(260F) Application scoring criteria.

7.20(1) The criteria used for scoring an application 260F business applications and the points for each criteria are as follows:

1. a. More than 50 percent of the business's sales are out of state, 5 points.

2. b. More than 50 percent of the business's operating expenditures are spent within the state of Iowa, 5 points.

3. c. The number of the business's in-state competitors is low, 5 points.

4. d. The business's products have increased or will increase the business's customer base in Iowa, 5 points.

5. e. The business's products have resulted in or will result in a decrease in the importation of foreign-made goods into the USA, 5 points.

6. f. The majority of the business's suppliers are located in Iowa, 5 points.

7. g. The business's current products help diversify Iowa's economy, 5 points.

8. h. The business indicates the potential for future growth and product diversification, 5 points.

9. i. The business's average wage rate for all employees is above the average wage rate in the county or region where the business is located, 5 points. "Region" is the service delivery area as defined in Iowa Code section 84B.2.

10. j. The business provides employee health insurance and other benefits, 5 points.

11. k. The majority of the business's employees are employed full-time, 5 points.

12. l. New skills which employees acquire from the training program will increase the marketability of their skills, 10 points.

13. m. The application has established the business's need for training, 10 points.

14. n. The 260F cost of training per employee does not exceed comparable costs for training at a state of Iowa community college or university, 5 points.

15. o. The business's contribution to the training project is above the minimum program match requirement, 5 points.

16. p. The application documents that all considerations, including funding required to begin the training project, have been addressed, 5 points.

17. q. The application establishes a positive training impact on the business's ability to survive, 10 points.

To be funded, applications must receive a minimum score of 65 out of 100 points and meet all other applicable eligibility criteria.

7.20(2) The criteria used for scoring a department-sponsored business network or community college business consortium or community college-sponsored business network application, and the points for each criterion are as follows:

a. The training will have a positive impact on the skills, knowledge and abilities of trainees, 29 points.

b. The training will help improve the competitive stance of participating businesses or the industry for which training is being provided, 28 points.

c. The training will result in economic benefits for the state, 28 points.

d. The average of the average wage rates for the businesses participating in the project is above the state average wage rate, which will be computed using the current county average wage rates, 10 points.

e. The project cost of training per employee does not exceed comparable costs for training at a state of Iowa community college or university, 5 points.

To be funded, applications must receive a minimum score of 65 out of 100 points and meet all other applicable eligibility criteria. Department-sponsored business network applications which receive a minimum score of 65 out of 100 points will be referred to the IDED board for approval.

7.20(3) The criteria used for scoring a communitycollege-sponsored high technology apprenticeship or adepartment-sponsored high technology apprenticeship application and the points for each criterion are as follows:

a. The application represents high technology area training, 20 points.

b. The application shall identify the occupation or occupations for which training will be provided from the list of occupations in the Iowa workforce development annual wage survey. The most recent Iowa workforce development Iowa statewide wage survey average wage rate for the occupation(s) as identified shall be compared to the lowest of the average wage rate for the county or region where the training is to be provided. Ten points will be awarded if the wage rate for the occupation(s) exceeds the lowest of the average wage rates for the county or region. If the program will be providing training for more than one occupation or be conducted in more than one location, the points shall be awarded on a prorated basis by occupation and location. "Region" is the service delivery area as defined in Iowa Code section 84B.2.

c. New skills which employees acquire from the training program will increase the marketability of successful program participants, 20 points.

d. The application has established the need for training, 20 points.

e. The cost of training per trainee does not exceed comparable costs for training at a state of Iowa community college or university, 5 points.

f. The application documents that all considerations, including funding required to begin the training project, have been addressed, 10 points.

g. The application establishes a positive impact on the state's workforce competitiveness, 15 points.

To be funded, applications must receive a minimum score of 65 out of 100 points and meet all other applicable eligibility criteria. Department-sponsored high technology apprenticeship applications which receive a minimum score of 65 out of 100 points will be referred to the IDED board for approval.

ITEM 9. Amend renumbered rule 261--7.21(260F) as follows:

261--7.21(260F) Training contract.

7.21(1) A community college shall enter into a training contract with the business business(es), lead business, lead organization, apprenticeship sponsor(s), or lead apprenticeship sponsor within 90 days of written notice of application approval from the department, using Training Contract, Form 260F-4, for 260F business-driven projects and using Form 260F-4D for apprenticeship projects.

7.21(2) A business or apprenticeship sponsor shall not modify any provision of the contract without the written approval of the community college.

7.21(3) The community college, with the written consent of the business or apprenticeship sponsor, has the authority to modify all provisions of the contract except for 260F business, business network and consortium project modifications which result in a reduction of the number of employees to be trained or which significantly change the training program.

7.21(4) The community college and the business or apprenticeship sponsor are authorized to change the ending date of training, training provider, or other minor modifications to the training program. A signed copy of the modification must be sent to the department.

7.21(5) Modifications of 260F business, business network and consortium projects which result in a reduction of the number of employees to be trained or change the training program content must be approved by the department, community college, and business.

7.21(6) The contract shall not be modified in any way that would result in a violation of the Act.

7.21(7) Lead businesses, lead apprenticeship sponsors and lead organizations that choose to be the only signatory on the training contract for a department-sponsored business network, community college-sponsored business network, department-sponsored apprenticeship or community college-sponsored apprenticeship project shall be responsible for all default and reporting requirements on behalf of the other businesses or apprenticeship sponsors participating in the project.

ITEM 10. Adopt new rules 261--7.25(260F) and 261-- 7.26(260F) as follows:

261--7.25(260F) Special requirements for community college-sponsored high technology apprenticeship proj-ects.

7.25(1) An apprenticeship sponsor must have a designated community college to serve as the project coordinator.

7.25(2) The designated community college shall serve as the apprenticeship sponsor's representative and shall serve as the department's contact regarding all project matters.

7.25(3) If more than one community college is involved in the project, the participating community colleges shall designate one college as the project's representative.

7.25(4) Apprenticeship Application for Assistance, Form 260F-1D, shall be signed by the community college or, in the case of a multicollege project, by each participating community college and shall be submitted by the community college to the department for project approval.

7.25(5) The community college shall enter into a training contract with the apprenticeship sponsor within 90 days of written notice of application approval from the department, using Apprenticeship Training Contract, Form 260F-4D.

7.25(6) All department communications concerning an apprenticeship project, including notice of project approval or denial and issuance of financial awards, shall be with the community college.

7.25(7) All default provisions specified in 261-- 7.27(260F) shall apply to college-sponsored apprenticeship training projects.

7.25(8) In the event of a default, a financial penalty will be assigned by the department to the apprenticeship sponsor identified by the designated community college as being responsible for the default.

7.25(9) Each apprenticeship sponsor that participates in the project shall complete a Final Performance Report, Form 260F-5A, at the completion of training as a condition of the loan's being forgiven.

261--7.26(260F) Special requirements for department- sponsored high technology apprenticeship projects.

7.26(1) Eligible applicants include any organization that is approved by the U.S. Department of Labor, Bureau of Apprenticeship and Training to provide an apprenticeship program. This group shall be referred to as an apprenticeship sponsor.

7.26(2) Administrative costs shall be limited to 15 percent of the total project cost.

7.26(3) All administrative costs must be directly related to the project's operation, including but not limited to the costs of schedule coordination, securing facilities, and contracting with training providers.

7.26(4) The apprenticeship sponsor shall submit an Apprenticeship Application for Assistance, Form 260F-1E, to the department for project approval.

7.26(5) Applications shall be accepted on a first-come, first-served basis.

7.26(6) Application approval is at the discretion of the department board and shall consider recommendations made by department staff.

7.26(7) The department shall enter into a training contract with the apprenticeship sponsor within 90 days of board approval, using Apprenticeship Training Contract, Form 260F-4E.

7.26(8) All default provisions specified in 261-- 7.27(260F) shall apply to college-sponsored apprenticeship training projects.

7.26(9) In the event of a default, a financial penalty will be assigned by the department to the business or apprenticeship sponsor identified as responsible for the default.

7.26(10) The apprenticeship sponsor shall submit quarterly progress reports for the duration of the project which detail training progress to date.

7.26(11) Each apprenticeship sponsor that participates in the high technology apprenticeship program shall complete a Final Performance Report, Form 260F-5A, at the completion of training as a condition of the loan's being forgiven.

7.26(12) Each project shall receive a two-month advance of total project funds to cover initial costs incurred, the use of which must be documented to the department, after which documented costs incurred will be reimbursed on a monthly basis.

ITEM 11. Amend existing rule 261--7.24(260F) as follows:

261--7.24(260F) 261--7.27(260F) Events of default.

7.24(1) 7.27(1) A business or apprenticeship sponsor fails to complete the training project within the agreed period of time as specified in the training contract. Such business or apprenticeship sponsor shall be required to repay 20 percent of total project funds expended by the community college and the business.

7.24(2) 7.27(2) A business or apprenticeship sponsor fails to train the agreed number of employees as specified in the training contract. Such business or apprenticeship sponsor shall be required to repay a proportionate amount of total project funds expended by the community college and the business or apprenticeship sponsor. The proportion shall be based on the number of employees not trained compared to the number of employees to have been trained.

7.24(3) 7.27(3) If both 7.23(1) 7.27(1) and 7.23(3) 7.27(2) occur, both penalties shall apply.

7.24(4) 7.27(4) A business or apprenticeship sponsor fails to comply with any requirements contained in the training agreement. The business or apprenticeship sponsor shall be sent written notice by the community college which specifies the issue(s) of noncompliance and shall be allowed 20 days from the date notice is sent to effect a cure. If noncompliance is of such a nature that a cure cannot be reasonably accomplished within 20 days, the community college has the discretion to extend the period of cure to a maximum of 60 days.

7.24(5) 7.27(5) A business or apprenticeship sponsor ceases or announces the cessation of operations at the project site prior to completion of the training program.

7.24(6) 7.27(6) A business or apprenticeship sponsor directly or indirectly makes any false or misleading representations or warranties in the program application or training agreement, reports, or any other documents which are provided to the community college or the department.

7.24(7) 7.27(7) A business or apprenticeship sponsor acts in any manner contrary to, or fails to act in accordance with, any provision of the training contract.

7.24(8) 7.27(8) A business takes corporate action to effect any of the preceding conditions of default.

ITEM 12. Amend existing rule 261--7.25(260F) as follows:

261--7.25(260F) 261--7.28(260F) Options and procedures on default.

7.25(1) 7.28(1) The community college shall notify the department within five working days, using Notice of Possible Default, Form 260F-6, whenever the community college determines that an event of default has occurred or is likely to occur.

7.25(2) 7.28(2) The community college shall document its efforts to reconcile the condition(s) responsible for the default and shall provide the department with copies of all related correspondence and documents of the community college and the business or apprenticeship sponsor.

7.25(3) 7.28(3) The community college shall notify the department, using Declaration of Default, Form 260F-7, when it has determined that an event of default cannot be cured.

7.25(4) 7.28(4) When notice of failure to cure the default is received from the community college, the department shall communicate with the business or apprenticeship sponsor, in writing, in an attempt to resolve the default.

7.25(5) 7.28(5) When the department's efforts to reconcile are successful, the department shall notify the community college, in writing, to continue project operations. Continuation of project operations may be subject to new conditions imposed by the department as part of the reconciliation.

7.25(6) 7.28(6) When the department's efforts to reconcile are unsuccessful and upon the department's request, the community college shall assign the agreement to the department for appropriate proceedings at which time the department shall institute collection procedures or notify the attorney general to initiate appropriate legal actions.

7.25(7) 7.28(7) When a community college assigns an agreement to the department for a project declared to be in default, the community college shall return all remaining 260F funds to the department within 45 days of assignment.

ITEM 13. Amend existing rule 261--7.26(260F) as follows:

261--7.26(260F) 261--7.29(260F) Remedies upon default.

7.26(1) 7.29(1) When a community college determines that a business or apprenticeship sponsor is in default, and the default has not been cured within the time period stated in the contract, the school is authorized to withhold training funds and payments to the business or apprenticeship sponsor, without notice to the business or apprenticeship sponsor.

7.26(2) 7.29(2) The attorney general may take whatever action at law or in equity as necessary and desirable to satisfy the default, including pursuit of a tax sale of the employer's business property as provided for under Iowa Code section 260F.3(6).

7.26(3) 7.29(3) No demand of amount due, from the community college to the business or apprenticeship sponsor, written or otherwise, is required to establish the business's or apprenticeship sponsor's financial liability.

7.26(4) 7.29(4) No remedy conferred upon or reserved to the community college, the department, or the attorney general by the Act, these rules, or the training agreement is intended to be exclusive of any other current or future remedies existing in law, in equity, or by statute.

7.26(5) 7.29(5) Any delay or omission by the community college, the department, or the attorney general, to exercise any right or power prescribed by the Act, these rules, or the training agreement does not relinquish or diminish authority to act and does not constitute a waiver of default status. Any such right or power may be exercised at any time required and as often as may be deemed expedient.

7.26(6) 7.29(6) Unless required by these rules, neither the community college, department, nor attorney general is required to provide written or other notice to the business or apprenticeship sponsor regarding any circumstance related to and including a declaration of an event of default.

7.26(7) 7.29(7) In the event any requirement of the Act, these rules, or the training agreement, relating to a default, should be breached by either party and then waived by the other party, such waiver shall be limited to the specific breach being waived and shall have no bearing on any subsequent breach.

ITEM 14. Renumber existing rules 261--7.27(260F)and 261--7.28(260F) as 261--7.30(260F) and 261-- 7.31(260F).

ITEM 15. Amend existing rule 261--7.29(260F) as follows:

261--7.29(260F) 261--7.32(260F) Required forms. Use of the following forms by the community college is required:

1. Application for Assistance, Form 260F-1;

2. Consortium Application for Assistance, Form 260F-1A;

3. Business Network Application for Assistance (Community College), Form 260F-1B;

4. Business Network Application for Assistance (Department), Form 260F-1C;

5. Apprenticeship Application for Assistance (Community College), Form 260F-1D;

6. Apprenticeship Application for Assistance (Department), Form 260F-1E;

5 7. Agreement of Intent, Form 260F-2;

8. Apprenticeship Agreement of Intent, Form 260F-2A;

6 9. Request for Release of Funds, Form 260F-3;

7 10. Training Contract, Form 260F-4;

8 11. Consortium Training Contract, Form 260F-4A;

9 12. Business Network Training Contract (Community College), Form 260F-4B;

13. Apprenticeship Training Contract (Community College), Form 260F-4D;

10 14. Business Network Training Contract (Department), Form 260F-4C;

15. Apprenticeship Training Contract (Department), Form 260F-4E;

11 16. Performance Report, Form 260F-5;

17. Apprenticeship Performance Report, Form 260F-5A;

12 18. Notice of Possible Default, Form 260F-6;

13 19. Declaration of Default, Form 260F-7.

[Filed Emergency After Notice 10/23/97, effective 10/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

FILED

ARC 7648A

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts amendments to Chapter 23, "Community Development Block Grant," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 7501A on September 10, 1997. The IDED Board adopted the amendments on October 23, 1997.

The amendments outline changes in specified uses and application procedures for funds available from the Community Development Block Grant Nonentitlement Program, including minor technical changes where needed.

A public hearing was scheduled for September 30, 1997. As a result of the public comments received, the following revisions were made to the proposed rules: To be consistent with amendments proposed in subrule 23.7(5), Review factors, conforming amendments were needed in subrules 23.7(6), 23.7(7) and 23.7(9). Amended subrule 23.7(5) eliminates the point system for scoring applications; because subrules 23.7(6), 23.7(7) and 23.7(9) reference the point scoring system, they were rescinded.

These amendments are intended to implement Title I of the Housing and Community Development Act of 1974, as amended.

These amendments will become effective on December 24, 1997.

The following amendments are adopted.

ITEM 1. Amend 261--23.2(15) by inserting the following new definitions:

"Community facilities and services fund" means the portion of the competitive program targeted to uses other than water and sewer (sanitary and storm) projects.

"Water and sewer fund" means that portion of the competitive program targeted to water and sanitary and storm sewer projects.

ITEM 2. Amend subrule 23.6(3) as follows:

23.6(3) Distribution of competitive funds. The funds remaining after deducting those used for state administration, public facilities set-aside funds, imminent threat set-aside funds, housing set-aside, and the economic development set-aside will be open to all eligible applicants on a competitive basis. Seventy percent of funds available will be dedicated to the water and sewer fund. Fifteen percent of funds available will be dedicated to the community facilities and services fund. The remaining 15 percent will be allocated to either fund at the discretion of the director based on requests for funds.

ITEM 3. Amend subrule 23.7(1) as follows:

23.7(1) Restrictions on applicants.

a. No more than one application per community will be considered per year under the competitive program.

a. A community may submit one application per year under the water and sewer fund and may submit one application per year under the community facilities and services fund.

b. An eligible applicant may also submit a separate application if involved in a joint application (but not as the lead applicant) when:

(1) The applicant is bound under a multijurisdictional agreement by state statute to provide a public service that is facilitated by the joint application; and

(2) The project proposed in the joint application is not located in the applicant's jurisdiction.

b. c. No applications for housing activities may be submitted under the general competitive program. (All housing activities/project applications must be submitted under the Housing Set-Aside, 261--23.11(15).)

d. All eligible applicants may apply for single-year, single-purpose, or multipurpose funding. Single-year funding does not necessarily require project completion within a 12-month period.

e. Communities may not apply on behalf of eligible applicants other than themselves. Applicants will be allowed, however, to utilize staff from counties, areawide planning organizations, or other jurisdictions to administer the program.

f. Communities that have received a grant from the preceding year's competitive CDBG allocation must have expended at least 25 percent of the total grant amount by the last day of the month preceding the current application deadline in order to be eligible for funding in the current year's competitive CDBG program.

Communities that have received a grant from the competitive CDBG allocation two years preceding the current year must have expended at least 85 percent of the total grant amount by the last day of the month preceding the current application deadline in order to be eligible for funding in the current year's competitive program.

Communities that have received a grant from the competitive CDBG allocation three or more years preceding the current year must have expended 100 percent of the total grant amount by the last day of the month preceding the current application deadline in order to be eligible for funding in the current year's competitive CDBG program.

For purposes of this subrule, funds will be considered expended from an escrow account when a disbursement is made from the account to a vendor for allowable costs incurred. This subrule does not apply to budgeted and expended amounts for general administration.

g. DED may grant an exception to 23.7(1)"f" in those cases where a potential applicant is currently participating in a joint project (two or more eligible entities) that does not meet the specifications in 23.7(1)"f" and the applicant desires to apply on the applicant's own behalf for a separate and unrelated eligible project. DED's decision will be based on information supplied by the potential applicant and reviewed on a case-by-case basis. Forms and procedures for requesting a waiver are available upon request from DED.

ITEM 4. Amend subrule 23.7(2) as follows:

23.7(2) Application procedure. Each year, prior to solicitation of general competitive applications, the department of economic development will, to the extent funds are available for this purpose, conduct a training program for all eligible applicants. All eligible applicants will be notified of the time, date, place and agenda by mail. Application instructions and all necessary forms will be available upon written request to the Department of Economic Development, Division of Community and Rural Development, 200 East Grand Avenue, Des Moines, Iowa 50309, or by telephone (515)242-4825. The training program will include a discussion of the program's purpose, eligible and ineligible program activities, and instructions regarding the preparation and submission of an application.

The deadline for submission of a general competitive application (one original) shall be at least two months following the last date of the training program. No applications will be accepted after the deadline for submission. Only data submitted by the established deadline will be considered in the selection process, unless additional data is specifically requested by DED in writing.

A preapplication shall be required for all community facilities and services fund requests for funding. Potential applicants may request preapplication materials from the department of economic development at the address and telephone number listed above.

Review and ranking of general of competitive applications will be performed by DED personnel after consultation, where appropriate, with other state agencies with program responsibility in CDBG project-related areas. All applications meeting threshold requirements will be reviewed and ranked within 90 days of the final submission deadline.

Those applications with the highest rankings Applications will be funded, to the extent that competitive program funding is available. All successful applicants will be notified and invited to a conference with DED personnel to outline procedures to be followed as grant recipients.

ITEM 5. Amend subrule 23.7(5) as follows:

23.7(5) Rating Review factors. The following rating review system will be used to rank applications under the competitive program. The highest point total is 700. Project- specific information is obtained from data contained in the application. The rating factors are:

a. Water and sewer fund.

a. (1) Magnitude of need identified by community, 200 points possible;

b. (2) Project impact--extent to which project(s) addresses community need, 200 points possible;

c. (3) Percent of project funds benefiting low- andmoderate-income persons, 200 points possible; and

d. (4) Local effort, 100 points possible.; and

e. (5) Certified community builder community plan. 50 points possible. A community will receive 50 points if the community (1) submits a community builder plan on or before the general competitive application due date, and (2) received subsequent certification by the department according to rules established in 261--Chapter 80, "Additional Program Requirements."

b. Community facilities and services fund.

(1) Project impact;

(2) Project feasibility;

(3) Percent of project funds benefiting low- andmoderate-income persons;

(4) Local effort; and

(5) Certified community builder plan.

ITEM 6. Rescind and reserve subrules 23.7(6), 23.7(7) and 23.7(9).

ITEM 7. Amend subrule 23.17(4) as follows:

23.17(4) Compliance with federal and state regulation. Only eligible cities and counties may receive funds under this program and must comply with all laws, rules, and regulations applicable to the CDBG nonentitlement program and those all state administrative rules except those that the department may choose to waive that are not required by federal law.

The state will make available a listing of all applicable federal regulations and relevant federal agencies to all applicants upon request.

[Filed 10/23/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7647A

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development hereby adopts amendments to Chapter 53, "Community Economic Betterment Program," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 7439A on August 13, 1997. The IDED Board adopted the amendments on October 23, 1997.

The amendments include a method of calculating wages based on an "average regional wage"; increase the minimum wage requirements from 85 percent to 90 percent of the average county wage (or 90 percent of the proposed average regional wage); increase the wage cap from $9.31 to $9.50; establish a three-year time frame for job creation for loans and forgivable loans; and remove outdated references to the Iowa Code.

A public hearing to receive comments about the proposed amendments was held on September 3, 1997. Comments were received in support of, and in opposition to, the average regional wage calculation and the establishment of a $7 floor. The following changes were made to the proposed rules as a result of the comments received:

These amendments do not include the proposed establishment of a starting project wage "floor" of $7 per hour for an existing Iowa business or $7.50 for a business being recruited to Iowa. During the comment period, concerns were raised about the potential adverse impact such a rule would have on rural communities. The IDED Board reviewed these comments and decided not to adopt that provision of the proposed amendments. Proposed subparagraph 53.6(1)"i"(5) which established the "floor" wage was not adopted.

Proposed subparagraph 53.6(1)"i"(6) was renumbered as 53.6(1)"i"(5) and amended to clarify that a community may submit a community survey to document that a significant differential exists between the actual local county wage and the average county wage or average regional wage. A project would not qualify unless the starting project wage was clearly above the survey wage. Language was inadvertently added to the last sentence of the proposed rule which resulted in allowing a community to attempt to document a lower wage as shown by a local survey, but disqualifying the project unless the wages were above the average county wage or regional wage--the very averages the community would be attempting, by use of the survey, to show were too high.

These amendments are intended to implement Iowa Code sections 15.315 to 15.320.

These amendments will become effective on December 24, 1997.

The following amendments are adopted.

ITEM 1. Amend rule 261--53.2(15) by amending the definitions of "Agreement expiration date," "Average county wage scale," "Community base employment," and "Project expiration date" and by adding a new definition, "Average regional wage," as follows:

"Agreement expiration date" means the date the CEBA agreement expires. In the case of a forgivable loan, the expiration date is the date of final loan repayment, usually five years from the date of award.

"Average county wage scale" means the average the department calculates using the most current four quarters of wage and employment information as provided in the Quarterly Covered Wage and Employment Data report as provided by the Iowa department of employment services workforce development department, audit and analysis section. Agricultural/mining and governmental employment categories are deleted in compiling the wage information.

"Average regional wage" means the wage calculated by the department using a methodology in which each particular county is considered to be a geographic center of a larger economic region. The wage threshold for the central county is calculated using the average wage of that county, plus each adjoining Iowa county, so that the resulting figure reflects a regional average that is representative of the true labor market area. In performing the calculation, the greatest importance is given to the central county by "weighting" it by a factor of four, compared to a weighting of one for each of the other adjoining counties. The central county is given the greatest importance in the calculation because most of the employees in that central county will come from the same county, as compared to commuters from other adjoining counties.

"Community base employment" means the total number of full-time equivalent jobs the business employs at the time of application for CEBA funds less any jobs retained as a direct result of the CEBA project.

"Project expiration date" means the date when the recipient must complete all project expenditures and have fulfilled the job attainment goal. In the case of small business gap financing projects, it is two three years from the date of award. In the case of venture projects, business opportunities or new product development projects, it could be up to five years.

ITEM 2. Amend subrule 53.6(1) as follows:

53.6(1) General policies.

a. An applicant may submit as many different applications as it wishes at any time. However, if the department is reviewing two or more applications from the same applicant at the same time, it may ask the applicant to rank them in the order preferred by the applicant;

b. Only one applicant may apply for any given project;

c. No single project may be awarded more than $1 million unless at least two-thirds of the members of the board approve the award. However, this restriction will not apply after the first $10 million has been credited to the CEBA program in any given year. This restriction does not apply to the float loan described in 53.5(2)"4."

d. No single project may be awarded a forgivable loan of more than $500,000.

e. No single project may be awarded more than $500,000 unless all other applicable CEBA requirements and each of the following criteria is met:

(1) The business has not closed or substantially reduced its operation in one area of the state and relocated substantially the same operation in the community. This requirement does not prohibit a business from expanding its operation in the community if existing operations of a similar nature in the state are not closed or substantially reduced.

(2) The business must provide and pay at least 80 percent of the cost of a standard medical and dental insurance plan or its equivalent for all full-time employees working at the facility in which the new investment occurred.

(3) The business shall agree to pay a median wage for new full-time jobs of at least 130 percent of the average wage in the county in which the community is located. This requirement may be waived by the department in the case of a float loan described in 53.5(2)"4" if the net value of the award is determined by the department to be less than $500,000.

f. No more than $100,000 may be awarded to a business start-up unless that business's average starting wage equals or exceeds 85 90 percent of the average county average wage, 90 percent of the average regional wage, or $9.31 $9.50, whichever is lower lowest, and over 50 percent of the business's employees' wages are at or above the 85 90 percent level or $9.31 $9.50, whichever is lower.

g. To be eligible for assistance the business shall provide for a preference for hiring residents of the state or the economic development area, except for out-of-state employees offered a transfer to Iowa or the economic development area.

h. All applicants for financial assistance shall comply with the requirements of 261--Chapter 80.

i. To be eligible for assistance, applicants shall meet the following wage threshold requirements:

(1) Project positions shall have an average starting wage of at least 85 90 percent of the average county wage scale, 90 percent of the average regional wage, or $9.31 $9.50, whichever is lower lowest.

(2) Fifty percent or more of the jobs to be created or retained shall have an average starting wage of at least 85 90 percent of the average county wage scale, 90 percent of the average regional wage, or $9.31 $9.50, whichever is lower lowest.

(3) If the applicant is a business start-up, project positions shall have an average starting wage of at least 75 80 percent of the average county wage scale, 80 percent of the average regional wage, or $9.31 $9.50, whichever is lower lowest, and over 50 percent of the business's employees' wages shall be at or above the 75 80 percent level or $9.31 $9.50, whichever is lower.

(4) The $9.31 $9.50 wage scale referenced in this rule shall be adjusted annually by calculating the percent increase or decrease in average Iowa hourly earnings level for all production and nonproduction workers in the private sector from the month of June of the previous year to June of the current year. This report is compiled by the Iowa department of employment services. workforce development department.

(5) Where the community can document to the department's satisfaction that a significant differential exists between the actual local county wage (as determined by a local employer survey) and the average county wage or average regional wage, the department may substitute the community survey results for the average county wage or average regional wage for consideration in a specific project. Qualification of a project would not be anticipated unless the starting project wage was clearly above the survey wage.

(6) The department may approve a project where the starting project wage is less than the average county wage or average regional wage under the following conditions:

1. The starting wage is associated with a training period which is of relatively short duration, as documented by the business; and

2. The wages will exceed 90 percent of the average county wage, 90 percent of the average regional wage, or $9.50 at the conclusion of the training period as documented by the business; and

3. CEBA funds will be released only at the conclusion of the training period when the average county or average regional wage is achieved.

j. A business receiving moneys from the department for the purpose of job creation shall make available 10 percent of the new jobs created for PROMISE JOBS program participants.

k. Transition provision. Applications submitted on or before September 8, 1994, from a primary business within a quality jobs enterprise zone (QJEZ) designated by the director pursuant to Iowa Code section 15A.9, shall comply with the administrative rules for the CEBA program in effect on the date the department designated the area as a QJEZ.

ITEM 3. Amend subrule 53.7(2), paragraph "b," as follows:

b. The quality of jobs to be created. In rating the quality of the jobs, the department shall award more points to those jobs that have a higher wage scale, a lower turnover rate, are full-time, career-type positions, or have other related factors. Those applications that have average starting wage scales which are 15 10 percent or more below that of the average county wage scale or average regional wage shall be given an overall score of zero. Business start-ups shall be given a score of zero only if their wage scales are 25 20 percent or more below that of the average county wage scale or average regional wage.

ITEM 4. Amend subrule 53.8(3), paragraph "a," as follows:

a. Local effort compared with local resources. Maximum -- 20 points. This includes assistance from the city, county, community college, chambers of commerce, economic development groups, utilities, or other local sources, compared to the resources reasonably available from those sources. Up to a maximum of 25 percent of the assistance from Iowa Code chapter 260E or 260F or tax abatements issued under Iowa Code chapters 404 and 427B and 100 percent of the local dollars committed to a RISE project will be considered local effort. The form of local assistance compared to the form of CEBA assistance requested will be considered (e.g., in-kind, grant, loan, forgivable loan, job training, tax abatement, tax increment financing, etc.). The dollar amount of local effort and the timing of the local effort participation as compared to the dollar amount and timing of the requested CEBA participation will also be considered. Conventional financing, inadequately documented in-kind financing, and local infrastructure projects not specifically directed at the business are not considered local effort.

ITEM 5. Amend subrule 53.8(4) as follows:

53.8(4) Project period. Projects funded under rule 53.8(15) are considered to have a project period of two three years for meeting job attainment goal and other related performance goals.

Forgivable loans require that the recipient achieve the pledged jobs at the project expiration date and upon the agreement expiration date or be subject to penalties as set out in rule 53.13(15).

The recipient shall maintain the pledged jobs for 90 days beyond the project expiration date or will be subject to penalties as provided for in rule 53.13(15).

ITEM 6. Amend subrule 53.9(4) as follows:

53.9(4) Project period. Projects funded under rule 53.9(15) are considered to have up to a maximum five-year project period.

Forgivable loans require that the recipient achieve the pledged jobs at the project expiration date and upon the agreement expiration date or be subject to penalties set out in rule 53.13(15).

The recipient shall maintain the pledged jobs for 90 days beyond the project expiration date or will be subject to penalties as provided for in rule 53.13(15).

ITEM 7. Amend 53.13(3)"a"(2) as follows:

(2) If the recipient achieves more than 50 percent of the job attainment goal, the award will be prorated between the percentage of jobs attained and the percentage of shortfall. The pro-rata amount of the award associated with the percentage of shortfall will be amortized over the remaining term of the forgivable loan, or in the case of a grant, buydown, or interest subsidy, three years over a two-year period (beginning at the agreement project expiration date) at an annual interest rate as determined periodically by the board. Interest will be charged beginning with the date the recipient received the funds; interest due from the date funds are received to the closeout date will be due immediately.

[Filed 10/23/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7646A

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts amendments to Chapter 53, "Community Economic Betterment Program," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 7355A on July 16, 1997. The IDED Board adopted the amendments on October 23, 1997.

These amendments provide for a new Venture Project component of the CEBA program. The amendments include eligibility requirements for Venture Project applications, application procedures and evaluation criteria.

A public hearing to receive comments about the proposed amendments was held on August 5, 1997. No comments were received. These amendments are identical to the proposed amendments.

These amendments are intended to implement Iowa Code sections 15.315 to 15.325.

These amendments will become effective on December 24, 1997.

The following amendments are adopted.

ITEM 1. Amend 261--53.2(15) by adding the following new definition in alphabetical order:

"Venture project" means an economic activity performed by a start-up or early-stage company.

ITEM 2. Amend paragraph 53.6(3)"e" as follows:

e. The department will rate and rank applications according to the criteria in rule 53.7(15). Additionally, for small business gap financing applications the department will use rule 53.8(15), or for new business opportunities, or new product development, or venture project applications the department will use rule 53.9(15). The department will present its recommendations on rating and ranking to the committee. The committee will present its recommendations to the board. The board will have final authority in the rating and ranking of applications. The board will also make the final decision to approve, reject, table, defer, or refer an application to another funding program. The department may negotiate with the applicant or proposed recipient concerning dollar amounts, terms, or any other elements of the application package. The board may offer an award in a lesser amount or structured in a manner different than requested.

ITEM 3. Amend 261--53.9(15) as follows:

261--53.9(15) New business opportunities, and new product development components, and venture project components.

53.9(1) Additional criteria and targeting for new business opportunities and new product development components. The criteria in rule 53.7(15) will be used for evaluating applications under these components. Applications for these components must be for businesses that show the following characteristics:

a. The industry is one targeted within the state's strategic plan; or

b. The resulting economic activity is underrepresented in the state's overall economic mix; and

c. The project offers a quality economic opportunity to Iowans.

53.9(2) Additional criteria for venture projects. The criteria in rule 53.7(15) will be used for evaluating applications under this component. Applications for this component shall also meet the following criteria:

a. The business requesting CEBA assistance must be a start-up or early-stage company; and

b. The business must accept the assistance as an equity-like investment; and

c. The CEBA assistance is limited to $100,000.

53.9(2) 53.9(3) Applications. Applicants applying for assistance under these components shall use the general business financial assistance application form provided by the department. The department may, at its option, transfer requests to a different financial assistance program, including but not limited to:

a. Small business gap financing component of CEBA;

b. EDSA (economic development set-aside program);

c. BDFC (business development finance corporation program); or

d. PFSA (public facilities set-aside program).

53.9(3) 53.9(4) Rating system. The rating system for proposed projects will be as follows:

a. Local effort (as defined in 53.8(3)"a"). Maximum -- 20 points;

b. Private contributions as compared to CEBA request (as defined in 53.8(3)"c"). Maximum -- 20 points;

c. Certified community builder community (as defined in 53.8(3)"c"). Maximum -- 10 points;

d. Extra points if small business, as defined by the SBA. Maximum -- 10 points;

e. Project impact, as defined in 53.8(3)"f" and 53.8(4). Maximum -- 120 points;

f. Potential for future expansion of the industry in general. Maximum -- 20 points. This factor awards additional points for those projects that tend to show a greater potential for expansion of that industry within Iowa.

The maximum total score possible is 200 points.

Projects that score less than 120 points in rule 53.9(15) will not be recommended for funding by the staff to the committee.

53.9(4) 53.9(5) Project period. Projects funded under rule 53.9(15) are considered to have up to a maximum five-year project period.

Forgivable loans require that the recipient achieve the pledged jobs at the project expiration date and upon the agreement expiration date or be subject to penalties set out in rule 53.13(15).

The recipient shall maintain the pledged jobs for 90 days beyond the project expiration date or will be subject to penalties as provided for in rule 53.13(15).

[Filed 10/23/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7645A

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts Chapter 61, "Physical Infrastructure Assistance Program," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 7500A on September 10, 1997. The IDED Board adopted these amendments on October 13, 1997.

The new rules establish program guidelines, describe application procedures, outline review criteria, and provide information on program administration.

A public hearing to receive comments about the proposed new chapter was held on September 30, 1997. No comments were received at the public hearing. A suggestion was made by the Administrative Rules Review Committee that the Department should consider involving the IDED Board if an award would exceed $1 million. The final rules have incorporated this recommendation. Subrule 61.7(2) was amended to require the director to advise and consult with the IDED Board if an award would be more than $1 million.

These rules will become effective on December 24, 1997.

These rules are intended to implement Iowa Code section 15E.175.

The following new chapter is adopted.

CHAPTER 61

PHYSICAL INFRASTRUCTUREASSISTANCE PROGRAM

261--61.1(15E) Purpose. The purpose of the physical infrastructure assistance program (PIAP) is to provide financial assistance for the physical infrastructure necessary to aid in community or business development or redevelopment projects which involve substantial investment; provide for the opportunity for creating quality, high-wage jobs; and have statewide impact.

261--61.2(15E) Eligible activities.

61.2(1) Eligible activities for assistance include, but are not limited to, physical infrastructure improvements of:

a. Any mode of transportation infrastructure; or

b. Public works and utilities such as water, sewer, power, or telecommunications; or

c. Physical improvements which mitigate, prevent, or eliminate environmental contaminants.

61.2(2) The department may also fund other activities deemed appropriate and consistent with program purposes.

261--61.3(15E) Eligibility requirements. To be eligible for program funds a business shall, as a result of the proposed project, demonstrate that it meets each of the following requirements:

61.3(1) Quality, high-wage jobs. A business shall create or retain quality, high-wage, full-time jobs. The quality of the jobs will be measured by factors such as the wage level and benefits provided.

61.3(2) Substantial capital investment. A business shall make a substantial private capital investment in the project. Capital investment is defined as the costs associated with land acquisition, site development, building construction or improvements, fixtures, machinery and equipment.

61.3(3) Statewide impacts. An applicant shall show, as a result of the proposed project, significant beneficial impacts to the state.

61.3(4) No closure or reduction in operations. A business shall not close or substantially reduce operations at one location in Iowa and relocate substantially the same operation elsewhere in the state if the closure or reduction results in loss of employment.

61.3(5) Other funding sources unable to assist. The business's project must be of a size, nature or scope that the project could not be assisted through, or eligible for, financial assistance for the entirety of the project from other existing private, local, or state funds or programs.

261--61.4(15E) Application procedures.

61.4(1) Application required. To access program funds, an application must be submitted in the format specified by the department. Applications will be accepted from a city or county on behalf of the city or county, a nonprofit local development corporation, publicly owned utility, private utility, private developer or redeveloper. A business may also submit an application on its own behalf. Applicants other than a city or county shall obtain formal support from the city or county where the project is to be located.

61.4(2) Application contents. Applications shall include the following:

a. A project description including the private activity involved and the physical infrastructure affected.

b. A description of the consistency of the proposed project with state and local policies and plans for development. Project coordination with other physical infrastructure proj-ects in the area shall also be included in this project description.

c. An identification of the number of jobs to be created or retained as a result of the project and an explanation of why they are considered quality, high-wage jobs. The explanation shall include the job classifications, pay ranges, and benefits to be provided to the employees.

d. An identification of the amount, terms, and sources of all proposed public and private investments that the project will leverage and a statement concerning whether the other financing has been secured or is still to be arranged.

e. Cost estimates for all project activities.

f. A time frame within which the project will be completed.

g. A description of the immediate (within 24 months) impacts as a result of the project.

h. A description of the long-term (beyond 24 months), speculative impacts as a result of the project.

i. A description of statewide impacts as a result of the project.

j. An explanation as to why the project could not be entirely assisted through, or is not eligible for, financial assistance from other existing private, local, or state funds or programs.

k. The type of financing (e.g., loan, forgivable loan) sought and the amount of assistance requested.

l. Signed acknowledgements from the city or county, or both, and the business stating that the project is supported and will occur if PIAP funding is provided.

m. Current company financials.

261--61.5(15E) Application review. Completed applications will be reviewed using the following factors:

61.5(1) Quality of the jobs. In determining the quality of the jobs, the department will consider the wage levels, benefit package, turnover rate, full-time and career positions, and other relevant factors.

61.5(2) Substantiality of the capital investment pledged by the business.

61.5(3) Closure or relocation of the business's operations and any resulting loss of employment.

61.5(4) Access to other funding. The department will review the application to assess whether the project could reasonably be funded under other existing private, local, or state funds or programs.

61.5(5) The number of jobs to be created or retained.

61.5(6) The amount, terms, and sources of all proposed public and private investments that the project will leverage.

61.5(7) The immediate and long-term impacts the proposed project will have on the economy of the community and the state.

61.5(8) The financial need of the business.

61.5(9) The degree of coordination the project has with state and local development plans.

61.5(10) The feasibility of the project.

61.5(11) Any other information about the business that has a bearing on the likely success of the project.

261--61.6(15E) Award process.

61.6(1) Applications will be reviewed and summarized by department staff. Staff will prepare a summary for the director who shall make a final decision on the application.

61.6(2) Upon an application's submission, department staff will consult with the Iowa departments of transportation and natural resources and any other relevant state agency. The purpose of these consultations will be to ensure that the activities proposed by the applicant would be conducted in a manner consistent with the plans and policies of appropriate state agencies as they relate to physical infrastructure proj-ects.

61.6(3) The department may request, and reimburse related costs for, the department of natural resources to assess environmentally contaminated sites and to identify remedial actions necessary to enhance the site for development or redevelopment.

61.6(4) In anticipation of the submission of a formal application, the director may, upon receipt of a letter of intent to apply from an eligible applicant, reserve physical infrastructure assistance funds for a period of 90 days from receipt of the letter of intent. The applicant will receive written notice of the reservation of funds and the date by which a formal application shall be submitted.

261--61.7(15E) Forms of assistance available; award amount.

61.7(1) Forms of assistance. Funding from state fiscal years 1997 and 1998 is available for providing assistance in the form of a loan, forgivable loan, loan guarantee, cost-share, indemnification of costs, indemnification of liability, or any combination deemed to be the most efficient in facilitating the infrastructure project. Any indemnification for liability agreements must be entered into prior to June 30, 1998.

61.7(2) Amount of award. The maximum award per project shall not exceed $1 million. The director may waive this award limit upon a showing that the business exceeds the eligibility requirements for the program; or the wages to be paid are in excess of those paid in the community or the industry; or the project will bring a substantial economic benefit to the community or the state. If an award would exceed the $1 million level, the director shall advise and consult with the IDED board prior to approving a waiver of the award limit. Any award in excess of $1 million shall be secured by an irrevocable letter of credit.

261--61.8(15E) Program administration.

61.8(1) Contract. The department and the recipient of PIAP funds shall enter into a contract which shall include, but not be limited to, the following terms: duration of contract, number of jobs to be created or retained, security requirements, default and repayment provisions.

61.8(2) Monitoring. The department reserves the right, at reasonable intervals, to monitor projects to ensure compliance with Iowa Code section 15E.175, these rules, and contractual obligations.

These rules are intended to implement Iowa Code section 15E.175.

[Filed 10/23/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7651A

EDUCATION DEPARTMENT[281]

Adopted and Filed

Pursuant to the authority of Iowa Code section 256.7(5), the Iowa State Board of Education hereby adopts Chapter 8, "ICN Subsidization Reimbursement Procedures," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on August 27, 1997, as ARC 7470A, and the rules were simultaneously Adopted and Filed Emergency as ARC 7471A.

A public hearing was held on September 16, 1997. No comments were received. These rules are identical to those published under Notice of Intended Action.

This chapter implements 1997 Iowa Acts, House File 730, section 2, subsection (2), paragraph "a," requiring the Department of Education to develop rules to disburse $2.5 million to the Iowa Communications Network.

This chapter will become effective December 24, 1997, at which time the Adopted and Filed Emergency chapter is hereby rescinded.

The following new chapter is adopted.

CHAPTER 8

ICN SUBSIDIZATION
REIMBURSEMENT PROCEDURES

281--8.1(77GA,HF730) Definitions. For the purposes of interpreting these rules, the definitions of 751 IAC 7.1(8D) shall apply, except as follows:

"Department" means the Iowa department of education.

"School," for purpose of this rule only, means a public or nonpublic school, area education agency or community college which is considered an authorized user under 751 IAC 7.1(8D).

"Subsidization fund" means the funds appropriated to the department in 1997 Iowa Acts, House File 730, section 2, or any supplemental appropriations given during the fiscal year ending June 30, 1998, for the purpose of reimbursing the commission for the costs of providing interactive video service to schools.

281--8.2(77GA,HF730) Subsidization reimbursement. The department shall reimburse the commission from the subsidization fund that portion of the cost of providing interactive video service to schools which is not included in the rates charged to such users for such service. The department shall reimburse the commission in accordance with rates approved by the commission.

281--8.3(77GA,HF730) Billing/payment process. The commission shall submit to the department a consolidated monthly invoice for the cost of providing interactive video service to schools which is not included in the rates charged to such users for such service. Monthly authorization for payment will be determined by the department based upon a review of the billing statements received from the commission. In addition to the consolidated monthly invoice, the billing statements shall, at minimum, include:

8.3(1) Video usage billing.

a. The name of the requesting authorized user;

b. The title of each individual session;

c. The number of sites in each individual session;

d. The number of hours of video usage per session;

e. The total charge for each session;

f. The portion charged to the requesting authorized user;

g. The portion charged to the subsidization fund;

h. The total charge to the subsidization fund.

8.3(2) Video circuit billing.

a. The name of the school;

b. The start billing date for the circuit charges;

c. The number of annual hours produced to date at the school;

d. The monthly charge based upon annual production to date at the school;

e. The first month's charge for new site addition (if applicable);

f. The monthly charge for the existing site;

g. The total charge to the subsidization fund.

281--8.4(77GA,HF730) Subsidization fund. The department shall not be liable for reimbursing the commission any amounts which are in excess of the appropriation made in 1997 Iowa Acts, House File 730, section 2, or any supplemental appropriation for this purpose during the fiscal year ending June 30, 1998.

281--8.5(77GA,HF730) Remaining fund balance. Any remaining funds from the appropriation made in 1997 Iowa Acts, House File 730, section 2, or any supplemental appropriations given for this purpose during the fiscal year ending June 30, 1998, shall not revert to the general fund of the state but shall be available for expenditure during the subsequent fiscal year for the same purpose, and shall not be transferred to any other program or purpose.

281--8.6(77GA,HF730) Advance for authorized users. The department may advance to the commission moneys from the subsidization fund to support authorized users as determined appropriate by the commission.

These rules are intended to implement 1997 Iowa Acts, House File 730, section 2, subsection (2), paragraph "a."

[Filed 10/24/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7650A

EDUCATION DEPARTMENT[281]

Adopted and Filed

Pursuant to the authority of Iowa Code section 256.7(5), the Iowa State Board of Education hereby amends Chapter 12, "General Accreditation Standards," Iowa Administrative Code.

The purpose of these amendments is to conform the rules to recently passed legislation. These changes clarify the method of calculating the minimum hours of instruction time for schools and permit the sharing of student record information between schools and the juvenile justice system under an interagency agreement.

Notice of Intended Action was published in the Iowa Administrative Bulletin on August 27, 1997, as ARC 7469A. There are no changes from the Notice of Intended Action.

A public hearing was held on September 16, 1997. No comments were received.

These amendments are intended to implement Iowa Code subsection 256.7(19), paragraph "b," and 1997 Iowa Acts, Senate File 515, section 39.

These amendments will become effective December 24, 1997.

The following amendments are adopted.

ITEM 1. Amend subrule 12.2(3) as follows:

12.2(3) Minimum school day. A school day shall consist of a minimum of five and one-half hours of instructional time for all grades one through twelve. The minimum hours shall be exclusive of the lunch period. Passing time between classes as well as time spent on parent-teacher conferences may be counted as part of the five and one-half hour requirement. The school or school district may record a day of school with less than the minimum instructional hours if emergency health or safety factors require the late arrival or early dismissal of pupils on a specific day; or if the total hours of instructional time for all grades one through twelve in any five consecutive school days equal a minimum of 271/2 hours, even though any one day of school is less than the minimum instructional hours because of a staff development opportunity provided for the instructional professional staff or because parent-teacher conferences have been scheduled beyond the regular school day.

Furthermore, if the total hours of instructional time for the first four consecutive days equal at least 271/2 hours because parent-teacher conferences have been scheduled beyond the regular school day, a school or school district may record 0 hours of instructional time on the fifth consecutive school day as a minimum school day.

ITEM 2. Amend subrule 12.3(6) as follows:

12.3(6) Student records. Each board shall require its administrative staff to establish and maintain a system of pupil records. This system shall include for each pupil a permanent office record and a cumulative record.

The permanent office record shall serve as a historical rec-ord of official information concerning the pupil's education. At a minimum it should reflect evidence of attendance and educational progress, provide an official transcript, have all base data for use in planning to meet educational needs, and provide all data for official school reports. This record is to be permanently maintained and stored in a fire-resistant safe or vault.

The cumulative record shall provide a continuous and current record of significant information on progress and growth. It should reflect information such as courses taken, scholastic progress, school attendance, physical and health record, experiences, interests, aptitudes, attitudes, abilities, honors, extracurricular activities, part-time employment, and future plans. It is the "working record" used by the instructional professional staff in understanding the pupil. At the request of a receiving school or school district, a copy of the cumulative record shall be sent to officials of that school when a pupil transfers.

For the sole purpose of implementing an interagency agreement with state and local agencies in accordance with 1997 Iowa Acts, Senate File 515, section 39, a pupil's permanent record may include information contained in the cumulative record as defined above.

The board shall adopt a policy concerning the accessibility and confidentiality of pupil records that complies with the provisions of the federal Family Educational Rights and Privacy Act of 1974, as amended, and Iowa Code chapter 22.

[Filed 10/24/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7653A

ENVIRONMENTAL PROTECTION COMMISSION[567]

Adopted and Filed

Pursuant to the authority of Iowa Code section 455B.105(3), the Environmental Protection Commission hereby amends Chapter 64, "Wastewater Construction and Operation Permits," Iowa Administrative Code.

These amendments to Chapter 64 reissue General Permits No. 1 and No. 2 which authorize the discharge of storm water. These general permits were issued in 1992 for a five-year duration and expired on October 1, 1997. This action renews them, extending coverage another five years to October 1, 2002. A third general permit which addresses the storm water discharge needs of asphalt plants, concrete batch plants, rock-crushing plants, and construction sand and gravel facilities has been added. Copies of the General Permit No. 1 and General Permit No. 2 as well as the new General Permit No. 3 are available upon request from the Iowa Department of Natural Resources, Wallace State Office Building, 900 E. Grand Avenue, Des Moines, Iowa 50319; fax (515)281-8895.

Notice of Intended Action was published in the Iowa Administrative Bulletin on July 16, 1997, as ARC 7381A.

A public hearing regarding these amendments was held on August 7, 1997. Comments were received, both in writ-ing and orally at the hearing, regarding the proposed rule changes and general permit adoption.

The adopted amendments differing from those in the Notice of Intended Action contain changes made in response to comments received regarding General Permit No. 3. The principal change was to extend coverage under General Permit No. 3 to include Construction Sand and Gravel Facilities. It was agreed that these facilities are closely related to the paving industry and would have similar storm water runoff characteristics. Therefore, all references to General Permit No. 3 were changed to read "Storm Water Discharge Associated with Industrial Activity From Asphalt Plants, Concrete Batch Plants, Rock Crushing Plants, and Construction Sand and Gravel Facilities".

In response to comments, there were wording changes made in the new subparagraph 64.6(1)"c"(3) proposed in the Notice of Intended Action for clarification and to prevent misinterpretation of the Notice of Intent provision for General Permit No. 3. Appropriate wording was also added to General Permit No. 3.

These amendments are intended to implement Iowa Code chapter 455B, division I.

These amendments will become effective December 24, 1997.

The following amendments are adopted.

ITEM 1. Amend paragraph 64.6(1)"a" by adding the following new subparagraph (3):

(3) General Permit No. 3 "Storm Water Discharge Associated with Industrial Activity from Asphalt Plants, Concrete Batch Plants, Rock Crushing Plants, and Construction Sand and Gravel Facilities" Form 542-1415, containing the information identified for General Permit No. 1 in subparagraph (1) of this paragraph.

ITEM 2. Amend paragraph 64.6(1)"c" by adding the following new subparagraph (3):

(3) General Permit No. 3 "Storm Water Discharge Associated with Industrial Activity from Asphalt Plants, Concrete Batch Plants, Rock Crushing Plants, and Construction Sand and Gravel Facilities." Public notification requirements for this general permit are the same as those specified for General Permit No. 1 found in subparagraph (1) of this paragraph.

Upon initial issuance of the permit, the public notice shall be published in at least two newspapers with the largest circulation in the area in which the facility is located or the activity will occur. Upon relocation of a facility authorized to discharge under General Permit No. 3 to a site not included in a prior notice, an applicant shall file a complete Notice of Intent by submitting to the department materials required in paragraphs "a" to "c" of this subrule except that the public notice shall be published in one newspaper with the largest circulation in the area in which the facility is to be located or the activity occurs. The newspaper notice shall, at a minimum, contain the information specified in subparagraph 64.6(1)"c"(1).

ITEM 3. Amend subrule 64.6(2) as follows:

64.6(2) Authorization to discharge under a general permit. Upon the submittal of a complete Notice of Intent in accordance with 64.6(1) and 64.3(4)"b," the applicant is authorized to discharge, unless notified by the department to the contrary. The discharge authorization date for all storm water discharges associated with industrial activity that are in existence on or before October 1, 1992 1997, shall be October 1, 1992 1997. The applicant will receive notification by the department of coverage under the general permit. If any of the items required for filing a Notice of Intent specified in 64.6(1) are missing, the department will consider the application incomplete and will notify the applicant of the incomplete items.

ITEM 4. Amend subrule 64.8(2), introductory paragraph, as follows:

64.8(2) Renewal of coverage under a general permit. Coverage under a general permit will be renewed subject to the terms and conditions in paragraphs "a" to "c d."

ITEM 5. Amend subrule 64.8(2) by adding the following new paragraph "d":

d. The Notice of Intent requirements shall not include a public notification when a general permit has been reissued or renewed provided the permittee has already submitted a complete Notice of Intent including the public notification requirements of 64.6(1). Another public notice is required when any information, including facility location, in the original public notice is changed.

ITEM 6. Amend rule 567--64.15(455B) as follows:

567--64.15(455B) General permits issued by the department. The following is a list of general permits adopted by the department through the Administrative Procedure Act, Iowa Code chapter 17A, and the term of each permit.

64.15(1) Storm Water Discharge Associated with Industrial Activity, NPDES General Permit No. 1, effective October 1, 1992, to October 1, 1997 October 1, 1997, to October 1, 2002. Facilities assigned Standard Industrial Classification codes 1442, 2951, 3273, and those facilities assigned Standard Industrial Classification codes 1422 and 1423 which are engaged primarily in rock crushing are not eligible for coverage under General Permit No. 1.

64.15(2) Storm Water Discharge Associated with Industrial Activity for Construction Activities, NPDES General Permit No. 2, effective October 1, 1992, to October 1, 1997 October 1, 1997, to October 1, 2002.

64.15(3) Storm Water Discharge Associated with Industrial Activity from Asphalt Plants, Concrete Batch Plants, Rock Crushing Plants, and Construction Sand and Gravel Facilities, NPDES General Permit No. 3, effective October 1, 1997, to October 1, 2002. General Permit No. 3 author-izes storm water discharges from facilities primarily engaged in manufacturing asphalt paving mixtures and which are classified under Standard Industrial Classification 2951, primarily engaged in manufacturing Portland cement concrete and which are classified under Standard Industrial Classification 3273, those facilities assigned Standard Industrial Classifications 1422 or 1423 which are primarily engaged in the crushing, grinding or pulverizing of limestone or granite, and construction sand and gravel facilities which are classified under Standard Industrial Classification 1442. General Permit No. 3 does not authorize the discharge of water resulting from dewatering activities at rock quarries.

ITEM 7. Amend subrule 64.16(1) as follows:

64.16(1) A person who applies for an individual permit or coverage under a general permit to construct, install, modify or operate a disposal system shall submit along with the application an application fee and a permit fee as specified in 64.16(3). Fees shall be assessed based on the type of permit coverage the applicant requests, either as general permit coverage or as an individual permit. At the time the application is submitted, the applicant has the option of paying an annual permit fee or either a five-year a multiyear permit fee, whichever is available. The multiyear permit fee provides coverage under the general permit through the expiration date of the general permit.

Fees are not refundable and are nontransferable; . however, if If the application is returned to the applicant by the department, the application fee will be retained but the permit fee will be returned. No fees will be returned if the permit or permit coverage is suspended, revoked, or modified, or if the activity is discontinued. Failure to submit the appropriate application fee and permit fee renders the application incomplete and the department shall suspend processing of the application until the fee is received.

ITEM 8. Amend subrule 64.16(3) as follows:

64.16(3) Fee schedule. The following fees have been adopted:

a. For coverage under the NPDES General Permit the following fees apply:

(1) Storm Water Discharges Associated with Industrial Activity, NPDES General Permit No. 1.

Application Fee $100

and

Annual Permit Fee $150 (per year)

or

Multiyear Five-year Permit Fee $450 $600

Four-year Permit Fee $450

Three-year Permit Fee $300

(Coverage provided by the multiyear permit fee expires concurrently with the expiration date of the general permit. Maximum coverage is five years.) (Coverage provided by the five-year, four-year, and three-year permit fees expires no later than the expiration date of the general permit. Maximum coverage is five years, four years, and three years, respectively.)

(2) Storm Water Discharge Associated with Industrial Activity for Construction Activities, NPDES General Permit No. 2. The fees are the same as those specified for General Permit No. 1 in subparagraph (1) of this paragraph.

(3) Storm Water Discharge Associated with Industrial Activity from Asphalt Plants, Concrete Batch Plants, and Rock Crushing Plants, NPDES General Permit No. 3. The fees are the same as those specified for General Permit No. 1 in subparagraph (1) of this paragraph.

b. Individual NPDES permit fees. The following fees are applicable for the described individual NPDES permit:

(1) For storm water discharge associated with industrial activity, submitted on Form 2F, where the storm water is composed entirely of storm water or combined with process wastewater or other non-storm water wastewater.

Application Fee $150

and

Annual Permit Fee $300 (per year)

or

Five-year Permit Fee $1,250

(2) For storm water discharge from large and medium municipal separate storm sewers (systems serving a population of 100,000 or more).

Application Fee $150

and

Annual Permit Fee $300 (per year)

or

Five-year Permit Fee $1,250

(3) For participants in an approved group application and EPA has issued a model general permit and no industry-specific general permit is available or being developed.

Application Fee $150

and

Annual Permit Fee $300 (per year)

or

Five-year Permit Fee $1,250

[Filed 10/24/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7659A

INSURANCE DIVISION[191]

Adopted and Filed

Pursuant to the authority of Iowa Code section 505.8, the Divison of Insurance hereby amends Chapter 10, "Licensing of Insurance Producers," Iowa Administrative Code.

These amendments add a new rule which provides for the voluntary licensing of an insurance agency. The rule outlines the procedures and requirements for an insurance agency to become licensed as an insurance producer in Iowa.

Notice was published on September 10, 1997, and a public hearing was held on October 1, 1997. These amendments are identical to those published as ARC 7506A.

The amendments will become effective January 1, 1998.

The amendments are intended to implement Iowa Code chapter 522.

The following amendments are adopted.

ITEM 1. Amend 191--10.2(522) by adding the following new definition in alphabetical order:

"Insurance agency" shall mean any partnership, corporation, or limited liability company, or other entity which has been issued a federal tax identification number for whom insurance producers transact or do business with the public or insurance companies, but shall not mean a natural person.

ITEM 2. Insert the following new rule and renumber existing rules 191--10.8(522) to 191--10.23(252J) as 191-- 10.9(522) to 191--10.24(252J).

191--10.8(522) Licensing of an insurance agency.

10.8(1) Application. An insurance agency may apply for an Iowa insurance license. For purposes of this rule, upon approval of an application by the division, the insurance agency shall be classified as a producer and shall be subject to all standards of conduct applicable to producers.

10.8(2) Requirements. To qualify for such a license, the insurance agency must:

a. File a completed license application on the form prescribed by the division;

b. Designate one officer, owner, partner, or member of the insurance agency, which person also is a producer licensed by the division, as the person who will have full responsibility for the conduct of all business transactions of the insurance agency or of insurance producers affiliated with the insurance agency;

c. File a report of all insurance producers affiliated or employed with the insurance agency;

d. For a nonresident insurance agency, file a current certification of insurance agency licensure from the insurance commissioner for the insurance agency's resident state or, if the resident state does not license insurance agencies, file a request for a waiver of this requirement;

e. Pay the fee as set forth in rule 191--10.21(522) or the appropriate retaliatory fee;

f. Sign a certification in the form prescribed by the division designating the Iowa insurance commissioner as the insurance agency's agent for service of process regarding all insurance disciplinary matters and agreeing that service upon the commissioner has the same legal force and validity as personal service on the insurance agency; and

g. Provide the legal or trade name of the insurance agency and all business names, trade names, service marks, marketing names or other names under which the insurance agency may do business or operate.

10.8(3) License term. An insurance agency license issued under this rule shall be effective for three calendar years, including the year of application, and all insurance agency licenses shall expire on December 31 of the third calendar year.

10.8(4) License renewal. The division shall mail a renewal notice to the address of the insurance agency on file with the division on or before December 1. The renewal notice will include a current listing of all producers affiliated with that agency. The designated responsible producer shall strike through the names of the insurance producers no longer affiliated with the insurance agency and add the names of any affiliated insurance producers not on the list. The renewal notice form and renewal fee designated in subrule 10.20(5) must be received by the division on or before December 31.

10.8(5) License reinstatement. Insurance agency licenses may be reinstated through January 31 following the third calendar year by payment of the renewal fee and a $100 reinstatement fee. Insurance agencies that fail to complete the reinstatement process by January 31 must submit an application for a new insurance agency license.

10.8(6) Insurance agency appointments. Any insurance company admitted to do business in Iowa may appoint an Iowa-licensed insurance agency.

10.8(7) Business address. Insurance agencies licensed under this rule must maintain a current business address with the division. If an insurance agency's address is changed, written notification signed by the designated responsible producer must be submitted to the division within 30 days of the address change, stating:

a. The name of the insurance agency;

b. The federal tax identification number of the insurance agency;

c. The previous address of the insurance agency; and

d. The new address of the insurance agency.

10.8(8) Business name. Insurance agencies licensed under this rule must maintain a current business name with the division. If an insurance agency changes the name under which it is operating, written notification signed by the designated responsible producer must be submitted to the division within 30 days of the name change on the form prescribed by the division.

10.8(9) Effective date. This rule shall become effective January 1, 1998.

ITEM 3. Amend renumbered rule 191--10.21(522) by amending 10.21(4) as follows, inserting new subrule 10.21(5) and renumbering subrules 10.21(5) to 10.21(12) as 10.21(6) to 10.21(13).

10.21(4) The fee for the license licenses to which rule 10.5(522) and rule 10.8(522) refers refer is $50 for three years or, for a nonresident producer, the greater of $50 or the retaliatory fee.

10.21(5) The fee for renewal of an insurance agency license is $50 for three years or, for a nonresident producer, the greater of $50 or the retaliatory fee.

[Filed 10/30/97, effective 1/1/98]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7665A

LABOR SERVICES DIVISION[875]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 89A.3 and 17A.3(1), the Labor Commissioner hereby rescinds 347- Chapter 75, "Fees," and adopts 875--Chapter 75, "Fees," Iowa Administrative Code.

This amendment relates to adjusting installation, alteration, inspection and operating permit fees; adjusting requirements for reinspection fees; providing fees for extension of time for construction (temporary operating) permit, special inspector license, certification fee for performing safety tests on own or employer's facility; and minor clarifying and technical corrections.

The increase in fees is intended to meet the requirement of Iowa Code section 89A.13 for the fees to be based upon the costs of administering the chapter.

Notice of Intended Action was published in the Iowa Administrative Bulletin on September 24, 1997, as ARC 7534A.

Notice was given of the opportunity to request a public hearing. No hearing requests were received. Interested persons were given the opportunity to make oral or written submissions concerning the proposed amendments. A public hearing was held October 16, 1997. No written or oral comments were received.

The adopted rules are identical to those published under Notice of Intended Action with the exception of the proposed chapter number.

These rules are intended to implement Iowa Code section 89A.13.

These rules shall become effective on January 1, 1998.

The following chapter is adopted.

Rescind 347--Chapter 75 and adopt in lieu thereof the following new 875--Chapter 75:

CHAPTER 75

FEES

875--75.1(89A) New installations.

75.1(1) Installation inspection and permit fee for elevators, escalators, and moving walks shall be as follows: up to and including $40,000 of valuation--$130; over $40,000 of valuation--$130 plus $1 for each $1,000 or fraction thereof over $40,000 of valuation. This fee includes initial inspection and first-year operating permit. The fee for each installation consultative inspection is $100. If the facility does not comply at the time of the acceptance inspection and has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $100 for each additional inspection. The installation inspection and permit fee shall be remitted to the division of labor services when the application is filed.

75.1(2) Installation inspection and permit fee for dumbwaiters and inclined or vertical wheelchair lifts shall be as follows: up to and including $30,000 of valuation--$90; over $30,000 of valuation--$90 plus $1 for each $1,000 or any fraction thereof over $30,000 of valuation. This fee includes initial inspection and first-year permit. The fee for each installation consultative inspection is $60. If the facility does not comply at the time of the acceptance inspection and has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $60 for each additional inspection. The installation inspection and permit fee shall be remitted to the division of labor services when the application is filed.

875--75.2(89A) Alterations. Alteration inspection and permit fee shall be as follows: up to and including $20,000 of valuation--$90; over $20,000 of valuation--$90 plus $1 for each $1,000 or fraction thereof over $20,000 of valuation. This fee includes initial inspection and the alteration permit fee. The fee for each consultative inspection is $60. If the alteration does not comply at the time of an acceptance inspection and has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $60 for each additional inspection. The alteration inspection and permit fee shall be remitted to the division of labor services when the application is filed.

875--75.3(89A) Periodic (annual) inspections.

75.3(1) The periodic (annual) inspection fee for elevators, escalators, moving walks, or dumbwaiters and inclined or vertical wheelchair lifts shall be as follows: for each elevator, escalator, and moving walk--$50 plus $2 for every elevator landing; for each dumbwaiter--$35; for each hand-powered elevator--$40; for each inclined or vertical wheelchair lift--$40. This fee includes only the inspection. If the installation has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee as follows: for each elevator, escalator, and moving walk--$50; for each dumbwaiter--$35; for each hand-powered elevator and handicapped restricted-use elevator--$40; for each inclined or vertical wheelchair lift--$40. Each elevator, escalator, and moving walk consultative inspection fee is $50. Each inclined or vertical wheelchair lift consultative inspection fee is $40. Fees shall be remitted to the division of labor services within 30 days of the date inspected.

75.3(2) Tower facility inspections. The periodic (annual) inspection fee for tower facilities shall be $300. If the installation has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $300. Each consultative inspection fee is $300.

875--75.4(89A) Operating permits. Annual operating permit fee shall be as follows: for each facility--$30.

875--75.5(89A) Construction (temporary operating) permits. The construction (temporary operating) permit fee shall be as follows: for a facility--$100. This fee includes initial inspection and the construction (temporary operating) permit fee. If the installation has to be reinspected through no fault of the division of labor services, there shall be a reinspection fee of $100 for each additional inspection. Fees shall be remitted to the division of labor services when the application for a construction (temporary operating) permit is filed.

875--75.6(89A) Extension of time for permit. The extension of time fee for construction (temporary operating) permit shall be as follows: for each facility--$25.

875--75.7(89A) Special inspector license. The special inspector license biennial fee shall be $30. The fee must be paid for each renewal.

875--75.8(89A) Safety test certification for own facility. The annual certification fee for performing safety tests on own or employer's facility shall be $15. The certification fee must be paid for each renewal.

These rules are intended to implement Iowa Code section 89A.13.

[Filed 10/31/97, effective 1/1/98]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7667A

PERSONNEL DEPARTMENT[581]

Adopted and Filed

Pursuant to the authority of Iowa Code section 97B.15, the Iowa Department of Personnel hereby amends Chapter 21, "Iowa Public Employees' Retirement System," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on August 27, 1997, as ARC 7457A. No public comment was received on the proposed amendments. In addition, four of the proposed amendments, namely Items 3, 4, 6, and 9, were simultaneously Adopted and Filed Emergency as ARC 7458A. The following amendments are identical to those published under Notice of Intended Action and Adopted and Filed Emergency with one exception. The July 1, 1997, member contribution rate for the sheriffs, deputy sheriffs, and airport firefighters group under subparagraph 21.6(9)"b"(1) was inadvertently transposed with the July 1, 1997, member contribution rate for the protection occupations group under subparagraph 21.6(9)"c"(1). The correct July 1, 1997, member contribution rate for the sheriffs, deputy sheriffs, and airport firefighters group is 5.91 percent, and the correct July 1, 1997, member contribution rate for the protection occupations group is 5.64 percent. The corrected rates are included in these amendments at Item 3 below.

These amendments include the following:

1. Subparagraph 21.5(1)"a"(35). This amendment codifies a recent IPERS' interpretation that the definition of "adjunct instructors" includes persons who are teaching noncredit courses, and provides a means for determining when coverage for these individuals begins and ends.

2. Subrule 21.5(7). This subrule is amended to conform with a statutory change permitting a public employee to actively participate in IPERS while actively participating in another retirement system for a different position.

3. Subrule 21.6(9). Various amendments are made reducing the contribution rates effective July 1, 1997, for the sheriffs, deputy sheriffs, and airport firefighters group, and for the protection occupations group.

4. Subrule 21.11(6). A new paragraph is added requiring mandatory commencement of retirement benefits asIPERS' normal form of benefit, option 2 (or the lump sum actuarial equivalent if applicable), for terminated members who have attained the required beginning date under IRC Section 401(a)(9). This change is necessary to protect the plan's tax-qualified status under IRC Section 401(a).

5. Subparagraph 21.13(9)"c"(2). This amendment clarifies that IPERS' early retirement adjustment does not apply in calculating the minimum retirement benefits of a person who retired due to disability.

6. Subrule 21.13(10). The previous subrule adopted by IPERS relating to the calculation of benefits under the hybrid formula provided under Iowa Code section 97B.49(17) was too incomplete to adequately determine how benefits were actually calculated by IPERS. That subrule was rescinded and a more complete new subrule is adopted.

7. Subrule 21.13(11). A new subrule is adopted which formally adopts IPERS' current practices and procedures for calculating money purchase benefits under Iowa Code section 97B.49. The subrule is intended to implement current practices and is not intended to create a new calculation method.

8. Subrule 21.16(2). These amendments relate to the benefits rights of members who receive service credit under the Uniformed Services Employment and Reemployment Rights Act of 1994 (38 U.S.C. Sections 4301 to 4333). The first new paragraph is a plan document requirement. The remaining new paragraphs are required to ensure that the department is in compliance with the IRS' requirements operationally. The new rules permit members to submit make-up contributions and ensure that the period of military service is taken into account in determining members' three-year average covered wages.

9. Subrule 21.19(5). The reemployment subrule is amended by adding provisions for signed installment repayment agreements. Provisions are also added permitting a member to request a midyear suspension of payments to avoid placing the member into a higher tax bracket for amounts which must be repaid and to avoid the need for substantial repayments of amounts received.

10. Subrule 21.24(3). The refund buy-back subrule is rewritten to clarify that effective July 1, 1996, active nonvested members may not buy back refunds. The paragraphs have been reordered so that the current provisions appear at the beginning of the subrule rather than at the end.

These amendments shall become effective on December 24, 1997, at which time the Adopted and Filed Emergency amendments are hereby rescinded.

These amendments are intended to implement Iowa Code chapter 97B.

The following amendments are adopted.

ITEM 1. Amend subparagraph 21.5(1)"a"(35) as follows:

(35) "Adjunct instructors" employed by a community college or university are excluded from coverage. Adjunct instructors are persons employed by a community college or university without a continuing contract and whose teaching load does not exceed one-half time for two full semesters or three full quarters for the calendar year. The determination of whether a teaching load exceeds one-half time shall be based on the number of credit hours or noncredit contact hours that the community college or university considers to be a full-time teaching load for a regular full semester or quarter, as the case may be. In determining whether an adjunct instructor is a covered employee, no credit shall be granted for teaching periods of shorter duration than a regular semester or regular quarter (such as summer semesters), regardless of the number of credit or contact hours assigned to that period. If there is no formal severance, An an adjunct instructor who becomes a covered employee will remain a covered employee until that person completes four consecutive calendar quarters in which no services are performed for that covered employer after the last covered calendar quarter. Notwithstanding the foregoing sentence, no service credit will be granted to any adjunct instructor who has become a covered employee under this rule for any calendar quarter in which no covered wages are reported unless the adjunct instructor is on an approved leave of absence.

ITEM 2. Amend subrule 21.5(7) as follows:

21.5(7) Public employees who are active members in another retirement system supported in whole or in part by public funds are prohibited from being active members ofIPERS. If an employee is actively participating in another retirement system, the employee cannot be actively contributing to IPERS, even if employed in two positions by two separate employers. Effective July 1, 1996, an employee may actively participate in IPERS and another retirement system supported by public funds if the person does not receive credit under both IPERS and such other retirement system for any position held.

ITEM 3. Amend subrule 21.6(9), paragraphs "b," "c," and "e," as follows:

b. Sheriffs, deputy sheriffs, and airport firefighters, effective July 1, 1996 1997.

(1) Member's rate--6.76 5.91%.

(2) Employer's rate--10.14 8.87%.

c. Members employed in a protection occupation, effective July 1, 1996 1997.

(1) Member's rate--5.95 5.64%.

(2) Employer's rate--8.92 8.45%.

e. Prior special rates are as follows:

(1) Effective July 1, 1992, through June 30, 1993:

1. Sheriffs and deputy sheriffs--member's rate-- 6.90%; employer's rate--10.34%.

2. Protection occupation--member's rate--5.88%; employer's rate--8.83%.

(2) Effective July 1, 1993, through June 30, 1994:

1. Sheriffs and deputy sheriffs--member's rate-- 6.92%; employer's rate--10.39%.

2. Protection occupation--member's rate--5.94%; employer's rate--8.91%.

(3) Effective July 1, 1994, through June 30, 1995:

1. Sheriffs, deputy sheriffs, and airport firefighters --member's rate--7.05%; employer's rate--10.58%.

2. Protection occupation--member's rate--6.11%; employer's rate--9.17%.

(4) Effective July 1, 1995, through June 30, 1996:

1. Sheriffs, deputy sheriffs, and airport firefighters --member's rate--6.85%; employer's rate--10.27%.

2. Protection occupation--member's rate--6.01%; employer's rate--9.02%.

(5) Effective July 1, 1996, through June 30, 1997:

1. Sheriffs, deputy sheriffs, and airport firefighters --member's rate--6.76%; employer's rate--10.14%.

2. Protection occupation--member's rate--5.95%; employer's rate--8.92%.

ITEM 4. Amend subrule 21.11(6) as follows:

21.11(6) A member retiring on or after the early retirement or normal retirement date shall submit a written notice to IPERS setting forth the retirement date, provided the date is after the member's last day of service and not before the first day of the sixth calendar month preceding the month in which the notice is filed.

Notwithstanding the foregoing, IPERS shall commence payment of a member's retirement benefit under Iowa Code section 97B.49 (option 2) no later than the "required beginning date" specified under Internal Revenue Code Section 401(a)(9), even if the member has not submitted the appropriate notice. If the lump sum actuarial equivalent of option 2 under Iowa Code section 97B.48(1) could have been elected by the member, payments shall be made in said lump sum rather than as a monthly allowance. The "required beginning date" is defined as the later of: (1) April 1 of the year following the year that the member attains age 701/2, or (2) April 1 of the year following the year that the member actually terminates all covered and noncovered employment with employers covered under Iowa Code chapter 97B.

ITEM 5. Amend subparagraph 21.13(9)"c""2" as follows:

2. The early retirement adjustment factor is determined as follows:

There is no early retirement adjustment if the member's age at first month of entitlement equals or exceeds 65, or if the member's age at first month of entitlement is at least 62 and the member had 30 or more years of service.

The early retirement adjustment for members having 30 years of service whose first month of entitlement occurred before the member attained age 62 is .25 percent per month for each month the first month of entitlement precedes the member's sixty-second birthday.

The early retirement adjustment for members having less than 30 years of service whose first month of entitlement occurred before the member attained age 65 is .25 percent per month for each month the first month of entitlement precedes the member's sixty-fifth birthday.

IPERS shall calculate the early retirement adjustment factor to be used in paragraph "d" below as follows: 100% - (minus) early retirement adjustment percentage = early retirement adjustment factor.

The early retirement adjustment shall not be applied to situations in which the member's retirement was due to a disability that qualifies under Iowa Code section 97B.50.

ITEM 6. Amend subrule 21.13(10) as follows:

21.13(10) Hybrid formula for members with regular and special service credit. Hybrid formula for members with more than one type of service credit. Effective July 1, 1996, members having both regular and special service credit (as defined in Iowa Code sections 97B.41(16) and (21)) may elect, in lieu of the benefits otherwise provided under this rule, to have their benefits calculated as described in Iowa Code section 97B.49(17). Increases in the percentage multiplier shall be determined as provided under Iowa Code section 97B.49(17), and only years of service in excess of 30 will apply toward said increase. Members shall not receive credit for special service under this subrule unless the applicable employer and employee contributions for periods of special service have been made.

a. Eligibility. Effective July 1, 1996, members having both regular and special service credit (as defined in Iowa Code sections 97B.41(16) and 97B.41(21)) shall receive the greater of the benefit amount calculated under this subrule, or the benefit amount calculated under the applicable nonhybrid benefit formula.

(1) Members who have a combined total of 16 quarters of service may utilize the hybrid formula.

(2) Members who have both types of special service under Iowa Code sections 97B.49(16)"a" and "b," but do not have any regular service, may utilize the hybrid formula.

(3) The following classes of members are not eligible for the hybrid formula:

1. Members who have only regular service credit.

2. Members who have 22 years of sheriff/deputy sheriff/airport firefighter service credit (as defined under Iowa Code section 97B.49(16)"b").

3. Members who have 25 years of protection occupation service credit (as defined in Iowa Code section 97B.49(16)"d").

4. Members who have 30 years of regular service.

5. Members with less than 16 total quarters of service.

b. Assumptions. IPERS shall utilize the following assumptions in calculating benefits under this subrule.

(1) The member's three-year average covered wage shall be determined in the same manner as it is determined for the nonhybrid formula.

(2) Increases in the benefit formula under this subrule shall be determined as provided under Iowa Code section 97B.49(17)"c"(2). The percentage multiplier shall only be increased for total years of service over 30.

(3) Years of service shall be utilized as follows:

1. Quarters which have two or more occupation class codes shall be credited as the class that has the highest reported wage for said quarter. A member shall not receive more than one quarter of credit for any calendar quarter, even though more than one type of service credit is recorded for that quarter.

2. Quarters shall not be treated as special service quarters unless the applicable employer and employee contributions have been made.

c. Years of service fraction not to exceed one.

(1) In no event shall a member's years of service fraction under the hybrid formula exceed, in the aggregate, one.

(2) If the years of service fraction does, in the aggregate, exceed one, the member's quarters of service credit shall be reduced until the member's years of service fraction equals, in the aggregate, one.

(3) Service credit shall first be subtracted from the member's regular service credit and, if necessary, shall next be subtracted from the member's protection occupation service, and sheriff/deputy sheriff/airport firefighter service credit, in that order.

d. Age reduction. The portion of the member's benefit calculated under this subrule that is based on the member's regular service shall be subject to a reduction for early retirement in the same manner as is provided for regular service retirements.

e. Calculations. A member's benefit under the hybrid formula shall be the sum of the following:

(1) The applicable percentage multiplier divided by 22 times the years of sheriff/deputy sheriff/airport firefighter service credit (if any) times the member's high three-year average covered wage, plus

(2) The applicable percentage multiplier divided by 25 times the years of protection occupation class service credit (if any) times the member's high three-year average covered wage, plus

(3) The applicable percentage multiplier divided by 30 times the years of regular service credit (if any) times the member's high three-year average covered wage minus the applicable age reduction (if any).

If the sum of the percentages obtained by dividing the applicable percentage multiplier by 22, 25, and 30 exceeds the applicable percentage multiplier for that member, the percentage obtained above for each class of service shall be subject to reduction so that the total shall not exceed the member's applicable percentage multiplier in the order specified in paragraph "c," subparagraph (3), of this subrule.

ITEM 7. Amend rule 581--21.13 by adopting a new subrule 21.13(11) as follows:

21.13(11) Money purchase benefits.

a. For each vested member retiring with less than four complete years of service, a monthly annuity shall be determined by applying the total reserve as of the effective retirement date (plus any retirement dividends standing to the member's credit on December 31, 1966) to the annuity tables in use by the system according to the member's age (or member's and contingent annuitant's ages, if applicable). If the member's retirement occurs before January 1, 1995, IPERS' revised 6.5 percent tables shall be used. If the member's retirement occurs after December 31, 1994, IPERS' 6.75 percent tables shall be used.

b. For each vested member for whom the present value of future benefits under option 2 is less than the member reserve as of the effective retirement date, a monthly annuity shall be determined by applying the member reserve to the annuity tables in use by the system according to the member's age (or member's and contingent annuitant's ages, if applicable). If the member's retirement occurs before January 1, 1995, IPERS' revised 6.5 percent tables shall be used. If the member's retirement occurs after December 31, 1994, IPERS' 6.75 percent tables shall be used.

c. For calculations under paragraph "a," the term "total reserve" means the total of the member's investment and the employer's investment as of the effective retirement date, plus any retirement dividends standing to the member's credit as of December 31, 1966. For calculations under paragraph "b," the term "member reserve" means the member's total investment, excluding all other amounts standing to the member's credit.

d. For calculations under paragraph "a," options 2, 3, 4, and 5 shall be calculated by dividing the member's total reserve by the applicable option 2, 3, 4, and 5 annuity factor taken from the department's tables to determine the monthly amount. For calculations under paragraph "b," options 2, 3, 4, and 5 shall be calculated by dividing the member reserve by the applicable option 2, 3, 4, and 5 annuity factor taken from the department's tables to determine the monthly amount.

e. For option 1, the cost per $1,000 of death benefit shall be determined according to the department's tables. That cost shall be subtracted from the option 3 monthly amount to determine the option 1 monthly benefit amount. The option 1 death benefit amount shall be reduced as necessary so that the option 1 monthly benefit amount is not less than one-half of the option 2 monthly benefit amount.

f. If the member has prior service (service prior to July 4, 1953), the option 2 benefit amount calculated under both paragraphs "a" and "b" shall be calculated by determining the amount of the member's option 2 benefit based on the member's prior service and the applicable plan formula, plus the amount of the member's option 2 benefit based on the member's membership service as determined under this subrule. The option 2 benefit amount based on prior service shall be adjusted for early retirement.

ITEM 8. Amend subrule 21.16(2) as follows:

21.16(2) Reentry into public employment by an employee on military leave can be achieved if the individual accepts employment with a covered employer. Reemployment may begin anytime within 12 months of the individual's discharge from military service or, if longer, within the period provided under the Uniformed Services Employment and Reemployment Rights Act of 1994 (38 U.S.C. Sections 4301 to 4333). Upon reemployment the member shall receive credit for all service to which the member is entitled pursuant to the Uniformed Services Employment and Reemployment Rights Act of 1994 (38 U.S.C. Sections 4301 to 4333).

Notwithstanding any provision of Iowa Code chapter 97B or these rules to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Internal Revenue Code Section 414(u).

For reemployments initiated on or after December 12, 1994, a member shall be treated as receiving compensation for each month during the member's period of military service equal to the member's average monthly compensation during the 12-month period immediately preceding the period of military service or, if shorter, the member's average monthly compensation for the period immediately preceding the period of military service. The member's deemed compensation during the period of military service shall be taken into consideration in determining a member's make-up contributions, if any, and the member's high three-year average covered wage.

For reemployments initiated on or after December 12, 1994, make-up contributions shall be permitted with respect to employee contributions that would have been made during the period of military service if the member had actually been in covered employment during the period earning the deemed compensation provided for under this subrule. Make-up contributions shall be permitted during the five-year period that begins on the date of reemployment or, if less, a period equal to three times the period of military service.

The member shall request the foregoing make-up contributions (except contributions for periods prior to January 1, 1995, which shall be made as posttax contributions) on forms to be filed with the employer, which shall forward a copy to the system. Make-up contributions shall be made as pretax contributions under Internal Revenue Code Section 414(h)(2). Employers must comply with a member's request to begin make-up contributions during a period not exceeding that described in the preceding paragraph and shall forward said amounts to the system in the same manner as provided for pick-up contributions under Iowa Code section 97B.11A. An election to make up employee contributions under this rule shall be irrevocable.

ITEM 9. Amend subrule 21.19(5) as follows:

21.19(5) Beginning on or after July 1, 1996, the retirement allowance of a member subject to reduction pursuant to subrule 21.19(1) shall be reduced as follows:

a. A member's monthly retirement allowance in the next following calendar year shall be reduced by the excess amounts earned in the preceding year divided by the number of months remaining in the following calendar year after the excess amount has been determined. A member may elect to make a lump sum repayment of the overpayments received in lieu of having the member's monthly benefit reduced. Elections to make installment payments must be accompanied by a repayment agreement signed by the member and IPERS. If the monthly amount to be deducted exceeds a member's monthly retirement allowance, the member's monthly allowance shall be withheld in its entirety until the overpayment is recovered. If a member dies and the full amount of overpayments determined under this subrule has not been repaid, the remaining amounts shall be deducted from the payments to be made, if any, to the member's designated beneficiary or contingent annuitant. If the member has selected an option under which there are no remaining amounts to be paid, or the remaining amounts are insufficient, the unrecovered amounts shall be a charge on the member's estate.

b. Employers shall be required to complete IPERS wage reporting forms for reemployed individuals which shall reflect the prior year's wage payments on a month-to-month basis. These reports shall be used by IPERS to determine the amount which must be recovered to offset overpayments in the prior calendar year due to reemployment wages.

c. A member may elect in writing to have the member's monthly retirement allowance suspended in the month in which the member's remuneration exceeds the amount of remuneration permitted under this rule in lieu of receiving a reduced retirement allowance under paragraph "a" of this subrule. If the member's retirement allowance is not suspended timely, the overpayment will be recovered pursuant to paragraph "a" of this subrule. The member's retirement allowance shall remain suspended until the earlier of January of the following calendar year or the member's termination of covered employment. The member's election shall remain binding until revoked in writing.

ITEM 10. Amend subrule 21.24(3) as follows:

21.24(3) IPERS buy-back. Effective January 1, 1991, an active, vested or retired member who was a member of the system at any time on or after July 4, 1953, and who received a refund of the member's contributions for that period of membership service, may apply in writing to IPERS to buy back the refund and the quarters of service which it represents.

The member is required to make membership contributions equal to the accumulated contributions received by the member for the period of service being purchased plus accumulated interest and interest dividends. Effective July 1, 1996, buy-backs may be made in increments of one or more calendar quarters. Prior to July 1, 1996, the member was required to repurchase the entire period of service and repay the total amount received.

Prior to January 1, 1991, in order for a member to buy back previously refunded IPERS credit, the member had to meet the following qualifications:

(1) The refund of contributions had to represent a period of service between July 1, 1953, and June 30, 1973;

(2) The member could not have been vested at the time of the refund; and

(3) The member had to have at least 15 or more years of service, a figure which could include the amount of refunded time the member wished to buy back.

(4) Effective July 1, 1996, a nonvested member cannot buy back previously refunded IPERS credit.

21.24(3) IPERS buy-back. Effective July 1, 1996, only vested or retired members may buy back previously refunded IPERS credit. The member is required to make membership contributions equal to the accumulated contributions received by the member for the period of service being purchased plus accumulated interest and interest dividends.

Effective July 1, 1996, buy-backs may be made in increments of one or more calendar quarters. Prior to July 1, 1996, the member was required to repurchase the entire period of service and repay the total amount received plus accumulated interest and interest dividends.

For periods beginning January 1, 1991, and ending June 30, 1996, an active, vested, or retired member who was a member of the system at any time on or after July 4, 1953, and who received a refund of the member's contributions for that period of membership service, could apply in writing toIPERS to buy back the refund and the quarters of service which it represents.

Prior to January 1, 1991, in order for a member to buy back previously refunded IPERS credit, the member had to meet the following qualifications:

(1) The refund of contributions had to represent a period of service between July 1, 1953, and June 30, 1973;

(2) The member could not have been vested at the time of the refund; and

(3) The member had to have at least 15 or more years of service, a figure which could include the amount of refunded time the member wished to buy back.

[Filed 10/31/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7661A

PUBLIC SAFETY DEPARTMENT[661]

Adopted and Filed

Pursuant to the authority of Iowa Code section 692A.10, the Iowa Department of Public Safety hereby amends Chapter 8, "Criminal Justice Information," Iowa Administrative Code.

These rules establish permanent procedures and prescribe forms to be used with the Iowa Sex Offender Registry. The Registry was established by the adoption of Iowa Code chapter 692A by the Iowa General Assembly in 1995. The Registry has operated under emergency rules since its inception on July 1, 1995. Initial operation under emergency rules enabled the Registry to commence operation on schedule and also allowed for a period of operation and experience to inform the process of developing permanent rules for the Registry.

The Registry is intended to facilitate tracking of sex offenders by criminal and juvenile justice agencies and to accomplish two related purposes: (1) enhance the capability of criminal and juvenile justice agencies to obtain information about convicted sex offenders useful in investigation, apprehension, and prosecution of crimes, especially sex offenses, and (2) enable members of the public to obtain information about convicted sex offenders which may assist them in protecting themselves.

The most significant difference between the emergency rules under which the Registry has operated since it was established and the rules adopted here are the provisions for affirmative public notification. The General Assembly charged the Department with responsibility for developing procedures for appropriate release of information necessary to protect the public. In the period since adoption of Iowa's sex offender registry legislation in 1995, several developments have occurred. Several state and federal courts have addressed the constitutionality of notification provisions contained in sex offender registry statutes and rules. Congress has enacted federal sex offender registration and notification statutes. The United States Department of Justice has issued regulatory guidance regarding state and local conformity with federal sex offender registry and notification statutes. The Department has acquired experience with operation of the Iowa Registry. The notification provisions contained in the Department's rules reflect its understanding of the current state of the law in such matters, and its best judgment regarding the maximum extent to which notification may be extended in order to advance the public's interest in protection while observing the due process rights and privacy interests of convicted sex offenders. In general, the rules predicate the decision on whether notification is appropriate in any particular case on an evaluation of the risk factors associated with the particular offender involved. If notification is deemed warranted based on that evaluation, a further evaluation is provided to determine the extent of the notification appropriate to provide notification to those persons who reasonably may be expected to encounter the convicted sex offender. An array of notification methods is provided for use as the facts of each offender's situation warrant.

Notice of Intended Action was published in the Iowa Administrative Bulletin on July 2, 1997, as ARC 7350A. A public hearing on these proposed amendments was held on July 23, 1997. Numerous comments were received about the proposed rules. Based on these comments, some revisions were made in the proposed rules, and the revisions are incorporated in these final, adopted rules.

The Department received considerable public comment regarding the proposed rules. In many instances, the comments received were critical of a portion of the proposed rules based squarely on statutory provisions. For example, comments recommended eliminating the ten-year cap on the registration period; making the entire registry a public rec-ord; revising the offenses requiring registration to encompass only repetitive, compulsive behavior; adding breaking and entering as an offense requiring registration; and placing the risk assessment function with the Department of Corrections facility at Oakdale. Because the final rules must conform with legislative intent as expressed in the registry statute, the Department is not able to accommodate these concerns. Persons presenting these viewpoints are, of course, free to apprise the General Assembly directly regarding these concerns.

Similarly, some comments advanced policy concerns relevant to legislative adoption of the registry statute, but of marginal value in drafting rules intended to implement legislative intent as demonstrated in the statute as adopted. For example, concerns were expressed that criminal investigators will rely too much on the registry when investigating sex crimes; that notification will encourage a lynch-mob attitude among the public; and that no proof exists that neighborhood notification will keep children safe. The Department acknowledges that differing policy positions exist based on perceived or projected effects of the Registry statute. These positions were eligible for consideration by the General Assembly during the legislative process, but are largely vitiated for purposes of this rule making by adoption of a statute that in fact directs creation of the registry and a public notification process.

Some comments received simply were not germane to the issues involved in this rule-making process. For example, criticism received by the Department regarding programs of the other state departments was simply not addressed.

The specific comments received and the Department's responses are summarized as follows, organized by the proposed rule or subrule at issue.

Proposed subrule 8.302(4).

Comment: The list of crimes requiring registration casts an impermissibly wide net. Specifically, all violations of Iowa Code section 709A.6 are included, regardless of sexual motivation or content of the offending behavior.

Response: The Department believes that the list of offenses in subrule 8.302(4) as proposed generally complies with the language and intent of the statute. The Department has consulted with the Attorney General regarding covered offenses as statutorily required. The Department agrees, however, that not all offenses contemplated by Iowa Code section 709A.6 warrant inclusion in the Registry. Iowa Code section 709A.6 renders criminal the act of recruiting or using a minor to commit any indictable offense. The final subrule has been amended to make clear that Iowa Code section 709A.6 convictions warrant registration only if the offense involved use of a juvenile to commit an offense that would itself require registration.

Comment: The list of crimes for which convicted persons are required to register should include "breaking and entering," because this offense in reality is a sexually motivated crime.

Response: "Breaking and entering" is not included in the offenses specified by the Iowa General Assembly for which a conviction requires registration. Nor, in the Department's judgment, does "breaking and entering" fall within the limited discretion afforded the Department to define certain classes of offenses requiring registration.

Proposed subrule 8.303(2).

Comment: The phrase "on behalf of" should be omitted. Every offender should be required to register personally.

Response: The Department agrees that registration is a personal responsibility of the offender. However, the term "on behalf of" is included to recognize and facilitate efforts of staff at correctional facilities and jails to ensure that offenders required to register do so prior to or at the time of release.

Proposed subrule 8.303(3).

Comment: The following sentence should be removed: "Form DCI-146 shall be returned by the registrant to the Division of Criminal Investigation within ten days of receipt," and the following sentences should be inserted in its place: "Form DCI-146 shall be presented to the designated registry officer in the local county sheriff's office within ten days of receipt. The registry officer shall conduct an interview and note his/her impressions of the registrant and include this information with Form DCI-146 and forward both to the registry within two weeks of the interview." This comment also suggested that submission of the quarterly verification form for sexually violent predators be replaced with a face-to-face interview in all cases.

Comment: A further comment was received regarding this same subrule, suggesting that the subrule spell out procedures for cooperation among state agencies, especially those with whom a registrant has electronic contact, in tracking the movements of registrants.

Response: The statute precludes implementing the first comment. Iowa Code section 692A.4 clearly establishes that annual verification of registrants' addresses, and quarterly verification of addresses for sexually violent predators, shall be performed by mail. The statute further specifies that responsibility for performing verification procedures rests with the Department of Public Safety. With respect to the second comment, state and local agencies routinely and customarily cooperate in the exchange of information regarding the subjects of legitimate criminal investigation. The Department anticipates the same level of coordination and cooperation will exist with respect to registered sex offenders as a matter of course.

Proposed subrule 8.303(4).

Comment: The reference to a time limit on the registration requirement should be removed, in that there should be no such time limit.

Response: The Department does not possess discretion to eliminate the ten-year registration cap. Iowa Code section 692A.2 establishes the ten-year time period during which sex offenders are required to register.

Proposed subrule 8.303(8).

Comment: Proposed subrule 8.303(8) regarding confidentiality should be eliminated. The records of the Iowa Sex Offender Registry should not be confidential. This also includes references to confidentiality in proposed rule 661--8.304(692A).

Response: The Department does not possess discretion to make the registry public. Iowa Code section 692A.13 establishes that information contained in the Iowa Sex Offender Registry is confidential, with exceptions provided in the statute.

Proposed subrule 8.304(1).

Comment: The initial classification of all registrants as "low risk" is patently absurd.

Response: The classification of all registrants as "low risk" until a risk assessment has been completed will facilitate an orderly process. The Department believes that affirmative public notification will require a finding that the registrant is "at risk." Thus, such a finding will need to precede affirmative public notification. The effect of initially classifying all registrants as "low risk" is to require completion of a risk assessment and a finding that the registrant is "at risk" prior to commencement of affirmative public notification.

Comment: Local agencies should be involved in the risk assessment process.

Response: The Department agrees that local agencies should be consulted during the risk assessment process, and also regarding appropriate methods of affirmative public notification. Language has been included in the final subrule regarding both matters.

Comment: Educators, including employees of area education agencies, and mental health professionals who are knowledgeable about a registrant or a registrant's victims should be included in the risk assessment process. Educators should be notified of registrants whom they are likely to encounter and those victims or potential victims they are likely to encounter.

Response: Educators and mental health professionals may be consulted in the risk assessment process if they have relevant information regarding a registrant that they are able to share with the Department. Schools, mental health facilities, educators, and mental health practitioners would be among those who would be likely to receive information about specific registrants through the affirmative public notification process, when appropriate for specific registrants.

Comment: "Persons likely to encounter the registrant" is a vague concept. Assistance of local agencies should be used to identify agencies and organizations that should be notified about the presence of a registrant who has been assessed as "at risk."

Response: The Department anticipates that cooperation between the Department and local law enforcement and criminal and juvenile justice agencies in the affirmative public notification process will address the issue of identifying appropriate avenues of notification.

Comment: The affirmative public notification procedures contained in proposed subrule 8.304(1), which provide for notification to an array of individuals and organizations based upon a subjective determination that the registrant is "at risk," violates the ex-offender's right to privacy. Assessment procedures may also place registrants in the position of making self-incriminating statements in violation of the Fifth Amendment to the United States Constitution. Affirmative public notification will place the registrant at risk of vigilante activity.

Comment: Affirmative public notification will undercut a registrant's ability to obtain housing or employment, thus isolating the registrant and increasing the likelihood of further offenses by the registrant.

Response: With regard to self-incrimination, Iowa Code chapter 692A is not punitive in nature. The risk assessment is not part of a criminal proceeding. It is an administrative process incident to operation of the Iowa Sex Offender Registry. The risk assessment procedure is intended to limit affirmative public notification to registrants assessed as "at risk." Further, the notification procedure is tailored based on the level of risk presented by the offender, and the persons likely to encounter the particular offender. This limitation is intended to protect the privacy rights of registrants who have not been assessed as "at risk." All materials provided in the affirmative public notification process will include a statement indicating that vigilante action taken against a registrant is criminal activity subject to prosecution under the criminal laws of the state of Iowa.

Comment: Most of the ten risk assessment factors listed in subrule 8.304(1) have little bearing on the risk presented by a registrant. The ultimate factor bearing on the risk presented by the registrant is whether previous offenses were "repetitive and compulsive." Assessment of repetitive and compulsive behavior should be accomplished prior to sentencing and the registrant whose offending behavior is found to have been repetitive and compulsive should be required to register for life, initially as an individual presenting a "high risk" to the community.

Comment: The state of Iowa lacks any ascertainable standards to reasonably predict which offenders will reoffend.

Response: The Department believes that the risk assessment factors designated in the rules present a reasonable framework for assessing the risk to the community presented by a registrant. Many of the offenders currently required to register were convicted prior to the effective date of the statute requiring registration, and the current statute does not require the sort of assessment contemplated prior to sentencing.

Comment: Permissive language ("may") in proposed subrule 8.304(1), paragraph "d," should be replaced by mandatory language ("shall").

Response: Paragraph 8.304(1)"d" describes the procedures to be used by the Department to perform affirmative public notification. Within each risk category, a number of potential notification methods are specified, any or all of which may be selected by the Department as appropriate in a given instance. The subrule provides that the means, method and scope of notification will be determined in each case by the level of risk presented by the registrant. The Department believes that tailoring of the notification in each instance is required in order to appropriately balance the public interest in notice and the offender's privacy interest. In addition, the Department believes that orderly operation of notification procedures will be facilitated if flexibility is maintained in the application of the procedures to fit local circumstances.

Comment: If the registrant did not commit the offense or offenses which triggered the registration requirement in the jurisdiction in which the registrant is required to register, local criminal or juvenile justice agencies may not know the particulars of the crime or crimes and therefore may not know whether the registrant is one about whom they would wish to make affirmative public notification. What would trigger authorization for affirmative public notification by the Department of Public Safety in the absence of a request from a local agency? Will criteria for these cases be developed?

Response: The rules provide the Department authority to authorize affirmative public notification in the absence of a request from a local agency. This recognizes the possibility that local agencies will be unfamiliar with registrants whose offenses were committed in jurisdictions other than the ones in which they are required to register. The Department will evaluate affirmative public notification for such registrants using the same criteria used for other offenders.

Comment: Victim impact statements should be included in the sources of information consulted in preparing risk assessments.

Response: The final subrule has been amended to include language recognizing victim impact statements, as well as court orders and pre-sentence investigation reports, as materials which may be consulted in preparing risk assessments.

Comment: Offenses which involve victimization of a family member should not necessarily be viewed as presenting a lower risk to the community than do offenses involving victimization of persons outside the family.

Response: The Department agrees that patterns of offending should be viewed in the context of assessing particular risks presented in each case. The rules as proposed contained no bias against intrafamily offenses, and therefore no amendment was deemed warranted.

Comment: Risk assessments should be conducted by multidisciplinary teams, including victim advocates.

Response: Iowa Code section 692A.13 assigns sole responsibility for authorizing notification to the public about a registrant to the Iowa Department of Public Safety. The risk assessment is a portion of the notification responsibility entrusted to the Department. The Department contemplates consultation with a wide variety of agencies, organizations, and individuals in completing the risk assessment process for each registrant, but cannot delegate the responsibility assigned to it.

Comment: Will a separate risk assessment process be established for juveniles and will affirmative public notification procedures differ for juveniles and adults?

Response: No separate risk assessment process or affirmative public notification procedures are planned for juveniles. The risk assessment process relies upon the totality of relevant factors, and the age of the registrant is likely to enter into the process, as it likely will in identifying appropriate affirmative public notification procedures.

Comment: Listings of "at risk" registrants may be misleading, since only registrants for whom a risk assessment has been completed will be included.

Response: Lists of registrants assessed as "at risk" within a county will contain only the names of registrants for whom the risk assessment process has been completed. Any information released from the Registry can reflect only what information is available at the time.

Comment: What process will be used to determine that a registrant presents an "immediate threat to the safety of the public" and thus is subject to affirmative public notification prior to exhausting the right to appeal a decision to engage in affirmative public notification with regard to the registrant?

Response: Identification of registrants who are deemed to be "at risk" and as presenting an "immediate threat to the safety of the public" will be undertaken on a case-by-case basis by the Director of the Division of Criminal Investigation based upon information provided by and recommendations received from staff of the Iowa Sex Offender Registry, other personnel of the Department of Public Safety, or anyone else with knowledge of the registrant.

Comment: Any victims of a registrant should be notified of an appeal hearing regarding a decision to authorize affirmative public notification regarding the registrant, as they are notified about other proceedings related to the crime.

Response: Hearings of appeals regarding decisions to authorize affirmative public notification will be held in camera, in order to comply with the confidentiality requirements for the Iowa Sex Offender Registry established in Iowa Code section 692A.13. The Department does not plan to notify previous victims of the registrant of the hearing or allow them to attend the hearing, as there is no exception to the confidentiality requirements covering victims. Further, the appeal hearing is not a criminal proceeding.

Proposed subrule 8.305(2).

Comment: Proposed subrule 8.305(2) should be removed; expungement of a record simply because the registration period has expired presents a danger to the public.

Response: The Department believes that once the period of time during which an offender is required to register has expired, the offender is no longer legally a registrant and no information could be released about the former registrant. Expunging this information will contribute to the orderly administration of the Registry and will reduce the likelihood of information being released mistakenly about individuals who are no longer registrants.

While every effort was made in preparing the preceding summary to accurately reflect the comments received, it was necessary to paraphrase many of the comments and to combine some that were closely related to one another. Some comments that did not pertain directly to these rules were omitted from this summary. In addition to changes discussed in reference to comments received regarding the proposed rules, additional language was added clarifying the use of the forms to be utilized in the process of affirmative public notification. Also, the term "risk of reoffending" used in the proposed rules was generally replaced with the term "risk presented to the community" to reflect the fact that risk assessment goes beyond assessing the risk of an offender recommitting the same offense as that which required registration.

These rules are intended to implement Iowa Code chapter 692A.

These rules will become effective January 1, 1998.

The following amendments are adopted.

Rescind rules 661--8.301(76GA,SF93) to 661-- 8.304(76GA,SF93) and insert in lieu thereof the following new rules:

661--8.301(692A) Sex offender registry established. The Iowa sex offender registry, as authorized by Iowa Code chapter 692A, is hereby established in the division of criminal investigation.

661--8.302(692A) Definitions. The following definitions apply to rules 661--8.301(692A) to 661--8.399.

8.302(1) "Affirmative public notification" means any form of communication or release undertaken by the department of public safety or other Iowa criminal or juvenile justice agency regarding the identity or characteristics of an individual registrant or registrants. "Affirmative public notification" does not mean release of information to a criminal or juvenile justice agency or agencies nor does it mean release of information about an individual registrant in response to an inquiry about that individual based upon the name and address of the individual, as provided in Iowa Code section 692A.13, subsection 6.

8.302(2) "Convicted" or "conviction" means a guilty verdict in a criminal case or an adjudication of delinquency in juvenile court for an offense specified in these rules or in Iowa Code chapter 692A as requiring registration with the Iowa sex offender registry. For purposes of these rules, "convicted" or "conviction" includes deferred judgments, deferred sentences, and acquittals by reason of insanity, and adjudications of delinquency of persons whose juvenile court records have been sealed under Iowa Code section 232.150.

8.302(3) "Criminal or juvenile justice agency" means an agency or department of any level of government or an entity wholly owned, financed, or controlled by one or more such agencies, or departments, which performs as its principal function the apprehension, prosecution, adjudication, incarceration, or rehabilitation of criminal or juvenile offenders.

8.302(4) "Criminal offense against a minor" means violations of any of the following sections of the Code of Iowa or equivalent laws of the United States or of any other jurisdiction, if committed against a minor:

a. Enticing a person into a brothel or detaining a person in a brothel by force, intimidation, or false pretenses in violation of Iowa Code section 709.7.

b. Kidnapping, except kidnapping in the third degree by a parent: violations of Iowa Code section 710.2, 710.3, or 710.4; violation of section 706.1 (Iowa Code, 1975), 706.2 (Iowa Code, 1975), or 706.3 (Iowa Code, 1975).

c. False imprisonment of a minor, except where committed by parent of the minor: violations of Iowa Code section 710.7, except where the offender is a parent of the victim.

d. Any indictable offense involving sexual conduct directed toward a minor:

(1) Stalking in violation of Iowa Code section 708.11, subsection 3, paragraph "b," subparagraph (3), if the offense is sexually motivated.

(2) Any violation of the following Iowa Code sections, subsections, and paragraphs: 709.3(2), 709.4(2)"b," 709.4(2)"c," 709.8, 709.12, or 709.14.

(3) Any violation of the following Iowa Code sections with a minor victim: 709.2, 709.3, 709.4, 709.9, 709.15, 709.16, or 726.2; violations of section 698.1 (Iowa Code, 1975), 704.1 (Iowa Code, 1975), or 705.2 (Iowa Code, 1975).

e. Solicitation of a minor to engage in an illegal sex act; any violation of Iowa Code section 709A.6 involving an offense which would warrant registration.

f. Enticing away a child in violation of Iowa Code section 710.10.

g. Use of a minor in a sexual performance: any violation of Iowa Code section 728.12(1).

h. Sexual exploitation of a minor in violation of Iowa Code section 728.12, subsections 2 or 3.

i. Solicitation of a minor to practice prostitution: any violation of Iowa Code section 725.3(2).

j. Incest in violation of Iowa Code section 726.2.

k. Dissemination or exhibition of obscene materials to minors:

(1) Any violation of Iowa Code section 728.2 or 728.15.

(2) Any violation of Iowa Code section 728.4 if delivery is to a minor.

l. Admitting minors to premises where obscene material is exhibited: any violation of Iowa Code section 728.3.

m. An attempt to commit sexual abuse of a minor: any violation of Iowa Code section 709.11; also, violations of section 698.4 (Iowa Code, 1975).

8.302(5) "Offender" means a person who is required to register with the Iowa sex offender registry.

8.302(6) "Registrant" means a person who is currently registered with the Iowa sex offender registry.

8.302(7) "Sexually violent offense" means any of the following indictable offenses:

a. Sexual abuse as defined in Iowa Code section 709.1.

b. Assault with intent to commit sexual abuse in violation of Iowa Code section 709.11.

c. Sexual misconduct with offenders in violation of Iowa Code section 709.16.

d. Telephone dissemination of obscene materials in violation of Iowa Code section 728.15.

e. Rental or sale of hard-core pornography in violation of Iowa Code section 728.4.

f. Indecent exposure in violation of Iowa Code section 709.9.

g. Any of the following offenses, if the offense involves sexual abuse or attempted sexual abuse: murder, attempted murder, kidnapping, burglary, or manslaughter.

h. A criminal offense committed in another jurisdiction which would constitute an indictable offense under paragraphs "a" through "c" and "g" of this subrule if committed in this state.

8.302(8) "Sexual exploitation" means sexual exploitation by a counselor or therapist in violation of Iowa Code section 709.15.

661--8.303(692A) Forms and procedures. The following forms and procedures are prescribed for use with the Iowa sex offender registry. Supplies of these forms may be obtained by contacting the Iowa sex offender registry at the division of criminal investigation.

8.303(1) Notification. Form DCI-144, "Notification of Registration Requirement," which notifies offenders of their duty to register with the Iowa sex offender registry shall be provided to persons identified as being required to register. Failure to provide offenders with Form DCI-144 does not relieve offenders of their duty to register with the Iowa sex offender registry.

8.303(2) Registration.

a. Form DCI-145, "Sex Offender Registration," shall be completed by or on behalf of each offender and submitted to the sheriff of the county in which the offender will be residing and to the division of criminal investigation, in order to satisfy the registration requirements of the Iowa sex offender registry.

b. Form DCI-145 shall also be used to report changes of residence and telephone number of registrants. A completed copy of Form DCI-145 shall be submitted by the registrant to the sheriff of the county of residence each time the registrant's place of residence or telephone number changes within ten days of the change of residence or telephone number, whether within or outside the state of Iowa. The original of each completed Form DCI-145 shall be forwarded to the division of criminal investigation by the registering agency within three days of receiving the completed form.

c. Upon initial submission of Form DCI-145, the form shall be accompanied by current photographs and fingerprints of the offender. Current photographs of the registrant shall accompany submission of Form DCI-145 upon each subsequent submission of Form DCI-145 unless the registrant's appearance has not changed significantly in the judgment of the submitting agency.

d. A list of all registrants within a county shall be provided each month by the division of criminal investigation to the county sheriff. Each county sheriff may provide copies of these lists to other law enforcement, criminal justice, and juvenile justice agencies with jurisdiction in the county.

8.303(3) Annual verification. Form DCI-146, "Annual Verification of Address," shall be mailed by the division of criminal investigation to each registrant to the last address known to the registry annually during the month of original registration. Form DCI-146 shall be returned by the registrant to the division of criminal investigation within ten days of receipt. Form DCI-146 shall be mailed to the registrant in an envelope clearly stating that it is to be returned to the division of criminal investigation if the addressee no longer resides at the address indicated and that Iowa law prohibits its being forwarded.

The division of criminal investigation shall provide monthly to the sheriff of each county a list of all registrants whose last-known addresses are within the respective county and to whom annual verification forms have been mailed.

EXCEPTION: Form DCI-146 shall be mailed quarterly by the division of criminal investigation to each registrant who is a sexually violent predator, as defined in Public Law 103-322, to the last address known to the registry and shall be completed and returned to the division of criminal investigation by the registrant within ten days of receipt. The division of criminal investigation shall provide monthly to the sheriff of each county a list of all registrants whose last-known addresses are within the respective county and to whom quarterly verification forms have been mailed.

8.303(4) Application for determination. Form DCI-148, "Application for Determination," shall be completed by a registrant to initiate a request that the division of criminal investigation review whether one or more offenses of which the registrant has been convicted require registration with the Iowa sex offender registry or whether the time period during which the registrant is required to register has expired. A registrant who submits a completed copy of Form DCI-148 for review shall provide with it copies of any sentencing or adjudicatory orders related to each offense for which a determination of whether registration is required is being requested. The completed application (Form DCI-148) shall specify the exact grounds for the application and shall include a statement of any additional facts which the registrant intends to present to the department in support of the application. Failure to submit any of the required orders shall constitute grounds for denial of the application. If the application sets forth an issue of fact which cannot be evaluated based upon the record of convictions, sentencing and adjudicatory orders, and relevant statutory provisions, the commissioner may refer the matter to an administrative law judge or presiding officer for a hearing.

8.303(5) Decision of determination. Form DCI-149, "Decision of Determination," shall be used by the division of criminal investigation to notify a registrant who has submitted a request for determination (Form DCI-148) of the results of that review. A completed Form DCI-149 shall be mailed to any registrant who has filed a completed Form DCI-148 within 90 days of the receipt by the division of criminal investigation of the completed Form DCI-148 and all required supporting documents.

8.303(6) Request for information. Form DCI-150, "Request for Registry Information," shall be used by a member of the public to request information about whether a specific person is registered with the Iowa sex offender registry. A person requesting information about whether a specific individual is registered with the Iowa sex offender registry shall submit a completed copy of Form DCI-150 to a sheriff. A separate form shall be submitted for each person about whom information is being requested.

8.303(7) Confidential background investigation. A government agency conducting a confidential background investigation shall submit a completed Form DCI-151 to the division of criminal investigation to request information regarding the individual about whom the background investigation is being conducted.

8.303(8) Affirmative public notification.

a. Form DCI-152, "Notice of Intent to Make Affirmative Public Notification," shall be used by the division of criminal investigation to notify a registrant that the division intends to engage in affirmative public notification regarding the registrant in accordance with subrule 8.304(1).

b. Form DCI-153 shall be used by the division of criminal investigation to carry out affirmative public notification regarding a particular registrant in accordance with subrule 8.304(1). Additional information including, but not limited to, a photograph of the registrant may be attached to Form DCI-153.

8.303(9) Confidential records. Completed forms filled out pursuant to rules 8.301(692A) through 8.399 are confidential records that may not be released to the public.

EXCEPTION: Completed copies of Form DCI-150 are public records only if public release of a form is authorized by the person completing the form.

661--8.304(692A) Release of information. The purpose of release of information from the Iowa sex offender registry is to afford protection to the public. The procedures specified here are intended to maximize the degree of protection afforded the public from potential risks presented by registrants while ensuring registrants their due process rights.

8.304(1) Affirmative public notification for public protection. A criminal or juvenile justice agency wishing to make affirmative public notification regarding the identity and location of a specific registrant shall make a request for authorization for affirmative public notification to the division of criminal investigation, indicating the name, address, and sex offender registry number of the registrant about whom authorization for community notification is being requested, along with a statement of the reasons for requesting such authorization. The request may be sent to the division of criminal investigation by mail, electronic mail via the Internet to isor@dps.state.ia.us, fax transmission or via the Iowa on-line warrants and articles (IOWA) system. Affirmative public notification may be made only after authorization has been received from the department of public safety. The department of public safety may authorize affirmative public notification regarding a registrant without having received a request for authorization of community notification from another criminal justice agency, when the department has received or is in possession of information suggesting that the registrant presents a risk to the community.

In making a request for authorization for affirmative public notification, a criminal or juvenile justice agency may consider information provided by any person, group, or organization.

a. Risk assessment. The department of public safety shall ensure that an assessment of the risk presented by a registrant is prepared prior to authorizing or engaging in any affirmative community notification regarding that registrant. During the preparation of a risk assessment, the department may solicit information about the registrant being assessed from any agency or individual who may have information relevant to assessing the potential risk presented by the registrant. The department shall consult local law enforcement agencies and the county attorneys with jurisdiction in the areas in which the registrant resides, works, attends school, or is known to frequent and may consult with, utilize the assistance of, or receive information from the Iowa department of corrections, departments of correctional services in each judicial district, the Iowa department of human services, juvenile court officers, the Iowa attorney general, other county attorneys, or local law enforcement agencies, or any other person, group or organization to gather information relevant to risk assessment of a registrant.

b. Risk assessment factors. Determination of the risk presented by a registrant shall take into account available information regarding the following factors. The factors set forth may not have the same importance in each instance and other factors may present themselves in the consideration of a request to authorize affirmative public notification. The factors are not listed in any order of priority.

(1) Conditions of release, such as probation or parole supervision;

(2) Participation in, and response of the registrant to, therapeutic support, such as counseling, therapy, or other medical treatment;

(3) Residential situation, including stability of residence, presence and support of family members, and location in proximity to, or removed from, potential victims;

(4) Physical condition of the registrant;

(5) Criminal history factors indicative of the potential risk presented by the registrant, including but not limited to whether the registrant's conduct was characterized by repetitive and compulsive behavior, whether the registrant served the maximum term or terms, and age(s) of the registrant's victim or victims.

(6) Criminal history factors indicative of the seriousness and frequency of past offenses, such as the relationship between the registrant and the registrant's victims, whether the registrant's past offense or offenses involved the use of a weapon, violence, or infliction of serious bodily injury, and the number, date, and nature of prior offenses.

(7) Whether psychological or psychiatric profiles of the registrant indicate a risk of reoffending.

(8) Recent behavior of the registrant, including but not limited to behavior while confined, under supervision in a community setting, or following service of sentence, and including but not limited to threats against persons or expressions of intent to commit additional crimes.

(9) Compliance with registration requirements of the Iowa sex offender registry or the sex offender registry of other jurisdictions.

(10) Circumstances of previous sex offenses, including characteristics of victims, modus operandi, and geographic location of contact with victims and offending behavior.

Any additional information available to the department, including, but not limited to, court orders, victim impact statements, and pre-sentence investigation reports, may be considered in preparing the assessment, if deemed relevant by the department.

c. Risk categories. The assessment of risk presented to the community by a registrant shall result in placement of the registrant into one of the following two categories: "low risk" or "at risk."

All registrants are by virtue of their presence on the registry classified as low-risk offenders, unless they are classified as offenders at risk on the basis of the factors specified in paragraph "b." For individuals in this category, the risk assessment results in an estimate that there is a low likelihood that the registrant presents a risk to the community.

A registrant shall be classified as at risk if the assessment of risk based on the factors specified in paragraph "b" results in an estimate that the registrant presents more than a low risk to the community. In order to support classification of a registrant in this category, the registrant must have characteristics correlating with more than one factor which support the conclusion that the registrant presents a risk to the community, or strong evidence supporting such a conclusion with regard to a single factor.

d. Affirmative public notification procedures. The means, method, and scope of release of information shall be based upon the determination of level of risk presented by a registrant. The following forms of notification may be utilized for each level of risk assessed.

(1) Low risk. For a registrant classified as presenting a low risk to the community, notification of the registrant's name, current address, criminal history, and a current photograph of the registrant may be provided to any law enforcement agency likely to encounter the registrant. These may include, but are not limited to, any county or municipal agency with jurisdiction over the registrant's place of residence, place of employment or school or any other place to which the registrant is known to travel on a frequent basis.

(2) At risk. For a registrant classified as "at risk," the notification described in subparagraph (1) shall be completed. Also, persons likely to encounter the registrant may be notified through the following means. The department shall consult with the county attorney, sheriff, and local law enforcement agencies with jurisdiction in the registrant's place of residence, employment, school attendance, and other locations that the registrant is known to frequent, regarding appropriate forms of affirmative public notification. Form DCI-153 shall be used to carry out affirmative public notification.

1. Notification of agencies or organizations in the community in which the registrant lives, is employed or attends school, or is known to frequent, where there are potential victims, based on the record before the department.

2. Personal or written notification of neighbors in the vicinity of the residence of the registrant, the registrant's place of employment or school, or other places the registrant is known to frequent.

3. Releases to media outlets which cover the community or communities in which the registrant resides, is employed or attends school, or is known to frequent including but not limited to the registrant's name and photograph.

4. Distribution of leaflets to residences and businesses in the vicinity of the registrant's residence, place of employment or school, or places the registrant is known to frequent.

5. Posting of notices in public locations in the vicinity of the registrant's residence, place of employment or school, or places the registrant is known to frequent.

(3) Responsibility for affirmative public notification. Carrying out affirmative public notification shall be the responsibility of the agency that initially requested authority for affirmative public notification within its jurisdiction. The agency which initially requested authorization for affirmative public notification is authorized to request assistance from other law enforcement agencies with jurisdiction in areas in the vicinity of the registrant's residence, place of employment or school, or other places which the registrant is known to frequent to carry out affirmative public notification as authorized by the department of public safety.

Affirmative public notification is intended to be a process of cooperation between the department of public safety and local law enforcement agencies with jurisdiction in locations where the registrant resides, is employed, attends school, or is known to frequent.

(4) Any county sheriff shall provide a listing of all registrants classified as "at risk" within the county in which the sheriff has jurisdiction to any person who requests such a list.

(5) A registrant who has been classified as "at risk" and whose history of offending includes the use of computer bulletin boards, the Internet, or other electronic means of contact with victims or potential victims may be the subject of a notice containing, but not limited to, the registrant's name and photograph, on the Internet.

e. Findings--prior notice--right to appeal.

(1) In response to a request from any criminal or juvenile justice agency or on its own initiative, the division of criminal investigation may initiate an investigation, in cooperation with local law enforcement agencies where the registrant resides, is employed, attends school, or is known to frequent, of any registrant to determine whether affirmative community notification regarding that registrant is appropriate and shall ensure that the risk assessment of that registrant, as described in this rule, is undertaken. Based upon the risk assessment, the director of the division of criminal investigation shall make an initial finding of the level of risk presented by the registrant, whether affirmative community notification regarding the registrant is appropriate, and what form or forms of affirmative public notification may be permitted regarding the registrant.

(2) If the initial finding regarding a registrant permits affirmative community notification, the division of criminal investigation shall notify, or cause to be notified, the registrant of the initial finding, by providing to the registrant a completed copy of Form DCI-152. Notice shall be given by personal service or by certified mail, return receipt requested, 14 days prior to the commencement of any affirmative public notification, unless it is impracticable to give timely notice. No additional notice is required. Notice is deemed provided if the registrant refuses delivery of certified mail or if certified mail is undeliverable because the registrant has not complied with registry requirements to provide a current address. The notice shall contain the following information:

1. The proposed scope and specific manner and details of public notification;

2. That unless application is made for a hearing on or before the date mentioned in the notice, affirmative public notification may take place at any time thereafter while the person remains a registrant;

3. That the offender may make application for a hearing by filing a written request for a hearing and mailing or serving it on the department at an address prescribed on the notice so it is received on or by the date mentioned in the notice;

4. That if application is made and received by the department by 4:30 p.m. on or by the date mentioned in the notice, there will be no affirmative public notification until and unless the initial determination is affirmed, or is modified, through the hearing process.

(3) A registrant who has received notice that an initial finding has been made which may result in affirmative public notification may appeal the initial finding in writing to the administrative services division of the department of public safety within 14 days of the date on which the notice is sent to the registrant by the division of criminal investigation.

(4) Affirmative public notification shall not proceed until at least 14 days after notice of the initial determination has been mailed or delivered to the registrant.

EXCEPTION: If the director of the division of criminal investigation finds that the registrant presents an immediate threat to the safety of the public, affirmative public notification may proceed at the same time as notice is sent to the registrant. In such a case, the notice shall inform the registrant that affirmative public notification may proceed immediately, based upon the finding that the registrant presents an immediate threat to the safety of the public.

(5) If the department does not receive a written application for a hearing within the time guidelines set forth above, the department may authorize affirmative public notification.

(6) When the department receives an application for a hearing, the department shall refer the matter to a presiding officer pursuant to Iowa Code section 17A.11. The department shall submit all written documents supporting the initial determination to the presiding officer with the application for hearing. The presiding officer shall set a hearing within seven days after receiving the application for hearing from the department and provide notice to the parties along with the documentary evidence received from the department. The presiding officer shall set the hearing as expeditiously as possible in recognition of the public protection interests of Iowa Code chapter 692A.

(7) All documents relating to the hearing shall be confidential prior to, during, and after the hearing. The hearing itself shall be conducted in camera.

(8) Rule 661--10.306(17A), which governs introduction and consideration of evidence, shall apply to proceedings under this rule.

(9) The department shall have the burden of going forward with evidence to support its initial determination. Upon such proof, the offender shall have the burden of persuasion on all remaining issues. The level of proof is by a preponderance of the evidence.

(10) After hearing the evidence and argument of the parties, the presiding officer shall issue a written order affirming, reversing, or modifying the initial determination. The order shall contain concise findings of fact and conclusions of law. A copy of the order shall be promptly mailed to each party. The order itself shall remain confidential, in accordance with Iowa Code section 692A.13.

(11) The registrant or the director of the division of criminal investigation may appeal the presiding officer's order to the commissioner of public safety. Appeal must be served in writing within 14 days from the date of the order. If the order is not appealed within the 14-day time period, it shall be considered a final decision, and the department may authorize affirmative public notification.

(12) The commissioner shall consider an appeal on the record made before the presiding officer. The commissioner shall not consider any additional facts on appeal. The commissioner may, at the commissioner's discretion, request written briefs or oral argument in an appeal. The commissioner shall issue a written decision affirming, reversing, or modifying the order of the presiding officer. A copy of the decision shall be promptly mailed to each party. The decision, and all related information, shall remain confidential, in accordance with Iowa Code section 692A.13. The commissioner's decision shall constitute final agency action for purposes of Iowa Code section 17A.19.

f. Subsequent affirmative public notification. For a registrant who has been assessed as "at risk" and who has been notified of authorization for affirmative public notification, the department of public safety on its own initiative, or in response to a request from another criminal or juvenile justice agency, may authorize affirmative public notification in any area in which the registrant resides, is employed or attends school, or frequents subsequent to the initial notification to the registrant of the possibility of affirmative public notification. If the form of notice is consistent with that described in the notice given to the registrant of the initial finding that the registrant is "at risk" and subject to affirmative public notification, no further notice to the registrant is required. If the form or content of affirmative public notification differs substantially from that described in the notice to the registrant of the initial finding, a new notice of initial finding shall be prepared and sent to the registrant, as provided in paragraph "e," subparagraph (2), of this subrule.

8.304(2) Release of information in response to individual request. A sheriff who receives a completed Form DCI-150 shall inquire of the division of criminal investigation as to whether the person about whom information was requested is registered with the Iowa sex offender registry. If the division of criminal investigation notifies the sheriff that the person about whom inquiry is made is not on the registry, the sheriff shall so notify the person who submitted the request. If the division of criminal investigation notifies the sheriff that the subject about whom inquiry was made is a registrant with the Iowa sex offender registry, the sheriff shall notify the person making the inquiry that the subject about whom the inquiry was made is a registrant and shall provide the requester with the following information: name of registrant, address of registrant, age of registrant, gender of registrant, and physical description of registrant. No additional information may be released in response to an individual request for information.

EXCEPTION: The division of criminal investigation may release additional information regarding a registrant to personnel of criminal justice agencies or to personnel of government agencies conducting confidential background investigations.

8.304(3) Release of information for bona-fide research. Information from the Iowa sex offender registry may be released to persons conducting bona-fide research. A person conducting bona-fide research may request access to information from the Iowa sex offender registry by submitting a completed Form DCI-155 to the division of criminal investigation. Information identifying persons who have requested information about registrants using Form DCI-150 shall not be released to researchers unless permission has been obtained from each person who would be identified.

661--8.305(692A) Expungement of records.

8.305(1) Expungement upon reversal of conviction. The division of criminal investigation shall expunge the registration of any registrant if the conviction which forms the basis for the registrant's being required to register is reversed upon receipt of a certified copy of the court order reversing the conviction, providing that the person has been convicted of no other offense which would require registration.

8.305(2) Expungement upon expiration of registration period. The division of criminal investigation shall expunge a registrant's registration upon expiration of the period during which the registrant is required to register, provided that the registrant has not subsequently been convicted of an offense that would require registration.

These rules are intended to implement Iowa Code chapter 692A.

[Filed 10/30/97, effective 1/1/98]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7660A

PUBLIC SAFETY DEPARTMENT[661]

Adopted and Filed

Pursuant to the authority of Iowa Code section 99F.4, the Iowa Department of Public Safety hereby amends Chapter 23, "Closed Circuit Videotape Surveillance Systems on Excursion Gambling Boats," Iowa Administrative Code.

These amendments update requirements for video surveillance systems and equipment on excursion gambling boats licensed pursuant to Iowa Code chapter 99F by the Iowa Racing and Gaming Commission.

These amendments were proposed under Notice of Intended Action published in the Iowa Administrative Bulletin on July 16, 1997, as ARC 7395A. A public hearing on the proposed amendments was held on August 6, 1997. No comments regarding the proposed amendments were received at the hearing or otherwise, and the amendments adopted here are identical to those proposed in the Notice of Intended Action.

These amendments are intended to implement Iowa Code section 99F.4, subsection 18.

These amendments will become effective on January 1, 1998.

The following amendments are adopted.

ITEM 1. Amend rule 661--23.1(99F) by adding the following new definitions in alphabetical order:

"Casino surveillance" means the observation of gaming and gaming-related activities in a licensed gaming establishment. The purpose of a surveillance system is to safeguard the licensee's assets, protect both the public and licensee's employees, and to promote public confidence that licensed gaming is conducted honestly and free of criminal elements and activities. It is the responsibility of the licensee to ensure that the surveillance system is used to accomplish the stated purposes and is not used in an improper manner that would bring discredit to the industry.

"Dedicated coverage" means a video camera which is required by these standards to continuously record a specific activity. In lieu of continuous recording, time lapse recording is acceptable, if approved by the DCI or the administrator for a specific activity.

"Slot change booth" means a structure on the floor of a licensed gaming establishment which houses a coin counting device that is utilized to redeem coins from patrons. The term does not include slot machine carousels, floor banks or change banks.

ITEM 2. Amend rule 661--23.4(99F), numbered paragraphs "5" and "8," as follows:

5. Universal power supply--The system and its equipment must be directly and securely wired in a way to prevent tampering with the system. In the event of a loss in power to the surveillance system, an auxiliary or backup power source must be available and capable of providing immediate restoration of power to the elements of the surveillance system that enable surveillance personnel to observe the gaming activity remaining open for play and all areas monitored by dedicated coverage.

8. Videotape recorders--Capable of producing high quality, first generation pictures with a horizontal resolution of a minimum of 300 lines nonconsumer, professional grade, and recording standard 1/2 inch, VHS tape with high-speed scanning and flickerless playback capability in real time. Also, time and date insertion capabilities for taping what is being viewed by any camera in the system. A minimum of one video recorder for every eight video cameras is required. Each video camera required by these standards must possess the capability of having its view displayed on a video monitor and recorded. The surveillance system must include enough monitors and recorders to simultaneously display and record multiple gaming, cage, count-room activities, and record the views of all dedicated coverage. The acceptable standard is eight cameras to one recorder unless the licensee satisfactorily demonstrates the ability to meet the intent of the rule by other means.

ITEM 3. Amend rule 661--23.5(99F) as follows:

661--23.5(99F) Required surveillance. Every licensee or operator shall conduct and record as required by either the commission or the DCI surveillance which allows clear, unobstructed views in the following areas of the excursion boats, and the land-based facilities, and racetrack enclosure:

1. Overall views of the casino pit areas.

2. All gaming or card table surfaces, including table bank trays, with sufficient clarity to permit identification of all chips, cash, and card values, and the outcome of the game. Each gaming table shall have the capability of being viewed by no less than two cameras.

3. Dice in craps games, with sufficient clarity to read the dice in their stopped position after each roll.

4. All roulette tables and wheels, capable of being recorded on a split screen to permit views of both the table and the wheel on one monitor screen.

5. All areas within cashier cages and booths, including, but not limited to, customer windows, employee windows, cash drawers, vaults, safes, counters, chip storage and fill windows. Every transaction occurring within or at the casino cashier cages must be recorded with sufficient clarity to permit identification of currency, chips, tokens, fill slips, paperwork, employees, and patrons.

6. All entrance and exit doors to the casino area shall be monitored by the surveillance system if they are utilized for the movement of uncounted moneys, tokens, or chips. Also, elevators, stairs, gangplanks, and loading and unloading areas shall be monitored if they are utilized for the movement of uncounted moneys, chips, or tokens.

7. All areas within a hard count room and any area where uncounted coin is stored during the drop and count process, including walls, doors, scales, wrapping machines, coin sorters, vaults, safes, and general work surfaces.

8. All areas within a soft count room, including solid walls, doors, solid ceilings, stored drop boxes, vaults, safes, and counting surfaces which shall be transparent.

9. Overall views of patrons, dealers, spectators, and pit personnel, with sufficient clarity to permit identification thereof.

10. Overall views of the movement of cash, gaming chips and tokens, drop boxes and drop buckets.

11. All areas on the general casino floor with sufficient clarity to permit identification of all players, employees, patrons, and spectators.

12. Every licensee who exposes slot machines for play shall install, maintain, and operate at all times a casino surveillance system that possesses the capability to monitor and record clear, unobstructed views of the following:


* All slot change booths, including their cash drawers, countertops, counting machines, customer windows, and employee windows, recorded with sufficient clarity to permit identification of all transactions, cash, and paperwork therein.


* The slot machine number.


* All areas, recorded with sufficient clarity to permit identification of all players, employees, patrons, and spectators.

13. The DCI may require surveillance coverage of any other operation or game on either an excursion gambling boat or a land-based facility.

1. Slot machines. Every licensee who exposes slot machines for play shall install, maintain, and operate a casino surveillance system that possesses the capability to monitor and record the slot machine number.

2. Table games. The surveillance system must possess the capability to monitor and record all gaming or card table surfaces; table number, including table bank trays, with sufficient clarity to permit identification of all chips, cash, card values, and the outcome of the game; dice in craps games, with sufficient clarity to read the dice in their stopped position after each roll and all roulette tables and wheels must be capable of being monitored and recorded on a split screen to permit views of both the table and the wheel on one monitor screen. Each table or card game shall have the capability of being monitored and recorded by no less than two cameras.

3. Progressive table games. Each progressive table game must be monitored by dedicated coverage that provides views of the table surface so that the card values and card suits can be identified and a view of the progressive meter jackpot amount.

4. Casino cage and slot change booth. The surveillance system must possess the capability to monitor and record a general overview of activities occurring in each casino cage and slot change booth, with sufficient clarity to identify patrons and employees at the counter area, cash drawers, vaults, safes, countertops, coin and currency counting machines, chip and token storage, chip, token, and currency denomination. The casino cage and slot change booth area in which fills, credits, and jackpots are transacted must be monitored by dedicated coverage that provides views with sufficient clarity to identify the chip, token, and currency values and the amounts on the fill/credit slips.

5. Count rooms. The surveillance system must possess the capability to monitor and record all areas within the hard or soft count room, including walls, doors, scales, wrapping machines, coin sorters, currency counters, vaults, safes, and general work surfaces. The counting surface, in the soft count room, must be made of a transparent material. Any area where uncounted coin or currency is stored must be monitored by dedicated coverage. In addition, the hard count and soft count process must be monitored by dedicated coverage.

6. Movement of funds. The surveillance system must possess the capability to monitor and record the movement of cash, gaming chips, tokens, drop boxes and drop buckets. All casino entrance and exit doors, elevators, stairs, gangplanks, loading and unloading areas shall also possess the capability to be monitored and recorded if they are utilized for the movement of uncounted moneys, tokens, or chips.

7. Admissions entrance and exits. The admissions and exit area of the excursion gambling boat and racetrack enclosure must be monitored by dedicated coverage with sufficient clarity to identify patrons and employees at the admissions entrance and exit area.

8. Overall views. The surveillance system must possess the capability to monitor and record with sufficient clarity the casino pit area and general casino floor with sufficient clarity to permit identification of players, employees, patrons, and spectators.

9. The DCI may require surveillance coverage of any other operation or game on either an excursion gambling boat, land-based facility, or racetrack enclosure.

ITEM 4. Amend rule 661--23.9(99F) as follows:

661--23.9(99F) Surveillance room. There shall be provided on each excursion gambling boat and racetrack enclosure a room or rooms specifically utilized to monitor and record activities on the casino floor, count room, cashier cages, gangplank area, and slot cages change booths. These rooms This room shall have a trained surveillance person person(s) present during casino operation hours. In addition, an excursion gambling boat and racetrack enclosure may havesatellite-monitoring equipment. The following are requirements for the operation of equipment in the surveillance room and of satellite-monitoring equipment:

23.9(1) Surveillance equipment location. All equipment that may be utilized to monitor or record views obtained by a casino surveillance system must remain located in the room used exclusively for casino surveillance security purposes. ,except for equipment which is being repaired or replaced. The satellite-monitoring equipment must be capable of being disabled from the casino surveillance room when not in use. The entrance to the casino surveillance room must be locked or secured at all times.

23.9(2) Override capability. Casino surveillance equipment must have total override capability over any othersatellite-monitoring equipment in other casino offices, with the exception of the DCI rooms.

23.9(3) Access. DCI and commission employees shall at all times be provided immediate access to the casino surveillance room and other casino surveillance areas and satellite-monitoring equipment. Also, all DCI and commission employees shall have access to all records and areas of such rooms.

23.9(4) Surveillance logs. Entry in the log shall be required when requested by the DCI or the commission, whenever surveillance is conducted on anyone, or whenever any activity that appears unusual, irregular, illegal or in violation of commission rules is observed. Also, all telephone calls shall be logged.

23.9(5) Blueprints. A copy of the configuration of the casino floor shall be posted and updated immediately upon any approved change. Also included shall be the location of any change, and the location of surveillance cameras, gaming tables and slot machines by assigned numbers. Copies shall also immediately be made available to the DCI room and commission.

23.9(6) Storage and retrieval. Surveillance personnel will be required to label and file all videotape recordings. The date, and time, and signature of the person making the recording is required. All videotape recordings shall be retained for at least seven days after recording unless a longer period is required by the DCI, the commission, or court order. Original audiotapes and original videotapes shall be released to a the DCI agent or commission upon demand.

23.9(7) Malfunctions. Each malfunction of surveillance equipment must be repaired within 24 hours of the malfunction. If, after 24 hours, activity in the affected area cannot be monitored, the game or machine shall be closed until such coverage can be provided. A record of all malfunctions shall be kept and reported to the DCI each day. In the event of a dedicated coverage malfunction, the licensee must immediately provide alternative camera coverage or other security measures that will protect the subject activity. If other security measures are taken, the licensee must immediately notify the DCI. The DCI, in its discretion, will determine whether the other security measures are adequate.

23.9(8) Security. Entry to the surveillance room and access to satellite-monitoring equipment is are limited to persons approved by the DCI or the administrator commission. A log of personnel entering and exiting the surveillance room and accessing satellite-monitoring equipment shall be maintained and submitted to the DCI every 30 days or commission upon request.

23.9(9) Playback station. An area is required to be provided within the DCI room that will include, but is not limited to, a video monitor and a video recorder with the capability of producing first generation videotape copies.

23.9(10) Additional requirements.

a. Audio Audiotape and videotape monitoring will be continuous in the DCI and security detention areas, when someone is being detained. These recordings must be retained for 30 days after the recorded event, unless directed otherwise by the administrator, DCI, or court order.

b. The commission, its employees, and DCI agents shall, at all times, be provided immediate access to the surveillance room and all areas of the casino.

23.9(11) Written plans and alterations.

a. Every operator or applicant for licensing shall submit to the commission for approval by the administrator and to the DCI for approval by the director of the DCI, a written casino surveillance system plan no later than 60 days prior to the start of gaming operations.

b. A written casino surveillance system plan must include a casino floor plan that shows the placement of all casino surveillance equipment in relation to the locations required to be covered, and a detailed description of the casino surveillance system and its equipment. In addition, the plan may include other information that evidences compliance with these rules by the licensee, operator or applicant.

c. The operator may change the location of table games, slot machines, and other gaming devices. The surveillance system must also be adjusted, if necessary, to provide the coverage required by these rules. A DCI agent must approve the change in surveillance system before the relocated table games, slot machines, or other gaming devices may be placed into operation. The operator must submit any change to the surveillance system showing the change in the location of the gaming devices and related security and surveillance equipment within seven days to the administrator and the director of the DCI.

[Filed 10/30/97, effective 1/1/98]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7655A

RACING AND GAMING COMMISSION[491]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 99D.7 and 99F.4, the Iowa Racing and Gaming Commission hereby adopts amendments to Chapter 13, "Occupational and Vendor Licensing," and Chapter 20, "Application Process for Excursion Boats and Racetrack Enclosure Gaming License," Iowa Administrative Code.

Item 1 changes how partnerships are licensed in greyhound and horse racing.

Item 2 removes the requirement for corporations racing in Iowa to be registered to do business in Iowa.

Item 3 requires an applicant, licensee and boat operator to comply with the requirements of an application and conditions of a license.

Item 4 expands how a licensee goes about the distribution of receipts.

These adopted amendments are similar to those published under Notice of Intended Action in the September 10, 1997, Iowa Administrative Bulletin as ARC 7503A. Item 3 was changed by defining who a recipient is, replacing the term "licensee" with "qualified sponsoring organization" wherever it appears in the rule and allowing exceptions to the rule if approved by the Commission.

A public hearing was held on September 20, 1997. Oral comments were received.

These amendments will become effective December 24, 1997.

These amendments are intended to implement Iowa Code chapters 99D and 99F.

The following amendments are adopted.

ITEM 1. Rescind rule 491--13.17(99D) and insert in lieu thereof the following new rule:

491--13.17(99D) Partnerships owning racing animals.

13.17(1) A partnership is defined as a formal or informal arrangement between two or more persons to own a racing animal. All partnerships, excluding husband and wife, must be registered with the commission on forms furnished by the commission; and, after paying the prescribed fee, the partnership may be issued a license allowing the partnership to participate at Iowa racetracks.

13.17(2) The managing partner(s) listed on the application and all parties owning 5 percent or more must be licensed as an owner before the partnership will be considered licensed by the commission.

a. The commission may request a partnership to have on file with the commission (copy attached to the registration certificate on file in racing secretary's office) an agreement whereby the managing partner(s) is designated to be responsible for each racing animal. This agreement must be notarized and must be signed by all partners.

b. It will be the responsibility of the managing partner(s) to make sure that all parties are eligible for licensure. The commission will deny, suspend, or revoke the license of any partnership in which a member is either qualified or limited by rights or interests held or controlled by any individual or entity which would be ineligible to be licensed as an owner or to participate in racing.

c. Any owner who is a member of a partnership must list all racing animals in which an interest is owned either in whole or in part.

d. All parties to a partnership shall be jointly and severally liable for all stakes, forfeits and other obligations.

e. An authorized agent may be appointed to represent the partnership in all matters and be responsible for all stakes, forfeits, power of entry, scratches, signing of claim slips, and other obligations in lieu of the managing partner(s).

13.17(3) The share or any part of the share of a part owner of any racing animal cannot be assigned without the written consent of the other partner(s); and approved by the stewards and filed with the racing secretary. Any alteration in a partnership structure or percentages must be reported promptly in writing, notarized, signed by all members of the partnership, and filed with the commission.

13.17(4) The commission or the stewards may review the ownership of each racing animal entered to race and ensure that each registration certificate or eligibility certificate is properly endorsed by the transferor to the present owner(s). The commission or stewards may determine the validity for racing purposes of all liens, transfers and agreements pertaining to ownership of a racing animal and may call for adequate evidence of ownership at any time. The commission or stewards may declare ineligible to race any animal, the ownership or control of which is in question.

ITEM 2. Amend subrule 13.18(1), introductory paragraph, as follows:

13.18(1) All corporations must be duly licensed by the commission. and must register to do business according to the laws of the state of Iowa. The corporation must submit a complete list of stockholders and the number of shares owned by each stockholder owning a beneficial interest of 5 percent or more.

ITEM 3. Rescind subrule 20.11(6) and insert in lieu thereof the following new subrule:

20.11(6) Distribution of receipts. For purposes of this subrule, recipient shall be defined as that entity receiving funds directly from the qualified sponsoring organization and not subsequent beneficiaries through another organization.

a. The qualified sponsoring organization shall provide a certification describing how all receipts, after deductions allowed in Iowa Code section 99F.6(4), will be distributed. The certification shall be subscribed and sworn to by an executive officer of the qualified sponsoring organization, in the presence of a licensed notary public. Distributions by a qualified sponsoring organization for educational, civic, public, charitable, patriotic, or religious uses as defined in Iowa Code section 99B.7, subsection 3, paragraph "b," shall be subject to the following requirements.

(1) All such distributions shall be made according to written criteria, which shall be made available to any person upon request.

(2) Potential recipients of any such distributions shall be required to certify that the intended use of the proceeds of the distributions will comply with the uses as defined in Iowa Code section 99B.7, subsection 3, paragraph "b."

(3) The qualified sponsoring organization shall establish written procedures concerning the avoidance of conflicts of interest when determining such distributions.

(4) The qualified sponsoring organization shall require each recipient of a distribution, as a condition precedent to such distribution, to provide any information requested byeither the qualified sponsoring organization or the commission for the purpose of determining whether such distribution satisfies the written criteria and procedures of the qualified sponsoring organization as well as any statute or rule governing such distribution.

(5) Such distributions shall not be made in return for remuneration, inducement or other consideration to the qualified sponsoring organization pursuant to any contract, agreement or other understanding, either written or oral, unless the contract, agreement or understanding is approved by the commission, nor shall any such distributions be made under duress, coercion, threat or other compulsion, either expressed or implied.

b. For the previous year, a qualified sponsoring organization shall provide the following information regarding any distributions for educational, civic, public, charitable, patriotic, or religious uses as defined in Iowa Code section 99B.7, subsection 3, paragraph "b":

(1) The written criteria by which all such distributions were evaluated and the written procedures for avoiding conflicts of interest, including the effective dates and substance of all amendments or modifications thereof.

(2) The identity of each recipient of a distribution and the amount and specific use of each distribution.

(3) A notarized statement that to the best of the executive officer's knowledge, after appropriate investigation, all such distributions by the qualified sponsoring organization complied with its written criteria and procedures as of the effective dates of such distributions, as well as all statutes of the state of Iowa and rules of the commission.

c. The qualified sponsoring organization shall not delegate the making of its distribution decisions to any other person or entity without the prior consent of the commission.

ITEM 4. Amend rule 491--20.15(99F) by adding the following new subrule:

20.15(5) Duty to comply. It shall be the affirmative responsibility and continuing duty of each applicant, licensee, and boat operator to comply with the requirements of an application and conditions of a license.

[Filed 10/28/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7670A

UTILITIES DIVISION[199]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 476.2, 478.19, 479.29, 479A.10, and 479B.20, the Utilities Board (Board) gives notice that on October 31, 1997, the Board issued an order in Docket No. RMU-97-3, In Re: Safety and Service Standards, "Order Adopting Rules," adopting amendments to IAC Chapters 9, 10, 12, 19, 20, and 25.

On April 7, 1997, the Board issued an order to consider the amendment of 199 IAC Chapters 9, 10, 12, 19, 20, and 25. The proposed rule making was published in the IAB Vol. XIX, No. 23 (5/7/97) p. 1805, as ARC 7220A. Written statements of position were filed on or before May 28, 1997, by the Consumer Advocate Division of the Iowa Department of Justice (Consumer Advocate), Iowa Association of Elec-tric Cooperatives (IAEC), United Cities Gas Company(United Cities), and MidAmerican Energy Company (Mid-American). A statement of position was also filed by IES Utilities Inc. on May 28,1997. An oral presentation was held on July 8, 1997.

The purpose of this rule making is to update the electric and pipeline standards incorporated by reference in the rules since many of the industry standards in the Board's current rules have been superseded by newer editions. The proposed amendments also reflect recent amendments to Iowa Code chapters 479 and 479B and correct deficiencies in the present rules. In addition, the Board proposes an amendment to subrule 19.8(5) which references where standards for odorization can be located.

MidAmerican asserted that the proposed language in paragraph 10.3(4)"c" adds an unnecessary and counterproductive element of uncertainty. According to MidAmerican, demonstrating a good-faith effort could be difficult and the requirement would create a due process appeal point by persons objecting to the permit.

The additional language in paragraph 10.3(4)"c" does not add any new requirement for the utilities. The language simply reflects a 1995 legislative amendment to Iowa Code section 479.5. The paragraph is adopted as proposed.

MidAmerican maintained that the requirement in rule 10.8(479) concerning renewing a pipeline permit every 25 years is outdated and results in additional expense with little corresponding benefit to the public. MidAmerican suggested that the pipeline rules be reviewed to delete unnecessary requirements and to expedite the process. Consumer Advocate noted that the Board has worked to streamline the process and questioned the wisdom of drastic change.

Iowa Code section 479.23 requires that permit renewals follow essentially the same process as a new permit. The Board has sought to accelerate the process by utilizing telephone hearings when appropriate. Although the Board would welcome suggestions on expediting procedures for permit renewals, MidAmerican's comments appear to be outside the parameters of the statute.

MidAmerican opposed the retention of ASME B31.8 in paragraph 10.12(1)"f." MidAmerican contended that ASME B31.8 is no longer necessary since the Board adopted 49 CFR Part 192. MidAmerican maintained that ASME B31.8 has the potential to create confusion and may result in pipelines being inaccurately classified as transmission instead of a gas main. MidAmerican specifically objected to the B31.8 provision which defines pipelines to large volume customers as transmission.

The Board does not believe any confusion exists. In Amendment 192-78, the Office of Pipeline Safety (OPS) amended the definition of transmission lines in 49 CFR SS 192.3 to include large volume customers. The amendment was effective June 6, 1996. Paragraph 10.12(1)"f" is adopted as proposed.

Proposed subparagraph 19.2(5)"b"(2) sets forth the minimum economic threshold of gas accident damage which requires Board notification at $15,000. MidAmerican suggested the dollar threshold for incident reporting be increased to $50,000, the same level required for federal reporting. Consumer Advocate maintained $50,000 was too high and supported the proposed $15,000 threshold.

This issue was addressed on April 21, 1995, in Docket No. RMU-94-4, In Re: Pipeline Permits and Safety, "Order Adopting Rules." In Docket No. RMU-94-4, the Board found the federal level was not an appropriate level for Iowa. The Board stated that increasing the estimated property damage to $50,000 would ignore the many rural or less affluent areas in Iowa where the value of a residence may be valued well under the $50,000. The Board's reasons have remained unchanged in this docket. Under MidAmerican's proposal, a residence destroyed by an accident would not be reported to the Board. The Board should be informed of any accident in Iowa which causes substantial property damage. A threshold of $15,000 would appear to be a reasonable economic threshold amount for Iowa.

The Board proposed the recission of paragraph 19.2(5)"c" regarding notification of proposed additions to plant. Mid-American supported recission of paragraph 19.2(5)"c" and also suggested the recission of numerous internal records utilities are required to maintain. MidAmerican's contention that certain internal record-keeping requirements are unnecessary may have merit. However, recission of those requirements would be beyond the scope of this rule making.

MidAmerican suggested the Board strike the reference to ANSI Z223.1/NFPA 54 in subrule 19.8(3). MidAmerican contended that the reference to ANSI Z223.1/NFPA 54 implies that only that procedure was acceptable. The subrule is adopted as proposed. The reference to the NFPA Code in subrule 19.8(3) does not require that the ANSI/NFPA method be followed. The Code is only recommended for guidance.

Subrule 19.8(5) is amended to reference where standards for odorization are located and to mandate that utilities take prompt remedial action if odorization levels do not meet the prescribed limits for detectability. United Cities supported the amendment. MidAmerican contended that the amendment was unnecessary as the need for remedial action was already implicit in the rule. MidAmerican asserted that the entire subrule duplicates federal standards and should be deleted. At the oral presentation, MidAmerican stated it did not disagree with the intent of the subrule but dislikes prescriptive response language.

Federal and industry standards require periodic tests of odorization levels. Recent inspections have discoveredodorization problems not addressed by the Board's current rules. The Board believes these situations clearly indicate the need for prompt remedial action if odorization levels do not meet the prescribed limits. Therefore, subrule 19.8(5) is adopted as proposed.

Subparagraph 25.2(2)"b"(4) was amended to reflect the 1997 National Electric Safety Code (NESC) and clarify when the use of the 1987 NESC is permitted. IES contended that if the subparagraph only applied to NESC subsection 232, then the phrase "Except for clearances from grain bins" should be stricken.

IES apparently believes that if the subparagraph is limited to NESC subsection 232, the "except" clause is unnecessary since grain bin standards are in a different subsection. NESC subsection 232 contains overhead clearance standards for electric conductors. NESC subsection 234 contains clearance standards for conductors from buildings or other structures. However, NESC subsection 234 also includes overhead clearances in the work area near grain bins (where augers are moved around) which may exceed those found in subsection 232. The grain bin clearances first appeared in the 1990 NESC. A statement should remain in the subparagraph to clarify that the 1987 NESC clearances cannot be used in checking the safety requirements for line clearances near grain bins. However, for clarification, the opening phrase in subparagraph 25.2(2)"b"(4) has been revised to read "Except for clearances near grain bins."

MidAmerican takes no issue with the proposed amendment to subrule 25.2(3) regarding new NESC rules on electric line clearances near grain bins with permanently mounted loading facilities. However, MidAmerican argued that the subrule does not define what constitutes a sufficient "annual public information campaign" to inform farmers, farm lenders, grain bin merchants, and city and county zoning officials of the hazards of and standards for construction of grain bins near power lines. MidAmerican suggested the Board amend the subrule to specifically state what level of communication is necessary to convey the information to that segment of its customer base.

The Board declined to adopt MidAmerican's proposal. The rule change suggested by MidAmerican appears to be outside the scope of the amendments proposed under Notice of Intended Action. In addition, the questions raised by Mid-American were addressed in the January 12, 1992, Board "Order Adopting Rules" in Docket No. RMU-91-3, regarding public information campaigns on electric line clearances near grain bins. A public information campaign aimed at farm customers, or limited to parties inside the utilities service area, may not necessarily reach all parties required by subrule 25.2(3). In these instances, the utility may have to contact the parties by direct mail. Subrule 25.2(3) is adopted as proposed.

The Board does not believe additional public comment on the adopted amendments is necessary because the changes made to the rules are a logical outgrowth of the Notice of Intended Action and public hearing.

These amendments are intended to implement Iowa Code chapters 476, 478, 479, and 479B.

These amendments will be effective on December 24, 1997.

The following amendments are adopted.

ITEM 1. Amend subrule 9.1(1) as follows:

9.1(1) Authority. The standards contained herein are prescribed by the Iowa state utilities board pursuant to the authority granted to the board in Iowa Code sections 479.29, 479.30, 479A.14, and 479A.15 479B.20, relating to land restoration standards for pipelines.

ITEM 2. Amend subrule 10.1(2) as follows:

10.1(2) "Board" shall mean the Iowa state utilities board.

ITEM 3. Rescind and reserve subrule 10.1(4).

ITEM 4. Amend subrule 10.1(5) as follows:

10.1(5) "Permit" shall mean a permanent permit or renewal permit issued by the Iowa state utilities board new, amended, or renewal permit issued after appropriate application to and determination by the board.

ITEM 5. Amend subrule 10.1(8) as follows:

10.1(8) "Renewal permit" shall mean the extension and reissuance of a permanent permit after appropriate application to and determination by this board.

ITEM 6. Amend paragraph 10.3(4)"c" as follows:

c. The prospective petitioner shall cause the meeting notice, including the map, to be published once in a newspaper of general circulation in the county at least one week and not more than three weeks prior to the date of the meeting. Publication shall be considered as notice to affected parties whose residence is not known provided a good-faith effort to notify can be demonstrated by the pipeline company.

ITEM 7. Amend rule 199--10.7(479) as follows:

199--10.7(479) Permanent Pipeline permit. If after hearing and appropriate findings of fact it is determined a permit should be granted, a permanent pipeline permit will be issued. Otherwise such petition shall be dismissed with or without prejudice. Where proposed construction has not been established definitely, the permanent permit will be issued on the route or location as set forth in the petition, subject to deviation of up to 160 rods on either side of such proposed route. If the proposed construction is not completed within two years from the date of issue, subject to extension at the discretion of this board, such permanent the permit shall be void and of no further force or effect. Upon completion of the proposed construction, maps accurately showing the final routing of the pipeline shall be filed with the board.

A permanent pipeline permit shall normally expire 25 years from date of issue. No such permit shall ever be granted for a longer period than 25 years.

ITEM 8. Amend rule 199--10.8(479), introductory paragraph, as follows:

199--10.8(479) Renewal permits. Petition for renewal of an original or previously renewed pipeline permit may be filed at any time subsequent to issuance of a permanent the permit and prior to the expiration thereof. Such petition shall be made on the form prescribed by this board. Instructions for the use thereof are included as a part of such form. The procedure for petition for permit shall be followed with respect to publication of notice, objections, hearing, and assessment of costs. Renewal permits shall normally expire 25 years from date of issue. No such permit shall be granted for a longer period than 25 years. The same procedure shall be followed for subsequent renewals.

ITEM 9. Amend subrule 10.9(2) as follows:

10.9(2) Petition for amendment. The petition for amendment of an original or renewed pipeline permit shall include the docket number and issue date of the permit for which amendment is sought and shall clearly state the purpose of the petition. If the petition is for construction of additional pipeline facilities or expansion of an underground storage area, the same exhibits as required for a petition for permit shall be attached.

The applicable procedures for petition for permit, including hearing, shall be followed. Upon appropriate determination by this board, an amendment to permanent the permit will be issued. Such amendment shall be subject to the same conditions with respect to completion of construction within two years and the filing of final routing maps as attached to permanent pipeline permits.

ITEM 10. Amend subrule 10.10(1), introductory paragraph, as follows:

10.10(1) Permit expenses. The petitioner shall pay the actual unrecovered cost incurred by the board attributable to the processing of an, investigation, and inspection related to a petition requesting a pipeline permit action.

ITEM 11. Amend subrule 10.12(1) as follows:

10.12(1) All pipelines, underground storage facilities, and equipment used in connection therewith shall be designed, constructed, operated, and maintained in accordance with the following standards:

a. 49 CFR Part 191, "Transportation of Natural and Other Gas By Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports," as amended through September 1, 1994 April 1, 1997.

b. 49 CFR Part 192, "Transportation of Natural and Other Gas By Pipeline; Minimum Federal Safety Standards," as amended through September 1, 1994 April 1, 1997.

c. 49 CFR Part 195, "Transportation of Hazardous Liquids By Pipeline," as amended through September 1, 1994 April 1, 1997.

d. 49 CFR Part 199, "Drug Testing," as amended through September 1, 1994 April 1, 1997.

e. ASME B31.4-1992, "Liquid Transportation Systems for Hydrocarbons, Liquid Petroleum Gas, Anhydrous Ammonia, and Alcohols."

f. ASME B31.8-1992 1995, "Gas Transmission and Distribution Piping Systems."

g. ASME B31.11-1989, "Slurry Transportation Piping Systems."

h. 199 IAC 9, "Protection of Underground Improvements and Soil Conservation Structures and Restoration of Agricultural Lands After Pipeline Construction."

Conflicts between these standards, or between the requirements of this rule and other requirements which are shown to exist by appropriate written documentation filed with the board, shall be resolved by the board.

ITEM 12. Adopt new rule 199--12.7(479A) as follows:

199--12.7(479A) Land restoration. Pipelines shall be constructed in compliance with 199 IAC 9, "Protection of Underground Improvements and Soil Conservation Structures and Restoration of Agricultural Lands After Pipeline Construction."

ITEM 13. Amend subparagraph 19.2(5)"b"(2) as follows:

(2) Estimated property damage of $5,000 $15,000 or more to the property of the utility and to others, including cost of gas lost, if known.

ITEM 14. Rescind and reserve paragraph 19.2(5)"c."

ITEM 15. Amend paragraph 19.2(5)"g" as follows:

g. Annual reports Reports to federal agencies. Copies of annual reports submitted pursuant to 49 C.F.R. CFR Part 191 (1986) as amended through April 1, 1997, "Transportation of Natural and Other Gas by Pipeline: Annual Reports, and Incident Reports, and Safety-Related Condition Reports," shall be filed with the board. Utilities operating in states besides Iowa shall provide to the board data for Iowa only.

ITEM 16. Amend subrule 19.5(2) as follows:

19.5(2) Standards incorporated by reference.

a. The design, construction, operation, and maintenance of gas systems and liquefied natural gas facilities shall be in accordance with the following standards where applicable:

(1) 49 CFR Part 191, "Transportation of Natural and Other Gas By Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports," as amended through September 1, 1994 April 1, 1997.

(2) 49 CFR Part 192, "Transportation of Natural and Other Gas By Pipeline; Minimum Federal Safety Standards," as amended through September 1, 1994 April 1, 1997.

(3) 49 CFR Part 193, "Liquefied Natural Gas Facilities: Federal Safety Standards," as amended through September 1, 1994 April 1, 1997.

(4) 49 CFR Part 199, "Drug Testing," as amended through September 1, 1994 April 1, 1997.

(5) ASME B31.8-1992 1995, "Gas Transmission and Distribution Piping Systems."

(6) ANSI/NFPA No. 59-1992 1995, "Standard for the Storage and Handling of Liquefied Petroleum Gases at Utility Gas Plants."

b. The following publications are adopted as standards of accepted good practice for gas utilities:

(1) ANSI Z223.1/NFPA 54-1992 1996, "National Fuel Gas Code."

(2) ANSI A225/NFPA 501A-1992, "Manufactured Home Installations Fire Safety Criteria for Manufactured Home Installations, Sites, and Communities."

ITEM 17. Amend subrule 19.6(3) as follows:

19.6(3) Accepted good practice. The following publications are considered to be representative of accepted good practice in matters of metering and meter testing:

a. American National Standard for Gas Displacement Meters (500 Cubic Feet Per Hour Capacity and Under), ANSI B109.1-1973 1992.

b. American National Standard for Diaphragm Type Gas Displacement Meters (Over 500 Cubic Feet Per Hour Capacity), ANSI B109.2-1980 1992.

c. American National Standard for Rotary Type Gas Displacement Meters, ANSI B109.3-1980 1992.

d. Handbook E-4: Displacement Gas Meters, American Meter Company, 1970.

e. Measurement of Gas Flow by Turbine Meters, ANSI/ASME MFC-4M-1986 1990.

f. Measurement of Fuel Gas by Turbine Meters, American Gas Association Transmission Measurement Committee Report No. 7, 1981.

g. Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids, ANSI/API 2530-1985 1991. (American Gas Association Report No. 3-Second Edition)

ITEM 18. Amend subrule 19.8(3) as follows:

19.8(3) Turning on gas. Each utility upon the installation of a meter and turning on gas or the act of turning on gas alone shall take the necessary steps to assure itself that there exists no flow of gas through the meter which is a warning that the customer's piping or appliances are not safe for gas turn on (Ref: Sec. 4.2 and Appendix D, ANSI Z223.1/NFPA 54-1992 1996).

ITEM 19. Amend subrule 19.8(5) as follows:

19.8(5) Odorization. Any gas distributed to customers through gas mains or gas services or used for domestic purposes in compressor plants, which does not naturally possess a distinctive odor to the extent that its presence in the atmosphere is readily detectable at all gas concentrations of one-fifth of the lower explosive limit and above, shall have an odorant added to it to make it so detectable. Odorization is not necessary, however, for such gas as is delivered for further processing or use where the odorant would serve no useful purpose as a warning agent. Suitable tests must be made to determine whether the odor meets the aforementioned standards of subrule 19.5(2). Prompt remedial action shall be taken if odorization levels do not meet the prescribed limits for detectability.

ITEM 20. Amend subrule 20.5(2) as follows:

20.5(2) Acceptable standards. The utility shall use the applicable provisions in the publications listed below as standards of accepted good practice unless otherwise ordered by the board.

a. Iowa Electrical Safety Code, as defined in IAC [199], Chapter 25.

b. National Electrical Code, ANSI/NFPA 70-1993 1996.

c. American National Standard Requirements for Instrument Transformers, ANSI/IEEE C57.13.1 (1981); C57.13.2 (1992); and C57.13.3 (1983) C57.13 - 1993.

d. American National Standard Requirements for Electrical Analog Indicating Instruments, ANSI C39.1-1981.

e. American Standard Requirements for Direct-Acting Electrical Recording Instruments (Switchboard and Portable types), ANSI C39.2-1964(R1969).

f. American National Standard Voltage Ratings for Electric Power Systems and Equipment (60Hz), ANSI C84.1-1989 1995.

g. Grounding of Industrial and Commercial Power Systems, IEEE 142-1991.

ITEM 21. Amend subrule 20.6(3) as follows:

20.6(3) Accepted good practice. The following publications are considered to be representative of accepted good practice in matters of metering and meter testing:

a. American National Standard Code for Electricity Metering, ANSI C12.1-1988 1995.

b. American National Standard for Solid-State Electricity Meters, ANSI C12.16-1991.

c. American National Standard for Cartridge-typeSolid-State Pulse Recorders for Electricity Metering, ANSI C12.17-1991.

ITEM 22. Amend subrule 20.7(2) as follows:

20.7(2) Voltage limits retail. Each utility supplying electric service to ultimate customers shall provide service voltages in conformance with the standard at 20.5(2)"g" "f."

ITEM 23. Amend subrule 25.2(1) as follows:

25.2(1) National Electrical Safety Code. The American National Standards Institute (ANSI) C2-1993 1997 "National Electrical Safety Code" (NESC) as ultimately conformed to the ANSI-approved draft by correction of publishing errors through issuance of printed corrections is adopted as part of the Iowa electrical safety code.

ITEM 24. Amend subparagraph 25.2(2)"b"(4) as follows:

(4) Except for clearances from near grain bins, when inspections are conducted under the utility's inspection and maintenance plan, for measurements made under field conditions, the board will consider compliance with the overhead vertical line clearance requirements of Subsection 232 and Table 232-1 of the 1987 NESC indicative of compliance with the 1993 1997 NESC. (For an explanation of the differences between 1987 and subsequent code edition clearances, see Appendix A of the 1993 1997 NESC.)

ITEM 25. Amend paragraph 25.2(2)"d" as follows:

d. Rule 264E 264E.1 is changed to read:

"The ground end of anchor guys exposed to pedestrian or vehicle traffic shall be provided with a substantial marker not less than eight feet long. The guy marker shall be of a conspicuous color such as yellow, orange, or red. Green, white, gray or galvanized steel colors are not reliably conspicuous against plant growth, snow, or other surroundings. Noncomplying guy markers shall be replaced as part of the utility's inspection and maintenance plan."

ITEM 26. Amend subrule 25.2(3) as follows:

25.2(3) Grain bins.

a. Utilities shall conduct annual public information campaigns to inform farmers, farm lenders, grain bin merchants, and city and county zoning officials of the hazards of and standards for construction of grain bins near power lines.

b. An electric utility may refuse to provide electric service to any grain bin built near an existing electric line which does not provide the clearances required by The American National Standards Institute (ANSI) C2-1993 1997 "National Electrical Safety Code," Rule 234F. This paragraph "b" shall apply only to grain bins loaded by portable augers, conveyors or elevators and built after September 9, 1992, or to grain bins loaded by permanently installed augers, conveyors, or elevator systems installed after December 24, 1997.

ITEM 27. Amend paragraph 25.2(5)"a" as follows:

a. The "National Electrical Code," ANSI/NFPA 70-1993 1996, is adopted as a standard of accepted good practice for customer owned electrical facilities beyond the utility point of delivery.

[Filed 10/31/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.

ARC 7669A

UTILITIES DIVISION[199]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 476.1, 476.2, 476.3, and 476.8, the Utilities Board (Board) gives notice that on October 23, 1997, the Board issued an order in Docket No. RMU-96-12, In Re: Natural Gas Transportation, "Order Adopting Rule Making," adopting amendments to 199 IAC 19.13(4) and 19.13(6).

Notice of Intended Action was published in IAB Vol. XIX, No. 6 (1/29/97), p.1313, ARC 7017A. Written comments were filed by the Consumer Advocate Division of the Department of Justice, MidAmerican Energy Company(MidAmerican), Enron Capital and Trade Resources Corp., Northern Natural Gas Company, IES Utilities Inc.(IES),UtiliCorp United Inc., Interstate Power Company (Interstate), PAM Natural Gas, Allerton Gas Company, Nebraska Public Gas Agency, United Cities Gas Company (UnitedCities), AG Processing Inc., mc2 a unit of MidCon Corp., and Enserch Energy Services, Inc. As a result of the written comments, an amended Notice of Intended Action was published in IAB Vol. XIX, No. 19 (3/12/97) p. 1507, ARC 7119A. The Notice was amended in order to allow interested persons an opportunity to file written replies and also to change the date scheduled for an oral presentation. An oral presentation was held on April 30, 1997.

The purpose of this rule making is to encourage small volume customer transportation service. Under the current rules regarding gas transportation, competition for gas supply became readily available for large and medium volume customers. Although the rules do not distinguish based on customer size, there has been little development of transportation service for small volume customers. The amendments adopted by the Board remove barriers for small volume customers. In addition, the Board identified several other issues related to small volume transportation which it asked interested parties to address.

The written comments and statements of position set forth at the oral presentation provided the Board with a considerable amount of information and perspective as to the issues that must be determined and the procedure that must be in place to accommodate transition into the competitive market. In response to the issues set out by the Board for comment, nearly all who commented stated that there should be no limit as to the number of customers that can choose transportation service. One utility suggested a minimum number of customers be established on a utility-specific basis. Most commenters thought that customers should be able to switch between suppliers as often as they want as long as the switch coincides with the billing cycle and the utility is allowed to recover administrative costs. Many commenters stated that there should be financial integrity standards and conduct standards for marketers who want to enter the market, and several commented that there must be a code of conduct for affiliates of the regulated utility who provide a marketing function. In addition, many of the commenters stated that marketers should be allowed to aggregate loads. Approximately two-thirds agreed that marketers should have access to the utilities' storage resources. The marketers and most of the utilities favored the option of marketer access to interstate pipeline capacity and suggested capacity release or pro-rata allocation. All agreed that the issue of social programs, including the winter moratorium, must be addressed in an equitable manner.

Procedurally, all of the utilities and some of the marketers supported a phase-in period for implementation of transportation services for the small volume customer. Some suggested this could be accomplished through pilot projects, restructuring proceedings, and working groups. In response to those comments, the Board will modify the tariff filing date to February 1, 1999. The Board will review the tariffs with an April 1, 1999, implementation date as a goal. This will give the utilities an opportunity to prepare tariffs which adequately address the issues. The Board encourages the utilities to collaborate with the Consumer Advocate and other interested parties in preparing tariffs.

In addition, the Board has added a provision which will allow each utility the option of proposing its own plan to unbundle service for its small volume transportation customers. In this way, each utility will have the opportunity to tailor an unbundling plan to its particular market and circumstances. Those utilities that elect to file a plan rather than file tariffs pursuant to 199 IAC 19.14(4)"e" must file a notice of intent on or before September 1, 1998. If a utility decides to file a plan, the dates for filing are as follows: Peoples Natural Gas Company, on or before October 15, 1998; United Cities and MidAmerican, on or before November 15, 1998; and IES and Interstate, on or before December 15, 1998. The Board intends to complete its review of the plans within 90 days after filing. At a minimum, the plans should address all of the issues set out in 199 IAC 19.13(4)"f." Again, the Board encourages the utilities to collaborate with the Consumer Advocate and other interested parties in the preparation of the plans.

These amendments will become effective December 24, 1997.

These amendments are intended to implement Iowa Code sections 476.1 to 476.3 and 476.8.

The following amendments are adopted.

ITEM 1. Amend subrule 19.13(4) by adding new paragraphs "e" and "f" as follows:

e. Small volume transportation service. On or before February 1, 1999, each utility shall file transportation tariffs which reflect the following:

(1) Administrative fees shall be no higher than customer charges;

(2) Telemetering, daily metering, and daily balancing requirements shall not be required unless a utility demonstrates to the board that the particular customer's potential imbalances could affect the integrity of the system;

(3) Means of resolving monthly imbalances shall be described;

(4) Rates, terms, and conditions for marketer's use of the utility's pipeline capacity and storage shall be provided;

(5) Billing arrangements may be negotiated between marketer, utility, and customer. A customer may select from the following three billing patterns: single billing from the marketer with reimbursement of tariff rates to the utility; single billing from the utility which includes the marketer's gas cost; or separate billing by the marketer for gas supply and by the utility for transportation.

f. Optional plan filing. Instead of filing the tariffs required by paragraph 19.13(4)"e," a utility may submit for the board's consideration a plan which sets out specific provisions for implementing transportation service for small volume customers. On or before September 1, 1998, a utility electing this option must file a notice of intent to submit a plan. A utility's plan must, at a minimum, address the following issues:

(1) Customer education;

(2) Load aggregation;

(3) Transition costs;

(4) Code of conduct--affiliates of regulated utility;

(5) Code of conduct--marketer participants;

(6) Obligation to serve;

(7) Social programs;

(8) Uncollectibles;

(9) Customer minimums for participation;

(10) Customer switching;

(11) Telemetering and daily metering;

(12) Balancing;

(13) Rates, terms, and conditions for marketer use of pipeline capacity and storage;

(14) Billing.

ITEM 2. Amend subrule 19.13(6) as follows:

19.13(6) Written notice of risks. The utility must notify its customers contracting for transportation service in writing that unless the customer buys system supply reserve service from the utility, the utility is not obligated to supply gas to the customer. A customer contracting for transportation service with less than 100 percent system reserve shall be notified in writing by the utility of the risks reasonably known at the time of the notice to be associated with transporting gas. The notice must also advise the customer of the nature of any identifiable penalties, any administrative or reconnection costs associated with purchasing available firm or interruptible gas, and how any available gas would be priced by the utility. These risks include, but are not limited to, the risk that the utility may not have firm or interruptible service available if the customer seeks to purchase from the utility, the nature of any identifiable penalties, the nature of any administrative or reconnection costs the customer will incur if the customer seeks firm or interruptible status, and notice of how gas will be priced if the utility has gas available to serve a transportation customer. The notice may be provided through a contract provision, addendum to the contract or separate written instrument. The customer must acknowledge in writing that it has been made aware of the risks and accepts the risks. The notice and the acknowledgment shall be filed with the board within 30 days of execution.

[Filed 10/31/97, effective 12/24/97]

[Published 11/19/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 11/19/97.


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