Iowa Administrative Bulletin

Published Biweekly VOLUME XX NUMBER 14 December 31, 1997 Pages 1221 to 1284

CONTENTS IN THIS ISSUE

Pages 1236 to 1281 include ARC 7723A to ARC 7752A

AGENDA

Administrative rules review committee 1226

Committee actions 1229

ALL AGENCIES

Schedule for rule making 1224

Publication procedures 1225

Agency identification numbers 1233

CITATION OF ADMINISTRATIVE RULES 1232

ARCHITECTURAL EXAMINING BOARD[193B]

Professional Licensing and Regulation Division[193]

COMMERCE DEPARTMENT[181]"umbrella"

Notice, Registration, 2.2, 2.3(2), 5.3, 5.18, 5.24
ARC 7751A 1236

CORRECTIONS DEPARTMENT[201]

Filed, Incarceration fees, 20.10 ARC 7752A 1260

Filed, Inmate telephone commissions,
20.20 ARC 7737A 1260

EDUCATIONAL EXAMINERS BOARD[282]

EDUCATION DEPARTMENT[281]"umbrella"

Notice, Beginning teacher support program,
14.20(17), ch 21 ARC 7730A 1238

HUMAN SERVICES DEPARTMENT[441]

Notice, SSI cost-of-living adjustment increases;
community spouse resources; personal
needs allowance for RCF residents, 51.4(1)
51.7, 52.1, 75.5(3), 75.16(2) ARC 7726A 1241

Notice, Attribution of resources to institutionalized
and community spouse, 75.5(3) ARC 7724A 1242

Filed, Pilot diversion and self-sufficiency grants
programs, 7.5(2), 41.25(9), 41.27(7), ch 47
ARC 7725A 1261

Filed Emergency, SSI cost-of-living adjustment
increases; community spouse resources;
personal needs allowance for RCF residents,
51.4(1), 51.7, 52.1, 75.5(3), 75.16(2)
ARC 7727A
1253

Filed Emergency After Notice, Medicaid coverage
groups; Medicaid policy for deprived child,
75.1, 75.54(3) ARC 7728A 1254

Filed, Elderly waiver program, 83.22(1)"b"
ARC 7729A 1270

INSURANCE DIVISION[191]

COMMERCE DEPARTMENT[181]"umbrella"

Notice, Managed care contracts--"gag" clause,
27.8(1), 40.22(1) ARC 7740A 1242

LABOR SERVICES DIVISION[347]

Filed Emergency After Notice, General industry
safety and health, 10.20 ARC 7731A 1256

NATURAL RESOURCE COMMISSION[571]

NATURAL RESOURCES DEPARTMENT[561]"umbrella"

Notice, Snowmobiles and ATVs, 28.13, 28.14
ARC 7746A 1243

Notice, State parks and recreation areas, 61.2 to
61.5, 61.26 ARC 7747A 1243

Notice, Mussels, 87.1 ARC 7745A 1245

Notice, Nonresident deer hunting, 94.8
ARC 7744A
1246

Filed, Boating speed on Cedar River, 40.45
ARC 7743A
1270

PUBLIC FUNDS--AVAILABILITY

Public Health Department[641]
Abstinence education 1235

PUBLIC HEALTH DEPARTMENT[641]

Notice of Public Funds Availability 1235

Notice Terminated, Organized delivery systems,
201.6(8) ARC 7738A 1246

Notice, Organized delivery systems, 201.6(8)
ARC 7739A 1247

PUBLIC HEARINGS

Summarized list 1230

REVENUE AND FINANCE DEPARTMENT[701]

Notice, S corporations--apportionment of income
for resident shareholders, 50.1 ARC 7733A 1247

Filed, Interest rate--1998, 10.2(17)
ARC 7734A
1271

Filed, Model recordkeeping and retention
regulation, 11.4, 38.3(1), 41.1, 51.3(1),
57.3(1), 67.3, 81.4, 86.3(1), 89.2(4), 103.4
ARC 7735A 1271

SECRETARY OF STATE[721]

Notice, Civil penalties for waste tire haulers,
ch 45 ARC 7741A 1248

Filed, Election forms and voting instructions,
21.800(3), 22.201(2), 22.221 ARC 7742A 1274

SOIL CONSERVATION DIVISION[27]

AGRICULTURE AND LAND STEWARDSHIP
DEPARTMENT[21]"umbrella"

Filed, Financial incentive program for soil
erosion control, 10.32(5), 10.41, 10.42, 10.55,
10.58, 10.60, 10.74(5), 10.81(3), 10.82,
10.84 ARC 7748A 1275

Filed, Water protection practices, 12.50,
12.76, 12.77(1), 12.82 to 12.85 ARC 7749A 1277

Filed, Agricultural drainage wells, ch 30
ARC 7750A 1279

TRANSPORTATION DEPARTMENT[761]

Notice, Motorcycle rider education (MRE),
ch 635 ARC 7736A 1249

TREASURER OF STATE

Notice--Public funds interest rates 1252

TREASURER OF STATE[781]

Notice Terminated, Linked investments for
tomorrow (LIFT), ch 4 ARC 7723A 1252

UTILITIES DIVISION[199]

COMMERCE DEPARTMENT[181]"umbrella"

Filed Emergency After Notice, Universal service--
low income assistance, 22.4, 22.18, 38.8, 39.1,
39.3, 39.4 ARC 7732A 1256

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

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Telephone: (515)242-5120

Schedule for Rule Making
1998

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. 26 '97
Jan. 14 '98
Feb. 3
Feb. 18
Feb. 20
Mar. 11
Apr. 15
July 13
Jan. 9 '98
Jan. 28
Feb. 17
Mar. 4
Mar. 6
Mar. 25
Apr. 29
July 27
Jan. 23
Feb. 11
Mar. 3
Mar. 18
Mar. 20
Apr. 8
May 13
Aug. 10
Feb. 6
Feb. 25
Mar. 17
Apr. 1
Apr. 3
Apr. 22
May 27
Aug. 24
Feb. 20
Mar. 11
Mar. 31
Apr. 15
Apr. 17
May 6
June 10
Sept. 7
Mar. 6
Mar. 25
Apr. 14
Apr. 29
May 1
May 20
June 24
Sept. 21
Mar. 20
Apr. 8
Apr. 28
May 13
May 15
June 3
July 8
Oct. 5
Apr. 3
Apr. 22
May 12
May 27
May 29
June 17
July 22
Oct. 19
Apr. 17
May 6
May 26
June 10
June 12
July 1
Aug. 5
Nov. 2
May 1
May 20
June 9
June 24
June 26
July 15
Aug. 19
Nov. 16
May 15
June 3
June 23
July 8
July 10
July 29
Sept. 2
Nov. 30
May 29
June 17
July 7
July 22
July 24
Aug. 12
Sept. 16
Dec. 14
June 12
July 1
July 21
Aug. 5
Aug. 7
Aug. 26
Sept. 30
Dec. 28
June 26
July 15
Aug. 4
Aug. 19
Aug. 21
Sept. 9
Oct. 14
Jan. 11 '99
July 10
July 29
Aug. 18
Sept. 2
Sept. 4
Sept. 23
Oct. 28
Jan. 25 '99
July 24
Aug. 12
Sept. 1
Sept. 16
Sept. 18
Oct. 7
Nov. 11
Feb. 8 '99
Aug. 7
Aug. 26
Sept. 15
Sept. 30
Oct. 2
Oct 21
Nov. 25
Feb. 22 '99
Aug. 21
Sept. 9
Sept. 29
Oct. 14
Oct. 16
Nov. 4
Dec. 9
Mar. 8 '99
Sept. 4
Sept. 23
Oct. 13
Oct. 28
Oct. 30
Nov. 18
Dec. 23
Mar. 22 '99
Sept. 18
Oct. 7
Oct. 27
Nov. 11
Nov. 13
Dec. 2
Jan. 6 '99
Apr. 5 '99
Oct. 2
Oct. 21
Nov. 10
Nov. 25
Nov. 27
Dec. 16
Jan. 20 '99
Apr. 19 '99
Oct. 16
Nov. 4
Nov. 24
Dec. 9
Dec. 11
Dec. 30
Feb. 3 '99
May 3 '99
Oct. 30
Nov. 18
Dec. 8
Dec. 23
Dec. 25
Jan. 13 '99
Feb. 17 '99
May 17 '99
Nov. 13
Dec. 2
Dec. 22
Jan. 6 '99
Jan. 8 '99
Jan. 27 '99
Mar. 3 '99
May 31 '99
Nov. 27
Dec. 16
Jan. 5 '99
Jan 20 '99
Jan. 22 '99
Feb. 10 '99
Mar. 17 '99
June 14 '99
Dec. 11
Dec. 30
Jan. 19 '99
Feb. 3 '99
Feb. 5 '99
Feb. 24 '99
Mar. 31 '99
June 28 '99
Dec. 25
Jan. 13 '99
Feb. 2 '99
Feb. 17 '99
Feb. 19 '99
Mar. 10 '99
Apr. 14 '99
July 12 '99
Jan. 8 '99
Jan. 27 '99
Feb. 16 '99
Mar. 3 '99
Mar. 5 '99
Mar. 24 '99
Apr. 28 '99
July 26 '99

PRINTING SCHEDULE FOR IAB


ISSUE NUMBER
SUBMISSION DEADLINE
ISSUE DATE
16
Friday, January 9, 1998
January 28, 1998
17
Friday, January 23, 1998
February 11, 1998
18
Friday, February 6, 1998
February 25, 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.

AGENDA

The Administrative Rules Review Committee will hold its regular, statutory meeting on Tuesday, January 6, 1998, at10 a.m. and Wednesday, January 7, 1998, at 9 a.m. in Room 116, State Capitol. The following rules will be reviewed:

Bulletin

ARCHITECTURAL EXAMINING BOARD[193B]

Professional Licensing and Regulation Division[193]

COMMERCE DEPARTMENT[181]"umbrella"

Registration, 2.2(1) to 2.2(9), 2.3(2), 5.3, 5.18, 5.24, Notice ARC 7751A 12/31/97

COLLEGE STUDENT AID COMMISSION[283]

EDUCATION DEPARTMENT[281]"umbrella"

Commission address, 1.2(1), Filed ARC 7719A 12/17/97

Vocational-technical tuition grant program, 13.1, 13.1(2), Filed ARC 7720A 12/17/97

CORRECTIONS DEPARTMENT[201]

Incarceration fees, 20.10, Filed ARC 7752A 12/31/97

Inmate telephone commissions, 20.20, Filed ARC 7737A 12/31/97

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

CDBG, 23.11, Notice ARC 7704A 12/17/97

Housing fund, ch 25, Notice ARC 7705A 12/17/97

EDUCATIONAL EXAMINERS BOARD[282]

EDUCATION DEPARTMENT[281]"umbrella"

Mentor endorsement; beginning teacher support program, 14.20(17), ch 21, Notice ARC 7730A 12/31/97

ELDER AFFAIRS DEPARTMENT[321]

Representative payee program and bill payer program, ch 23 title, 23.1 to 23.4, Notice ARC 7718A 12/17/97

ENGINEERING AND LAND SURVEYING EXAMINING BOARD[193C]

Professional Licensing and Regulation Division[193]

COMMERCE DEPARTMENT[181]"umbrella"

Application deadlines, examinations, oral interviews, minimum standards for land surveying,
1.4, 1.4(4)"c" and "e" to "h," 1.4(5)"c," 2.1, 2.2, 2.5 to 2.7, Filed ARC 7711A 12/17/97

Fees and service charges, 1.9(7), Notice ARC 7712A 12/17/97

ENVIRONMENTAL PROTECTION COMMISSION[567]

NATURAL RESOURCES DEPARTMENT[561]"umbrella"

Animal feeding operations, 65.1, 65.2(10)"g," 65.6(1)"b," 65.7, 65.8(1)"f," "g" and "i," 65.15(1)"b" and "c,"
65.15(2)"c" and "d," 65.15(3)"b," 65.15(6), 65.15(7)"a" to "c," 65.15(12), 65.15(14) to 65.15(16),
65.16(1), 65.17, Filed ARC 7713A 12/17/97

HUMAN SERVICES DEPARTMENT[441]

Pilot diversion and self-sufficiency grants programs, 7.5(2)"f," 41.25(9), 41.27(7)"ai," ch 47, Filed ARC 7725A 12/31/97

SSI cost of living increase, community spouse resources, personal needs allowance, 51.4(1), 51.7, 52.1(1), 52.1(2),
52.1(3)"a"(2), 75.5(3)"d," 75.16(2)"d"(3), Notice ARC 7726A, also Filed Emergency ARC 7727A 12/31/97

Medicaid coverage groups, deprived child, 75.1(34)"a," 75.1(36) to 75.1(38),
75.54(3)"c," Filed Emergency After Notice ARC 7728A 12/31/97

Attribution of resources to institutionalized spouse and community spouse, 75.5(3)"f"(7), Notice ARC 7724A 12/31/97

Elderly waiver program--addition of Allamakee and O'Brien counties, 83.22(1)"b," Filed ARC 7729A 12/31/97

INSURANCE DIVISION[191]

COMMERCE DEPARTMENT[181]"umbrella"

Prohibition of "gag" clause in managed care contracts, 27.8(1), 40.22(1), Notice ARC 7740A 12/31/97

NASAA statements of policy, rescind 50.31, 50.32, 50.36 to 50.38, and 50.42; adopt 50.57(10) to 50.57(19),
Notice ARC 7710A 12/17/97

LABOR SERVICES DIVISION[347]

General industry safety and health, 10.20, Filed Emergency After Notice ARC 7731A 12/31/97

MEDICAL EXAMINERS BOARD[653]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Examination fee, 11.31(14), Filed ARC 7722A 12/17/97

NATURAL RESOURCE COMMISSION[571]

NATURAL RESOURCES DEPARTMENT[561] "umbrella"

Snowmobile and all-terrain vehicle registration cost-share program, 28.13(2)"a,"
28.13(3), 28.14(2), Notice ARC 7746A 12/31/97

Zoning of the Cedar River, 40.45, Filed ARC 7743A 12/31/97

State parks and recreation areas, 61.2, 61.3(1)"j," 61.3(3), 61.3(5)"b," 61.4(1)"b," 61.5(10)"g," 61.5(11)"a,"
61.5(14), 61.26, Notice ARC 7747A 12/31/97

Washboard mussels, 87.1(2), 87.1(3), Notice ARC 7745A 12/31/97

Application for nonresident deer hunting license, 94.8, Notice ARC 7744A 12/31/97

PHARMACY EXAMINERS BOARD[657]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Licensure by reciprocity, 5.4, Filed ARC 7701A 12/17/97

Transfer of prescription drug order information between pharmacies, emergency/first dose drug supply,
8.2(2), 8.2(3), 8.32, Filed ARC 7702A 12/17/97

Schedule II controlled substances, 10.13, 10.13(4), 10.13(6), 10.20(1) to 10.20(4), Filed ARC 7703A 12/17/97

PROFESSIONAL LICENSURE DIVISION[645]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Physical therapy, 200.1, 200.3(3), 200.4(3), 200.5, 200.9(1) to 200.9(4), 200.9(10), 200.10(3), 200.12(1),
200.12(2), 200.12(3)"b," 200.18, 200.19, 200.19(1), 200.19(2)"b," 200.19(6) to 200.19(12), 200.20 to 200.26,
Notice ARC 7714A 12/17/97

PUBLIC HEALTH DEPARTMENT[641]

Prohibition of restrictions on communications by organized delivery systems,
201.6(8), Notice ARC 7286A Terminated ARC 7738A 12/31/97

Prohibition of restrictions on communications by organized delivery systems, 201.6(8), Notice ARC 7739A 12/31/97

PUBLIC SAFETY DEPARTMENT[661]

Forms for applications and permits to acquire and carry weapons, 4.1, 4.2, 4.4(1), 4.4(2), 4.4(4), 4.4(5),
4.4(7), 4.4(8), 4.5(1)"a" and "b," 4.5(3), 4.6(3), 4.6(5), Notice ARC 7716A 12/17/97

State of Iowa building code, rescind Exception 2 of 16.626, Filed ARC 7717A 12/17/97

RACING AND GAMING COMMISSION[491]

INSPECTIONS AND APPEALS DEPARTMENT[481]"umbrella"

Commission, records, alcohol and drug testing, failure to pay child support, labor organization registration,
wide area progressive systems, 1.6, 1.7, 4.30 to 4.34, 7.9(4)"a," 10.2(6)"a"(1), 12.10(1), 13.1, 13.6(5),
13.6(7), 13.11 to 13.25, 22.18(1), 26.17(7), Notice ARC 7707A 12/17/97

REGENTS BOARD[681]

University of Iowa traffic and parking, 4.2, 4.3(1), 4.3(3), 4.3(4), 4.3(7), 4.3(8), 4.4, 4.5, 4.5(3),
4.5(6), 4.5(9), 4.6, 4.6(7), 4.6(8), 4.7, Filed ARC 7709A 12/17/97

REVENUE AND FINANCE DEPARTMENT[701]

Interest for calendar year 1998, 10.2(17), Filed ARC 7734A 12/31/97

Adoption of model recordkeeping and retention regulation, 11.4(4), 11.4(5), 38.3(1), 41.1, 51.3(1),
57.3(1), 67.3, 81.4, 86.3(1), 89.2(4), 103.4, Filed ARC 7735A 12/31/97

Apportionment of income for resident shareholders of S corporations, 50.1, Notice ARC 7733A 12/31/97

SECRETARY OF STATE[721]

Tax, tabulating devices, sample ballots and instructions, 21.800(3)"b"(1), 22.201(2), 22.221, Filed ARC 7742A 12/31/97

Civil penalties for waste tire haulers, ch 45, Notice ARC 7741A 12/31/97

SOIL CONSERVATION DIVISION[27]

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]"umbrella"

Financial incentive program for soil erosion control, 10.32(5), 10.41, 10.41(1), 10.42, 10.55,
10.58, 10.60(1), 10.60(8), 10.60(9), 10.74(5)"a," 10.81(3)"d," 10.82(2), 10.82(3)"a" and "k," 10.84,
Filed ARC 7748A 12/31/97

Water protection practices, 12.50, 12.76, 12.77(1), 12.82, 12.82(6) to 12.82(9), 12.83, 12.84(4),
12.84(6) to 12.84(9), 12.85, Filed ARC 7749A 12/31/97

Agricultural drainage wells--alternative drainage system assistance program, ch 30, Filed ARC 7750A 12/31/97

TRANSPORTATION DEPARTMENT[761]

Special registration plates, ch 401, Filed ARC 7708A 12/17/97

Driver's privacy protection, 415.2, 415.4(6), 600.4(8), 600.16, 601.1(6), 604.40(1)"b," 605.5(1), 605.5(5),
605.7, 605.11(2)"f," 605.26(2)"c" and "h," 611.2, 611.4(4), 615.1, 615.9(1)"a," 615.9(3), 615.25(1),
615.38(1)"a," 615.40, 615.45(4), 620.3(3)"c," 620.4(4), 620.10, 630.2(1), 630.2(2), Notice ARC 7706A 12/17/97

Motorcycle rider education (MRE), ch 635, Notice ARC 7736A 12/31/97

TREASURER OF STATE[781]

Linked investments for tomorrow (LIFT), ch 4, Notice ARC 7397A Terminated ARC 7723A 12/31/97

Deposit and security of public funds in credit unions, ch 14, Notice ARC 7721A 12/17/97

UTILITIES DIVISION[199]

COMMERCE DEPARTMENT[181]"umbrella"

Net billing, 15.11(5), Notice ARC 7715A 12/17/97

Universal service--low-income assistance, 22.4(2), 22.4(2)"a," 22.4(3)"c"(4), 22.4(3)"e," 22.4(7)"i," 22.18, 38.8,
39.1, 39.3, 39.4, Filed Emergency After Notice ARC 7732A 12/31/97

ADMINISTRATIVE RULES REVIEW COMMITTEE MEMBERS

Regular statutory meetings are held the second Tuesday of each month at the seat of government as provided in Iowa Code section 17A.8. A special meeting may be called by the Chair at any place in the state and at any time.

EDITOR'S NOTE: Terms ending April 30, 1999.

Senator H. Kay Hedge, Chairperson

3208 335th Street

Fremont, Iowa 52561

Representative Christopher Rants, Vice-Chairperson

2740 South Glass

Sioux City, Iowa 51106

Senator Merlin E. Bartz

2081 410th Street

Grafton, Iowa 50440

Representative Danny Carroll

244 400th Avenue

Grinnell, Iowa 50112

Senator John P. Kibbie

4285 440th Avenue

Emmetsburg, Iowa 50536

Representative Minnette Doderer

2008 Dunlap Court

Iowa City, Iowa 52245

Senator William Palmer

1002 Lakeview Drive

Ankeny, Iowa 50021

Representative Janet Metcalf

12954 NW 29th Drive

Des Moines, Iowa 50325

Senator Sheldon Rittmer

3539 230th Street

DeWitt, Iowa 52742

Representative Keith Weigel

315 W. Main, P.O. Box 189

New Hampton, Iowa 50659

Joseph A. Royce

Legal Counsel

Capitol, Room 116A

Des Moines, Iowa 50319

Telephone (515)281-3084

Fax (515)281-5995

Jackie Van Ekeren Romp

Administrative Rules Coordinator

Governor's Ex Officio Representative

Capitol, Room 11

Des Moines, Iowa 50319

Telephone (515)281-6331

Fax (515)281-6611

ADMINISTRATIVE RULES REVIEW COMMITTEE ACTIONS
JANUARY 1997 THROUGH DECEMBER 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.)
PERSONNEL DEPARTMENT[581]
Deferred compensation, 15.6, 15.13, ARC 7464A, IAB 8/27/97, ARRC meeting 11/10/97.
Objection filed 11/26/97 (Pursuant to Iowa Code section 17A.4(2), the rule ceases to be effective May 25, 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
ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]
Required wages under the CEBA program, ARC 7647A, IAB 11/19/97, ARRC meeting 12/9/97
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
NATURAL RESOURCE COMMISSION[571]
Deer depredation, 106.11, ARC 7574A, IAB 10/8/97, ARRC meeting 11/10/97
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
TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION[751]
Access to facilities, dial-up from remote locations, ARC 7578A, IAB 10/8/97, ARRC meeting 11/10/97
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
Enhanced penalty for OWI based on past record, H.F. 707, ARRC meeting 12/9/97
UTILITIES DIVISION[199]
Natural gas transportation, 19.13(4)"e" and "f," 19.13(6), ARRC meeting 12/9/97
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
Approved proposed budget for FY '98-99, ARRC meeting 11/10/97

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.




EDUCATIONAL EXAMINERS BOARD[282]



Mentor endorsement; beginning
teacher support program,
14.20(17), ch 21
IAB 12/31/97 ARC 7730A
Conference Room 3 North
Third Floor
Grimes State Office Bldg.
Des Moines, Iowa
January 28, 1998
10 a.m.
ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]


Housing set-aside program,
23.11
IAB 12/17/97 ARC 7704A
Main Conference Room
200 E. Grand Ave.
Des Moines, Iowa
January 6, 1998
2:30 p.m.
Housing fund,
ch 25
IAB 12/17/97 ARC 7705A
Main Conference Room
200 E. Grand Ave.
Des Moines, Iowa
January 6, 1998
2:30 p.m.
ELDER AFFAIRS DEPARTMENT[321]


Representative payee program (RPP)
and bill payer program (BPP),
23.1 to 23.4
IAB 12/17/97 ARC 7718A
Conference Room--3rd Floor
Clemens Bldg.
200 Tenth St.
Des Moines, Iowa
January 6, 1998
10 a.m.
NATURAL RESOURCE COMMISSION[571]


Snowmobiles and ATVs,
28.13, 28.14(2)
IAB 12/31/97 ARC 7746A
Conference Room--5th Floor East
Wallace State Office Bldg.
Des Moines, Iowa
January 20, 1998
1 p.m.
State parks and recreation areas,
61.2, 61.3, 61.4(1), 61.5, 61.26
IAB 12/31/97 ARC 7747A
Conference Room--5th Floor East
Wallace State Office Bldg.
Des Moines, Iowa
January 20, 1998
1 p.m.
Mussel regulations,
87.1
IAB 12/31/97 ARC 7745A
Blakes Hall
University of Dubuque
2000 University Ave.
Dubuque, Iowa
January 28, 1998
7 p.m.

Public Library
304 Iowa Ave.
Muscatine, Iowa
January 29, 1998
7 p.m.
Nonresident deer hunting,
94.8
IAB 12/31/97 ARC 7744A
Conference Room--4th Floor East
Wallace State Office Bldg.
Des Moines, Iowa
January 23, 1998
1 p.m.
PROFESSIONAL LICENSURE DIVISION[645]


Physical therapy examiners,
200.1, 200.3(3), 200.4(3), 200.5,
200.9, 200.10(3), 200.12,
200.18 to 200.26
IAB 12/17/97 ARC 7714A
Conference Room--4th Floor
Lucas State Office Bldg.
Des Moines, Iowa
January 6, 1998
11 a.m. to 1 p.m.
PUBLIC HEALTH DEPARTMENT[641]


Organized delivery systems,
201.6(8)
IAB 12/31/97 ARC 7739A
Conference Room--4th Floor
Lucas State Office Bldg.
Des Moines, Iowa
January 20, 1998
9 a.m.
PUBLIC SAFETY DEPARTMENT[661]


Weapons,
4.1, 4.2, 4.4 to 4.6
IAB 12/17/97 ARC 7716A
Conference Room--3rd Floor
Wallace State Office Bldg.
Des Moines, Iowa
January 22, 1998
9:30 a.m.
RACING AND GAMING COMMISSION[491]


General amendments,
1.6, 1.7, 4.30 to 4.34, 7.9(4),
10.2(6),12.10(1), 13.1, 13.6,
13.11 to 13.25, 22.18(1), 26.17(7)
IAB 12/17/97 ARC 7707A
717 E. Court
Suite B
Des Moines, Iowa
January 6, 1998
9 a.m.
SECRETARY OF STATE[721]


Civil penalties for waste tire haulers,
ch 45
IAB 12/31/97 ARC 7741A
Office of Secretary of State
Second Floor
Hoover State Office Bldg.
Des Moines, Iowa
January 20, 1998
1:30 p.m.
TRANSPORTATION DEPARTMENT[761]


General amendments,
415.2, 415.4(6), 600.4, 600.16,
601.1(6), 604.40(1), 605.5, 605.7,
605.11(2), 605.26(2), 611.2, 611.4(4),
615.1, 615.9, 615.15, 615.23,
615.25, 615.38(1), 615.40, 615.45,
620.3(3), 620.4(4), 620.10, 630.2
IAB 12/17/97 ARC 7706A
Conference Room--Lower Level
Park Fair Mall
100 Euclid Ave.
Des Moines, Iowa
January 8, 1998
10 a.m.
(If requested)
Motorcycle rider education (MRE),
ch 635
IAB 12/31/97 ARC 7736A
Conference Room--Lower Level
Park Fair Mall
100 Euclid Ave.
Des Moines, Iowa
January 22, 1998
10 a.m.
(If requested)
TREASURER OF STATE[781]


Deposit and security of public funds
in credit unions,
ch 14
IAB 12/17/97 ARC 7721A
Conference Room--1st Floor North
Hoover State Office Bldg.
Des Moines, Iowa
January 9, 1998
1 p.m.
UTILITIES DIVISION[199]


Net billing,
15.11(5)
IAB 12/17/97 ARC 7715A
Hearing Room--1st Floor
Lucas State Office Bldg.
Des Moines, Iowa
January 12, 1998
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]

Insurance Division[191]

Professional Licensing and Regulation Division[193]

Accountancy Examining Board[193A]

Architectural Examining Board[193B]

Engineering and Land Surveying Examining Board[193C]

Landscape Architectural Examining Board[193D]

Real Estate Commission[193E]

Real Estate Appraiser Examining Board[193F]

Savings and Loan Division[197]

Utilities Division[199]

CORRECTIONS DEPARTMENT[201]

Parole Board[205]

CULTURAL AFFAIRS DEPARTMENT[221]

Arts Division[222]

Historical Division[223]

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

City Development Board[263]

Iowa Finance Authority[265]

EDUCATION DEPARTMENT[281]

Educational Examiners Board[282]

College Student Aid Commission[283]

Higher Education Loan Authority[284]

Iowa Advance Funding Authority[285]

Libraries and Information Services Division[286]

Public Broadcasting Division[288]

School Budget Review Committee[289]

EGG COUNCIL[301]

ELDER AFFAIRS DEPARTMENT[321]

EMPLOYMENT SERVICES DEPARTMENT[341]

Job Service Division[345]

Labor Services Division[347]

ETHICS AND CAMPAIGN DISCLOSURE BOARD, IOWA[351]

EXECUTIVE COUNCIL[361]

FAIR BOARD[371]

GENERAL SERVICES DEPARTMENT[401]

HUMAN INVESTMENT COUNCIL[417]

HUMAN RIGHTS DEPARTMENT[421]

Community Action Agencies Division[427]

Criminal and Juvenile Justice Planning Division[428]

Deaf Services Division[429]

Persons With Disabilities Division[431]

Latino Affairs Division[433]

Status of Blacks Division[434]

Status of Women Division[435]

HUMAN SERVICES DEPARTMENT[441]

INSPECTIONS AND APPEALS DEPARTMENT[481]

Employment Appeal Board[486]

Foster Care Review Board[489]

Racing and Gaming Commission[491]

State Public Defender[493]

INTERNATIONAL NETWORK ON TRADE (INTERNET)[497]

LAW ENFORCEMENT ACADEMY[501]

LIVESTOCK HEALTH ADVISORY COUNCIL[521]

MANAGEMENT DEPARTMENT[541]

Appeal Board, State[543]

City Finance Committee[545]

County Finance Committee[547]

NARCOTICS ENFORCEMENT ADVISORY COUNCIL[551]

NATIONAL AND COMMUNITY SERVICE, IOWA COMMISSION ON[555]

NATURAL RESOURCES DEPARTMENT[561]

Energy and Geological Resources Division[565]

Environmental Protection Commission[567]

Natural Resource Commission[571]

Preserves, State Advisory Board[575]

PERSONNEL DEPARTMENT[581]

PETROLEUM UNDERGROUND STORAGE TANK FUND
BOARD, IOWA COMPREHENSIVE[591]

PREVENTION OF DISABILITIES POLICY COUNCIL[597]

PUBLIC DEFENSE DEPARTMENT[601]

Emergency Management Division[605]

Military Division[611]

PUBLIC EMPLOYMENT RELATIONS BOARD[621]

PUBLIC HEALTH DEPARTMENT[641]

Substance Abuse Commission[643]

Professional Licensure Division[645]

Dental Examiners Board[650]

Medical Examiners Board[653]

Nursing Board[655]

Pharmacy Examiners Board[657]

PUBLIC SAFETY DEPARTMENT[661]

RECORDS COMMISSION[671]

REGENTS BOARD[681]

Archaeologist[685]

REVENUE AND FINANCE DEPARTMENT[701]

Lottery Division[705]

SECRETARY OF STATE[721]

SEED CAPITAL CORPORATION, IOWA[727]

SESQUICENTENNIAL COMMISSION, IOWA STATEHOOD[731]

SHEEP AND WOOL PROMOTION BOARD, IOWA[741]

TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION, IOWA[751]

TRANSPORTATION DEPARTMENT[761]

Railway Finance Authority[765]

TREASURER OF STATE[781]

UNIFORM STATE LAWS COMMISSION[791]

VETERANS AFFAIRS COMMISSION[801]

VETERINARY MEDICINE BOARD[811]

VOTER REGISTRATION COMMISSION[821]

WALLACE TECHNOLOGY TRANSFER FOUNDATION[851]

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Industrial Services Division[873]

Labor Services Division[875]

Workforce Development Board and
Workforce Development Center Administration Division[877]

NOTICES

ARC 7751A

ARCHITECTURAL EXAMINING BOARD[193B]

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 section 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 section 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 544A.29, the Iowa Architectural Examining Board hereby gives Notice of Intended Action to amend Chapter 2, "Registration," and Chapter 5, "Disciplinary Action," Iowa Administrative Code.

Amendments to Chapter 2 update the procedures for reinstatement of a lapsed registration and revise the rules on admittance to the registration examination and more clearly reflect the required training and comply with current model guidelines suggested by the National Council of Architecture Registration Boards.

Amendments to Chapter 5 clarify the procedures to be followed to reinstate a registration which has been revoked or suspended by the Board. Additionally, language is being changed to reflect the current Iowa Code citations rather than the 1996 Iowa Acts.

Consideration will be given to all written suggestions or comments on the proposed amendments received on or before January 20, 1998. Such written materials should be directed to Glenda Loving, Iowa Architectural Examining Board, 1918 S.E. Hulsizer, Ankeny, Iowa 50021, or faxed to (515)281-7411.

E-mail may be sent to glenda.loving@comm7.state.ia.us.

These amendments are intended to implement Iowa Code chapters 17A, 252J, 272C, and 544A.

The following amendments are proposed.

ITEM 1. Amend subrules 2.2(1) and 2.2(2) as follows:

2.2(1) All eligibility requirements shall have been verified by the council record and attained satisfied in accordance with Appendix "A" and Appendix "B" to Circular of Information No.1, 1995-1996, except training standards shall be limited only to the requirements of Appendix "B," "Training Requirements for Intern-Architect Development Program (IDP) Applicants for the "NCARB Certification Handbook for Interns and Architects, 1997-1998." Where an equivalent to an NAAB-accredited professional degree in architecture is attained, the requirements of NCARB Circular of Information No. 3, 1995-1996, shall be satisfied. Candidates requesting registration in Iowa from Canada must meet the requirements of NCARB Circular of Information No. 1, Appendix "C."

2.2(2) Effective January 1, 1997, IDP (Intern Development Program) training must be recorded and validated as credit is earned, except 300 value units (approximately one year) of credit are allowed prior to establishing and maintaining a council record. Documentation of training standards shall be submitted on "IDP report" forms, published by NCARB, verified by signatures of registered architects serving as (a) a professional sponsor who has been the intern-architect's employer or who has been an architect in the firm who has substantial responsibility and has been assigned by the firm to act in this capacity; and (b) a professional advisor who is a registered architect, usually outside the intern's firm, with whom the intern has met for guidance and evaluation of progress. The report form shall be completed to demonstrate attainment of an aggregate of the minimum number of value units in each training area.

ITEM 2. Add new subrules 2.2(3) through 2.2(9) as follows:

2.2(3) Training. An applicant must satisfy the IDP training requirements described in this subrule and earn a total of 700 training units. One training unit equals eight hours of acceptable activity in an acceptable work setting.

The following chart lists the training categories, training areas and minimum training units required.

IDP TRAINING REQUIREMENTS





Design and Construction Documents




Minimum Training Units




1.
Programming


10
2.
Site and Environmental Analysis


10
3.
Schematic Design


15
4.
Engineering Systems Coordination


15
5.
Building Cost Analysis


10
6.
Code Research


15
7.
Design Development


40
8.
Construction Documents


135
9.
Specifications and Materials Research


15
10.
Documents Checking and Coordination


10
Elective Units In This Category



75
Minimum Training Units Required



350
Construction and Administration




Minimum Training Units




11.
Bidding and Contract Negotiation


10
12.
Construction Phase--Office


15
13.
Construction Phase--Observation


15
Elective Units In This Category



30
Minimum Training Units Required



70
Management




Minimum Training Units




14.
Project Management


15
15.
Office Management


10
Elective Units In This Category



10
Minimum Training Units Required



35
Related Activities




Minimum Training Units




16.
Professional and Community Service


10
17.
Teaching, Research, Postprofessional
Degree, Other Related Activities


0
Minimum Training Units Required



10
Minimum Training Units Required--
All Categories



465
Elective Units From Any Category (including supplementary education)



235
TOTAL TRAINING UNITS REQUIRED



700
2.2(4) An applicant may earn training units required in subrule 2.2(3) in the following work settings:

a. As an employee of an organization when working under the direct supervision and responsible charge of a registered architect and when the architectural practice in which the applicant works is (1) in the charge of an individual practicing as a principal and (2) encompasses the comprehensive practice of architecture including each of the categories outlined in the IDP training requirements listed in subrule 2.2(3).

b. As an employee of any organization, when the experience is under the direct supervision and responsible charge of a registered architect but the practice in which the applicant works does not encompass the comprehensive practice of architecture including each of the categories outlined in the IDP training requirements.

c. As an employee of a firm engaged in the practice of architecture outside the U.S. or Canada if the applicant is under the direct supervision and responsible charge of an individual practicing architecture who is neither registered in a U.S. jurisdiction nor in a Canadian jurisdiction.

d. Training directly related to architecture when under the direct supervision and responsible charge of a registered landscape architect or a licensed engineer (practicing as a structural, civil, mechanical or electrical engineer in the field of building construction).

e. Training in settings other than those outlined in subrule 2.2(4), paragraphs "a" through "d," involving the design or construction of the built environment (such as analysis of existing buildings, planning, programming, design of interior space, review of technical submissions, engaging in building construction activities, and the like) when the applicant is under the direct supervision and responsible charge of a person experienced in the activity.

f. A postprofessional degree in architecture, or full-time teaching or research in an NAAB-accredited program.

2.2(5) The following are limitations on training units an applicant may earn in each work setting listed in subrule 2.2(4):

a. To satisfy the design and construction documents requirement, training units (including units earned from supplementary education) must be earned in the work settings described in subrule 2.2(4), paragraph "a," "b," or "c."

b. Training units earned in the work setting described in subrule 2.2(4), paragraph "b," may be used to satisfy any of the IDP training requirements, but no more than 465 units may be earned in that work setting.

c. No more than 235 training units may be earned in the work setting described in subrule 2.2(4), paragraph "c." No credit will be granted for foreign training other than under the direct supervision or responsible charge of an individual practicing architecture.

d. Training units earned in the work setting described in subrule 2.2(4), paragraph "d," may only be used to satisfy the requirements of construction administration, management and related activities, but no more than 235 training units may be earned in that work setting.

e. Training units earned in the work setting described in subrule 2.2(4), paragraph "e," may only be used to satisfy management and related activities, but no more than 117 units may be earned in that work setting.

f. Training units earned for full-time teaching and research in the work setting described in subrule 2.2(4), paragraph "f," may only be used to satisfy related activities requirements. The subjects taught or researched must be directly related to architecture.

g. A postprofessional degree in architecture qualifies for 235 training units under related activities. Credit hours must be subjects evaluated by NCARB as directly related to architecture.

h. An applicant may earn training units by completing one or more supplementary education programs approved by NCARB. Credit allowed for such programs shall be in accordance with guidelines established by NCARB. Supplementary education may not be used to satisfy the minimum training units required in specified training areas. Supplementary education may be used to satisfy elective units where allowed under the general training categories of the IDP training requirement. Total units earned in supplementary education may not exceed 235 units in aggregate.

2.2(6) Training units may be earned by an applicant only after satisfactory completion of any one of the following:

a. Three years in an NAAB-accredited professional degree program;

b. The third year of a four-year preprofessional degree program in architecture accepted for direct entry to a two-year NAAB-accredited professional master's program;

c. One year in an NAAB-accredited professional master's program following receipt of a nonprofessional degree;

d. Ninety-six semester credit hours as evaluated by Educational Credential Evaluators in accordance with the NCARB education standard, of which no more than 60 hours can be in the general education category; or

e. Five education credits earned in areas outlined in the NCARB education standard. The five subject areas include general education; history, human behavior and environment; design; technical systems; and practice.

Thirty-two semester credit hours or 48 quarter hours equal one year in an academic program.

2.2(7) To earn training units in any work setting other than described in subrule 2.2(4), paragraph "f," (a postprofessional degree or teaching or research), an applicant must work at least 35 hours per week for a minimum of 10 consecutive weeks, or work at least 20 hours per week for 6 or more consecutive months. To earn training units for teaching or research, an applicant must be employed on a full-time basis.

2.2(8) Experience used to meet educational requirements may not be used to earn training units.

2.2(9) Every training activity, the setting in which it took place, and the time devoted to the activity must be verified by a responsible person who supervised the activity.

a. If the person verifying the training activity is not a registered architect, the work setting will not qualify under subrule 2.2(4), paragraph "a" or "b."

b. If the person verifying the training activity is not a practicing architect, the work setting will not qualify under subrule 2.2(4), paragraph "c."

c. If the person verifying the training activity is not a licensed engineer or a registered landscape architect, the work setting will not qualify under subrule 2.2(4), paragraph "d."

d. Under no circumstances may applicants verify their own training.

ITEM 3. Amend subrule 2.3(2) as follows:

2.3(2) When maintenance of competency has been satisfied and payment of the registration fee and reinstatement fee has been made, the certificate can be registered and a new of registration number will be issued reinstated.

ITEM 4. Amend rule 193B--5.3(544A,272C) as follows:

193B--5.3(544A,272C) Peer investigative committee. A peer investigative committee may be appointed by the president to investigate a complaint. The committee will consist of two or three one or more architects, serve at the discretion of the president, and be registered to practice in Iowa for at least five years, and residing in Iowa. The committee will review and determine the facts of the complaint and make a report to the board in a timely manner. The board may contract with the department of inspections and appeals to conduct an investigation in addition to or in lieu of the peer investigative committee.

ITEM 5. Rescind rule 193B--5.18(544A,272C) and replace with the following new rule:

193B--5.18(544A,272C) Reinstatement. Any person whose registration has been revoked or suspended by the board may apply to the board for reinstatement in accordance with the terms and conditions of the order of revocation or suspension.

5.18(1) If the order of revocation or suspension did not establish terms and conditions upon which reinstatement might occur, or if the registration was voluntarily surrendered, an initial application for reinstatement may not be made until one year has elapsed from the date of the secretary's order or the date of voluntary surrender.

5.18(2) All proceedings for reinstatement shall be initiated by the respondent who shall file with the board an application for reinstatement of the respondent's registration. Such application shall be docketed in the original case in which the registration was revoked, suspended, or relinquished. All proceedings upon the petition for reinstatement, including the matters preliminary and ancillary thereto, shall be subject to the same rules of procedure as other cases before the board.

5.18(3) An application for reinstatement shall allege facts which, if established, will be sufficient to enable the board to determine that the basis of revocation or suspension of the respondent's registration no longer exists and that it will be in the public interest for the registration to be reinstated. The burden of proof to establish such facts shall be on the respondent.

5.18(4) An order of reinstatement shall be based upon a decision which incorporates findings of fact and conclusions of law and must be based upon the affirmative vote of not fewer than five members of the board. This order will be published as provided for in rule 5.19(544A,272C).

ITEM 6. Amend rule 193B--5.24(544A), introductory paragraph, and subrules 5.24(1) and 5.24(5), introductory paragraphs, as follows:

193B--5.24(544A) Civil penalties against nonregistrant. The board may impose civil penalties by order against a person who is not registered as an architect pursuant to Iowa Code chapter 544A based on the unlawful practices specified in 1996 Iowa Acts, chapter 1055, section 3 Iowa Code section 544A.15(3). In addition to the procedures set forth in 1996 Iowa Acts, chapter 1055, section 3 Iowa Code section 544A.15(3), this rule shall apply.

5.24(1) The notice of the board's intent to impose a civil penalty required by 1996 Iowa Acts, chapter 1055, section 3, Iowa Code section 544A.15(3) shall be served upon the nonregistrant by restricted certified mail, return receipt requested, or personal service in accordance with Rules of Civil Procedure 56.1. Alternatively, the nonregistrant may accept service personally or through authorized counsel. The notice shall include the following:

5.24(5) In addition to the factors set forth in 1996 Iowa Acts, chapter 1055, section 3 Iowa Code section 544A.15(3), the board may consider the following when determining the amount of civil penalty to impose, if any:

ARC 7730A

EDUCATIONAL EXAMINERS BOARD[282]

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 section 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 section 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 272.2, the Board of Educational Examiners hereby gives Notice of Intended Action to amend Chapter 14, "Issuance of Practitioners' Licenses and Endorsements," and to adopt Chapter 21, "Beginning Teacher Support Program," Iowa Administrative Code.

Proposed subrule 14.20(17) adds a new endorsement for mentors who assist beginning practitioners in approved induction programs.

New Chapter 14 defines an approved induction program for beginning practitioners. It includes the definitions related to the program, the operation of the program at the local level, the requirements for programs, the selection of mentors to serve in the programs, and the program for beginning practitioners.

Any interested person may make written suggestions or comments on the proposed amendments by 4:30 p.m. on January 30, 1998. Written comments should be sent to Dr. Anne Kruse, Executive Director, Board of Educational Examiners, Grimes State Office Building, Des Moines, Iowa 50319- 0147; fax (515)281-7669.

A public hearing will be conducted on January 28, 1998, at 10 a.m. in Conference Room 3 North, Third Floor, Grimes State Office Building, E. 14th and Grand Avenue, Des Moines, Iowa. Persons may present their views at this hearing either orally or in writing.

These rules are intended to implement Iowa Code section 272.2.

The following amendments are proposed.

ITEM 1. Amend rule 282--14.20(272) by adding the following new subrule:

14.20(17) Mentor endorsement.

a. Authorization. The holder of this endorsement is authorized to serve as a mentor for a beginning teacher.

b. Requirements.

(1) Hold a currently valid educational or professional teaching license.

(2) Complete mentor preparation to include the following:

1. Adult teacher development stages.

2. Styles of mentoring.

3. Coaching techniques.

4. Communication skills.

5. Reflective practices.

6. Change processes.

7. Preservice performance standards.

8. Human relations.

9. Teaching styles.

10. This preparation shall constitute 45 contact hours in a board-approved mentor program.

c. Have had five years of successful teaching experience.

d. Mentor endorsement renewal training of a minimum of 15 contact hours to be required for mentors during the term of the license.

ITEM 2. Adopt new 282--Chapter 21 as follows:

CHAPTER 21

BEGINNING TEACHER SUPPORT PROGRAM

282--21.1(272) Definitions. For the purposes of this chapter, the following definitions apply.

"Beginning practitioner" means an individual serving under an initial provisional or conditional license who is assuming a position as a classroom teacher.

"Beginning practitioner program" means the support program made available by the board of directors who have volunteered their district to participate in this support program for beginning classroom teachers.

"Board of directors" means the employing agency of a local accredited public or nonpublic school district or area education agency.

"Classroom teacher" means an individual who holds a valid Iowa teacher's license and who provides instruction to students.

"Director of induction" means the official at the state level who oversees teacher induction programs in the state and reports to the Iowa board of educational examiners/executive director.

"District committee" means the committee formed by a local education agency to implement the support component of the beginning practitioner program.

"District facilitator" means the professional employee in a position requiring a license issued by the state board who is appointed by the employing agent to serve as the liaison between the local board of directors and the state board for the beginning teacher program.

"Employing agent" means the chief executive officer or other official authorized by the chief executive officer or supervising authority of a local board of directors for a district.

"Executive director" means the executive director of the board of educational examiners.

"Full-time" means employment in a position at a salary rate of 50 percent or more of the salary rate of such position, if such position were full-time.

"Induction site" is an institution (state-accredited public and nonpublic schools, area education agencies and colleges and universities) which has met criteria defined by the state board to provide mentor training.

"Licensure staff" means the staff who work with the board of educational examiners.

"Mentor" means an individual who has been selected and trained to provide support and instruction to beginning teachers.

"Part-time" means employment in a position at a salary rate less than 50 percent of the salary rate of such position, if such position were full-time.

"School administrator" means a superintendent or principal, director or other designated administrator of a school district or a school building and who holds a valid Iowa license endorsed for this area of service.

"State board" means the state board of educational examiners.

282--21.2(272) Responsibilities of employing agents. Upon approval from the local board of directors for the district to participate in the beginning teacher support system plan, each employing agent shall:

21.2(1) Appoint a district facilitator who will be responsible to attend a state-approved orientation covering the facilitator's role;

21.2(2) Form a district committee that can be a separate committee or a subcommittee of school improvement or staff development committees;

21.2(3) Ensure that the district facilitator orients district committee members to all facets of the beginning practitioner support program to include, but not be limited to, the goals of the programs, the application and selection process for mentors, the responsibilities of mentors, and the process for annually reviewing the work of the district committee;

21.2(4) Ensure that the process for nominating and selecting individuals for training as mentors is implemented;

21.2(5) Notify teachers, at such time and in such manner as the state board shall prescribe, about opportunities to serve as mentors and about the selection criteria and the selection processes;

21.2(6) Ensure that each beginning practitioner is placed with a mentor;

21.2(7) Protect beginning practitioners from excessive overload in teaching assignments, extracurricular activities, coaching, and committee work and make assignments that adhere to licensure rules;

21.2(8) Report to the state board, in such manner and at such times as the executive director shall prescribe, data for each beginning practitioner;

21.2(9) Provide release time for mentor and beginning practitioner pairs;

21.2(10) Submit local school calendars to the state board, at such time and in such manner as the executive director shall prescribe;

21.2(11) Require, at such time and in such manner as the executive director shall prescribe, attestation by district committee members of service on the district committee;

21.2(12) Provide to the state board a list of names of mentors who have not successfully met their responsibilities and who shall be removed from the list of individuals eligible for placement as mentors;

21.2(13) Annually review and, as necessary, revise procedures as specified in rule 21.8(272) for the operation of the support component of the beginning teacher program; and,

21.2(14) Ensure conformance with applicable provisions of these regulations.

282--21.3(272) Responsibilities of the induction site. The responsibilities of the induction site are as follows:

1. Submitting mentor training plans for authorization by the director of induction.

2. Providing mentor training as defined by the state board.

3. Providing beginning teacher follow-up workshops as requested by district committees.

282--21.4(272) Formation and responsibilities of the district committee.

21.4(1) The district committee of the local education agency shall be established by the district board of directors and the certified bargaining agent, as applicable.

21.4(2) Local education agencies may join together to form a regional committee to serve two or more districts.

21.4(3) The district committee of the local education agency shall be composed of licensed practitioners employed in positions requiring a license issued by the state board, and a majority of the members of the district committee shall invite a representative from a higher education institution and an AEA representative to participate on the committee. The district facilitator shall be a member of the district committee.

21.4(4) The employing agent shall determine the size of the district committee with consideration being given to the number of classroom practitioners employed by the district and the anticipated number of beginning teachers.

21.4(5) The district committee shall adopt written procedures which shall include, but not be limited to, rotation of district committee members and the application process and selection process for dissolving placements.

21.4(6) The district committee shall recommend to the district board of directors those classroom practitioners eligible to be mentors.

21.4(7) The district committee shall annually review written procedures, develop budget, evaluate the effectiveness of the program and, as necessary, make revisions.

282--21.5(272) Duties of the district facilitator of the local education agency. The duties of the district facilitator of the local education agency are as follows:

21.5(1) To implement a beginning teacher needs assessment instrument that will provide information to guide planning for assistance programs;

21.5(2) To ensure that times and locations for discussions on preobservation foci and postobservation reflections are arranged between beginning practitioners and their mentors;

21.5(3) To orient district committee members to all facets of the beginning practitioner support program that include but are not limited to the goals of the programs, the application and selection process for mentors, the responsibilities of mentors, and the process for annually reviewing the work of the district committee;

21.5(4) To be responsible to attend a state orientation concerning the district facilitator's role;

21.5(5) To submit to the director of induction by March 30 of each year the names of mentors who are selected to be trained;

21.5(6) To provide lists of trained mentors at such times as the director of induction prescribes to school administrators to enable such school administrators to match mentors with beginning practitioners;

21.5(7) To facilitate induction workshops as recommended by the district committee;

21.5(8) To report to the director of induction as requested.

282--21.6(272) Selection of mentors.

21.6(1) Individuals who are employed by a school corporation or district board of directors are eligible to become mentors. They must have nominated themselves or must have been nominated by an administrator, peers, or a professional organization and shall present evidence to the district committee of meeting the following requirements:

a. Possession of the appropriate valid Iowa license;

b. Completion of the requirements for the mentor license within one year after implementation of the induction concept;

c. Current employment as a classroom teacher;

d. A record of a minimum of at least five years of effective practice with at least two of the most recent years in a position related to the individual's license (e.g., elementary teacher, special education teacher, secondary English teacher);

e. Employment of one full year in the district with nonprobationary status;

f. A record of successful teaching;

g. Evidence of the ability to work cooperatively with team members;

h. Demonstration of professional commitment to the improvement of teaching and learning;

i. A commitment to the development of beginning practitioners;

j. A willingness to encourage the development of individual teaching styles;

k. A model of the lifelong learning concerned with professional development and growth;

l. A model of strong interpersonal and communication skills;

m. The ability to relate effectively to adult learners;

n. The ability to be reflective and articulate about the craft and knowledge base of teaching; and

o. Such other criteria as may be deemed necessary by the district committee.

21.6(2) District committee members shall review applications to ensure that all requirements have been met before recommending to the local board of directors through its employing agent those classroom practitioners eligible to be mentors.

21.6(3) The district board of directors shall review and approve or disapprove the recommendations submitted to it by the district committee.

21.6(4) The district facilitator shall submit to the director of induction by March 30 of each year, the names of mentors who are selected to be trained.

282--21.7(272) Training of mentors.

21.7(1) The state board shall approve the induction sites to deliver mentor training.

21.7(2) The state board shall provide or authorize the following:

a. Initial and follow-up training programs at induction sites to prepare teachers to serve as mentors. These mentor training programs shall constitute 45 contact hours and shall include but not be limited to:

1. Adult teacher development stages.

2. Styles of mentoring.

3. Coaching techniques.

4. Communication skills.

5. Reflection practices.

6. Change processes.

7. Preservice performance standards.

8. Human relations training.

9. Teaching styles.

b. License renewal training of a minimum of 15 contact hours, to be required for mentors every five years.

c. Lists of approved mentors to district committees annually.

d. Technical assistance to include but not limited to mentoring resource guides to district facilitators through state director of induction.

282--21.8(272) Responsibilities of mentors. The mentor's responsibilities shall include, but not be limited to, the following:

21.8(1) Being licensed through completion of mentor training.

21.8(2) Meeting weekly with the beginning practitioner during the initial school year and recording such activities as defined by the district committee.

21.8(3) Observing the beginning practitioner on at least eight occasions (or two times/quarter) during the year along with planning and reflection conferences using coaching techniques.

21.8(4) Providing the following support for the development of the beginning practitioner's skills:

a. Assistance in acquiring knowledge of the school curriculum, responsibilities for implementing the curriculum, and the instructional resources available for such implementation.

b. Assistance with management tasks identified as especially difficult for the beginning teacher.

c. Assistance in the improvement of individual instructional skills and classroom management.

21.8(5) Modeling professional ethics.

21.8(6) Adhering to licensure rules.

21.8(7) Completing the appropriate licensure renewal training program as provided by the state board.

282--21.9(272) Placement.

21.9(1) Placements shall be made by the school administrators with input from the district facilitator under the following general conditions:

a. A mentor may refuse a placement.

b. Placement of beginning practitioners with mentors shall be made in a manner which provides an opportunity for the participation of the largest number of eligible mentors.

c. Mentors who have not served as practitioners in the school year preceding the year in which they return to classroom teaching shall be eligible for placements. If leaves exceed one school year, such individual shall return to full-time assignment for one full school year in order to be eligible to accept a placement.

21.9(2) Beginning practitioners shall be placed with mentors under the following conditions:

a. Each beginning practitioner will be placed with a mentor;

b. Placement of a beginning practitioner with a mentor shall be made as soon as possible after a beginning practitioner is assigned to a school building, but no later than ten school days after the beginning teacher has been given the grade-level assignment;

c. School administrators shall place beginning practitioners with mentors who serve in the same school building whenever possible;

d. Within the building, first priority shall be given to placing beginning teachers with mentors who have the same subject or grade-level assignment;

e. A beginning teacher assigned to more than one building or district shall be placed by the employing agent with a mentor who teaches in one of the buildings to which the beginning teacher is assigned or with a mentor with a similar subject assignment who is assigned to more than one building or district;

f. A mentor who is employed full-time and who has a full assignment shall receive no more than one beginning practitioner placement at a time;

g. A mentor who is employed full-time but has less than a full class teaching assignment shall receive no more than two beginning teacher placements at a time;

h. If a mentor is unavailable in the same building as the beginning practitioner, the beginning practitioner may be placed by the employing agent with a mentor who is located in another building, but in the same assignment or area;

i. The district facilitator, at such time and in such manner as the director of induction shall prescribe, shall provide lists of trained mentors to school administrators to enable such school administrators to match mentors with beginning practitioners; and

j. A mentor and a beginning practitioner, in collaboration with the school administrator, may discontinue a placement following a local review and approval under written procedures developed by the district committee.

282--21.10(272) Exceptions to selection and placement procedures for mentors. The executive director, or the executive director's designee, may grant exceptions to the placement requirements upon timely petition by the employing agent showing good cause.

282--21.11(272) Release time for mentors and beginning practitioners. From the date of placement, mentors and beginning practitioners each shall receive annually not less than the equivalent of five school days of release time consisting of no fewer than ten meetings for planning, demonstration, observation and feedback, and induction workshops.

These rules are intended to implement Iowa Code section 272.2.

ARC 7726A

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 section 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 section 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 217.6 and 249A.4 and 1997 Iowa Acts, chapter 208, section 8, subsection 1, and section 37, the Department of Human Services proposes to amend Chapter 51, "Eligibility," Chapter 52, "Payment," and Chapter 75, "Conditions of Eligibility," appearing in the Iowa Administrative Code.

These amendments implement the January 1, 1998, Supplemental Security Income (SSI) cost-of-living adjustment increases, the annual adjustment in the maximum amount of resources to be attributed to the community spouse, and the amount used for determining the community spouse's maintenance needs. These amendments also increase the personal needs allowance for residents of residential care facilities as mandated by the General Assembly.

The Department received confirmation from the Department of Health and Human Services (DHHS) that the social security cost-of-living increase which will become effective January 1, 1998, is established at 2.1 percent. The Department has decided to pass along this increase to recipients of state supplementary assistance. Therefore, the SSI increase of $10 for an individual resulted in an increase in the total allowance in a family life home from $566.20 to $576.20. Individuals in family life homes will receive the same personal needs allowance as residents in residential care facilities. The benefit rate for an essential person increased by $5 from $242 to $247 resulting in the same increase for a dependent person.

The maximum amount of resources to be attributed to a community spouse and the maintenance needs of a community spouse are indexed annually by the consumer price index. The Department has received confirmation from DHHS that the maximum amount of resources to be attributed to the community spouse has increased from $79,020 to $80,760 and the maintenance needs of the community spouse have increased from $1,975.50 to $2,019.

The substance of these amendments is also Adopted and Filed Emergency and is published herein as ARC 7727A. The purpose of this Notice is to solicit comment on that submission, the subject matter of which is incorporated by reference.

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 January 21, 1998.

These amendments are intended to implement Iowa Code sections 249.3, 249.4, and 249A.4 and 1997 Iowa Acts, chapter 208, section 8, subsection 1.

ARC 7724A

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 section 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 section 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 75, "Conditions of Eligibility," appearing in the Iowa Administrative Code.

This amendment revises Medicaid policy governing the attribution of resources to an institutionalized spouse and the spouse at home (community spouse).

When one spouse enters a nursing facility and expects to stay or does stay in the facility for 30 days or more, an attribution of resources is completed to protect resources for the community spouse. The institutionalized spouse or the community spouse may request through the appeal process that additional resources be set aside for the community spouse if it is believed that the amount of income generated by the resources attributed to the community spouse is inadequate to raise the community spouse's income to the minimum monthly maintenance allowance ($2,019 effective January 1, 1998).

In the appeal process, the rules direct that the appellant obtain three estimates of an immediate single premium lifetime annuity. If the average of the three estimates is greater than the amount originally set aside, then the average is used. If the average of the three estimates is less than the amount originally set aside, then the original amount is used. Insurance companies sometimes refuse to provide estimates for very elderly persons. This amendment provides a method for the worker to determine the value of an immediate annuity for persons who file an appeal when no insurance company will provide an estimate of the cost.

The worker shall determine the amount of resources to be set aside for the community spouse using the following calculation: The difference between the community spouse's gross monthly income not generated by countable resources (times 12) and the minimum monthly maintenance needs allowance (times 12) shall be multiplied by the annuity factor for the age of the community spouse in the Table for an Annuity for Life published at the end of Iowa Code chapter 450. This amount shall be submitted to the administrative law judge responsible for conducting the appeal hearing to be substituted for the amount of resources attributed to the community spouse if the amount exceeds the original attribution.

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 January 21, 1998.

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

The following amendment is proposed.

Amend subrule 75.5(3), paragraph "f," by adding the following new subparagraph (7):

(7) If the appellant provides a statement from three insurance companies that they will not provide estimates due to the potential annuitant's age, the amount to be set aside shall be determined using the following calculation: The difference between the community spouse's gross monthly income not generated by countable resources (times 12) and the minimum monthly maintenance needs allowance (times 12) shall be multiplied by the annuity factor for the age of the community spouse in the Table for an Annuity for Life published at the end of Iowa Code chapter 450. This amount shall be substituted for the amount of resources attributedto the community spouse pursuant to subparagraph 75.5(3)"f"(5).

ARC 7740A

INSURANCE DIVISION[191]

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 section 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 section 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 514F.3, the Division of Insurance hereby gives Notice of Intended Action to amend Chapter 27, "Preferred Provider Arrangements," and Chapter 40, "Health Maintenance Organizations," Iowa Administrative Code.

The amended language is substantially similar to the existing language which prohibits the inclusion of language commonly referred to as a "gag" clause in managed care contracts. The amended language is identical to the language included in the federal Budget Reconciliation Act.

Any interested person may make written comments on these proposed amendments on or before January 20, 1998. Such comments should be directed to Jo Oldson, Iowa Insurance Division, Lucas State Office Building, Des Moines, Iowa 50319; fax (515)281-3059.

These amendments are intended to implement Iowa Code sections 514B.23 and 514F.3.

The following amendments are proposed.

ITEM 1. Rescind subrule 27.8(1) and adopt the following new subrule in lieu thereof:

27.8(1) A health care insurer shall not prohibit or otherwise restrict a participating provider from advising a covered person about the health status of the covered person or medical care or treatment of the covered person's condition or disease, regardless of whether benefits for such care or treatment are provided under the plan, if the provider is acting within the lawful scope of practice.

ITEM 2. Rescind subrule 40.22(1) and adopt the following new subrule in lieu thereof:

40.22(1) A health maintenance organization shall not prohibit or otherwise restrict a participating provider from advising an enrollee of the health maintenance organization about the health status of the enrollee or medical care or treatment of the enrollee's condition or disease, regardless of whether benefits for such care or treatment are provided under the plan, if the provider is acting within the lawful scope of practice.

ARC 7746A

NATURAL RESOURCE COMMISSION[571]

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 section 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 section 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 455A.5(6), the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 28, "Snowmobile and All-Terrain Vehicle Registration Revenue Cost-Share Program," Iowa Administrative Code.

These amendments accomplish the following:

1. Change the reimbursable amount for insurance to the clubs.

2. Change the date that sign orders are due.

3. Rescind subrule 28.14(2), ambulance sleds, as an item eligible for funding.

Any interested person may make written suggestions or comments on the proposed amendments on or before January 20, 1998. Such written materials should be directed to the Parks, Recreation and Preserves Division, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319-0034; fax (515)281-6794. Persons who wish to convey their views orally should contact the Division at (515)281-3449 or TDD (515)242-5967 or at the Division offices on the fourth floor of the Wallace State Office Building.

There will be a public hearing on January 20, 1998, at1 p.m. in the Fifth Floor East Conference Room of theWallace State Office 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 amendments.

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.

These amendments are intended to implement Iowa Code section 321G.7.

The following amendments are proposed.

ITEM 1. Amend subrule 28.13(2), paragraph "a," as follows:

a. Program and facility liability insurance. It shall be the sponsor's responsibility to obtain program and liability insurance including snowmobile trail groomer liability insurance. A certificate of insurance must be provided to the DNR. This insurance coverage may include liability insurance for the sponsoring organization, excluding the cost of insurance for special events and excluding liability insurance on snowmobiles or all-terrain vehicles owned by the sponsor. The total payment from the snowmobile fund for insurance shall be 100 percent of the cost but limited to $600 per county represented by the sponsor club represented by approved application, unless otherwise approved by the director. The total payment from the all-terrain vehicle fund shall be 100 percent of the cost limited to $3,500 per developed riding area. All insurance paid under this paragraph must be furnished by companies licensed to do business in Iowa.

ITEM 2. Amend subrule 28.13(3) as follows:

28.13(3) Trail signs. Signs shall be provided to the sponsor by the DNR. Only those signs approved by the DNR for use on funded areas or trails shall be used by the sponsor. Signs appropriate to each program shall be ordered on forms provided on request from the DNR. The sign order deadline for both snowmobile and all-terrain vehicle use shall be June July 1 of each year. Posts for signs and installation costs are the responsibility of the sponsor.

ITEM 3. Rescind and reserve subrule 28.14(2).

ARC 7747A

NATURAL RESOURCE COMMISSION[571]

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 section 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 section 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 455A.5(6), the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 61, "State Parks and Recreation Areas," Iowa Administrative Code.

These amendments accomplish the following:

1. Define the term "free climbing."

2. Amend the name of Handicapped Identification Device and subsequent use of the definition.

3. Add Claire Wilson Park to the list of State Recreation Areas.

4. Clarify the extended camping fee time period for modern camping areas.

5. Increase existing enclosed shelter rental fees at Clear Lake State Park, Dolliver Memorial State Park-South Lodge, Lacey-Keosauqua State Park, Palisades-Kepler State Park, Stone State Park and add new enclosed shelter rental fees at Backbone State Park, Lake of Three Fires State Park and Lake Wapello.

6. Move open shelter reservation fees to follow after enclosed shelter rental fee and add a new beach open shelter rental fee at Pine Lake State Park, Springbrook Recreation Area, and Lake Wapello State Park for the beach houses that have been renovated and converted to open shelters.

7. Clarify campsite occupancy.

8. Add a paragraph regarding the use of boat docks for fishing.

9. Describe the intended use of funds provided for renovation and new vertical infrastructure under the Restore the Outdoors program as funded and authorized by 1997 Iowa Acts, chapter 215, section 37.

Any interested person may make written suggestions or comments on the proposed amendments on or before January 20, 1998. Such written materials should be directed to the Parks, Recreation and Preserves Division, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319-0034; fax (515)281-6794. Persons who wish to convey their views orally should contact the Division at (515)281-3449 or TDD (515)242-5967 or at the Division offices on the fourth floor of the Wallace State Office Building.

There will be a public hearing on January 20, 1998, at1 p.m. in the Fifth Floor East Conference Room of the Wallace State Office 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 amendments.

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.

These amendments are intended to implement Iowa Code sections 461A.3, 461A.46, 461A.51, and 461A.57.

The following amendments are proposed.

ITEM 1. Amend 571--61.2(461A) by adding the following new definition in alphabetical order.

"Free climbing" means climbing with the use of hands and feet only and without the use of ropes, pins and other devices normally associated with rappelling and rock climbing.

ITEM 2. Amend 571--61.2(461A), definition of "Handicapped identification device," as follows:

"Handicapped identification device" "Persons with disabilities parking permit" means an identification device bearing the international symbol of accessibility issued by the Iowa department of transportation or similar devices issued by other states. The device can be a hanging device or on a motor vehicle as a plate or sticker as provided in Iowa Code section 321L.2 or 321L.9.

ITEM 3. Amend 571--61.2(461A), definition of "Recreation areas," as follows:

"Recreation areas" means the following areas that have been designated by action of the natural resource commission:

Area

County
Badger Creek Recreation Area
Madison
Brushy Creek Recreation Area
Webster
Claire Wilson Park
Dickinson
Emerson Bay & Lighthouse
Dickinson
Fairport Recreation Area
Muscatine
George Wyth Recreation Area
Black Hawk
Lake Darling Recreation Area
Washington
Lower Gar Access
Dickinson
Marble Beach
Dickinson
Mines of Spain Recreation Area
Dubuque
Pioneer Recreation Area
Mitchell
Pleasant Creek Recreation Area
Linn
Templar Park
Dickinson
Springbrook Recreation Area
Guthrie
Viking Lake Recreation Area
Montgomery
Volga River Recreation Area
Fayette
Wilson Island Recreation Area
Pottawattamie
These areas are managed for multiple uses, including public hunting, and are governed by rules established in this chapter as well as 571--Chapters 52 and 105.

ITEM 4. Amend subrule 61.3(1), paragraph "j," as follows:

j. Fees as given in "a" shall be in effect each year in the following areas during the time period shown below:

Backbone State Park, Delaware County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Elk Rock State Park, Marion County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, which-ever comes first.

Fairport Campground, Muscatine County -- May 1 through Monday, the national Labor Day holiday.

Emerson Bay Campground, Dickinson County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Gull Point State Park, Dickinson County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Lake Manawa State Park, Pottawattamie County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Ledges State Park, Boone County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Marble Beach Campground, Dickinson County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Maquoketa Caves State Park, Jackson County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Pikes Peak State Park, Clayton County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

Waubonsie State Park, Fremont County -- Monday before the national Memorial Day holiday through October 31 or until the shower facilities are closed for the season, whichever comes first.

ITEM 5. Amend subrule 61.3(3) as follows:

61.3(3) Enclosed shelter Shelter rental per reservation. This fee does not include tax.

Enclosed shelters

Per Day

A.A. Call State Park, Kossuth County
$55
Backbone State Park Auditorium, Delaware County**
40
Backbone State Park, Delaware County
100
Bellevue State Park - Nelson Unit, Jackson County
80
Big Creek State Park, Polk County
175
Clear Lake State Park, Cerro Gordo County
70 80
Dolliver Memorial State Park - Central Lodge and South Lodge, Webster County**
40
Dolliver Memorial State Park - South Lodge, Webster County
55
Ft. Defiance State Park, Emmet County
40
George Wyth State Park Recreation Area, Black Hawk County**
50
Gull Point State Park, Dickinson County
100
Lacey-Keosauqua State Park, Van Buren County
40 60
Lake Ahquabi State Park, Warren County
60
Lake Keomah State Park, Mahaska County
50
Lewis and Clark State Park, Monona County
40
Lake of Three Fires State Park, Taylor County
55
Lake Wapello State Park, Davis County
60
Palisades-Kepler State Park, Linn County
70 100
Pine Lake State Park, Hardin County
60
Pleasant Creek Recreation Area, Linn County**
60
Stone State Park, Woodbury County
65 100
Walnut Woods State Park, Polk County
110
Wapsipinicon State Park, Jones County

Heated year-round shelter
40
Unheated seasonal shelter
30
**Do not contain kitchen facilities

ITEM 6. Amend subrule 61.3(3) by adding the following new paragraphs:

b. Open shelter reservation $20 plus applicable tax.

c. Beach house open shelter reservation $40 plus applicable tax.

Lake Wapello State Park, Davis County

Pine Lake State Park, Hardin County

Springbrook Recreation Area, Guthrie County

ITEM 7. Rescind and reserve subrule 61.3(5), paragraph "b."

ITEM 8. Amend subrule 61.4(1), paragraph "b," as follows:

b. Campsites are occupied only when a tent, car, RV, truck, trailer or other personal item is physically in place on the site and when the requirements of 61.4(1)"a," second paragraph, have been met.

ITEM 9. Amend subrule 61.5(10), paragraph "g," as follows:

g. Campsites marked with the international symbol of accessibility shall be used only by vehicles displaying a handicapped identification devise persons with disabilities parking permit. The vehicle must be in use by a handicapped person either as an operator or passenger.

ITEM 10. Amend subrule 61.5(11), paragraph "a," as follows:

a. Open picnic sites marked with the international symbol of accessibility shall be used only by persons or groups containing persons qualifying for and displaying a handicapped identification device persons with disabilities parking permit on their vehicle.

ITEM 11. Amend 571--61.5(461A) by adopting the following new subrule:

61.5(14) Fishing off boat docks within state areas. All docks within state parks and recreation areas are available for fishing. People fishing off these docks must yield to boats and not interfere with boaters. Willful interference is a violation of this rule.

ITEM 12. Adopt new rule 571--61.26(461A) as follows:

571--61.26(461A) Restore the outdoors program. Funding provided through the appropriation made by 1997 Iowa Acts, chapter 215, and subsequent acts, shall be used to renovate, replace or construct new vertical infrastructure and associated appurtenances in state parks and other public facilities managed by the department of natural resources.

The intended projects will be included in the department's annual five-year capital plan in priority order by year and approved by the natural resource commission for inclusion in its capital budget request.

The funds appropriated by 1997 Iowa Acts, chapter 215, section 37, and subsequent acts, will be used to renovate, replace or construct new vertical infrastructure through construction contracts, agreements with local government entities responsible for managing state parks and other public facilities, and through agreements with the department of corrections to use inmate labor where possible. Funds shall also be used to support site survey, design and construction contract management through consulting engineering and architectural firms and direct survey, design and construction management costs incurred by department engineering and architectural staff for restore the outdoors projects. Funds shall not be used to support general department oversight of the restore the outdoors program such as accounting, general administration or long-range planning.

ARC 7745A

NATURAL RESOURCE COMMISSION[571]

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 section 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 section 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 455A.5(6), the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 87, "Mussel Regulations," Iowa Administrative Code.

The proposed amendments modify Chapter 87 which establishes season dates, areas, size limits, methods and species for commercial harvest of freshwater mussels. These amendments remove washboard mussels from commercial harvest.

Any interested person may make written suggestions or comments on the proposed amendments on or before January 30, 1998. Such written materials should be directed to Marion Conover, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319-0034; fax (515)281-6794. Persons who wish to convey their views orally should contact the Fisheries Bureau at (515)281-5208 or at the Fisheries Bureau offices on the fourth floor of the Wallace State Office Building.

Also, there will be two public hearings as follows:


* Wednesday, January 28, 1998, at 7 p.m. in Dubuque at the University of Dubuque, Blakes Hall, 2000 University Avenue, and


* Thursday, January 29, 1998, at 7 p.m. in Muscatine at the Public Library, 304 Iowa Avenue.

At the above hearings, persons may present their viewseither orally or in writing. Persons attending the hearings will be asked to give their names and addresses for the record and to confine their remarks to the subject of the rule.

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.

These amendments are intended to implement Iowa Code sections 481A.38, 481A.39, 482.1 and 482.12.

The following amendments are proposed.

ITEM 1. Amend subrule 87.1(2) as follows:

87.1(2) Size limits. Except as otherwise provided, a commercial mussel fisher, commercial mussel buyer or commercial mussel helper shall not take or possess a species of mussel open to commercial harvest which is less than the minimum size limit. The minimum size limit on washboard mussels shall be 4 inches. The minimum size limit on three-ridge mussels shall be 3 inches and on mapleleaf mussels it shall be 23/4 inches. The minimum size limit on all other mussel species open to commercial harvest shall be 21/2 inches. The measurement for minimum size shall be from the center of the hinge side and at a right angle across the shell to the outer edge. All mussels under the minimum size limit that are taken by crowfoot bar or hand shall be returned immediately to the water unharmed over the bed from which they were removed.

ITEM 2. Amend subrule 87.1(3) as follows:

87.1(3) Species regulations. The following species of mussels may be taken by licensed commercial mussel fishers: washboard, three-ridge, mapleleaf, pimpleback, pigtoe, hickory nut, and pink heelsplitter. There shall be a continuous closed season on all other species.

ARC 7744A

NATURAL RESOURCE COMMISSION[571]

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 section 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 section 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 455A.5, the Natural Resource Commission hereby gives Notice of Intended Action to amend Chapter 94, "Nonresident Deer Hunting," Iowa Administrative Code.

These rules give the seasons for hunting deer by nonresidents and include season dates, bag limits, possession limits, season limits, shooting hours, areas open to hunting, license quotas, licensing procedures, means and method of take and transportation tag requirements. This amendment allows for the use of alternate application methods for nonresident deer hunters.

Any interested person may make written suggestions or comments on the proposed amendment on or before January 23, 1998. Such written materials should be directed to the Wildlife Bureau Chief, Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319- 0034; fax (515)281-6794. Persons who wish to convey their views orally should contact the Wildlife Bureau at (515)281-8660 or at the Wildlife Bureau offices on the fourth floor of the Wallace State Office Building.

Also, there will be a public hearing on January 23, 1998, at 1 p.m. in the Fourth Floor East Conference Room of the Wallace State Office 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 amendment.

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.

This amendment is intended to implement Iowa Code section 481A.38 and 481A.48.

The following amendment is proposed.

Amend rule 571--94.8(483A) by adding the following new paragraph:

The department may develop media/telecommunication options that would allow for additional methods of obtaining a deer license. Methods and deadlines may be determined by the department as a part of the alternative methods developed.

ARC 7738A

PUBLIC HEALTH DEPARTMENT[641]

Notice of Termination

Pursuant to the authority of 1993 Iowa Acts, chapter 158, sections 3 and 4, the Iowa Department of Public Health terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on June 4, 1997, as ARC 7286A, amending Chapter 201, "Organized Delivery Systems," Iowa Administrative Code.

The Notice proposed to amend Chapter 201 by adding new rules to prohibit the restriction of medical communications by organized delivery systems.

The Department is terminating the rule making commenced in ARC 7286A and is renoticing the proposed rules to incorporate significant changes in the rules as originally proposed.

ARC 7739A

PUBLIC HEALTH DEPARTMENT[641]

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 section 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 section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of 1993 Iowa Acts, chapter 158, sections 3 and 4, the Iowa Department of Public Health hereby gives Notice of Intended Action to amend Chapter 201, "Organized Delivery Systems," Iowa Administrative Code.

This amendment prohibits the restriction of medical communications by organized delivery systems.

Any interested person may make written suggestions or comments on this proposed amendment on or before January 20, 1998. Such written material should be directed to Mike Marshall, Department of Public Health, Fourth Floor, Lucas State Office Building, Des Moines, Iowa 50319-0075; fax (515)281-4958.

Also, there will be a public hearing on January 20, 1998, at 9 a.m. in the fourth floor conference room of the Lucas State Office Building. Any persons who intend to attend the public hearing and have special requirements, such as hearing or mobility impairments, should contact the Department of Public Health and advise of special needs.

This amendment is intended to implement 1993 Iowa Acts, chapter 158, sections 3 and 4.

The following amendment is proposed.

Adopt the following new subrule:

201.6(8) Prohibition of interference with medical communications.

a. An ODS shall not prohibit or otherwise restrict a participating provider from advising an enrollee of the ODS about the health status of the enrollee or medical care or treatment of the enrollee's condition or disease, regardless of whether benefits for such care or treatment are provided under the plan, if the provider is acting within the lawful scope of practice.

b. An ODS shall not penalize a provider because the provider, in good faith, reports to state or federal authorities any act or practice by the ODS that, in the opinion of the provider, jeopardizes patient health or welfare.

ARC 7733A

REVENUE AND FINANCE DEPARTMENT[701]

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 section 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 section 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 421.17(19) and 422.68, the Iowa Department of Revenue and Finance hereby gives Notice of Intended Action to amend Chapter 50, "Apportionment of Income for Resident Shareholders of S Corporations," Iowa Administrative Code.

The proposed amendment to rule 701--50.1(422) corrects erroneous dates in the rule.

The proposed amendment will not necessitate additional expenditures by political subdivisions or agencies and entities which contract with political subdivisions.

The Department has determined that this proposed amendment may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.31(4). The Department will issue a regulatory flexibility analysis as provided in Iowa Code sections 17A.31 to 17A.33 if a written request is filed by delivery or by mailing postmarked no later than January 20, 1998, to the Policy Section, Compliance Division, Iowa Department of Revenue and Finance, Hoover State Office Building, P. O. Box 10457, Des Moines, Iowa 50306. 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 Iowa Code sections 17A.31 to 17A.33, or an organization of small businesses representing at least 25 persons which is registered with this agency under Iowa Code sections 17A.31 to 17A.33.

Any interested person may make written suggestions or comments on this proposed amendment on or before January 30, 1998. Such written comments should be directed to the Policy Section, Compliance Division, Iowa Department of Revenue and Finance, Hoover State Office Building, P. O. Box 10457, Des Moines, Iowa 50306.

Persons who want to orally convey their views should contact the Policy Section, Compliance Division, Iowa Department of Revenue and Finance, at (515)281-4250 or at the Department of Revenue and Finance offices on the fourth floor of the Hoover State Office Building.

Requests for a public hearing must be received by January 23, 1998.

This amendment is intended to implement Iowa Code chapters 421 and 422.

The following amendment is proposed.

Amend rule 701--50.1(422) as follows:

701--50.1(422) Apportionment of income for resident shareholders of S corporations. For tax years beginning on or after January 1, 1996, and before January 1, 1998, resident shareholders of S corporations which are value-added corporations and which carry on business within and without Iowa may, at their election, determine the S corporation income allocable to sources within Iowa by allocation and apportionment of the S corporation income. For tax years beginning on or after January 1, 1998, resident shareholders of all S corporations which carry on business within and without Iowa may, at their election, determine the S corporation income allocable to sources within Iowa by allocation and apportionment of the S corporation income. For tax years beginning on or after January 1, 1997 1996, and before January 1, 1998 1997, in order to take advantage of this provision, the taxpayers must first file their return reporting all income to Iowa and then file a refund claim based on allocation and apportionment.

For tax years beginning on or after January 1, 1997, a shareholder in an S corporation which carries on business within and without Iowa which has elected to apportion income and then elects not to apportion income shall not reelect to apportion income for three tax years immediately following the first tax year in which the shareholder elected not to apportion income, unless the director of revenue and finance consents to the election.

This rule is intended to implement Iowa Code section 422.5, subsection 1, paragraph "j," as amended by 1997 Iowa Acts, House Files 266 and 306 chapters 111 and 158.

ARC 7741A

SECRETARY OF STATE[721]

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 section 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 section 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 9B.1(7), the Secretary of State hereby gives Notice of Intended Action to adopt Chapter 45, "Civil Penalties for Waste Tire Haulers," Iowa Administrative Code.

This new chapter describes the policies and procedures for assessing civil penalties for violations of Iowa Code chapter 9B, "Registration of Waste Tire Haulers." The rules include criteria for evaluating a violation to determine the amount of the penalty. A civil penalty may be assessed only after a notice and an opportunity for a contested case hearing. The waste tire hauler must pay the penalty within 30 days of the issuance of an administrative order served by certified mail. If the contested case hearing was presided over by a designee of the Secretary of State, the waste tire hauler may ask for review by the Secretary of State. Provisions are also made for informal settlements between the Secretary of State and the waste tire hauler.

Any interested person may make written suggestions or comments on the proposed rules on or before Tuesday, January 20, 1998. Written comments should be sent to the Business Services Division, Office of the Secretary of State, Second Floor, Hoover State Office Building, Des Moines, Iowa 50319-0138; fax (515)242-5953. Anyone who wishes to comment orally may telephone Monty Bertelli at (515) 281-7550 or visit the office on the second floor of the Hoover Building.

There will be a public hearing on Tuesday, January 20, 1998, at 1:30 p.m. at the office of the Secretary of State, Second Floor, Hoover State Office Building. People may comment orally or in writing. Persons who speak at the hearing will be asked to give their names and addresses for the record and to confine their remarks to the subject of the rule.

These rules are intended to implement Iowa Code section 9B.1(8).

The following new chapter is proposed.

CHAPTER 45

CIVIL PENALTIES FOR WASTE TIRE HAULERS

721--45.1(9B) Scope. Iowa Code section 9B.1(8) authorizes the assessment of civil penalties for violations of Iowa Code chapter 9B. This rule describes the policies and procedures for assessing such penalties.

721--45.2(9B) Criteria. In evaluating a violation to determine which cases may be appropriate for administrative assessment of civil penalties, and in determining the amount of penalty, the secretary of state or appointed designee shall consider all of the following factors:

45.2(1) Culpability which shall include but not be limited to:

a. The degree of intent, or the willfulness or recklessness of the violation.

b. Whether the case involves false reporting of required information.

45.2(2) Actual or potential danger of injury to the public health or safety, or damage to the environment caused by the violation.

45.2(3) Actual or potential cost of injury or damage caused by the violation to the public health or safety or to the environment.

45.2(4) Actual and potential cost incurred by the secretary of state in enforcing the provisions of Iowa Code chapter 9B and rules adopted pursuant to this chapter against the violator.

45.2(5) Remedial action taken by the waste tire hauler.

45.2(6) Previous history of noncompliance by the waste tire hauler being assessed the civil penalty.

721--45.3(9B) Notice and hearing. Civil penalties may be assessed against a waste tire hauler only after a notice and an opportunity for a contested case hearing unless the parties agree to an informal settlement which assesses a civil penalty or other disciplinary action. The secretary of state may seek assessment of a civil penalty by serving a complaint upon the waste tire hauler. The complaint shall include a statement of the time, place and nature of the hearing, a statement of the legal authority and jurisdiction under which the hearing will be held, a reference to the statute or rules involved, and a statement of the matters asserted. The complaint may be served on the waste tire hauler by personal service or by certified mail, return receipt requested. The hearing shall be governed by Iowa Code chapter 17A.

721--45.4(9B) Administrative order. Upon finding that a waste tire hauler has violated Iowa Code chapter 9B or rules adopted pursuant to this chapter, an administrative order shall be issued assessing the civil penalty. The order shall recite the facts, the legal requirements which have been violated, the rationale for the assessment of the civil penalty and the date of issuance. The order shall be served upon the waste tire hauler by certified mail, return receipt requested.

721--45.5(9B) Amount of penalty. The civil penalty imposed on a waste tire hauler shall not exceed $10,000 in accordance with the provisions of Iowa Code chapter 9B or rules adopted pursuant to this chapter.

721--45.6(9B) Payment. The penalty shall be paid within 30 days of the date that the order assessing the civil penalty becomes final. Failure to pay the civil penalty within three months of the date that the order becomes final shall be grounds for suspension or revocation of the waste tire hauler's certificate of registration. The secretary of state may request that the attorney general institute judicial proceedings to recover an unpaid civil penalty.

721--45.7(9B) Informal settlement. These rules do not apply to any settlement reached between the waste tire hauler and the secretary of state prior to the initiation of a contested case proceeding. The secretary of state shall notify the waste tire hauler that a probable violation of a proposed penalty has been found and provide the waste tire hauler an opportunity to attend an informal settlement conference. The secretary of state and the waste tire hauler may attend an informal settlement conference and reach an agreement about the assessment of a civil penalty or other disciplinary action against the waste tire hauler. The agreement shall be in writing executed by the secretary and the waste tire hauler.

721--45.8(9B) Review period. If the contested case hearing is presided over by a designee of the secretary of state, the waste tire hauler may seek review by the secretary of state of the order assessing a civil penalty or other disciplinary action within 14 days following service of the order. The waste tire hauler shall submit a short and concise statement of the facts of the case and a statement as to why the amount of the civil penalty or other disciplinary action is inappropriate under the circumstances of the case. The request for review shall be served upon the secretary of state by certified mail, return receipt requested. If the waste tire hauler fails to file a request for review within the prescribed time period, the order becomes the final order of the secretary of state.

721--45.9(9B) Review by the secretary of state. The secretary of state shall confine the review to the record of the contested case hearing. The review shall not be a contested case evidentiary hearing. The final order of the secretary of state may include increasing the amount of civil penalty, reducing the amount of the civil penalty or not imposing a civil penalty, or modifying any other proposed disciplinary action. The final order shall be served upon the waste tire hauler by certified mail, return receipt requested.

These rules are intended to implement Iowa Code section 9B.1(8).

ARC 7736A

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 section 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 adopt Chapter 635, "Motorcycle Rider Education (MRE)," Iowa Administrative Code.

These rules establish standards for the approved motorcycle rider education course, provide for the licensing of instructors of the approved course, establish the responsibilities of sponsors of the approved course, and provide for disbursement of moneys in the motorcycle rider education fund. The motorcycle rider education fund may be used to establish or expand delivery of the course, replace motorcycles, train and update instructors, and reimburse sponsors for per pupil costs.

These rules are intended to implement Iowa Code section 321.189.

Any person or agency may submit written comments concerning these proposed rules 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 January 20, 1998.

A meeting to hear requested oral presentations is scheduled for Thursday, January 22, 1998, 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.

The proposed rules may have an impact on small business. The Department has considered the factors listed in Iowa Code subsection 17A.31(4), paragraphs "a" to "l." The following may request the issuance of a regulatory flexibility analysis: the Administrative Rules Review Committee, the Governor, a political subdivision, at least 25 persons signing the request who qualify as a small business, or an organization registered with the Department and representing at least 25 persons. The request must:

1. Include the name, address, and telephone number of the person(s) authoring the request.

2. Be submitted in writing to the Director's Staff Division at the address listed in this Notice.

3. Be delivered to the Director's Staff Division or postmarked no later than 20 days after publication of this Notice in the Iowa Administrative Bulletin.

Proposed rule-making action:

Adopt 761--Chapter 635 as follows:

CHAPTER 635

MOTORCYCLE RIDER EDUCATION (MRE)

761--635.1(321) Definitions.

"Approved course" means the motorcycle rider education course approved by the department.

"MRE" means motorcycle rider education.

"Sponsor" means an entity that delivers the approved course.

761--635.2(321) Approved course in motorcycle rider education.

635.2(1) Any entity providing motorcycle rider education to persons under the age of 18 for purposes of early licensing or seeking reimbursement under Iowa Code subsection 321.189(9) for providing motorcycle rider education to persons aged 18 and older must teach the motorcycle rider education course approved by the department.

635.2(2) A sponsor must receive approval from the department prior to the beginning of the first class offered and annually thereafter. Private or commercial sponsors shall also be licensed by the department under rule 761-- 600.12(321).

635.2(3) The approved course uses a nationally recognized, research-based curriculum that consists of a minimum of seven clock hours of classroom instruction and eight clock hours of on-cycle instruction in an off-street area. Only persons successfully completing all elements of both phases of this curriculum shall be issued an Iowa certificate of completion for motorcycle rider education. Issuance of an Iowa certificate of completion to persons who do not successfully complete this curriculum is cause for revocation of the instructor's license and denial of reimbursement to the sponsor for each student involved.

635.2(4) Prior to the beginning of on-cycle instruction, a student enrolled in the approved course must be at least 14 years of age, possess a valid motor vehicle license as defined in Iowa Code section 321.1, be able to touch the ground with the balls of both feet while sitting astride the training motorcycle, and complete the motorcycle safety course waiver form, including the signature of a parent or legal guardian if the student is under the age of 18.

635.2(5) The scheduled time for instruction--classroom, on-cycle, or a combination of both--shall not exceed eight hours in any one calendar day. During on-cycle instruction, a student shall wear a U.S. DOT-approved helmet, an eye-protective device, and protective clothing, including gloves, a long-sleeved shirt or jacket, long pants, and shoes or boots that cover the feet and ankles.

635.2(6) The maximum student-instructor ratio for classroom instruction shall be 24 to 1. No more than 12 students may receive on-cycle instruction at one time on a single full-size range. The maximum student-instructor ratio for on-cycle instruction shall be 8 to 1 when using a single instructor and 6 to 1 when using two instructors.

635.2(7) A driving range used for on-cycle instruction must be paved, free of hazards to motorcycle travel, and have an unobstructed, paved runoff of at least 20 feet in all directions.

a. On a driving range that is at least 185 feet by 60 feet, excluding runoff, up to seven students may receive instruction at one time.

b. On a full-size driving range that is at least 220 feet by 120 feet, excluding runoff, up to 12 students may receive instruction at one time.

635.2(8) The sponsor shall provide one fully operational, street-legal motorcycle for each student engaged in on-cycle instruction. Each motorcycle must have an engine displacement of no greater than 350 cubic centimeters.

635.2(9) The driving test for a Class M motor vehicle license may be waived under 761--subrule 604.31(2) provided the applicant has successfully completed the approved course.

761--635.3(321) Instructors.

635.3(1) License. An instructor of the approved course must be licensed by the department. However, an individual who meets the qualifications for a license except for paragraph 635.3(2)"d" or who is suspended under paragraph 635.3(3)"c" may teach two classes of the approved course under the guidance of an experienced, licensed instructor. To obtain and retain an MRE instructor's license:

a. An individual trained as an MRE instructor on or after July 1, 1998, must meet all of the provisions listed in subrule 635.3(2).

b. An individual trained as an MRE instructor before July 1, 1998, who has taught for an Iowa sponsor after January 1, 1996, must meet the provisions of subrule 635.3(2), paragraphs "a" to "c." Paragraphs "e" and "f" of that subrule are waived until June 30, 1998; thereafter, they must be met. Paragraphs "d" and "g" of that subrule are waived.

635.3(2) Licensing provisions. To obtain and retain an MRE instructor's license, an individual must:

a. Possess a valid Class M or equivalent motor vehicle license which is valid for a two-wheel motorcycle.

b. Successfully complete a nationally recognized,research-based instructor preparation course approved bythe department.

c. Possess a current instructor certification from a nationally recognized motorcycle safety organization approved by the department.

d. Before a license is granted, teach two classes of the approved course under the guidance of an experienced, licensed instructor.

e. After a license is granted, teach at least one class each calendar year.

f. After a license is granted, participate in at least one state-sponsored or state-approved instructor refresher or update each calendar year.

g. Possess a high school diploma or equivalent.

635.3(3) License suspension.

a. The department shall suspend the MRE license of an MRE instructor whose driving privilege is suspended, revoked, canceled, denied or barred. The suspension shall remain in effect until the individual's driving privilege is restored.

b. The department shall suspend the MRE license of an MRE instructor who fails to maintain a current instructor certification from a nationally recognized motorcycle safety organization approved by the department. The suspension shall remain in effect until the certification is current.

c. Each January, the department shall review each MRE instructor's teaching activity and update/refresher participation. The department shall suspend the MRE license of an MRE instructor who fails to meet these licensing provisions. The suspension shall remain in effect until the individual has taught two classes of the approved course under the guidance of an experienced, licensed instructor.

761--635.4(321) Responsibilities of sponsors.

635.4(1) Sponsors shall:

a. Comply with all teaching and instructor provisions of the approved course.

b. Use only instructors licensed by the department to teach the approved course. However, an individual who meets the qualifications for a license except for paragraph 635.3(2)"d" or who is suspended under paragraph 635.3(3)"c" may teach two classes of the approved course under the guidance of an experienced, licensed instructor.

c. Maintain liability insurance in an amount of not less than $1 million, combined single limit, with an aggregate limit of not less than $2 million, and file a certificate of this insurance with the department. The certificate shall name the department and its officers, agents, representatives and employees as additional insureds with respect to all work, deliveries or services performed for them by the named insured, and shall specify that the department of transportation, office of driver services, shall be given at least 30 days' prior notice of any material change in or cancellation of the insurance.

A sponsor who is a state agency or public educational institution shall provide written verification of self-insurance to the department.

d. Maintain complete instructional accident report files on forms provided by the department.

e. Maintain a record of costs incurred in providing the approved course and furnish this information to the department on forms provided by the department.

f. Accommodate the department's on-site instructor and class conduct/content review process.

g. Involve a program administrator in an annualdepartment-sponsored, in-service seminar.

h. Participate in the department's centralized motorcycle rider education master schedule.

i. Provide and maintain adequate instructional facilities and equipment to accommodate all components--lecture, audio-visual, and on-cycle--of the approved course.

635.4(2) The department shall deny approval to a sponsor applying for annual approval from the department under subrule 635.2(2) if the sponsor fails to comply with all of the provisions of subrule 635.4(1).

761--635.5(321) Use of motorcycle rider education fund. The motorcycle rider education fund may be used for the following purposes:

635.5(1) Course development. New or current sponsors may apply to the department for funds to establish delivery of the approved course at an unserved site. Current sponsors may apply for funds to expand delivery at an existing site.

a. Expenditures eligible for funding are limited to:

(1) Acquisition of necessary classroom furnishings and audio-visual systems if used exclusively to deliver the approved course.

(2) Required curriculum materials including necessary audio and visual components.

(3) Range development and maintenance excluding land acquisition, surfacing and resurfacing.

(4) Training motorcycles and motorcycle maintenance equipment if the equipment is to be used exclusively for the upkeep of the motorcycles.

(5) On-cycle safety equipment limited to helmets, eye-protective devices and gloves.

b. Application for funds shall be on forms provided by the department. Departmental approval shall be based on the geographical area and number of students to be served and the availability of moneys in the motorcycle rider education fund.

c. Payment to the sponsor for course development expenditures shall be on a cost-reimbursement basis.

635.5(2) Motorcycle replacement. Sponsors may apply to the department for up to 50 percent matching funds to replace training motorcycles no longer fit for service. Application for funds shall be on forms provided by the department. Departmental approval shall be based on the documented unavailability of loaner motorcycles in the geographical area, the number of students to be served, and the availability of moneys in the motorcycle rider education fund. Payment to a sponsor for the purchase of replacement motorcycles shall be on a cost-reimbursement basis.

635.5(3) Instructor preparation. The department shall sponsor beginning instructor preparation courses.

a. An instructor preparation course is open to any individual who:

(1) Possesses a valid Class M or equivalent motor vehicle license which is valid for a two-wheel motorcycle.

(2) Submits documentation showing successful completion of the approved MRE course.

(3) Submits verification from an approved sponsor of employment as an instructor of the approved course to be offered within the next 12 months.

b. Upon proof of successful completion of the instruction preparation course, an individual may be reimbursed for course tuition.

c. Applications for enrollment and claims for tuition reimbursement shall be made on forms provided by the department.

635.5(4) Instructor refreshers and updates. The department shall sponsor and fund instructor refreshers or updates. Instructor refreshers or updates shall be open to all state-licensed MRE instructors and chief instructors. Instructor participation in department-approved professional development seminars sponsored by other groups may be funded based on the availability of moneys in the motorcycle rider education fund.

635.5(5) Chief instructor preparation. An experienced, state-licensed instructor accepted for enrollment in a nationally recognized chief instructor preparation course who agrees to be a chief instructor in a department-sponsored instructor preparation course within 12 months following successful completion of the chief instructor preparation course may apply to the department for funding assistance on forms provided by the department.

a. Funding assistance is limited to course tuition, travel, and subsistence (meals and lodging).

b. Upon approval of the application, the department shall pay for course tuition and travel to the training site.

c. Upon receipt by the department of evidence of successful completion accompanied by documentation of subsistence expenses incurred, the department shall reimburse the instructor for food and lodging based on the in-state reimbursement limits for state employees established by the department of revenue and finance.

d. If the instructor fails to attend the training, the instructor must repay the department both the course tuition and the travel purchased.

e. If the instructor fails to successfully complete the course, the instructor must repay the department one-half the course tuition and one-half the travel purchased. Meal and lodging expenses shall not be reimbursed.

635.5(6) Reimbursement of per pupil costs. The department shall reimburse a sponsor for each student who completes its approved course. Reimbursement shall be based on the sponsor's per pupil cost and the availability of moneys in the motorcycle rider education fund.

a. Reimbursement shall be paid twice each calendar year, once for training provided from January to June and once for training provided from July to December.

b. A sponsor's per pupil cost is based on the sum of the sponsor's eligible expenses in providing the approved course, minus the total tuition received for the course, divided by the number of students who completed the course.

c. Eligible expenses are limited to: (1) instructor and coordinator salaries and travel, (2) consumable instructional materials and supplies including helmets, eye-protective devices and gloves, (3) range maintenance, (4) motorcycle operation, maintenance and storage costs, (5) documented program liability insurance expenditures, and (6) program promotion costs.

d. Claims for reimbursement shall include a report of eligible expenses incurred and tuition received, a summary of courses taught with site, date, and instructor information, and a report for each class taught providing name, age, social security number and gender of each student. Claims for reimbursement shall be made on forms provided by the department.

e. Failure to provide complete cost, course, instructor and student information, failure to meet instructor certification and licensure requirements, or failure to meet prescribed instructor-student ratios shall result in the forfeiture of reimbursement for those courses and students involved.

These rules are intended to implement Iowa Code subsections 321.189(7) and 321.189(9).

NOTICE--PUBLIC FUNDS INTEREST RATES

In compliance with Iowa Code chapter 74A and section 12C.6, the committee composed of Treasurer of StateMichael L. Fitzgerald, Superintendent of Credit Unions James E. Forney, Superintendent of Banking Michael K. Guttau, and Auditor of State Richard D. Johnson have established today the following rates of interest for public obligations and special assessments. The usury rate for December is 8.00%.

INTEREST RATES FOR PUBLIC
OBLIGATIONS AND ASSESSMENTS
74A.2 Unpaid Warrants Maximum 6.0%

74A.4 Special Assessments Maximum 9.0%

RECOMMENDED for 74A.3 and 74A.7: A rate equal to 75% of the Federal Reserve monthly published indices for U.S. Government securities of comparable maturities.

The rate of interest has been determined by a committee of the state of Iowa to be the minimum interest rate that shall be paid on public funds deposited in approved financial institutions. To be eligible to accept deposits of public funds of the state of Iowa, a financial institution shall demonstrate a commitment to serve the needs of the local community in which it is chartered to do business. These needs include credit services as well as deposit services. All such financial institutions are required to provide the committee with a written description of their commitment to provide credit services in the community. This statement is available for examination by citizens.

New official state interest rates, effective December 9, 1997, setting the minimums that may be paid by Iowa depositories on public funds are listed below.

TIME DEPOSITS
7 - 31 days Minimum 4.60%
32 - 89 days Minimum 4.80%
90 - 179 days Minimum 5.00%
180 - 364 days Minimum 5.20%
One year Minimum 5.10%
Two years or more Minimum 5.35%These are minimum rates only. The one year and less are six-tenths of a percent below average rates. Public body treasurers and their depositories may negotiate a higher rate according to money market rates and conditions.

Inquiries may be sent to Michael L. Fitzgerald, Treasurer of State, State Capitol, Des Moines, Iowa 50319.

ARC 7723A

TREASURER OF STATE[781]

Notice of Termination

Pursuant to the authority of Iowa Code sections 12.34(2), 12.40(2), 12.41 and 12.43, the Treasurer of State terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on July 30, 1997, as ARC 7397A, proposing to adopt Chapter 4, "Linked Investments for Tomorrow (LIFT)," Iowa Administrative Code.

This new chapter was also Adopted and Filed Emergency by the Treasurer of State as ARC 7398A. The Notice of Intended Action included an opportunity for written comments as well as a public hearing. The Treasurer of State did not receive one comment from the public. Since no comments were received and no changes are required to the emergency adopted rules, there is no further need to proceed with the rule making for ARC 7397A.

FILED EMERGENCY

ARC 7727A

HUMAN SERVICES DEPARTMENT[441]

Adopted and Filed Emergency

Pursuant to the authority of Iowa Code sections 217.6 and 249A.4 and 1997 Iowa Acts, chapter 208, section 8, subsection 1, and section 37, the Department of Human Services hereby amends Chapter 51, "Eligibility," Chapter 52, "Payment," and Chapter 75, "Conditions of Eligibility," appearing in the Iowa Administrative Code.

These amendments implement the January 1, 1998, Supplemental Security Income (SSI) cost-of-living adjustment increases, the annual adjustment in the maximum amount of resources to be attributed to the community spouse, and the amount used for determining the community spouse's maintenance needs. These amendments also increase the personal needs allowance for residents of residential care facilities as mandated by the General Assembly.

The Department received confirmation from the Department of Health and Human Services (DHHS) that the social security cost-of-living increase which will become effective January 1, 1998, is established at 2.1 percent. The Department has decided to pass along this increase to recipients of state supplementary assistance. Therefore, the SSI increase of $10 for an individual resulted in an increase in the total allowance in a family life home from $566.20 to $576.20. Individuals in family life homes will receive the same personal needs allowance as residents in residential care facilities. The benefit rate for an essential person increased by $5 from $242 to $247 resulting in the same increase for a dependent person.

The maximum amount of resources to be attributed to a community spouse and the maintenance needs of a community spouse are indexed annually by the consumer price index. The Department has received confirmation from DHHS that the maximum amount of resources to be attributed to the community spouse has increased from $79,020 to $80,760 and the maintenance needs of the community spouse have increased from $1,975.50 to $2,019.

The Seventy-seventh General Assembly in 1997 Iowa Acts, chapter 208, section 8, subsection 1, required the Department to increase the personal needs allowance for residents of residential care facilities (RCFs) by the same percentage and at the same time as federal Supplemental Security Income and federal social security benefits are increased due to a recognized increase in the cost of living. At the current time, residents of RCFs receive a total personal needs allowance of $69, of which $63.07 is for personal expenses and $5.35 is for Medicaid copayment expenses. A 2.1 percent increase in the personal expenses part of the allowance increases that part of the allowance to $64.39. This amount added to the average copayment of $5.35 totals $69.74. Thus, the personal needs allowance is rounded up to $70 effective January 1, 1998.

The Department of Human Services finds that notice and public participation are impracticable and contrary to the public interest. These amendments merely pass along an increase established at the federal level and by state statute. If the Department were to follow regular rule-making procedures, it would be several months before the public would feel the benefits of these rules. Therefore, these amendments are filed pursuant to Iowa Code section 17A.4(2).

These amendments are being published under Notice to allow for public comment as ARC 7726A herein.

The Department finds that these amendments confer a benefit on the public by passing along the SSI increase to state supplementary assistance recipients and by increasing the maximum amount of resources to be attributed to the community spouse, the maintenance needs of the community spouse, and the personal needs allowance for residents of residential care facilities. 1997 Iowa Acts, chapter 208, section 8, subsection 1, and section 37, allow the increase in the personal needs allowance to be effective immediately upon filing unless a later date is specified. Therefore, these amendments are filed pursuant to Iowa Code sections 17A.5(2)"b"(1) and 17A.5(2)"b"(2).

The Council on Human Services adopted these amendments December 10, 1997.

These amendments are intended to implement Iowa Code sections 249.3, 249.4, and 249A.4 and 1997 Iowa Acts, chapter 208, section 8, subsection 1.

These amendments shall become effective January 1, 1998.

The following amendments are adopted.

ITEM 1. Amend subrule 51.4(1) as follows:

51.4(1) Income. Income of a dependent relative shall be less than $242 $247. When the dependent's income is from earnings, an exemption of $65 shall be allowed to cover work expense.

ITEM 2. Amend rule 441--51.7(249) as follows:

441--51.7(249) Income from providing room and board. In determining profit from furnishing room and board or providing family life home care, $242 $247 per month shall be deducted to cover the cost, and the remaining amount treated as earned income.

This rule is intended to implement Iowa Code sections 249.3 and 249.4.

ITEM 3. Amend rule 441--52.1(249) as follows:

Amend subrules 52.1(1) and 52.1(2) as follows:

52.1(1) Protective living arrangement. The following assistance standards have been established for state supplementary assistance for persons living in a protective living arrangement:

Family life home certified under rules in 441--Chapter 111.

$497.20


$506.20
care allowance
69.00

70.00
personal allowance
$566.20

$576.20
Total
52.1(2) Dependent relative. The following assistance standards have been established for state supplementary assistance for dependent relatives residing in a recipient's home.

a. Aged or disabled client and a
dependent relative................................

$726
$741
b. Aged or disabled client, eligible spouse, and a dependent relative.........
$968
$988
c. Blind client and a dependent
relative.................................................
$748
$763
d. Blind client, aged or disabled spouse, and a dependent relative.........
$990
$1010
e. Blind client, blind spouse, and a dependent relative................................
$1012
$1032
Amend subrule 52.1(3), paragraph "a," subparagraph (2), as follows:

(2) Effective January 1, 1997 January 1, 1998, a $69 $70 allowance to meet personal expenses and Medicaid copayment expenses.

ITEM 4. Amend subrule 75.5(3), paragraph "d," as follows:

d. Method of attribution. The resources attributed to the institutionalized spouse shall be one-half of the documented resources of both the institutionalized and community spouse as of the first moment of the first day of the month of the spouse's first entry to a medical facility. However, if one-half of the resources is less than $24,000, then $24,000 shall be protected for the community spouse. Also, when one-half the resources attributed to the community spouse exceeds $79,020 $80,760, the amount over $79,020 $80,760 shall be attributed to the institutionalized spouse. (The maximum limit shall be indexed annually by the consumer price index.)

If the institutionalized spouse has transferred resources to the community spouse under a court order for the support of the community spouse, the amount transferred shall be the amount attributed to the community spouse if it exceeds the specified limits above.

ITEM 5. Amend subrule 75.16(2), paragraph "d," subparagraph (3), as follows:

(3) Needs of spouse. The maintenance needs of the spouse shall be determined by subtracting the spouse's gross income from $1,975.50 $2,019. (This amount shall be indexed for inflation annually according to the consumer price index.)

However, if either spouse established through the appeal process that the community spouse needs income above $1,975.50 $2,019, due to exceptional circumstances resulting in significant financial duress, an amount adequate to provide additional income as is necessary shall be substituted.

Also, if a court has entered an order against an institutionalized spouse for monthly income to support the community spouse, then the community spouse income allowance shall not be less than this amount.

[Filed Emergency 12/10/97, effective 1/1/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7728A

HUMAN SERVICES DEPARTMENT[441]

Adopted and Filed Emergency After Notice

Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services hereby amends Chapter 75, "Conditions of Eligibility," appearing in the Iowa Administrative Code.

The Council on Human Services adopted these amendments December 10, 1997. These amendments combine two Notices of Intended Action. Notices of Intended Action regarding these amendments were published in the Iowa Administrative Bulletin on October 22, 1997, as ARC 7598A, and on November 5, 1997, as ARC 7617A.

The amendments noticed as ARC 7598A add three new Medicaid coverage groups mandated by the Balanced Budget Act of 1997, H.R. 2015, Sections 4732 and 4913. They are an Expanded Specified Low-Income Medicare Beneficiaries group, a Home Health SLMB group, and an SSI-related children's coverage group. In addition, paragraph 75.1(34)"a" is corrected to indicate that the income of Specified Low-Income Medicare Beneficiaries must be less than the applicable limit, rather than equal to or less than the limit.

To be eligible to receive Medicaid under the Expanded SLMB or the Home Health SLMB coverage groups, a person must meet the same eligibility criteria as the current SLMB coverage group except for the income level and not be otherwise eligible for Medicaid. The income limit for the Expanded SLMB coverage group is 120 percent of the federal poverty level to less than 135 percent of the federal poverty level. The income limit for the Home Health SLMB coverage group is 135 percent of the federal poverty level to less than 175 percent of the federal poverty level.

The Expanded SLMB group will pay only the Medicare Part B premiums and the Home Health SLMB will pay only the home health portion of the Medicare Part B premium.

The SSI-related coverage group provides Medicaid eligibility to any child who had been receiving SSI as of August 22, 1996, who was subsequently canceled due to the revised disability criteria for children contained in the Personal Responsibility and Work Opportunity Act of 1996 (P.L. 104-193). Medicaid will be continued for these children as long as the child would continue to be eligible for SSI except for the change in disability criteria under Public Law 104-193. The Balanced Budget Act of 1997 signed August 5, 1997, requires coverage for this group be implemented retroactive to July 1, 1997.

The amendment noticed as ARC 7617A revises Medicaid policy to provide that when a child is considered deprived due to the unemployment of the parents, there is no longer a 30-day delay in Medicaid eligibility.

Prior to the state welfare reform initiative in 1993, if both parents were in the home, a child was considered deprived if either of the parents was unemployed. In order to be considered unemployed, the parent had to be working 100 hours or less per month, and benefits could not begin until the parent had been considered unemployed for 30 days.

Iowa obtained an 1115 waiver to waive the 100-hour rule for the Family Investment Program (FIP). However, the 30-day benefit delay continued to apply. Medicaid also followed these rules. This has resulted in increased complexity in program administration.

The Department has received clarification from the Health Care Financing Administration (HCFA) that even though a state has an 1115 waiver to eliminate the 100-hour rule for unemployed parents, the state cannot continue to apply the 30-day benefit delay provisions to Medicaid. Therefore, the rules are being amended so that the rules regarding the effective date of eligibility for all other FMAP-related households will also apply to unemployed parent households.

Families who are found eligible under the unemployed parent provisions will be entitled to Medicaid benefits as of the first day of the month in which eligibility is established as well as the three-month retroactive period if otherwise qualified.

The Department finds that the amendments noticed as ARC 7598A confer a benefit on disabled children who were receiving SSI as of August 22, 1996, and who were canceled or would have been canceled due to Section 211(a) of the Personal Responsibility and Work Opportunity Act of 1996. They will continue to be entitled to Medicaid benefits if otherwise qualified. Those amendments also confer a benefit on certain persons eligible for Medicare with incomes from 120 to 175 percent of the federal poverty level by paying for part of their Medicare premiums. The Department finds that the amendment noticed as ARC 7617A confers a benefit on families who are found eligible under the unemployed parent provisions. They will be entitled to Medicaid benefits as of the first day of the month in which eligibility is established as well as the three-month retroactive period if otherwise qualified. Therefore, these amendments are filed pursuant to Iowa Code section 17A.5(2)"b"(2).

The following revision was made to the Notice of Intended Action published as ARC 7598A:

Subrule 75.1(38) was revised to remove continued Medicaid to persons who were receiving SSI-related Medicaid following interpretation from the Health Care Financing Administration that the Balanced Budget Act of 1997 only continues Medicaid to persons who actually received SSI.

The amendment noticed as ARC 7617A is identical to that published under Notice of Intended Action.

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

These amendments shall become effective January 1, 1998.

The following amendments are adopted.

ITEM 1. Amend subrule 75.1(34), paragraph "a," as follows:

a. The person's monthly income exceeds 100 percent of the federal poverty level but does not exceed is less than the following percentage of the federal poverty level (as defined by the United States Office of Management and Budget and revised annually in accordance with Section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved:

(1) 110 percent effective January 1, 1993.

(2) 120 percent effective January 1, 1995, and thereafter.

ITEM 2. Amend rule 441--75.1(249A) by adding the following new subrules 75.1(36) to 75.1(38):

75.1(36) Expanded specified low-income Medicare beneficiaries. Medicaid benefits to cover the cost of the Medicare Part B premium shall be available to persons who are entitled to Medicare Part A provided the following conditions are met:

a. The person's monthly income is at least 120 percent of the federal poverty level but is less than 135 percent of the federal poverty level (as defined by the United States Office of Management and Budget and revised annually in accordance with Section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved.

b. The person's resources do not exceed twice the maximum amount of resources that a person may have and obtain benefits under the Supplemental Security Income (SSI) program.

c. The amount of the income and resources shall be determined the same as under the SSI program unless the person lives and is expected to live at least 30 consecutive days in a medical institution and has a spouse at home. Then the resource determination shall be made according to subrules 75.5(3) and 75.5(4). Income shall not include any amount of social security income attributable to the cost-of-living increase through the month following the month in which the annual revision of the official poverty level is published.

d. The person is not otherwise eligible for Medicaid.

e. The effective date of eligibility shall be as set forth in rule 441--76.5(249A).

75.1(37) Home health specified low-income Medicare beneficiaries. Medicaid benefits to cover the cost of the home health portion of the Medicare Part B premium shall be available to persons who are entitled to Medicare Part A provided the following conditions are met:

a. The person's monthly income is at least 135 percent of the federal poverty level but is less than 175 percent of the federal poverty level (as defined by the United States Office of Management and Budget and revised annually in accordance with Section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved.

b. The person's resources do not exceed twice the maximum amount of resources that a person may have and obtain benefits under the Supplemental Security Income (SSI) program.

c. The amount of the income and resources shall be determined the same as under the SSI program unless the person lives and is expected to live at least 30 consecutive days in a medical institution and has a spouse at home. Then the resource determination shall be made according to subrules 75.5(3) and 75.5(4). Income shall not include any amount of social security income attributable to the cost-of-living increase through the month following the month in which the annual revision of the official poverty level is published.

d. The person is not otherwise eligible for Medicaid.

e. The effective date of eligibility shall be as set forth in rule 441--76.5(249A).

75.1(38) Continued Medicaid for disabled children from August 22, 1996. Medical assistance shall be available to persons who were receiving SSI as of August 22, 1996, and who would continue to be eligible for SSI but for Section 211(a) of the Personal Responsibility and Work Opportunity Act of 1996 (P.L. 104-193).

ITEM 3. Amend subrule 75.54(3), paragraph "c," as follows:

c. The parent(s) is parents are considered unemployed. A child shall be eligible for assistance on the basis of being deprived of parental care or support by reason of both parents' being considered unemployed as described in subparagraphs (1) and (2) below. If either parent cannot be considered unemployed, then deprivation on the basis of unemployment does not exist.

When deprivation exists because of parental absence or incapacity, that deprivation factor supersedes and the case shall not be processed on the basis of a parent's the parents' unemployment.

(1) When both parents of a common child are in the home and neither parent is incapacitated as defined at paragraph 75.54(3)"b," eligibility for assistance shall be determined based on the unemployment of the parent parents, without regard to either parent's hours of employment, income or resources. Unless the person is excluded in accordance with the provisions of rule 441--75.59(249A), for the purpose of determining eligibility, the eligible group shall include the common child, any parent, and any deprived sibling of the common child living in the home with the common child as described at subrule 75.58(1). Each parent in an unemployed parent case shall meet the following requirements:

1. Both parents shall be unemployed for 30 days prior to receipt of assistance except as described below. Eligibility shall not be established to cover any of the 30-day period unless the provisions of 441--paragraph 76.5(2)"a" apply. Parents who are employed but whose earnings are insufficient to meet the needs of the family according to the schedule of needs as provided in subrule 75.58(2) shall be considered unemployed for the purpose of establishing eligibility under this subrule.

Applicants shall be subject to a 30-day delay in the date that eligibility can be granted based on unemployment of a parent. If either parent is currently working 100 or more hours per month, then the earliest date assistance shall begin is 30 days from the date of application for assistance. If both parents are currently working less than 100 hours per month, the 30-day period shall begin on the date that either parent last worked 100 or more hours. "Currently" means the number of hours worked or expected to be worked in the month of application.

When an existing eligible group reports a change that requires an eligibility redetermination to establish the continued unemployment of the parent, "currently" means the number of hours worked or expected to be worked in the month the change is reported. When the existing eligible group reports an anticipated change that requires an eligibility predetermination under the unemployed parent program, "currently" means the number of hours worked or expected to be worked in the month of report or in the month the change occurred, whichever is later.

When the applicant or recipient is self-employed, the hours of employment shall be established in accordance with either of the methods described below, at option of the applicant or recipient.

The hours of employment may be determined on the basis of the actual hours worked, when the actual hours can be verified by reliable written evidence from a disinterested third party, for example, the person who contracted the labor of the applicant or recipient.

The hours of employment may be calculated by dividing net income from self-employment by the federal or state minimum wage, whichever is greater. "Net monthly income" means income remaining after deduction of allowable business expenses as described in paragraphs 75.57(2)"f" through "j."

2. The parent who is an applicant and who is out of work due to refusal, without good cause, of a bona fide offer of employment for or training or for employment shall not be considered unemployed.

(2) After assistance is approved, when either parent is no longer considered unemployed, in accordance with subparagraph 75.53(3)"c"(3) or because of failure to apply for or draw job insurance benefits in accordance with the provisions of rule 441--75.3(249A), ineligibility shall result for those persons whose eligibility is dependent on the unemployment of both parents, for a minimum of one month.

[Filed Emergency After Notice 12/10/97, effective 1/1/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7731A

LABOR SERVICES DIVISION[347]

Adopted and Filed Emergency After Notice

Pursuant to the authority of Iowa Code sections 88.5, 17A.3(1) and 17A.5(2), the Labor Commissioner adopts an amendment to Chapter 10, "General Industry Safety and Health Rules," Iowa Administrative Code.

The amendment relates to Office of Management and Budget Control Numbers under the Paperwork Reduction Act; longshoring and marine terminals; air contaminants, corrections; methylene chloride, approval of information collection requirements, extension of start-up dates and a correction; and methylene chloride amendment and extension of start-up date.

Notice of Intended Action was published in the Iowa Administrative Bulletin on October 22, 1997, as ARC 7608A.

In compliance with Iowa Code section 88.5(1)"b," a public hearing was scheduled for November 13, 1997. No comments were received. This amendment is identical to the Notice of Intended Action.

Pursuant to Iowa Code section 17A.5(2)"b"(2) and (3), this amendment shall become effective upon publication on December 31, 1997. The Commissioner finds that this amendment confers a benefit on employees by permitting them to be provided with safety and health equal those found in states under federal OSHA's jurisdiction and is necessary because of the safety and health of employees in this state.

This amendment is intended to implement Iowa Code section 88.5.

The amendment will become effective December 31, 1997.

The following amendment is adopted.

Amend rule 347--10.20(88) by inserting at the end thereof:

62 Fed. Reg. 29668 (June 2, 1997)

62 Fed. Reg. 40195 (July 25, 1997)

62 Fed. Reg. 42018 (August 4, 1997)

62 Fed. Reg. 42666 (August 8, 1997)

62 Fed. Reg. 43581 (August 14, 1997)

62 Fed. Reg. 48175 (September 15, 1997)

[Filed Emergency After Notice 12/11/97, effective 12/31/97]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7732A

UTILITIES DIVISION[199]

Adopted and Filed Emergency After Notice

Pursuant to Iowa Code sections 17A.4, 476.1, 476.2, 476.3, and 476.102 and the Telecommunications Act of 1996, 47 U.S.C. Section 254, the Utilities Board (Board) gives notice that on December 11, 1997, the Board issued an order in Docket No. RMU-97-8, In re: Universal Service--Low Income Assistance, "Order Adopting Rules," to adopt amendments to 199 IAC 22.4(2), 22.4(3), 22.4(7), rescind rules 22.18(476) and 38.8(476), and add definitions to rule 39.1(476) and new rules 39.3(476) and 39.4(476) to the recently adopted chapter on universal service.

On September 19, 1997, the Board issued an order in this docket to consider the adoption of the amendments listed above. The proposed rule making was published in IAB Vol. XX, No. 8 (10/8/97), p. 701, as ARC 7586A. In that Notice the Board stated its intent to make the amendments effective on January 1, 1998, even though that date is less than 35 days after filing, indexing and publication. This is permitted under Iowa Code section 17A.5(2)"b." These amendments are identical to those published under Notice of Intended Action.

On May 7, 1997, the Federal Communications Commission (FCC) adopted low-income rules as part of its Universal Service Report and Order in CC-96-45. The purpose of this rule making is to revise Board rules regarding the federal Link-up program for low-income subscribers consistent with the recently adopted FCC rules. Also, the rules initiate the federal Lifeline program for low-income subscribers in Iowa. In addition to the changes to reflect FCC rules, the rule making addresses several items in existing Board rules that appear to impact universal service in this state.

Written comments on the proposed rules were filed by AT&T Communications of the Midwest, Inc. (AT&T), GTE Midwest Incorporated (GTE), the Consumer Advocate Division of the Department of Justice, the Rural Iowa Independent Telephone Association (RIITA), and U S West Communications, Inc. An oral presentation was held on November 4, 1997. The comments, with minor exceptions, were generally supportive of the rules. AT&T, GTE, and RIITA expressed concern that, if customers cannot be disconnected for failure to pay for deregulated toll, uncollectibles may go up and, in the end, customers may lose their local service as well as their toll service. The Board believes universal service goals will be better served if basic regulated service cannot be disconnected for failure to pay for deregulated toll service.

The adopted amendments have the following effects:

Subrule 22.4(2) regarding customer deposits no longer allows a deposit for deregulated toll to be a condition for local service. The premise underlying this amendment is that a primary goal of universal service is to have as many homes and businesses as possible subscribe to telephone service. A deposit requirement covering deregulated services is contrary to that goal. In addition to prohibiting deposits for deregulated toll for all customers, the provisions relating to deposit confirmations to customers and deposit amounts are modified to reflect the limitations for low-income customers in the new rules.

The FCC's universal service rules indicate utilities may not disconnect low-income subscribers for failure to pay for toll charges. The Board's current rules do not allow companies to disconnect for failure to pay for information services, which are not regulated services. The Board believes deregulated toll services should be treated in the same way. Obtaining local service should not be contingent on being current in payments for deregulated toll service. Therefore, subrules 22.4(3) and 22.4(7) are amended to prohibit disconnection for nonpayment of deregulated toll charges and pertain to all customers, not just low-income customers.

Rule 22.18(476) regarding the federal low-income connection assistance program, known as Link-up, is rescinded and appears in revised form in new rule 39.3(476). Rule 39.3(476) also contains provisions introducing the federal Lifeline program. The Board also amends rule 39.1(476) by adding definitions of toll blocking, toll control, and toll limitation.

Chapter 39 is designated as the universal service chapter. For that reason, rule 38.8(476), which deals with universal service support for schools and libraries, is rescinded and transferred, without substantive change, to become new rule 39.4(476).

Pursuant to Iowa Code section 17A.5(2)"b"(2), these amendments will become effective on January 1, 1998. The Board finds that these amendments confer a benefit on the public or a segment thereof by allowing Iowa telephone companies and low-income customers to participate fully in the federal low-income subsidy program from the date federal support becomes available.

These amendments are intended to implement Iowa Code section 476.102 and the Telecommunications Act of 1996, 47 U.S.C. Section 254.

The following amendments are adopted.

ITEM 1. Amend subrule 22.4(2), introductory paragraph and paragraph "a," as follows:

22.4(2) Customer deposits. Each utility may require from any customer or prospective customer a deposit intended to guarantee payment of bills for service. No deposit shall be required as a condition for service other than determined by application of either credit rating or deposit calculation criteria, or both, of the filed tariff. The deposit required shall be confirmed in writing to the customer not later than the time of the next billing. The confirmation shall, in separate columns, itemize deposits for toll and regulated services and identify deposits for other services. The confirmation shall state that no deposit other than for toll and regulated services is required to obtain basic local service. The confirmation must also reflect the limits as to low-income customers in 199--subparagraph 39.3(2)"b"(4). Toll service does not include information service not regulated by the board.

a. Such deposit shall not be more in amount than the maximum charge for two months local exchange service plus two months regulated toll service estimated from either past toll usage or customer estimated anticipated usage or exchange average toll usage for the same class and grade of service, or as may reasonably be required by the utility in cases involving service for short periods of time or specialoccasions. The deposit amounts must also reflect thelimits as to low-income customers in 199--subparagraph 39.3(2)"b"(4).

ITEM 2. Amend subparagraph 22.4(3)"c"(4) as follows:

(4) Each disconnection notice shall state that access to regulated service shall not be denied for failure to pay for information service charges, or for deregulated toll charges.

ITEM 3. Amend paragraph 22.4(3)"e" as follows:

e. If the customer makes a partial payment in a timely manner, and does not designate the service or product for which payment is made, the payment shall first be applied to the undisputed balance for basic local service, with the remainder applied on a pro-rata basis to regulated utility services and toll. If an amount remains, it may then be applied to deregulated and nonregulated services other than toll. The late payment charge provision should be applied to only the outstanding balance for utility services, except interstate toll and related taxes.

ITEM 4. Amend subrule 22.4(7) by adding new paragraph "i" as follows:

i. Failure to pay deregulated toll charges.

ITEM 5. Rescind and reserve rule 199--22.18(476).

ITEM 6. Rescind and reserve rule 199--38.8(476).

ITEM 7. Amend rule 199--39.1(476) by adding the following new definitions in alphabetical order:

"Toll blocking" means a service that lets consumers elect not to allow the completion of outgoing toll calls from their telecommunications channel.

"Toll control" means a service that allows consumers to specify a certain amount of toll usage that may be incurred on their telecommunications channel per month or per billing cycle.

"Toll limitation" denotes both toll blocking and toll control.

ITEM 8. Adopt the following new rules:

199--39.3(476) Low-income connection assistance program (Link-up) and low-income Lifeline assistance.

39.3(1) Filing of tariffs or inclusion of offer in contracts.

a. Eligible telecommunications carriers that file tariffs with the board shall include in their tariffs provisions offering low-income connection assistance (Link-up) and low-income Lifeline assistance rates to qualified applicants for single-party service, voice grade access to the public switched network, DTMF (Dual Tone Multi-Frequency) or its functional digital equivalent, access to emergency services, access to operator services, access to interexchange service, and access to directory assistance. In addition, toll limitation shall be included in this service offering without charge to the Lifeline customer.

b. Eligible carriers that do not file tariffs with the board shall include the Link-up and Lifeline offerings in their agreements to provide service to customers.

39.3(2) Rates.

a. Link-up connection assistance rates. The reduced rates shall include all state-tariffed connection charges for installing basic residential service except security deposits. The eligible carrier shall offer to qualified applicants either or both of the following:

(1) A reduction of 50 percent of all connection charges or $30, whichever is less, and

(2) A deferred payment schedule of equal payments of the charges of up to $200 assessed for commencing service. The consumer does not pay interest on the deferred charges. The deferral period shall not exceed one year.

(3) The consumer shall receive the benefit of the Link-up program for a second or subsequent time only for a principal place of residence with an address different from the residence address at which Link-up assistance was provided previously.

b. Lifeline assistance rates. The rates charged to qualified applicants shall reflect the following:

(1) Eligible carriers that charge federal end-user common line charges or equivalent federal charges must apply the federal baseline Lifeline support of $3.50 to waive the Lifeline consumer's federal end-user common line charges.

(2) Eligible carriers that do not charge federal end-user common line charges or equivalent federal charges must apply the federal baseline Lifeline support amount of $3.50 to reduce the Lifeline consumer's lowest tariffed residential rate.

(3) Qualified applicants shall have their monthly local exchange service rate reduced by the federal support of $1.75, in addition to the $3.50 of baseline federal support used either to waive the Lifeline consumer's federal end-user common line charges, or to reduce the Lifeline consumer's residential rate.

(4) Eligible carriers may not collect a service deposit in order to initiate Lifeline service, if the qualified applicant voluntarily elects toll blocking where available.

39.3(3) Qualified applicants. To be eligible for Lifeline or Link-up assistance, an applicant must participate in one of the following programs:

a. Medicaid (e.g., Title XIX/Medical, state supplemental assistance);

b. Food stamps;

c. Supplemental Security Income;

d. Federal public housing assistance; and

e. Low-income Home Energy Assistance Program.

39.3(4) Application. The application shall be upon a form as set forth below. The form shall be supplied to the applicant by the eligible carrier.

LINK-UP AND LIFELINE RATE ASSISTANCE APPLICATION

Name

Address

Soc. Sec.

City State Zip

Phone Number where you may be reached
or receive messages ( ) .

Please answer the following questions (indicate by check mark):

1. By filling out this application I (the applicant) request:

___Low-income telephone connection assistance (Link-up) and/or

___Low-income telephone Lifeline assistance.

2. Have you received Link-up assistance at the above address in the past?

___ Yes

___ No

If the answer is "yes," you are not eligible for Link-up assistance.

3. Are you participating in any of the following programs:

___ Medicaid (e.g., Title XIX/Medical, State Supplemental Assis- tance)

___ Food Stamps

___ Supplemental Security Income

___ Federal Public Housing Assistance

___ Low-Income Home Energy Assistance

I understand completion of this application does not constitute immediate acceptance into this program. I agree to notify the telecommunications carrier if I cease to participate in any of the public assistance programs I checked above.

I certify under penalty of perjury the above information is true. I have read the information on this application and understand I must meet the above qualifications to receive assistance from these programs.

SIGNATURE DATE .

39.3(5) Data collection. Eligible carriers shall keep rec-ords of the number of subscribers receiving Link-up and Lifeline assistance. Each eligible carrier must keep accurate records of the revenues it forgoes in providing Lifeline and Link-up. The board requires that the carrier file information with the federal administrator demonstrating the carrier's Lifeline and Link-up plans meet the federal criteria, the number of qualifying low-income consumers, and stating there are no state contributions.

39.3(6) Customer notification.

a. Eligible carriers shall inform all persons ordering new or transferring existing residential service of the Link-up and Lifeline assistance programs and shall inquire whether the customer wants to have further information concerning the programs provided, unless it is apparent that the customer would not be eligible.

b. The eligible carrier shall provide informational brochures and application forms to the county offices of the Iowa department of human services, division of community services for the counties served, to the area agency on aging, and to the community action offices of the department of human rights for the region served. In counties or regions served by more than one eligible carrier, the carriers are encouraged to cooperate in providing the brochures and forms jointly.

c. The eligible carriers shall pursue media coverage of the Link-up and Lifeline assistance programs. This may include advertising where appropriate.

199--39.4(476) Universal service support for schools and libraries. With respect to intrastate telecommunication services, determined by either the board or the Federal Communications Commission to be within the definition of universal service, the discount for elementary schools, secondary schools, and libraries shall be equal to the discount the Federal Communications Commission sets with respect to interstate service.

[Filed Emergency After Notice 12/11/97, effective 1/1/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

FILED

ARC 7752A

CORRECTIONS DEPARTMENT[201]

Adopted and Filed

Pursuant to the authority of Iowa Code section 904.108, the Department of Corrections hereby amends Chapter 20, "Institutions Administration," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on August 13, 1997, as ARC 7452A. This rule was simultaneously Adopted and Filed Emergency as ARC 7455A.

This rule requires inmates to pay an incarceration fee of up to $5 per month for custodial expenses as a result of the inmate's incarceration. Expenses may include but not be limited to education, room and board, and treatment programs.

The public was invited to submit written comments or attend a public hearing on September 2, 1997. No one attended and no written comments were submitted.

This rule is identical to the one published under Notice of Intended Action.

This rule was adopted by the Corrections Board at the regular meeting of the Board on December 5, 1997.

This rule will become effective on February 4, 1998, at which time the Adopted and Filed Emergency rule is hereby rescinded.

This rule is intended to implement Iowa Code section 904.108 as amended by 1997 Iowa Acts, chapter 190.

The following rule is adopted.

Rescind rule 201--20.10(904) and adopt in lieu thereof the following new rule:

201--20.10(904) Incarceration fees. Effective July 1, 1997, an incarceration fee of up to $5 per month will be assessed to all inmates who are financially able to pay. The ability to pay will be determined by an inmate's medical, physical, and mental status as well as security and program levels.

20.10(1) Deductions will occur on the first workday of each month provided all other legal and department financial obligations have been met including personal hygiene items and postage. Legal obligations include, but may not be limited to, Iowa Code section 904.108 as amended by 1997 Iowa Acts, chapter 190; Iowa Code sections 904.508, 904.702, 904.809 and 904.909; Iowa Code chapters 610 and 610A; and Iowa Rules of Civil Procedure section 80(b). Federal obligations include but are not limited to United States Code Title 28, Section 1915(b), and Federal Rules of Civil Procedure, page 54, and United States Code Title 31, Section 3713.

20.10(2) For those inmates determined to be able to pay, the first deduction will occur on the first workday in August and on the first workday of each subsequent month thereafter until the release of the inmate.

20.10(3) If an inmate is determined to be able to pay but there are insufficient funds in the inmate's account at the time of the deduction, the amount will be deducted from subsequent credits to the account.

20.10(4) Inmates assigned to a violator program at ICIW or NCF, in accordance with Iowa Code section 904.207, or inmates employed in private sector jobs, in which case federal regulations apply in accordance with Iowa Code section 904.108 as amended by 1997 Iowa Acts, chapter 190, are excluded from deductions as required by rule.

20.10(5) The director may temporarily delay or suspend the collection of these fees or may modify the method or source of collections to minimize related administrative burdens.

This rule is intended to implement Iowa Code section 904.108 as amended by 1997 Iowa Acts, chapter 190.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7737A

CORRECTIONS DEPARTMENT[201]

Adopted and Filed

Pursuant to the authority of Iowa Code section 904.508A, the Iowa Department of Corrections hereby adopts amendments to Chapter 20, "Institutions Administration," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on August 13, 1997, as ARC 7451A.

This rule gives authority to the Department of Corrections to deposit and expend commissions paid to the Department by the inmate telephone vendor. This rule also defines criteria for the expenditure of these funds for the benefit of inmates.

The public was invited to submit written comments or attend a public hearing on September 2, 1997. No one attended and no written comments were submitted.

This rule is identical to the one published under Notice of Intended Action.

This rule was adopted by the Corrections Board at the regular meeting of the Board on December 5, 1997.

This rule will become effective on February 4, 1998.

This rule is intended to implement Iowa Code section 904.508A.

The following rule is adopted.

Rescind rule 201--20.20(904) and adopt the following new rule in lieu thereof:

201--20.20(904) Inmate telephone commissions.

20.20(1) All commissions received from the vendor will be deposited in a special account established by the institution.

20.20(2) All expenditures from this account will be used for the benefit of inmates. Expenditures shall include the enhancement of existing educational, vocational, recreational, work or treatment programs, services or projects, or to initiate new programs, services, or projects. Institutions are encouraged to give spending priority to programs, services, and projects that promote the health and welfare of inmates.

20.20(3) Each institution is authorized to expend or encumber up to 75 percent of available commission funds. No institution will be allowed to overspend its account or borrow from the account.

20.20(4) Twenty-five percent of each commission will be held in reserve to assist other institutional programs, services, or projects.

20.20(5) Requests requiring expenditures or encumbrances from the 25 percent reserve will be reviewed by a committee comprised of the director, deputy director of institutions, and a warden(s) to be selected by the deputy director of institutions. These requests will be reviewed at six- month intervals or upon special need as determined by the director.

a. These requests will be in writing to the deputy director of institutions and shall describe the product or service to be purchased, the expected benefit to inmates, and the actual cost.

b. The committee will approve, deny, or modify the request in writing.

20.20(6) The director may expend and encumber a portion of the 25 percent reserve fund to support or subsidize a service or project at an institution not having sufficient funds to complete a project or service.

This rule is intended to implement Iowa Code section 904.508A.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7725A

HUMAN SERVICES DEPARTMENT[441]

Adopted and Filed

Pursuant to the authority of Iowa Code section 217.6, Iowa Code Supplement section 239B.4 and 1997 Iowa Acts, chapter 208, section 3, subsection 3, paragraph "f," subparagraph (1), and section 37, the Department of Human Services hereby amends Chapter 7, "Appeals and Hearings," and Chapter 41, "Granting Assistance," appearing in the Iowa Administrative Code, and adopts Chapter 47, "Pilot Diversion and Self-Sufficiency Grants Programs," Iowa Administrative Code.

These amendments define and structure the Department of Human Services Pilot Diversion and Self-Sufficiency Grants Programs. The purpose of these pilot programs is to determine the potential benefits and cost savings of providing immediate, short-term assistance to families in lieu of ongoing assistance under the Family Investment Program (FIP) (diversion), or to meet needs of FIP participants not currently met by existing PROMISE JOBS services (self-sufficiency grants). Assistance under this chapter is intended to enable families to become or remain self-sufficient by removing barriers to obtaining or retaining employment.

Objectives of the pilot programs include:


* Linking welfare participants and potential welfare recipients with employment;


* Avoiding FIP dependency or reducing the time of dependence on FIP;


* Developing, demonstrating and evaluating specialized local strategies;


* Determining cost-effectiveness of diversion or self-sufficiency assistance.

Participation in either program shall be based on a voluntary, informed decision by the family. There is no entitlement to participation in either pilot program. The scope of these pilot programs is limited to avoiding or reducing dependency on cash assistance. These pilot programs are not intended to divert families from applying for or receiving other assistance programs provided by the department including child care, food stamps or Medicaid. Families may receive those benefits if otherwise eligible. Further, candidates for the pilot programs shall not be denied FIP or have FIP benefits reduced or canceled on the basis that they do not want to participate in the pilot program.

These pilot programs are based on recommendations made by the Welfare Reform Advisory Group to the Department. The Advisory Group was convened in 1996 to meet a legislative mandate for establishing an interagency task force to provide input to the Department concerning FIP and welfare reform.

Following the recommendations of the Advisory Group, the Seventy-seventh General Assembly authorized and funded a pilot program to divert potential FIP applicants and assist FIP participants in overcoming barriers to employment. Incentives may be provided in the form of payment or services. A subaccount in the amount of $500,000 was allocated within the FIP account for the pilot program. Funding for the pilot program was made possible by the elimination of the Work Transition Period (WTP). WTP exempted earnings from new jobs for the first four months of employment.

Of the $500,000 allocated, the Department has decided to use $100,000 for the Pilot Diversion Program and $400,000 for the Self-Sufficiency Grants Pilot Program. As WTP actually benefited FIP recipients and the pilot programsare funded from former WTP funds, more was allocated toSelf-Sufficiency Grants than Diversion. Both are stillemployment-related and are intended to achieve the same basic goal as WTP, encouraging work over FIP.

These pilot programs give local projects flexibility to better meet family needs. These rules are intended to provide general parameters rather than be prescriptive. This allows county offices the opportunity and flexibility to be more innovative in developing programs designed to more effectively meet local needs and conditions. Flexibility allows for simultaneously trying a broader range of procedures and techniques across pilot sites, as opposed to a single, prescribed methodology, which will better enable the Department to identify and refine best practices that could be incorporated into any continuation or expansion of the programs. County offices will have correspondingly increased responsibility and accountability in administering these programs.

Local pilot projects shall be implemented no earlier than October 1, 1997, and, subject to funding, shall operate until June 30, 1998. Continuation and expansion of the pilot programs shall depend on subsequent legislation. The Department is required to make a report to the legislature by January 15, 1998, on the potential benefits of continuing or expanding the programs. These pilot programs will be limited in scope, affecting a small percentage of the FIP caseload. Results of the pilot programs will be used to determine whether the concept has the potential for a significant positive impact if expanded.

Pilot Diversion Program

The Pilot Diversion Program provides a voluntary alternative to ongoing cash assistance to families from FIP as provided under 441--Chapters 40, 41, and 42. The purpose of the Pilot Diversion Program is to provide immediate, short-term assistance to a family, in lieu of ongoing FIP cash assistance. For example, diversion assistance can be used for a car repair so a family member can get to an existing job and remain self-sufficient. Assistance under this program may postpone or prevent the need to apply for FIP.

The Pilot Diversion Program shall consist of local pilot projects. Only county department offices were eligible to apply for pilot diversion funding and administer pilot proj-ects; however, the county office may work in conjunction with other local resources. Proposals requesting a total of $219,320 were received from the following counties: Cass, Johnson, Linn, Pottawattamie, Story, and Woodbury. A panel of FIP, food stamp, Medicaid, services, data management, child support, workforce development and county general relief representatives reviewed the proposals for completeness and feasibility, and made recommendations to fund those that best met the overall objectives of the pilot. Initial pilot projects shall be implemented in the following counties at these amounts:


*

Cass
$20,000

*
Pottawattamie
$40,000

*
Woodbury
$40,000
Up to three additional pilot projects may be implemented during the program's duration if additional funding becomes available.

Self-Sufficiency Grants Program

Pilot Family Self-Sufficiency Grants Program

The Pilot Family Self-Sufficiency Grants Program is available statewide for payment to families or on behalf of specific families. The family self-sufficiency grants are part of the PROMISE JOBS program. Funding is allocated to each of the 15 PROMISE JOBS service delivery regions, based on a formula that uses the number of FIP cases in the region.

Family self-sufficiency grants shall be authorized for removing an identified barrier to self-sufficiency for a family when it can be reasonably anticipated that the assistance will enable participant families to retain employment or obtain employment in the two full calendar months following the date of authorization of payment. The grants are not to duplicate assistance available under regular PROMISE JOBS policies but are to address barriers to self-sufficiency by meeting expenses that are not approvable under regular PROMISE JOBS policies.

Pilot Community Self-Sufficiency Grants Program

County Department offices and local PROMISE JOBS service delivery regions must apply jointly to receive a community self-sufficiency grant. Either entity can administer the pilot project; however, the Department and PROMISE JOBS are encouraged to work in conjunction with other local resources. Six applications were submitted. Three community self-sufficiency grants were funded in the following counties at these amounts:


*

Scott
$32,798

*
Woodbury
$14,650

*
Centerville Area Cluster
$50,000

(Appanoose, Davis, Lucas,
and Monroe counties)

Community self-sufficiency grants shall establish pilot projects to identify and remove systemic or community barriers to self-sufficiency, helping multiple PROMISE JOBS participant families to obtain or retain employment. This pilot program gives local projects flexibility to better address systemic or community barriers to self-sufficiency for FIP participants such as, but not limited to, communitywide or community-specific transportation needs, unusual child care needs not addressed by existing child care programs such as sick-bay child care or shift child care, parent or other relative care needs, language barrier programs, meeting special employer needs, prework skills training that is not available through PROMISE JOBS, economic development-related community needs, or community needs for work-based learning projects.

These amendments were previously Adopted and Filed Emergency and published in the October 8, 1997, Iowa Administrative Bulletin as ARC 7546A. Notice of Intended Action to solicit comments on that submission was published in the October 8, 1997, Iowa Administrative Bulletin as ARC 7545A.

Eight public hearings were held around the state. Two persons attended. Comments dealt with continuance of the pilot projects beyond the initial year's funding.

The following revisions were made to the Notice of Intended Action:

Subrule 47.5(1), introductory paragraph, was revised to add a reference to 441--Chapters 40 and 42 for clarification.

Subrule 47.5(1), paragraph "g," was revised to delete reference to any other sanction period to simplify policy for clients and staff.

The amendment to rule 441--75.26(249A) has been deleted from this rule making because its substance has been adopted as 441--paragraph 75.57(7)"ae" (ARC 7548A, IAB 10/8/97).

The Council on Human Services adopted these amendments December 10, 1997.

These amendments are intended to implement Iowa Code Supplement section 239B.11 and 1997 Iowa Acts, chapter 208, section 3, subsection 3, paragraph "f," subparagraph (1).

These amendments shall become effective March 1, 1998, at which time the Adopted and Filed Emergency rules are hereby rescinded.

The following amendments are adopted.

ITEM 1. Amend subrule 7.5(2) by adding the following new paragraph "f":

f. The sole basis for denying, terminating or limiting assistance under 441--Chapter 47, Division I, II or III, or 441--Chapter 58 is that funds for the respective programs have been reduced, exhausted, eliminated or otherwise encumbered.

ITEM 2. Amend rule 441--41.25(239) by adding the following new subrule 41.25(9):

41.25(9) Pilot diversion program. Assistance shall not be approved when an assistance unit is subject to the period of ineligibility as described at 441--subrule 47.5(3).

ITEM 3. Amend subrule 41.27(7) by adding the following new paragraph "ai":

ai. Diversion or self-sufficiency grants assistance as described at 441--Chapter 47.

ITEM 4. Adopt the following new chapter:

CHAPTER 47

PILOT DIVERSION AND
SELF-SUFFICIENCY GRANTS PROGRAMS

PREAMBLE

This chapter describes the department of human services pilot diversion and self-sufficiency grants programs. The purpose of these pilot programs is to determine the potential benefits and cost savings of providing immediate, short-term assistance to families in lieu of ongoing assistance under the family investment program (FIP) (diversion), or to meet needs of FIP participants not currently met by existing PROMISE JOBS services (self-sufficiency grants). Assistance under this chapter is intended to enable families to become or remain self-sufficient by removing barriers to obtaining or retaining employment.

DIVISION I

PILOT DIVERSION PROGRAM

PREAMBLE

The pilot diversion program provides a voluntary alternative to ongoing cash assistance to families through the family investment program (FIP) as provided under 441--Chapters 40, 41, and 42. The purpose of the pilot diversion program is to provide immediate, short-term assistance to a family in lieu of ongoing FIP cash assistance. Assistance under this division may postpone or prevent the need to apply for FIP.

441--47.1(239B) Definitions.

"Approved pilot project" means a pilot proposal meeting the conditions in the request for application that was reviewed, approved and funded by the division administrator. Each approved pilot project shall have a local plan, as described at rule 441--47.6(239B), approved by the division administrator. The project shall be limited to families in a specific geographic area detailed in the local plan.

"Candidate" means anyone expressing an interest in the pilot diversion program, or identified by a county office having an approved pilot project as likely to meet the criteria for participating in the project, and who is working with the county office to enroll in the program.

"Cash value" means diversion assistance having direct value to the participant, through cash payment, voucher, or vendor payment. Examples of assistance without direct cash value are mentoring and case management.

"County office" means the county office of the department of human services.

"Department" means the Iowa department of human services.

"Director" means the director of the department.

"Diversion assistance" means any type of assistance provided under this division as described in subrule 47.4(1).

"Division administrator" means the administrator of the division of economic assistance of the department, or the administrator's designee.

"Family" means "assistance unit" as defined at rule 441--40.21(239).

"Family investment program" or "FIP" means the cash grant program provided by 441--Chapters 40, 41 and 42, designed to sustain Iowa families.

"Fiscal agent" means that entity provided funds under an agreement with a county office having an approved pilot project. The fiscal agent shall, at the direction of the county office, issue payments for assistance under this division and maintain accounting records as specified by the agreement.

"Human services area administrator (HSAA)" means the person responsible for delivery of income maintenance and social services programs for a county or multicounty area.

"Immediate, short-term assistance" means assistance provided under this division shall be authorized in less time than it would take to process and issue FIP under normal processing standards described at rule 441--40.25(239), and that it shall not occur on a regular or frequent basis. Participants may receive assistance under this division more than once under the duration of the pilot, but shall not receive assistance so often as to be considered receiving ongoing assistance as under FIP. Time frames and frequency of assistance shall be detailed in the local plan.

"Local plan" means the written policies and procedures and other components for administering an approved pilot project as described at rule 441--47.6(239B).

"Participant" means anyone receiving assistance under this division.

"Pilot proposal" means the project description submitted by the county office prepared within the parameters of a request for application issued by the division administrator. Pilot proposals shall be reviewed by a panel of FIP, food stamp, Medicaid, services, data management, child support, workforce development, and county general relief staff for completeness and feasibility of the project. The panel shall make recommendations for approval of pilot projects to the division administrator. The division administrator shall approve, modify and approve, or deny the proposal.

"Request for application" means a request issued by the division administrator to county offices for proposals to implement a pilot project under this division. The request shall provide background information about the purpose, authorization and funding for the pilot diversion program, as well as general parameters, specific criteria and time frames for submitting a proposal.

"Temporary assistance for needy families" or "TANF" means the program for granting benefits to eligible groups under Title IV-A of the federal Social Security Act as amended by Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. This replaced the aid to families with dependent children program.

"Written funding agreement" means that agreement between a county office having an approved pilot project and a fiscal agent. The agreement shall specify the amount of funds the fiscal agent will receive as well as the responsibilities of both parties. The written funding agreement shall be signed by authorized representatives of the department and the fiscal agent.

441--47.2(239B) Availability of program. The pilot diversion program shall be available only in those counties or other specified areas of the state having an approved pilot project as defined at rule 441--47.1(239B). Assistance shall be provided to those families determined to be likely candidates for success in a program, as determined by the local project staff.

441--47.3(239B) General criteria. Pilot diversion program candidates shall be otherwise eligible for FIP, as set forth at subrule 47.5(1). Participation in the pilot diversion program is voluntary. Further, candidates must have identifiable barriers to obtaining or retaining employment that can be substantially addressed through the immediate, short-term assistance offered by this division, and according to the local plan.

441--47.4(239B) Assistance available. Diversion assistance shall assist participant families to obtain or retain employment. The means of providing the diversion assistance for each project shall be detailed in the local plans.

47.4(1) Types of assistance. Diversion assistance shall be granted through any or all of the following: cash payments, vendor payments, voucher payments, or support services. Specific types of assistance administered by each pilot shall be set forth in the local plans.

47.4(2) Maximum value of assistance. For assistance having a cash value to the family, each pilot shall establish a maximum amount each family may receive during the pilot period. Specific maximum values of assistance administered by each pilot shall be set forth in the local plans.

47.4(3) Frequency of assistance. Diversion assistance is intended to be of an immediate and short-term nature. While a family may be a candidate more than once, this program shall not be considered ongoing assistance. The frequency of assistance for each approved pilot project shall be set forth in the local plans.

47.4(4) Supplanting. Diversion funds shall not be used for services already available through local resources at no cost to the family or to the department.

441--47.5(239B) Relationship to the family investment program and TANF.

47.5(1) Otherwise FIP eligible. Candidates for the diversion program must meet the following FIP eligibility criteria and any other FIP eligibility criteria found in 441--Chapters 40, 41, and 42 included in the local plan of an approved pilot project:

a. Requirements related to a child's age, deprivation and living with specified relative as described at rules 441--41.21(239), 441--41.22(239) and 441--42.22(239).

b. Social security number requirements described at 441--subrule 41.22(13).

c. Residency requirements described at 441--subrule 41.23(1).

d. Citizenship and alien requirements described at 441--subrules 41.23(4) and 41.23(5).

e. Resource requirements described at rule 441-- 41.26(239), particularly the limits for FIP applicants described at 441--paragraph 41.26(1)"e."

f. Income requirements described at rule 441-- 41.27(239). Candidates must pass the 185 percent income test to be considered. Pilot projects may incorporate more restrictive criteria in their local plans, consistent with other income tests for FIP at rule 441--41.27(239).

g. Family members cannot be in a limited benefit period as described at 441--subrule 41.24(8).

47.5(2) Offer to participate declined. Candidates for the pilot diversion program shall not be denied FIP on the basis that they do not want to participate in the pilot program.

47.5(3) Period of FIP ineligibility. Receipt of diversion assistance having a cash value to the family shall result in a period of ineligibility for FIP for that family, including new members moving into the household. Local projects shall have flexibility in determining the period of ineligibility except that the period shall not exceed the number of calendar days arrived at by using the following formula:

diversion
amount


(payment standard for the family size)

_
2


30


For example, if the diversion assistance amount is $500, and the payment standard for the family of three is $426, the period of ineligibility cannot exceed 70 days.

$500


$426

_
2




30



The period of ineligibility shall include the seven-day wait period as described at rule 441--40.26(239), when the household applies at least seven days prior to the end of the period of ineligibility. However, there is no eligibility before the period ends, regardless of application date. If the household does not file an application until after the period of ineligibility, the effective date of eligibility requirements at 441--40.26(239) applies.

The specific period of ineligibility administered by each pilot shall be set forth in the local plans. These periods of ineligibility are applicable statewide, not limited to the local project area providing the assistance. The period of ineligibility shall not apply to diversion family members moving to other families.

47.5(4) Exempt as income. Diversion assistance shall be exempt as income in determining FIP eligibility as described at 441--paragraph 41.27(7)"ai."

47.5(5) Exempt from TANF provisions. Unless determined otherwise by the U.S. Department of Health and Human Services, receipt of diversion assistance shall not subject the family to the following TANF restrictions:

a. The five-year (60-month) lifetime limit.

b. Work participation rates.

c. Cooperation with child support recovery.

441--47.6(239B) Local plans.

47.6(1) Written policies and procedures. Each approved pilot project shall have and maintain written policies and procedures for the project approved by the division administrator. Copies of the plan shall be filed in the county office and with the division administrator. The written policies and procedures shall be available to the public. At a minimum, these policies and procedures shall contain or address the following:

a. What types of services or assistance will be provided, e.g., car repair, licensing fees, and referral to other resources.

b. How determinations will be made that the service or assistance provided meets the program's objective of helping the family obtain or retain employment.

c. How assistance will be provided, e.g., cash payments, vouchers, vendor payments, and procedures for issuing payments.

d. The period of ineligibility for FIP.

e. The maximum (and minimum, if any) values of payments and services.

f. The frequency of receiving assistance.

g. How families most likely to benefit from the program are identified.

h. How families can enroll in the program as a voluntary alternative to FIP. If pilot diversion candidates complete a FIP application, the plan shall include procedures for withdrawing the FIP application. Any forms required to be completed by the family shall be identified by name and form number in the plan.

i. How families will be informed of the availability of the program, its voluntary nature, and how the program works, including periods of ineligibility for FIP.

j. How county offices administering a pilot project will maintain, provide to pilot participants, and otherwise make available, written policies and procedures describing the project.

k. The process used to determine families are "otherwise eligible" for FIP, e.g., having potential project participants complete a standard FIP application.

l. How barriers related to employment are identified.

m. How inquiries will be responded to and assistance provided timely to address barriers to obtaining or retaining employment. The local plans shall specify time frames for taking action steps in administering the pilot project.

47.6(2) Other components. The local plan shall also describe or identify:

a. How staff will be trained to use the program.

b. The anticipated results for families in the pilot project following the receipt of diversion assistance.

c. The methods for evaluation.

d. The scope of evaluation (e.g., what other programs may be included).

e. How measurable results shall be determined.

f. Total funds received and available.

g. Any allocation for direct cash payments to families.

h. Any allocation for vouchers.

i. Any allocation for vendor payments.

j. Any allocation for services.

k. Any allocation for staff costs.

l. Any allocation for evaluation.

m. Any allocation for other expenses.

441--47.7(239B) Notification and appeals.

47.7(1) Notification. All candidate households or households participating in the pilot diversion program under this division shall receive adequate written notice as described at 441--paragraph 7.7(1)"b," using Form 470-0486, Notice of Decision. The written notice shall:

a. Advise whether assistance under this division shall be provided.

b. Give the reason for the decision, if assistance shall not be provided.

c. Give the type, value (if applicable), and frequency of assistance as described at rule 441--47.4(239B), if assistance shall be provided.

d. Give any period of ineligibility for FIP based on the written policies and procedures of the pilot as required by subrule 47.5(3) and described at rule 441--47.6(77GA, ch41), if assistance shall be provided.

e. Cite this division as legal authority for the decision.

f. Advise the household of its appeal rights under 441--Chapter 7 and this division.

47.7(2) Decisions regarding assistance. All decisions regarding assistance available under this division shall be in accordance with the rules in this division and the written policies and procedures of the approved project as required by rule 441--47.6(239B).

47.7(3) Appealable actions. Decisions made by the department affecting clients may be appealed pursuant to 441--Chapter 7. All sections of the local plan applicable to an appeal shall be provided as part of the appeal summary.

47.7(4) Nonappealable actions. Households shall not be entitled to an appeal hearing if the sole basis for denying, terminating or limiting assistance under this division is that diversion funds for the approved pilot project have been reduced, exhausted, eliminated or otherwise encumbered.

441--47.8(239B) Funding, rates and method of payment.

47.8(1) Funded amounts. The division administrator shall determine the amounts allocated to each approved pilot project based on available funding and the amount requested by each project.

47.8(2) Written funding agreements. Each approved pilot project shall enter into a written funding agreement with a third party to act as a fiscal agent to disburse money for purposes of providing assistance as described at subrule 47.4(1) and specified by the local plan. The written funding agreement shall stipulate:

a. The department shall be responsible for authorizing individual payments.

b. The fiscal agent shall be responsible for issuing payments.

c. Both the department and the fiscal agent shall keep and reconcile records for accountability and audit purposes.

d. All agreements shall be signed by the fiscal agent and the human services area administrator. Any agreements for $25,000 or more shall also be signed by the director. Other signatures may be required at the discretion of the division administrator.

e. The time frames for the fiscal agent to process payments.

f. Any other responsibilities of the department and the fiscal agent.

g. Provisions customarily required for agreements or contracts entered into by a state agency.

47.8(3) Rate setting for services not having a cash value. Rates for diversion assistance in the form of services not having a cash value shall be established in accordance with the following procedures:

a. Rates for diversion assistance services shall be established on an individual basis by the human services area administrator (HSAA) or designee.

b. The HSAA or designee shall evaluate proposed payment rates in approving diversion assistance services. Rates approved for providers with a purchase of service contract or Medicaid agreement with the department shall be similar to payment rates for comparable services provided through the purchase of service or Medicaid agreements. Rates for other types of services or supports shall be comparable to prevailing community standards.

c. Payment rates approved by a HSAA or designee for diversion assistance services on behalf of a family shall remain in effect for the time period authorized unless approval for modification is granted by the HSAA or designee.

47.8(4) Payment and billing.

a. The approved pilot project, in accordance with the local plan, shall notify the fiscal agent when diversion assistance payments are approved. This notification shall include a copy of the Authorization for the Department to Release Information, Form 470-2115, signed by the pilot diversion participant. It shall also include the name, mailing address and authorized amount of payment.

b. The fiscal agent shall issue payments within the time frames set forth in the written agreement.

c. The approved pilot project and the fiscal agent shall periodically reconcile their records.

441--47.9(239B) Termination of pilot projects. The division administrator may immediately terminate an approved pilot project if:

1. The project is not fulfilling the conditions of its pilot proposal.

2. The project is at the conclusion of the authorized approval period, unless a new pilot proposal application has been submitted and approved.

3. Funding is reduced, exhausted, eliminated or otherwise encumbered.

441--47.10(239B) Records and reports.

47.10(1) Case records. The provision of diversion assistance shall be documented by the department in the participant's income maintenance case record.

47.10(2) Records retention. All persons who contract with the county office shall maintain all records related to the program for five years. They shall allow federal or state officials access to all records upon request.

47.10(3) Reports.

a. The department shall complete a report to the legislature about the potential benefits for expanding the program. Pilot projects shall submit an interim evaluation report to the division administrator when directed, in preparation for making a recommendation to the legislature. This interim report shall include a description of actual and perceived advantages or benefits of the pilot diversion program to date, to both families and staff.

b. County offices having approved pilot projects shall provide other reports as requested by the division administrator in a manner, format and frequency specified by the administrator.

c. County offices shall be responsible for maintaining records sufficient for audit and tracking purposes.

These rules are intended to implement Iowa Code Supplement section 239B.11 and 1997 Iowa Acts, chapter 208, section 3, subsection 3, paragraph "f," subparagraph (1).

441--47.11 to 47.20 Reserved.

DIVISION II

FAMILY SELF-SUFFICIENCY GRANTS PROGRAM

PREAMBLE

These rules define and structure the department of human services family self-sufficiency grants program. The purpose of the program is to provide immediate and short-term assistance to a FIP participant, if it is reasonable to believe that assistance will enable the family to move to self-sufficiency by removing barriers related to obtaining or retaining employment. If funds were available to remove the barrier to self-sufficiency, a family might reduce the time of dependency on the family investment program (FIP).

Family self-sufficiency grants shall be available for payment to families or on behalf of specific families. The self-sufficiency grants to families shall be part of the PROMISE JOBS program.

441--47.21(239B) Definitions.

"Candidate" means anyone expressing an interest in the family self-sufficiency grants program.

"Department" means the Iowa department of human services.

"Division administrator" means the administrator of the division of economic assistance, or designee.

"Family" means "assistance unit" as defined at 441-- 40.21(239).

"Family investment program" or "FIP" means the program in Iowa that is a cash grant program designed to sustain families as provided by 441--Chapter 41.

"Family self-sufficiency grants" means the payments made to specific PROMISE JOBS participants, to vendors on behalf of specific PROMISE JOBS participants, or for services to specific PROMISE JOBS participants.

"Immediate, short-term assistance" means assistance provided under this division shall be authorized upon determination of need and that it shall not occur on a regular basis.

"Iowa workforce development (IWD) division administrator" means the administrator of the Iowa workforce development division of workforce development center administration, or designee.

"Local plan for family self-sufficiency grants" meansthe written policies and procedures for administering thegrants for families as set forth in the plan developed by thePROMISE JOBS service delivery region as described in rule 441--47.26(239B). The local plan shall be approved by the Iowa workforce development division administrator.

"Participant" means anyone receiving assistance under this chapter.

"PROMISE JOBS contract" means the agreement between the department and Iowa workforce development regarding delivery of PROMISE JOBS services.

"PROMISE JOBS service delivery regions" means the PROMISE JOBS service delivery entities which correspond to the 15 Iowa workforce development regions.

441--47.22(239B) Availability of the family self-sufficiency grants program. The family self-sufficiency grants program shall be available statewide in each of the 15 PROMISE JOBS service delivery regions. Under the PROMISE JOBS contract, Iowa workforce development (IWD) shall allocate the funds available for authorization to each of the service delivery regions based on the allocation standards used for PROMISE JOBS service delivery purposes. The department actually retains the funds which are released through the PROMISE JOBS expense allowance authorization system.

441--47.23(239B) General criteria. Family self-sufficiency grants candidates shall be PROMISE JOBS participants. Participation in the family self-sufficiency grants program is voluntary and shall be based on an informed decision by the family. Further, candidates must have identifiable barriers to obtaining or retaining employment that can be substantially addressed through the assistance offered by family self-sufficiency grants.

441--47.24(239B) Assistance available in family self-sufficiency grants. Family self-sufficiency grants shall be authorized for removing an identified barrier to self-sufficiency when it can be reasonably anticipated that theassistance will enable participant families to retain employment or obtain employment in the two full calendar months following the date of authorization of payment. For example, if a payment is authorized on August 20, it should be anticipated that the participant can find employment in September or October.

47.24(1) Employment does not occur. If employment does not occur in the anticipated two-calendar-month period or if the participant loses employment in spite of the self-sufficiency grant, no penalty is incurred and no overpayment has occurred.

47.24(2) Types of assistance. Family self-sufficiency grants are PROMISE JOBS benefits and shall be authorized through the PROMISE JOBS expense allowance system. The PROMISE JOBS service delivery region shall have discretion to determine those barriers to self-sufficiency which can be considered for family self-sufficiency grants such as, but not limited to, auto maintenance or repair, licensing fees, child care, and referral to other resources, including those necessary to address questions of domestic violence. Warrants may be issued to the participants, to a vendor, or for support services provided to the family. The PROMISE JOBS service delivery region shall have discretion in determining method of payment in each case, based on circumstances and needs of the family.

47.24(3) Limit on assistance. The total payment limit per family is $1,000 per year. A year for a family shall be the 12 fiscal months following the date of authorization of the initial payment for the family. A fiscal month begins and ends in different calendar months.

47.24(4) Frequency of assistance. Family self-sufficiency grants are intended to provide immediateand short-term assistance and must meet the criteria in this rule. While a family may be a candidate more than once and may receive payments in consecutive months in some circumstances, payments shall not be established as regular or ongoing.

47.24(5) Supplanting. Family self-sufficiency grants shall not be used for services already available through department, PROMISE JOBS, or other local resources at no cost.

47.24(6) Relationship to the family investment agreement. Family self-sufficiency grants are separate from the PROMISE JOBS family investment agreement process. While the family investment agreement must be honored at all times and renegotiated and amended if family circumstances require it, no family shall be considered to be choosing the limited benefit plan if the family chooses not to participate in the family self-sufficiency grant program.

441--47.25(239B) Application, notification, and appeals.

47.25(1) Application elements. Each PROMISE JOBS service delivery region shall establish an application form to be completed by the PROMISE JOBS participant and the PROMISE JOBS worker when the participant asks to be a candidate for a family self-sufficiency grant. The application form shall contain the following elements:

a. An explanation of family self-sufficiency grants and the expectations of the program.

b. Identification of the family and the person representing the family.

c. A clear description of the barrier to self-sufficiency to be considered.

d. Demonstration of how removing the barrier is related to retaining or obtaining employment, meeting the criteria from rule 441--47.24(239B).

e. Demonstration of why other department, PROMISE JOBS, or community resources cannot deal with the barrier to self-sufficiency.

f. Anticipated cost of removing the barrier to self-sufficiency.

47.25(2) Notification process. PROMISE JOBS shall use Form SS-1104-0, Notice of Decision: Services, to notify the candidate of the PROMISE JOBS decision regarding the family self-sufficiency grant. Decisions shall be in accordance with policies of this division and the local plan.

a. On approval, the form shall indicate the amount of the benefit that will be issued to the candidate or paid to a vendor, or the service that will be provided to the family.

b. On denial, the form shall indicate the reason for denial.

47.25(3) Appealable actions. The PROMISE JOBS decisions on family self-sufficiency grants may be appealed pursuant to 441--Chapter 7. Copies of the local plan as described at rule 441--47.26(239B) shall be included with the appeal summary.

47.25(4) Nonappealable actions. PROMISE JOBS participants shall not be entitled to an appeal hearing if the sole basis for denying, terminating or limiting assistance from family self-sufficiency grants is that self-sufficiency grant funds have been reduced, exhausted, eliminated, or otherwise encumbered.

441--47.26(239B) Approved local plans for family self-sufficiency grants. Each PROMISE JOBS service delivery region shall create and provide to IWD their writtenpolicies and procedures for administering family self-sufficiency grants. The plan shall be reviewed for required elements and quality of service to ensure that it meets the purpose of the program and approved by the department division administrator and the IWD division administrator. The written policies and procedures shall be available to the public at county offices, PROMISE JOBS offices, and at IWD. At a minimum, these policies and procedures shall contain or address the following:

47.26(1) A plan overview. The plan overview shall contain a general description detailing:

a. Any types of services or assistance which will be excluded from consideration for family self-sufficiency grants in the PROMISE JOBS service delivery region.

b. How determination will be made that the service or assistance requested meets the program's objective of helping the family retain employment or obtain employment.

c. How determination will be made that the proposed family self-sufficiency grant is not supplanting as required at subrule 47.24(5).

d. Services established and any maximum (and minimum, if any) values of payments of the services established by the PROMISE JOBS service delivery region.

e. Verification procedures or standards for documenting barriers, using written notification policies found at rule 441--93.137(249C).

f. The design of the application form.

g. Verification procedures or standards for documenting employment attempts if not already tracked by PROMISE JOBS procedures, using policies found at 441--subrules 93.135(3) and 93.135(4) and at rule 441--93.137(249C).

h. How applications will be processed timely to address barriers to obtaining or retaining employment.

i. Follow-up procedures on participant effort.

j. Procedures for tracking of family self-sufficiency grant authorizations in order to stay within service delivery region allocation.

k. How staff will be trained to administer the program.

47.26(2) Intake and eligibility determination. The policies and procedures shall describe:

a. How families most likely to benefit from self-sufficiency grant assistance are identified.

b. How families can apply for self-sufficiency grant assistance.

c. How families will be informed of the availability of self-sufficiency grant assistance, its voluntary nature, and how the program works.

d. How county offices and PROMISE JOBS offices will maintain, provide to pilot participants, and otherwise make available, written policies and procedures describing the project.

e. Which PROMISE JOBS staff shall make decisions regarding identification of barriers and candidate eligibility for payment and what sign-off or approval is required before a payment is authorized.

47.26(3) A plan for evaluation of family self-sufficiency grants. The evaluation plan shall:

a. Describe tracking procedures.

b. Describe the plan for evaluation (e.g., what elements will be used to create significant data regarding outcomes).

c. Describe how measurable results will be determined.

d. Identify any support needed to conduct an evaluation (e.g., what assistance is needed from department and IWD).

e. Describe which aspects of the project were successful and which were not.

These rules are intended to implement Iowa Code Supplement section 239B.11 and 1997 Iowa Acts, chapter 208, section 3, subsection 3, paragraph "f," subparagraph (1).

441--47.27 to 47.40 Reserved.

DIVISION III

COMMUNITY SELF-SUFFICIENCY
GRANTS PROGRAM

PREAMBLE

These rules define and structure the department of human services community self-sufficiency grants pilot program. The purpose of this pilot program is to provide assistance to a FIP participant family, if it is reasonable to believe that the assistance will enable the family to move to self-sufficiency by removing systemic or communitywide or community-specific barriers related to obtaining or retaining employment. If the barrier to self-sufficiency were removed, a family might reduce the time of dependency on the family investment program (FIP).

Community self-sufficiency grants shall establish a limited number of pilot projects to identify and remove systemic or community barriers to self-sufficiency for targeted PROMISE JOBS participants in a geographic area. County department offices and PROMISE JOBS service delivery regions must apply jointly. Either entity can administer pilot projects; however, the department and PROMISE JOBS may work in conjunction with other local resources. This program gives local projects flexibility to better address systemic or community barriers to self-sufficiency for FIP participants.

441--47.41(239B) Definitions.

"Approved pilot project" means a pilot proposal for a community self-sufficiency grant meeting the conditions in the request for application that has been reviewed and approved by the department division administrator and IWD division administrator and funded through the PROMISE JOBS contract. The project shall be designed to serve families in a specific geographic area, within the PROMISE JOBS service delivery regions determined by IWD, and detailed in the local plan defined in this division.

"Candidate" means anyone identified by a county office having an approved community self-sufficiency grantspilot project as likely to meet the criteria for participating inthe project, and who is working with the county office,PROMISE JOBS office, or other entity, to enroll in the program.

"Community self-sufficiency grants" means the joint department and PROMISE JOBS pilot projects to identify and remove systemic or community barriers to self-sufficiency for PROMISE JOBS participants.

"Department" means the Iowa department of human services.

"Department division administrator" means the administrator of the division of economic assistance, or designee.

"Family" means "assistance unit" as defined at rule 441--40.21(239).

"Family investment program" or "FIP" means the program in Iowa that is a cash grant program designed to sustain families as provided by 441--Chapter 41.

"Iowa workforce development (IWD) division administrator" means the administrator of the Iowa workforce development division of workforce development center, or designee.

"Local plan for community self-sufficiency grants" means the written policies and procedures for identifying and removing community barriers to self-sufficiency as described in rule 441--47.45(239B).

"Participant" means anyone receiving assistance under this division.

"Pilot proposal" means the community self-sufficiency grants project description submitted jointly by the department county office or offices and the PROMISE JOBS service delivery region prepared within the parameters of a request for application issued by the division administrator. The pilot proposal shall be reviewed by a panel of FIP, food stamp, Medicaid, services, data management, child support and PROMISE JOBS staff for completeness and feasibility of the project. Upon recommendation of this panel, the proposals will be referred to the department division administrator and the IWD division administrator. The division administrators may approve, modify and approve, or deny the proposal for a community self-sufficiency grant.

"PROMISE JOBS contract" means the agreement between the department and Iowa workforce development (IWD) regarding delivery of PROMISE JOBS services.

"PROMISE JOBS service delivery regions" means the PROMISE JOBS service delivery entities which correspond to the 15 Iowa workforce development regions.

"Request for application" means a request issued by the division administrator to county offices and PROMISE JOBS service delivery regions for proposals to implement a pilot project under this division. The request shall provide background information about the purpose, authorization and funding for the pilot diversion program, as well as general parameters, specific criteria and time frames for submitting a proposal.

441--47.42(239B) Availability of the community self-sufficiency grants program. The community self-sufficiency grants program shall be available only in those counties, PROMISE JOBS service delivery regions, or other designated areas of the state having an approved pilot project as defined at rule 441--47.41(239B). Under the PROMISE JOBS contract, IWD shall make the funds available through the PROMISE JOBS service delivery regions which are participating in an approved pilot project. This enables the PROMISE JOBS entity to become the fiscal agent for the approved pilot project. It does not restrict the ability of the department and PROMISE JOBS partners in an approved pilot project to assign responsibility for administration of the program to the department or to another entity as part of a local collaboration effort.

441--47.43(239B) General criteria. Community self-sufficiency grants candidates shall be PROMISE JOBS participants. Participation in the community self-sufficiency grants program is voluntary and shall be based on an informed decision by the family. Further, candidates must have identifiable barriers to obtaining or retaining employment that can be substantially addressed through the assistance offered through the services developed and provided according to the local plan for community self-sufficiency grants.

441--47.44(239B) Assistance available under community self-sufficiency grants. Pilot projects developed under community self-sufficiency grants shall be designed to identify and remove systemic or community barriers to self-sufficiency, helping targeted PROMISE JOBS participant families to obtain or retain employment. The means of identifying and addressing the community or systemic barriers to self-sufficiency for each project shall be detailed in the local plans.

47.44(1) Types of assistance. Pilot projects developed under community self-sufficiency grants shall be designed to identify and address community barriers to self-sufficiency for FIP participants such as, but not limited to, communitywide or community-specific transportation needs, unusual child care needs not addressed by existing child care programs such as sick-bay child care or shift child care, parent or other relative care needs, language barrier programs, meeting special employer needs, prework skills trainingthat is not available through PROMISE JOBS, economicdevelopment-related community needs, or community needs for work-based learning projects. Specific types of barriers to be addressed by each pilot shall be set forth in the joint plans as described at rule 441--47.45(239B).

47.44(2) Supplanting. Community self-sufficiency grants shall not be used for services already available through department, PROMISE JOBS, or other local resources at no cost.

441--47.45(239B) Approved pilot project plans. Each approved community self-sufficiency grant pilot project shall have and maintain written policies and procedures for the project in the project department county offices, PROMISE JOBS offices, and offices of any other entities involved in the project. The plan shall be reviewed for required elements and quality of service to ensure that it meets the purpose of the program and approved by the department division administrator and the IWD division administrator. At a minimum, those policies and procedures shall contain or address the following:

47.45(1) A plan overview. The plan overview shall contain a general description detailing:

a. What types of services or assistance will be available under the community self-sufficiency grant project.

b. How determination will be made that the service or assistance provided meets the program's objective of helping FIP participant families obtain or retain employment.

c. How determination will be made that the proposed community self-sufficiency grant project is not supplanting as required at subrule 47.44(2).

d. How assistance will be provided.

e. Any established maximum (and minimum, if any) for availability of services to specific families if limits are necessary.

f. The frequency of receiving assistance under the project, if limits are necessary.

g. How staff will be trained to use the program.

h. Anticipated results for families in the pilot following development of the project design.

47.45(2) Intake and eligibility determination. The policies and procedures shall describe how:

a. Families most likely to benefit from the community self-sufficiency grant project are identified.

b. Families will access the project services.

c. Families will be informed of the availability of the project services, its voluntary nature, and how the program works.

d. Department county offices and PROMISE JOBS offices administering a pilot project will maintain, provide to pilot participants, and otherwise make available, written policies and procedures describing the project.

47.45(3) A plan for evaluation of the project. The evaluation plan shall:

a. Describe methods for evaluation.

b. Describe scope of evaluation (e.g., what other programs may be included).

c. Describe how measurable results will be determined.

d. Identify any support needed to conduct an evaluation.

e. Describe which aspects of the project were successful and which were not.

47.45(4) Budget. The budget shall contain the:

a. Local non-PROMISE JOBS funds to be used in the pilot project.

b. Community self-sufficiency grant funds requested.

c. Allocation for direct cash payments to families.

d. Allocation for vouchers.

e. Allocation for vendor payments.

f. Allocation for services.

g. Allocation for staff costs.

h. Allocation for evaluation.

i. Allocation for other expenses.

441--47.46(239B) Notification and appeals for community self-sufficiency grant projects.

47.46(1) Notification. If services of the project are available to PROMISE JOBS participants without differentiation, formal notice to the participant of approval or denial is not required. If the services of the project involve selecting certain participants to receive services while others with the same need are denied services, then all candidate house-holds or households participating in the community self-sufficiency grant project shall receive written notice advising the candidate households:

a. Whether assistance under the community self-sufficiency grant shall be provided.

b. If assistance shall not be provided, the reason for this decision.

c. If assistance shall be provided, the type, value (if applicable), and frequency of assistance as described in the approved pilot project's plan.

d. Of their appeal rights under 441--Chapter 7 and this rule.

47.46(2) Decisions regarding assistance. All decisions regarding assistance available under a community self-sufficiency grant shall be in accordance with the rules in this chapter and the written policies and procedures of the approved project as required by rule 441--47.45(239B).

47.46(3) Appealable actions. Decisions affecting participants made by the department or PROMISE JOBS may be appealed pursuant to 441--Chapter 7. Copies of the local plan shall be included with the appeal summary.

47.46(4) Nonappealable actions. Households shall not be entitled to an appeal hearing if the sole basis for denying,terminating or limiting assistance under a community self-sufficiency grant is that self-sufficiency grant funds for the approved pilot project have been exhausted or are otherwise encumbered.

441--47.47(239B) Termination of community self-sufficiency grant pilot projects. The division administrator, in conjunction with IWD, may immediately terminate an approved pilot project:

1. That is not fulfilling the conditions of its pilot proposal.

2. At the conclusion of the authorized approval period, unless a new pilot proposal application has been submitted and approved.

3. When funding is reduced, exhausted, eliminated or otherwise encumbered.

441--47.48(239B) Records and reports.

47.48(1) Case records. The provision of services for a participant under the community self-sufficiency grant shall be documented by the department and PROMISE JOBS in each participant's appropriate case record.

47.48(2) Reports. The department shall report to the legislature about the potential benefits for expanding the program. Community self-sufficiency grant pilot projects shall submit an interim evaluation report to the division of economic assistance when directed, in preparation for making a recommendation to the legislature. This interim report shall include a description of actual and perceived advantages or benefits of the community self-sufficiency grant to date, to both families and staff.

These rules are intended to implement Iowa Code Supplement section 239B.11 and 1997 Iowa Acts, chapter 208, section 3, subsection 3, paragraph "f," subparagraph (1).

[Filed 12/10/97, effective 3/1/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7729A

HUMAN SERVICES DEPARTMENT[441]

Adopted and Filed

Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services hereby amends Chapter 83, "Medicaid Waiver Services," appearing in the Iowa Administrative Code.

The Council on Human Services adopted this amendment December 10, 1997. Notice of Intended Action regarding this amendment was published in the Iowa Administrative Bulletin on November 5, 1997, as ARC 7618A.

This amendment adds two counties, Allamakee andO'Brien, to the Elderly Waiver program effective April 1, 1998. This brings the total number of counties served by the waiver to 89.

This amendment is identical to that published under Notice of Intended Action.

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

This amendment shall become effective April 1, 1998.

The following amendment is adopted.

Amend subrule 83.22(1), paragraph "b," as follows:

b. A resident of one of the following counties:

Adair

Davis
Jefferson
Polk
Allamakee
Decatur
Johnson
Pottawattamie
Appanoose
Delaware
Jones
Poweshiek
Benton
Des Moines
Keokuk
Ringgold
Black Hawk
Dickinson
Kossuth
Sac
Boone
Dubuque
Lee
Scott
Bremer
Emmet
Linn
Story
Buchanan
Fayette
Louisa
Tama
Buena Vista
Floyd
Lucas
Union
Butler
Franklin
Madison
Van Buren
Calhoun
Fremont
Marion
Wapello
Carroll
Greene
Marshall
Warren
Cass
Grundy
Mills
Washington
Cedar
Guthrie
Mitchell
Wayne
Cerro Gordo
Hamilton
Monona
Webster
Cherokee
Hancock
Montgomery
Winnebago
Chickasaw
Hardin
Muscatine
Winneshiek
Clarke
Harrison
O'Brien
Woodbury
Clay
Howard
Osceola
Worth
Clayton
Ida
Page
Wright
Clinton
Iowa
Palo Alto

Crawford
Jackson
Plymouth

Dallas
Jasper
Pocahontas

[Filed 12/10/97, effective 4/1/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7743A

NATURAL RESOURCE COMMISSION[571]

Adopted and Filed

Pursuant to the authority of Iowa Code subsection 455A.5(6), the Natural Resource Commission hereby amends Chapter 40, "Boating Speed and Distance Zoning," Iowa Administrative Code.

This amendment will establish a five miles per hour speed zone in the Cedar River at Charles City, beginning at the upper dam and extending upstream 300 feet.

Notice of Intended Action was published in the Iowa Administrative Bulletin on October 8, 1997, as ARC 7576A. No comments were received during the comment period or at the public hearing. There are no changes from the Notice of Intended Action.

This rule is intended to implement Iowa Code section 462A.26.

This amendment will become effective February 4, 1998.

The following amendment is adopted.

Rescind rule 571--40.45(462A) and insert in lieu thereof the following new rule:

571--40.45(462A) Zoning of the Cedar River.

40.45(1) Nashua, Chickasaw County. All vessels operated in a designated zone extending east 150 feet from the intersection of Wabash Street and Charles City Road and north 380 feet shall be operated at a no-wake speed. The city of Nashua shall designate and maintain the no-wake zone with marker buoys approved by the natural resource commission.

40.45(2) Charles City, Floyd County. All vessels operated in a designated zone extending 300 feet upstream from the upper dam shall be operated at a speed not greater than five miles per hour. The city of Charles City shall designate and maintain the five miles per hour speed zone with marker buoys approved by the natural resource commission.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7734A

REVENUE AND FINANCE DEPARTMENT[701]

Adopted and Filed

Pursuant to the authority of Iowa Code section 421.14, the Iowa Department of Revenue and Finance hereby adopts amendments to Chapter 10, "Interest, Penalty, Exceptions to Penalty, and Jeopardy Assessments," Iowa Administrative Code.

Notice of Intended Action was published in IAB, Volume XX, Number 10, on November 5, 1997, page 880, as ARC 7635A.

Iowa Code section 421.7 requires the Director of Revenue and Finance to determine the interest rate for each calendar year. The Director has determined that the rate of interest on interest-bearing taxes arising under Iowa Code Title XVI shall be 10 percent for the calendar year 1998. The interest rate is 2 percent above the average prime rate charged by banks on short-term business loans as published in the Federal Reserve Bulletin for the 12-month period ending September 30, 1997. For the past 12 months the average prime rate was 8 percent.

The 10 percent annual rate is equivalent to an interest rate of 0.8 percent per month on all outstanding taxes. The rate will be applied to all taxes owing or becoming payable on or after January 1, 1998. Under Iowa law, each fraction of a month is considered a whole month when interest is computed. When required to pay interest on taxpayer's refunds, the Department will also pay interest at the 10 percent rate on refunds owing or becoming payable on or after January 1, 1998.

This amendment is identical to that published under Notice of Intended Action.

This amendment will become effective February 4, 1998, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

This amendment is intended to implement Iowa Code section 421.7.

The following amendment is adopted.

Amend rule 701--10.2(421) by adding the following new subrule:

10.2(17) Calendar year 1998. The interest rate upon all unpaid taxes which are due as of January 1, 1998, will be 10 percent per annum (0.8% per month). This interest rate will accrue on taxes which are due and unpaid as of, or after, January 1, 1998. In addition, this interest rate will accrue on tax refunds which by law accrue interest, regardless of whether the tax to be refunded is due before or after January 1, 1998. This interest rate of 10 percent per annum, whether for unpaid taxes or tax refunds, will commence to accrue in 1998.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7735A

REVENUE AND FINANCE DEPARTMENT[701]

Adopted and Filed

Pursuant to the authority of Iowa Code section 421.17, the Iowa Department of Revenue and Finance hereby adopts amendments to Chapter 11, "Administration," Chapter 38, "Administration," Chapter 41, "Determination of Taxable Income," Chapter 51, "Administration," Chapter 57, "Administration," Chapter 67, "Administration," Chapter 81, "Administration," Chapter 86, "Inheritance Tax," Chapter 89, "Fiduciary Income Tax," and Chapter 103, "Hotel and Motel--Administration," Iowa Administrative Code.

Notice of Intended Action was published in IAB, Volume XX, Number 10, on November 5, 1997, page 880, as ARC 7636A.

The purpose of these amendments is to adopt the "Model Recordkeeping and Retention Regulation" report promulgated by the Federation of Tax Administrators' Steering Committee Task Force on EDI Audit and Legal Issues for Tax Administration (March 1996).

Based upon comments received from the Iowa Society of CPA's State Taxation Committee, an explanation of "standard record format" was added to 701--11.4(4)"b"(1)"2" in order to clarify what is meant by "standard record format." Except for this change, the amendments are identical to those published under Notice of Intended Action.

These amendments will become effective February 4, 1998, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

These amendments are intended to implement the "Model Recordkeeping and Retention Regulation" report as promulgated by the Federation of Tax Administrators' Steering Committee Task Force on EDI Audit and Legal Issues for Tax Administration (March 1996).

The following amendments are adopted.

ITEM 1. Amend rule 701--11.4(422,423) by adding the following new subrule 11.4(4) and renumbering existing subrule 11.4(4) as 11.4(5):

11.4(4) Electronic data interchange or EDI technology. The purpose of this subrule is to adopt the "Model Recordkeeping and Retention Regulation" report as promulgated by the Federation of Tax Administrators' Steering Committee Task Force on EDI Audit and Legal Issues for Tax Administration (March 1996). This subrule defines the requirements imposed on taxpayers for the maintenance and retention of books, records, and other sources of information under Iowa Code sections 422.50, 422A.1, and 423.21. It is also the purpose of this subrule to address these requirements where all or part of the taxpayer's records are received, created, maintained, or generated through various computer, electronic, and imaging processes and systems. A taxpayer must maintain all records that are necessary for determination of the correct tax liability as set forth in this subrule and the other subrules within rule 701--11.4(422,423). All required rec-ords must be made available on request by the department or its authorized representatives as provided in Iowa Code sections 422.50 and 423.21. If a taxpayer retains records required to be retained under this subrule in both machine-sensible and hard-copy formats, the taxpayer must make the records available to the department in machine-sensible format upon request of the department. Nothing in this subrule will be construed to prohibit a taxpayer from demonstrating tax compliance with traditional hard-copy documents or reproductions thereof, in whole or in part, whether or not the taxpayer also has retained or has the capability to retain rec-ords on electronic or other storage media in accordance with this subrule. However, as previously stated, this will not relieve a taxpayer of the obligation to comply with making rec-ords available to the department.

a. Definitions. The following definitions are applicable to this subrule:

"Database management system" means a software system that controls, relates, retrieves, and provides accessibility to data stored in a database.

"Electronic data interchange" or "EDI technology" means the computer-to-computer exchange of business transactions in a standardized, structured electronic format.

"Hard copy" means any documents, records, reports, or other data printed on paper.

"Machine-sensible record" means a collection of related information in an electronic format. Machine-sensible rec-ords do not include hard-copy records that are created or recorded on paper or stored in or by an imaging system such as microfilm, microfiche, or storage-only imaging systems.

"Storage-only imaging system" means a system of computer hardware and software that provides for the storage, retention, and retrieval of documents originally created on paper. It does not include any system, or part of a system, that manipulates or processes any information or data contained on the document in any manner other than to reproduce the document in hard copy or as an optical image.

"Taxpayer" as used in this subrule means any person, business, corporation, fiduciary, or other entity that is required to file a return with the department of revenue and finance.

b. Record-keeping requirements--machine-sensiblerecords. A taxpayer that maintains and retains books, records, and other sources of information in the form of machine-sensible records must comply with the following:

(1) General requirements. A taxpayer must comply with the following general requirements regarding the retention of machine-sensible records:

1. Machine-sensible records used to establish tax compliance must contain sufficient transaction-level detail information so that the details underlying the machine-sensiblerecords can be identified and made available to the department upon request. A taxpayer has discretion to discard duplicated records and redundant information provided its responsibilities under this regulation are met.

2. At the time of an examination, the retained records must be capable of being retrieved and converted to a standard record format. The term "standard record format" does not mean that every taxpayer must keep records in an identical manner. Instead, it requires that if a taxpayer utilizes a code system to identify elements of information in each rec-ord when creating and maintaining records, the taxpayer is required to maintain a record of the meaning of each code and any code changes so the department may effectively review the taxpayer's records.

3. Taxpayers are not required to construct machine-sensible records other than those created in the ordinary course of business. A taxpayer that does not create the electronic equivalent of a traditional paper document in the ordinary course of business is not required to construct a traditional paper document for tax purposes.

(2) Electronic data interchange requirements. A taxpayer must comply with the following requirements for records received through electronic data interchange:

1. Where a taxpayer uses an electronic data interchange process and technology, the level of record detail, in combination with other records related to the transactions, must be equivalent to that contained in an acceptable paper record. For example, for sales tax purposes the retained records should contain the following minimal information: vendor name, invoice date, product description, quantity purchased, price, amount of tax, indication of tax status, and shipping details. Codes may be used to identify some or all of the data elements, provided that the taxpayer provides a method which allows the department to interpret the coded information.

2. The taxpayer may capture the information necessary to satisfy the requirements set forth in the preceding paragraph at any level within the accounting system and need not retain the original EDI transaction records provided that the audit trail, authenticity, and integrity of the retained records can be established. For example, a taxpayer using electronic data interchange technology receives electronic invoices from its suppliers. The taxpayer decides to retain the invoice data from completed and verified EDI transactions in its accounts payable system rather than to retain the EDI transactions themselves. Since neither the EDI transaction nor the accounts payable system captures information from the invoice pertaining to product description and vendor name (i.e., they contain only codes for that information), the taxpayer also retains the other records such as its vendor master file and product code description lists and makes them available to the department. In this example, the taxpayer need not retain its original EDI transaction for tax purposes.

(3) Electronic data processing systems requirements. The requirements for an electronic data processing accounting system should be similar to that of a manual accounting system, in that an adequately designed accounting system should incorporate methods and records that will satisfy the requirements of this regulation. In addition, pursuant to Iowa Code sections 421.9, 422.15, 422.36, 422.50, 422.59, 422A.1, and 423.21, the department must have access to the taxpayer's EDI processing, accounting, or other systems for the purposes of verifying or evaluating the integrity and reliability of those systems to provide accurate and completerecords.

(4) Business process information. To verify the accuracy of the records being retained, the taxpayer must comply with the following:

1. Upon the request of the department, the taxpayer shall provide a description of the business process that created the retained records. The description must include the relationship between the records and the tax documents prepared by the taxpayer and the measures employed to ensure the integrity of the records.

2. The taxpayer must be capable of demonstrating the following:


* The functions being performed as they relate to the flow of data through the system;


* The internal controls used to ensure accurate and reliable processing; and


* The internal controls used to prevent unauthorized addition to, alteration of, or deletion of retained records.

3. The following specific documentation is required for machine-sensible records retained pursuant to this regulation:


* Record formats or layouts;


* Field definitions (including a record of any changes in the system or codes with the meaning of all codes used to represent information);


* File descriptions (e.g., data set name); and


* Detailed charts of accounts and account descriptions.

c. Record maintenance requirements. The department recommends, but does not require, that taxpayers refer to the National Archives and Record Administration's (NARA) standards for guidance on the maintenance and storage of electronic records such as the labeling of records, the location and security of the storage environment, the creation of backup copies, and the use of periodic testing to confirm the continued integrity of the records. (The NARA standards may be found at 36 Code of Federal Regulations, Part 1234, July 1, 1995, Edition.) The taxpayer's computer hardware or software must accommodate the extraction and conversion of retained machine-sensible records.

d. Access to machine-sensible records. If a taxpayer retains records required to be retained under this regulation in both machine-sensible and hard-copy formats, the taxpayer must make the records available to the department inmachine-sensible format upon the request of the department.

(1) The manner in which the department is provided access to machine-sensible records may be satisfied through a variety of means that must take into account a taxpayer's facts and circumstances through consultation with the taxpayer.

(2) Access will be provided in one or more of the following manners:

1. The taxpayer may arrange to provide the department with the hardware, software, and personnel resources to access the machine-sensible records.

2. The taxpayer may arrange for a third party to provide the hardware, software, and personnel resources necessary to access the machine-sensible records.

3. The taxpayer may convert the machine-sensible rec-ords to a standard record format specified by the department, including copies of files, on magnetic medium that is agreed to by the department.

4. The taxpayer and the department may agree on other means of providing access to the machine-sensible records.

e. Taxpayer's responsibility and discretionary authority. In conjunction with meeting the requirements of paragraph "b" of this subrule, a taxpayer may create files solely for the use of the department. For example, if a database management system is used, it is consistent with this subrule forthe taxpayer to create and retain a file that contains thetransaction-level detail from the database management system and that meets the requirements of paragraph "b" of this subrule. The taxpayer should document the process that created the separate file to show the relationship between that file and the original records. A taxpayer may contract with a third party to provide custodial or management services of the records. Such a contract will not relieve the taxpayer of its responsibilities under this rule.

f. Alternative storage media. For purposes of storage and retention, taxpayers may convert hard-copy documents received or produced in the normal course of business and required to be retained under this rule to microfilm, microfiche, or other storage-only imaging systems and may discard the original hard-copy documents, provided the rules governing alternative storage media are met. For details regarding alternative storage, see subrule 11.4(2), "Microfilm and related record systems."

g. Effect on hard-copy record-keeping requirements. Except as otherwise provided, the provisions of this subrule do not relieve taxpayers of the responsibility to retain hard-copy records that are created or received in the ordinary course of business as required by existing law and rules. Hard-copy records may be retained on alternative storage media as indicated in paragraph "f" above and subrule 11.4(2).

If hard-copy records are not produced or received in the ordinary course of transacting business (e.g., when the taxpayer uses electronic data interchange technology), hard-copy records need not be created.

Hard-copy records generated at the time of transaction using a credit or debit card must be retained unless all the details necessary to determine correct tax liability relating to the transaction are subsequently received and retained by the taxpayer in accordance with this regulation. Such details include those listed in 11.4(4)"b"(2)"1."

Computer printouts that are created for validation, control, or other temporary purposes need not be retained.

Nothing in this rule will prevent the department from requesting hard-copy printouts in lieu of retained machine-sensible records at the time of examination.

ITEM 2. Amend subrule 38.3(1) to read as follows:

38.3(1) Every individual subject to the tax imposed by Iowa Code section 422.5 (whether or not the individual incurs liability for the tax) and every withholding agent subject to the provisions of Iowa Code section 422.16 shall retain those books and records as required by Section 6001 of the Internal Revenue Code and federal income tax regulation 1.6001-1(e) including the federal income tax return and all supporting federal schedules. For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4).

ITEM 3. Amend rule 701--41.1(422), introductory paragraph, as follows:

701--41.1(422) Verification of deductions required. Deductions from gross income, otherwise allowable, will not be allowed in cases where the department requests the taxpayer to furnish information sufficient to enable it to determine the validity and correctness of such deductions, until such information is furnished. For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4).

ITEM 4. Amend subrule 51.3(1) as follows:

51.3(1) Every corporation subject to the tax imposed by Iowa Code section 422.33 (whether or not the corporation incurs liability for the tax) shall retain its books and records as required by Section 6001 of the Internal Revenue Code and Treasury Regulation Section 1.6001-1(e) including the federal schedules required by 701--subrule 52.3(3). For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4).

ITEM 5. Amend subrule 57.3(1) as follows:

57.3(1) Every financial institution subject to the tax imposed by Iowa Code section 422.60 (whether or not the financial institution incurs liability for the tax) shall retain its books and records as required by Section 6001 of the Internal Revenue Code and federal income tax regulation 1.6001-1(e) including the federal schedules required by 701--subrule 58.3(2). For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4).

ITEM 6. Amend rule 701--67.3(452A), introductory paragraph, as follows:

701--67.3(452A) Taxpayers required to keep records. The records required to be kept by this rule must be preserved for a period of three years and will be open for examination by the department during this period of time. The department, after an audit and examination of the records, may authorize the disposal of the records required to be kept upon written request by the taxpayer. For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4).

ITEM 7. Amend rule 701--81.4(453A), introductory paragraph, as follows:

701--81.4(453A) Records. Every taxpayer subject to the provisions of Iowa Code chapter 453A shall keep, preserve, and make available to the department records for a period of two years. The following is a list of records subject to the provisions of this rule. For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4).

ITEM 8. Amend subrule 86.3(1) as follows:

86.3(1) Audits. Upon filing of the inheritance tax return, the department shall audit and examine it and determine the correct tax due. A copy of the federal estate tax return shall be filed with the inheritance tax return in those estates where federal law requires the filing of a federal estate tax return. The department may request the submission of wills, trust instruments, contracts of sale, deeds, appraisals and such other information as may reasonably be necessary to establish the correct tax due. Tiffany v. County Board of Review, 188 N.W.2d 343, 349 (Iowa 1971). For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4). The person or persons liable for the payment of the tax imposed by Iowa Code chapter 450 shall keep the records relating to the gross and net estate required for federal estate tax purposes under 26 U.S.C. Section 6001 of the Internal Revenue Code and federal regulation Section 20.6001-1.

ITEM 9. Amend subrule 89.2(4) as follows:

89.2(4) Required records. The taxpayer shall keep rec-ords and accounts necessary to substantiate reportable income and deductions. Upon request, the taxpayer shall furnish the department documents, such as copies of tax returns, court orders, trust instruments, annual reports, canceled checks and like information, as may be reasonably necessary to enable the department to determine the correct tax liability. Tiffany v. County Board of Review, 188 N.W.2d 343, 349 (Iowa 1971). For taxpayers using an electronic data interchange process or technology also see 701--subrule 11.4(4).

ITEM 10. Amend rule 701--103.4(422A) as follows:

701--103.4(422A) Retailers required to keep records. Every retailer shall keep and preserve the following records:

1. A daily record of the amount of all cash and time payments and credit sales from the renting of rooms subject to tax under Iowa Code chapter 422A.

2. A record of all deductions and exemptions taken in filing a tax return.

The records required in this rule must be preserved for a period of five years and open for examination by the department during this period of time.

Retailers performing all or part of their record keeping and retention of books, records, and other sources of information under electronic data interchange process or technology, see 701--subrule 11.4(4).

If a tax liability has been assessed and an appeal is pending to the department, state board of tax review or district or supreme court, books, papers, records, memoranda or documents specified in this rule which relate to the period covered by the assessment shall be preserved until the final disposition of the appeal. This provision applies equally to parties to the appeal and other retailers who could claim a refund as a result of the resolution of the appeal.

Failure to keep and preserve adequate records shall be grounds for revocation of the sales tax permit.

This rule is intended to implement Iowa Code sections 422.50 and 422A.1.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7742A

SECRETARY OF STATE[721]

Adopted and Filed

Pursuant to the authority of Iowa Code section 47.6, the Secretary of State hereby adopts amendments to Chapter 21, "Election Forms and Instructions," and Chapter 22, "Alternative Voting Systems," Iowa Administrative Code.

These amendments make technical corrections and clarifications to administrative rules promulgated by the Secretary of State. The amendment to subrule 21.800(3), paragraph "b," subparagraph (1), removes an incorrect statement: "The rate shall be set by the county board of supervisors and shall be uniform throughout the county." This statement is inconsistent with Iowa Code section 422B.1. The amendment to subrule 22.201(2) clarifies a procedure for authenticating the test results removed from a precinct tabulating device. Rule 22.221(52) is amended to remove the erroneous requirement that sample ballots be posted in voting booths. Iowa Code chapter 52 does not require this; the rule was poorly drafted and not intended to make that requirement.

Notice of Intended Action was published in the November 5, 1997, Iowa Administrative Bulletin as ARC 7622A. The adopted amendments are identical to those published under Notice.

These amendments were approved by the Secretary of State on December 11, 1997.

These amendments will become effective on February 4, 1998.

These amendments are intended to implement Iowa Code sections 52.3 and 422B.1.

The following amendments are adopted.

ITEM 1. Amend subrule 21.800(3), paragraph "b," subparagraph (1), as follows:

(1) The rate of the tax. The rate shall be set by the county board of supervisors and shall be uniform throughout the county.

ITEM 2. Amend subrule 22.201(2) as follows:

22.201(2) All tabulating devices shall be tested before each election in accordance with Iowa Code section 52.38. The In addition to any certification produced on the printout, the paper printout produced in testing the tabulating device shall be signed at the end where the tape will be detached from the machine by the person conducting the test and by any observers present at the test. and the The tape shall be torn or cut across the signature, so that a portion of the signature is on the tape remaining on the tabulating device. The test results tape, including a part of the tester's signature, shall be delivered to the precinct election officials to display throughout election day with the report showing all counters have been reset to zero in the precinct. Immediately after the test is finished, the tabulating device, the ballot box, and the door to any compartment containing the programming for the election shall be sealed or locked by the person performing the test.

ITEM 3. Amend rule 22.221(52) to read as follows:

721--22.221(52) Sample ballots and instructions to voters. Sample special paper ballots and printed instructions for casting votes on special paper ballots shall be prominently displayed in each polling place and. Instructions shall also be displayed inside each voting booth. Each special paper ballot shall also include an example of the method of marking the ballot recommended by the manufacturer of the tabulating device. Further instructions shall be provided to any voter who requests assistance in accordance with Iowa Code section 49.90.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7748A

SOIL CONSERVATION DIVISION[27]

Adopted and Filed

Pursuant to the authority of Iowa Code section 161A.4(1), the Division of Soil Conservation hereby amends Chapter 10, "Iowa Financial Incentive Program for Soil Erosion Control," Iowa Administrative Code.

These amendments make corrective changes and eliminate annual emergency rule filings previously necessary for new appropriations. Programs no longer eligible for funding are rescinded, and certain technical specifications are updated. All references to the U.S. Department of Agriculture agency formerly known as the "Soil Conservation Service" are changed to "Natural Resources Conservation Service" or "NRCS."

Notice of Intended Action was published in the Iowa Administrative Bulletin on October 8, 1997, as ARC 7542A.

The amendments herein are identical to those published under Notice of Intended Action.

These amendments implement Iowa Code chapter 161A.

These amendments will become effective on February 4, 1998.

The following amendments are adopted.

ITEM 1. Adopt new subrule 10.32(5) as follows:

10.32(5) Agricultural land converted to nonagricultural land. If land subject to a performance or maintenance agreement is converted to a nonagricultural use that does not require a permanent soil and water conservation practice which has been established with financial incentives, the practice shall not be removed until the owner refunds an amount of the payment received.

a. Amount of refund. The amount of refund will be the same as 10.32(3)"c."

b. Funds will be deposited into an account established by the district.

c. Use of the funds will be limited to providing financial incentives under this chapter.

d. Districts will notify the division when such funds are collected.

ITEM 2. Amend rule 27--10.41(161A), introductory paragraphs, to read as follows:

27--10.41(161A) Appropriations. The department of agriculture and land stewardship, division of soil conservation, has received appropriations for conservation cost sharing since 1973 and appropriations to fund certain incentive programs for soil erosion control since 1979. The Seventy-fifth General Assembly provided $5,918,606 for fiscal 1995. The Seventy-sixth General Assembly provided $5,918,606 for fiscal 1996 and $6,461,850 for fiscal 1997. The Seventy-seventh General Assembly provided $6,461,850 for fiscal 1998. Funds are appropriated each year by the general assembly.

Funds available for distribution for all years are qualified by subrule 10.41(7).

The division has four years to encumber or obligate these funds before they revert to the state's general fund. This rule addresses the distribution of these appropriations among the incentive programs for soil erosion control established by the division in accordance with the authorities extended in Iowa Code chapter 161A. The rule is also consistent with the restrictions imposed by language of the appropriations bills.

Except for the programs authorized in subrules 10.41(2), 10.41(4), 10.41(5), 10.41(7) and 10.41(8), these funds shall not be used alone or in combination with other public funds to provide a financial incentive payment greater than 50 percent of the approved cost for permanent soil conservation practices.

ITEM 3. Amend subrule 10.41(1) to read as follows:

10.41(1) Voluntary program. Ninety percent of the appropriation is to be used for cost sharing to provide state funding of not more than 50 percent of the approved cost of permanent soil and water conservation practices or for incentive payments to encourage management practices to control soil erosion on land that is now row-cropped.

Not more than 30 percent of a district's original and supplemental allocation may be used for the establishment of management practices listed in subrules 10.82(1) and 10.82(2).

The commissioners of a district may allocate voluntary program funds for the restoration of permanent soil and water conservation practices which are damaged or destroyed because of a disaster emergency. Funds may be used for construction, reconstruction, installation, or repair of proj-ects. The commissioners must determine that funds are necessary to restore permanent practices to prevent erosion in excess of applicable soil loss limits caused by the disaster emergency. Funds cannot be used unless a state of disaster emergency pursuant to a proclamation as provided in Iowa Code section 29C.6 has been declared. Funds can be used only if federal or state disaster emergency funds are not adequate. Funds do not have to be allocated on a cost-share basis. Districts are required to report to the division regarding restoration projects and funds allocated for projects.

ITEM 4. Rescind and reserve rule 27--10.42(312).

ITEM 5. Rescind and reserve rule 27--10.55(161A,312).

ITEM 6. Rescind and reserve rule 27--10.58(161A).

ITEM 7. Amend subrule 10.60(1) to read as follows:

10.60(1) Voluntary.

a. The state will cost-share 50 percent of the cost certified by the certifying technician as being reasonable, proper, and incurred by the applicant in voluntarily installing approved, permanent soil conservation practices. Eligible costs include machine hire or use of the applicant's equipment, needed materials delivered to and used at the site, and labor required to install the practice.

b. For currently funded fiscal years, the division will make one-time payments of up to $10 per acre for no-tillage, ridge-till and strip-till; $6 per acre for contouring; and $15 per acre for contour strip-cropping 50 percent of the cost up to $25 per acre for strip-cropping, field borders and filter strips.

c. Funding for the restoration of permanent practices damaged or destroyed because of a disaster (see 10.41(1)) does not have to be allocated on a cost-share basis.

ITEM 8. Rescind subrules 10.60(8) and 10.60(9).

ITEM 9. Amend subrule 10.74(5), paragraph "a," as follows:

a. Maintenance agreement required. As a condition for receipt of any financial incentives funds for permanent soil and water conservation practices, the owner of the land on which the practices have been installed shall agree to maintain those practices for a minimum of 20 years after the date of the agreement, except for fencing installed under the woodland fencing program which shall be maintained for a period of 10 years except for practices Planned Grazing System (556) and Pasture and Hayland Planting (512) which shall be maintained for a period of ten years.

ITEM 10. Amend subrule 10.81(3), paragraph "d," to read as follows:

d. Where a livestock watering pipe is installed in a grade stabilization structure. Cost share is limited to $250 for the watering pipe and valves. Payment will be made only if the structure is fenced.

ITEM 11. Amend subrule 10.82(2) to read as follows:

10.82(2) Temporary practices.

a. Iowa till. Reduced tillage practices, used in conjunction with row crop production to reduce sediment damage and soil depletion caused by wind or water. Critical area planting. Establishment of vegetative planting to control sediment movement from severely eroding areas by stabilizing the soil. These plantings would include vegetation such as trees, shrubs, vines, grasses or legumes.

b. Contouring. Farming sloping cultivated land in such a way that tillage operations, planting and cultivating are done on the contour. This includes following established grades of terraces, diversions, or contour strips.

c. Contour strip-cropping. Growing crops in a systematic arrangement of strips or bands on the contour to reduce water erosion. The crops are arranged so that a strip of grass or close-growing crop is alternated with a strip of clean-tilled crop or fallow or a strip of grass is alternated with a close-growing crop.

d. Field border. A strip of perennial vegetation established at the edge of a field, to be used as a turn area in lieu of end-rows up and down hill to control erosion and provide wildlife food and cover.

e. Filter strips. A strip or area of vegetation for removing sediment, organic matter and other pollutants from runoff.

ITEM 12. Rescind and reserve subrule 10.82(3), paragraphs "a" and "k," as follows:

a. Critical area planting. Establishment of vegetative planting to control sediment movement from severely eroding areas by stabilizing the soil. These plantings would include vegetation such as trees, shrubs, vines, grasses or legumes.

k. Fencing. Fencing means enclosing, dividing, or separating an area of forest land with a suitable permanent structure that acts as a barrier to livestock. This practice shall only be eligible for funding under the woodland fencing program established in rule 27--10.53(161A).

ITEM 13. Amend rule 27--10.84(161A,312) to read as follows:

27--10.84(161A,312) Specifications. These specifications and the general conditions, rule 27--10.81(161A,312), shall be met in all cases. In each specification the listed USDA-Soil Conservation Service Natural Resources Conservation Service specification in force on the date indicated in these rules or the Department of Natural Resources Forestry Technical Guide shall be used. To the extent of any inconsistency between the general conditions and the specifications, the general conditions shall control.

10.84(1) Critical area planting. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 342, April 1981 October 1988.

10.84(2) Diversion. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 362, October 1982 June 1987.

10.84(3) Field windbreak. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV(D), Woodland Tree Planting, Code No. 612, February 1983 May 1992, Field Windbreak, Code No. 392, June 1981 February 1992.

10.84(4) Grade stabilization structure. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Grade Stabilization Structure, Code No. 410, June 1984 January 1986.

10.84(5) Grass strips. Grass strips shall be perennial vegetation planted parallel to road segments designated as qualified in the WECIP. The strips shall have a minimum width of 50 feet and the maximum width to be funded shall be 50 feet. The grass strip shall not be used as a road and grazing and hay production will not be permitted. Seeding and fertilizer rates shall be in accordance with the specifications contained in USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 512, Pasture and Hayland Planting, September 1981 August 1990. There shall be no nurse crop. The strip may be mowed one time after July 15 of the seeding year for weed control.

10.84(6) Grassed waterway or outlet. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Grassed Waterway, Code No. 412, November 1981 April 1990.

10.84(7) Iowa Till. All operations shall be on a reasonable contour. The ground surface shall have at least 50 percent cover by crop residue material after planting. The line transect method of measuring as described in USDA Agricultural Handbook No. 537, December 1978, page 50, shall be used in determining percent ground cover.

10.84(8) Pasture and hayland planting. USDA-SCS NRCS-IOWA, Technical Field Guide, Section IV, Code No. 512, September 1981 August 1990.

10.84(9) Terrace. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 600, January 1984 May 1991.

10.84(10) Underground outlet. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 620, November 1983 March 1991.

10.84(11) Water and sediment control basin. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 638, November 1983.

10.84(12) No-till planting. Seedbed preparation and planting are completed in one operation by a coulter mounted in front of the planter. Starter fertilizers and pesticides are usually applied during the planting operation. Soil disturbance is 10 percent or less depending on the type of coulters and openers used. Contact herbicides are often used to burn down competing vegetation growing at planting time. An early application of a preemergence herbicide may lessen the need for the contact burn-down application. Preemergence herbicide may lessen the need for the contact burn-down application. Preemergence or postemergence herbicides are used to control weeds during the growing season. Cultivation may be performed as needed.

Contouring is necessary on slopes that normally require contouring with conventional tillage.

10.84(13) Ridge-till. Seed preparation and planting are completed in one operation on ridges 8-9 inches in height. Crop residue may be left undisturbed or chopped or shredded. Planting is completed by scalping the top of the ridge with a sweep or disk. Less than one-third of the field area is disturbed. Band application of preemergence herbicides along with mechanical cultivation normally controls most weed species. Ridges are reconstructed during the last cultivation of the season.

On the slopes exceeding 4 percent, ridges are to be constructed on the contour to avoid excessive erosion. No-till planting on ridges is also included in this category. No more than 10 percent of the surface area is disturbed with this type of planting.

Contouring is necessary on slopes that normally require contouring with conventional tillage.

10.84(14) Strip-till. Seedbed preparation and planting are completed in one operation by a rotary tillage tool or other similar type equipment. Crop residue may be left undisturbed or chopped or shredded. Planting is completed by tilling a seedbed which is no more than one-third of the field area. Weed control is accomplished with a combination of mechanical cultivation and herbicides.

Contouring is necessary on slopes that normally require contouring with conventional tillage.

10.84(15) Contouring. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV(A), Code No. 330, February 1972 November 1991.

10.84(16) Contour strip-cropping. USDA-SCS NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 585-A, February 1976 November 1991.

10.84(17) Fencing. USDA-SCS-IOWA, Field Office Technical Guide, Section IV, Code No. 382-1, January 1984.

10.84(18) Filter strips. USDA-NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 393, January 1989.

10.84(19) Field borders. USDA-NRCS-IOWA, Field Office Technical Guide, Section IV, Code No. 386, January 1987.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7749A

SOIL CONSERVATION DIVISION[27]

Adopted and Filed

Pursuant to the authority of Iowa Code section 161A.4(1), the Division of Soil Conservation hereby amends Chapter 12, "Water Protection Practices--Water Protection Fund," Iowa Administrative Code.

These amendments make corrective changes and update technical specifications. Payment methods and the accompanying rates are clarified. All references to the U.S. Department of Agriculture agency formerly known as the "Soil Conservation Service" are changed to "Natural Resources Conservation Service" or "NRCS".

Notice of Intended Action was published in the Iowa Administrative Bulletin on October 8, 1997, as ARC 7543A.

These amendments are identical to those published under Notice of Intended Action.

These amendments are intended to implement Iowa Code chapter 161A.

These amendments will become effective on February 4, 1998.

The following amendments are adopted.

ITEM 1. Amend 27--Chapter 12 by striking references to 467A and 467F and inserting 161A and 161C, respectively.

ITEM 2. Amend rule 27--12.50(161C) to read as follows:

27--12.50(161C) Water protection practices account. This part defines procedures for allocation, recall and reallocation of water protection practices funds to soil and water conservation districts and to the division's reserve fund. These funds shall not be used alone or in combination with other public funds to provide a financial incentive payment greater than 75 percent of the approved cost for practices listed in 12.77(1) and 12.84(161C), or 50 percent in 12.77(1), 12.77(2) and 12.77(3).

ITEM 3. Amend rule 27--12.76(161C) to read as follows:

27--12.76(161C) Specifications. In addition to specifications defined herein, rule 27--10.84(161A) specifications shall apply.

12.76(1) Filter strips. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 393, January 1989 1988.

12.76(2) Field borders. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 386, January 1987 July 1988.

12.76(3) Waste management systems. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 312, January 1989 1997.

12.76(4) Agricultural drainage well closure. Iowa Department of Natural Resources, Technical Information Series 15, 1988, Guidelines for Plugging Abandoned Water Wells.

12.76(5) Agricultural drainage well plugging and cistern removal. Iowa Department of Natural Resources, Technical Information Series 15, 1988, Guidelines for Plugging Abandoned Water Wells.

12.76(6) Tile outlet from plugged agricultural drainage wells. Underground Outlet, USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 620, January 1989 March 1991.

12.76(7) Subsurface drain. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 606, February 1986.

ITEM 4. Amend subrule 12.77(1) to read as follows:

12.77(1) Cost-share rates. Cost-share rates for practices designated in rule 12.72(161C) shall be 75 50 percent of the actual or estimated cost of installation, whichever is less, except for strip-cropping contour and field borders. Cost-share rates for 12.72(3), field borders, and 12.72(5), strip-cropping contour, shall be a one-time payment of up to$15 per acre 50 percent of the cost up to $25 per acre.

ITEM 5. Amend rule 27--12.82(161C), introductory paragraph, to read as follows:

27--12.82(161C) Eligible practices. Land enrolled in the Conservation Reserve Program is only eligible for woodland establishment, management and protection practices. All practices listed in this part are available to all other eligible landowners within Iowa soil and water conservation districts. All practices listed below are permanent.

ITEM 6. Adopt new subrule 12.82(6) and renumber existing subrules 12.82(6) to 12.82(8) as 12.82(7) to 12.82(9) as follows:

12.82(6) Riparian forest buffer. To establish an area of trees or shrubs, or both, located adjacent to and up-gradient from water bodies.

ITEM 7. Amend rule 27--12.83(161C) to read as follows:

27--12.83(161C) Specifications. These specifications and the general conditions shall be met in all cases. In each specification the listed USDA-Soil Conservation Service Natural Resources Conservation Service specification in force on the date indicated in these rules or the Department of Natural Resources Forestry Technical Guide shall be used.

12.83(1) Farmstead windbreak. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 380, January 1989 April 1992.

12.83(2) Field windbreak. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 392, January 1989 February 1992.

12.83(3) Timber stand improvement. Department of Natural Resources Forestry Technical Guide.

12.83(4) Tree planting. Department of Natural Resources Forestry Technical Guide.

12.83(5) Site preparation natural regeneration. Department of Natural Resources Forestry Technical Guide.

12.83(6) Riparian forest buffer. USDA-NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 392, Interim.

12.83(6)(7) Rescue treatment. Department of Natural Resources Forestry Technical Guide.

12.83(7)(8) Planned grazing systems. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 556, November 1986.

12.83(8)(9) Conservation cover. USDA-SCS NRCS-Iowa, Field Office Technical Guide, Section IV, Code No. 327, January 1988 March 1997.

ITEM 8. Amend subrule 12.84(4) to read as follows:

12.84(4) Tree planting.

a. 75 percent of the actual cost, not to exceed $365 per acre, for tree planting including the following:

(1) Establishing ground cover,

(2) Trees and tree planting operations,

(3) Weed and pest control.,

(4) Mowing, disking, and spraying.

b. 75 percent of actual cost, not to exceed $120 per acre for woody plant competition control.

c. Actual cost, not to exceed the lesser of $8 per rod or $45 per acre protected, for permanent fences, to protect planted area from grazing, excluding boundary and road fencing.

ITEM 9. Adopt new subrule 12.84(6) and renumber existing subrules 12.84(6) to 12.84(8) as 12.84(7) to 12.84(9) as follows:

12.84(6) Riparian forest buffer. 75 percent of actual cost or estimated cost, whichever is less.

ITEM 10. Amend renumbered subrule 12.84(8) to read as follows:

12.84(8) Planned grazing systems. 75 percent of actual cost or estimated cost whichever is less. Does not include boundary fences or road fences. Fencing limited to $8 per rod. Development of a water source is not eligible.

ITEM 11. Adopt new rule 27--12.85(161C) as follows:

27--12.85(161C) Special practice and cost-share procedures eligibility. Districts may submit requests to establish eligible practices, develop cost-share procedures, experiment with new conservation practices and explore new technologies with approval of the state soil conservation committee.

12.85(1) District designation. Districts shall submit to the SSCC the description of their intentions which could include:

a. Type of practice.

b. Cost-share rate.

c. Resource to be protected.

d. Estimated cost.

e. Landowner interest.

f. Technology to be addressed.

12.85(2) State soil conservation committee evaluation. The state soil conservation committee shall examine the district submission under 12.85(1) with respect to the following criteria.

a. The public and current use of the resource to be protected.

b. The nature, extent, and severity of the problem to be addressed.

c. The degree to which the request focuses practice or technology application in a manner that will achieve a soil erosion or water quality benefit from the funds available.

d. Whether a specification can be developed by NRCS or DNR for the new technology or practice.

12.85(3) Review time limit. The state soil conservation committee shall approve or disapprove the district designation within 90 days of receipt by the division.

12.85(4) Disapproval of designation. In the event of disapproval of district requests, the state soil conservation committee shall inform the district of the reason for disapproval.

This rule is intended to implement Iowa Code chapters 161A and 161C.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.

ARC 7750A

SOIL CONSERVATION DIVISION[27]

Adopted and Filed

Pursuant to the authority of Iowa Code section 161A.4(1), the Division of Soil Conservation adopts Chapter 30, "Agricultural Drainage Wells -- Alternative Drainage System Assistance Program," Iowa Administrative Code.

These rules implement 1997 Iowa Acts, chapter 193, and chapter 215, section 16, which provide financial assistance to landowners in closing certain agricultural drainage wells and developing alternative drainage outlets to surface watercourses.

Notice of Intended Action was published in the Iowa Administrative Bulletin on October 22, 1997, as ARC 7601A.

These rules establish the procedures and eligibility criteria for landowners to participate in and receive financial assistance from the Agricultural Drainage Wells -- Alternative Drainage System Assistance Program established in 1997 Iowa Acts, chapter 193, and chapter 215, section 16. The alternative drainage system projects financially assisted through the program will be developed on a watershed basis through the establishment of drainage district outlet improvements under Iowa Code chapter 468. Applications for financial assistance will be submitted to the Division by the affected drainage districts. The Division will allocate funds to eligible watershed projects. Financial assistance under the program will be distributed by the drainage districts to reduce the assessments to eligible landowners under the adopted classifications of the districts. Financial assistance funds will be distributed in accordance with 28E agreements between the drainage districts and the Division.

Changes were made in subrule 30.50(6) to clarify that closure of all agricultural drainage wells within a watershed area will be required in order to be eligible for financial assistance from the fund. Except for changes in 30.50(6), these rules are identical to those published under Notice of Intended Action.

These rules implement 1997 Iowa Acts, chapter 193, and chapter 215, section 16.

These rules will become effective February 4, 1998.

The following new chapter is adopted:

CHAPTER 30

AGRICULTURAL DRAINAGE WELLS--
ALTERNATIVE DRAINAGE SYSTEM
ASSISTANCE PROGRAM

27--30.1 to 30.9 Reserved.

27--30.10(159,161A,455H) Authority and scope. This chapter establishes procedures and standards to be followed by the division of soil conservation, Iowa department of agriculture and land stewardship, in accordance with the policies of the state soil conservation committee in implementing the agricultural drainage wells -- alternative drainage system assistance program established by 1997 Iowa Acts, chapter 193, and chapter 215, section 16. This program provides financial assistance for closing agricultural drainage wells and constructing alternative drainage systems that are part of a drainage district. These rules establish the assistance program, provide for the allocation of assistance funds, and establish procedures and standards for eligibility to receive assistance under the program.

27--30.11(159,161A,455H) Rules are severable. If any provision of a rule or subrule or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the rule or subrule which can be given effect without invalid provision or application, and to this end the provisions of these rules or subrules are severable.

27--30.12 to 30.19 Reserved.

27--30.20(159,161A,455H) Definitions. When used in this chapter:

"Agricultural drainage well" means a vertical opening to an aquifer or permeable substratum which is constructed by any means including but not limited to drilling, driving, digging, boring, augering, jetting, washing, or coring, and which is capable of intercepting or receiving surface or subsurface drainage water from land directly or by a drainage system.

"Agricultural drainage well area" means an area of land where surface or subsurface water drains into an agricultural drainage well directly or through a drainage system connecting to the agricultural drainage well.

"Alternative drainage system" means a drainage system constructed as part of a drainage district in order to drain surface or subsurface water from land due to the closing of an agricultural drainage well.

"Designated agricultural drainage well area" means an agricultural drainage well area in which there is located an anaerobic lagoon or earthen manure storage basin required to obtain a construction permit by the department of natural resources.

"Division" means the division of soil conservation of the department of agriculture and land stewardship.

"Drainage district" means a drainage district established pursuant to Iowa Code chapter 468.

"Drainage system" means tile lines, laterals, surface inlets, or other improvements which are constructed to facilitate the drainage of land.

"Earthen storage structure" means an earthen cavity,either covered or uncovered, including but not limited to an anaerobic lagoon or earthen manure storage basin which is used to store manure, sewage, wastewater, industrial waste, or other waste regulated by the department of natural resources, if stored in a liquid or semiliquid state.

"Land" means land which is used or which is suitable for use for any purpose, if the land is located within an agricultural drainage well area which includes land used or suitable for use in farming.

"Noncrop acres" means a land tract as identified in the assessment schedule in the report of the classification commission adopted at public hearing pursuant to Iowa Code sections 468.44 through 468.46 which is not predominantly used for row crop production. Areas used for wetland mitigation shall not be considered in determining predominant land use.

"Watershed area" means the benefited land area of a drainage district.

27--30.21 to 30.29 Reserved.

27--30.30(159,161A,455H) Appropriations. Funds for the agricultural drainage wells--alternative drainage system assistance program are appropriated to the division of soil conservation, Iowa department of agriculture and land stewardship, beginning July 1, 1997. The following amounts, or so much thereof as is necessary, have been appropriated to the alternative drainage system assistance fund:

1. For the fiscal year beginning July 1, 1997, and ending June 30, 1998: $1,500,000.

2. For the fiscal year beginning July 1, 1998, and ending June 30, 1999: $1,500,000.

Moneys shall be used to provide financial assistance under the program and to defray expenses by the division in administering the program. However, not more than 1 percent of the fund may be used to defray administrative expenses of the division. Moneys which are unobligated at the end of the fiscal year shall not revert but will be available during subsequent fiscal years of the program. Moneys earned as income, including interest, from the fund shall remain in the fund until expended, notwithstanding Iowa Code section 12C.7.

27--30.31(159,161A,455H) Other funds. Funds for the agricultural drainage wells--alternative drainage system assistance program may be from moneys available to and obtained or accepted by the division or the state soil conservation committee from the United States or private sources for placement in the fund.

27--30.32 to 30.39 Reserved.

27--30.40(159,161A,455H) Allocation of funds. Funds will be allocated by the division for specific agricultural drainage well closure and alternative drainage system improvement projects. Allocations shall be 75 percent of the estimated cost of installing the alternative drainage system improvements as defined by Iowa Code section 468.3, except as limited by the total allocation provision of subrule 30.40(2). Allocations of financial assistance funds will be in accordance with either subrule 30.40(1) or subrule 30.40(2).

30.40(1) Allocation by a priority system based on contamination potential. Funds will be allocated by the division for project applications which meet all program requirements set forth in these rules and both of the following priority criteria:

a. The proposed project provides for closure of agricultural drainage wells in watershed areas which include one or more designated agricultural drainage well area(s), and

b. The proposed alternative drainage system will provide an alternative drainage outlet to allow for closing all agricultural drainage wells in the watershed area.

30.40(2) Allocation for a single drainage improvement project which will allow for the closing of 30 or more agricultural drainage wells. Funds will be allocated by the division for a single drainage improvement project which will provide alternative drainage outlets to allow for the closing of 30 or more agricultural drainage wells constructed by a drainage district established under Iowa Code section 468.22 on or after July 1, 1987, and prior to July 1, 1997, for which a construction contract for the project is successfully let prior to March 1, 1998.

The allocation under this subrule shall not exceed $500,000 for the fiscal year beginning July 1, 1997, and ending June 30, 1998, and $500,000 for the fiscal year beginning July 1, 1998, and ending June 30, 1999, for a total allocation not to exceed $1 million.

30.40(3) Application for fund allocation. Application for fund allocation to a new drainage district shall be submitted to the division by the board of supervisors on behalf of eligible owners of land following receipt of petition to establish a drainage district pursuant to Iowa Code section 468.8 and before the hearing on establishment pursuant to Iowa Code section 468.22. Application for fund allocation to an existing drainage district shall be submitted to the division by the district board on behalf of eligible owners of land prior to the hearing on improvement pursuant to Iowa Code section 468.126. The application for fund allocation shall be in writing and shall identify:

a. Approximate location and boundary of the watershed area served by the proposed project.

b. Approximate watershed drainage area.

c. Expected number of agricultural drainage wells to be closed.

d. Location of any anaerobic lagoon or earthen manure storage basin required to obtain a construction permit by the department of natural resources.

e. Preliminary cost estimate for the alternative drainage system.

f. Anticipated project time line.

g. Anticipated or actual date of establishment of the drainage district under Iowa Code section 468.22.

27--30.41 to 30.49 Reserved.

27--30.50(159,161A,455H) Eligibility. Financial assistance from the program will be limited by the criteria of this rule.

30.50(1) Cost-share rate. Cost-share payments from the fund shall not exceed 75 percent of the estimated cost or 75 percent of the actual cost of the project, whichever is less.

30.50(2) Eligible costs. Project costs eligible for financial assistance cost sharing from the fund are:

a. Construction costs normally incidental to the costs of a drainage district including, but not limited to:

(1) Tile or channel mains.

(2) Laterals.

(3) Associated excavations, backfilling, tile line cradling materials, and junctions.

b. Cost of improvements as defined by Iowa Code section 468.3 including, but not limited to:

(1) Administrative, legal and publication costs.

(2) Classification.

(3) Engineering design, construction inspection and contract administration.

(4) Financing costs.

(5) Damages.

c. Costs of wetland mitigation required under federal law.

d. Costs of connection lines from mains or laterals of the drainage district to the terminus of in-field drains at the existing wellheads of the agricultural drainage wells.

e. Costs of closure and plugging of agricultural drainage wells in accordance with 567 IAC 39, Requirements for Properly Plugging Abandoned Wells, or by an alternative method approved by the department of natural resources.

f. Costs for removal of agricultural drainage well cisterns in accordance with applicable requirements of the department of natural resources.

30.50(3) Project design and construction. The alternative drainage system of the drainage district shall be designed to meet standard engineering practice for drainage district improvements and be approved by the division. Construction shall be in accordance with the design and standard construction practice for drainage district improvements.

30.50(4) Noncrop acres. Noncrop acres within a designated agricultural drainage well area shall not be eligible to benefit from the program.

30.50(5) Eligible persons. A person who owns an interest in land within a designated agricultural drainage well area shall not be eligible to participate in the program, if the person is any of the following:

a. A party to a pending legal or administrative action, including a contested case proceeding under Iowa Code chapter 17A, relating to an alleged violation involving an animal feeding operation as regulated by the department of natural resources, regardless of whether the pending action is brought by the department or the attorney general.

b. Classified as a habitual violator for a violation of state law involving an animal feeding operation as regulated by the department of natural resources.

30.50(6) Closure of agricultural drainage wells. Closure of all agricultural drainage wells located within the watershed area served by the alternative drainage system of the drainage district is required for landowners to be eligible for financial assistance from the fund.

30.50(7) Compliance with applicable statutes. The alternative drainage system project of the drainage district shall be conducted in compliance with all applicable statutes, rules and requirements.

27--30.51 to 30.59 Reserved.

27--30.60(159,161A,455H) Payment of financial assistance. Financial assistance under the program will be distributed to eligible landowners by the drainage district, under the terms of a 28E agreement between the division and the drainage district.

30.60(1) Distribution to eligible landowners under adopted classification. Funds will be transferred by the division for all eligible costs of the project under the program to the drainage district for distribution to eligible landowners in accordance with the adopted classification of the district. The financial assistance shall be distributed to reduce the actual assessment to eligible landowners under the adopted classification.

30.60(2) Time of payment. Financial assistance funds shall be transferred to the drainage district to reimburse actual expenditures of the district. The fund transfer to the drainage district will be in accordance with the terms of the 28E agreement.

27--30.61 to 30.69 Reserved.

27--30.70(159,161A,455H) Compliance procedures and reviews. This rule establishes procedures for compliance actions taken by the division when it is found that program requirements or funding agreements are not being carried out.

30.70(1) Compliance with program requirements or funding agreements. Upon determination that program requirements or funding agreements have not been complied with, the division shall notify the affected landowners or drainage district of the lack of compliance and establish a schedule for achieving compliance with applicable requirements. In the event compliance is not achieved, no financial assistance from the program shall be provided. If financial assistance payments have previously been made, the division may order the recipient to pay back the division the total amount of the financial assistance payment in accordance with a schedule determined by the division.

30.70(2) Compliance reviews. A landowner or drainage district that has been determined ineligible for financial assistance or has been ordered to pay back to the division financial assistance payments because of lack of compliance with program requirements or funding agreements may seek review of the compliance action taken by the division. The affected landowner or drainage district may address concerns about the compliance action in writing to the director of the division. Upon receipt of such concern, the director shall review the actions taken and shall communicate the findings of the compliance review to the complainant. The director's decision following review of the actions taken shall constitute final agency action for purposes of invoking the judicial review provisions of Iowa Code chapter 17A.

These rules implement 1997 Iowa Acts, chapter 193, and chapter 215, section 16.

[Filed 12/12/97, effective 2/4/98]

[Published 12/31/97]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 12/31/97.


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