Notice, Commercial feed and pet food, chs 41
and 42 ARC 8045A 2140

ALL AGENCIES

Schedule for rule making 2132

Publication procedures 2133

Agency identification numbers 2138

CITATION OF ADMINISTRATIVE RULES 2131

DELAYS

Environmental Protection Commission[567]
Water well casing, 49.9(1)"a" 2224

Natural Resource Commission[571]
Washboard mussels, 87.1(2), 87.1(3) 2224

EDUCATIONAL EXAMINERS BOARD[282]

EDUCATION DEPARTMENT[281]"umbrella"

Notice Terminated, Beginning teacher
support program, 14.20(17), ch 21
ARC 8064A 2151

Notice, Licensure and authorization fee,
14.30 ARC 8066A 2151

Filed, Issuance of practitioners' licenses,
ch 14 (effective 8/31/01) ARC 8065A 2196

Filed, Substitute teacher's license, 14.17
ARC 8063A 2196

ENVIRONMENTAL PROTECTION
COMMISSION[567]

NATURAL RESOURCES DEPARTMENT[561]"umbrella"

Delay, Water well casing, 49.9(1)"a" 2224

ETHICS AND CAMPAIGN DISCLOSURE
BOARD, IOWA[351]

Notice, Campaign disclosure procedures,
amendments to ch 4 ARC 8050A 2151

Notice, Public resources for political purposes,
4.120, 4.121 ARC 8046A 2169

Filed, Campaign disclosure procedures,
amendments to ch 4 ARC 8047A 2200

Filed, Independent expenditures and in-kind
contributions, amendments to ch 4, 6.2
ARC 8049A 2202

Filed, Availability of reports and information--
copies provided; prohibitions, 5.10
ARC 8048A 2205

HUMAN SERVICES DEPARTMENT[441]

Notice, Transitional Medicaid program, 75.1(31)
ARC 8032A 2170

Notice, Home health specified low-income
Medicare beneficiaries, 75.1(37) ARC 8033A 2171

Notice, Nursing facilities--electronic transmission
of resident assessments, 81.13(9) ARC 8038A 2172

Notice, PROMISE JOBS--nonregistered child care
providers, 93.110(1) ARC 8034A 2173

Notice, Nonpayment of child support, 107.4(6),
107.5(2), 110.12, 110.35 ARC 8035A 2173

Filed, IDAs, 10.1, 10.2(7), 10.4 to 10.9
ARC 8036A 2206

Filed, Case management and community supported
living, mental health centers and services,
24.1, 24.4, 24.5 ARC 8031A 2211

Filed, Pilot project for certification of services for
persons with mental illness, mental retardation,
developmental disabilities and brain injury,
24.21 to 21.24 ARC 8037A 2212

Filed, Nonprescription drugs under Medicaid
coverage, 78.1(2)"f" ARC 8040A 2214

Filed Emergency, Nursing facilities--electronic
transmission of resident assessments,
81.13(9) ARC 8039A 2193

Filed, Nonregistered family day care homes,
170.4(3)"h" ARC 8041A 2215

Filed, Family-centered nonrehabilitative treatment
services, 182.1, 182.2, 182.4 to 182.7, 182.9(1)
ARC 8042A 2215

INSPECTIONS AND APPEALS DEPARTMENT[481]

Notice, Contested case hearings, rescind ch 11
ARC 8043A 2175

Filed, Hospital construction, 51.50, 51.51
ARC 8044A 2217

NATURAL RESOURCE COMMISSION[571]

NATURAL RESOURCES DEPARTMENT[561]"umbrella"

Delay, Washboard mussels, 87.1(2), 87.1(3) 2224

PETROLEUM UST FUND BOARD, IOWA
COMPREHENSIVE[591]

Notice, Remedial or insurance claims--
innocent landowner claims, 11.1(5)"e"
ARC 8062A 2176

PROFESSIONAL LICENSURE DIVISION[645]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Notice, Occupational therapy examiners,
201.7, 201.8, 201.12, 201.14, 201.16,
201.19 to 201.26 ARC 8054A 2176

Notice, Respiratory care examiners, 260.12,
260.13(6), 260.14(1) ARC 8052A 2182

Filed, Barber examiners, 20.101, 20.102(3),
20.103(2), 20.106, 20.214(5), 21.1, 21.2,
21.4, 21.5, 21.7, 21.14, 29.14 ARC 8053A 2219

Filed Emergency, Physical therapy examiners and
physical therapist assistants, 200.10(3),
202.11(3) ARC 8051A 2195

PUBLIC HEALTH DEPARTMENT[641]

Notice, Healthy families Iowa (HFI), ch 87
ARC 8060A 2182

Notice, Financial assistance to eligible end-stage
renal disease patients, ch 111 ARC 8059A 2184

Filed, Emergency medical services, 132.2(4)
ARC 8061A 2220

PUBLIC HEARINGS

Summarized list 2134

PUBLIC SAFETY DEPARTMENT[661]

Notice and Notice Terminated, Fire safety for
small group homes, 5.620 ARC 8055A 2189

REVENUE AND FINANCE DEPARTMENT[701]

Notice, Nonresident and part-year resident credit,
42.3 ARC 8056A 2189

Filed, Tax on pest eradication services, 26.45
ARC 8058A 2221

Filed, Net income; political checkoff, 39.1,
40.5(1), 40.18(8), 41.4, 41.5(8), 43.4(2),
46.3(3) ARC 8057A 2221

USURY

Notice 2192

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

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.

Prices for the Iowa Administrative Code and its Supplements are as follows:

Iowa Administrative Code - $1,086.00 plus $54.30 sales tax

(Price includes 22 volumes of rules and index, plus a one-year subscription to the Code Supplement and the Iowa Administrative Bulletin. Additional or replacement binders can be purchased for $10.55 plus $0.53 tax.)

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

(Subscription expires June 30, 1998)

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

Customer Service Center

Department of General Services

Hoover State Office Building, Level A

Des Moines, IA 50319

Telephone: (515)242-5120

PRINTING SCHEDULE FOR IAB
ISSUE NUMBER	SUBMISSION DEADLINE	ISSUE DATE
1	Friday, June 12, 1998	July 1, 1998
2	Friday, June 26, 1998	July 15, 1998
3	Friday, July 10, 1998	July 29, 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.

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.

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.

CRIMINAL AND JUVENILE JUSTICE PLANNING DIVISION[428]
Juvenile crime prevention community grant fund, 4.3, 4.4, 4.7 IAB 5/20/98 ARC 8013A	Hearing Room 2 Lucas State Office Bldg. Des Moines, Iowa	June 10, 1998 9:30 a.m.
DENTAL EXAMINERS BOARD[650]
Dental hygienists--local anesthesia, 1.1 IAB 5/20/98 ARC 8015A	Conference Room--2nd Floor Executive Hills West 1209 E. Court Des Moines, Iowa	June 17, 1998 1 p.m.
Dental hygienists--administration of local anesthesia and monitoring of nitrous oxide analgesia, 10.3 IAB 5/20/98 ARC 8016A	Conference Room--2nd Floor Executive Hills West 1209 E. Court Des Moines, Iowa	June 17, 1998 1 p.m.
Dental hygienists--permit to administer local anesthesia, 11.10 IAB 5/20/98 ARC 8017A	Conference Room--2nd Floor Executive Hills West 1209 E. Court Des Moines, Iowa	June 17, 1998 1 p.m.
Dental hygienists--fees for permits to administer local anesthesia, 15.1, 15.2 IAB 5/20/98 ARC 8018A	Conference Room--2nd Floor Executive Hills West 1209 E. Court Des Moines, Iowa	June 17, 1998 1 p.m.
Dental assistants--coronal polishing and expanded functions, 20.2(3), 20.3 to 20.6 IAB 5/20/98 ARC 8019A	Conference Room--2nd Floor Executive Hills West 1209 E. Court Des Moines, Iowa	June 17, 1998 2 p.m.
EDUCATIONAL EXAMINERS BOARD[282]
Licensure and authorization fee, 14.30 IAB 6/3/98 ARC 8066A	Conference Room 3 North--3rd Floor Grimes State Office Bldg. Des Moines, Iowa	June 25, 1998 10 a.m.
ENVIRONMENTAL PROTECTION COMMISSION[567]
Coal combustion residue landfills, 103.7 IAB 5/20/98 ARC 8026A	Conference Room--5th Floor Wallace State Office Bldg. Des Moines, Iowa	June 11, 1998 1:30 p.m.
HUMAN SERVICES DEPARTMENT[441]
Iowa plan for behavioral health, Rescind ch 88, divisions IV, V; adopt ch 88, division IV IAB 5/20/98 ARC 8008A	Conference Room--6th Floor Iowa Bldg., Suite 600 411 Third St. S.E. Cedar Rapids, Iowa	June 11, 1998 10 a.m.
HUMAN SERVICES DEPARTMENT[441] (Cont'd)	Administrative Conference Room 417 E. Kanesville Blvd. Council Bluffs, Iowa	June 10, 1998 9 a.m.
	Large Conference Room--5th Floor Bicentennial Bldg. 428 Western Davenport, Iowa	June 10, 1998 10 a.m.
	Conference Room 104 City View Plaza 1200 University Des Moines, Iowa	June 11, 1998 9 a.m.
	Liberty Room Mohawk Square 22 N. Georgia Ave. Mason City, Iowa	June 10, 1998 2 p.m.
	Conference Room 2 120 E. Main Ottumwa, Iowa	June 12, 1998 10 a.m.
	Fifth Floor 520 Nebraska St. Sioux City, Iowa	June 11, 1998 1 p.m.
	Conference Room 420 Pinecrest Office Bldg. 1407 Independence Ave. Waterloo, Iowa	June 10, 1998 9 a.m.
LIVESTOCK HEALTH ADVISORY COUNCIL[521]
Annual appropriation, ch 1 IAB 5/20/98 ARC 8029A	Room 2507 College of Veterinary Medicine Iowa State University Ames, Iowa	June 18, 1998 10 a.m.
PETROLEUM UST FUND BOARD, IOWA COMPREHENSIVE[591]
Remedial or insurance claims, 11.1(5)"e" IAB 6/3/98 ARC 8062A	Conference Room Insurance Division 330 E. Maple St. Des Moines, Iowa	June 23, 1998 10 a.m.
PROFESSIONAL LICENSURE DIVISION[645]
Occupational therapy examiners, 201.7, 201.8, 201.12, 201.14, 201.16, 201.19 to 201.26 IAB 6/3/98 ARC 8054A	Conference Room--4th Floor Lucas State Office Bldg. Des Moines, Iowa	June 23, 1998 9 to 11 a.m.
Respiratory care practitioners, 260.12, 260.13(6), 260.14(1) IAB 6/3/98 ARC 8052A	Conference Room--4th Floor Side 1 Lucas State Office Bldg. Des Moines, Iowa	June 24, 1998 10 a.m. to 12 noon
PUBLIC HEALTH DEPARTMENT[641]
Healthy families Iowa (HFI), ch 87 IAB 6/3/98 ARC 8060A (ICN Network)	ICN Room 326 Lucas State Office Bldg. Des Moines, Iowa	June 23, 1998 10 to 11 a.m.
	National Guard Armory 1200 13th Ave. N. Clinton, Iowa	June 23, 1998 10 to 11 a.m.
	Eastern Iowa Community College ICN Classroom 2, Room 304 Kahl Educational Center 326 W. 3rd St. Davenport, Iowa	June 23, 1998 10 to 11 a.m.
	Fort Madison High School Room 506 20th St. and Ave. B Fort Madison, Iowa	June 23, 1998 10 to 11 a.m.
	Univ. of Iowa Hospitals and Clinics ICN Classroom 1, Room 8774C JJP Eighth Floor 200 Hawkins Dr. Iowa City, Iowa	June 23, 1998 10 to 11 a.m.
	Indian Hills Community College ICN Classroom 2 Advanced Technology Center, Rm. 108 525 Grandview Ave. Ottumwa, Iowa	June 23, 1998 10 to 11 a.m.
	Western Iowa Tech Comm. College ICN Classroom 2 Bldg. B, Room 127B 4647 Stone Ave. Sioux City, Iowa	June 23, 1998 10 to 11 a.m.
	Webster City High School Room 19 1001 Lynx Ave. Webster City, Iowa	June 23, 1998 10 to 11 a.m.
	East Buchanan High School 414 5th St. Winthrop, Iowa	June 23, 1998 10 to 11 a.m.
Financial assistance to eligible end-stage renal disease patients, ch 111 IAB 6/3/98 ARC 8059A	Conference Room--4th Floor Lucas State Office Bldg. Des Moines, Iowa	June 25, 1998 1 p.m.
PUBLIC SAFETY DEPARTMENT[661]
Fire safety for small group homes, 5.620 IAB 6/3/98 ARC 8055A	Conference Room--3rd Floor Wallace State Office Bldg. Des Moines, Iowa	June 29, 1998 10:30 a.m.
SECRETARY OF STATE[721]
Constitutional amendment, 21.200(5) IAB 5/20/98 ARC 8022A	Office of the Secretary of State Second Floor Hoover State Office Bldg. Des Moines, Iowa	June 9, 1998 1:30 p.m.
Local sales and services tax elections for school infrastructure projects, 21.803 IAB 5/20/98 ARC 8020A (See also ARC 8023A)	Office of the Secretary of State Second Floor Hoover State Office Bldg. Des Moines, Iowa	June 9, 1998 2 p.m.
UTILITIES DIVISION[199]
Energy efficiency plans and standards, 35.1 to 35.9 IAB 5/6/98 ARC 7986A	Utilities Board Hearing Room 350 Maple St. Des Moines, Iowa	June 18, 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

"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]

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Industrial Services Division[873]

Labor Services Division[875]

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

Pursuant to Iowa Code sections 159.5 and 198.10, the Iowa Department of Agriculture and Land Stewardship hereby gives Notice of Intended Action to rescind Chapter 41, "Commercial Feed," and Chapter 42, "Pet Food," Iowa Administrative Code, and adopt Chapters 41 and 42 with the same titles.

These chapters regulate commercial feed and pet food.

Any interested person may make written suggestions or comments on these proposed rules on or before June 23, 1998. Such written materials should be directed to the Feed Bureau, Iowa Department of Agriculture and Land Stewardship, Wallace State Office Building, Des Moines, Iowa 50319; fax (515)281-4185. Persons who wish to convey their views orally should contact the Feed Bureau at (515)281-8593 or at the Feed Bureau office on the second floor of the Wallace State Office Building.

These rules are intended to implement Iowa Code chapter 198.

The following rules are proposed.

Rescind 21--Chapters 41 and 42 and adopt the following new chapters in lieu thereof.

41.1(1) The names and definitions for commercial feeds shall be the official definitions of feed ingredients adopted by the Association of American Feed Control Officials, except as the secretary designates otherwise in specific cases.

41.1(2) The terms used in reference to commercial feeds shall be the official feed terms adopted by the AAFCO, except as the secretary designates otherwise in specific cases.

41.1(3) The following commodities are hereby declared exempt from the definition of commercial feed, under the provisions of Iowa Code section 198.3(3): raw meat, hay, straw, stover, silage, cobs, husks, and hulls when unground and when not mixed or intermixed with other materials, provided that these commodities are not adulterated within the meaning of Iowa Code section 198.7.

41.1(4) Individual chemical compounds and substances are hereby declared exempt from the definition of commercial feed under the provisions of Iowa Code section 198.3(3). It has been determined that these products meet the following criteria:

a. There is an adopted AAFCO definition for the product.

b. The product is either generally recognized as safe (GRAS) or is not covered by a specific FDA regulation.

c. The product is either a naturally occurring product of relatively uniform chemical composition or is manufactured to meet the AAFCO definition of the product.

d. The use of the product in the feed industry constitutes a minor portion of its total industrial use.

e. Small quantities of additives which are intended to impart special desirable characteristics shall be permitted.

f. There is no need or problem of control of this product.

41.1(5) The following substance is hereby declared exempt: loose salt.

21--41.2(198) Label format. Commercial feed, other than customer-formula feed, shall be labeled with the information prescribed in this rule on the principal display panel of the product and in the following format.

1. Product name and brand name, if any, as stipulated in 41.3(1).

2. If a drug is used, label as stipulated in 41.3(2).

3. Purpose statement as stipulated in 41.3(3).

4. Guaranteed analysis as stipulated in 41.3(4).

5. Feed ingredients as stipulated in 41.3(5).

6. Directions for use and precautionary statements as stipulated in 41.3(6).

7. Name and principal mailing address of the manufacturer or person responsible for distributing the feed as stipulated in 41.3(7).

8. Quantity statement.

41.2(1) The information required in 41.2"1" to 41.2"5," 41.2"7" and 41.2"8" must appear in its entirety on one side of the label or on one side of the container. The information required by 41.2"6" shall be displayed in a prominent place on the label or container but not necessarily on the same side as the above information. When the information required by 41.2"6" is placed on a different side of the label or container, it must be referenced on the front side with a statement such as "See back of label for directions for use." None of the information required by 41.2(198) shall be subordinated or obscured by other statements or designs.

41.2(2) Customer-formula feed shall be accompanied with the information prescribed in this regulation using labels, invoice, delivery ticket, or other shipping document bearing the following information.

a. The name and address of the manufacturer.

b. The name and address of the purchaser.

c. The date of sale or delivery.

d. The customer-formula feed name and brand name if any.

e. The product name and net quantity of each registered commercial feed and each other ingredient used in the mixture.

f. The directions for use and precautionary statements as required by 41.7(198) and 41.8(198).

g. If a drug-containing product is used:

(1) The purpose of the medication (claim statement).

(2) The established name of each active drug ingredient and the level of each drug used in the final mixture expressed in accordance with 41.4(4).

21--41.3(198) Label information. Commercial feed, other than customer-formula feed, shall be labeled with the information prescribed in this regulation.

41.3(1) Product name and brand name if any.

a. The brand or product name must be appropriate for the intended use of the feed and must not be misleading. If the name indicates the feed is made for a specific use, the character of the feed must conform therewith. A commercial feed for a particular animal class must be suitable for that purpose.

b. Commercial, registered brand or trade names are not permitted in guarantees or ingredient listings and only in the product name of feeds produced by or for the firm holding the rights to such a name.

c. The name of a commercial feed shall not be derived from one or more ingredients of a mixture to the exclusion of other ingredients and shall not be one representing any components of a mixture unless all components are included in the name: provided, that if any ingredient or combination of ingredients is intended to impart a distinctive characteristic to the product which is of significance to the purchaser, the name of that ingredient or combination of ingredients may be used as a part of the brand name or product name if the ingredients or combination of ingredients is quantitatively guaranteed in the guaranteed analysis and the brand or product name is not otherwise false or misleading.

d. The word "protein" shall not be permitted in the product name of a feed that contains added nonprotein nitrogen.

e. When the name carries a percentage value, it shall be understood to signify protein or equivalent protein content only, or both, even though it may not explicitly modify the percentage with the word "protein," provided, that other percentage values may be permitted if they are followed by the proper description and conform to good labeling practice. Digital numbers shall not be used in such a manner as to be misleading or confusing to the customer.

f. Single-ingredient feeds shall have a product name in accordance with the designated definition of feed ingredients as recognized by the Association of American Feed Control Officials unless the secretary designates otherwise.

g. The word "vitamin," or a contraction thereof, or any word suggesting "vitamin" can be used only in the name of a feed which is represented to be a vitamin supplement, and which is labeled with the minimum content of each vitamin declared, as specified in 41.4(3).

h. The term "mineralized" shall not be used in the name of a feed except for "TRACE MINERALIZED SALT." When so used, the product must contain significant amounts of trace minerals which are recognized as essential for animal nutrition.

i. The term "meat" and "meat by-products" shall be qualified to designate the animal from which the meat and meat by-products are derived unless the meat and meat by-products are made from cattle, swine, sheep and goats.

41.3(2) If a drug is used:

a. The word "medicated" shall appear directly following and below the product name in type size no smaller than one-half the type size of the product name.

b. Purpose statement as required in 41.3(3).

c. The purpose of medication (claim statement).

d. An active ingredient statement listing the active drug ingredients by their established name and the amounts in accordance with 41.4(4).

41.3(3) Purpose statement.

a. The statement of purpose shall contain the specific species and animal class(es) for which the feed is intended as defined in 41.3(4).

b. The manufacturer shall have flexibility in describing in more specific and common language the defined animal class, species and purpose while being consistent with the category of animal class defined in 41.3(4) which may include, but is not limited to, weight range(s), sex, or ages of the animal(s) for which the feed is manufactured.

c. The purpose statement may be excluded from the label if the product name includes a description of the species and animal class(es) for which the product is intended.

d. The purpose statement of a premix for the manufacture of feed may exclude the animal class and species and state "For Further Manufacture of Feed" if the nutrients contained in the premix are guaranteed and sufficient for formulation into various animal species feeds and premix specifications are provided by the end user of the premix. (This paragraph is applicable to commercial feeds regulated under 41.3(4)"j"(2)"10.")

e. The purpose statement of a single-purpose ingredient blend, such as a blend of animal protein products, milk products, fat products, roughage products or molasses products may exclude the animal class and species and state "For Further Manufacture of Feed" if the label guarantees of the nutrients contained in the single-purpose nutrient blend are sufficient to provide for formulation into various animal species feeds. (This paragraph is applicable to commercial feeds regulated under 41.3(4)"j"(2)"10.")

f. The purpose statement of a product shall include a statement of enzyme functionality if enzymatic activity is represented in any manner.

41.3(4) Guarantees. Crude protein, equivalent crude protein from nonprotein nitrogen, amino acids, crude fat, crude fiber, acid detergent fiber, calcium, phosphorus, salt, and sodium shall be the sequence of nutritional guarantees when such guarantee is stated. Other required and voluntary guarantees should follow in a general format such that the units of measure used to express guarantees (e.g., percentage, parts per million, international units) are listed in a sequence that provides a consistent grouping of the units of measure.

a. Required guarantees for swine formula feeds.

(1) Animal classes.

1. Pre-starter - 2 to 11 pounds.

2. Starter - 11 to 44 pounds.

3. Grower - 44 to 110 pounds.

4. Finisher - 110 to 242 pounds (market).

5. Gilts, sows and adult boars.

6. Lactating gilts and sows.

(2) Guaranteed analysis for swine complete feeds and supplements (all animal classes).

1. Minimum percentage of crude protein.

2. Minimum percentage of lysine.

3. Minimum percentage of crude fat.

4. Maximum percentage of crude fiber.

5. Minimum and maximum percentage of calcium.

6. Minimum percentage of phosphorus.

7. Minimum and maximum percentage of salt (if added).

8. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

9. Minimum selenium in parts per million (ppm).

10. Minimum zinc in parts per million (ppm).

b. Required guarantees for formula poultry feeds (broilers, layers and turkeys).

(1) Animal classes.

1. Layer - chickens that are grown to produce eggs for food, e.g., table eggs.

* Starting/growing - from day of hatch to approximately 10 weeks of age.

* Finisher - from approximately 10 weeks of age to time first egg is produced (approximately 20 weeks of age).

* Laying - from time first egg is laid throughout the time of egg production.

* Breeders - chickens that produce fertile eggs for hatch replacement layers to produce eggs for food, e.g., table eggs, from time first egg is laid throughout their productive cycle.

2. Broilers - chickens that are grown for human food.

* Starting/growing - from day of hatch to approximately 5 weeks of age.

* Finisher - from approximately 5 weeks of age to market (42 to 52 days).

* Breeders - hybrid strains of chickens whose offspring are grown for human food (broilers), any age and either sex.

3. Broilers, breeders - chickens whose offspring are grown for human food (broilers).

* Starting/growing - from day of hatch until approximately 10 weeks of age.

* Finishing - from approximately 10 weeks of age to time first egg is produced, approximately 20 weeks of age.

* Laying - fertile egg producing chickens (broilers/roasters) from day of first egg throughout the time fertile eggs are produced.

4. Turkeys.

* Starting/growing - turkeys that are grown for human food from day of hatch to approximately 13 weeks of age (females) and 16 weeks of age (males).

* Finisher - turkeys that are grown for human food, females from approximately 13 weeks of age to approximately 17 weeks of age; males from 16 weeks of age to 20 weeks of age (or desired market weight).

* Laying - female turkeys that are producing eggs, from time first egg is produced, throughout the time they are producing eggs.

* Breeder - turkeys that are grown to produce fertile eggs, from day of hatch to time first egg is produced (approximately 30 weeks of age), both sexes.

(2) Guaranteed analysis for poultry complete feeds and supplements (all animal classes).

1. Minimum percentage of crude protein.

2. Minimum percentage of lysine.

3. Minimum percentage of methionine.

4. Minimum percentage of crude fat.

5. Maximum percentage of crude fiber.

6. Minimum and maximum percentage of calcium.

7. Minimum percentage of phosphorus.

8. Minimum and maximum percentage of salt (if added).

9. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

c. Required guarantees for beef cattle formula feeds.

(1) Animal classes.

1. Calves (birth to weaning).

2. Cattle on pasture (may be specific as to production stage, e.g., stocker, feeder, replacement heifers, brood cows, bulls).

3. Feedlot cattle.

(2) Guaranteed analysis for beef complete feeds and supplements (all animal classes).

1. Minimum percentage of crude protein.

2. Maximum percentage of equivalent crude protein from nonprotein nitrogen (NPN) when added.

3. Minimum percentage of crude fat.

4. Maximum percentage of crude fiber.

5. Minimum and maximum percentage of calcium.

6. Minimum percentage of phosphorus.

7. Minimum and maximum percentage of salt (if added).

8. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

9. Minimum percentage of potassium.

10. Minimum vitamin A, other than precursors of vitamin A, in international units per pound (if added).

(3) Guaranteed analysis for beef mineral feeds (if added).

1. Minimum and maximum percentage calcium.

2. Minimum percentage of phosphorus.

3. Minimum and maximum percentage of salt.

4. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

5. Minimum percentage of magnesium.

6. Minimum percentage of potassium.

7. Minimum copper in parts per million (ppm).

8. Minimum selenium in parts per million (ppm).

9. Minimum zinc in parts per million (ppm).

10. Minimum vitamin A, other than precursors of vitamin A, in international units per pound.

d. Required guarantees for dairy formula feeds.

(1) Animal classes.

1. Veal milk replacer - milk replacer to be fed for veal production.

2. Herd milk replacer - milk replacer to be fed for herd replacement calves.

3. Starter - approximately 3 days to 3 months.

4. Growing heifers, bulls and dairy beef.

* Grower 1 - 3 months to 12 months of age.

* Grower 2 - more than 12 months of age.

5. Lactating dairy cattle.

6. Nonlactating dairy cattle.

(2) Guaranteed analysis for veal and herd replacement milk replacer.

1. Minimum percentage of crude protein.

2. Minimum percentage of crude fat.

3. Maximum percentage of crude fiber.

4. Minimum and maximum percentage of calcium.

5. Minimum percentage of phosphorus.

6. Minimum vitamin A, other than precursors of vitamin A, in international units per pound (if added).

(3) Guaranteed analysis for dairy cattle complete feeds and supplements.

1. Minimum percentage of crude protein.

2. Maximum percentage of equivalent crude protein from nonprotein nitrogen (NPN) when added.

3. Minimum percentage of crude fat.

4. Maximum percentage of crude fiber.

5. Maximum percentage of acid detergent fiber (ADF).

6. Minimum and maximum percentage of calcium.

7. Minimum percentage of phosphorus.

8. Minimum selenium in parts per million (ppm).

9. Minimum vitamin A, other than precursors of vitamin A, in international units per pound (if added).

(4) Required guaranteed analysis for dairy mixing and pasture mineral.

1. Minimum and maximum percentage of calcium.

2. Minimum percentage of phosphorus.

3. Minimum and maximum percentage of salt.

4. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

5. Minimum percentage of magnesium.

6. Minimum percentage of potassium.

7. Minimum selenium in parts per million (ppm).

8. Minimum vitamin A, other than the precursors of vitamin A, in international units per pound.

e. Required guarantees for equine formula feeds.

(1) Animal classes.

1. Foal.

2. Mare.

3. Breeding.

4. Maintenance.

(2) Guaranteed analysis for equine complete feeds and supplements (all animal classes).

1. Minimum percentage of crude protein.

2. Minimum percentage of crude fat.

3. Maximum percentage of crude fiber.

4. Minimum and maximum percentage of calcium.

5. Minimum percentage of phosphorus.

6. Minimum copper in parts per million (ppm).

7. Minimum selenium in parts per million (ppm).

8. Minimum zinc in parts per million (ppm).

9. Minimum vitamin A, other than the precursors of vitamin A, in international units per pound (if added).

(3) Guaranteed analysis for equine mineral feeds (all animal classes).

1. Minimum and maximum percentage of calcium.

2. Minimum percentage of phosphorus.

3. Minimum and maximum percentage of salt (if added).

4. Minimum and maximum percentage of sodium shall be guaranteed only when the total sodium exceeds that furnished by the maximum salt guarantee.

5. Minimum copper in parts per million (ppm).

6. Minimum selenium in parts per million (ppm).

7. Minimum zinc in parts per million (ppm).

8. Minimum vitamin A, other than precursors of vitamin A, in international units per pound (if added).

f. Required guarantees for goat and sheep formula feeds.

(1) Animal classes.

1. Starter.

2. Grower.

3. Finisher.

4. Breeder.

5. Lactating.

(2) Guaranteed analysis for goat and sheep complete feeds and supplements (all animal classes).

1. Minimum percentage of crude protein.

2. Maximum percentage of equivalent crude protein from nonprotein nitrogen (NPN) when added.

3. Minimum percentage of crude fat.

4. Maximum percentage of crude fiber.

5. Minimum and maximum percentage of calcium.

6. Minimum percentage of phosphorus.

7. Minimum and maximum percentage of salt (if added).

8. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

9. Minimum and maximum copper in parts per million (ppm) (if added, or if total copper exceeds 20 ppm).

10. Minimum selenium in parts per million (ppm).

11. Minimum vitamin A, other than precursors of vitamin A, in international units per pound (if added).

g. Required guarantees for duck and geese formula feeds.

(1) Animal classes.

1. Ducks.

* Starter - 0 to 3 weeks of age.

* Grower - 3 to 6 weeks of age.

* Finisher - 6 weeks to market.

* Breeder developer - 8 to 19 weeks of age.

* Breeder - 22 weeks to end of lay.

2. Geese.

* Starter - 0 to 4 weeks of age.

* Grower - 4 to 8 weeks of age.

* Finisher - 8 weeks to market.

* Breeder developer - 10 to 22 weeks of age.

* Breeder - 22 weeks to end of lay.

(2) Guaranteed analysis for duck and geese complete feeds and supplements (for all animal classes).

1. Minimum percentage of crude protein.

2. Minimum percentage of crude fat.

3. Maximum percentage of crude fiber.

4. Minimum and maximum percentage of calcium.

5. Minimum percentage of phosphorus.

6. Minimum and maximum percentage of salt (if added).

7. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

h. Required guarantees for fish complete feeds and supplements.

(1) Animal species shall be declared in lieu of animal class.

1. Trout.

2. Catfish.

3. Species other than trout or catfish.

(2) Guaranteed analysis for all fish complete feeds and supplements.

1. Minimum percentage of crude protein.

2. Minimum percentage of crude fat.

3. Maximum percentage of crude fiber.

4. Minimum percentage of phosphorus.

i. Required guarantees for rabbit complete feeds and supplements.

(1) Animal classes.

1. Grower - 4 to 12 weeks of age.

2. Breeder - 12 weeks of age and over.

(2) Guaranteed analysis for rabbit complete feeds and supplements (all animal classes).

1. Minimum percentage of crude protein.

2. Minimum percentage of crude fat.

3. Minimum and maximum percentage of crude fiber (the maximum crude fiber shall not exceed the minimum by more than 5.0 units).

4. Minimum and maximum percentage of calcium.

5. Minimum percentage of phosphorus.

6. Minimum and maximum percentage of salt (if added).

7. Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

8. Minimum vitamin A, other than precursors of vitamin A, in international units per pound (if added).

j. The required guarantees of grain mixtures with or without molasses and feeds other than those described in 41.3(4)"a" to "i" shall include the following items, unless exempted in paragraph "k," in the order listed:

(1) Animal class(es) and species for which the product is intended.

(2) Guaranteed analysis.

1. Minimum percentage of crude protein.

2. Maximum or minimum percentage of equivalent crude protein from nonprotein nitrogen as required in 41.4(5).

3. Minimum percentage of crude fat.

4. Maximum percentage of crude fiber.

5. Minerals in formula feeds, to include in the following order:

* Minimum and maximum percentage of calcium.

* Minimum percentage of phosphorus.

* Minimum and maximum percentage of salt (if added).

* Minimum and maximum percentage of total sodium shall be guaranteed only when total sodium exceeds that furnished by the maximum salt guarantee.

* Other minerals.

6. Minerals in feed ingredients - as specified by the official definitions of the Association of American Feed Control Officials.

7. Vitamins in such terms as specified in 41.4(3).

8. Total sugars as invert on dried molasses products or products being sold primarily for their sugar content.

9. Viable lactic acid-producing microorganisms for use in silages in terms specified in 41.4(7).

10. A commercial feed (e.g., vitamin/mineral premix, base mix) intended to provide a specialized nutritional source for use in the manufacture of other feeds must state its intended purpose and guarantee those nutrients relevant to such stated purpose. Article II of AAFCO's "Criteria for Labeling Nutritional Indicators" is not applicable to the label guarantees for these specialized commercial feeds.

k. Exemptions.

(1) A mineral guarantee for feed, excluding those feeds manufactured as complete feeds and for feed supplements intended to be mixed with grain to produce a complete feed for swine, poultry, fish, and veal and herd milk replacers is not required when:

1. The feed or feed ingredient is not intended or represented or does not serve as a principal source of that mineral to the animal; or

2. The feed or feed ingredient is intended for non-food-producing animals and contains less than 6.5 percent total mineral.

(2) Guarantees for vitamins are not required when the commercial feed is neither formulated for nor represented in any manner as a vitamin supplement.

(3) Guarantees for crude protein, crude fat, and crude fiber are not required when the commercial feed is intended for purposes other than to furnish these substances or they are of minor significance relating to the primary purpose of the product such as drug premixes, mineral or vitamin supplements, and molasses.

(4) Guarantees for microorganisms are not required when the commercial feed is intended for a purpose other than to furnish these substances or they are of minor significance relating to the primary purpose of the product, and no specific label claims are made.

(5) The indication for animal class(es) and species is not required on single-ingredient products if the ingredient is not intended, represented, or defined for a specific animal class(es) or species.

41.3(5) Feed ingredients, collective terms for the grouping of feed ingredients, or appropriate statements as provided under the provisions of Iowa Code section 198.5(1)"d."

a. The name of each ingredient as defined in the official publication of the Association of American Feed Control Officials, common or usual name, or one approved by the secretary.

b. Collective terms for the grouping of feed ingredients as defined in the official definitions of feed ingredients published in the official publication of the Association of American Feed Control Officials in lieu of the individual ingredients; provided that:

(1) When a collective term for a group of ingredients is used on the label, individual ingredients within that group shall not be listed on the label.

(2) The manufacturer shall provide the feed control official, upon request, with a list of individual ingredients, within a defined group, that are or have been used at manufacturing facilities distributing in or into the state.

c. The registrant may affix the statement "Ingredients as registered with the state" in lieu of ingredient list on the label. The list of ingredients must be on file with the secretary. This list shall be made available to the feed purchaser upon request.

41.3(6) Directions for use and precautionary statements or reference to their location if the detailed feeding directions and precautionary statements required by 41.7(198) and 41.8(198) appear elsewhere on the label.

41.3(7) Name and principal mailing address of the manufacturer or person responsible for distributing the feed. The principal mailing address shall include the street address, city, state, and ZIP code; however, the street address may be omitted if it is shown in the current city directory or telephone directory.

41.3(8) Quantity statement.

21--41.4(198) Expression of guarantees.

41.4(1) The guarantees for crude protein, equivalent crude protein from nonprotein nitrogen, lysine, methionine, other amino acids, crude fat, crude fiber and acid detergent fiber shall be in terms of percentage.

41.4(2) Mineral guarantees.

a. When the calcium, salt, and sodium guarantees are given in the guaranteed analysis, such shall be stated and conform to the following:

(1) When the minimum is below 2.5 percent, the maximum shall not exceed the minimum by more than 0.5 percentage point.

(2) When the minimum is 2.5 percent but less than 5.0 percent, the maximum shall not exceed the minimum by more than one percentage point.

(3) When the minimum is 5.0 percent or greater, the maximum shall not exceed the minimum by more than 20 percent of the minimum and in no case shall the maximum exceed the minimum by more than five percentage points.

b. When stated, guarantees for minimum and maximum total sodium and salt: minimum potassium, magnesium, sulfur, and phosphorus and maximum fluoride shall be in terms of percentage. Other minimum mineral guarantees shall be stated in parts per million (ppm) when the concentration is less than 10,000 ppm and in percentage when the concentration is 10,000 ppm (1 percent) or greater.

c. Products labeled with a quantity statement (e.g., tablets, capsules, granules, or liquid) may state mineral guarantees in milligrams (mg) per unit (e.g., tablets, capsules, granules, or liquids) consistent with the quantity statement and directions for use.

41.4(3) Guarantees for minimum vitamin content of commercial feeds shall be listed in the order specified and are stated in mg/lb or in units consistent with those employed for the quantity statement unless otherwise specified:

a. Vitamin A, other than precursors of vitamin A, in international units per pound.

b. Vitamin D₃ in products offered for poultry feeding, in international chick units per pound.

c. Vitamin D for other uses, in international units per pound.

d. Vitamin E, in international units per pound.

e. Concentrated oils and feed additive premixes containing vitamin A, D, or E, or a combination of all three, may, at the option of the distributor, be stated in units per gram instead of units per pound.

f. Vitamin B₁₂, in milligrams or micrograms per pound.

g. All other vitamin guarantees shall express the vitamin activity in milligrams per pound in terms of the following: menadione, riboflavin, d-pantothenic acid, thiamine, niacin, vitamin B₆, folic acid, choline, biotin, inositol, p-amino benzoic acid, ascorbic acid, and carotene.

41.4(4) Guarantees for drugs shall be stated in terms of percent by weight, except:

a. Antibiotics present at less than 2,000 grams per ton (total) of commercial feed shall be stated in grams per ton of commercial feed.

b. Antibiotics present at 2,000 or more grams per ton (total) of commercial feed shall be stated in grams per pound of commercial feed.

c. Labels for commercial feeds containing growth promotion or feed efficiency levels of antibiotics, or both, which are to be fed continuously as the sole ration, are not required to make quantitative guarantees except as specifically noted in the federal food additive regulations for certain antibiotics, wherein, quantitative guarantees are required regardless of the level or purpose of the antibiotic.

d. The term "milligrams per pound" may be used for drugs or antibiotics in those cases where a dosage is given in "milligrams" in the feeding directions.

41.4(5) Commercial feeds containing any added nonprotein nitrogen shall be labeled as follows:

a. For ruminants.

(1) Complete feeds, supplements, and concentrates containing added nonprotein nitrogen and containing more than 5 percent protein from natural sources shall be guaranteed as follows:

1. Crude protein, minimum, ________ percent.

2. (This includes not more than ________ percent equivalent crude protein from nonprotein nitrogen).

(2) Mixed feed concentrates and supplements containing less than 5 percent protein from natural sources may be guaranteed as follows:

Equivalent crude protein from nonprotein nitrogen, minimum, ________ percent.

(3) Ingredient sources of nonprotein nitrogen such as urea, diammonium phosphate, ammonium polyphosphate solution, ammoniated rice hulls, or other basic nonprotein nitrogen ingredients defined by the Association of American Feed Control Officials shall be guaranteed as follows:

1. Nitrogen, minimum, ________ percent.

2. Equivalent crude protein from nonprotein nitrogen, minimum, ________ percent.

b. For nonruminants.

(1) Complete feeds, supplements and concentrates containing crude protein from all forms of nonprotein nitrogen, added as such, shall be labeled as follows:

1. Crude protein, minimum ________ percent.

2. This includes not more than ________ percent equivalent crude protein which is not nutritionally available to (species of animal for which feed is intended).

(2) Premixes, concentrates or supplements intended for nonruminants containing more than 1.25 percent equivalent crude protein from all forms of nonprotein nitrogen, added as such, must contain adequate directions for use and a prominent statement:

WARNING: This feed must be used only in accordance with directions furnished on the label.

41.4(6) Mineral phosphatic materials for feeding purposes shall be labeled with the guarantee for minimum and maximum percentage of calcium (when present), the minimum percentage of phosphorus, and the maximum percentage of fluorine.

41.4(7) Guarantees for microorganisms shall be stated in colony-forming units per gram (CFU/g) when directions are for using the product in grams, or in colony-forming units per pound (CFU/lb) when directions are for using the product in pounds. A parenthetical statement following the guarantee shall list each species in order of predominance.

41.4(8) Guarantees for enzymes shall be stated in units of enzymatic activity per unit weight or volume, consistent with label directions. The source organism for each type of enzymatic activity shall be specified, such as: protease (bacillus subtilis) 5.5 mg amino acids liberated/min./milligram. If two or more sources have the same type of activity, they shall be listed in order of predominance based on the amount of enzymatic activity provided.

21--41.5(198) Suitability.

41.5(1) The nutritional content of commercial feed shall be as purported or is represented to possess by its labeling. Such animal feed, its labeling and intended use must be suitable for the intended purpose of the product.

41.5(2) Commercial feeds for swine, poultry, and fish, and milk replacer for veal calves and herd replacement calves, when fed according to directions, must meet the nutritional requirements established by:

a. The committee on animal nutrition of the National Research Council of the National Academy of Sciences, or

b. A signed affidavit attesting to the nutritional adequacy of the feed based upon valid scientific evidence. Such affidavit shall be submitted to the secretary upon request.

(1) An affidavit certifying the feed sponsor has valid scientific knowledge which ensures suitability of the nutritional content of the feed product shall be submitted to the secretary only when the suitability of a product is challenged.

(2) Submission of a completed "Affidavit of Suitability" shall serve as proof of suitability and therefore the feed sponsor shall not be required to provide scientific information nor any reference thereto unless the secretary has reason to believe that such product is not suitable for its intended use. In such case the secretary shall have the authority to conduct a hearing pursuant to 21--subrule 2.2(5), Iowa Administrative Code, requiring the feed sponsor to produce sufficient scientific and other evidence of the product's suitability.

(3) Upon receipt of a completed "Affidavit of Suitability," the feed sponsor may continue to market the product. When such affidavit is not adequately submitted, the secretary may continue to withdraw the feed from distribution and order its removal from the marketplace as well as all other feeds manufactured or distributed under the same product name.

(4) The affidavit of suitability shall contain the following information:

1. The feed company's name;

2. The feed's product name;

3. The name and title of the affiant submitting the document;

4. The statement that the affiant has knowledge of the nutritional content of the listed feed product and is familiar with the nutritional requirements for the animal species and animal class(es) for which the product is intended as established by the National Research Council of the National Academy of Sciences;

5. The statement that the affiant has knowledge of valid scientific evidence that supports the suitability of the product for the intended animal species and animal class(es) for which the feed is intended;

6. The date of submission; and

7. The signature of the affiant notarized by a certified notary public.

21--41.6(198) Ingredients.

41.6(1) The name of each ingredient or collective term for the grouping of ingredients, when required to be listed, shall be the name as defined in the official definitions of feed ingredients as published in the official publication of the Association of American Feed Control Officials, the common or usual name, or one approved by the secretary.

41.6(2) The name of each ingredient must be shown in letters or type of the same size.

41.6(3) No reference to quality or grade of an ingredient shall appear in the ingredient statement of a feed.

41.6(4) The term "dehydrated" may precede the name of any product that has been artificially dried.

41.6(5) A single ingredient product defined by the Association of American Feed Control Officials is not required to have an ingredient statement.

41.6(6) Tentative definitions for ingredients shall not be used until adopted as official, unless no official definition exists or the ingredient has a common accepted name that requires no definition (e.g., sugar).

41.6(7) When the word "iodized" is used in connection with a feed ingredient, the feed ingredient shall contain not less than 0.007 percent iodine, uniformly distributed.

21--41.7(198) Directions for use and precautionary statements.

41.7(1) Directions for use and precautionary statements on the labeling of all commercial feeds and customer-formula feeds containing additives (including drugs, special purpose additives, or nonnutritive additives) shall:

a. Be adequate to enable safe and effective use for the intended purposes by users with no special knowledge of the purpose and use of such articles; and

b. Include, but not be limited to, all information described by all applicable regulations under the Federal Food, Drug and Cosmetic Act.

41.7(2) Adequate directions for use and precautionary statements are required for feeds containing nonprotein nitrogen as specified in 41.8(198).

41.7(3) Adequate directions for use and precautionary statements necessary for safe and effective use are required on commercial feeds distributed to supply particular dietary needs or for supplementing or fortifying the usual diet or ration with any vitamin, mineral, or other dietary nutrient or compound.

21--41.8(198) Nonprotein nitrogen.

41.8(1) Urea and other nonprotein nitrogen products defined in the official publication of the Association of American Feed Control Officials are acceptable ingredients only in commercial feeds for ruminant animals as a source of equivalent crude protein. If the commercial feed contains more than 8.75 percent of equivalent crude protein from all forms of nonprotein nitrogen, added as such, or the equivalent crude protein from all forms of nonprotein nitrogen, added as such, exceeds one third of the total crude protein, the label shall bear adequate directions for the safe use of feeds anda precautionary statement "CAUTION: USE ASDIRECTED." The directions for use and the caution statement shall be in type of such size so placed on the label that the directions will be read and understood by ordinary persons under customary conditions of purchase and use.

41.8(2) Nonprotein nitrogen defined in the official publication of the Association of American Feed Control Officials, when so indicated, is an acceptable ingredient in commercial feeds distributed to nonruminant animals as a source of nutrients other than equivalent crude protein. The maximum equivalent crude protein from nonprotein nitrogen sources when used in nonruminant rations shall not exceed 1.25 percent of the total daily ration.

41.8(3) On labels such as those for medicated feeds which bear adequate feeding directions or warning statements, or both, the presence of added nonprotein nitrogen shall not require a duplication of the feeding directions or the precautionary statements as long as those statements include sufficient information to ensure the safe and effective use of this product due to the presence of nonprotein nitrogen.

21--41.9(198) Drug and feed additives.

41.9(1) Prior to approval of a product label for commercial feed which contains additives (including drugs, other special purpose additives, or nonnutritive additives), the distributor may be required to submit evidence to prove the safety and efficacy of the commercial feed when used according to the directions furnished on the label.

41.9(2) Satisfactory evidence of safety and efficacy of a commercial feed may be:

a. When the commercial feed contains such additives, the use of which conforms to the requirements of the applicable regulation in the Code of Federal Regulations, Title 21, or which are "prior sanctioned" or "informal review sanctioned" or "generally recognized as safe" for such use, or

b. When the commercial feed is itself a drug as defined in Iowa Code section 198.3(6) and is generally recognized as safe and effective for the labeled use or is marketed subject to an application approved by the Food and Drug Administration under Title 21 U.S.C. 360(b), or

c. When one of the purposes for feeding a commercial feed is to impart immunity (that is to act through some immunological process) the constituents imparting immunity have been approved for the purpose through the Federal Virus, Serum and Toxins Act of 1913, as amended, or

d. When the commercial feed is a direct-fed microbial product and:

(1) The product meets the particular fermentation product definition; and

(2) The microbial content statement, as expressed in the labeling, is limited to the following: "Contains a source of live (viable) naturally occurring microorganisms." This statement shall appear on the label; and

(3) The source is stated with a corresponding guarantee expressed in accordance with 41.4(7).

e. When the commercial feed is an enzyme product and:

(1) The product meets the particular enzyme definition defined by the Association of American Feed Control Officials; and

(2) The enzyme is stated with a corresponding guarantee expressed in accordance with 41.4(8).

21--41.10(198) Adulterants.

41.10(1) For the purpose of Iowa Code section 198.7, the term "poisonous or deleterious substances" includes but is not limited to the following:

a. Fluorine and any mineral or mineral mixture which is to be used directly for the feeding of domestic animals and in which the fluorine exceeds 0.20 percent for breeding and dairy cattle; 0.30 percent for slaughter cattle; 0.30 percent for sheep; 0.35 percent for lambs; 0.45 percent for swine; and 0.60 percent for poultry.

b. Fluorine-bearing ingredients when used in such amounts that they raise the fluorine content of the total ration (exclusive of roughage) above the following amounts: 0.004 percent for breeding and dairy cattle; 0.009 percent for slaughter cattle; 0.006 percent for sheep; 0.01 percent for lambs; 0.015 percent for swine and 0.03 percent for poultry.

c. Fluorine-bearing ingredients incorporated in any feed that is fed directly to cattle, sheep or goats consuming roughage (with or without) limited amounts of grain, that results in a daily fluorine intake in excess of 50 milligrams of fluorine per 100 pounds of body weight.

d. Soybean meal, flakes or pellets or other vegetable meals, flakes or pellets which have been extracted with tri-chlorethylene or other chlorinated solvents.

e. Sulfur dioxide, sulfurous acid, and salts of sulfurous acid when used in or on feeds or feed ingredients which are considered or reported to be a significant source of vitamin B₁ (thiamine).

41.10(2) All screenings or by-products of grains and seeds containing weed seeds, when used in commercial feed or sold as such to the ultimate consumer, shall be ground fine enough or otherwise treated to destroy the viability of such weed seeds so that the finished product contains no viable prohibited weed seeds per pound and not more than 11/2 percent by weight of viable restricted weed seeds.

21--41.11(198) Good manufacturing practices. For the purposes of enforcement of Iowa Code section 198.7(4), the secretary adopts the following as current, good manufacturing practices:

41.11(1) The regulations prescribing good manufacturing practices for Type B and Type C medicated feeds as published in the Code of Federal Regulations, Title 21, Part 225, Sections 225.1 to 225.202.

41.11(2) The regulations prescribing good manufacturing practices for Type A medicated articles as published in the Code of Federal Regulations, Title 21, Part 226, Sections 226.1 to 226.115.

"All life stages" means gestation/lactation, growth, and adult maintenance life stages.

"Immediate container" means the unit, can, box, tin, bag, or other receptacle or covering in which a pet food is displayed for sale to retail purchasers, but does not include containers used as shipping containers.

"Ingredient statement" means a collective and contiguous listing on the label of the ingredients of which the pet food is composed.

"Principal display panel" means the part of a label that is most likely to be displayed, presented, shown or examined under normal and customary conditions of display for retail sale.

21--42.2(198) Label format and labeling.

42.2(1) The quantity statement and product name must be shown on the principal display panel. All other required information may be placed elsewhere on the label but shall be sufficiently conspicuous as to render it easily read by the average purchaser under ordinary conditions of purchase and sale.

42.2(2) The information which is required to appear in the "Guaranteed Analysis" shall be listed in the following order unless otherwise specified in these rules:

Crude protein (minimum percentage)

Crude fat (minimum percentage)

Crude fiber (maximum percentage)

Moisture (maximum percentage)

Additional guarantees shall follow moisture.

42.2(3) The label of a pet food shall specify the name and address of the manufacturer, packer, or distributor of the pet food. The statement of the place of business shall include the street address, city, state, and ZIP code; however, the street address may be omitted if such street address is shown in a current city directory or telephone directory for the city listed on the label.

42.2(4) If a person manufactures, packages, or distributes a pet food in a place other than the person's principal place of business, the label may state the principal place of business in lieu of the actual place where each package of such pet food was manufactured or packaged or is to be distributed if such statement is not misleading in any particular.

42.2(5) A vignette, graphic, or pictorial representation of a product on a pet food label shall not misrepresent the contents of the package.

42.2(6) The use of the word "proven" in connection with label claims for a pet food is improper unless scientific or other empirical evidence establishing the claim represented as "proven" is available.

42.2(7) No statement shall appear upon the label or labeling of a pet food which makes false or misleading comparisons between that pet food and any other pet food.

42.2(8) Personal or commercial endorsements are permitted on pet food labels where said endorsements are factual and not otherwise misleading.

42.2(9) When a pet food is enclosed in any outer container or wrapper which is intended for retail sale, all required label information must appear on such outside container or wrapper.

42.2(10) The words "Dog Food," "Cat Food," or similar designations must appear conspicuously upon the principal display panels of the pet food labels.

42.2(11) The label of a pet food shall not contain an unqualified representation or claim, directly or indirectly, that the pet food therein contained or a recommended feeding thereof is or meets the requisites of a complete, perfect, scientific or balanced ration for dogs or cats unless such product or feeding:

a. Contains ingredients in quantities sufficient to meet the nutrient requirements for all life stages established by the AAFCO Dog or Cat Food Nutrient Profiles, as the case may be, or some other AAFCO-recognized authority on animal nutrition¹; or

b. Contains a combination of ingredients which when fed to a normal animal as the only source of nourishmentin accordance with the testing procedures established byAAFCO meets the criteria of such testing procedures for all life stages.

__________________

¹To the extent that the product's ingredients provide nutrients in amounts which substantially deviate from those nutrient requirements estimated by such a recognized authority on animal nutrition, or in the event that no estimation has been made by a recognized authority on animal nutrition of the requirements of animals for one or more stages of said animals' lives, the product's represented capabilities in this regard must have been demonstrated by adequate testing.

42.2(12) Labels for products which are compounded for or which are suitable for only a limited purpose (e.g., a product designed for the feeding of puppies) may contain representations that said pet food product or recommended feeding thereof is or meets the requisites of a complete, perfect, scientific or balanced ration for dogs or cats only:

a. In conjunction with a statement of a limited purpose for which the product is intended or suitable (as, for example, in the statement "A complete food for puppies"). Such representations and such required qualification therefore shall be juxtaposed on the same panel and in the same size, style and color print; and

b. Such qualified representations may appear on pet food labels only if:

(1) The pet food contains ingredients in quantities sufficient to meet the nutrient requirements established by the AAFCO Dog or Cat Food Nutrient Profiles, as the case may be, or some other AAFCO-recognized authority on animal nutrition, for such limited or qualified purpose; or

(2) The pet food product contains a combination of ingredients which when fed for such limited purpose will satisfy the nutrient requirements for such limited purpose and has had its capabilities in this regard demonstrated by adequate testing.

42.2(13) Except as specified by 42.3(1), the name of any ingredient which appears on the label other than in the product name shall not be given undue emphasis so as to create the impression that such an ingredient is present in the product in a larger amount than is the fact, shall constitute at least 3 percent of the total ingredients (exclusive of water sufficient for processing) when preceded by the designation "with" or like term, shall be in the same size, style and color print and if the names of more than one such ingredient are shown, they shall appear in the order of their respective predominance by weight in the product.

42.2(14) The label of a dog or cat food (other than one prominently identified as a snack or treat as part of the designation required upon the principal display panel under subrule 42.2(10)) shall bear, on either the principal display panel or the information panel (as those terms are defined in 21 CFR sections 501.1 and 501.2, respectively), in type of a size reasonably related to the largest type on the panel, a statement of the nutritional adequacy or purpose of the product. Such statement shall consist of one of the following:

a. A claim that the pet food meets the requirements of one or more of the recognized categories of nutritional adequacy: gestation, lactation, growth, maintenance, and complete for all life stages, as those categories are set forth in subrules 42.2(11) and 42.2(12). The claim shall be stated as one of the following:

(1) (Name of product) is formulated to meet the nutritional levels established by the AAFCO Dog (or Cat) Food Nutrient Profiles for ________. (Blank is to be completed by using the stage or stages of the pet's life such as gestation, lactation, growth, maintenance or the words "All Life Stages.")

(2) Animal feeding tests using AAFCO procedures substantiate that (name of product) provides complete and balanced nutrition for ______. (Blank is to be completed by using the stage or stages of the pet's life tested such as gestation, lactation, growth, maintenance or the words "All Life Stages.")

b. A nutrition or dietary claim for purposes other than those listed in subrules 42.2(11) and 42.2(12) if the claim is scientifically substantiated.

c. The statement: "This product is intended for intermittent or supplemental feeding only," if a product does not meet either the requirements of subrules 42.2(11) and 42.2(12) or any other special nutritional or dietary need and so is suitable only for limited or intermittent or supplementary feeding.

d. The statement: "Use only as directed by your veterinarian," if it is a pet food product intended for use by, or under the supervision or direction of a veterinarian and shall make a statement in accordance with paragraph 42.2(14)"a" or 42.2(14)"c."

42.2(15) The use of claims on pet food labels stating improvement or newness shall be sufficiently substantiated by the manufacturer and limited to six months' production. The use of claims stating preference or comparative attribute claims shall be sufficiently substantiated by the manufacturer and limited to one year's production after which the claim must be removed or resubstantiated.

42.2(16) Dog and cat foods labeled as complete and balanced for any or all life stages as provided in 42.2(14)"a" except those pet foods labeled in accordance with paragraph 42.2(14)"d" shall list feeding directions on the product label. These directions shall be expressed in common terms and shall appear prominently on the label. Feeding directions shall, at a minimum, state "Feed (weight/unit of product) per (weight unit) of dog (or cat)."

42.2(17) A signed affidavit attesting that the product meets the requisites of 42.2(11) or 42.2(12) shall be submitted to the secretary upon request.

21--42.3(198) Brand and product names.

42.3(1) No flavor designation shall be used on a pet food label unless the designated flavor is detectable by a recognized test method, or is one the presence of which provides a characteristic distinguishable by the pet. Any flavor designation on a pet food label must either conform to the name of its source as shown in the ingredient statement or the ingredient statement shall show the source of the flavor. The word "flavor" shall be printed in the same size type and with an equal degree of conspicuousness as the ingredient term(s) from which the flavor designation is derived. Distributors of pet food employing such flavor designation or claims on the labels of the product distributed by them shall, upon request, supply verification of the designated or claimed flavor to the appropriate control official.

42.3(2) The designation "100%" or "All" or words of similar connotation shall not be used in the brand or product name of a pet food if it contains more than one ingredient. However, for the purpose of this provision, water sufficient for processing, required decharacterizing agents and trace amounts of preservatives and condiments shall not be considered ingredients.

42.3(3) The term "meat" and "meat by-products" shall be qualified to designate the animal from which the meat and meat by-products are derived unless the meat and meat by-products are from cattle, swine, sheep and goats, for example, "horsemeat" and "horsemeat by-products."

42.3(4) The name of the pet food shall not be derived from one or more ingredients of a mixture of a pet food product unless all components or ingredients are included in the name except as specified by 42.3(1), 42.3(5), or 42.3(6); provided that the name of an ingredient or combination of ingredients may be used as a part of the product name if:

a. The ingredient or combination of ingredients is present in sufficient quantity to impart a distinctive characteristic to the product or is present in amounts which have a material bearing upon the price of the product or upon acceptance of the product by the purchaser thereof; or

b. It does not constitute a representation that the ingredient or combination of ingredients is present to the exclusion of other ingredients; or

c. It is not otherwise false or misleading.

42.3(5) When an ingredient or a combination of ingredients derived from animals, poultry, or fish constitutes 95 percent or more of the total weight of all ingredients of a pet food mixture, the name or names of such ingredient(s) may form a part of the product name of the pet food; provided that where more than one ingredient is part of such product name, then all such ingredient names shall be in the same size, style, and color print. For the purpose of this provision, water sufficient for processing shall be excluded when calculating the percentage of the named ingredient(s). However, such named ingredient(s) shall constitute at least 70 percent of the total product.

42.3(6) When an ingredient or a combination of ingredients constitutes at least 25 percent but less than 95 percent of the total weight of all ingredients of a dog or cat food mixture, the name or names of such ingredient or ingredients may form a part of the product name of the pet food if each of the ingredients constitutes at least 3 percent of the product weight excluding water used for processing and only if the product name also includes a primary descriptive term such as "dinner," "platter," or similar designation so that the product name describes the contents of the product in accordance with an established law, custom or usage or so that the product name is not misleading. If the names of more than one such ingredient are shown, they shall appear in the order of their respective predominance by weight in the product. All such ingredient names and the primary descriptive term shall be in the same size, style and color print. For the purpose of this provision, water sufficient for processing shall be excluded when calculating the percentage of the named ingredient(s). However, such named ingredient(s) shall constitute at least 10 percent of the total product.

42.3(7) Contractions or coined names referring to ingredients shall not be used in the brand name of a pet food unless it is in compliance with subrule 42.3(1), 42.3(4), 42.3(5), or 42.3(6).

21--42.4(198) Expression of guarantees.

42.4(1) The sliding scale method of expressing a guaranteed analysis (for example, "protein 15-18 percent") is prohibited.

42.4(2) Pursuant to Iowa Code section 198.5, the label of a pet food which is formulated as and represented to be a mineral supplement shall include in the guaranteed analysis the minimum and maximum percentages of calcium, the minimum percentage of phosphorus and the minimum and maximum percentages of salt. The minimum content of all other essential nutrient elements recognized by the AAFCO Dog or Cat Food Nutrient Profile or other AAFCO-recognized nutrient profile from sources declared in the ingredient statement shall be expressed as the element in units specified in the recognized nutrient profile. Products labeled as per 42.2(2) may express the mineral guarantees in milligrams (mg) per unit (e.g., tablets, capsules, granules, or liquids) consistent with those employed in the quantity statement and directions for use. Liquids expressed as volume must also list a weight equivalent (e.g., 1 fl. oz. = 28 grams).

42.4(3) Vitamins guaranteed on pet food labels shall be stated in international units per kilogram (IU/kg) for vitamins A, D, and E. All other vitamins shall be stated in milligrams per kilogram (mg/kg) except vitamin B₁₂ which may be guaranteed in micrograms per kilogram (ug/kg).

42.4(4) The label of a pet food which is formulated as and represented to be a vitamin supplement shall include a guarantee of the minimum content of each vitamin declared in the ingredient statement. Vitamin guarantees shall be expressed as per 42.4(3). Products labeled as per 42.2(2) may express the vitamin guarantees in approved units (e.g., IU, mg, g) per unit (e.g., tablets, capsules, granules, or liquids) consistent with those employed in the quantity statement and directions for use. Liquids expressed as volume must also list a weight equivalent (e.g., 1 fl. oz. = 28 grams).

42.4(5) If the label of a pet food does not represent the pet food to be either a vitamin or a mineral supplement, but does include a table of comparison of a typical analysis of the vitamin, mineral, or nutrient content of the pet food with levels recommended by an AAFCO-recognized animal nutrition authority, such comparison may be stated in the units of measurement used in the AAFCO Dog or Cat Food Nutrient Profiles. The statement in a table of comparison of the vitamin, mineral, or nutrient content shall constitute a guarantee, but need not be repeated in the guaranteed analysis. Such table of comparison may appear on the label separate and apart from the guaranteed analysis.

42.4(6) The use of percentages or words of similar import when referring to nutrient levels established by the AAFCO Dog or Cat Food Nutrient Profiles or other AAFCO-recognized nutrient profile shall not be permitted on pet food labels, except that such direct comparisons in whole or part of the individual nutrient contents of a pet food with those recommended by the recognized nutrient profile may be made where the comparisons are expressed in the same quantitative units as those used by the cited nutrient profile, and

1. The product in question meets the nutrient profile recommended by the authority, and

2. The comparison is preceded by a statement to that effect.

42.4(7) Guarantees for crude protein, crude fat, and crude fiber are not required when the pet food is intended for purposes other than to furnish these substances or they are of minor significance relating to the primary purpose of the product, such as mineral or vitamin supplements.

21--42.5(198) Ingredients.

42.5(1) The maximum moisture in all pet foods shall be guaranteed and shall not exceed 78 percent or the natural moisture content of the constituent ingredients of the product, whichever is greater. Pet foods such as those consisting principally of stew, gravy, sauce, broth, juice or a milk replacer which are so labeled may contain moisture in excess of 78 percent.

42.5(2) Each ingredient of the pet food shall be listed in the ingredient statement, and names of all ingredients in the ingredient statement must be shown in letters or type of the same size. The failure to list the ingredients of a pet food in descending order by their predominance by weight in nonquantitative terms may be misleading. Any ingredient for which the Association of American Feed Control Officials has established a name and definition shall be identified by the name so established. Any ingredient for which no name and definition have been so established shall be identified by the common or usual name of the ingredient. Brand or trade names shall not be used in the ingredient statement.

42.5(3) The term "dehydrated" may precede the name of any ingredient in the ingredient list that has been artificially dried.

42.5(4) No reference to quality or grade of an ingredient shall appear in the ingredient statement of a pet food.

42.5(5) No reference to the quality, nature, form, or other attribute of an ingredient shall be made unless such designation is accurate and unless the ingredient imparts a distinctive characteristic to the pet food because it possesses that attribute.

21--42.6(198) Drugs and pet food additives.

42.6(1) An artificial color may be used in a pet food only if it has been shown to be harmless to pets. The permanent or provisional listing of an artificial color in the United States Food and Drug Regulations as safe for use, together with the conditions, limitations, and tolerances, if any, incorporated therein, shall be deemed to be satisfactory evidence that the color is, when used pursuant to such regulations, harmless to pets.

42.6(2) Prior to approval of a registration application or approval of a label for pet food which contains additives (including drugs, other special purpose additives, or nonnutritive additives), the distributor may be required to submit evidence to prove the safety and efficacy of the pet food when used according to directions furnished on the label. Satisfactory evidence of the safety and efficacy of a pet food may be:

1. When the pet food contains such additives, the use of which conforms to the requirements of the applicable regulation in the Code of Federal Regulations, Title 21, or which are "prior sanctioned" or "generally recognized as safe" for such use, or

2. When the pet food itself is a drug as defined in Iowa Code section 198.3(6) and is generally recognized as safe and effective for label use or is marketed subject to an application approved by the Food and Drug Administration under Title 21, U.S.C. 360(b).

42.6(3) The medicated labeling format recommended by the Association of American Feed Control Officials shall be used to ensure that adequate labeling is provided.

21--42.7(198) Statements of calorie content. Except as required in 42.8(198), the label of a dog or cat food may bear a statement of calorie content, provided:

42.7(1) The statement shall be separate and distinct from the "Guaranteed Analysis" and shall appear under the heading "Calorie Content"; and

42.7(2) The statement shall be measured in terms of metabolizable energy (ME) on an as-fed basis and must be expressed as "kilocalories per kilogram" ("kcal/kg") of product, and may also be expressed as kilocalories per familiar household measure (e.g., cans, cups, pounds); and

42.7(3) An affidavit shall accompany the request for label review or registration, substantiating that the calorie content was determined:

a. By calculation using the following "Modified Atwater" formula:

ME(kcal/kg) = 10[(3.5 _ CP) + (8.5 _ CF) + (3.5 _ NFE)]

where CP = % crude protein as fed

CF = % crude fat as fed

NFE = % nitrogen free extract (carbohydrate) as fed

and the percentages of CP and CF are the arithmetic averages from proximate analyses of at least four production batches of the product, and the NFE is calculated as the difference between 100 and the sum of CP, CF, and the percentages of crude fiber, moisture and ash (determined in the same manner as CP and CF). The results of all the analyses used in the calculation must accompany the affidavit, and the claim on the label or other labeling must be followed parenthetically by the word "calculated"; or

b. In accordance with a testing procedure established by the Association of American Feed Control Officials. The summary data used in the determination of calorie content must accompany the affidavit. The value stated on the label shall not exceed or understate the value determined in accordance with 42.7(3)"a" by more than 15 percent; and

c. By comparative claims that shall not be false, misleading or given undue emphasis and must be based on the same methodology for both products.

21--42.8(198) Descriptive terms.

42.8(1) Calorie terms.

a. "Light."

(1) Dog food products bearing the term "light," "lite," "low calorie," or words of similar designation shall contain and state on the label no more than 3100 kcal ME/kg for products containing less than 20 percent moisture, no more than 2500 kcal ME/kg for products containing 20 percent or more but less than 65 percent moisture, and no more than 900 kcal ME/kg for products containing 65 percent or more moisture. The label shall bear a calorie content statement in accordance with the format provided in 42.7(198). Feeding directions shall reflect a reduction in calorie intake consistent with the intended use.

(2) Cat food products bearing the term "light," "lite," "low calorie," or words of similar designation shall contain and state on the label no more than 3250 kcal ME/kg for products containing less than 20 percent moisture, no more than 2650 kcal ME/kg for products containing 20 percent or more but less than 65 percent moisture, and no more than 950 kcal ME/kg for products containing 65 percent or more moisture. The label shall bear a calorie content statement in accordance with the format provided in 42.7(198). Feeding directions shall reflect a reduction in calorie intake consistent with the intended use.

b. "Less" or "reduced calories." For dog or cat food product labels bearing a claim of "less calories," "reduced calories," or words of similar designation, the percentage of reduction and the product of comparison shall be explicitly stated and juxtaposed with the claim in the same size, style, and color print. The product label shall also bear a calorie content statement in accordance with the format provided in 42.7(198). Comparisons between products in different categories of moisture content less than 20 percent, 20 percent or more but less than 65 percent, or 65 percent or more are misleading. Feeding directions shall reflect a reduction in calories compared to feeding directions for the product of comparison.

42.8(2) Fat terms.

a. "Lean."

(1) Dog food product labels bearing the term "lean," "low fat," or words of similar designation shall contain and guarantee on the label no more than 9 percent crude fat for products containing less than 20 percent moisture, no more than 7 percent crude fat for products containing 20 percent or more but less than 65 percent moisture, and no more than 4 percent crude fat for products containing 65 percent or more moisture. The product label shall bear a maximum crude fat guarantee immediately following the minimum crude fat guarantee in addition to the mandatory guaranteed analysis information as specified in 42.2(2).

(2) Cat food products bearing the term "lean," "low fat," or words of similar designation shall contain and guarantee on the label no more than 10 percent crude fat for products containing less than 20 percent moisture, no more than 8 percent crude fat for products containing 20 percent or more but less than 65 percent moisture, and no more than 5 percent crude fat for products containing 65 percent or more moisture. The product label shall bear a maximum crude fat guarantee immediately following the minimum crude fat guarantee in addition to the mandatory guaranteed analysis information as specified in 42.2(2).

b. "Less" or "reduced fat." For dog or cat food labels bearing a claim of "less fat," "reduced fat," or words of similar designation, the percentage of reduction and the product of comparison shall be explicitly stated and juxtaposed with the claim in the same size, style, and color print. The product label shall also bear a maximum crude fat guarantee immediately following the minimum crude fat guarantee in addition to the mandatory guaranteed analysis information as specified in 42.2(2). Comparisons between products in different categories of moisture content less than 20 percent, 20 percent or more but less than 65 percent, or 65 percent or more are misleading.

ARC 8064A

The Board approved the termination of the rule making on March 6, 1998.

ARC 8066A

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 Practitioner's Licenses and Endorsements," Iowa Administrative Code.

The proposed amendments increase the fees for the issuance and renewal of licenses, authorizations, and statements of professional recognition; for duplicate licenses, authorizations and statements of professional recognition; for one-year emergency licenses; and for evaluation. The fee for endorsements added to a license after initial issuance remains the same.

There will be a public hearing on the proposed amendments at 10 a.m. on June 25, 1998, 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 the public hearing orally or in writing. Persons who wish to make an oral presentation at the public hearing may contact the Executive Director, Board of Educational Examiners, Grimes State Office Building, E. 14th and Grand Avenue, Des Moines, Iowa 50319-0147, or at (515)281-5849.

Fax communication may be sent to (515)281-7669, or E-mail at akruse@ed.state.ia.us.

Any interested person may make written comments or suggestions on the proposed amendments through June 26, 1998. Written comments and suggestions should be addressed to Dr. Anne Kruse, Executive Director, Board of Educational Examiners, at the address above.

These amendments are intended to implement Iowa Code chapter 272.

Amend rule 282--14.30(272) as follows:

282--14.30(272) Licensure and authorization fee.

14.30(1) Issuance and renewal of licenses, authorizations, and statements of professional recognition. The fee for the issuance of each initial practitioner's license, the evaluator license, the statement of professional recognition, and the coaching authorization and the renewal of each license, evaluator approval license, statement of professional recognition, and coaching authorization shall be $25 $50.

14.30(2) Adding endorsements. The fee for the addition of each endorsement to a license, following the issuance of the initial license and endorsement(s), shall be $25.

14.30(3) Duplicate licenses, authorizations, and statements of professional recognition. The fee for the issuance of a duplicate practitioner's license, evaluator license or coaching authorization shall be $5 $10.

14.30(4) Evaluation fee. Each application from an out-of-state institution for initial licensure shall include, in addition to the basic fee for the issuance of a license, a one-time nonrefundable $25 $50 evaluation fee.

Each application or request for a statement of professional recognition shall include a one-time nonrefundable $25 $50 evaluation fee.

14.30(5) One-year emergency license. The fee for the issuance of a one-year emergency license based on an expired conditional license or an expired administrative decision license shall be $50 $100.

ARC 8050A

Pursuant to the authority of Iowa Code sections 17A.3 and 68B.32A, the Iowa Ethics and Campaign Disclosure Board proposes to amend Chapter 4, "Campaign Disclosure Procedures," Iowa Administrative Code.

The subdivision of Chapter 4 was begun with rule making under ARC 8047A and ARC 8049A published herein, effective July 8, 1998, which broke the chapter into two divisions. Items 1 through 4 of this proposed rule making would further subdivide Division I of the chapter, "General," into three divisions to allow for easier identification of rules within the chapter that relate to a particular area of interest. The specific divisions created by this action are Division I, "Organizational Requirements," Division II, "Reporting and Financial Transaction Requirements," and Division III, "PoliticalMaterial--Attribution Statements." Current Division II, "Corporate Political Activity," would become Division IV of the chapter, and current Division III, "Independent Expenditures and In-kind Contributions," would become Division V of the chapter. The rules currently in Chapter 4 are transferred and renumbered or rewritten, as necessary, to incorporate current statutory interpretations into the relevant rule provisions. The overall intent is not to make significant substantive change in the Board's administration or policy, but rather to make it easier for interested and affected persons to be able to find rule provisions which may impact their activity, through the use of topical subdivisions and the splitting of lengthy rules into multiple rules with specific subject headings and subheadings.

To avoid possible misunderstanding, however, it is contemplated that these proposed rules would not become effective until after the November 1998 general elections, with the exception of Item 42, which revises the rule regarding transactions with trusts, which the board contemplates would become effective at the earliest possible effective date under standard procedures, September 2, 1998.

The following table explains the proposed reorganization:

Any interested person may make written comments on these proposed rules on or before June 23, 1998. Written comments should be addressed to Kay Williams, Executive Director, Iowa Ethics and Campaign Disclosure Board, 514 E. Locust Street, Suite 104, Des Moines, Iowa 50309.

These amendments are intended to implement Iowa Code sections 56.3, 56.3A, 56.4, 56.5, 56.6, 56.7, 56.41 and 68B.32A.

The following amendments are proposed.

ITEM 1. Amend 351-Chapter 4 by rescinding the heading "Division I, General," including rules 351-4.1(56) through 351--4.22(56), and adopting the heading "Division I, Organizational Requirements," to include rules 351-4.1(56,68B) through 351-4.19(56,68B).

ITEM 2. Amend 351-Chapter 4 by renaming and renumbering the heading "Division II, Corporate Political Activity," including rules 351-4.23(56) through 351-- 4.31(56), as "Division IV, Corporate Political Activity," including rules 351-4.80(56) through 351--4.99(56).

ITEM 3. Amend 351-Chapter 4 by renaming and renumbering the heading "Division III, Independent Expenditures and In-kind Contributions," including rules 351- 4.100(56,68B) through 351--4.109(56,68B), as "Division V, Independent Expenditures and In-kind Contributions," including rules 351-4.100(56,68B) through 351-- 4.109(56,68B).

ITEM 4. Amend 351-Chapter 4 by inserting the heading, "Division II, Reporting and Transaction Requirements," including rules 351-4.20(56,68B) through 351-- 4.69(56,68B), by inserting the heading "Division III, Political Material--Attribution Statements," including rules 351-4.70(56,68B) through 351--4.79(56,68B), and by inserting the heading "Division VI, Committee Dissolution," including rules 351--4.110(56,68B) through 351-- 4.119(56,68B).

ITEM 5. Rescind rules 351--4.1(56) through 351-- 4.2(56) and 351--4.5(56).

ITEM 6. Renumber rules 351--4.23(56) through 351-- 4.26(56) as 351--4.80(56,68B) through 351-- 4.83(56,68B), 351--4.28(56) and 351--4.29(56) as 351-- 4.86(56,68B) and 351--4.87(56,68B), and 351--4.31(56) as 351--4.88(56,68B).

ITEM 7. Amend 351-Chapter 4 by adopting the following new rule 351-4.1(56,68B):

351--4.1(56,68B) Requirement to file statement of organization (DR-1)--persons subject to requirements; financial thresholds; where to file; when due.

4.1(1) Persons subject to requirement. Every committee shall file a statement of organization (Form DR-1) within ten days from the date of its organization. The forms shall be either typewritten or printed legibly in black ink.

a. "Committee" defined. A "committee" includes a "candidate's committee," which is the entity required to be created when a candidate has exceeded the $500 organizational threshold, even though the organization may consist only of the candidate. A "committee" also includes a "political committee," which is the entity required to be created when two or more individuals have exceeded the $500 organizational threshold for permanent or temporary political purposes.

b. When organization occurs; financial thresholds. At the latest, organization is construed to have occurred as of the date that the committee first exceeded $500 of financial activity in a calendar year in any of the following categories: contributions received (aggregate of monetary and in-kind contributions); expenditures made; or indebtedness incurred.

c. Permanent organizations temporarily engaging in activity for political purposes. The requirement to file the statement of organization applies to an entity which comes under the definition of a "political committee" because it is an association, lodge, society, cooperative, union, fraternity, sorority, educational institution, civic organization, labor organization, religious organization, professional organization or other permanent organization which temporarily engages in political activity by accepting contributions in excess of $500 in the aggregate, making expenditures in excess of $500 in the aggregate, or incurring indebtedness in excess of $500 in the aggregate in any one calendar year for the purpose of supporting or opposing the election of a candidate for public office, or for the purpose of supporting or opposing the passage of a ballot issue.

4.1(2) Place of filing.

a. Board office. Statements of organization for the following committees shall be filed with the board at its office, 514 E. Locust, Suite 104, Des Moines, Iowa 50309:

(1) Candidates' committees for elected state office (legislative or statewide);

(2) Political committees supporting or opposing the election of multiple candidates for elected state office (legislative or statewide), also referred to as "statewide PAC (political action committees)";

(3) State statutory political committees (state parties);

(4) Political committees supporting or opposing the passage of a statewide ballot issue.

b. County commissioner of elections. Statements of organization for the following committees shall be filed with the county commissioner (county auditor) responsible under Iowa Code section 47.2 for conducting the election at which an elected public office or ballot issue is voted upon:

(1) Candidate's committees for candidates seeking election to a public office at the county, school, city, township or other nonlegislative district level, also referred to as "county/local candidate's" committees.

(2) Political committees supporting or opposing the election of multiple candidates for elected county or local office, also referred to as "county PACs."

(3) County or city statutory political committees (central committees); however, the committee shall file a copy of the statement of organization with the board.

(4) Political committees supporting or opposing the passage of a county or local referendum, franchise, or other ballot issue, also referred to as a county or local "ballot issue (or franchise election) committee."

(5) Political committees other than central committees established to support a nonpartisan slate of specific municipal or school board candidates, also referred to as a "slate committee."

c. Filing requirements for committees active at both the state and county/local level or active within multiple counties.

(1) Political committees supporting or opposing the election of candidates both for state office and for county or local office shall file the statement of organization with the board.

(2) Political committees which support or oppose passage of a statewide ballot issue and one or more county/local ballot issues shall file the statement of organization with the board.

(3) Political committees which support or oppose passage of a county/local ballot issue where there are multiple elections under the jurisdiction of multiple county commissioners shall file duplicate originals with each of the appropriate county commissioners. (Also see rule 351-- 4.7(56,68B).)

(4) Political committees which support or oppose the election of county or local candidates where there are multiple elections under the jurisdiction of multiple county commissioners shall file duplicate originals with each of the appropriate county commissioners.

4.1(3) Time of filing. A statement of organization is deemed to be delinquent if it is not received in the appropriate office or mailed bearing a United States Postal Service postmark dated within ten days after the date of organization. However, if the tenth day falls on a Saturday, Sunday, or holiday on which the office of the board or county commissioner where the statement is required to be filed is closed, the filing deadline is extended to the first working day following, and statements of organization received or postmarked on that day will not be considered to be delinquent.

This rule is intended to implement Iowa Code sections 56.4 and 56.5.

ITEM 8. Amend 351-Chapter 4 by adopting the following new rule 351-4.2(56,68B):

351--4.2(56,68B) Information required: committee name.

4.2(1) Full name required. The statement of organization shall include the full name of the committee. A committee which uses an abbreviation or acronym as part of its committee name shall provide a written explanation of the full word or words which are abbreviated or form the acronym. The explanation may be provided with the committee's statement of organization and shall be provided to the board upon request.

4.2(2) Duplication of name prohibited. The committee name shall not substantially duplicate the name of another committee organized under Iowa Code chapter 56. In cases of dispute, the board shall determine whether two committee names are in substantial duplication in violation of this rule and Iowa Code section 56.5. However, if a candidate with a preexisting open candidate's committee or previously dissolved candidate's committee organizes a new candidate's committee for a new election or for a new office sought, the same committee name may be used provided that the name is in compliance with Iowa Code section 56.5(2)"a" and subrule 4.2(3) and that any open committee for the candidate with the same name is dissolved simultaneously with the organization of the new committee.

4.2(3) Candidate's surname required in committeename--candidate's committees. For candidate's committees filing initial statements of organization on or after July 1, 1995, the candidate's surname shall be contained within the committee name. This requirement also applies to new candidate's committees organized by candidates who have a preexisting candidate's committee, but who organize a new candidate's committee for a new election or for a new office sought.

This rule is intended to implement Iowa Code section 56.5.

ITEM 9. Amend 351-Chapter 4 by renumbering rule 351--4.3(56) as 351--4.41(56,68B) and adopting the following new rule 351-4.3(56,68B):

351--4.3(56,68B) Information required: committee purpose; party affiliation. The committee shall identify the purpose of the committee on the statement of organization. The purpose shall be indicated in part by designating the committee as one of the following types of committees:

Type 1 - A candidate's committee for a statewide or legislative candidate.

Type 2 - A political committee other than a central committee which supports or opposes multiple candidates at the state level, also referred to as a "statewide PAC (political action committee)." This committee type also includes a political committee other than a central committee which supports or opposes the passage of a statewide ballot issue.

Type 3 - A state statutory political committee, also referred to as a "state party."

Type 4 - A candidate's committee for a candidate seeking election to a public office at the county, school, city, township or other nonlegislative district level, also referred to as a "county/local" candidate's committee.

Type 5 - A political committee other than a central committee which supports or opposes the election of multiple county/local candidates, also referred to as a "county PAC."

Type 6 - A political committee which supports or opposes passage of a referendum, franchise, or other ballot issue, also referred to as a "ballot issue/franchise" committee.

Type 7 - A city or county statutory political committee, also referred to as a "county (or city) central committee."

Type 8 - A political committee other than a central committee established to support a nonpartisan slate of specific municipal or school board candidates, also referred to as a "slate committee."

Candidate's committees are deemed to be established for the purpose of supporting the election of the candidate for public office. All candidate's committees shall designate the political affiliation of the candidate. All political committees shall designate that they are either established for the purpose of supporting or opposing the election of candidates or for the purpose of supporting or opposing the passage of a ballot issue. A political committee established to support or oppose the election of candidates shall, in addition, include in its description of purpose the party affiliation of all candidates whom the committee is supporting. However, if the committee is supporting candidates who are not of the same political affiliation, the committee shall include in its description of purpose that the committee supports candidates of multiple parties. Likewise, if the committee is exclusively supporting candidates in nonpartisan elections, the description of purpose shall so indicate.

This rule is intended to implement Iowa Code section 56.5.

ITEM 10. Amend 351-Chapter 4 by renumbering rule 351--4.4(56) as 351--4.73(56,68B) and adopting the following new rule 351-4.4(56,68B):

351--4.4(56,68B) Information required: officers; committee information; signatures.

4.4(1) Committee officers. The committee shall indicate on the statement of organization the name, mailing address, telephone number, and office of the committee officers. Every candidate's committee shall have at least a treasurer who shall be an Iowa resident who has reached the age of majority. Every political committee shall have at least a treasurer and a chairperson, each of whom shall have reached the age of majority.

4.4(2) Committee address and telephone number. The address and telephone number of the treasurer as indicated on the statement of organization shall be considered to be the official committee address and telephone number to be used for routine communication from the board to the committee.

4.4(3) Signatures. The statement of organization shall be signed by both the treasurer and candidate, in the case of a candidate's committee, or by the treasurer and chairperson, in the case of a political committee.

This rule is intended to implement Iowa Code section 56.5.

ITEM 11. Amend 351-Chapter 4 by adopting the following new rule 351-4.5(56,68B):

351--4.5(56,68B) Information required: identification of financial institution; account names; voided check. The committee shall indicate on the statement of organization the name and mailing address of all financial institutions in which committee funds are maintained. The name(s) and type(s) of the account(s) shall also be provided, and shall be the same name as the committee name as it appears on the statement of organization. For all checking accounts, the committee shall attach a copy of a voided check to the statement of organization. If funds are maintained in financial accounts or instruments other than checking or savings accounts, an explanation of the type of account or instrument shall be provided with the identification of the financial institution and account name.

This rule is intended to implement Iowa Code section 56.5.

ITEM 12. Amend 351-Chapter 4 by adopting the following new rule 351-4.6(56,68B):

351--4.6(56,68B) Amendments to statement of organization; requirement for new statement of organization for new office sought.

4.6(1) Amendment within 30 days. If there are changes in any of the information required on the statement of organization, the committee shall complete and file an amended statement of organization with the board or the county commissioner (county auditor), as appropriate, within 30 days of the change.

4.6(2) New statement of organization for new office sought. For purposes of more accurate public disclosure, improved financial accounting, and administrative efficiency, a candidate who determines to seek a different elective office than originally indicated on the statement of organization shall organize a new committee by filing a new statement of organization and opening a new committee account(s). For example, a prior city council candidate shall file a new statement of organization and form a new committee to seek the office of county supervisor; a prior state representative candidate shall file a new statement of organization and form a new committee to seek the office of state senator; a prior state treasurer candidate shall file a new statement of organization and form a new committee to seek the office of governor. However, a candidate need not file a new statement of organization and form a new committee to seek election or reelection to the same office previously sought; rather, the prior statement of organization shall be amended to reflect the date of the current election. The funds of a prior candidate's committee of the same candidate may be transferred into the new committee account as provided by Iowa Code sections 56.40 and 56.42. The name of the new candidate's committee may be the same as the prior candidate's committee, provided that the prior committee is dissolved simultaneously with the organization of the new committee, and further provided that the committee name is otherwise in compliance with rule 351--4.2(56,68B) and Iowa Code section 56.5 (including the incorporation of the candidate's surname). This subrule shall apply to all candidates who seek a new elective office on or after January 1, 1999.

This rule is intended to implement Iowa Code section 56.5.

ITEM 13. Amend 351-Chapter 4 by adopting the following new rule 351-4.7(56,68B):

351--4.7(56,68B) Committees which support county/local ballot or franchise issues in multiple counties orlocalities--organization. An entity which supports or opposes passage of multiple ballot or franchise issues which appear in multiple counties or localities may operate as a single enterprise, and receive contributions and make expenditures through a single account. However, for the purposes of Iowa Code section 56.5, the entity shall organize as a separate committee for each ballot or franchise issue election which appears on a ballot. If the entity chooses to operate with regard to the multiple elections as a single enterprise, a copy of the committee's statement of organization with original signatures (a duplicate original) shall be filed with each county commissioner (county auditor) responsible for a ballot or franchise issue election whose passage the committee supports or opposes. (Also see rule 351--4.24(56,68B) for financial reporting requirements.)

This rule is intended to implement Iowa Code sections 56.4 and 56.5.

ITEM 14. Reserve rules 351--4.8(56) to 351--4.13(56), 351--4.14(56), 351--4.15(56) and 351--4.17(56) to 351--4.19(56) and rescind and reserve rules 351-- 4.14(56) and 351--4.16(56).

ITEM 15. Amend 351-Chapter 4 by adopting the following new rule 351-4.20(56,68B):

351-4.20(56,68B) Disclosure reporting required--persons subject; minimum filing if no financial activity. Every committee which has filed a statement of organization under Iowa Code section 56.6 and rule 351-4.1(56,68B) shall file a campaign finance disclosure report summary page (DR-2) by the due dates required under Iowa Code section 56.6 and rule 351--4.22(56,68B). A committee which did not have any financial activity (i.e., the committee did not receive any contributions, make any disbursements, or incur any indebtedness) during the relevant reporting period need file only the DR-2 summary page carrying forward balances from the committee's last report. A committee which did have financial activity during the relevant reporting period shall include the pertinent schedule pages detailing the transactions with the DR-2 disclosure summary page.

This rule is intended to implement Iowa Code section 56.6.

ITEM 16. Amend 351-Chapter 4 by adopting the following new rule 351-4.21(56,68B):

351--4.21(56,68B) Disclosure reporting required-- where to file.

4.21(1) Board office. Disclosure reports for the following committees shall be filed with the board at its office, 514 E. Locust, Suite 104, Des Moines, Iowa 50309:

a. Candidates' committees for elected state office (legislative or statewide);

b. Political committees supporting or opposing the election of multiple candidates for elected state office (legislative or statewide), also referred to as "statewide PAC (political action committees)";

c. State statutory political committees (state parties);

d. Political committees supporting or opposing the passage of a statewide ballot issue.

4.21(2) County commissioner of elections. Disclosure reports for the following committees shall be filed with the county commissioner (county auditor) responsible under Iowa Code section 47.2 for conducting the election at which an elected public office or ballot issue is voted upon:

a. Candidate's committees for candidates seeking election to a public office at the county, school, city, township or other nonlegislative district level, also referred to as "county/local candidate's" committees.

b. Political committees supporting or opposing the election of multiple candidates for elected county or local office, also referred to as "county PACs."

c. County or city statutory political committees (central committees); however, the committee shall also file a copy of the report with the board.

d. Political committees supporting or opposing the passage of a county or local referendum, franchise, or other ballot issue, also referred to as a county or local "ballot issue (or franchise election) committee."

e. Political committees other than central committees established to support a nonpartisan slate of specific municipal or school board candidates, also referred to as a "slate committee."

4.21(3) Joint filing requirements for activity at both the state and county/local levels.

a. Political committees supporting or opposing the election of candidates both for state office and for county or local office shall file the original disclosure report with the board and shall file with the appropriate county commissioner(s) (county auditor(s)) a copy of the report summary page (DR-2) and a copy of the page(s) of the report which contain transactions relating to the county/local candidate.

b. Political committees which support or oppose the passage of a statewide ballot issue and one or more county/local ballot issues shall file the original disclosure report with the board and shall file with the appropriate county commissioner(s) a copy of the report summary page (DR-2) and a copy of the page(s) of the report which contain transactions relating to the county/local ballot issue.

c. Political committees which support or oppose passage of a county/local ballot issue where there are multiple elections under the jurisdiction of multiple county commissioners shall file duplicate originals of the report with each of the appropriate county commissioners. (Also see rule 351-- 4.24(56,68B) with regard to the content of the disclosure reports.)

d. Political committees which support or oppose the election of county or local candidates where there are multiple elections under the jurisdiction of multiple county commissioners shall file duplicate originals of the report with each of the appropriate county commissioners.

This rule is intended to implement Iowa Code sections 56.4 and 56.6.

ITEM 17. Amend 351-Chapter 4 by rescinding 351--4.22(56) and adopting the following new rule 351- 4.22(56,68B):

351--4.22(56,68B) Report due dates.

4.22(1) Statewide and general assembly candidates' committees--covering election year.

Report due	Covering period
May 19	January 1 through May 14
Friday preceding primary*	May 15 through Tuesday preceding primary*
July 19	May 15 or Wednesday preceding primary* through July 14
October 19	July 15 through October 14
Friday preceding general*	October 15 through Tuesday preceding general*
January 19 (next calendar year)	October 15 or Wednesday preceding general* through December 31 of election year

*If supplementary report required because additional financial threshold surpassed. See subrule 4.22(4).

4.22(2) Statewide and general assembly candidates' committees--covering nonelection year.

Report due	Covering period
January 19 (next calendar year)	January 1 through December 31 of nonelection year

4.22(3) Statewide and general assembly candidates' committees--covering special election.

Report due	Covering period
14th day prior to election	Date of initial financial activity (or day after period covered by last report, if previous report filed) through 19 days prior to election
Friday preceding election*	18th day preceding election through Tuesday preceding election*

*If supplementary report required because additional financial threshold surpassed. See subrule 4.22(4).

This schedule is in addition to reports which may be required under subrules 4.22(1) and 4.22(2) because of prior or continued existence of the committee.

4.22(4) Statewide and general assembly candidates' committees--election year supplemental reports. In addition to reports required under subrules 1 and 3, a supplemental report is required if contributions received during the period beginning on the date of initial financial activity (if no previous report was filed) or the day after the period covered by the last report (if a previous report was filed), through the Tuesday preceding the primary or general election equal or exceed the following thresholds:

Office sought	Contribution threshold
Governor	$10,000 or more
Other statewide	5,000 or more
General assembly	1,000 or more

4.22(5) County candidates' committees--covering election year.

Report due	Covering period
May 19	January 1 through May 14
July 19	May 15 through July 14
October 19	July 15 through October 14
January 19 (next calendar year)	October 15 through December 31 of election year

4.22(6) County candidates' committees--covering nonelection year.

Report due	Covering period
January 19 (next calendar year)	January 1 through December 31 of nonelection year

4.22(7) Local candidates' committees, local ballot issue or franchise election committees, and slate committees--election year.

Report due	Covering period
May 19	Date of initial financial activity (or day after period covered by last report, if previous report filed) through May 14.
July 19	Date of initial financial activity (or day after period covered by last report, if previous report filed) through July 14.
5 days prior to election**	Date of initial financial activity (or day after period covered by last report, if previous report filed) through 10 days prior to election.
First of month after final election**	Date of initial financial activity (or day after period covered by last report, if previous report filed) to 5 days prior to due date.
January 19 (next calendar year)	Date of initial financial activity (or day after period covered by last report, if previous report filed) through January 14 of filing year.

**The 5 days prior to the election due date may apply multiple times during a year, if there are primary or runoff elections in which a candidate's name is on the ballot, or if a ballot issue or franchise supported or opposed by a committee is on the ballot. The first of the month after final election report is required from a candidate's committee and slate committees supporting a candidate after the last election for that election cycle where the candidate's name was on the ballot. For example, a candidate who is eliminated in a primary would owe the first of the month after final election report on the first of the month after the primary, but would not owe a 5 days prior to election report for the next election to determine the outcome of the contest for the office sought; whereas a candidate who was not eliminated by a primary election (or a general election triggering a runoff election) would owe a report 5 days prior to the general (or runoff) election, but would not owe a first of the month after final election report until the first of the month after the general (or runoff) election in which the final selection for the office sought is determined.

4.22(8) Local candidates' committees, local ballot issue or franchise election committees, and slate committees-- nonelection year.

Report due	Covering period
January 19	Date of initial financial activity (or day after period covered by last report, if previous report filed) through January 14 of filing year.
October 19	Date of initial financial activity (or day after period covered by last report, if previous report filed) through October 14.

4.22(9) Statewide or county PAC (all years).

Report due	Covering period
May 19	January 1 through May 14
July 19	May 15 through July 14
October 19	July 15 through October 14
January 19	October 15 through December 31

4.22(10) State, county, or city statutory political committees (central committees)--election year.

Report due	Covering period
May 19	January 1 through May 14
July 19	May 15 through July 14
October 19	July 15 through October 14
January 19 (next calendar year)	October 15 through December 31 of election year

4.22(11) State, county, or city statutory political committees (central committees)--nonelection year.

Report due	Covering period
October 19	January 1 through October 14
January 19 (next calendar year)	October 15 through December 31 of nonelection year

4.22(12) Definition of "election year."

a. In the case of a candidate's committee, "election year" means a year in which the name of the candidate appears on a ballot for a primary, general, special, or runoff election.

b. In the case of a political committee which supports or opposes the election of candidates, other than a statutory or central committee, "election year" means a year in which the name of a candidate supported or opposed by the political committee appears on a ballot for a primary, general, special, or runoff election.

c. In the case of a statutory or central committee, "election year" means a year in which a primary or general election is held at the respective state, county, or city level.

d. In the case of a political committee which supports or opposes passage of a ballot issue, "election year" means a year in which the question for which passage is supported or opposed by the political committee appears on a ballot at a general or special election.

This rule is intended to implement Iowa Code section 56.6.

ITEM 18. Amend 351-Chapter 4 by adopting the following new rule 351-4.23(56,68B):

351--4.23(56,68B) Time of filing--United States Postal Service postmark required; extension for holidays; facsimile filing.

4.23(1) Late if not received or postmarked with United States Postal Service postmark. A disclosure report is deemed to be delinquent if it is not physically received in the appropriate office or mailed bearing a United States Postal Service postmark dated on or before the report due date. Private postage meters are not acceptable as proof of timely mailing.

4.23(2) Extension for holidays. If the due date falls on a Saturday, Sunday, or holiday on which the office where the statement is required to be filed is closed, the filing due date is extended to the first working day following, and disclosure reports received or postmarked on that day will not be considered to be delinquent. If the due date falls on a date on which the office where the statement is required to be filed is open, even though it is on a day that the United States Postal Service is not postmarking deposited mail, a report is deemed to be delinquent if it is not received in the appropriate office on or before the report due date or mailed bearing a United States Postal Service postmark dated before the due date.

4.23(3) Facsimile filing. Filing by electronic facsimile is acceptable to avoid a report from being deemed delinquent. However, the original forms must be filed to replace the facsimile filing within ten days of the date the facsimile was transmitted.

This rule is intended to implement Iowa Code section 56.6.

ITEM 19. Amend 351-Chapter 4 by adopting the following new rule 351-4.24(56,68B):

351--4.24(56,68B) Committees which support county/local ballot or franchise issues in multiple counties orlocalities--reporting. An entity which supports or opposes passage of multiple ballot or franchise issues which appear in multiple counties or localities may operate as a single entity, and receive contributions and make expenditures through a single account. However, for the purposes of Iowa Code section 56.5, the entity shall file a report for each separate committee which was organized as provided in rule 4.6(56,68B). If the entity chooses to operate with regard to the multiple elections as a single enterprise, a copy of the committee's report with original signatures (a duplicate original) shall be filed with each county commissioner (county auditor) responsible for a ballot or franchise issue election which the committee supports or opposes. However, the purposes of expenditure on Schedule B must include an explanation and indicate the proportion of each expenditure which was for the support or opposition of each ballot or franchise issue.

This rule is intended to implement Iowa Code sections 56.4 and 56.6.

ITEM 20. Amend 351-Chapter 4 by adopting the following new rule 351-4.25(56,68B):

351--4.25(56,68B) Exception from reporting requirement--voluntary reports.

4.25(1) Entities which have not passed financial threshold. An entity which is not subject to the Iowa campaign disclosure law because it has not yet exceeded the $500 financial threshold as defined in subrule 4.1(1), but which files a statement of organization which indicates the support or opposition of the election of candidates or support or opposition of the passage of a ballot issue shall be referred to as a "voluntary committee." A "voluntary committee" will not be considered to be delinquent for failure to comply with filing deadlines unless the entity later becomes subject to the mandatory filing of reports because it has exceeded the financial threshold. If the entity remains under the financial threshold, any documents filed by the entity shall be marked as "voluntary" and kept in the active committee files until: (1) the entity files a notice of dissolution; (2) the entity files a signed statement indicating that the "voluntary committee" has discontinued the use of its funds for political purposes, and that the financial threshold was not and will not be exceeded during the calendar year; or (3) the board orders the committee's file to be removed from the active committee files and placed in the inactive committee files. Upon receipt of an initial report from the entity indicating that the financial threshold has not yet been exceeded, or upon receipt of an initial signed statement from the committee indicating that a report will not be filed because the threshold has not been exceeded, the board staff shall notify the "voluntary committee" of the provisions and requirements of this subrule and subrule 4.25(2).

4.25(2) Statements required from "voluntary committee." A "voluntary committee" within the meaning of subrule 4.25(1) shall provide a signed statement to the board or commissioner, as appropriate, for each reporting period which occurs after the filing of the statement of organization, which attests that the "voluntary committee" has not exceeded the financial threshold through the end of the reporting period. A "voluntary committee" which fails to provide this statement shall be presumed to have exceeded the financial threshold and owe a disclosure report, and may become subject to penalties pursuant to 351--Chapter 6.

4.25(3) Entities which support or oppose public policy or legislative issues. An entity which is not subject to the Iowa campaign disclosure law because it has not yet exceeded the $500 financial threshold, as defined in subrule 4.1(1), but which files a statement of organization which does not indicate the support or opposition of candidates or a ballot issue, but rather indicates support or opposition of a public policy or legislative issue shall be referred to as an "issue advocacy committee." Documents filed by an entity which is an "issue advocacy committee" shall be marked as "voluntary" but shall not be maintained with open or inactive committee files, nor shall the entity be considered to be delinquent for failure to comply with filing deadlines. Upon receipt of a statement of organization from an "issue advocacy committee," the board staff shall notify the entity that it is not subject to the campaign disclosure law and that reports from the entity will not be maintained with political committee files.

This rule is intended to implement Iowa Code sections 56.5 and 56.6.

ITEM 21. Amend 351-Chapter 4 by adopting the following new rule 351-4.26(56,68B):

351--4.26(56,68B) Exception from reporting requirement--reports due within five days of one another. When two reports required by Iowa Code section 56.6 and rule 4.21(56,68B) are due from the same committee within five calendar days of each other, such as when one report is due to be filed with the county commissioner five days prior to an election and a second report is due at a regularly scheduled monthly date, the activity may be combined into one report. A committee which chooses this option shall file a report on or before the earlier of the two due dates which covers an extended reporting period through the period which would have been covered by the second report. A committee which fails to file the report on or before the earlier of the two due dates but files a combined report on or before the second due date will be considered to have been delinquent only with regard to the earlier report.

This rule is intended to implement Iowa Code section 56.6.

ITEM 22. Amend 351-Chapter 4 by renumbering rule 351--4.27(56) as 351--4.85(56,68B) and adopting the following new rule 351-4.27(56,68B):

351--4.27(56,68B) Report forms--summary page (DR-2) and supporting schedules. The board may require committees to submit relevant information not specifically delineated in Iowa Code chapter 56 on their disclosure report where the report form asks and leaves space for information. All information shall be pertinent to the duties of the board.

4.27(1) Official reporting forms. The disclosure reporting forms provided by the board shall be the official forms on which the disclosure reports shall be submitted. Machine copies of original report forms are acceptable. The standard forms for campaign disclosure reports are:

DR-2 - Disclosure Summary Page

Schedule A - Monetary Receipts

Schedule B - Monetary Expenditures

Schedule C - (Reserved)

Schedule D - Incurred Indebtedness

Schedule E - In-kind Contributions

Schedule F - Loans Received and Repaid

Schedule G - Consultant Activity

Schedule H - Campaign Property

4.27(2) Computer-generated reports. Disclosure reports generated by committees through the use of reporting software issued by the board are per se acceptable in lieu of use of the board's approved paper forms. Computer-generated or printed disclosure reports generated by software other than the reporting software issued by the board may be acceptable, subject to prior board approval.

4.27(3) Typewritten or legible ink reports required. Information which is provided on all forms shall be either typewritten or printed legibly in black ink. Approved computer-generated reports satisfy this requirement.

4.27(4) Special information required for municipal, school, or local ballot issue elections. Committees supporting or opposing the election of a municipal candidate, school board candidate, or the passage of a local ballot issue shall indicate in the designated spaces on the DR-2 the date on which the election is to be held, the period covered by the disclosure report, and the control county responsible for conducting the election.

4.27(5) Signatures on DR-2 Report Summary Page. In the case of a political committee, the DR-2 Report Summary Page shall be signed by the treasurer or chairperson of the committee. In the case of a candidate's committee, the DR-2 Report Summary Page shall be signed by the treasurer or candidate.

This rule is intended to implement Iowa Code sections 56.6 and 56.7.

ITEM 23. Amend 351-Chapter 4 by adopting the following new rule 351-4.28(56,68B):

351--4.28(56,68B) Schedule A - Monetary Receipts.

4.28(1) Reporting of all monetary receipts; chronological or alphabetical listings. The committee shall report the amounts of all monetary receipts which are accepted by the committee during the reporting period. If a contribution is returned to a contributor prior to the end of the reporting period and is not deposited into the committee's bank account, the contribution is deemed to have been rejected and shall not be reported. A contribution which is physically received and either deposited into the committee's account or not returned by the end of the reporting period is deemed to have been accepted. The schedule entries shall be listed in either chronological or alphabetical order by name of contributor.

4.28(2) Date of contribution--date received. The schedule shall include the complete date (month/day/year) the contribution was physically received by a person on behalf of the committee. If the contribution is by check, the date of the contribution to be reported is the date the check is physically received by a person on behalf of the committee, even if this date is different from the date shown on the check.

4.28(3) Name and address of contributor; joint accounts. The schedule shall include the name and address of each person who has made one or more contributions of money to the committee if the aggregate amount of contributions (either monetary or in-kind) received from that person in the calendar year exceeds $25, except that the itemization threshold is $200 for a state statutory political committee and $50 for a county statutory political committee. In the case of a contribution by check, the contributor name on the disclosure report shall be the name shown as the account name on the account, except that if the check is on a joint account, the contribution shall be presumed to be from the person who signs the check. If the committee chooses to itemize contributions that are less than the required itemization threshold, it may do so, but shall either do so for all contributions or no contributions under the threshold.

4.28(4) Unitemized contributions and freewill donations. If the committee does not choose to itemize all contributions under the itemization threshold ($25 for most committees -- see Iowa Code section 56.6(3)"b"), it shall aggregate these contributions and report the aggregate amount as "unitem-ized contributions." No date received is required to be provided for miscellaneous unitemized contributions. Unitem-ized contributions may be solicited and received through a freewill donation such as a "fish bowl" or "pass the hat" collection if the collection is in compliance with rule 351-4.46(56,68B) (requiring notice to contributors and the keeping of internal records by the committee regarding identification of persons contributing more than $10). Unitem-ized contributions collected through freewill donations (the net amount of the collection after the itemization of those persons whose contributions of more than $10 in the freewill collection resulted in exceeding the annual itemization threshold) shall be reported by showing the net amount as "unitemized contributions -- pass the hat (or can collection or fish bowl, for example) collection." The "date received" to be reported for a freewill donation is the date a representative of the committee takes possession of the proceeds of the collection.

4.28(5) Relationship to candidate. In the case of contributions to candidates' committees, the schedule shall include information indicating whether the contributor is related to the candidate within the third degree of consanguinity or affinity. "Consanguinity" means a relative through descent from common ancestors (by blood). "Affinity" means a relative through a current marriage. A husband has the same relation, by affinity, to his wife's blood relatives as she has to them by consanguinity and vice versa. "Degree of kinship" is determined by counting upward from one of the persons in question to the nearest common ancestor, and then down to the other person, calling it one degree for each generation in the ascending as well as the descending line. Under this rule, a woman's sister is related to her by consanguinity in the second degree. The sister is thus related to the woman's husband by affinity in the second degree. Other examples of relationships within the third degree between a contributor and a candidate would be the following: children and stepchildren (first degree); siblings and half-siblings (second degree); grandparents (second degree); grandchildren (second degree); aunts and uncles (third degree); nieces and nephews (third degree); great-grandparents (third degree) and great-grandchildren (third degree), all irrespective of whether the blood relationship is to the candidate or to the candidate's spouse.

4.28(6) PAC ID number and PAC check number. If a monetary contribution to a statewide or general assembly candidate is from a political committee other than a statutory committee (i.e., from a PAC), the candidate's committee receiving the contribution shall include in the spaces provided the board-assigned identification number of the contributing PAC and the PAC check number by which the contribution was made. A list of PAC ID numbers may be obtained from the board.

4.28(7) Fund-raiser income. Contributions arising from the sale of goods or services at a fund-raising event shall be designated by marking the indicated space on the schedule.

4.28(8) Interest and other monetary receipts other than contributions. If the monetary receipt is not a "contribution," the name and address of the source of the funds shall be identified in the space provided for the name and address of "contributor," with a notation as to the purpose of the payment, such as "bank interest."

4.28(9) Reverse entries--refunds. If a committee determines to decline or otherwise return a contribution after it has been received, accepted, and deposited, the committee may issue a refund to the contributor, which shall be reported on Schedule A as a reverse entry, reducing the monetary receipts.

This rule is intended to implement Iowa Code section 56.6.

ITEM 24. Amend 351-Chapter 4 by adopting the following new rule 351-4.29(56,68B):

351--4.29(56,68B) Schedule B - Monetary Expenditures.

4.29(1) Date expended. The committee shall report the amounts of all itemized expenditures (expenditures of $5 or more) made by the committee for the reporting period chron-ologically by the date expended. The date of the expenditure is the date the check is issued. The complete date (month/day/year) shall be provided.

4.29(2) Name and address of recipient. The schedule shall include the name and address of each person to whom disbursements, other than loan repayments, were made during the reporting period. (Loan repayments shall be reported on Schedule F.)

4.29(3) Purpose of expenditure. The schedule shall include a description of the purpose of each disbursement. The description shall be a clear and concise statement that specifically describes the transaction which has occurred. The following general terms are examples of descriptions which are not acceptable: "expenses," "reimbursement," "candidate expense," "services," "supplies," and "miscellaneous expense." The following are examples of acceptable descriptions: "printing--candidate yard signs," "printing--PAC membership solicitation letter," "mailing--candidate brochures," "reimbursement for candidate lodging to attend campaign event," or "mileage reimbursement--150 miles @ 25cents per mile." A combined description is not acceptable unless sufficient information is provided so that the cost of separate purposes can be discerned, for example, "printing and mailing of 1,000 brochures."

4.29(4) Miscellaneous (unitemized) expenses. Notwithstanding the other provisions of this rule, disbursements of less than $5 may be shown as miscellaneous disbursements or expenses for the period so long as the aggregate miscellaneous disbursements to any one person during a calendar year do not exceed $100.

4.29(5) Candidate ID number and PAC check number. If a contribution is made by a political committee other than a statutory committee (i.e., by a PAC) to a statewide or general assembly candidate, the PAC making the contribution shall include in the spaces provided the board-assigned identification number of the recipient candidate's committee and the PAC check number by which the contribution was made. A list of candidate ID numbers may be obtained from the board.

4.29(6) Check transactions required. All disbursements, including all expenditures and any other withdrawals from committee funds, shall be by check. Cash withdrawals and "petty cash" accounts are not permitted. Committees' activities which necessitate cash drawers or other cash transactions shall be conducted and reported as provided by rule 351-4.54(56,68B).

4.29(7) Reverse entries--refunds. If a committee receives a refund of all or part of a disbursement previously made, the committee shall report the refund on Schedule B as a reverse entry, reducing the monetary expenditures. The purpose should include an explanation as to why the refund was made.

4.29(8) Interest paid; bank charges. Although repayments of loan principal is reported on Schedule F (see rule 351-4.33(56,68B)), interest payments on loans shall be reported on Schedule B. Bank service charges and fees (e.g., monthly service fees, costs for check printing, returned check charges) shall also be reported and identified on Schedule B.

This rule is intended to implement Iowa Code section 56.6.

ITEM 25. Amend 351-Chapter 4 by adopting the following new rule 351-4.31(56,68B):

351--4.31(56,68B) Schedule D - Incurred Indebtedness.

4.31(1) Reporting of debts and obligations other than monetary loans. The committee shall report all debts and obligations owed by the committee which are in excess of the thresholds in subrule 4.28(3). This applies to any unpaid debt or obligations incurred by the committee for the purchase of a good or service, either as a debt or obligation owed to the immediate provider of the good or service, or as a debt or obligation owed to an individual who initially personally paid for the good or service on behalf of the committee with the expectation of ultimately receiving reimbursement from the committee. However, monetary loans to the committee (which are deposited directly into the committee's account) shall be reported on Schedule F, not on Schedule D.

4.31(2) Date incurred; balance owed. The committee shall report the amounts of all indebtedness owed by the committee at the end of the reporting period, reported chronologically by the date incurred. The date the debt or obligation is incurred is the date on which the committee committed to obtaining the good or service underlying the obligation. This date may be earlier than the date the provider of the good or service issues a bill to the committee. For example, if the committee places a printing order, but the printer does not issue a bill until some time after the order is placed, the date which shall be reported as the date the debt was incurred is the date the order was placed, not the date the bill was issued. If the precise amount of the final bill is not known by the time the report is due, the committee shall provide its best estimate as to what the obligation will be, with an indication "(e)" that the amount reported is an estimate. The complete date (month/day/year) shall be provided. Debts and obligations incurred and reported in a prior reporting period but which remain unpaid as of the end of the current reporting period shall be included, showing the remaining balance on the obligation, as well as any new obligations incurred in the current reporting period. Payments of all or part of a previously reported obligation shall be reported as expenditures on Schedule B.

4.31(3) Name and address of person to whom the debt or obligation is owed. The schedule shall contain the name and address of each person to whom obligations are owed, including both those obligations which were incurred during the reporting period and those outstanding obligations which are being carried forward from prior reports. If the obligation is owed to an individual who initially personally paid for the good or service on behalf of the committee with the expectation of ultimately receiving reimbursement from the committee, the original nature of the obligation shall be provided; the name and address of the original provider of the good or service shall also be provided, unless the nature of the obligation describes the obligation as anticipated reimbursement for mileage or postage stamps.

4.31(4) Nature of obligation. The schedule shall include a description of the nature of each obligation. The description shall be a clear and concise statement that specifically describes the transaction which has occurred. The following general terms are examples of descriptions which are not acceptable: "expenses," "reimbursement," "candidate expense," "services," "supplies," and "miscellaneous expense." The following are examples of acceptable descriptions: "printing--candidate yard signs," "printing--PAC membership solicitation letter," "mailing--candidate brochures," "anticipated reimbursement for candidate lodging to attend campaign event," or "anticipated mileage reimbursement--150 miles @ 25cents per mile." A combined description is not acceptable unless sufficient information is provided so that the cost of separate purposes can be discerned, for example, "printing and mailing of 1,000 brochures."

This rule is intended to implement Iowa Code section 56.6.

ITEM 26. Amend 351-Chapter 4 by adopting the following new rule 351-4.32(56,68B) and renumbering 351--4.32(56,68B) as 351--4.84(56,68B):

351--4.32(56,68B) Schedule E - In-kind Contributions.

4.32(1) Reporting of all in-kind contributions; chronological or alphabetical listings. The committee shall report the amounts of all in-kind contributions which are accepted by the committee during the reporting period. The schedule entries shall be listed in either chronological or alphabetical order by name of contributor.

4.32(2) Date of contribution--date received. The schedule shall include the complete date (month/day/year) on which the in-kind contribution was physically received by a person on behalf of the committee.

4.32(3) Name and address of contributor. The schedule shall include the name and address of each person who has made one or more in-kind contributions to the committee if the aggregate amount of contributions (either monetary or in-kind) received from that person in the calendar year exceeds $25, except that the itemization threshold is $200 for a state statutory political committee and $50 for a county statutory political committee.

4.32(4) Relationship to candidate. In the case of in-kind contributions to candidates' committees, the schedule shall include information indicating whether the contributor is related to the candidate within the third degree of consanguinity or affinity, as defined in subrule 4.28(5).

4.32(5) Description of in-kind contribution; loaned equipment as in-kind contribution.

a. The schedule shall include a description of the good or service contributed to the committee in-kind. The description shall be a clear and concise statement that specifically describes the transaction which has occurred.

b. Use by a committee of equipment owned by another organization, committee, or individual is reportable as an in-kind contribution. Equipment includes, but is not limited to, typewriters, calculators, copy machines, office furniture, computers and printers.

4.32(6) Fair market value. The committee shall provide either the actual (if known) or estimated fair market value of the good or service received.

4.32(7) Fund-raiser item. Goods or services contributed in-kind for sale at a fund-raising event shall be designated by marking the indicated space on the schedule.

4.32(8) Unitemized contributions. Notwithstanding the other provisions of this rule, in-kind contributions with a fair market value less than the itemization threshold noted in subrule 4.32(3) may be reported as "unitemized in-kind contributions."

This rule is intended to implement Iowa Code section 56.6.

ITEM 27. Amend 351-Chapter 4 by adopting the following new rule 351-4.33(56,68B):

351--4.33(56,68B) Schedule F - Loans Received and Repaid.

4.33(1) Reporting of monetary loans (not debts and obligations for goods and services). The committee shall report all loan activity made to or repaid by the committee during the reporting period. This applies to any loan of money which is deposited into the committee's accounts. However, other debts and obligations owed for the provision of goods or services to the committee (which are not monetary advances deposited into the committee's account) shall be reported on Schedule D, not on Schedule F.

4.33(2) Report of lump sum of unpaid loans carried over from last report. The schedule shall contain a beginning entry of the total unpaid loans as of the last report. Loansreceived and itemized on prior reports should not be re-itemized on the current report, except as necessary to indicate repayment activity.

4.33(3) Date received. The schedule shall include the complete date (month/day/year) the loan was physically received by a person on behalf of the committee. If the loan was by check, the date of the loan to be reported is the date the check is physically received by a person on behalf of the committee, even if this date is different from the date shown on the check.

4.33(4) Date paid. The schedule shall include the complete date (month/day/year) a full or partial loan repayment is made by the committee. The date of the repayment is the date the check is issued. Full or partial loan repayments shall be shown on this schedule, and should not be reported on Schedule B. However, loan interest payments shall be reported on Schedule B (see rule 351-4.29(56,68B)) and not on Schedule F. Loans which may be and are forgiven in full or in part are considered in-kind contributions and shall be itemized on Schedule E, with a cross-reference entry in the space provided on Schedule F.

4.33(5) Name and address of lender. The schedule shall include the name and address of each person who has made one or more loans of money to the committee during the reporting period, or to whom the committee makes a full or partial loan repayment during the reporting period. If the person who made the loan to the committee is not the original source of the money, where the original source of the money is a third party (such as a bank which loans money to an individual who loans it to the committee), or if a third party has personally paid and assumed a loan from the original lender (such as an individual who pays off the loan to the bank with the expectation of receiving the loan repayment from the committee), the report shall also identify the name and address of the third party.

4.33(6) Relationship to candidate. In the case of monetary loans to candidates' committees, the schedule shall include information indicating whether the lender is related to the candidate within the third degree of consanguinity or affinity, as defined in subrule 4.28(5).

This rule is intended to implement Iowa Code section 56.6.

ITEM 28. Amend 351-Chapter 4 by adopting the following new rule 351-4.34(56,68B):

351--4.34(56,68B) Schedule G - Breakdown of Monetary Expenditures by Consultants. A candidate's committee which enters into a contract with a consultant for future or continuing performance shall be required to report expenditures made to the consultant, and the nature of the performance of the consultant which is expected to be received by the candidate's committee. A candidate's committee is required to report in Part 1 of Schedule G any contracts with consultants which it has negotiated, the complete name and address of the consultant, the period of time in which the contract is in effect, and estimates of performance to be derived from the contract. Expenditures made to the consultant during a reporting period shall be reported with all other expenditures on Schedule B, and debts incurred with the consultant during the reporting period shall be reported with all other debts on Schedule D. Additionally, a detailed breakdown of the expenditures made by the consultant shall be reported by the candidate's committee in Part 2 of Schedule G, and shall include the date of the expenditure, the purpose of the expenditure and the amount of the expenditure. The description of the purpose of the expenditure shall be consistent with the provisions of subrule 4.29(3).

For purposes of this rule, "contract" means an oral or written agreement between two parties for the supply or delivery of specific services in the course of the campaign. "Performance" means the execution or fulfillment of the contractual agreement. "Nature of performance" means a clear description of the specific services received or benefit derived as the result of a contract with a consultant. "Estimate of performance" means a clear description of the expected services the candidate reasonably expects to be received or benefit to be derived during the period of the contract.

This rule is intended to implement Iowa Code sections 56.2 and 56.6.

ITEM 29. Amend 351-Chapter 4 by adopting the following new rule 351-4.35(56,68B):

351--4.35(56,68B) Schedule H - Campaign Property.

4.35(1) Ongoing inventory. Equipment, supplies, or other materials purchased with campaign funds or received in kind are campaign property. Campaign property, other than consumable campaign property, with a value of $500 or more when acquired by the committee shall be listed on the inventory section of the schedule. The property shall be listed on each report until it is disposed of by the committee or its residual value falls below $100. "Consumable campaign property" means stationery, yard signs, and other campaign materials which have been permanently imprinted to be specific to a candidate or election. For property purchased by the committee, the date purchased shall be the earlier of the date the committee attained physical possession of the property or the date the committee issued payment for the property. For in-kind contributions, the date received shall be the date on which the committee attained physical possession of the property. The committee shall provide the complete date (month/day/year). The schedules shall include the purchase price of property purchased by the committee and the actual or estimated fair market value of property received as an in-kind contribution, as well as the actual or estimated current fair market value of the property at the end of the current reporting period.

4.35(2) Sales or transfers of campaign property. The schedule shall include information regarding the sale or transfer of campaign property, other than consumable campaign property, which occurred during the current reporting period. The information shall include the complete date of the transaction (month/day/year), the name and address of the purchaser or donee, and a description of the property. If the property is sold, the information shall include the sales price received; if the property is donated, the information shall include the fair market value of the property at the time of the transfer.

This rule is intended to implement Iowa Code sections 56.6 and 56.43.

ITEM 30. Amend 351-Chapter 4 by adopting the following new rule 351-4.36(56,68B):

351--4.36(56,68B) Reconciled bank statement required with January report and final report.

4.36(1) All committees required by Iowa Code section 56.6 to file a disclosure report on or by January 19 of each year shall attach to that disclosure report a copy of the committee's bank statement which includes December 31 of the year reported. If the bank statement cycle is such that the committee has not received the statement including December 31 by the date for filing the January report, the committee shall separately file the bank statement within ten days after receipt of the statement by the committee. The committee shall include a reconciliation to justify outstanding checks and other discrepancies between the ending balance on the bank statement and the ending balance on the disclosure report. Supplemental information may be requested by board staff in order to confirm reconciliation for the December 31 balance. Failure to provide the reconciled bank statement may be grounds for a violation of Iowa Code section 56.6 as a failure to file a report which conforms to the requirements of that provision.

4.36(2) A committee which files a final disclosure report shall attach to that disclosure report a copy of the committee's bank statement which includes the final transaction(s) closing the committee's account.

This rule is intended to implement Iowa Code section 56.6.

ITEM 31. Amend 351-Chapter 4 by adopting the following new rule 351-4.37(56,68B):

351--4.37(56,68B) Verification of reports; incomplete reports.

4.37(1) The board staff will review and desk audit each disclosure report filed. The board may contact other parties to verify the accuracy and completeness of the reports filed. The board may contact a representative of the committee and may contact other parties to determine the authenticity of information provided about filed reports.

4.37(2) If, upon review, board staff determine that a committee's report is incomplete because required information has been omitted or has been incorrectly reported, the staff shall communicate the deficiencies to the committee. A failure to satisfactorily respond to or to remedy the error or omission may be grounds for a violation of Iowa Code section 56.6 as a failure to file a report which conforms to the requirements of that provision.

This rule is intended to implement Iowa Code sections 56.6 and 68B.32A.

ITEM 32. Renumber rule 351--4.9(56) as rule 351-- 4.38(56,68B).

ITEM 33. Renumber rule 351--4.8(56) as rule 351-- 4.39(56,68B).

ITEM 34. Renumber rule 351--4.11(56) as rule 351-- 4.40(56,68B).

ITEM 35. Rescind and reserve rule 351--4.10(56).

ITEM 36. Renumber rule 351--4.6(56) as rule 351-- 4.42(56,68B).

ITEM 37. Amend 351-Chapter 4 by adopting the following new rule 351-4.43(56,68B):

351--4.43(56,68B) Transfers between candidates. Transfers of assets from one candidate's committee to another is not construed to be a violation of Iowa Code section 56.42 so long as the recipient candidate's committee pays the transferring committee the fair market value of the asset. Both candidates' committees shall be prepared to support the valuation of the asset with documentation.

This rule is intended to implement Iowa Code sections 56.6 and 56.42.

ITEM 38. Amend 351-Chapter 4 by adopting the following new rule 351-4.44(56,68B):

351--4.44(56,68B) Transfers of funds and debts between multiple committees of the same person. A candidate's committee is allowed to transfer its debts to another committee formed by the same candidate. The recipient committee is required to disclose the names and addresses of the creditors to whom such obligations are owed, as well as the amounts of the debts or loans, the dates they were incurred, and the nature of the obligations, as required by Iowa Code section 56.6(3).

This rule is intended to implement Iowa Code sections 56.6, 56.40 and 56.42.

ITEM 39. Renumber rule 351--4.7(56) as rule 351-- 4.45(56,68B).

ITEM 40. Renumber rule 351--4.12(56) as rule 351-- 4.46(56,68B).

ITEM 41. Renumber rule 351--4.18(56) as rule 351-- 4.47(56,68B) and amend as follows:

351--4.18(56) 351--4.47(56,68B) Contribution Information required for trusts to avoid a contribution in the name of another person. A contribution or expenditure by a trustee solely in the name of the trust constitutes a contribution or expenditure in the name of another person, prohibited under Iowa Code section 56.13 56.3A. In order to avoid violation of Iowa Code section 56.13 56.3A, contributions or expenditures involving a trust shall be reported on disclosure reports filed pursuant to Iowa Code chapter 56 as follows: which include contributions accepted from or disbursements made to a trust must

4.47(1) If a transaction involves a trust identified as a revocable trust or a living trust for which no separate trust tax return is required and for which the federal tax ID number is the same as the social security number of the grantor creating the trust, who is also a trustee, then the transaction may be reported simply as being made by the "(name) revocable (or living) trust." The committee reporting the transaction is responsible for verifying whether the trust in question satisfies this criterion, but if the committee reports the transaction as provided in this subrule, it is presumed that the committee has verified the trust status.

4.47(2) For transactions involving trusts which do not qualify under subrule 4.47(1), the disclosure report shall identify the trust, the trustee, and the trustor in all places where "name" is required to be provided under Iowa Code section 56.6(3). If a candidate's committee or political committee accepts a contribution from a trust, it shall also obtain and file with the report on which the trust contribution is disclosed a signed statement from the trustee. The statement shall be in substantially the following form: "This contribution is from the (name) trust, (street, city, state, ZIP code), which is a trust with its own separate tax ID number. The name of the trustee is (name), and the name of the trustor is (name). The terms of this trust permit it to make political contributions to candidates and other political committees." which affirms that a political contribution is permitted to be made from the funds of the trust. However, where a contribution or expenditure is made from or to a trust in which all funds were originally provided by the trustor, and the trustor is a living individual who is also the trustee and beneficiary, the contribution or expenditure will be considered to be from that individual. A revocable trust of a single individual is presumed to satisfy these criteria.

This rule is intended to implement Iowa Code section 56.13 56.3A.

ITEM 42. Renumber rule 351--4.13(56) as rule 351-- 4.48(56,68B) and amend the catchwords as follows:

351--4.13(56) 351--4.48(56,68B) Out-of-state contributions Contributions from political committees not organized in Iowa.

ITEM 43. Renumber rule 351--4.19(56) as rule 351-- 4.49(56,68B) and amend as follows:

351--4.19(56) 351--4.49(56,68B) Reporting of earmarked contributions. A political committee is permitted to receive contributions from its members contributors which are earmarked to be donated to specific candidate's committees or other political committees. A political committee receiving and transmitting earmarked contributions is required to list on its disclosure report the name of the contributor and the name of the candidate or committee for which the contribution was earmarked. The political committee is further required to inform the treasurer of the recipient committee in writing the name of the individual contributor, as well as the name of the committee which has collected the contribution. The committee receiving the earmarked contribution is required to disclose on its report both the name of the individual contributor and the sponsoring committee.

This rule is intended to implement Iowa Code section 56.6.

ITEM 44. Renumber rule 351--4.15(56) as rule 351-- 4.50(56,68B).

ITEM 45. Amend 351-Chapter 4 by adopting the following new rule 351-4.51(56,68B):

351--4.51(56,68B) Funds from unknown source--escheat; later identification of source.

4.51(1) A committee which receives funds from an unknown source, either through a specific contribution of over $10 from an unidentified contributor, or through an amount held in the committee's accounts in excess of the amount the committee is able to account for and reconcile with the committee's disclosure reports, the committee shall remit such funds for deposit into the general fund of the state of Iowa by sending such funds to the board for transmittal to the director of revenue and finance. An anonymous cash contribution may be deposited into the committee's account and a committee check to the general fund issued in the same amount in order to avoid the mailing of cash.

4.51(2) If, after the escheat of funds, the transmitting committee becomes able to identify or account for the source of the funds, the committee may make application to the board for return of the funds, if the following requirements are met:

a. The committee is an open, active committee;

b. Documentation of the source is provided;

c. The amount requested to be returned is in excess of $100; and

d. The request is made by the committee within 90 days of the date of the deposit in the general fund of the state of Iowa.

This rule is intended to implement Iowa Code section 56.3A.

ITEM 46. Renumber rule 351--4.17(56) as rule 351-- 4.52(56,68B).

ITEM 47. Renumber rule 351--4.20(56) as rule 351--4.53(56,68B) and amend as follows:

351--4.20(56) 351--4.53(56,68B) Permanent organizations which become temporary political committees. When a permanent organization which is not a political committee engages in political activities by accepting contributions, making expenditures or incurring debts in the aggregate of more than $250 500 in a calendar year, the organization is required to file a statement of organization and one or more disclosure reports. Covered activities include direct and indirect contributions, in-kind contributions and independent expenditures. If the committee uses only existing funds and does not accept money from other sources, no separate banking account is required.

If the board staff discovers that a permanent organization has become subject to the provisions of Iowa Code chapter 56 by virtue of having made a contribution of over $500 for a political purpose but did not timely organize a committee or file one or more disclosure reports, the board staff will send notification of the organizational and reporting requirements of Iowa Code chapter 56, as well as notice of routine penalty assessments for apparent late reporting violations. However, a committee which receives a contribution from a permanent organization which causes the permanent organization to become subject to the provisions of Iowa Code chapter 56 may assist the permanent organization in meeting the requirements of the law, and may refund all or part of a contribution to the permanent organization so as to reduce the expenditure by the permanent organization to $500 or less, and remove the organization's obligations under Iowa Code chapter 56.

This rule is intended to implement Iowa Code section sections 56.2(15) and 56.6(6).

ITEM 48. Amend 351-Chapter 4 by adopting the following new rule 351-4.54(56,68B):

351--4.54(56,68B) Cash transactions. All disbursements, including all expenditures and any other withdrawals from committee funds, shall be by check. Cash withdrawals and "petty cash" accounts are not permitted. If a committee fund-raising activity necessitates a cash drawer for making change or other cash transactions, the committee may issue a check payable to the committee treasurer or the candidate, in the case of a candidate's committee, or payable to the committee treasurer or the committee chairperson, in the case of a political committee. The purpose of the expenditure shall be reported on Schedule B as "cash advance for (describe activity, e.g., concession stand cash drawer)." Upon completion of the fund-raising activity, the committee shall redeposit the same amount as that which was advanced into the committee account. The redeposit shall be reported as a reverse entry on Schedule B as a "redeposit of cash advance for (describe activity)." The proceeds of the fund-raising activity (excluding the cash advance) shall be reported on Schedule A - Contributions Received.

This rule is intended to implement Iowa Code sections 56.3 and 56.6.

ITEM 49. Amend 351-Chapter 4 by adopting the following new rule 351-4.55(56,68B):

351--4.55(56,68B) Record keeping.

4.55(1) Copies of reports. A committee shall preserve a copy of every report it files for at least three years following the filing of the report.

4.55(2) Supporting documentation. The documentation which supports a committee's disclosure report shall be preserved by the committee for at least five years after the due date of the report covering the activity documented in therecords; however, a committee is not required to preserve these records for more than three years from the certified date of dissolution of the committee. At a minimum, the supporting documentation shall consist of all of the following:

a. A ledger or similar record-keeping device which details all contributions received by the committee. This rec-ord shall include the name and address of each person making a contribution in excess of $10, with the date and amount of the contribution. In lieu of or in addition to a ledger, the committee may record contributions received through a receipt book or other method of individually documenting the contributions, such as by making and keeping copies of the contribution checks.

b. The check register for the committee's account(s).

c. Bank statements for the committee's account(s).

d. Copies of canceled or duplicate checks for committee expenditures, if available.

e. Copies of bills or receipts for committee expenditures.

f. For committees which pay reimbursement forcommittee-related mileage, copies of vehicle mileage logs, including travel dates, distance driven, and travel purpose (description of event or activity). For a candidate's committee which leases a vehicle, the mileage log shall detail all mileage driven on the vehicle, including non-committee-related mileage.

This rule is intended to implement Iowa Code sections 56.3, 56.6, 56.7, 56.41, and 68B.32A.

ITEM 50. Reserve rules 351--4.56 through 351--4.69.

ITEM 51. Amend 351-Chapter 4 by adopting the following new rule 351-4.70(56,68B):

351--4.70(56,68B) Political attribution or disclaimerstatements--contents. Political advertising or other published material which expressly advocates for a political purpose shall contain a statement identifying its sponsor. This statement is referred to as the "attribution statement," or the "disclaimer statement." "Express advocacy" is as defined in subrule 4.100(1).

4.70(1) Short form statement. If the advertisement or other material is paid for by the candidate who has filed an affidavit of candidacy or by a candidate's committee or political committee which has filed a statement of organization under Iowa Code chapter 56, the specific name and address are available to the public, and the statement will be acceptable if it contains the words, "Paid for by the Candidate," "Paid for by (candidate's name), Candidate," "Paid for by the Candidate's Committee" or "Paid for by (the name of the committee)," whichever is applicable.

4.70(2) Full form statement--individual. If the advertising or material is paid for by an individual acting independently, and the individual has exceeded $500 in expenditures (other than contributions) for the political purpose advocated by the advertising or material, the statement shall contain the words "Paid for by" followed by the full name and complete address (street or box number/city/state/ZIP code) of the person. The full name and address shall be included in this statement even if the name and address of the person appear elsewhere on the advertising or material.

4.70(3) Full form statement--candidate who spends less than $500. Advertising or material paid for by a candidate who has not organized a committee because the candidate has raised or spent less than $500 in support of the candidacy shall contain the same information as required for an individual under subrule 4.70(2). In addition, after the full name, the candidate may choose to include words identifying that this is the candidate, such as "first name, last name, Candidate."

4.70(4) Full form statement--corporation involved in a ballot issue election. If the advertising or other material is paid for by a corporation involved in a ballot issue, but the corporation has not organized a committee because it has not exceeded $500 in activity with regard to the ballot issue, the statement shall contain the full name and address of the corporation, as well as the name and office designation of one officer of the corporation.

4.70(5) Full form statement with additional language requirement for organizations other than corporations and registered committees. If the advertising or other material is paid for by an informal association or organization of persons which has not organized a committee because it has not exceeded $500 for a political purpose, but which is not a corporation, the statement shall contain the full name and address of the association or organization, the name and office designation of one officer of the association or organization, and the statement, "This association (or organization) is not incorporated and is not a registered committee." In the alternative, an association or group may use the statement method provided in subrule 4.70(6).

4.70(6) Short form statement for multiple sponsors with addresses on file. If the advertising or other material contains the names or replicated signatures of a number of individuals who have contributed to its cost, the addresses of the individuals need not be included in the material if the following or a substantially similar statement appears: "This (ad, brochure, material, as appropriate) has been paid for by the above-named individuals. Space limitations preclude printing their addresses. Addresses are on file with the county auditor (in the case of county or local elections) (and) with the Iowa ethics and campaign disclosure board, and are available upon request." The list shall be provided to the county auditor and the board as indicated.

4.70(7) Pooled efforts; authorized activity. If the advertising or other material is not wholly paid for by any one person or entity, but is an authorized activity by a committee, the attribution statement shall include an accurate description of the transaction. For example, if a political committee coordinated and provided the labor for providing a mass mailing, but a candidate's committee paid for the postage, the statement may indicate, "Paid for by (the candidate's committee), with labor provided by (the political committee)." Likewise, if a committee coordinates the activities of individual volunteers who participate in a committee-authorized distribution of advertising or other material, the statement may indicate, "Paid for by (the name and address of the individual volunteer), Authorized by (the name of the committee)." This attribution style would apply, for example, if the "Citizens for Smith" committee requests and coordinates the efforts of ten supporters to each write and send a personalized invitation to a committee fund-raising event.

4.70(8) Thank-you ads excluded. Postelection thank-you ads are not express advocacy and therefore not political advertising requiring inclusion of an attribution statement.

This rule is intended to implement Iowa Code section 56.14.

ITEM 52. Amend 351-Chapter 4 by adopting the following new rule 351-4.71(56,68B):

351--4.71(56,68B) Yard signs and outdoor advertising. "Yard signs," which are exempt from the attribution statement requirement, means a political sign with dimensions of 16 square feet or less which has been placed or posted on real property. "Outdoor advertising," which requires the attribution statement, means any political sign other than yard signs, including but not limited to: wood, metal, plastic or other hardboard signs affixed to the side of a building or painted directly on the side of the building, signs placed on the top of a car, truck or other vehicle, signs painted or affixed to the side of a vehicle, any advertisement printed, painted or otherwise displayed on a portable sign carrier, or magnetic signs temporarily placed on vehicles or structures.

This rule is intended to implement Iowa Code section 56.14.

ITEM 53. Amend 351-Chapter 4 by adopting the following new rule 351-4.72(56,68B):

351--4.72(56,68B) Newspaper or magazine. For the purposes of these rules and Iowa Code section 56.14, "newspaper or magazine" means a regularly scheduled publication of news, articles of opinion, and features available to the general public which does not require membership in or employment by a specific organization.

This rule is intended to implement Iowa Code section 56.14.

ITEM 54. Amend 351-Chapter 4 by adopting the following new rule 351-4.74(56,68B):

351--4.74(56,68B) Specific items exempted from or subject to attribution statement requirement.

4.74(1) Items exempted from requirement. The statute specifically excludes yard signs, matchbooks, bumper stickers, pins, buttons, pens, and "similar small items upon which the inclusion of the attribution statement would be impracticable." This is interpreted to include pencils, emery boards, T-shirts, caps, and other articles of clothing where printing an attribution statement would greatly increase the cost of the item.

4.74(2) Items subject to requirement. In addition to those items specified by the statute, the requirement for an attribution statement is interpreted to apply to scratch pads, political business cards, and postcards because inclusion of the statement is not impracticable when other text is being printed, and the cost is not significantly increased by printing it.

This rule is intended to implement Iowa Code section 56.14.

ITEM 55. Amend 351-Chapter 4 by adopting the following new rule 351-4.75(56,68B):

351--4.75(56,68B) Apparent violations; remedial actions.

4.75(1) If advertising or other published material is provided to the board which upon its face appears to omit an attribution statement as required by Iowa Code section 56.14 and these rules, the board may contact third parties, including newspapers and printers, in an effort to determine the identity of the responsible party.

4.75(2) If advertising or other published material was initially distributed without the required attribution statement, a potential remedial measure which may be directed by the board in an effort to achieve informal resolution shall be republication or distribution of a notice to the same or substantially the same portion of the public which was exposed to the initial advertisement or publication. The notice shall be in substantially the following form:

On (date), (I/we) (ran an advertisement/distributed a brochure/sent a mailing) (describe political activity advocated, e.g., asking for your contribution to my campaign, asking you to vote against the ballot issue). That (ad/brochure/mailing) failed to contain an attribution statement as required by Iowa Code section 56.14, necessary to provide notice as to who had paid for the material. It was in fact paid for by (name). ((I/we) regret any misunderstanding.)

Paid for by (detail of attribution in conformity with rule 4.70).

If the notice is run in a newspaper, the newspaper shall be of sufficiently wide circulation to reach virtually all members of the public originally exposed to the initial advertisement or publication. The notice shall also be in a section of the newspaper other than the classified section, be at least one column wide, and have a black border surrounding the ad.

This rule is intended to implement Iowa Code section 56.14.

ITEM 56. Reserve rules 351--4.76(56,68B) through 351--4.79(56,68B).

ITEM 57. Amend 351-Chapter 4 by adopting the following new rule 351-4.110(56,68B):

351--4.110(56,68B) Statement of dissolution (DR-3); final report; closing bank statement.

4.110(1) Statement of dissolution; signature. The statement of dissolution (DR-3) shall be filed within 30 days after the committee terminates its activity, disposes of its funds and assets, and has discharged all of its debts and obligations. The statement shall be either typewritten or printed legibly in black ink, and shall be signed by the treasurer or candidate in the case of a candidate's committee, or by the treasurer or chairperson in the case of a political committee.

4.110(2) Final report. The committee shall file a final report indicating the committee's closing transactions. A committee which submits a report designated as a final report which, when reviewed by the board staff in conjunction with prior committee reports and bank statements, accounts for all committee balances and evidences that all committee funds and assets have been properly distributed and all obligations have been discharged, shall be certified by the board staff as dissolved and its filing obligations shall be terminated. A committee which submits a report designated as a final report which, when reviewed by the board staff, does not account for all previously reported balances and obligations, shall not be certified as dissolved and its filing obligations shall continue until the inconsistencies are resolved either through amending or supplementing the attempted final report submitted by the committee.

4.110(3) Closing bank statement. A copy of the committee's closing bank statement(s) showing the committee's final transactions and zero balance(s) shall be attached to or supplied with the committee's final report. (See also rule 351-4.36(56,68B).)

ITEM 58. Renumber rule 351--4.21(56) as rule 351-- 4.111(56,68B).

ITEM 59. Amend 351-Chapter 4 by adopting the following new rule 351-4.112(56,68B):

351--4.112(56,68B) Disposition of property for dissolution of committee.

4.112(1) Manner of disposition--candidates' committees. The final report of a candidate's committee shall include an accounting of the disposition of all campaign property with a residual value of $100 or more. Disposition may be through a sale of the property at fair market value, with proceeds treated as any other campaign funds, or through donation of the property as set out as Iowa Code section 56.42(1). The committee shall be prepared to provide an explanation or documentation of a fair market value determination.

4.112(2) Computer software. Because some computer software cannot be sold or transferred to another entity due to license, copyright or trademark restrictions, the committee may provide a statement signed by the candidate or political committee chairperson that software cannot be transferred and is therefore deemed to have no market value. In the event the committee is able to legally transfer the software, the committee shall establish a fair market value for the transaction and properly report its disposition on the final report.

This rule is intended to implement Iowa Code sections 56.6 and 56.43.

ITEM 60. Amend 351-Chapter 4 by adopting the following new rule 351-4.113(56,68B):

351--4.113(56,68B) Assumption or settlement of debts and obligations.

4.113(1) Assumption generally allowed, except by corporations. Debts or obligations of a committee may be transferred, assumed, or forgiven by a person other than the committee, which is an in-kind contribution to the committee, except that the person shall not be a corporation unless the committee is a ballot issue committee. Where noncorporate transfers, assumptions, or forgiveness of debts or obligations do occur, the committee shall submit a written and signed agreement between the three parties, in the case of a transfer or assumption (the original debtor-committee, the person who is owed the debt, and the new, assuming debtor), or between the two parties, in the case of a debt forgiveness.

4.113(2) Settlement of contested debts. If there is a dispute or contest between the committee and a creditor which is a corporation, in order to discharge or settle a committee debt for less than the original amount of the indebtedness, the committee and the creditor shall submit a written statement to the board describing the debt and the controversy. The corporate creditor shall also describe the steps taken to settle or collect the debt in question, as well as describing the steps taken to settle or collect other debts owed to the creditor by other persons in the creditor's ordinary course of business. The board will review these matters on a case-by-case basis in order to determine whether to allow the committee to report the debt as discharged. If there is a dispute or contest between the committee and a creditor who is not a corporation, the debt may be discharged or settled for less than the original amount of the debt if the committee provides with its disclosure report a written and signed agreement between the two parties describing the debt and the controversy and the resolution or settlement to which the parties have agreed. However, if for a committee debt owed to any creditor, whether a corporation or not, a copy of a final court order which establishes as a finding of fact or conclusion of law that the committee has no further liability on the obligation to the creditor shall be dispositive of the issue for purposes of whether the debt can be reported as discharged.

4.113(3) Unavailable creditor. If the committee cannot locate a person to whom it owes a debt, the committee shall provide the board with a written statement describing the steps it has taken to locate the creditor and shall request direction from the board as to what additional steps, if any, should be taken. If the debt is owed a corporation, the additional steps may include payment to a charitable entity or the general fund of the state of Iowa as provided in rule 4.111(56,68B).

This rule is intended to implement Iowa Code sections 56.6 and 56.15.

ARC 8046A

Pursuant to the authority of Iowa Code sections 17A.3 and 68B.32A, the Iowa Ethics and Campaign Disclosure Board proposes to amend Chapter 4, "Reporting Requirements," Iowa Administrative Code.

Iowa Code section 56.12A prohibits the use of public funds for political purposes. The Board had frequently been called upon to advise persons as to whether certain activity might be in violation of this provision, and has taken disciplinary action against others whom the Board has found to have violated this section. Through this process, the Board has developed informal interpretations as to the meaning and application of the Iowa Code section. In a proposed new division, the Board intends to set out those interpretations so that persons seeking to learn the Board's interpretation can be referred to a specific rule. The language of the rules themselves is in part modeled after portions of Washington state law and portions of the federal Hatch Act.

Any interested person may make written comments on these proposed rules on or before June 23, 1998. Written comments should be addressed to Kay Williams, Executive Director, Iowa Ethics and Campaign Disclosure Board, 514 E. Locust Street, Suite 104, Des Moines, Iowa 50309.

These rules are intended to implement Iowa Code section 56.12A.

The following rules are proposed.

ITEM 1. Amend 351--Chapter 4 by adopting new Division VII, "Prohibited Use of Public Resources for Political Purposes."

ITEM 2. Adopt new rule 351-4.120(56,68B) as follows:

351--4.120(56,68B) Use of public resources for political purposes--prohibited.

4.120(1) General prohibition. The state and the governing body of a county, city, or other political subdivision of the state shall not expend or permit the expenditure or use of public resources, including public moneys or public facilities, directly or indirectly, for political purposes, including supporting or opposing a ballot issue.

4.120(2) Violation through acquiescence. Knowing acquiescence (either implied or express consent or acceptance) by a person with authority to direct, control, or influence the actions of a public employee using public resources in violation of this rule constitutes a violation of this rule.

4.120(3) Facilities, moneys included. Facilities of a political subdivision include, but are not limited to, use of stationery, postage, machines, and equipment, use of public employees during working hours, vehicles, office space, publications of an agency, and clientele lists of persons served by the agency. This rule applies to the use of all public moneys, whether derived through taxes, fees, penalties, or any other source.

This rule is intended to implement Iowa Code section 56.12A.

ITEM 3. Adopt new rule 351-4.121(56,68B) as follows:

351--4.121(56,68B) Activities of public employees and public officials regarding use of public resources for political purposes.

4.121(1) No activities for political purposes by public employees and public officials under certain conditions.

a. A public employee shall not take an active part in political management, in political campaigns, or other activities for political purposes under any of the following circumstances:

(1) While the public employee is on duty.

(2) In any room or building occupied in the discharge of official duties by an individual employed by or holding office in the state or a political subdivision of the state.

b. In addition, neither a public employee nor a public official shall take an active part in political management, political campaigns, or other activities for political purposes under any of the following circumstances:

(1) While wearing a uniform or official insignia or seal identifying the office or position of the public employee or public official, or by using the official insignia or seal identifying the office or position on political material. This paragraph does not prohibit the public employee or public official from otherwise identifying the office or position held.

(2) Using any vehicle owned or leased by the state or a political subdivision of the state. However, where a vehicle is used for a mixed political and public purpose, the vehicle use is permitted so long as the political purpose is incidental to the public purpose, and the state or political subdivision is promptly reimbursed for costs arising from the political purpose.

4.121(2) Certain activities not restricted. These rules shall not be construed to limit the freedom of speech of public employees or public officials with regard to activities that do not involve the use of public resources. These rules also shall not be construed to prohibit the state or a governing body of a political subdivision of the state from expressing an opinion on a ballot issue through the passage of a resolution or proclamation. In addition, these rules shall not apply to the following activities:

a. A statement by a public official in support of or in opposition to any ballot issue or with regard to a candidate for elective office at an open press conference. A public official or public employee may also make a response in support of or in opposition to any ballot issue or with regard to a candidate for elective office in response to a specific verbal inquiry at an open press conference. It is not a violation of this rule for a public official to respond to an inquiry regarding a ballot issue or candidacy, to make incidental remarks concerning a ballot issue or candidacy in an official communication, or otherwise comment on a ballot issue or candidacy without an actual, measurable expenditure of public funds.

b. Activities that are part of the normal, regular and official conduct of the office or agency.

c. De minimis (very minor) use of public facilities by public officials or public employees, such as may be incidental to the preparation or delivery of permissible communications, including written and verbal communications initiated by them of their views on issues that foreseeably may affect a matter that falls within their constitutional or statutory responsibilities.

d. Activities which take place in those portions of public facilities which are designated as the personal residence of a public official or public employee.

e. The use for a political purpose of those portions of public facilities which are available and accessible for similar activities by members of the general public.

f. The gathering, preparation, or distribution of information by a public official or public employee with regard to a pending ballot issue, where the information does not constitute express advocacy in favor of or in opposition to passage of the ballot issue.

4.121(3) Definitions. For the purpose of these rules, "public employee" and "public official" are as defined in Iowa Code section 68B.2. "Express advocacy" is as defined in subrule 4.100(1).

This rule is intended to implement Iowa Code section 56.12A.

ARC 8032A

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.

Transitional Medicaid is available for a period of up to 12 additional months to families who are canceled from the family medical assistance program (FMAP) because of increased earnings of the specified relative in the eligible group.

This amendment revises policy governing the Transitional Medicaid program to allow a child born after the FMAP is terminated or a child or parent who returns home after the FMAP benefits are terminated to be included in the eligible Medicaid group for the extended benefits. Under current policy it is necessary to establish a separate Medicaid case for those individuals not in the eligible group at the time the family is determined to be ineligible. This will simplify Medicaid policy and is made possible by a revised policy interpretation from the Health Care Financing Administration.

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 June 24, 1998.

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

The following amendment is proposed.

Amend subrule 75.1(31) as follows:

Amend the introductory paragraph as follows:

75.1(31) Persons and families terminated from the family medical assistance program (FMAP) due to the increased earnings of the specified relative in the eligible group. Medicaid shall be available for a period of up to 12 additional months to persons families who are canceled from FMAP as provided in subrule 75.1(14) because the specified relative of a dependent child receives increased income from employment. When the increased earnings of a specified relative who is not included in the eligible group but whose income is considered in the eligibility determination create ineligibility, these provisions shall not apply unless there is also another specified relative included in the eligible group who is employed.

For the purposes of this subrule, "family" shall mean individuals living in the household whose needs and income were included in determining the FMAP eligibility of the household members at the time that the FMAP benefits were terminated. "Family" also includes those individuals whose needs and income would be taken into account in determining the FMAP eligibility of household members if the household were applying in the current month.

Amend paragraph "b" as follows:

b. In order to receive transitional Medicaid coverage under these provisions, an FMAP recipient family must have received FMAP during at least three of the six months immediately preceding the month in which ineligibility occurred.

Rescind and reserve paragraph "e."

Amend paragraph "f" as follows:

f. Transitional Medicaid shall not be allowed under these provisions when it has been determined that the recipient received FMAP in any of the six months immediately preceding the month of cancellation as the result of fraud. Fraud shall be defined in accordance with 1997 Iowa Acts, Senate File 516, section 15 Iowa Code Supplement section 239B.14.

ARC 8033A

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 implements procedures for payment of the home health portion of the Medicare Part B premium to Home Health Specified Low-Income Medicare Beneficiary (HH-SLMB) clients.

The Health Care Financing Administration (HCFA) will not buy-in for the HH-SLMB clients. Therefore, the states must issue payment to the client for the home health portion of the Medicare Part B premium. The current monthly amount of the home health portion of the Medicare Part B premium is $1.07, or $12.84 annually. This amendment provides for an annual retroactive payment on April 1 of each year, beginning in 1999.

If the client does not have a checking account for depositing the check, the client will have a cost of $1 to $5 for cashing the check at a grocery store or bank. The Department's estimated cost for mailing the check to the client, including system changes is $17.55 per client. Issuing a check retroactively allows the department to determine that the client was not eligible for any other Medicaid benefits. Therefore, it is beneficial to the client and to the department to issue a check on an annual basis and retroactively.

Clients who apply in January, February, or March may request retroactive benefits. Therefore, waiting until April 1 allows the Department to pay all benefits for the calendar year.

Due to cost to the state in issuing the check and the cost to the client if the client must pay to cash a check, the alternative of issuing the home health portion of the Part B premium on a monthly or quarterly basis was rejected. The alternative to pay the home health portion of the Part B premium prospectively was rejected because if the client is determined to be eligible for other Medicaid benefits later, the state is not entitled to claim 100 percent federal financial participation. The federal law states that the client may not be eligible for any other benefits. By paying retroactively, the Department can determine that the client did not receive any other benefits for the calendar year.

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 June 24, 1998.

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

The following amendment is proposed.

Amend subrule 75.1(37) as follows:

75.1(37) Home health specified low-income Medicare beneficiaries.

a. 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. (1) 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. (2) 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. (3) 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. (4) The person is not otherwise eligible for Medicaid.

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

c. Payment of the home health portion of Medicare Part B premium shall be made retroactively on an annual basis in April of each year for the prior calendar year.

ARC 8038A

Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services proposes to amend Chapter 81, "Nursing Facilities," appearing in the Iowa Administrative Code.

This amendment implements revised federal regulations requiring nursing facilities to electronically transmit the information contained on the resident assessments to the state. The resident assessment consists of a minimum data set (MDS) of screening and assessment elements, including common definitions and coding categories. In addition, this amendment requires that a facility not release information that is resident-identifiable to the public and sets penalties for falsification of a resident assessment.

Nursing facilities are currently required to complete a resident assessment on each resident no later than 14 days after the date of admission, promptly after a significant change in the resident's physical or mental condition, and no less often than once every 12 months. In addition, facilities are required to examine each resident quarterly and revise the resident's assessment as needed to ensure continued accuracy of the assessment.

This amendment continues to require the nursing facility to complete assessments no later than 14 days after the date of admission and after readmissions if there is a significant change in the resident's physical or mental condition; within 14 days after the facility determines, or should have determined, that there has been a significant change in the resident's physical or mental condition; and no less often than once every 12 months. Quarterly reviews are also required. Facilities are required to maintain all assessments completed within the previous 15 months in the resident's active record and use the results to develop, review and revise the resident's comprehensive plan of care.

Within seven days after the nursing facility completes a resident's assessment, a facility must enter certain information into a computerized format and be capable of transmitting each resident's assessment information to the state in a format that conforms to standard record layouts and data dictionaries and that passes edits defined by HCFA. At least monthly, facilities shall input and electronically transmit accurate and complete MDS data for all assessments conducted during the previous month.

The Health Care Financing Administration (HCFA) published a proposed rule regarding MDS in the Federal Register on December 28, 1992. A final rule was published December 23, 1997, containing the requirement that all nursing facilities across the country begin electronic submission June 22, 1998. HCFA is planning national aggregation of nursing facility data to be used for quality control measures and as part of the survey and certification process. The Iowa Department of Inspections and Appeals will use the data on a state level to generate reports and monitor facility performance.

The Department contracted with the Iowa Foundation for Medical Care (IFMC) in state fiscal year 1997 to develop the computer system and in state fiscal year 1998 for facility training and communication, data transmission, and technical support for ongoing maintenance. The Department of Inspections and Appeals and the IFMC have completed training nursing facility personnel and expect that all facilities will be ready to start electronic transmission on June 22, 1998.

The substance of these amendments is also Adopted and Filed Emergency and is published herein as ARC 8039A. 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 June 24, 1998.

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

ARC 8034A

Pursuant to the authority of Iowa Code Supplement subsection 239B.4(3), the Department of Human Services proposes to amend Chapter 93, "PROMISE JOBS Program," appearing in the Iowa Administrative Code.

This amendment allows PROMISE JOBS to make payment to nonregistered child care providers while awaiting the results of the child abuse and criminal records check. Payment will only be made to providers who declare that they have no criminal conviction and no founded child abuse history, and who agree to allow the Department to check for child abuse and criminal records.

This amendment is promulgated in conjunction with an amendment to 441--Chapter 170 which has been adopted. (See ARC 8041A herein.) The changes to 441--Chapter 170 implement legislation passed in 1997 that requires all nonregistered child care providers and any individual living in the home of the provider to be checked for criminal and founded child abuse records to be eligible to receive public funds for providing child care. This amendment refers to the amendment to 441--Chapter 170 as that amendment applies to PROMISE JOBS providers as well.

PROMISE JOBS will discontinue payments upon notification of an existing child abuse or criminal record. Payments made to providers who are not eligible to receive public funds due to a criminal conviction or a founded child abuse record are subject to recoupment.

PROMISE JOBS will require the record checks for all new child care provider arrangements. For participants who are currently in a PROMISE JOBS component with child care arrangements that were approved prior to the effective date of this amendment, PROMISE JOBS will initiate therecord checks within a year.

The purpose of the PROMISE JOBS program is to provide FIP participants with employment and training opportunities to allow them to move toward self-sufficiency. Current rules require PROMISE JOBS to provide payment for child care services when child care is needed for participation in certain employment and training activities. This amendment allows PROMISE JOBS to continue to engage FIP participants in employment and training activities as soon as possible. Employment and training activities may otherwise be delayed while awaiting the results of a child care provider's criminal and child abuse records check.

Many PROMISE JOBS participants choose providers who are not licensed or registered. It is anticipated that a very small number of PROMISE JOBS child care providers will be found ineligible to continue to receive PROMISE JOBS payments.

There is a crucial need to engage FIP participants in work and training activities as soon as possible as persons can only receive FIP for five years in a lifetime. Additionally, in order for Iowa to receive the highest level of TANF funding, Iowa must achieve certain work participation rates. It is believed that delays caused by the completion of the records checks will impact both of these.

PROMISE JOBS and the participant currently discuss child care arrangements when negotiating the Family Investment Agreement. Therefore, PROMISE JOBS has the opportunity to educate participants about the eligibility criteria for child care providers and to assist participants in finding a suitable child care provider who is eligible to receive PROMISE JOBS funds and who is legally able to provide child care in this state.

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 June 24, 1998.

This amendment is intended to implement Iowa Code Supplement sections 239B.17 to 239B.22 and subsection 237A.5(6).

The following amendment is proposed.

Amend subrule 93.110(1) by adopting the following new paragraph "e":

e. Payment shall not be made to nonregistered providers who are not eligible to receive public funds as described in 441--paragraph 170.4(3)"h," unless the nonregistered provider attests that the provider is eligible to receive public funds on Form 470-3496, Nonregistered Child Care Provider Application, and authorizes the department to check for founded child abuse and criminal convictions as described in 441--paragraph 170.4(3)"h." Payment shall cease upon notification that a founded child abuse or criminal conviction exists and shall not resume again until the provider has been determined approvable under the provisions of 441--paragraph 170.4(3)"h." Payments made to providers who falsely attest to their eligibility as a child care provider on Form 470-3496 are subject to recovery as described in rule 441--93.151(249C).

For participants who are active in a PROMISE JOBS component with child care arrangements that were approved before August 1, 1998, PROMISE JOBS shall apply the provisions in the preceding paragraph and those described in 441--paragraph 170.4(3)"h" within the 12-month period ending July 31, 1999.

ARC 8035A

Pursuant to the authority of Iowa Code sections 234.6, 237A.12, and 252J.8, the Department of Human Services proposes to amend Chapter 107, "Certification of Adoption Investigators," and Chapter 110, "Family and Group Day Care Homes," appearing in the Iowa Administrative Code.

These amendments specify the procedures to be followed when a Certificate of Noncompliance is received from the Child Support Recovery Unit (CSRU) regarding a certified adoption investigator, group day care home provider, group day care home-joint registration provider, or a provider registered for a Level II, III, or IV day care home. Receipt of a Certificate of Noncompliance will require the Department to revoke or deny certification for a certified adoption investigator or registration for a group day care home provider, group day care home-joint registration provider, or a provider registered for a Level II, III, or IV day care home.

The license sanction process for the enforcement of child support orders was mandated by the Seventy-sixth General Assembly in Iowa Code Supplement chapter 252J. CSRU may refer an obligor to a licensing agency for the suspension, revocation, nonissuance, or nonrenewal of a variety of licenses including, but not limited to, motor vehicle registrations, driver's licenses, business and professional licenses. In order to be referred to a licensing agency for license sanction, an obligor's support payments must be delinquent in an amount equal to the support payment for 90 days.

When an obligor's support payments are delinquent in an amount equal to the support payment for 90 days, CSRU may issue a notice to the obligor informing the obligor that the obligor may make immediate payment of all current and past due support, schedule a conference to review CSRU's action, or enter into a payment agreement with the unit. If the obligor fails to respond to the notice within 20 days, or requests a conference and fails to appear, CSRU shall issue a Certificate of Noncompliance to the applicable licensing authority. The licensing authority is required to notify the obligor 30 days before the suspension, revocation, or denial of the obligor's license. The obligor may seek review of the decision before the District Court. Provisions governing issuance of the notice, the conference, and notice by the licensing authority are set forth in Iowa Code Supplement chapter 252J.

During the conference, CSRU will determine if the obligor's ability to pay varies from the current support order. A payment agreement shall be completed which shall require the obligor to pay the lower of the amount calculated or the maximum amount payable under an income withholding order. Failure of the obligor to comply with the terms of the payment agreement shall also result in the issuance of a Certificate of Noncompliance.

The Certificate of Noncompliance remains in effect until the obligor pays all support owed, both arrears and current; or enters into a payment agreement; or begins receiving Social Security, SSI, or FIP; or becomes ill or disabled; or begins participating in job training.

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 June 24, 1998.

These amendments are intended to implement Iowa Code chapters 237A, 252J and 600.

The following amendments are proposed.

ITEM 1. Amend rule 441--107.4(600) by adopting the following new subrule:

107.4(6) Certification actions for nonpayment of child support. The department shall revoke or deny the issuance or renewal of a certification of an adoption investigator upon the receipt of a certificate of noncompliance from the child support recovery unit of the department according to the procedures in Iowa Code chapter 252J. In addition to the procedures set forth in Iowa Code chapter 252J, the rules in this chapter shall apply.

a. The notice required by Iowa Code section 252J.8 shall be served upon the applicant or certified investigator by restricted certified mail, return receipt requested, or personal service in accordance with Iowa Rules of Civil Procedure 56.1. Alternatively, the applicant or certified investigator may accept service personally or through authorized counsel.

b. The effective date of the revocation or denial of the certification as specified in the notice required by Iowa Code section 252J.8 shall be 60 days following service of the notice upon the applicant or certified investigator.

c. The department director or designee of the director is authorized to prepare and serve the notice as required by Iowa Code section 252J.8 upon the applicant or certified investigator.

d. Applicants and certified investigators shall keep the department informed of all court actions, and all child support recovery unit actions taken under or in connection with Iowa Code chapter 252J, and shall provide the department copies, within seven days of filing or issuance, of all applications filed with the district court pursuant to Iowa Code section 252J.9, all court orders entered in these actions, and withdrawals of certificates of noncompliance by the child support recovery unit.

e. An applicant or certified investigator may file an application with the district court within 30 days of service of a department notice pursuant to Iowa Code sections 252J.8 and 252J.9.

(1) The filing of the application shall stay the department action until the department receives a court order lifting the stay, dismissing the action, or otherwise directing the department to proceed.

(2) For purposes of determining the effective date of the revocation, or denial of the issuance or renewal of a certification, the department shall count the number of days before the action was filed and the number of days after the action was disposed of by the court.

f. The department shall notify the applicant or certified investigator in writing through regular first-class mail, or such other means as the department deems appropriate in the circumstances, within ten days of the effective date of the revocation of certification or the denial of the issuance or renewal of a certificate of adoption investigator, and shall similarly notify the applicant or certified investigator when the certificate is issued, renewed, or reinstated following the department's receipt of a withdrawal of the certificate of noncompliance.

g. Notwithstanding Iowa Code section 17A.18, the registrant does not have the right to a hearing regarding this issue, but may request a court hearing pursuant to Iowa Code section 252J.9.

ITEM 2. Amend subrule 107.5(2), paragraph "b," as follows:

b. If an applicant is denied certification or recertification based on an inability to meet the requirements of subrule 107.4(1), 107.4(2), 107.4(3), 107.4(4), or 107.4(5), or 107.4(6), the applicant may reapply when the requirements for certification have been met.

Further amend subrule 107.5(2) by rescinding and reserving paragraph "c."

ITEM 3. Adopt the following new rules:

441--110.12(237A) Registration actions for nonpayment of child support. The department shall revoke or deny the issuance or renewal of a child care registration for a group child care home or group child care home-joint registration provider upon the receipt of a certificate of noncompliance from the child support recovery unit of the department according to the procedures in Iowa Code chapter 252J. In addition to the procedures set forth in Iowa Code chapter 252J, the rules in this chapter shall apply.

110.12(1) Service of notice. The notice required by Iowa Code section 252J.8 shall be served upon the applicant or registrant by restricted certified mail, return receipt requested, or personal service in accordance with Iowa Rules of Civil Procedure 56.1. Alternatively, the applicant or registrant may accept service personally or through authorized counsel.

110.12(2) Effective date. The effective date of the revocation or denial of the registration as specified in the notice required by Iowa Code section 252J.8 shall be 60 days following service of the notice upon the applicant or licensee.

110.12(3) Preparation of notice. The department director or designee of the director is authorized to prepare and serve the notice as required by Iowa Code section 252J.8 upon the applicant or registrant.

110.12(4) Responsibilities of registrants and applicants. Registrants and registrant applicants shall keep the department informed of all court actions, and all child support recovery unit actions taken under or in connection with Iowa Code chapter 252J, and shall provide the department copies, within seven days of filing or issuance, of all applications filed with the district court pursuant to Iowa Code section 252J.9, all court orders entered in the actions, and withdrawals of certificates of noncompliance by the child support recovery unit.

110.12(5) District court. A registrant or applicant may file an application with the district court within 30 days of service of a department notice pursuant to Iowa Code sections 252J.8 and 252J.9.

a. The filing of the application shall stay the department action until the department receives a court order lifting the stay, dismissing the action, or otherwise directing the department to proceed.

b. For purposes of determining the effective date of the revocation, or denial of the issuance or renewal of a registration, the department shall count the number of days before the action was filed and the number of days after the action was disposed of by the court.

110.12(6) Procedure for notification. The department shall notify the applicant or registrant in writing through regular first-class mail, or such other means as the department deems appropriate in the circumstances, within ten days of the effective date of the revocation of a registration or the denial of the issuance or renewal of a registration, and shall similarly notify the applicant or registrant when the registration is issued, renewed, or reinstated following the department's receipt of a withdrawal of the certificate of noncompliance.

110.12(7) Appeal rights. Notwithstanding Iowa Code section 17A.18, the registrant does not have the right to a hearing regarding this issue, but may request a court hearing pursuant to Iowa Code section 252J.9.

441--110.35(237) Registration actions for nonpayment of child support. The department shall revoke or deny the issuance or renewal of a child care registration for a Level II, III, or IV child care home upon the receipt of a certificate of noncompliance from the child support recovery unit of the department according to the procedures in Iowa Code chapter 252J. In addition to the procedures set forth in Iowa Code chapter 252J, the rules in this chapter shall apply.

110.35(1) Service of notice. The notice required by Iowa Code section 252J.8 shall be served upon the applicant or registrant by restricted certified mail, return receipt requested, or personal service in accordance with Iowa Rules of Civil Procedure 56.1. Alternatively, the applicant or registrant may accept service personally or through authorized counsel.

110.35(2) Effective date. The effective date of the revocation or denial of the registration as specified in the notice required by Iowa Code section 252J.8 shall be 60 days following service of the notice upon the applicant or licensee.

110.35(3) Preparation of notice. The department director or designee of the director is authorized to prepare and serve the notice upon the applicant or registrant as required by Iowa Code section 252J.8.

110.35(4) Responsibilities of registrants and applicants. Registrants and registrant applicants shall keep the department informed of all court actions, and all child support recovery unit actions taken under or in connection with Iowa Code chapter 252J, and shall provide the department copies, within seven days of filing or issuance, of all applications filed with the district court pursuant to Iowa Code section 252J.9, all court orders entered in the actions, and withdrawals of certificates of noncompliance by the child support recovery unit.

110.35(5) District court. A registrant or applicant may file an application with the district court within 30 days of service of a department notice pursuant to Iowa Code sections 252J.8 and 252J.9.

a. The filing of the application shall stay the department action until the department receives a court order lifting the stay, dismissing the action, or otherwise directing the department to proceed.

b. For purposes of determining the effective date of the revocation, or denial of the issuance or renewal of a registration, the department shall count the number of days before the action was filed and the number of days after the action was disposed of by the court.

110.35(6) Procedure for notification. The department shall notify the applicant or registrant in writing through regular first-class mail, or such other means as the department deems appropriate in the circumstances, within ten days of the effective date of the revocation of a registration or the denial of the issuance or renewal of a registration, and shall similarly notify the applicant or registrant when the registration is issued, renewed, or reinstated following the department's receipt of a withdrawal of the certificate of noncompliance.

110.35(7) Appeal rights. Notwithstanding Iowa Code section 17A.18, the registrant does not have the right to a hearing regarding this issue, but may request a court hearing pursuant to Iowa Code section 252J.9.

ARC 8043A

Pursuant to the authority of Iowa Code section 10A.104(5), the Department of Inspections and Appeals gives Notice of Intended Action to rescind Chapter 11, "Investigations and Hearings Relating to Professional Licensure Within the Department of Public Health," Iowa Administrative Code.

This chapter was determined to be unnecessary as the language contained in this chapter merely duplicates the provisions for contested case hearings which are included under Chapter 10 rules.

Interested persons may make written comments or suggestions on the proposed amendment on or before June 23, 1998. Written materials should be addressed to the Director, Department of Inspections and Appeals, Lucas State Office Building, Des Moines, Iowa 50319-0083; fax (515)242-6863.

This amendment is intended to implement Iowa Code sections 10A.202 and 10A.402.

The following amendment is proposed.

Rescind and reserve 481--Chapter 11.

ARC 8062A

Pursuant to the authority of Iowa Code sections 455G.4(3), 455G.6(15), 455G.9 and 455G.21, the Iowa Comprehensive Petroleum Underground Storage Tank Fund Board (Board) hereby amends Chapter 11, "Remedial or Insurance Claims," Iowa Administrative Code.

Chapter 11 describes the guidelines for remedial or insurance claims. Subrule 11.1(5) provides for the payment of benefits under Iowa Code section 455G.21. The purpose of this amendment is to extend the deadline to apply for innocent landowner benefits under this subrule from December 1, 1997, until available funds are allocated.

Any interested person may make written suggestions or comments on this proposed amendment on or before June 23, 1998. Such written comments should be directed to the Administrator, Iowa Comprehensive Petroleum Underground Storage Tank Fund Board, 1000 Illinois Street, Suite B, Des Moines, Iowa 50314.

Persons who want to orally convey their views should contact Patrick Rounds, Administrator, Iowa Comprehensive Petroleum Underground Storage Tank Fund Board, at (515)284-1616, during regular business hours.

There will be a public hearing on June 23, 1998, at 10 a.m. in the Conference Room of the Iowa Insurance Division, 330 E. Maple Street, Des Moines, Iowa. Persons may present their views at this public hearing either orally or in writing.

This amendment will not necessitate additional annual expenditures exceeding $100,000 by political subdivisions or agencies and entities which contract with political subdivisions. Therefore, no fiscal note accompanies this notice.

This amendment is intended to implement Iowa Code sections 455G.9 and 455G.21.

The following amendment is proposed.

Amend subrule 11.1(5) by adding the following new paragraph "e":

e. Other innocent landowner claims. Claims for releases submitted to the board after December 1, 1997, which would have been eligible for benefits pursuant to paragraphs "a" through "d" of this subrule if filed by December 1, 1997, will be eligible for reimbursement subject to a first-in, first-out priority and the funding limitations of the innocent landowner fund. The owner must demonstrate that the owner has met all other requirements of this subrule in order to receive benefits.

ARC 8054A

Pursuant to the authority of Iowa Code section 147.76, the Board of Physical and Occupational Therapy Examiners hereby gives Notice of Intended Action to amend Chapter 201, "Occupational Therapy Examiners," Iowa Administrative Code.

These proposed amendments clarify the process to request a hearing if a license has been denied, change the license renewal period and the continuing education compliance period, raise renewal fees and penalty fees, clarify the process for investigation of complaints or malpractice claims, clarify disciplinary procedures, and clarify peer review committees.

Any interested person may make written comments on the proposed amendments not later than June 23, 1998, addressed to Judy Manning, Professional Licensure, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075.

There will be a public hearing on June 23, 1998, from 9 a.m. to 11 a.m. in the Fourth Floor Conference Room, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075. Persons may present their views at the public hearing either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.

The Board has determined that the amendments will have no impact on small business within the meaning of Iowa Code section 17A.31.

The proposed amendments are intended to implement Iowa Code section 147.76 and chapters 148A and 272C.

The following amendments are proposed.

ITEM 1. Rescind rule 645--201.7(147) and adopt the following new rule in lieu thereof:

645--201.7(147) License renewal.

201.7(1) Beginning July 1, 1999, a license to practice as an occupational therapist or as an occupational therapy assistant shall expire every two years on the fifteenth day of the birth month. Continuing education requirements shall be completed within the same renewal period for each license holder.

An application and a continuing education report form for renewal of license to practice as an occupational therapist or as an occupational therapy assistant shall be mailed to the licensee at least 60 days prior to the expiration of the license. Failure to receive the renewal application shall not relieve the license holder of the obligation to pay biennial renewal fees on or before the renewal date.

201.7(2) Beginning July 1, 1999, the continuing education requirements will coincide with the renewal compliance period. The licensee shall submit to the board office 30 days before licensure expiration the application and continuing education report form with the renewal fee as specified in rule 201.12(147). Individuals who were issued their initial license within six months of their birth month will not be required to renew their license until the fifteenth day of their birth month two years later. The new licensee is exempt from meeting the continuing education requirement for the continuing education biennium in which the license is originally issued. Occupational therapists will be required to report 30 hours and occupational therapy assistants 15 hours of continuing education for the first renewal and every renewal thereafter.

201.7(3) Late renewal. If the renewal fees are received by the board within 30 days after the renewal expiration date, a penalty fee is charged. If renewal fees are received more than 30 days after the renewal expiration date, the license is lapsed. An application for reinstatement must be filed with the board with the reinstatement fee, the renewal fee and the penalty fee as outlined in rule 201.12(147). Individuals who fail to submit the renewal application and complete documentation of continuing education hours shall be required to pay a penalty fee and shall be subject to an audit of their continuing education report.

201.7(4) Occupational therapists and occupational therapy assistants who have not fulfilled the requirements for license renewal or an exemption in the required time frame will have a lapsed license and shall not engage in the practice of occupational therapy.

ITEM 2. Amend rule 645--201.8(147) as follows:

645--201.8(147) Reinstatement of lapsed license. Individuals allowing a license to lapse will be required to reapply for permanent license and may be required to take the certification examination. Occupational therapists and occupational therapy assistants who do not request to be reinstated by means of submitting the current application fee, reinstatement fee, and an application for reinstatement by August 1 of the new licensure biennium within 30 days after the renewal expiration date may be required to take an examination as determined by the board. Consideration will be given to the length of lapsed license, practicing with lapsed license, and previous violations of board rules. Should an individual continue to practice with a lapsed license, disciplinary action will be taken which may include suspension, revocation or probation.

ITEM 3. Amend subrule 201.12(1) as follows:

201.12(1) The application fee for an occupational therapist license is $55 $100. The application fee for an occupational therapy assistant license is $45 $90.

ITEM 4. Amend subrule 201.12(3) as follows:

201.12(3) The renewal fee for a license to practice as an occupational therapist license for a biennial period is $55. The renewal fee for a license to practice as an occupational therapy assistant license for a biennial period is $45. Biennial renewal fee for a license to practice as an occupational therapist or an occupational therapy assistant for the 1999 renewal cycle only is as follows:

Birth Month	Occupational Therapist Prorated Fee	Occupational Therapy Assistant Prorated Fee
July 1999	$55	$45
August 1999	$57	$47
September 1999	$60	$49
October 1999	$62	$51
November 1999	$64	$53
December 1999	$66	$54
January 2000	$69	$56
February 2000	$71	$58
March 2000	$73	$60
April 2000	$76	$62
May 2000	$78	$64
June 2000	$80	$66

ITEM 5. Amend subrule 201.12(4) as follows:

201.12(4) Penalty fee for failure to complete and return the renewal application and statement of supervision before the renewal expiration date is $45 for occupational therapy assistants by January 31 (odd-numbered year) is $45 and $55 for occupational therapists.

ITEM 6. Amend subrule 201.12(5) as follows:

201.12(5) Penalty fee for failure to complete the required continuing education by December 31 of even-numbered years during the renewal period is $25 $50. Failure to complete and return the continuing education report (Form G) by January 31 (odd-numbered year) by the end of the renewal period is $25 $50.

ITEM 7. Rescind subrule 201.12(10) and adopt the following new subrule in lieu thereof:

201.12(10) Fee for a returned check is $15.

ITEM 8. Amend subrule 201.14(1) as follows:

201.14(1) The biennial license renewal period shall extend from July 1 of each odd-numbered year to June 30 of the next odd-numbered year. The biennial period for completing continuing education requirements shall be from January 1 of the odd-numbered year to December 31 of the following even-numbered year. The continuing education compliance period shall be each biennium beginning the fifteenth day of the birth month and ending two years later on the fifteenth day of the birth month. The occupational therapist shall complete 30 hours of continuing education each educational biennium compliance period. The occupational therapy assistant shall complete 15 hours of continuing education each educational biennium compliance period. For the 1999 renewal cycle only, 38 hours of continuing education will be due for the occupational therapist and 19 hours of continuing education will be due for the occupational therapy assistant by July 1, 1999.

Continuing education hours will return to 30 hours for the occupational therapist and 15 hours for the occupational therapy assistant each biennium at the end of this prorated compliance period.

ITEM 9. Rescind and reserve subrule 201.14(3).

ITEM 10. Rescind and reserve subrule 201.14(4).

ITEM 11. Amend subrule 201.16(1) as follows:

201.16(1) A report of continuing education activities shall be submitted on a board-approved form with the renewal application by January 31 of the odd-numbered year the end of the biennial license renewal period. All continuing education activities submitted must be completed by December 31 of the even-numbered year in the continuing education compliance period for which the license was issued as specified in 201.14(2)(1) or a late penalty fee will be assessed. as outlined in (See201.12(5).)

ITEM 12. Amend subrule 201.16(2) as follows:

201.16(2) Failure to receive a renewal application shall not relieve the licensee of the responsibility of meeting the continuing education requirements and submitting the renewal fee by January 31 of the odd-numbered year the end of the compliance period.

ITEM 13. Amend subrule 201.16(3), paragraph "b," as follows:

b. Licensees whose renewal license applications are submitted late (after January 31 of the odd-numbered year the end of the compliance period) may shall be required to submit to an audit of continuing education reports.

ITEM 14. Amend subrule 201.16(3), paragraph "d," as follows:

d. Occupational therapists and occupational therapy assistants are responsible for keeping on file required documents that can support the continuing education attendance and participation reports submitted to the board for relicensure license renewal. These documents shall include a program brochure including the statement of purpose, course objectives, qualification of speakers, program outline with a time frame designation and a certification of attendance. Programs or other educational activities that do not meet board standards will be disallowed. Failure to submit documentation supporting the continuing education report will disqualify the licensee's eligibility for relicensure license renewal.

ITEM 15. Rescind rule 645--201.19(272C) and adopt the following new rule in lieu thereof:

645--201.19(272C) Investigation of complaints or malpractice claims.

201.19(1) Investigation. The chair of the board of physical and occupational therapy examiners may assign an investigation of a complaint or malpractice claim to a member of the board who will be known as the investigating board member or may request the state department of inspections and appeals to investigate the complaint or malpractice claim. The investigating board member or employee of the department of inspections and appeals may request information from any peer review committee which may be established to assist the board. The investigating board member or employee of the department of inspections and appeals may consult with an officer or assistant attorney general concerning the investigation or evidence produced from the investigation. The investigating board member, if the board member investigates the complaint, or an assistant attorney general if the department investigates the complaint, shall make a written determination whether there is probable cause for a disciplinary hearing. The investigating board member shall not take part in the decision of the board, but may appear as a witness.

201.19(2) Informal discussion. In the course of conducting or directing an investigation, the board may request the licensee to attend a voluntary informal discussion before the board or board committee. The licensee is not required to attend or participate in the informal discussion. An informal discussion constitutes a part of the board's investigation of a pending disciplinary case, and the facts discussed at the informal discussion may be considered by the board in the event the matter proceeds to a contested case hearing. A board member who participates in an informal discussion is not disqualified from participating in the contested case hearing.

ITEM 16. Rescind rule 645--201.20(272C) and adopt the following new rule in lieu thereof:

645--201.20(272C) Informal settlement and license denial.

201.20(1) Informal settlement--parties.

a. A contested case may be resolved by informal settlement. Negotiation of an informal settlement may be initiated by the state of Iowa represented by the prosecuting attorney, the respondent, or the board. The board shall designate a board member with authority to negotiate on behalf of the board.

b. The full board shall not be involved in negotiation until presentation of a final, written, signed informal settlement to the full board for approval.

201.20(2) Informal settlement--waiver of notice and opportunity to be heard. Consent to negotiation by the respondent constitutes a waiver of notice and opportunity to be heard pursuant to Iowa Code section 17A.17 during informal settlement negotiation. Thereafter, the prosecuting attorney is authorized to discuss informal settlement with the board's designee.

201.20(3) Informal settlement--board approval. All informal settlements are subject to approval of a majority of the full board. No informal settlement shall be presented to the board for approval except in final, written form executed by the respondent. If the board fails to approve the informal settlement, it shall be of no force or effect to either party.

201.20(4) Informal settlement--disqualification of des-ignee. A board member who is designated to act in negotiation of an informal settlement is not disqualified from participating in the adjudication of the contested case.

201.20(5) License denial.

a. An applicant who has been denied licensure by the board may appeal the denial and request a hearing on the issues related to the licensure denial by serving a notice of appeal and request for hearing upon the board not more than 30 days following the date of mailing of the notification of licensure denial to the applicant. The request for hearing as outlined herein shall specifically delineate the facts to be contested and determined at hearing.

b. If an applicant who has been denied licensure by the board appeals the licensure denial and requests a hearing pursuant to this subrule, the hearing and subsequent procedures shall be held pursuant to the process outlined at rule 645--200.21(272C).

ITEM 17. Rescind rule 645--201.21(272C) and adopt the following new rule in lieu thereof:

645--201.21(272C) Disciplinary procedure.

201.21(1) Notice of hearing. If there is a finding of probable cause for a disciplinary hearing, the department of public health shall prepare the notice of hearing and transmit the notice of hearing to the respondent by certified mail, return receipt requested, at least 10 days before the date of the hearing. If licensees have absented or removed themselves from the state, the notice of hearing and statement of charges shall be so served at least 30 days before the date of the hearing, wherever the licensee may be found. If the whereabouts of the licensee are unknown, service may be had by publication as provided in the rules of civil procedure upon filing the affidavit required by the rules.

201.21(2) Statement of charges. The statement of charges shall set forth in ordinary and concise language the acts or omissions with which the respondent is charged. The statement of charges shall specify the statute(s) and rule(s) which are alleged to have been violated.

201.21(3) Legal representation. Every statement of charges and notice of hearing shall be reviewed by the office of the attorney general, which shall be responsible for the legal representation of the public interest in all contested case proceedings before the board.

201.21(4) Continuances. A party has no automatic right to a continuance or delay of the disciplinary hearing. A party may request a continuance of the board no later than seven days prior to the date set for hearing. Within seven days of the date set for hearing, no continuances shall be granted except for extraordinary, extenuating, or emergency circumstances. The board administrator shall have the authority to grant a continuance after consultation, if needed, with the chairperson of the board. A board member shall not be contacted in person, by mail, by telephone, or by any other means by a party seeking a continuance.

201.21(5) Prehearing conference. The presiding officer or hearing officer either on the officer's own motion or at the request of either party may hold a prehearing conference which shall be scheduled not less than two days prior to the hearing. Notice by ordinary mail shall be given to each party of the date, time, and place of the prehearing conference.

201.21(6) Failure by respondent to appear. If a respondent, upon whom proper notice of hearing has been served, fails to appear at the hearing, the board may proceed with the conduct of the hearing, and the respondent shall be bound by the results of such hearing to the same extent as if the respondent were present.

201.21(7) Hearing procedure. The board adopts the rules of the department of public health found in 641--Chapter 173, Iowa Administrative Code, as the procedure for hearing before the board. The board may authorize an administrative law judge to conduct the hearings, administer oaths, issue subpoenas, and prepare written findings of fact, conclusions of law and decision at the direction of the board. If a majority of the board does not hear the disciplinary proceeding, a recording or a transcript of the proceeding shall be made available to members of the board who did not hear the proceeding.

201.21(8) Application for rehearing. The filing of an application for rehearing is not necessary to exhaust administrative remedies. Within 20 days after the issuance of a final decision, any party may file an application for rehearing. The application shall state the specific grounds for rehearing and the relief sought and copies thereof shall be timely mailed to all other parties. The application shall be deemed denied if not granted within 20 days after service on the board. Upon rehearing, the board shall consider facts not presented in the original hearing only if:

a. Such facts arose subsequent to the original proceedings; or

b. The party offering such evidence could not reasonably have provided such evidence at the original proceedings; or

c. The party offering the additional evidence was misled by any party as to the necessity for offering such evidence at the original proceeding.

201.21(9) Appeal. Any appeal to the district court from disciplinary action of the board or denial of license shall be taken within 30 days from the issuance of the decision by the board. It is not necessary to request a rehearing before the board to appeal to the district court.

201.21(10) Transcript. The party who appeals a decision of the board to the district court shall pay the cost of the preparation of a transcript of the administrative hearing for the district court.

201.21(11) Publication of decisions. Final decisions of the board relating to disciplinary proceedings shall be transmitted to the appropriate association, the news media and employer.

201.21(12) Hearings open to the public. A hearing of a licensing board concerning a licensee shall be open to the public unless the licensee or the licensee's attorney requests in writing that the hearing be closed to the public.

201.21(13) Reinstatement. Any person whose license to practice has been revoked or suspended may apply to the board for reinstatement in accordance with the terms and conditions of the order of revocation or suspension, unless the order of revocation provides that the license is permanently revoked.

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

b. All proceedings for reinstatement shall be initiated by the respondent, who shall file with the board an application for reinstatement of the license. Such application shall be docketed in the original case in which the license was revoked, suspended, or relinquished. All proceedings upon the application for reinstatement shall be subject to the same rules of procedure as other cases before the board.

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

d. An order denying or granting reinstatement shall be based upon a decision which incorporates findings of facts and conclusions of law. The order shall be published as provided for in this rule.

201.21(14) Voluntary surrender. The board may accept the voluntary surrender of a license if accompanied by a written statement of intention. A voluntary surrender, when accepted in connection with a disciplinary proceeding, has the same force and effect as an order of revocation.

ITEM 18. Rescind rule 645--201.22(272C) and adopt the following new rule in lieu thereof:

645--201.22(272C) Method of discipline. The board has the authority to impose the following disciplinary sanctions:

1. Revocation of license.

2. Suspension of license until further order of the board or for a specific period.

3. Prohibiting permanently, until further order of the board, or for a specific period, the engaging in specified procedures, methods, or acts.

4. Probation.

5. Requiring additional education or training.

6. Requiring a reexamination.

7. Ordering a physical or mental evaluation, or ordering alcohol and drug screening within a time specified by the board.

8. Imposing civil penalties not to exceed $1000.

9. Issuing a citation and warning.

10. Imposing other sanctions allowed by law as may be appropriate.

ITEM 19. Rescind rule 645--201.23(272C) and adopt the following new rule in lieu thereof:

645--201.23(272C) Discretion of board. The following factors may be considered by the board in determining the nature and severity of the disciplinary sanction to be imposed:

201.23(1) The relative serious nature of the violation as it relates to assuring the citizens of this state a high standard of professional care.

201.23(2) The facts of the particular violation.

201.23(3) Any extenuating facts or other countervailing considerations.

201.23(4) The number of prior violations or complaints.

201.23(5) The seriousness of prior violations or complaints.

201.23(6) Whether remedial action has been taken.

201.23(7) Such other factors as may reflect upon the competency, ethical standards, and professional conduct of the licensee.

ITEM 20. Rescind rule 645--201.24(21,272C) and adopt the following new rule in lieu thereof:

645--201.24(272C) Grounds for discipline. The board may impose any of the disciplinary sanctions set forth in rule 201.22(272C), including civil penalties in an amount not to exceed $1000, when the board determines that a licensee is guilty of any of the following acts or offenses.

201.24(1) All grounds listed in Iowa Code section 147.55.

201.24(2) Violation of the rules promulgated by the board.

201.24(3) Personal disqualifications:

a. Mental or physical inability reasonably related to and adversely affecting the licensee's ability to practice in a safe and competent manner.

b. Involuntary commitment for treatment of mental illness, drug addiction or alcoholism.

201.24(4) Practicing the profession while the license is suspended or lapsed.

201.24(5) Revocation, suspension, or other disciplinary action taken by a licensing authority of another state, territory, or country; or failure by the licensee to report in writing to the Iowa board of physical and occupational therapy examiners revocation, suspension, or other disciplinary action taken by a licensing authority of another state, territory, or country; or both.

201.24(6) Negligence by the licensee in the practice of the profession, which is a failure to exercise due care including negligent delegation to or supervision of employees or other individuals whether or not injury results; or any conduct, practice or conditions which impair the ability to safely and skillfully practice the profession.

201.24(7) Failure to comply with the following rules of ethical conduct and practice.

a. An occupational therapist or occupational therapy assistant shall not practice outside the scope of the license.

b. When the occupational therapist or occupational therapy assistant does not possess the skill to evaluate a patient, plan the treatment program, or carry out the treatment, the occupational therapist or occupational therapy assistant is obligated to assist in identifying a professionally qualified licensed practitioner to perform the service.

c. The practice of occupational therapy shall minimally consist of:

(1) Interpreting all referrals.

(2) Evaluating each patient.

(3) Identifying and documenting individual patient's problems and goals.

(4) Establishing and documenting a plan of care.

(5) Providing appropriate treatment.

(6) Determining the appropriate portions of the treatment program to be delegated to assistive personnel.

(7) Appropriately supervising individuals as described in rule 201.13(272C).

(8) Providing timely patient reevaluation.

(9) Maintaining timely and adequate patient records of all occupational therapy activity and patient response.

d. It is the responsibility of the occupational therapist to inform the referring practitioner when any requested treatment procedure is inadvisable or contraindicated. The occupational therapist shall refuse to carry out orders that are inadvisable or contraindicated and advise the referring practitioner as such.

e. Treatment shall not be continued beyond the point of possible benefit to the patient or by treating more frequently than necessary to obtain maximum therapeutic effect.

f. It is unethical for the occupational therapist or occupational therapy assistant to directly or indirectly request, receive, or participate in the dividing, transferring, assigning, rebating, or refunding of an unearned fee or to profit by means of credit or other valuable consideration as an unearned commission, discount, or gratuity in connection with the furnishing of occupational therapy services.

g. The occupational therapist or occupational therapy assistant shall not exercise undue influence on patients to purchase equipment produced or supplied by a company in which the occupational therapist or occupational therapy assistant owns stock or has any other direct or indirect financial interest.

h. Occupational therapists and occupational therapy assistants shall not permit another person to use their licenses for any purpose.

i. An occupational therapist and occupational therapy assistant shall not obtain, possess, or attempt to obtain or possess a controlled substance without lawful authority or sell, prescribe, give away, or administer a controlled substance in the practice of occupational therapy.

j. An occupational therapist and occupational therapy assistant shall not verbally or physically abuse a patient.

k. An occupational therapist and occupational therapy assistant shall not engage in sexual misconduct. Sexual misconduct includes the following:

(1) Engaging in or soliciting a sexual relationship, whether consensual or nonconsensual, with a patient.

(2) Making sexual advances, requesting sexual favors, or engaging in other verbal conduct or physical contact of a sexual nature with a patient.

201.24(8) Failure to adequately supervise personnel in accordance with the standards for supervision set forth in rule 201.13(272C).

201.24(9) Unethical business practices, consisting of any of the following:

a. False or misleading advertising.

b. Betrayal of a professional confidence.

c. Falsifying patient's records.

201.24(10) Failure to notify the board of a change of name or address within 30 days after it occurs.

201.24(11) Submission of a false report of continuing education, or failure to submit the required report of continuing education.

201.24(12) Failure to notify the board within 30 days after occurrence of any judgment or settlement of a malpractice claim or disciplinary action taken by another state.

201.24(13) Failure to comply with a subpoena issued by the board.

201.24(14) Failure to report to the board as provided in Iowa Code section 272C.9 any violation by another licensee of the reasons for disciplinary action as listed in this rule.

201.24(15) Failure to report to the board as provided in Iowa Code section 272C.9 any violation by an occupational therapist or occupational therapy assistant of the reasons for disciplinary action as listed in this rule.

201.24(16) Obtaining a license by fraud or misrepresentation.

201.24(17) Conviction of a felony related to the practice of occupational therapy or the conviction of any felony that would affect the licensee's ability to practice occupational therapy. A copy of the record of conviction shall be conclusive evidence. Conviction shall include a finding or verdict of guilty, a plea of guilty, an admission of guilt, or a plea of nolo contendere.

201.24(18) Professional incompetency. Professional incompetency includes but is not limited to:

a. A substantial lack of knowledge or ability to discharge professional obligations within the occupational therapist's or occupational therapy assistant's practice;

b. A substantial deviation by the occupational therapist or occupational therapy assistant from the standards of learning or skill ordinarily possessed and applied by other occupational therapists and occupational therapy assistants in the state of Iowa acting in the same or similar circumstances;

c. A failure by an occupational therapist or occupational therapy assistant to exercise in a substantial respect that degree of care which is ordinarily exercised by the average occupational therapist or occupational therapy assistant in the state of Iowa acting in the same or similar circumstances;

d. A willful or repeated departure from or the failure to conform to the minimal standard of acceptable and prevailing practice of occupational therapy in the state of Iowa.

201.24(19) Inability to practice occupational therapy with reasonable skill and safety by reason of a mental or physical impairment or chemical abuse.

201.24(20) Violating a lawful order of the board, previously entered by the board in a disciplinary or licensure hearing, or violating the terms and provisions of a consent agreement or informal settlement between a licensee and the board.

201.24(21) Failure to respond, when requested, to communications of the board within 30 days of the mailing of such communication by registered or certified mail.

201.24(22) Obtaining third-party payment through fraudulent means. Third-party payers include, but are not limited to, insurance companies and government reimbursement programs. Obtaining payment through fraudulent means includes, but is not limited to:

a. Reporting incorrect treatment dates for the purpose of obtaining payment;

b. Reporting charges for services not rendered;

c. Incorrectly reporting services rendered for the purpose of obtaining payment which is greater than that to which the licensee is entitled; or

d. Aiding a patient in fraudulently obtaining payment from a third-party payer.

201.24(23) Practicing without a current license or practicing when a license is lapsed.

ITEM 21. Adopt new rule 645--201.25(272C) as follows:

645--201.25(272C) Peer review committees.

201.25(1) A complaint may be assigned to a peer review committee for review, investigation, and report to the board.

201.25(2) The board shall determine which peer review committee will review a case and what complaints or other matters shall be referred to a peer review committee for investigation, review, and report to the board.

201.25(3) Members of the peer review committees shall not be liable for acts, omissions, or decisions made in connection with service on the peer review committee. However, such immunity from civil liability shall not apply if such act is done with malice.

201.25(4) The peer review committees shall observe the requirements of confidentiality imposed by Iowa Code section 272C.6.

ITEM 22. Adopt new rule 645--201.26(21,272C) as follows:

645--201.26(21,272C) Conduct of persons attending meetings.

201.26(1) The person presiding at a meeting for the board may exclude a person from an open meeting for behavior that obstructs the meeting.

201.26(2) Cameras and recording devices may be used at open meetings provided they do not obstruct the meeting. If the user of a camera or recording device obstructs the meeting by the use of such device, the person presiding may request the person to discontinue use of the camera or device. If the person persists in use of the device or camera, that person shall be ordered excluded from the meeting by order of the board member presiding at the meeting.

ARC 8052A

Pursuant to the authority of Iowa Code section 147.76, the Board of Respiratory Care Examiners hereby gives Notice of Intended Action to amend Chapter 260, "Respiratory Care Practitioners," Iowa Administrative Code.

The proposed amendments clarify student and graduate supervision and state that the content area of continuing education must relate to clinical practice.

Any interested person may make written comments on the proposed amendments no later than June 24, 1998, addressed to Marge Bledsoe, Professional Licensure, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075.

There will be a public hearing on June 24, 1998, from 10 a.m. to 12 noon, in the Fourth Floor Conference Room, Side 1, Lucas State Office Building, Des Moines, Iowa, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.

The Board has determined that the amendments will have no impact on small business within the meaning of Iowa Code section 17A.31.

These proposed amendments are intended to implement Iowa Code chapters 147, 152B and 272C.

The following amendments are proposed.

ITEM 1. Amend subrules 260.12(1) and 260.12(2) as follows:

260.12(1) A student enrolled in a respiratory therapy training program who is employed in an organized training program in an organized health care system may render services defined in Iowa Code sections 152B.2 and 152B.3 under the direct and immediate supervision of a respiratory care practitioner for a limited period as follows:

1. For the duration of the respiratory therapist program, not to exceed four years.

2. For the duration of the respiratory technician program, not to exceed two years.

During this time the student may work only under "on site" supervision of a licensed respiratory care practitioner who shall bear full responsibility for care provided under the licensed respiratory care practitioner's supervision.

260.12(2) A graduate of an approved respiratory care training program employed in an organized health care system may render services as defined in Iowa Code sections 152B.2 and 152B.3 under the direction and immediate supervision of a respiratory care practitioner for one year.The graduate shall be identified as a "respiratory carepractitioner-license applicant."

During this time the graduate may work only under "on site" supervision of a licensed respiratory care practitioner who shall bear full responsibility for care provided under the licensed respiratory care practitioner's supervision.

ITEM 2. Amend subrule 260.13(6) as follows:

260.13(6) Licensees will be allowed no more than ten hours of approved independent study for continuing education requirements in a given compliance period. Independent, unsupervised self-study must have a successfully completed posttest to receive credit. Independent self-study must pertain to subject matters which integrally relate to the clinical practice of a respiratory care practitioner.

ITEM 3. Amend subrule 260.14(1) as follows:

260.14(1) A continuing education program shall be eligible for approval if the board determines that the program complies with the following:

Is an organized program of learning; pertains to subject matters which integrally relate to the practice of a respiratory care practitioner; contributes to the professional competency of the licensee; pertains to the clinical respiratory care practice; and is conducted by individuals who have education, training, or experience and are considered qualified to present the subject matter of the program, and provides the attendee with a certificate of attendance at the completion of the program.

ARC 8060A

Pursuant to the authority of Iowa Code section 135.106, the Iowa Department of Public Health hereby gives Notice of Intended Action to rescind Chapter 87, "Iowa Healthy Family Program," and adopt a new Chapter 87, "Healthy Families Iowa (HFI)," Iowa Administrative Code.

These rules describe the standards to be used in the provision of services to families and children during the prenatal through preschool years. The proposed amendment has been prompted by Iowa Code Supplement section 135.106. A team of department employees, the current contractor, and representatives of local providers (current subcontractors) were involved in developing the proposed new Chapter 87.

Any interested person may make written suggestions or comments on this proposed amendment on or before June 23, 1998. Such written materials should be directed to Karen Fread, Chief, Community Services Bureau, Lucas State Office Building, Third Floor, 321 E. 12th Street, Des Moines, Iowa 50319-0075.

A public hearing will be conducted June 23, 1998, from 10 to 11 a.m. in ICN Room 326 at the Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa 50319, and on the Iowa Communications Network at the following sites:

Clinton National Guard Armory

1200 13th Ave. North

Clinton, Iowa 52732

Eastern Iowa Community College District 2

ICN Classroom 2, Room 304

Kahl Educational Center

326 West 3rd St.

Davenport, Iowa 52801

Fort Madison High School

Room 506

20th St. and Ave. B

Fort Madison, Iowa 52627

University of Iowa Hospitals and Clinics

ICN Classroom 1, Room 8774C JJP

Eighth Floor

200 Hawkins Drive

Iowa City, Iowa 52242

Indian Hills Community College

ICN Classroom 2

Advanced Technology Center, Room 108

525 Grandview Ave.

Ottumwa, Iowa 52501

Western Iowa Tech Community College

ICN Classroom 2

Building B, Room 127B

4647 Stone Avenue

Sioux City, Iowa 51106

Webster City High School

Room 19

1001 Lynx Avenue

Webster City, Iowa 50595

East Buchanan High School

414 5th Street

Winthrop, Iowa 50882

At the hearing, persons will be asked to give their views either orally or in writing. Persons will also be asked to give their names and addresses for the record and to confine their remarks to the subject of the rules.

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 in advance of the hearing date and advise of specific needs.

This amendment is intended to implement Iowa Code Supplement section 135.106.

The following amendment is proposed.

Rescind 641--Chapter 87 and insert the following new chapter in lieu thereof:

641--87.2(135) Definitions. For the purpose of these rules, the following terms shall have the meaning indicated in this rule:

"Case management" means the activities involved in managing a participant's case.

"Department" means the Iowa department of public health.

"Family assessment worker" means a professional who assesses participant risk and makes referrals for services.

"Family support worker" means a professional or paraprofessional who has successfully completed an approved standard curriculum. A professional family support worker meets the educational qualifications identified in paragraph 87.4(2)"a."

"Home visiting" means health and ecological services delivered through a holistic practice with families and children in their homes. The home visiting process includes assessment, planning, goals, reassessment and evaluation.

"Joint visit" means a visit to a participant by a professional case manager and a family support worker.

"Level of participant" means frequency and intensity of services based upon the participant level of functioning as defined in program policy.

"Nonprofit" means an entity that meets the requirement for tax exempt status under Internal Revenue Code Section 501(c)(3) or 501(c)(4).

"Participant" means a family voluntarily enrolled in and receiving services of the program.

"Professional case manager" means a professional who ensures program standards and supervises services.

641--87.3(135) Eligibility. Persons residing in an approved service area in Iowa who are pregnant or who have a child under the age of 60 days, and who are determined to be at risk according to program guidelines, are eligible to be participants in the project. However, eligibility may be limited if funding is insufficient for adequate service delivery to all eligible persons in the service area.

641--87.4(135) Program standards. Program providers shall meet the following minimum program standards:

87.4(1) Family support worker.

a. A family support worker must successfully complete a specialized training program approved by the department prior to any assignment. However, if specialized training is not immediately available, the family support worker may be assigned participants for no longer than the first three months of employment, if the family support worker has successfully completed a local training and orientation, as approved by the department, prior to assignment. The family support worker must successfully complete the specialized training program approved by the department prior to the end of the first three months of employment.

b. A family support worker must receive 12 hours per year of continuing education/in-service training annually as approved by the department.

87.4(2) Professional case manager.

a. A professional case manager must have received a bachelor of arts (B.A.) or bachelor of science (B.S.) degree in social work, education, sociology, family and consumer science, or other related health or human service field; or be a licensed registered nurse who has received a bachelor's degree or who has successfully completed an accredited community health nursing course.

b. A professional case manager shall maintain a record of services provided to each participant and supervisory activities for each case.

c. A professional case manager shall ensure that each participant receives the following services:

(1) A professional case manager home visit with the participant for initial assessment of need factors; discussion with the participant to establish goals, objectives and action steps; development of the individual family support plan; and appropriate referrals for other services.

(2) Reassessment and revision of the individual family support plan (IFSP) every six calendar months.

(3) A professional case manager will review, within two working days, the family support worker's reassessment and revision of the IFSP.

(4) A professional case manager shall provide a conference every other week with the family support worker regarding activities undertaken, the participant's response to activities, participant's progress or lack of progress, problem solving, and readiness for changes in level or termination of service.

(5) A professional case manager shall provide a joint visit in the home of all Level 1 participants with the paraprofessional family support worker every six calendar months.

(6) A professional case manager shall provide a joint visit in the home of all Level 2 participants with the paraprofessional family support worker every calendar year.

(7) A professional case manager shall provide a visit to all participants at Levels 3 and 4 assigned a paraprofessional family support worker every calendar year.

(8) A professional case manager shall provide an initial visit to participants on Level 1 or 2 that are placed on Level X for a period of more than 30 days to assess and reinstate services.

(9) Access to a professional case manager shall be provided for the family support worker at all times when the worker is scheduled/assigned activity or home visits with a participant or during creative outreach activities.

87.4(3) Family assessment worker.

a. A family assessment worker shall meet the educational qualifications identified in paragraph 87.4(2)"a."

b. A family assessment worker shall have joint interviews with the professional case manager and at least three families annually.

641--87.5(135) Right to appeal.

87.5(1) Local appeal. All local program agencies shall have a written local procedure to hear appeals. Whenever an agency denies, reduces or terminates services eligible to be funded by the state grant against the wishes of a participant, the agency shall notify the participant of the action, the reason for the action, and of the participant's right to appeal. Service need not be provided during the appeal process. The local procedure shall at a minimum include the method of notification of the right to appeal, the procedure for conducting the appeal, the time frame limits for each step, and the method of notification of the outcome of the local appeal and notification of the participant's right to appeal to the state. Notifications of the outcome of the local appeal shall include the facts used to reach a decision and the conclusions drawn from the facts to support the local agency decision. The written appeals procedure and the record of appeals filed (including the record and disposition of each) shall be available for inspection by authorized Iowa department of public health representatives.

87.5(2) Appeal to department. If a participant is dissatisfied with the decision of the local appeal, the participant may appeal to the state. The appeal shall be made in writing by certified mail, return receipt requested, to the Division Director, Division of Family and Community Health, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075, within 15 days following the local agency's appeal decision.

87.5(3) Department review. The department shall evaluate the appeal based upon the merits of the local appeal documentation. A decision affirming, reversing, or modifying the local appeal decision will be issued by the department within ten days of the receipt of the appeal. The decision will be in writing and will be sent by certified mail, return receipt requested, to the participant and the agency.

87.5(4) Further appeal. The department's decision may be appealed by submitting an appeal, within ten days of the receipt of the department decision, to the Division Director, Division of Family and Community Health, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075. Upon receipt of an appeal that meets contested case status, the department shall forward the appeal within five working days to the department of inspections and appeals pursuant to the rules adopted by that agency regarding the transmission of contested cases. The continued process for appeal shall be governed by 641--Chapter 173, Iowa Administrative Code.

These rules are intended to implement Iowa Code Supplement section 135.106.

ARC 8059A

Pursuant to the authority of Iowa Code section 135.47, the Iowa Department of Public Health hereby gives Notice of Intended Action to rescind Chapter 111, "Financial Assistance to Eligible End-Stage Renal Disease Patients," Iowa Administrative Code, and adopt a new Chapter 111 with the same title.

These rules describe financial criteria for determination of program eligibility, application procedures, types of financial assistance which may be provided and payment procedures.

Any interested person may make written suggestions or comments prior to June 25, 1998. Such written material should be directed to the Chronic Renal Disease Program, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0034.

There will be a public hearing on June 25, 1998, at 1 p.m. in the Fourth Floor Conference Room of the Lucas 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 rules.

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

These rules are intended to implement Iowa Code section 135.47.

The following rules are proposed.

Rescind 641--Chapter 111 adopt the following new chapter in lieu thereof:

"Administrative overpayment" means financial assistance incorrectly paid to or for the client because of continuing assistance during the appeal process.

"Agency error" means financial assistance incorrectly paid to or for the client because of action attributed to the department as a result of one or more of the following circumstances:

1. Misfiling or loss of forms or documents.

2. Errors in typing or copying.

3. Computer input errors.

4. Mathematical errors.

5. Failure to determine eligibility correctly or to certify assistance in the correct amount when all essential information was available.

6. Failure to make prompt revisions in payment following changes in reimbursement rate requiring the changes as of a specific date.

"Client" means a current or former applicant or recipient of financial assistance.

"Client error" means financial assistance incorrectly paid to or for the client because the client or client's representative failed to disclose information, or gave false or misleading statements, oral or written, regarding the client's income, resources, or other eligibility and benefit factors. It also means assistance incorrectly paid to or for the client because of failure by the client or client's representative to timely report as defined in paragraph 111.4(4)"a."

"Committee" means the renal disease advisory committee established by Iowa Code section 135.46.

"Department" means the Iowa department of public health.

"Direct expenses" means costs incurred as a result of receiving transplantation or dialysis services.

"Director" means the director of the Iowa department of public health.

"End-stage renal disease" means kidney failure which has progressed enough to require dialysis treatment or a kidney transplant to sustain life.

"Exempt financial resources" means:

1. A homestead without regard to its value as defined in these rules;

2. Personal property as defined in these rules;

3. Life insurance which has no cash surrender value;

4. Equity in a motor vehicle;

5. Income earned by dependents of the client not to exceed gross income of $247 monthly;

6. The balance due on sale contract when commercial or farm property or a business is sold on contract. Payments received on the contract, however, shall be considered as gross income;

7. The equity value up to $100,000 of commercial or farm property or of a business as specified in subrule 111.5(3);

8. An equity not to exceed $6,890 in one irrevocable funeral contract or burial trust for each member of the family as defined below. Any amount in excess of $6,890 shall be counted as nonexempt financial resource; and

9. An equity not to exceed $1,500 in one account or fund designated for burial purposes for each member of the family as defined below. Such funds include but are not limited to revocable burial trusts, cash value of life insurance policies, certificates of deposit, trusts.

"Family" includes the following members:

1. Legal spouses including common-law spouses.

2. Natural or adoptive mother or father, or stepmother or stepfather, and children who reside in the same household and are claimed as dependents on income tax return.

"Family income" means money derived from any source (excluding borrowed money or loans obtained for specific uses) available to clients to offset the expenses associated with their end-stage renal disease other than funds provided by this program.

"Financial assistance" means the program funds provided to or on behalf of clients for those expenses directly or indirectly related to their end-stage renal disease as set forth in these rules.

"Financial resources" means personal, public or private assets available to clients to offset the expenses associated with their end-stage renal disease other than funds provided by this program.

"Financial status" means the level of income into which clients are categorized.

"Gross income" means all income received by family members from sources identified by the U. S. Census Bureau in computing gross income, including:

1. Gross income from money wages or salary,

2. Net income from nonfarm self-employment,

3. Net income from farm self-employment,

4. Royalties,

5. Dividends,

6. Interest,

7. Income from estate or trust,

8. Net rental income,

9. Public assistance or welfare payments such as supplemental security income,

10. Pensions (disability or retirement) including but not limited to social security, railroad retirement and Veterans Administration,

11. Periodic annuity payments (including regular insurance payments),

12. Periodic individual retirement account payments,

13. Unemployment compensation,

14. Workers' compensation,

15. Alimony, and

16. Strike benefits.

"Health insurance" means health insurance expense reimbursement policies, and excludes all hospital indemnity policies.

"Homestead" means the dwelling occupied or intended to be occupied by the client as a home during all or part of the period of eligibility applied for. It shall include a garage, if applicable, and only so much of the land surrounding it as is reasonably necessary for use as a home. The word "dwelling" shall encompass a fixed or mobile home located on land or water or any building occupied wholly or in part as a home. When a homestead has more than one dwelling situated thereon, the dwelling shall be considered to be the one in which the client lives the majority of the time.

When a client is confined in a nursing home, extended-care facility or hospital, the client shall be considered as occupying or living on the homestead provided the client does not lease, rent or otherwise receive profits from other persons for the use thereof.

"Indirect expenses" means incurred costs associated with those necessary expenditures which permit the client to receive transplantation or dialysis services which result in direct expenses.

"Medical resources" means a public or private resource which is or may be available to pay all or a part of the medical costs of a client including, but not limited to, the following:

1. Medicare (Title XVIII),

2. Medical Assistance (Title XIX),

3. Health insurance policies and health maintenance organization contracts, whether issued on an individual or a group basis, including coverage carried by an absent or noncustodial parent,

4. The Veterans Administration,

5. CHAMPUS (Civilian Health and Medical Program of the Uniformed Services),

6. Vocational rehabilitation,

7. County relief/state papers,

8. Medically Needy Program, and

9. Qualified Medicare Beneficiary and Special Low-income Medicare Beneficiary Programs.

"Medical status" means the category into which clients are placed who have received a transplant or are dialyzing via:

1. Outpatient hemodialysis,

2. Outpatient machine peritoneal dialysis,

3. Home hemodialysis,

4. Home machine peritoneal dialysis,

5. Continuous ambulatory peritoneal dialysis,

6. Chronic cycling peritoneal dialysis, or

7. Any other medically recognized method of dialysis.

"Nonexempt financial resources" include but are not limited to:

1. Certificates of deposit,

2. Checking accounts,

3. Fund-raising drives,

4. Market value of stocks and bonds,

5. Savings accounts,

6. The equity value exceeding $100,000 of commercial or farm property or of a business as specified in subrule 111.5(3),

7. An equity value exceeding $6,890 in one irrevocable funeral contract or burial trust for each member of the family,

8. An equity value exceeding $1,500 in one account or fund designated for burial purposes for each member of the family. Such funds include but are not limited to revocable burial trusts, cash value of life insurance policies, certificates of deposit, trusts,

9. Individual retirement account, and

10. Taxable capital gains.

"Period of eligibility" means the 12-month maximum time frame for which financial assistance may be approved.

"Personal property" means property of any kind, except real property as defined in these rules, and is limited to household goods and nontaxable personal property.

"Physician" means a person who is licensed under Iowa Code chapter 148, 150 or 150A.

"Program" means the chronic renal disease program conducted by the department.

"Provider" means a professional, public or private organization which provides services, directly or indirectly, for the treatment of end-stage renal disease.

"Real property" means commercial or farm property or a business including machinery and equipment used in theprosecution of ordinary business.

641--111.2(135) Program purpose. The purpose of the program is to provide financial assistance to eligible persons with end-stage renal disease who require lifesaving services for the renal disease but are unable to pay for the service on a continuing basis.

641--111.3(135) Residency requirements.

111.3(1) To be eligible for financial assistance, clients shall be residents of the state of Iowa.

111.3(2) Temporary absence is the absence of a person during which time there is an intent to return. A temporary absence from the state of Iowa shall not be deemed to have interrupted residency requirements.

641--111.4(135) Application procedures.

111.4(1) Persons seeking financial assistance shall apply on forms provided by the department. The address is Chronic Renal Disease Program, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075.

111.4(2) The date of application shall be the date the application is received by the department.

111.4(3) The department shall approve or deny the application or request additional information within 30 days from the date the application is received. Clients shall be notified by mail of the department's decision.

111.4(4) Approved clients will receive financial assistance for time periods not to exceed 12 months. If during an approved period the client experiences a change in medical or financial status, the department shall be notified in writing within 30 days of the date and nature of the change. Upon receipt of this information,

1. The department shall evaluate the client in accordance with the eligibility criteria identified in these rules.

2. Any subsequent change in financial assistance shall become effective the month following the change in medical or financial status.

3. Clients shall be notified by mail of any change in financial assistance.

111.4(5) Eligibility for financial assistance shall be determined annually on forms provided by the department. The following support documentation shall be submitted to the department and considered a part of the application:

a. Copies of the most recent federal and state income tax returns of the client, the client's spouse, the client's parent(s) or the legal guardian or custodian financially responsible for the care of the client,

b. A copy of most recent social security benefit statement,

c. A copy of most recent annual pension or annuity benefit statement,

d. A copy of most recent annual disability income statement,

e. A copy of Medicare card,

f. A copy of most recent Medicaid (Title XIX) card,

g. A copy of most recent Medically Needy Notice of Decision.

641--111.5(135) Consideration of gross income and other financial and medical resources.

111.5(1) All family income and other financial and medical resources available to a client shall be considered in determining eligibility and any financial participation that may be required of the client.

111.5(2) The gross income of a client's spouse shall be considered available to the client in determining the extent of eligibility and financial participation. Similarly, if the client is an unemancipated minor, the family income of the responsible parent(s), guardian or custodian of the minor shall be considered available to the client.

111.5(3) The equity value of commercial or farm property or of a business which is not the homestead owned or controlled by the client, the client's spouse or, if a minor, by the client's responsible parent(s), guardian or custodian, shall be considered as a countable financial resource. Equity value is defined as the current market value of the property or business, less any legal debt. Verification of the current market value and the substantiation of legal debt shall be the responsibility of the client and shall be obtained from a knowledgeable source including, but not limited to:

a. Real estate brokers;

b. The local office of the Farmer's Home Administration (for rural land);

c. A local office for the Agricultural Stabilization and Conservation Service (for rural land);

d. Banks, savings and loan associations, mortgage companies, and similar lending institutions;

e. Officials of local property tax jurisdictions; and

f. County extension services.

Commercial or farm property or a business (which is not the homestead) shall be excluded as a financial resource when the equity value does not exceed $100,000. When the equity value exceeds $100,000, only that amount exceeding the $100,000 limit shall be counted as a financial resource.

111.5(4) Financial assistance shall be approved only for those services or that part of the cost of a given service for which no other financial or medical resource exists. Clients shall take all steps necessary to apply for and, if entitled, accept any other financial or medical resource for which they qualify. Failure to do so, without good cause, shall result in the denial or termination of any financial assistance from this program that would have been covered by the other resource.

111.5(5) Determination of good cause shall be made by the department and shall be based upon information and evidence provided by the client or by one acting on the client's behalf.

111.5(6) Program staff may, for purposes of verification, contact any person or agency referred to in these rules in order to ensure that any financial assistance that may be provided is not or will not be provided when another financial or medical resource exists.

641--111.6(135) Procedures for determining eligibility.

111.6(1) The department shall review all applications for completeness. Applications found to be incomplete shall be returned to the client with appropriate instructions.

111.6(2) If the client is a minor, necessary information shall be provided by the responsible parent, guardian or custodian of the minor.

111.6(3) An application shall be considered complete when the information contained therein enables the department to determine the client's financial status in accordance with the eligibility criteria established by the department. When necessary, program staff will verify resources shown on the application and will inform clients of other resources that may be available to them.

111.6(4) Based on the evaluation of each application, the type(s) of financial assistance provided shall be determined and made known to the client by mail. Financial assistance shall be effective on the first day of the month in which the complete application was received.

111.6(5) The criteria that follow shall be utilized to determine the client's financial status and eligibility:

a. All income shall be included in the determination of gross income. In regard to nonexempt financial resources, $2,000 will be disregarded for the first family member plus $1,000 for each additional family member living in the home.

b. Two financial status categories based on percentage increases of the most current Department of Health and Human Services poverty income guidelines as published in the Federal Register shall be used. Each range is increased proportionately by the number of family members. The financial status category into which the client falls for eligibility purposes is determined upon evaluation of the client's gross income and other financial and medical resources.

(1) Financial category 1 is defined as clients whose gross income and other resources are within 200 percent of federal poverty level and are eligible for the maximum reimbursement rate.

(2) Financial category 2 is defined as clients whose gross income and other resources are within 201 to 250 percent of federal poverty level and are eligible for 50 percent of the maximum reimbursement rate.

641--111.7(135) Financial assistance.

111.7(1) Financial assistance for charges incurred for the provision of dialysis and kidney transplantation shall be limited to a dialysis and transplantation facility which meets the requirements of the Secretary of Health and Human Services as an approved end-stage renal disease (ESRD) provider under Section 226(g), Title II of the Social Security Act. The types of financial assistance that may be provided shall be limited to the expense categories listed below depending upon the financial and medical resources available to the client.

a. Pharmaceuticals. Take-home legend (prescription) and nonlegend (nonprescription) drugs and other related medical supplies ordered by a physician and not covered by any other resource. Pharmaceuticals include vitamins, but do not include food supplements. Drug reimbursement shall be limited to:

(1) Generic drug only, from the AA/AB list unless medically indicated due to special needs specifically ordered by the physician.

(2) The average wholesale price as listed in the Medi-Span Formulary Price Guide plus a $1 filling fee.

(3) A minimum of a 30-day supply and a maximum of a 90-day supply for maintenance medications.

(4) Based on the formulary for legend and nonlegend drugs established by the department and updated at least annually by the program with recommendations provided by the advisory committee.

Any charges that exceed the reimbursed amount shall be the responsibility of the client.

b. Travel. To and from a Medicare-approved ESRD facility for outpatient dialysis, three months of home dialysis training, transplantation and the three months of posttransplant care following the date of discharge. Transportation cost shall be calculated at 10 cents per mile for all nonpublic transportation. When a client must travel by cab or other means of public transportation service, cost shall be at the rate normally charged for any fare-paying passenger not to exceed $20 per round trip.

c. Health insurance and Medicare.

(1) Premiums for health insurance policies and enrollment fees for health maintenance organization contracts. When a client has family coverage, whether issued on an individual or group basis, program payment shall be limited to the portion of the premium or enrollment fee paid on behalf of the client. This does not include hospital indemnity policies.

(2) Premiums for Medicare.

111.7(2) Financial assistance for the services listed with percent of coverages as defined by subrule 111.7(1) shall receive reimbursement at a rate determined annually by May 1 prior to the beginning of the fiscal year on July 1 by the department with the advice and assistance of the committee.

111.7(3) Should program appropriations be insufficient to meet all eligible requests for financial assistance, it shall be the responsibility of the department, with the advice and assistance of the committee, to take appropriate and necessary action to ensure that program expenses not exceed program funds. This action may include, but need not be limited to:

a. Reducing the amount(s) and type(s) of financial assistance provided to each client;

b. Setting a maximum limit on the amount of financial assistance which may be provided to each client; or

c. Limiting the number of clients who may be approved to receive financial assistance.

641--111.8(135) Transfer or disposal of resources at less than fair market value. In determining eligibility for financial assistance, resources that have been given away or sold or otherwise transferred or disposed of 18 months prior to the month of application at less than fair market value for the purpose of establishing eligibility for financial assistance shall still be counted as resources at their fair market value as specified by subrule 111.5(3).

641--111.9(135) Payment procedures.

111.9(1) Clients shall submit claims for approved financial assistance items on forms provided by the department with sufficient documentation to clearly support the amount(s) claimed.

111.9(2) Providers may submit claims for direct reimbursement on forms other than those provided by the department as long as those forms contain information equivalent to that required by the department.

111.9(3) Claims shall be reviewed for appropriateness and accuracy based upon the client's medical and financial status at the time services were provided.

111.9(4) Reimbursement may be made directly to the client.

111.9(5) Reimbursement may be made directly to the provider.

111.9(6) The date of the claim is the date of service for which reimbursement is requested.

641--111.10(135) Recovery.

111.10(1) The department may recover from a client all funds incorrectly expended to or on behalf of the client. The incorrect expenditures may result from client or agency error, or administrative overpayment.

111.10(2) All clients shall be promptly notified when it is determined that assistance was incorrectly expended. Notification shall include for whom assistance was paid; the time period during which assistance was incorrectly paid; the amount of assistance subject to recovery; and the reason for the incorrect expenditure.

111.10(3) Recovery shall be made from the client or parent(s) of a child under the age of 21 when the parents completed the application and had responsibility for reporting changes.

111.10(4) The repayment of incorrectly expended funds shall be made to the department.

111.10(5) The client shall have the right to appeal the amount of funds subject to recovery under the provisions of rule 111.11(135).

641--111.11(135) Denial, suspension, revocation or reduction of financial assistance.

111.11(1) The department may deny, suspend, revoke or reduce financial assistance based upon eligibility and financial criteria and other pertinent rules within this chapter. Notification will be mailed at least ten calendar days before the date the action becomes effective and includes:

1. A statement of what action is being taken.

2. The reasons for the intended action.

3. An explanation of the client's right to appeal.

111.11(2) Provided that rule changes affecting the types or limitations of financial assistance are made in accordance with the rule-making process pursuant to Iowa Code chapter 17A, the appeal provisions of this rule shall not apply to any action taken pursuant to subrule 111.7(3).

111.11(3) Notwithstanding subrule 111.11(2), upon receipt of a notice of denial, suspension, revocation, or reduction, the client may request an appeal. The appeal shall be made in writing to the department within 15 days from the date of the department's notice. The address is Chronic Renal Disease Program, Iowa Department of Public Health,Lucas State Office Building, Des Moines, Iowa 50319-0075. If such a request is made within the 15-day time period, the notice shall be deemed to be suspended. Prior to or at the hearing, the department may rescind the notice upon satisfaction that the reason for the denial, suspension, revocation, or reduction of financial assistance has been or will be removed. If no request for appeal is received within the 15-day time period, the department's notice of denial, suspension, revocation, or reduction of financial assistance shall become the department's final agency action.

111.11(4) Continued financial assistance is subject to recovery by the department if its action is sustained. This recovery is not an appealable issue.

111.11(5) Upon receipt of an appeal that meets contested case status, the appeal shall be forwarded within five working days to the department of inspections and appeals pursuant to the rules adopted by that agency regarding the transmission of contested cases. The information upon which the adverse action is based and any additional information which may be provided by the client shall also be provided to the department of inspections and appeals.

111.11(6) The hearing shall be conducted according to the procedural rules of the department of inspections and appeals found in 481--Chapter 10, Iowa Administrative Code.

111.11(7) After the hearing, or upon default of the aggrieved party, the hearing officer shall affirm, modify or set aside the denial, suspension, revocation, or reduction of financial assistance.

111.11(8) When the administrative law judge makes a proposed decision and order, it shall be served by certified mail, return receipt requested, or delivered by personal service. That proposed decision and order then becomes the department's final agency action without further proceedings ten days after it is received by the aggrieved party unless an appeal to the director is taken as provided in subrule 111.11(9).

111.11(9) Any appeal to the director for review of the proposed decision and order of the administrative law judge shall be filed in writing and mailed to the director by certified mail, return receipt requested, or delivered by personal service within ten days after the receipt of the administrative law judge's proposed decision and order by the aggrieved party. A copy of the appeal shall also be mailed to the administrative law judge. Any request for an appeal shall state the reason for appeal.

111.11(10) Upon receipt of an appeal request, the administrative law judge shall prepare the record of the hearing for submission to the director. The record shall include the following:

a. All pleadings, motions, and rules.

b. All evidence received or considered and all other submissions by recording or transcript.

c. A statement of all matters officially noticed.

d. All questions and offers of proof, objections, and rulings thereon.

e. All proposed findings and exceptions.

f. The proposed decision and order of the administrative law judge.

111.11(11) The decision and order of the director becomes the department's final agency action upon receipt by the aggrieved party and shall be delivered by certified mail, return receipt requested, or by personal service.

111.11(12) It is not necessary to file an application for a rehearing to exhaust administrative remedies when appealing to the director or the district court as provided in Iowa Code section 17A.19. The aggrieved party to the final agency action of the department who has exhausted all administrative remedies may petition for judicial review of that action pursuant to Iowa Code chapter 17A.

111.11(13) Any petition for judicial review of a decision and order shall be filed in the district court within 30 days after the decision and order becomes final. A copy of the notice of appeal shall be sent to the department by certified mail, return receipt requested, or by personal service. The address is Chronic Renal Disease Program, Iowa Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319-0075.

111.11(14) The party who appeals a final agency action to the district court shall pay the cost of the preparation of a transcript of the contested case hearing for the district court.

These rules are intended to implement Iowa Code section 135.47.

ARC 8055A

Pursuant to the authority of Iowa Code section 100.35, the Iowa Department of Public Safety hereby gives Notice of Intended Action to amend Chapter 5, "State Fire Marshal," Iowa Administrative Code.

The Department terminates the rule making initiated by its Notice of Intended Action published as ARC 7393A in the Iowa Administrative Bulletin on July 16, 1997, because the amendments were not adopted within the 180 days required by Iowa Code section 17A.4.

The amendments proposed here would clarify that fire safety requirements for small group homes specified in rule 661--5.620(100) apply to all such facilities licensed pursuant to Iowa Code section 135C.2, and not only to small group homes for mentally retarded persons. When this rule was originally developed, it applied to residential homes used to house mentally retarded individuals in a demonstration project; the Iowa Code provisions direct that rules "no more restrictive" than those developed for the demonstration project should apply to all facilities in this classification. This amendment broadens the applicability of the rules in a manner consistent with the statutory provision.

A public hearing on these proposed amendments will be held on June 29, 1998, at 10:30 a.m., in the Third Floor Conference Room, Wallace State Office Building, 900 East Grand, Des Moines, Iowa 50319. Persons may present their views orally or in writing at the public hearing. Persons who wish to make oral presentations at the public hearing should contact the Plans and Research Bureau, Iowa Department of Public Safety, Wallace State Office Building, Des Moines, Iowa 50319 by mail, by telephone at (515)281-5524, or by electronic mail to admrule@dps.state.ia.us, at least one day prior to the public hearing. Any written comments or information regarding these proposed amendments may be directed to the Plans and Research Bureau by mail or electronic mail at the addresses indicated, or may be submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Plans and Research Bureau by telephone or in person at the Bureau office at least one day prior to the public hearing.

These amendments are intended to implement Iowa Code section 135C.2.

The following amendments are proposed.

ITEM 1. Amend rule 661--5.620(100) as follows:

Amend rule 661--5.620(100), implementation and catchwords, as follows:

661--5.620(100,135C) General requirements for small group homes (specialized licensed facilities) for the mentally retarded licensed pursuant to Iowa Code section 135C.2.

ITEM 2. Amend subrule 5.620(1) as follows:

5.620(1) Scope. This rule applies to specialized licensed facilities licensed under the provisions of Iowa Code section 135C.2 and having three to five beds for the mentally retarded individuals who are infirm, convalescent, or mentally or physically dependent. with three to five beds.

ARC 8056A

Pursuant to the authority of Iowa Code sections 421.14 and 422.68(1), the Iowa Department of Revenue and Finance hereby gives Notice of Intended Action to amend Chapter 42, "Adjustments to Computed Tax," Iowa Administrative Code.

The amendment rescinds the present rule for nonresident taxpayers and for taxpayers that are Iowa residents for part of the tax year which shows how the nonresident/part-year resident credit is computed for these taxpayers and replaces this rule with a new rule. This nonresident/part-year resident credit is equivalent to the Iowa income tax on the individuals' non-Iowa source incomes. The new rule provides much more detailed descriptions on how the credit is computed than was provided in the prior rule.

The new rule includes examples which show how thenonresident/part-year resident credit is computed under different circumstances for both nonresidents of Iowa and part-year residents of Iowa.

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

The Department has determined that this proposed rule 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 June 23, 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 rule on or before July 3, 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 June 26, 1998.

This rule is intended to implement Iowa Code sections 422.5, 422.7, 422.8, 422.9, and 422.12.

The following rule is proposed.

Rescind rule 701--42.3(422) and adopt the following new rule in lieu thereof:

701--42.3(422) Nonresident and part-year resident credit. For tax years beginning on or after January 1, 1982, an individual who is a nonresident of Iowa for the entire tax year, or an individual who is an Iowa resident for a portion of the tax year, is allowed a credit against the individual's Iowa income tax liability for the Iowa income tax on the portion of the individual's income which was earned outside Iowa while the person was a nonresident of Iowa. This credit is computed on Schedule IA 126 which is included in the Iowa individual income tax booklet. The following subrules clarify how the nonresident and part-year resident credit is computed for nonresidents of Iowa and taxpayers who are part-year residents of Iowa during the tax year.

42.3(1) Nonresident/part-year resident credit for nonresidents of Iowa. A nonresident of Iowa is to complete the Iowa individual return by reporting the individual's total net income, including incomes earned outside Iowa, on the front of the IA 1040 return form similar to the way an Iowa resident completes the return form. A nonresident individual is allowed the same deduction for federal income tax and the same itemized deductions as an Iowa resident taxpayer with identical deductions for these expenditures. Thus, a nonresident with a taxable income of $40,000 would have the same initial Iowa income tax liability as a resident taxpayer with a taxable income of $40,000 before the nonresident/part-year resident credit is computed.

The nonresident/part-year resident credit is computed on Schedule IA 126. The lines referred to in this subrule are from Schedule IA 126 and Form IA 1040 for the 1997 tax year. Similar lines on the schedule and form may apply for subsequent tax years. The individual's Iowa source net income from lines 1 through 25 of the schedule is totaled on line 26 of the schedule. If the nonresident's Iowa source net income is less than $1,000, the taxpayer is not subject to Iowa income tax and is not required to file an Iowa income tax return for the tax year. However, if the Iowa source net income amount is $1,000 or more, the Iowa source net income is then divided by the person's all source net income on line 27 of Schedule IA 126 to determine the percentage of the Iowa net income to all source net income. This Iowa income percentage is inserted on line 28 of the schedule, and this percentage is then subtracted from 100 percent to arrive at the nonresident/part-year resident credit percentage or the percentage of the individual's total income which was earned outside Iowa. The nonresident/part-year resident credit percentage is entered on line 29 of Schedule IA 126. The Iowa income tax on total income from line 43 of the IA 1040 is entered on line 30 of Schedule IA 126. The total of nonrefundable credits from line 50 of the IA 1040 is then shown on line 31 of Schedule IA 126. The amount on line 31 is subtracted from the amount on line 30 which leaves the Iowa total tax after nonrefundable credits on line 32. This Iowa tax after credits amount is multiplied by the nonresident/part-year resident credit percentage from line 29 to compute thenonresident/part-year credit. The amount of the credit is inserted on line 33 of Schedule IA 126 and on line 52 of the IA 1040.

EXAMPLE A. A single resident of Nebraska had Iowa source net income of $15,000 in 1997 from wages earned from employment in Iowa. The rest of this person's income was attributable to sources outside Iowa. This nonresident of Iowa had an all source net income of $40,000 and a taxable income of $30,000 due to a federal tax deduction of $7,000 and itemized deductions of $3,000. The Iowa income percentage is computed by dividing the Iowa source net income of $15,000 by the taxpayer's all source net income of $40,000, which results in a percentage of 37.5. This per-centage is subtracted from 100 percent which leaves anonresident/part-year credit percentage of 62.5.

The Iowa tax from line 43 of the IA 1040 is $1,789. The total nonrefundable credit from line 50 is $20, which leaves a tax amount of $1,769 when the credit is subtracted from $1,789. When $1,769 is multiplied by the nonresident/part-year resident credit percentage of 62.5 percent, a nonresident credit of $1,106 is computed which is entered on line 33 of Schedule IA 126 as well as on line 52 of the IA 1040 for 1997.

EXAMPLE B. A California resident, who was married, had $20,000 of Iowa source income in 1997 from an Iowa farm. This individual had an additional $80,000 in income that was attributable to sources outside Iowa, but the individual's spouse had no income. The taxpayers had paid $18,000 in federal income tax in 1997 and had itemized deductions of $12,000 in 1997.

The taxpayers' taxable income on their joint Iowa return was $70,000. The taxpayers had an Iowa income tax liability of $5,422 after application of the personal exemption credits of $40. The taxpayers had an Iowa source income of $20,000 and an all source net income of $100,000. Therefore, the Iowa income percentage was 20 percent. Subtracting the Iowa income percentage of 20 percent from 100 percent leaves a nonresident/part-year resident credit percentage of 80 percent.

When the Iowa income tax liability of $5,422 is multiplied by 80 percent, this results in a nonresident/part-year resident credit of $4,338. This credit amount is entered on line 33 of Schedule IA 126 and on line 52 of Form IA 1040.

42.3(2) Nonresident/part-year resident credit for part-year residents of Iowa. An individual who is a resident of Iowa for part of the tax year is to complete the front of the IA 1040 income tax return form as a resident taxpayer by showing the taxpayer's total income, including incomes earned outside Iowa, on the front of the IA 1040 return form. A part-year resident of Iowa is allowed the same federal tax deduction and itemized deductions as a resident taxpayer who has paid the same amount of federal income tax and has paid for the same deductions that can be claimed on Schedule A in the tax year. Therefore, a part-year resident would have the same initial Iowa income tax liability as an Iowa resident with the same taxable income before computation of the nonresident/part-year resident credit.

The nonresident/part-year resident credit for a part-year resident is computed on Schedule IA 126. The lines referred to in this subrule are from the IA 1040 income tax return form and the Schedule IA 126 for 1997. Similar lines may apply for tax years after 1997. The individual's Iowa source income is totaled on line 26 of this form and includes all the individual's income received while the taxpayer was a resident of Iowa and all the Iowa source incomes received during the period of the tax year when the individual was a resident of a state other than Iowa. Iowa source income includes, but is not limited to, wages earned in Iowa while a resident of another state as well as incomes from Iowa farms and other Iowa businesses that were earned during the portion of the year that the taxpayer was a nonresident of Iowa. In the case of interest from a part-year resident's account at an Iowa financial institution, only interest earned during the period of the individual's Iowa residence is Iowa source income unless the account is for an Iowa business. If the part-year resident's account at a financial institution is for an Iowa business, all interest earned in the year by the part-year resident from the account is taxable to Iowa.

Income earned outside Iowa by the part-year resident during the portion of the year the individual was an Iowa resident is taxable to Iowa and is part of the individual's Iowa source income. To compute the nonresident/part-year resident credit for a part-year resident, the taxpayer's Iowa source income on Schedule IA 126 is totaled. If the Iowa source income is less than $1,000, the taxpayer is not subject to Iowa income tax and is not required to file an Iowa return. If the Iowa source income is $1,000 or more, it is divided by the taxpayer's all source net income on line 27 of Schedule IA 126. The percentage computed by this procedure is the Iowa income percentage and is entered on line 28 of Schedule IA 126. The Iowa income percentage is then subtracted from 100 percent to arrive at the nonresident/part-year resident credit percentage which is entered on line 29 of Schedule IA 126. The Iowa tax from line 43 of the IA 1040 is then shown on line 30 of Schedule IA 126. The total of the Iowa nonrefundable credits from line 50 of the IA 1040 is entered on line 31 of Schedule IA 126 and is subtracted from the Iowa tax amount on line 30. The tax after credits amount on line 32 is next multiplied by the nonresident/part-year resident credit percentage from line 28. The amount calculated from this procedure is the nonresident/part-year resident credit which is shown on line 33 of Schedule IA 126 and on line 52 of Form IA 1040.

EXAMPLE A. A single individual was a resident of Nebraska for the first half of 1997 and moved to Iowa on July 1 to accept a job in Des Moines. This individual earned $20,000 from wages, $200 from interest, and $4,000 from a ranch in Nebraska from January 1, 1997, through June 30, 1998. In the last half of 1997, this person had wages of $30,000, interest income of $300, and $4,000 from the Nebraska ranch. This part-year resident had federal income tax paid in 1997 of $11,000 and had itemized deductions of $3,000.

The part-year resident's all source net income was $58,500 and the Iowa source net income was $34,300, which includes the Iowa wages, the Nebraska ranch income of $4,000 earned during the individual's period of Iowa residence, as well as the interest income of $300 earned in that time of the tax year. The Iowa taxable income for the part-year resident for 1997 was $44,500, which considered the federal income tax deduction of $11,000 and itemized deductions of $3,000. The individual's Iowa income percentage was 58.6 which was determined by dividing the Iowa source income of $34,300 by the all source income of $58,500. Subtracting the Iowa income percentage of 58.6 from 100 percent results in a nonresident/part-resident credit percentage of 41.4 percent. The Iowa tax on total income was $3,023 which was reduced to $3,003 after subtraction of the personal exemption credit of $20.

When $3,003 is multiplied by the nonresident/part-year resident percentage of 41.4, a nonresident/part-year resident credit of $1,243 is computed for this part-year resident.

EXAMPLE B. A single individual moved from Minnesota to Iowa on July 1, 1997. This person had received $5,000 in income from an Iowa farm in March of the tax year and another $10,000 from this farm in September of 1997. This person had $10,000 in wages from employment in Minnesota in the first half of the year and another $15,000 in wages from employment in Iowa in the last half of 1997. This person had $2,000 in interest from a Minnesota bank in the first half of the year and $2,000 in interest from an Iowa bank in the last six months of 1997. This taxpayer had $8,000 in federal income tax withheld from wages in 1997 and claimed the standard deduction on both the Iowa and federal income tax returns.

The part-year resident's all source income was $44,000 and the Iowa source income was $32,000 which consisted of $15,000 in wages, $2,000 in interest income, and $15,000 in income from the Iowa farm. Since the farm was in Iowa, the farm income received in the first half of 1997 was taxable to Iowa as well as the farm income received while the individual was an Iowa resident. The individual's Iowa taxable income was $34,590 which was computed after subtracting the federal income tax deduction of $8,000 and a standard deduction of $1,410. The taxpayer's Iowa income tax liability was $2,132 after subtraction of a personal exemption credit of $20.

The taxpayer's Iowa income percentage was 77.3 per-cent which was computed by dividing the Iowa sourceincome of $34,000 by the all source income of $44,000.The nonresident/part-year resident credit percentage was 22.7 percent which was arrived at by subtracting the Iowa income percentage of 77.3 percent from 100 percent. The taxpayer's nonresident/part-year resident credit is $484. This was determined by multiplying the Iowa income tax liability after personal exemption credit amount of $2,132 by the nonresident/part-year resident percentage of 22.7 percent.

This rule is intended to implement Iowa Code section 422.5.

May 1, 1997 -- May 31, 1997 8.75%

June 1, 1997 -- June 30, 1997 9.00%

July 1, 1997 -- July 31, 1997 8.75%

August 1, 1997 -- August 31, 1997 8.50%

September 1, 1997 -- September 30, 1997 8.25%

October 1, 1997 -- October 31, 1997 8.25%

November 1, 1997 -- November 30, 1997 8.25%

December 1, 1997 -- December 31, 1997 8.00%

January 1, 1998 -- January 31, 1998 8.00%

February 1, 1998 -- February 28, 1998 7.75%

March 1, 1998 -- March 31, 1998 7.50%

April 1, 1998 -- April 30, 1998 7.50%

May 1, 1998 -- May 31, 1998 7.75%

June 1, 1998 -- June 30, 1998 7.75%

This amendment implements revised federal regulations requiring nursing facilities to electronically transmit the information contained on the resident assessments to the state. The resident assessment consists of a minimum data set (MDS) of screening and assessment elements, including common definitions and coding categories. In addition, this amendment requires that a facility not release information that is resident-identifiable to the public and sets penalties for falsification of a resident assessment.

Nursing facilities are currently required to complete a resident assessment on each resident no later than 14 days after the date of admission, promptly after a significant change in the resident's physical or mental condition, and no less often than once every 12 months. In addition, facilities are required to examine each resident quarterly and revise the resident's assessment as needed to ensure continued accuracy of the assessment.

This amendment continues to require the nursing facility to complete assessments no later than 14 days after the date of admission and after readmissions if there is a significant change in the resident's physical or mental condition; within 14 days after the facility determines, or should have determined, that there has been a significant change in the resident's physical or mental condition; and no less often than once every 12 months. Quarterly reviews are also required. Facilities are required to maintain all assessments completed within the previous 15 months in the resident's active record and use the results to develop, review and revise the resident's comprehensive plan of care.

Within seven days after the nursing facility completes a resident's assessment, a facility must enter certain information into a computerized format and be capable of transmitting each resident's assessment information to the state in a format that conforms to standard record layouts and data dictionaries and that passes edits defined by HCFA. At least monthly, facilities shall input and electronically transmit accurate and complete MDS data for all assessments conducted during the previous month.

The Health Care Financing Administration (HCFA) published a proposed rule regarding MDS in the Federal Register on December 28, 1992. A final rule was published December 23, 1997, containing the requirement that all nursing facilities across the country begin electronic submission June 22, 1998. HCFA is planning national aggregation of nursing facility data to be used for quality control measures and as part of the survey and certification process. The Iowa Department of Inspections and Appeals will use the data on a state level to generate reports and monitor facility performance.

The Department contracted with the Iowa Foundation for Medical Care (IFMC) in state fiscal year 1997 to develop the computer system and in state fiscal year 1998 for facility training and communication, data transmission, and technical support for ongoing maintenance. The Department of Inspections and Appeals and the IFMC have completed training nursing facility personnel and expect that all facilities will be ready to start electronic transmission on June 22, 1998.

The Department of Human Services finds that notice and public participation are unnecessary. The Department has no choice but to adopt this amendment which is required by federal regulations. Therefore, this amendment is filed pursuant to Iowa Code section 17A.4(2) and 441--subrule 3.10(2).

The Department finds that this amendment confers a benefit on nursing facility residents by providing a more efficient and effective process for evaluating and ensuring quality. Quality-related information needed to make more informed choices about care, information on measures of quality and care outcomes for particular providers, and a longitudinal data base of clinical health status measures for use in improving the quality of care provided to residents will be available. This amendment confers a benefit on the public by ensuring the Department's compliance with federal regulations and avoiding possible funding losses. Therefore, this amendment is filed pursuant to Iowa Code section 17A.5(2)"b"(2).

This amendment is also published herein under Notice of Intended Action as ARC 8038A to allow for public comment.

The Council on Human Services adopted this amendment May 13, 1998.

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

This amendment shall become effective June 22, 1998.

The following amendment is adopted.

Amend subrule 81.13(9), paragraphs "b" and "c," as follows:

b. Comprehensive assessments.

(1) The facility shall make a comprehensive assessment of a resident's needs which is based on the uniform data set minimum data set (MDS) specified by the department of inspections and appeals. The facility shall use the federal assessment tool , which describes the resident's capability to perform daily life functions and significant impairments in functional capacity.

(2) The assessment process shall include direct observation and communication with the resident, as well as communication with licensed and nonlicensed direct care staff members on all shifts. The comprehensive assessment shall include at least the following information:

1. Medically defined conditions and prior medical history Identification and demographic information.

2. Medical status measurement Customary routine.

3. Physical and mental functional status Cognitive patterns.

4. Sensory and physical impairments Communication.

5. Nutritional status and requirements Vision.

6. Special treatments or procedures Mood and behavior patterns.

7. Mental and psychosocial status Psychosocial well-being.

8. Discharge potential Physical functioning and structural problems.

9. Dental conditions Continence.

10. Activities potential Disease diagnoses and health conditions.

11. Rehabilitation potential Dental and nutritional status.

12. Cognitive status Skin condition.

13. Drug therapy Activity pursuit.

14. Medications.

15. Special treatments and procedures.

16. Discharge potential.

17. Documentation of summary information regarding the additional assessment performed through the resident assessment protocols.

18. Documentation of participation in assessment.

19. Additional specification relating to resident status as required in Section S of the MDS.

(3) Frequency. Assessments shall be conducted:

1. No later than 14 days after the date of admission. Within 14 calendar days after admission or readmission, excluding readmissions in which there is no significant change in the resident's physical or mental condition. "Readmission" means a return to the facility following a temporary absence for hospitalization or for therapeutic leave.

2. No later than October 1, 1991, for current residents. Within 14 calendar days after the facility determines, or should have determined, that there has been a significant change in the resident's physical or mental condition. A "significant change" means a major decline or improvement in the resident's status that will not normally resolve itself without further intervention by staff or by implementing standard disease-related clinical interventions, that has an impact on more than one area of the resident's health status, and that requires either interdisciplinary review, revision of the care plan, or both.

3. Promptly after a significant change in the resident's physical or mental condition.

4. In no case less often than once every 12 months.

(4) Review of assessments. The facility shall examine each resident no less than once every three months, and as appropriate, revise the resident's assessment to ensure the continued accuracy of the assessment.

(5) Use Maintenance and use. The results of the assessment shall be used A facility shall maintain all resident assessments completed within the previous 15 months in the resident's active record and use the results to develop, review and revise the resident's comprehensive plan of care.

(6) Coordination. The facility shall coordinate assessments with any state-required preadmission screening program to the maximum extent practicable to avoid duplicative testing and effort.

(7) Automated data processing requirement.

1. Entering data. Within seven days after a facility completes a resident's assessment, a facility shall enter the following information for the resident into a computerized format that meets the specifications defined in numbered paragraphs "2" and "4" below.

* Admission assessment.

* Annual assessment updates.

* Significant change in status assessments.

* Quarterly review assessments.

* A subset of items upon a resident's transfer, reentry, discharge, and death.

* Background (face sheet) information, if there is no admission assessment.

2. Transmitting data. Within seven days after a facility completes a resident's assessment, a facility shall be capable of transmitting to the state each resident's assessment information contained in the MDS in a format that conforms to standard record layouts and data dictionaries and that passes edits that ensure accurate and consistent coding of the MDS data as defined by the Health Care Financing Administration (HCFA) and the department of human services or the department of inspections and appeals.

3. Monthly transmittal requirements. On at least a monthly basis, a facility shall input and electronically transmit accurate and complete MDS data for all assessments conducted during the previous month, including the following:

* Admission assessment.

* Annual assessment.

* Significant correction of prior full assessment.

* Significant correction of prior quarterly assessment.

* Quarterly review.

* A subset of items upon a resident's transfer, reentry, discharge, and death.

* Background (face sheet) information, for an initial transmission of MDS data on a resident who does not have an admission assessment.

4. The facility must transmit MDS data in the ASCII format specified by HCFA.

(8) Resident-identifiable information. A facility shall not release information that is resident-identifiable to the public. The facility may release information that is resident-identifiable to an agent only in accordance with a contract under which the agent agrees not to use or disclose the information except to the extent the facility itself is permitted to do so.

c. Accuracy of assessments. The assessment shall accurately reflect the resident's status.

(1) Coordination. Each assessment shall be conducted or coordinated with the appropriate participation of health professionals. Each assessment shall be conducted or coordinated by a registered nurse who signs and certifies the completion of the assessment.

(2) Certification. Each person who completes a portion of the assessment shall sign and certify the accuracy of that portion of the assessment. A registered nurse shall sign and certify that the assessment is completed.

(3) Penalty for falsification. An individual who willfully and knowingly certifies or causes another individual to certify, a material and false statement in a resident assessment is subject to a civil money penalties penalty of not more than $1,000 for each assessment. An individual who willfully and knowingly causes another individual to certify a material and false statement in a resident assessment is subject to a civil money penalty of not more than $5,000 for each assessment.

Clinical disagreement does not constitute a material and false statement.

(4) Use of independent assessors. If the state department of human services or the department of inspections and appeals determines, under a survey or otherwise, that there has been a knowing and willful certification of false statements under subparagraph (3) above, the state department of human services or the department of inspections and appeals may require that resident assessments under this paragraph be conducted and certified by individuals who are independent of the facility and who are approved by the state department of human services or the department of inspections and appeals for a period specified by the state agency.

ARC 8051A

These amendments to subrules 200.10(3) and 202.11(3) change the number of continuing education hours for physical therapists and physical therapist assistants due during the 1999 renewal cycle.

In compliance with Iowa Code section 17A.4(2), the Department finds that notice and public participation are impracticable because of the immediate need for rule change to inform licensed physical therapists and physical therapist assistants of the change in the number of continuing education hours needed by July 1, 1999. These amendments have no other effect on licensure or professional practices.

The Board also finds, pursuant to Iowa Code section 17A.5(2)"b"(2), that the normal effective date of the amendments should be waived and these amendments should be made effective May 27, 1998, as they confer a benefit on the public.

The amendments are intended to implement Iowa Code section 147.76 and Iowa Code chapters 148A and 272C.

These amendments became effective May 27, 1998.

The following amendments are adopted.

ITEM 1. Amend subrule 200.10(3) as follows:

200.10(3) The continuing education compliance period shall be each biennium beginning the fifteenth day of the birth month and ending two years later on the fifteenth day of the birth month. For the 1999 renewal cycle only, the 50 hours of continuing education hours will be prorated as follows: due by July 1, 1999.

Birth Month Prorated Continuing Education

July 1999 50 hours

August 1999 52 hours

September 1999 53 hours

October 1999 55 hours

November 1999 57 hours

December 1999 58 hours

January 2000 60 hours

February 2000 62 hours

March 2000 63 hours

April 2000 65 hours

May 2000 67 hours

June 2000 68 hours

Continuing education hours will return to 40 hours each biennium at the end of this prorated compliance period.

ITEM 2. Amend subrule 202.11(3) as follows:

202.11(3) The continuing education compliance period shall be each biennium beginning the fifteenth day of the birth month and ending two years later on the fifteenth day of the birth month. For the 1999 renewal cycle only, the 25 hours of continuing education hours will be prorated as follows: will be due by July 1, 1999.

Birth Month Prorated Continuing Education

July 1999 25 hours

August 1999 26 hours

September 1999 27 hours

October 1999 27 hours

November 1999 28 hours

December 1999 29 hours

January 2000 30 hours

February 2000 31 hours

March 2000 32 hours

April 2000 32 hours

May 2000 33 hours

June 2000 34 hours

Continuing education hours will return to 20 hours each biennium at the end of this prorated compliance period.

The amendments clarify the authority for the substitute license, provide an option to assist local districts with special instructional needs, and broaden the authority for the holder of a regular license to serve as a substitute teacher.

Notice of Intended Action was published in the Iowa Administrative Bulletin on February 11, 1998, as ARC 7801A. A public hearing was held on March 5, 1998. One person appeared at that public hearing. One written comment was received. The amendments remain the same as those published under Notice of Intended Action.

The Board of Educational Examiners adopted these amendments on May 1, 1998.

These amendments will become effective on July 8, 1998.

These amendments are intended to implement Iowa Code chapter 272.

The following amendments are adopted.

Amend rule 282--14.17(272) to read as follows:

282--14.17(272) Requirements for a substitute teacher's license.

14.17(1) A substitute teacher's license may be issued to an individual who has met the following:

a. Has been the holder of, or presently holds, a license in Iowa; or holds or held a regular teacher's license or certificate in another state, exclusive of temporary, emergency, substitute certificate or license, or a certificate based on an alternative certification program.

b. Has successfully completed all requirements of an approved teacher education program and is eligible for the provisional license, but has not applied for and been issued this license, or who meets all requirements for the provisional license with the exception of the degree but whose degree will be granted at the next regular commencement.

14.17(2) A substitute license is valid for five years and for not more than 90 days of teaching in any one assignment during any one school year.

A school district administrator may file a written request with the board for an extension of the 90-day limit in one assignment on the basis of documented need and benefit to the instructional program. The board will review the request and provide a written decision either approving or denying the request.

14.17(3) The holder of a substitute license is authorized to teach in any school system in any position in which a regularly licensed teacher was employed to begin the school year.

In addition to the authority inherent in the provisional, educational, professional teacher, and permanent professional licenses and the endorsement(s) held, the holder of one of these regular licenses may substitute on the same basis as the holder of a substitute license while the regular license is in effect.

This license may be renewed by meeting requirements listed in 282--17.9(272).

ARC 8065A

The new chapter will become effective on August 31, 2001, the same date on which the current Chapter 14 is rescinded. This new chapter defines the basic framework for Iowa practitioner licensure setting out the basic requirements and procedures for the issuance of all practitioners' licenses. These requirements include the type of licenses to be issued, including new licenses, the basic requirements and terms for each license, the new professional education core requirements, the human relations requirement, and the fee for the issuance of each type of license.

The endorsement requirements included in the current Chapter 14 will be transferred to a new Chapter 15 to be filed prior to August 31, 2001, as part of a complete revision in the endorsement structure and requirements.

Notice of Intended Action was published in the Iowa Administrative Bulletin on February 11, 1998, as ARC 7802A. A public hearing was held on March 6, 1998, during the regular meeting of the Board of Educational Examiners, and another public hearing was held on March 10, 1998, via the Iowa Communications Network (ICN).

There were no comments related to the substance, the content, or the direction of the licensure rules. The only comments related to the cost factor for the program approvalprocess for the Department of Education. The rules remain the same as those published under Notice of Intended Action.

The Board of Educational Examiners adopted this chapter on May 1, 1998.

These rules will become effective August 31, 2001.

These rules are intended to implement Iowa Code section 272.2.

The following chapter is adopted.

Rescind 282--Chapter 14, effective August 31, 2001, and adopt the following new chapter in lieu thereof.

282--14.2(272) Applicants from recognized Iowa institutions. An applicant for initial licensure who completes the teacher, administrator, or school service personnel preparation program from a recognized Iowa institution shall have the recommendation for the specific license and endorsement(s) or the specific endorsement(s) from the designated recommending official at the recognized education institution where the preparation was completed. A recognized Iowa institution is one which has its program of preparation approved by the state board of education according to standards established by said board, or an alternative program recognized by the state board of educational examiners.

282--14.3(272) Applicants from recognized non-Iowa institutions. An applicant for initial licensure who completes the teacher, administrator, or school service personnel preparation program from a recognized non-Iowa institution shall have the recommendation for the specific license and endorsement(s) or the specific endorsement(s) from the designated recommending official at the recognized institution where the preparation was completed, provided all requirements for Iowa licensure have been met.

Applicants who hold a valid license from another state and whose preparation was completed through a nontraditional program, through an accumulation of credits from several institutions, shall file all transcripts with the practitioner preparation and licensure bureau for a determination of eligibility for licensure.

A recognized non-Iowa institution is one which is accredited by the regional accrediting agency for the territory in which the institution is located.

282--14.4(272) Applicants from foreign institutions. An applicant for initial licensure whose preparation was completed in a foreign institution will be required to have all rec-ords translated into English and then file these records with the board of educational examiners for a determination of eligibility for licensure.

282--14.5(272) Issue date on original license. A license is valid only from and after the date of issuance.

282--14.6(272) Adding endorsements to licenses. After the issuance of a teaching, administrative, or school service personnel license, an individual may add other endorsements to that license upon proper application provided current requirements for that endorsement have been met. An updated license with expiration date unchanged from the original or renewed license will be prepared.

14.6(1) To add an endorsement, the applicant shall comply with one of the following options:

Option 1. Identify with a recognized Iowa teacher preparing institution, meet that institution's current requirements for the endorsement desired, and receive that institution's recommendation.

Option 2. Identify with a recognized Iowa teacher education institution and receive a statement that the applicant has completed the equivalent of the institution's approved program for the endorsement sought.

Option 3. Identify with a recognized teacher education institution and receive a statement that based on the institution's evaluation of the individual's preparation the applicant has completed all of the Iowa requirements for the endorsement sought.

14.6(2) Appeal. If an applicant believes the Iowa requirements have been met but cannot obtain an equivalent statement from an institution, the applicant may file the transcripts for review. The rejection from the institution must be in writing. In this situation, the staff of the board of educational examiners shall review the preparation in terms of the Iowa requirements.

282--14.7(272) Correcting licenses. If, at the time of the original issuance or renewal of a license, a person does not receive an endorsement for which the individual is eligible, a corrected license shall be issued. Also, a corrected license shall be issued if a person receives an endorsement for which the person is not eligible.

282--14.8(272) Duplicate licenses. Upon application and payment of the fee set out in subrule 14.21(3), duplicate licenses shall be issued.

282--14.9(272) Fraud in procurement or renewal of licenses. Fraud in procurement or renewal of a license or falsifying records for licensure purposes will constitute grounds for filing a complaint with the board of educational examiners.

282--14.10(272) Licenses. The following licenses will be issued effective August 31, 2001:

1. Initial.

2. Continuing.

3. Advanced.

4. Professional Administrator.

5. Conditional.

6. Substitute.

7. Area Education Agency Administrator.

282--14.11(272) Requirements for an initial license. An initial license valid for two years may be issued to an applicant who:

1. Has a baccalaureate degree from a regionally accredited institution.

2. Has completed a state-approved teacher education program which meets the requirements of the professional education core.

3. Has completed an approved human relations component.

4. Has completed the exceptional learner component.

5. Has completed the requirements for one of the basic teaching endorsements, the special education teaching endorsements, or the secondary level occupational endorsements.

6. Meets the recency requirement of 14.15"3."

Renewal requirements for this license will be developed.

282--14.12(272) Requirements for a continuing license. A continuing license valid for five years may be issued to an applicant who:

1. Completes items "1" to "5" listed under 282-- 14.11(272).

2. Shows evidence of successful completion of a state-approved induction program or an approved alternative option or two years' successful teaching experience based on a local evaluation process.

3. Meets the recency requirement of 14.15"3."

Renewal requirements for this license will be developed.

282--14.13(272) Requirements for an advanced teacher's license. An advanced teacher's license valid for eight years may be issued to an applicant who:

1. Is the holder of or eligible for a continuing license.

2. Verifies seven years of successful teaching experience, or six years if the applicant has completed an approved induction program.

3. Completes one of the following options:

* Master's degree in a recognized endorsement area, or

* Master's degree in curriculum, effective teaching, or a similar degree program which has a focus on school curriculum or instruction, or

* A planned 32-semester-hour graduate level program in an endorsement area or in instructional improvement, or

* A planned sequence of graduate level coursework tied to an endorsement earned through the National Board for Professional Teaching Standards.

Renewal requirements for this license will be developed.

282--14.14(272) Requirements for a professional administrator's license. A professional administrator's license valid for five years may be issued to an applicant who:

1. Is the holder of or eligible for a continuing license.

2. Has five years of teaching experience.

3. Has completed the requirements for an administrative endorsement.

Renewal requirements for this license will be developed.

282--14.15(272) Requirements for a one-year conditional license. A nonrenewable conditional license valid for one year may be issued to an individual under any one of the following conditions:

1. Professional core requirements. The individual has not completed all the required courses in the professional core, 14.23(4), "a" to "j."

2. Human relations component. The individual has not completed an approved human relations component.

3. Recency. The individual meets requirement(s) for a valid license, but has had fewer than 160 days of teaching experience during the five-year period immediately preceding the date of application or has not completed six semester hours of college credit from a recognized institution within the five-year period. To obtain the desired license, the applicant must complete recent credit and, where recent credits are required, these credits shall be taken in professional education or in the applicant's endorsement area(s).

4. Degree not granted until next regular commencement. An applicant who meets the requirements for a license with the exception of the degree, but whose degree will not be granted until the next regular commencement, may be issued a one-year conditional license.

5. Based on an expired Iowa certificate or license, exclusive of a conditional license. The holder of an expired license, exclusive of a conditional license or a temporary certificate, shall be eligible to receive a conditional license upon application. This license shall be endorsed for the type of service authorized by the expired license on which it is based.

6. Based on an administrative decision. The bureau of practitioner preparation and licensure is authorized to issue a conditional license to applicants whose services are needed to fill positions in unique need circumstances.

282--14.16(272) Requirements for a two-year conditional license. A nonrenewable conditional license valid for two years may be issued to an individual under the following conditions: If a person is the holder of a valid license and is the holder of one or more endorsements, but is seeking to obtain some other endorsement, a two-year conditional license may be issued if requested by an employer and the individual seeking this endorsement has completed at least two-thirds of the requirements leading to completion of all requirements for that endorsement.

282--14.17(272) Conditional special education license. Based on the amount of preparation needed to complete the requirements for the endorsement, a conditional special education license may be issued to an individual for a term of up to three years under the following conditions:

1. The individual is the holder of a valid license.

2. The individual has completed at least one-half of the credits necessary for a special education endorsement.

3. The employing school official makes written request supported by the respective area education agency special education officials.

4. The college/university outlines the coursework to be completed for the endorsement.

282--14.18(272) Conditional occupational and postsecondary licenses.

14.18(1) Conditional occupational license. A two-year conditional occupational license may be issued to an applicant who has not met all of the experience requirements for the provisional occupational license.

14.18(2) Conditional postsecondary license. A two-year conditional postsecondary license may be issued to an applicant who has not met all of the initial requirements for a provisional postsecondary license or holds the provisional or regular postsecondary license with an endorsement and is seeking an endorsement in another teaching field.

282--14.19(272) Requirements for a substitute teacher's license.

14.19(1) A substitute teacher's license may be issued to an individual who:

a. Has been the holder of, or presently holds, a license in Iowa; or holds or held a regular teacher's license or certificate in another state, exclusive of temporary, emergency, substitute certificate or license, or a certificate based on an alternative certification program.

b. Has successfully completed all requirements of an approved teacher education program and is eligible for the provisional license, but has not applied for and been issued this license, or who meets all requirements for the provisional license with the exception of the degree but whose degree will be granted at the next regular commencement.

14.19(2) A substitute license is valid for five years and for not more than 90 days of teaching during any one school year.

14.19(3) The holder of a substitute license is authorized to teach in any school system in any position in which a regularly licensed teacher was employed to begin the school year.

14.19(4) Renewal requirements for this license will be developed.

282--14.20(272) Two-year exchange license.

14.20(1) A two-year nonrenewable exchange license may be issued to an individual under the following conditions:

a. The individual has completed a state-approved teacher education program in a college or university approved by the state board of education or the state board of educational examiners in the home state which is party to the exchange certification agreement.

b. The individual holds a valid regular certificate or license in the home state party to the exchange certification agreement.

c. The individual is not subject to any pending disciplinary proceedings in the home state.

d. The applicant for the exchange license complies with all requirements with regard to application processes and payments of licensure fees.

14.20(2) Each exchange license shall be limited to the area(s) and level(s) of instruction as determined by an analysis of the application, the transcripts and the license or certificate held in the state in which the basic preparation for licensure was completed.

14.20(3) Each individual receiving the two-year exchange license will have to complete any identified licensure deficiencies in order to be eligible for an initial regular license in Iowa.

282--14.21(272) Licensure and authorization fee.

14.21(1) Issuance and renewal of licenses, authorizations, and statements of professional recognition. The fee for the issuance of each initial practitioner's license, evaluator license, statement of professional recognition, and coaching authorization and the renewal of each license, evaluator approval license, statement of professional recognition, and coaching authorization shall be $25.

14.21(2) Adding endorsements. The fee for the addition of each endorsement to a license, following the issuance of the initial license and endorsement(s), shall be $25.

14.21(3) Duplicate licenses, authorizations, and statements of professional recognition. The fee for the issuance of a duplicate practitioner's license, evaluator license, statement of professional recognition, or coaching authorization shall be $5.

14.21(4) Evaluation fee. Each application from an out-of-state institution for initial licensure shall include, in addition to the basic fee for the issuance of a license, a one-time nonrefundable $25 evaluation fee.

Each application or request for a statement of professional recognition shall include a one-time nonrefundable $25 evaluation fee.

14.21(5) One-year emergency license. The fee for the issuance of a one-year emergency license based on an expired conditional license or an expired administrative decision license shall be $50.

282--14.22(272) NCATE accredited programs. The requirements of the professional education core at subrule 14.23(4) notwithstanding, an applicant from an out-of-state institution who has completed a program accredited by the National Council for the Accreditation of Teacher Education on or after October 1, 1988, shall be recognized as having completed the professional education core set out in 14.23(4), with the exception of paragraph "m."

282--14.23(272) Requirements for an original teaching subject area endorsement. Following are the basic requirements for the issuance of a license with an endorsement.

14.23(1) Baccalaureate degree from a regionally accredited institution.

14.23(2) Completion of an approved human relations component.

14.23(3) Completion of the exceptional learner program, which must include preparation that contributes to the education of the handicapped and the gifted and talented.

14.23(4) Professional education core. Completed coursework or evidence of competency in:

a. Student learning. The practitioner understands how students learn and develop, and provides learning opportunities that support intellectual, career, social and personal development.

b. Diverse learners. The practitioner understands how students differ in their approaches to learning and creates instructional opportunities that are equitable and are adaptable to diverse learners.

c. Instructional planning. The practitioner plans instruction based upon knowledge of subject matter, students, the community, curriculum goals, and state curriculum models.

d. Instructional strategies. The practitioner understands and uses a variety of instructional strategies to encourage students' development of critical thinking, problem solving, and performance skills.

e. Learning environment/classroom management. The practitioner uses an understanding of individual and group motivation and behavior to create a learning environment that encourages positive social interaction, active engagement in learning, and self-motivation.

f. Communication. The practitioner uses knowledge of effective verbal, nonverbal, and media communication techniques, and other forms of symbolic representation, to foster active inquiry, collaboration, and support interaction in the classroom.

g. Assessment. The practitioner understands and uses formal and informal assessment strategies to evaluate the continuous intellectual, social, and physical development of the learner.

h. Foundations, reflection and professional development. The practitioner continually evaluates the effects of the practitioner's choices and actions on students, parents, and other professionals in the learning community, and actively seeks out opportunities to grow professionally.

i. Collaboration, ethics and relationships. The practitioner fosters relationships with parents, school colleagues, and organizations in the larger community to support students' learning and development.

j. Computer technology related to instruction.

k. Completion of prestudent teaching field-based experiences.

l. Methods of teaching with an emphasis on the subject and grade level endorsement desired.

m. Student teaching in the subject area and grade level endorsement desired.

14.23(5) Content/subject matter specialization. The practitioner understands the central concepts, tools of inquiry, and structure of the discipline(s) the practitioner teaches and creates learning experiences that make these aspects of subject matter meaningful for students.

This is evidenced by completion of a 30-semester-hour teaching major which must minimally include the requirements for at least one of the basic endorsement areas, special education teaching endorsements, or secondary level occupational endorsements.

282--14.24(272) Human relations requirements for practitioner licensure. Preparation in human relations shall be included in programs leading to teacher licensure. Human relations study shall include interpersonal and intergroup relations and shall contribute to the development of sensitivity to and understanding of the values, beliefs, life styles and attitudes of individuals and the diverse groups found in a pluralistic society.

14.24(1) Beginning on or after August 31, 1980, each applicant for an initial practitioner's license shall have completed the human relations requirement.

14.24(2) On or after August 31, 1980, each applicant for the renewal of a practitioner's license shall have completed an approved human relations requirement.

14.24(3) Credit for the human relations requirement shall be given for licensed persons who can give evidence thatthey have completed a human relations program whichmeets board of educational examiners criteria (see 282-- 14.27(272)).

282--14.25(272) Development of human relations components. Human relations components shall be developed by teacher preparation institutions. In-service human relations components may also be developed by educational agencies other than teacher preparation institutions, as approved by the board of educational examiners.

282--14.26(272) Advisory committee. Education agencies developing human relations components shall give evidence that in the development of their programs they were assisted by an advisory committee. The advisory committee shall consist of equal representation of various minority and majority groups.

282--14.27(272) Standards for approved components. Human relations components will be approved by the board of educational examiners upon submission of evidence that they are designed to develop the ability of participants to:

14.27(1) Be aware of and understand the values, life styles, history, and contributions of various identifiable subgroups in our society.

14.27(2) Recognize and deal with dehumanizing biases such as sexism, racism, prejudice, and discrimination and become aware of the impact that such biases have on interpersonal relations.

14.27(3) Translate knowledge of human relations into attitudes, skills, and techniques which will result in favorable learning experiences for students.

14.27(4) Recognize the ways in which dehumanizing biases may be reflected in instructional materials.

14.27(5) Respect human diversity and the rights of each individual.

14.27(6) Relate effectively to other individuals and various subgroups other than one's own.

282--14.28(272) Evaluation. Educational agencies providing the human relations components shall indicate the means to be utilized for evaluation.

These rules are intended to implement Iowa Code chapter 272.

ARC 8047A

Notice of Intended Action was published in the Iowa Administrative Bulletin on March 11, 1998, as ARC 7883A. Six public comments were received; all were favorable, with one making suggestions for minor changes. The adopted amendments are substantially similar to those published under Notice of Intended Action. Pursuant to comments received from the Administrative Rules Review Committee, a provision included as subrule 4.26(2) in the Notice is placed in separate rule 351--4.32(56,68B) in Item 6. Also, updated references to certain types of corporate resources, such as facsimile machines and computers, are inserted. The "safe-harbor" reimbursement rate for use of telephone banks is reduced from $5 to $3 per line per hour in subrule 4.26(3), and modification is made to the "safe-harbor" reimbursement rate for air travel to reflect comments received in subrule 4.26(4). The Ethics and Campaign Disclosure Board adopted these amendments on May 14, 1998.

Pursuant to the authority of Iowa Code sections 17A.3 and 68B.32A, the Iowa Ethics and Campaign Disclosure Board is amending, in Item 1, the title of the chapter to "Campaign Disclosure Procedures" to more accurately reflect the contents of the chapter, which is currently more general than the disclosure report requirements, as suggested by the current title. Item 2 breaks the chapter into divisions to allow for easier identification of rules within the chapter that relate to a particular area of interest. Items 3 and 4 renumber two rules from the end of the chapter to vacant positions earlier in the chapter to assist in breaking the chapter into subject matter divisions.

Item 5 amends the circumstances under which corporate entities may make property, goods and services available to candidates and political committees. The Board recognizes that it might unduly discourage participation in the political process if persons were not allowed the convenience of using corporate facilities to which they have access; in many communities, the only feasible but temporary access to a number of telephones for use as a telephone bank is in a corporate facility. The current statute does not distinguish between types of corporations or the general access to resources available in the corporate entity's community; the Board does not presume that it has the discretion to create distinctions in order to treat some corporate entities differently from others where the statute has not. To reconcile these conflicts, the proposed amendment would allow candidates and committees the convenience of using the corporate facilities, so long as there is no identifiable financial benefit conveyed from the corporation to the candidate or committee. This is accomplished by requiring reimbursement for the property, good or service at fair market value or the normal and usual charge; for example, requiring air travel be reimbursed at the coach class airfare or the usual charter rate. This reimbursement allows the convenience of the access to the corporate resource, while removing the financial benefit; the Board therefore views there to be no prohibited "contribution" of property or thing of value from the corporate entity. In recognition that while a corporate entity may not make political contributions, it does still have free speech rights, the proposal stipulates that the corporation need not provide equal access to the same property, goods or services to other candidates or committees. Further, "access" in and of itself has such an intangible worth that the Board concludes it is not the type of "thing of value" contemplated by the statute as subject to the prohibition. The amendment establishes "safe harbors" for certain activity: For telephone banks, reimbursement at $3 per telephone per hour, plus actual long distance charges, will be acceptable as a "normal and usual rental charge." Ten business days is established as an acceptable "commercially reasonable time" for reimbursement to the corporate entity. Where necessary, documentation to establish that a reimbursement was at fair market value or the normal and usual rental charge may be required.

Item 6 was subrule 4.26(2) in the Notice but is now adopted as 351--4.32(56,68B). In recognition that volunteer activity in campaigns should be encouraged, the rule allows "occasional, isolated, or incidental" use of corporate facilities for campaign purposes by stockholders, administrative officers and employees of a corporation. The Board recognizes that in practice these volunteers might incidentally or occasionally make or receive a campaign-related telephone call either to or from a corporate telephone, or make an isolated use of a corporate copying or facsimile machine while in a corporate facility. Any cost must also be reimbursed to the corporation.

A significant portion of the amendments closely parallel the federal rule (11 CFR SS114.9) implementing the federal statute (2 U.S.C. 441b) prohibiting corporate activity with regard to federal candidate elections.

These amendments are intended to implement Iowa Code section 56.15.

These amendments will become effective July 8, 1998.

The following amendments are adopted.

ITEM 1. Amend 351--Chapter 4, title, as follows:

ITEM 3. Renumber rule 351--4.30(56) as rule 351-- 4.21(56), and reserve 351--4.30.

ITEM 4. Renumber rule 351--4.32(56) as rule 351-- 4.20(56).

ITEM 5. Amend rule 351-4.26(56) as follows:

351--4.26(56) Purchase or rental corporate property Permitted activity--reimbursement required. The prohibitions against certain transactions between corporate entities and candidates or committees supporting or opposing candidates contained in Iowa Code section 56.15 and further delineated in rule 4.23(56) are not construed to prohibit activity which occurs consistent with this rule.

4.26(1) Purchase or rental of office facility. These rules do not prevent a A candidate's committee or other political committee which supports or opposes candidates from purchasing may purchase or renting rent property, goods or services belonging to a corporate entity for use as an office facility, so long as the purchase or rental is at fair market value, and no discount is offered or accepted that is not available to all members of the general public. For the purpose of this subrule, "fair market value" means the amount that a member of the general public would expect to pay to purchase or rent the same or substantially similar property within the community in which the property is located; if the same or substantially similar property would not be available to the general public within the community in which the property is located, the standard shall be that of the nearest community in which substantially similar property is available to the general public.

4.26(2) Use of corporate facilities to produce or mail materials. Any person who uses the facilities of a corporate entity to produce or mail materials in connection with a candidate election is required to reimburse the corporate entity within a commercially reasonable time for the normal and usual charge for producing or mailing such materials in the commercial market. For example, if it would otherwise cost 10 cents per page to have a brochure copied at a commercial printer, the corporate entity must be reimbursed at 10 cents per page even if the overhead and operating cost was only 5 cents per page. Likewise, the corporate entity must be reimbursed at the first-class mail rate even if the direct cost to the corporate entity is less through the use of its bulk mail permit. This subrule does not affect the ability of a commercial vendor to charge an amount for postage which is less than for first-class mail where the reduced or bulk mail charge is available to all similarly situated customers without respect to the political identity of the customer.

4.26(3) Use or rental of corporate facilities by other persons. Persons other than stockholders, administrative officers or employees of a corporate entity who make any use of corporate facilities, such as using telephones, facsimile machines, typewriters or computers or borrowing office furniture for activity in connection with a candidate election, are required to reimburse the corporate entity within a commercially reasonable time in the amount of the normal and usual rental charge. If one or more telephones of a corporate entity are used as a telephone bank, a rebuttable presumption is established that $3 per telephone per hour, plus any actual long distance charges, is acceptable as a normal and usual rental charge.

4.26(4) Use of airplanes and other means of transportation.

a. Air travel. A candidate, candidate's agent, or person traveling on behalf of a candidate who uses noncommercial air transportation made available by a corporate entity shall, in advance, reimburse the corporate entity as follows:

(1) Where the destination is served by regularly scheduled commercial service, the coach class airfare (without discounts).

(2) Where the destination is not served by a regularly scheduled commercial service, the usual charter rate.

b. Other transportation. A candidate, candidate's agent, or person traveling on behalf of a candidate who uses other means of transportation made available by a corporate entity shall, within a commercially reasonable time, reimburse the corporate entity at the normal and usual rental charge.

4.26(5) Equal access not required. For the purpose of this rule, it is not necessary that the corporate entity be in the business of selling or renting the property, good or service to the general public; further, it is not necessary that the corporate entity provide access to the same property, good or service to other candidates or committees.

4.26(6) Commercially reasonable time. For the purpose of this rule, a rebuttable presumption is established that reimbursement to the corporate entity within ten business days is acceptable as within a commercially reasonable time.

4.26(7) Documentation. A candidate's committee or other committee which supports or opposes candidates which obtains property, goods or services from a corporate entity which does not make that property, good or service available for purchase or rental to the general public shall at the time of the transaction obtain documentation to establish that the amount paid by the committee to the corporate entity accurately reflects the fair market value or the normal and usual charge for the property, good or service. This documentation shall be maintained as part of the committee's records which are required to be kept in accordance with Iowa Code section 56.3, and shall be provided to the board upon request by the board.

This rule is intended to implement Iowa Code section 56.15.

ITEM 6. Amend 351-Chapter 4 by adopting the following new rule.

351--4.32(56,68B) Use of corporate facilities for individual volunteer activity by stockholders, administrative officers and employees. Stockholders, administrative officers and employees of a corporate entity may, subject to the rules and practices of the entity, make occasional, isolated, or incidental use of the facilities of a corporate entity for individual volunteer activity in connection with a candidate election and will be required to reimburse the corporate entity only to the extent that the overhead or operating costs of the corporate entity are increased; however, the name or identity of the corporate entity shall not be utilized by the stockholder, administrative officer or employee for the direct or indirect purpose of influencing an election of a candidate. Reimbursement for increased overhead or operating costs shall be made within a commercially reasonable time as defined in subrule 4.26(6).

As used in this rule, "occasional, isolated, or incidental use" generally means:

4.32(1) When used by administrative officers or employees during working hours, an amount of activity during any particular work period which does not prevent the administrative officer or employee from completing the normal amount of work which that administrative officer or employee usually carries out during such work period; or

4.32(2) When used by stockholders other than administrative officers or employees during the working period, such use does not interfere with the corporation in carrying out its normal activities; but

4.32(3) Any such activity which does not exceed one hour per week or four hours per month, regardless of whether the activity is undertaken during or after normal working hours, shall be considered as occasional, isolated, or incidental use of the corporate facilities.

This rule is intended to implement Iowa Code section 56.15.

ARC 8049A

Notice of Intended Action was published in the Iowa Administrative Bulletin on March 11, 1998, as ARC 7882A. No public comments were received. The adopted amendments are identical to those published under Notice of Intended Action. The Ethics and Campaign Disclosure Board adopted this amendment on May 14, 1998.

The overall effort of these rules is to provide definition and enforcement for the existing provisions of Iowa Code section 56.13, which require that any person who makes an independent expenditure in support of or opposition to a candidate or ballot issue must provide a notice of that independent expenditure to the benefited candidate or committee. The statute also provides that independent expenditures which are not disavowed must be reported by the benefited candidate or committee as an in-kind contribution. Experience has indicated to the Board that this provision is frequently violated. Also, committees which are politically active and knowledgeable at the federal level frequently do not understand the distinctions in how federal law and Iowa law treat independent expenditures. Since the federal law contains contribution limits, an independent expenditure for a federal candidate loses its characteristic of "independence" if it is directly communicated to a benefited candidate. This would result in application of the federal contribution limit to the expenditure. To the contrary, since Iowa law does not have contribution limits, independent expenditures are required to be reported to the benefited committee as well as to the Board, and an opportunity is given to disavow the action rather than treat it as an in-kind contribution. In order to improve compliance with and understanding of the statute, the Board adopts these new rules, and in Item 1 creates a new division of Chapter 4 to set apart the rules on this issue.

Iowa Code chapter 56 does not actually define the terms "independent expenditure" or "in-kind contribution." Item 2 adopts a rule to set out the definitions of these terms as they historically have been functionally interpreted by the Board. A related definition for "express advocacy" is also set out which is and has been the Board's working interpretation. In addition, a definition is provided for determining when an expenditure is coordinated and not independent, because it was made with the knowledge and approval of the benefited committee.

The rule adopted in Item 3 restates the statutory requirement of notice of an independent expenditure. Detail is provided to clarify at what time a notice is delinquent and to clarify at what time during the process of making an expenditure the notice requirement is triggered. Examples of particular situations are provided. For consistency, a standard notice form containing the required information would be provided; the option is also provided for the use of another document so long as it contains all of the information on the Board-approved standard notice form.

Item 4 adopts a rule restating the statutory provision for disavowal of an expenditure by a candidate or committee. The statute indicates that failure to disavow creates a presumption that the expenditure is accepted as an in-kind contribution. The adopted rule clarifies that this is a rebuttable presumption; however, late disavowal will be reviewed by the Board on a case-by-case basis, and in order to be approved, the validity of the disavowal must be established by clear and convincing evidence.

The rule adopted in Item 5 addresses specific situations and questions which have been raised frequently, including how to treat generic political advocacy by a political party for its candidates (not an independent expenditure or an in-kind contribution) versus political party work for specific candidates (deemed to be coordinated and not independent, but reportable by the candidate as an in-kind contribution). Another specific question which has been asked by those familiar with the federal provisions for valuation of polls has been whether the same or similar schedule for valuation is followed in Iowa. The adopted rule provides definite guidance that the federal schedule will be acceptable.

Item 7 adopts a standard civil penalty assessment for routine resolution of violations found by the Board, similar to those for resolution of late filing violations of regular disclosure reports by candidates and political committees. The rule contemplates assessment of this routine penalty only against political committees (in-state or out-of-state), and not against individuals or other nonpolitical entities, as political committees as a whole do or should have better access to and awareness of the law through their greater political experience and resources, with most having direct communication with the Board office regarding the requirements of the law. Since the violation may not be discovered until some time after the violation has occurred, the penalty is not based upon the number of days late, but is rather a flat $25 amount per notice for a first violation and $50 for additional violations in a 12-month period. However, the penalty can escalate to $100 or $200, respectively, if the violation is not cured within ten days after the committee is notified of the violation.

These amendments are intended to implement Iowa Code section 56.13.

These amendments will become effective July 8, 1998.

The following amendments are adopted.

ITEM 1. Amend 351-Chapter 4 by adopting a new Division III title as follows:

351-4.33 to 4.99 Reserved.

351-4.100(56,68B) Express advocacy; in-kind contributions; independent expenditures--definitions. For the purposes of Iowa Code chapter 56 and this division, the following definitions apply.

4.100(1) Express advocacy. "Express advocacy" means communication that either:

a. Uses phrases such as "vote for the Governor," "re-elect your State Senator," "support the Democratic nominee," "cast your ballot for the Republican challenger for Iowa House seat 101," "Smith for County Auditor," "Jane Jones in '98," "vote Pro-Life" or "vote Pro-Choice" accompanied by a listing of clearly identified candidates described as Pro-Life or Pro-Choice, "vote `yes' for the cable franchise," "vote for the kids," "support the gambling referendum," "vote against Old Hickory," "vote `no' on the local option tax," "defeat" accompanied by a picture of one or more candidate(s), "defeat the referendum," "reject the incumbent," "reject gambling," or communications of campaign slogan(s) or individual word(s) or symbol(s), which in context can have no other reasonable meaning than to urge the election or defeat of one or more clearly identified candidate(s) or a ballot issue, such as posters, bumper stickers, or advertisements, which say "Branstad's the One," "Campbell '94," "Fitzgerald/Zimmerman," "Ray!," " [nu] New CityLibrary," "Float the Boat," or "limited reference to external events such as the proximity to the election, could only be interpreted by a reasonable person as containing advocacy of the election or defeat of one or more clearly identified candidate(s) or a ballot issue because:

(1) The electoral portion of the communication is unmistakable, unambiguous, and suggestive of only one meaning; and

(2) Reasonable minds could not differ as to whether it encourages action to elect or defeat one or more clearly identified candidate(s) or a ballot issue or encourages some other kind of action.

4.100(2) In-kind contribution. "In-kind contribution" or "contribution in-kind" means the provision of any goods or services to a committee without charge or at a charge which is less than the usual and normal charge for such goods or services. If goods or services are provided at less than the usual and normal charge, the amount of the in-kind contribution is the difference between the usual and normal charge for the goods or services at the time of the contribution and the amount charged the committee. "In-kind contribution" includes an expenditure which is made by a person with the knowledge and approval of a candidate or ballot issue committee, and includes an expenditure of which the candidate or ballot issue committee did not have knowledge until receipt of a notice of independent expenditure but for which the recipient committee failed to file a statement of disavowal and take corrective action as provided in rule 4.102(56,68B).

4.100(3) Independent expenditure. "Independent expenditure" means an expenditure by a person for goods or services, including express advocacy communication, on behalf of a candidate or a ballot issue which is not made with the knowledge and approval of a candidate or a ballot issue committee. "Independent expenditure" does not include incidental expenses (expenses of $25 or less per incident absorbed by the volunteer which result from or arise out of the volunteer work) incurred by an individual in performing volunteer work.

4.100(4) Coordinated expenditure. "Made with the knowledge and approval of a candidate or ballot issue committee" means that there has been arrangement, coordination, or direction by the candidate or an agent or officer of the candidate's committee or a ballot issue committee prior to the procurement or purchase of the good or service, or the publication, distribution, display, or broadcast of an express advocacy communication. This may also be referred to as a "coordinated expenditure." An expenditure will be presumed to be coordinated when it is:

a. Based on information provided to the expending person by the candidate, the candidate's committee, or the ballot issue committee with a view toward having an expenditure made; or

b. Made by or through any person who is or has been authorized to raise or expend funds; who is or has been an officer of the candidate's committee or the ballot issue committee; or who is or has been receiving any form of compensation or reimbursement from the candidate, the candidate's committee, or the ballot issue committee.

This rule is intended to implement Iowa Code section 56.13.

ITEM 3. Amend 351-Chapter 4 by adopting the following new rule 351-4.101(56,68B):

351-4.101(56,68B) Notice of independent expenditure required.

4.101(1) Action benefiting candidates: 24-hour notice required; form; when deemed delinquent. A person making an independent expenditure on behalf of one or more candidates shall provide notice of the independent expenditure to the board and to each benefited candidate within 24 hours of taking the action. The notice shall be on the notice form approved by the board or another document which contains all of the information on the board-approved form. A notice is considered delinquent if it is not received in the board office on or before the first day after the action is taken, or mailed bearing a United States Postal Service postmark dated on or before the first day after the action is taken, with extensions as necessary for holidays and Sundays.

4.101(2) Action benefiting ballot issue committees: 72-hour notice required; form; when deemed delinquent. A person making an independent expenditure on behalf of one or more candidates shall provide notice of the independent expenditure to the board and to each ballot issue committee advocating the same position with regard to the ballot issue as the person making the expenditure within 72 hours of taking the action. The notice shall be on the notice form approved by the board or another document which contains all of the information on the board-approved form. A notice is considered delinquent if it is not received in the board office on or before the third day after the action is taken, or mailed bearing a United States Postal Service postmark dated on or before the third day after the action is taken, with extensions as necessary for holidays and Sundays.

4.101(3) Determination of time of action requiring notice; proration and separate notice if benefit to more than one candidate. For the purpose of this division and Iowa Code section 56.13, the action of the independent expenditure is deemed to have been made at the time the person directly or indirectly relinquishes control over commencement of the activity. For example, in the case of a mailing, the reportable action occurs at the point the first piece of mail is placed into the United States postal system; in the case of a newspaper advertisement, the action is taken at the point the advertisement can no longer be deleted prior to distribution; in the case of television or radio advertising, the action is taken at its first airing; in the case of telephone solicitations for support (push) polling, the action is taken when the first telephone call is made; in the case of neutral opinion polling in which the only benefit to a specific candidate or ballot issue committee occurs when the results of the poll are provided to the candidate or ballot issue committee, the action is taken when the poll results are transmitted to the candidate or ballot issue committee. For activity which involves a course of conduct, all of the activity may be reported on the same notice; for example, if the same advertisement is published or broadcast over a period of time, the entire expenditure may be reported on the same notice. However, the description of the expenditure in the notice shall contain sufficient detail to determine the scope of the activity. If an expenditure benefits more than one candidate or ballot issue committee, the board and benefited candidates or ballot issue committees each shall be provided a separate notice; however, the amount of the expenditure shown on the notice may be prorated, so long as the description of the expenditure explains the basis upon which the proration was calculated.

This rule is intended to implement Iowa Code section 56.13.

ITEM 4. Amend 351-Chapter 4 by adding the following new rule 351-4.102(56,68B):

351-4.102(56,68B) Disavowal by candidate or ballot issue committee. A candidate or ballot issue committee may choose to disavow an independent expenditure by completing the statement of disavowal portion of the board-approved form or by another document which indicates the candidate's or ballot issue committee's disavowal of the action. The statement of disavowal shall be filed with the board if the candidate's or ballot issue committee's campaign disclosure reports are filed with the board, or with the county commissioner of elections (the county auditor) if the candidate's or ballot issue committee's campaign disclosure reports are filed with the commissioner. For a candidate, the disavowal shall be filed and the candidate shall take any other corrective action necessary within 72 hours after the candidate knows of the expenditure. For a ballot issue committee, the disavowal shall be filed and the committee shall take any other corrective action necessary within ten days of knowing of the expenditure. Failure to file a disavowal within the specified time results in a presumption that the expenditure is accepted and will be reported as an in-kind contribution; the presumption shall only be rebutted upon presentation of clear and convincing evidence by the candidate or ballot issue committee that the candidate or committee had no intent at the time the expenditure was made to approve or accept the benefit of the expenditure. Late disavowals shall be reviewed by the board on a case-by-case basis.

This rule is intended to implement Iowa Code section 56.13.

ITEM 5. Amend 351-Chapter 4 by adopting the following new rule 351-4.103(56,68B):

351-4.103(56,68B) Specific expenditure situations; valuation of polls.

4.103(1) Expenditures by statutory or slate political committee on behalf of specific candidates. For purposes of this division and Iowa Code chapter 56, an expenditure for goods or services, including express advocacy communication, made on behalf of one or more specific candidates by a statutory political committee or by a political committee established to support a nonpartisan slate of specific municipal or school board candidates (a "slate committee") is deemed to be a coordinated expenditure, not an independent expenditure subject to notice to the candidate(s) under Iowa Code section 56.13. However, the coordinated expenditure shall be prorated as necessary among the benefited candidates and shall be reported by the candidates as in-kind contributions. This includes support (push) or neutral opinion polls conducted or obtained with regard to the specific candidate(s).

4.103(2) Expenditures by statutory political committee for the generic benefit of all candidates of its political party. If an expenditure by a statutory political committee is for a good or service which generically benefits all candidates affiliated with the committee's political party, the statutory political committee shall report the expenditure on its disclosure reports, but because of the unique relationship created by statute between a party and its candidates, the expenditure is not considered to be an "independent expenditure" requiring notice to all candidates and it is not considered to be an "in-kind contribution" and therefore need not be reported by the candidates. This includes communication which generically advocates the support of all candidates affiliated with the political party of the statutory political committee without specifically identifying any of those candidates (e.g., "vote Republican," or "vote Democrat"), as well as support (push) or neutral opinion polls conducted or obtained for the use of the political party on behalf of all of its candidates and not with regard to specific candidates. An expenditure by a political party on behalf of specific candidates is an in-kind contribution which must be reported by the benefited candidates.

4.103(3) Expenditures by other political committees for the benefit of all candidates of a political party. If a political committee other than a statutory political committee makes an expenditure for a communication which advocates the support of all candidates affiliated with a specific political party, the expenditure is considered to be an independent expenditure under Iowa Code section 56.13 requiring notice to all candidates within the state nominated by that political party whose names will be on the ballot at the next general election after the expenditure. However, a political committee organized with the stated purpose of supporting candidates of a specific party within a particular county or congressional district is deemed to be making the expenditure in coordination with the party's candidates in that region; the prorated portion of the expenditure shall be reported by the candidates in that region as an in-kind contribution. A neutral opinion poll conducted or obtained solely for the internal use of the political committee is not an independent expenditure requiring notice.

4.103(4) Valuation of neutral opinion polls; public release. If a political committee, including a statutory political committee, provides the results of an opinion poll to a candidate's committee or to another political committee, including a statutory political committee, the value of the poll which shall be reported as the amount of the independent expenditure or in-kind contribution is the prorated fair market value of the poll as of the day the results are provided to the recipient committee. A method of valuation which may be used to determine the prorated fair market value is the formula approved by the Federal Elections Commission in 11 CFR SS106.4, as in effect on January 1, 1998, which takes into consideration factors such as how many committees are being provided with copies of the poll results and how many days have passed between the receipt of the poll results by the originating committee and its distribution to recipient committees. However, if prior to the provision to a recipient committee the results of an opinion poll have been made public without any request, authorization, prearrangement, or coordination by the recipient committee, provision of the poll results is not an independent expenditure or an in-kind contribution.

This rule is intended to implement Iowa Code section 56.13.

ITEM 6. Reserve rules 351-4.104 through 4.109.

ITEM 7. Amend rule 351--6.2(56) by adopting the following new subrule 6.2(6) and renumbering existing subrule 6.2(6) as subrule 6.2(7):

6.2(6) Late-filed notices of independent expenditure by political committees for candidate(s)--routine penalties. In routine resolution of apparent violations, the board shall administratively assess and collect monetary penalties against political committees which make an independent expenditure on behalf of one or more candidates with a prorated value of $50 or more per candidate, but are delinquent in filing the notice of independent expenditure as provided in Iowa Code section 56.13. A notice is considered delinquent if it is not received in the board office on or before the first day after the action is taken, or mailed bearing a United States Postal Service postmark dated on or before the first day after the action is taken, with extensions as necessary for holidays and Sundays. A flat late penalty of $25 shall be assessed for each late-filed notice arising from the first expenditure for which the committee is delinquent in filing notices in a 12-month period. A flat late penalty shall be $50 for each late-filed notice arising from additional expenditures by the same committee in the succeeding 12-month period. However, if the independent expenditure notice is not filed within ten days after notice of the delinquency is sent to the committee by the board, the amount of the late-filing penalty shall increase to $100 per notice for a first-time delinquency, or to $200 per notice for a repeat delinquency by the same committee within the 12-month period. An independent expenditure notice which is not filed within 45 days after the delinquency notice

is sent by the board shall be referred to as an extreme delinquency and shall be subject to the provisions of subrule 6.2(4).

ARC 8048A

Notice of Intended Action was published in the Iowa Administrative Bulletin on April 8, 1998, as ARC 7949A. No public comments were received. The adopted rule is identical to the rule published under Notice of Intended Action. The Ethics and Campaign Disclosure Board adopted this rule on May 14, 1998.

From at least 1973 to 1993, the Iowa Code provisions for the agency expressly prohibited the use of information in reports filed with the agency "by any person other than statutory political committees for the purpose of soliciting contributions or for any commercial purpose." See 1993 Iowa Code section 56.10(8). The same statute also required that "[u]pon receipt of payment, the [agency] shall mail copies of reports to persons requesting them." When the agency's functions were modified in 1993, this language was removed from Iowa Code chapter 56 and transferred, with some modification, to Iowa Code section 68B.32A(6). As a result of recent questions as to enforcement of these provisions, a review of the current Code language indicates that rather than being an outright prohibition and requirement, as existed prior to 1993, the language in section 68B.32A(6) is a directive that the Board have rules which "shall provide for the mailing of copies upon the request of any person and upon prior receipt of payment of the costs by the board, and shall prohibit the use of the information copied from reports and statements for soliciting contributions or for any commercial purpose by any person other than statutory political committees." The adopted rule accomplishes this by incorporating the prior statutory language into the rule. A definition of "soliciting contributions" is also included, modeled after the federal definition of "soliciting contributions" at 11 CFR SS104.15, arising from a substantially similar federal prohibition.

In addition, in order to better ensure compliance with the prohibition against the use of information for "solicitation or commercial purpose," the rule includes the current agency practice of not including individual identification of street or mailing address, including the ZIP code, on any information which is provided to any person in an electronic format. The address information is still a public record and would be available to any person in a hard-copy format.

Also to address the issue of compliance, the rule indicates that while actual names of individuals must be used to be in compliance with Iowa Code chapters 56 and 68B, a unique but true version of an individual's name may be used to assist in detecting misuses of information obtained from the reports. The Iowa statute does not contain an explicit provision such as the federal statute, which expressly allows limited use of actual pseudonyms (2 U.S.C. SS438(a)(4)). Since other provisions of Iowa Code chapters 56 and 68B require the reporting of true and accurate information, the Board does not believe that it has the discretion to allow the use of actual pseudonyms or false names without a statutory exception.

This rule is intended to implement Iowa Code section 68B.32A.

The rule will become effective July 8, 1998.

The following rule is adopted.

Rescind rule 351--5.10(22,56,68B) and insert in lieu thereof the following new rule:

351--5.10(22,56,68B) Availability of reports and information--copies provided; prohibitions.

5.10(1) Copying costs and fees. As provided by 351-- subrule 10.3(7), a price schedule for copying and mailing costs and fees shall be posted in the board office. The price schedule shall be reviewed by the board at least annually.

5.10(2) Mailing of copies. Upon receipt of payment of copying costs and mailing costs, the board shall mail requested copies of reports to any person.

5.10(3) Prohibited use. Information regarding individuals that is copied or otherwise obtained from reports and statements required under Iowa Code chapter 56 or chapter 68B shall not be used by any person other than statutory political committees for the purpose of soliciting contributions or for any commercial purpose. For the purpose of this rule, "soliciting contributions" includes soliciting any type of contribution or donation of money or something of monetary value, such as political or charitable contributions. The use of information which is copied or otherwise obtained from the reports and statements in newspapers, magazines, books or other similar communications is permissible as long as the principal purpose of such communications is not to communicate any individual information listed on such reports for the purpose of soliciting contributions or for other commercial purpose.

5.10(4) Information in electronic format. Copies of information from reports and statements required under Iowa Code chapter 56 or chapter 68B which are maintained by the board in an electronic database, and copies of statistical reports based upon the reports and statements which the board routinely compiles by computer, shall be provided upon payment of costs and fees. Unless there is a technical inability to transfer the information to disk, the requester may specify whether the information is provided in a paper or disk format. However, any information printed or electronically transferred from an electronic database or computer shall include only the name, city and state, and shall not include the street or mailing address, including the ZIP code, of any individual.

5.10(5) Protection. A committee or other person required to file a report or statement under Iowa Code chapter 56 or chapter 68B must use the actual names of all individuals required to be disclosed on those reports and statements. However, a committee or other person filing a report or statement may choose to report the names of up to ten individuals on each report in such a manner so as to facilitate detection of an illegal use of the information, for example, by using an individual's legal but not commonly known name, or by using a first initial and middle name with the last name. The committee or other person filing the report shall maintain a list of the name modifications used on the report, which shall be provided to the board upon request.

This rule is intended to implement Iowa Code section 68B.32A.

ARC 8036A

The Council on Human Services adopted these amendments May 13, 1998. Notice of Intended Action regarding these amendments was published in the Iowa Administrative Bulletin on April 8, 1998, as ARC 7909A.

These amendments incorporate revisions to the Individual Development Account (IDA) program mandated by theSeventy-sixth General Assembly in 1996 Iowa Acts, chapter 1106, division III, to clarify and simplify the accounting, rec-ord keeping, and administration of the program and provide modest IDA grants to IDA operating organizations, appropriated by the General Assembly for state fiscal year 1998.

IDAs are income-producing investment savings accounts established through an operating organization to help low-income Iowans accumulate assets and income for long-term goals. Any person whose family household income does not exceed 200 percent of the federal poverty level may have an IDA. Assets in accounts grow through deposits and matches contributed by individuals, charitable organizations, the operating organization, and the account holder. In addition, the state will provide annual formula-based savings matches on account holder deposits of up to $2,000 annually. Income earned on the account is tax-exempt.

In general, the amendments:

* Delete the requirement that withdrawals from an IDA be charged to the source of principal on a prorated basis. This type of complex accounting is usually only done by trust departments and is labor-intensive and costly.

* Eliminate penalties and trust requirements, including holding individual and charitable contributions in trust. The revision requires that any withdrawal of IDA funds (principal and income) shall only be for approved purposes and must be approved by the operating organization. The amendments also eliminate the opportunity for unapproved withdrawals. Current rules require that individual and charitable contributions be held in trust, a major barrier which enormously complicated the administration of the project.

* Eliminate the seven enumerated state saving refund levels in favor of three at a 5 percent higher level. The refund levels are a:

[zeta] 25 percent refund for household income at or below 150 percent of the federal poverty level.

[zeta] 20 percent refund for household income over 150 percent but below 175 percent of the federal poverty level.

[zeta] 15 percent refund for household income from 175 percent up to and including 200 percent of the federal poverty level. These refunds will have a negligible budgetary impact compared to the previous refund levels and are paid from the general fund by the Department of Revenue and Finance.

* Eliminate the requirement that the Department of Human Services shall ensure that the family income status of account holders at the time an account is opened proportionately reflects the distribution of the household income status of the state's population up to 200 percent of the federal poverty level.

* Eliminate state income tax deferral on income earned on principal in the IDA and substitute a state income tax exemption on income earned. This will have a negligible budgetary impact to the state, but greatly simplifies accounting and record keeping.

* Add two additional approved purposes for withdrawal of funds by the account holder: home improvements that add to the tax basis of the property and a one-time family medical emergency not to exceed 10 percent of the balance in the account.

* Provide authority to the operating organization to close an IDA for certain reasons, such as the wrongful withdrawal of funds, inactivity in the account, or noncompliance with the terms of an agreement that the account holder may have with the operating organization.

* Provide for transfer of the IDA account from one operating organization to another operating organization or to a new geographic location where there is an operating organization that has an agreement with a financial institution, in the event that the account holder moves to a new location in the state.

* Allow organizations to apply for financial grants at the time that they are responding to the Department's Request for Proposals to recruit and designate IDA operating organizations and allow the Department to offer financial grants through an application process to current IDA operating organizations. The General Assembly appropriated $50,000 for ten $5,000 grants for state fiscal year 1998.

These revisions were not submitted earlier, pending review of the possible inclusion of IDA TANF block grant provisions and IDA provisions initially considered in the 1997 federal tax reform act and in pending federal IDA legislation. The delay has not had any impact on IDA implementation in the local pilots, since the revised legislation was in full force.

These amendments are identical to those published under Notice of Intended Action.

These amendments are intended to implement Iowa Code chapter 541A.

These amendments shall become effective August 1, 1998.

The following amendments are adopted.

ITEM 1. Amend 441--Chapter 10, Preamble, as follows:

Iowa Code chapter 541A creates an investment account called the individual development account (IDA). These rules establish the policies and procedures governing IDAs.

The IDA is a tax-benefited means for an individual whose annual household income does not exceed 200 percent of the federal poverty level to accumulate assets and earnings on assets for long-term purposes. Withdrawal of funds from an individual's IDA is intended to be used for any or all of the following purposes: educational costs at an institution of higher learning, job training costs, purchase of a primary residence, and capitalization of a small business start-up, an improvement to a primary residence which increases the tax basis of the property, and emergency medical costs for the account holder or for a member of the account holder's family which is limited to a single withdrawal during the life of the account in an amount not to exceed 10 percent of the account balance at the time of the withdrawal. With some minor exceptions, withdrawals of funds for any other purpose are subject to penalty.

Contributions up to $2,000 made to an account by the individual are eligible for a state savings refund of 10 to 20 15 to 25 percent, based on income status. The refunds are paid by the department of revenue and finance and are deposited directly into the IDA. Individuals and nonprofit organizations may contribute to IDAs. Income earned on assets in an account are not subject to state income taxes until withdrawn.

Adults may transfer account assets to another individual's account without tax or penalty. There are restrictions pertaining to withdrawal or transfer Transfer of funds from a child's account is prohibited, and withdrawals must be for purposes approved by the operating organization.

For During the initial five-year pilot period beginning January 1, 1995, and ending December 31, 1999, the number of accounts permitted is limited to 10,000.

The department of human services shall administer the IDA program in partnership with local community organizations. The department will issue a request requests for proposals (RFP) for organizations to design local pilot IDAprojects and to assist with the operations of the accounts on behalf of target populations. Within the constraints of these rules and the enabling legislation, the local organizations shall have maximum flexibility to design an IDA project which best suits the needs of their local communities. Review criteria used to select local IDA operating organizations will include: safety and security of the investment mechanism, ability to link individual deposits with other services, performance requirements, matching funding for accounts, innovation and creativity in planning and implementation, reporting, and evaluation plans. The department shall approve the establishment of the local IDA pilot programs through an agreement with the selected operating organizations.

ITEM 2. Amend rule 441--10.1(541A) as follows:

Rescind the definition of "Adjusted account holder deposits."

Amend the definitions of "Federal poverty level" and "Operating organization" as follows:

"Federal poverty level" means the poverty income guidelines published in the established annually for a calendar year and published in the Federal Register by the United States Department of Health and Human Services.

"Operating organization" means an entity selected by the department for involvement in operating individual development accounts directed to a specific the eligible target population.

ITEM 3. Rescind and reserve subrule 10.2(7).

ITEM 4. Amend subrules 10.4(1), 10.4(4), and 10.4(5) as follows:

10.4(1) Eligibility based on household income level. Eligibility shall be based on the account holder's household income for the calendar year preceding the calendar year in which the account will open for the period beginning January 1, 1995, and ending December 31, 1999. The household income shall not exceed 200 percent of the federal poverty level as published in the year for which the household income is based. If an account holder's household income should exceed 200 percent of the federal poverty level in any subsequent year following the year that the account holder established the account, the account shall remain open, but the account holder shall not be eligible to receive deposits of charitable contributions, the state savings refund, or make a deposit in the account during the year following the year when the household income exceeds 200 percent of the federal poverty level. If the prospective account holder files an income tax return on a fiscal-year basis, the household income must be computed on a calendar-year basis.

10.4(4) Income tax deferred exempt on income not withdrawn from earned on principal in an IDA. Income earned on principal in an individual development account which is not withdrawn shall be exempt from state income tax deferred even if the account holder's household income is greater than 200 percent of the federal poverty level for the tax year.

10.4(5) State savings refunds. The operating organization shall determine the account holder's household income and account deposits on an annual basis for the purpose of computing the state savings refund. On behalf of the account holder, the operating organization shall file a claim by April 30 of the year following the year in which the account holder made deposits into the individual development account with the department for a state savings refund. The claim shall be filed on Form 470-3482, Certification for State Savings Refunds, provided by the department. Based on the claim which the department shall transmit to the department of revenue and finance, the department of revenue and finance shall make a payment of a savings refund on amounts of up to $2,000 per calendar year that an account holder deposits in the account holder's account. Moneys transferred to an individual development account from another account shall not be considered an account holder deposit for purposes of determining a savings refund. Payment shall be made directly to the account in the most appropriate manner as determined by the department. The state savings refund shall be the indicated percentage of the amount deposited in the calendar year as follows:

a. For an account holder with a household income which is less than 150 percent or less of the federal poverty level, 20 25 percent.

b. For an account holder with a household income which is more than 150 percent or more but less than 160 175 percent of the federal poverty level, 18 20 percent.

c. For an account holder with a household income which is 160 175 percent or more but less not more than 170 200 percent of the federal poverty level, 16 15 percent.

d. For an account holder with a household income which is 170 percent or more but less than 180 percent of the federal poverty level, 14 percent.

e. For an account holder with a household income which is 180 percent or more but less than 190 percent of the federal poverty level, 12 percent.

f. For an account holder with a household income which is 190 percent or more but less than 200 percent of the federal poverty level, 10 percent.

g d. For an account holder with a household income which is more than 200 percent or more of the federal poverty level, 0 percent.

ITEM 5. Amend rule 441--10.5(541A) as follows:

441--10.5(541A) Administration of the pilot phase initial period.

10.5(1) Scope of pilot phase initial period. For During the initial five-year pilot phase period beginning January 1, 1995, and ending December 31, 1999, the total number of IDAs shall be limited to 10,000 accounts to Iowans whose household income does not exceed 200 percent of the federal poverty level. Not more than 5,000 new accounts shall be established during the first opened in any one calendar year of the period.

10.5(2) Duties of the department. The department shall perform, contract out, or delegate to an appropriate entity all of the duties in the administration of IDAs as indicated below. The department shall:

a. Issue a request requests for proposals (RFP) for operating organizations to be involved with the operation of IDAs on behalf of specific target populations or eligible account holders generally. The RFP shall include Form 470-3483, Memorandum of Agreement, between the department and the operating organization, describing the responsibilities of both parties. The Memorandum of Agreement shall be signed, dated, and enclosed with other application materials by the operating organization when submitting its proposal in response to the RFP. The RFP may include an application for financial grants to provide funding to operating organizations for the administration and growth of IDAs. The application shall be submitted on Form 470-3481, Application Form for Individual Development Accounts (IDA) Incentive Grants. The department shall determine the review criteria used to select operating organizations based upon criteria indicated in rule 441--10.6(541A) and on any other criteria included in the RFP.

b. Ensure that the family income status of account holders at the time an account is opened proportionately reflects the distribution of the household income status of the state's population up to 200 percent of the federal poverty level.

c b. Contract for an independent evaluation of the implementation of the individual development accounts. The evaluation shall consider the following: implementation and process used for the implementation, program impact, and financial effectiveness.

ITEM 6. Amend rule 441--10.6(541A) as follows:

Amend the catchwords as follows:

441--10.6(541A) Request Requests for proposals--operation of IDAs.

Amend subrule 10.6(1), introductory paragraph and paragraphs "a," "b," and "c," as follows:

10.6(1) Review criteria used to evaluate and select proposals responding to the RFP requests for proposals (RFP). The department shall evaluate and select proposals submitted by operating organizations in response to the RFP based upon, but not limited to, the following criteria which shall be ongoing responsibilities of the operating organizations:

a. The project shall provide for a safe and secure investment mechanism for the individual development accounts utilizing a financial institution approved by the department.

This provision shall include assurances to contributors that a process will be put is in place to ensure that contributions will be used for approved purposes, as indicated herein, and that operating organizations and financial institutions will be protected from civil liability in the event of a fraudulent withdrawal of funds by an account holder in rule 441--10.7(541A).

For example, at the time a charitable or individual contributor contributes moneys to an individual development account, the contributor shall fill out and sign a form which provides directions for disposition of the contributed moneys which shall be removed from an individual development account because of excessive unauthorized withdrawals. The charitable or individual contributor shall also sign a waiver of liability form releasing the operating organization and financial institution, subject to the requirements of rule 441--10.7(541A), of civil liability and responsibility for the wrongful and fraudulent withdrawal of funds by the account holder.

In addition, upon compliance by the operating organization and financial institution with the requirements of rule 441--10.7(541A), IDA account holders who have transferred funds into another individual's IDA account and any beneficiaries of an IDA account shall hold sign a waiver of liability form releasing the operating organization and the financial institution free from civil liability and responsibility for the wrongful withdrawals of funds by the account holder due to the account holder's false representation of the purpose of the withdrawal, resulting in the loss to the account balance of deposited principal funds, including individual and charitable contributions, transferred funds, and the state savings refund.

b. The proposed project shall have a strong relationship to goals established by other initiatives deemed a priority by the department. These goals include postsecondary education and job training leading to self-sufficiency through employment, small business entrepreneurship, safe and decent housing, and strong and healthy families.

c. The proposed project shall link the making of an account holder's contributions to an individual development account with other services provided by or outcomes identified by the operating organization in the proposal. The proposed project shall include mechanisms for the operating organizations to monitor and enforce the identified outcomes and services.

Further amend subrule 10.6(1), paragraph "g," subparagraphs (2), (3), and (4), as follows:

(2) Certifying annually the income status of individual development account holders for purposes of establishing eligibility to hold an IDA and the amount of contributions to each individual development account by an account holder during the tax year which is eligible for the state savings refund, as provided for in subrule 10.4(5).

(3) Calculating Recording annually the adjusted contribution principal amounts for made by the account holder, the state, and individual and charitable contributors, and the state.

(4) Submitting information regarding individual development accounts and account holders to the department and the department of revenue and finance as requested and in the format specified.

Amend subrule 10.6(2) as follows:

10.6(2) Additional review criteria in the request for proposals. The department may issue additional review criteria in the request requests for proposals used to evaluate and select proposals by operating organizations for the IDA pilot phase project, including, but not limited to: ability to network with other agencies or to form a communitywide consortium of agencies, if desirable, to operate IDAs; ability to form an effective working relationship with banks or other financial institutions; and ability to fund-raise.

Amend subrule 10.6(3), introductory paragraph and paragraphs "a" and "c," as follows:

10.6(3) Other considerations and guidelines. Other considerations and guidelines in implementing IDAs during the pilot phase initial period are:

a. The department shall have authority to designate and limit the number of locations where the IDA pilot project projects shall be implemented, taking into account demographic characteristics and geographic considerations.

c. The department may establish criteria for and offer nonfinancial incentives, such as technical, marketing, and program operating assistance, to operating organizations selected in the RFP process financial grants through an application process to operating organizations previously selected through an IDA RFP process. The application shall be submitted on Form 470-3481, Application Form for Individual Development Accounts (IDA) Incentive Grants.

Further amend subrule 10.6(3) by rescinding paragraph "f" and adding the following new paragraphs "f" and "g":

f. Upon the termination of an operating organization's relationship with the financial institution holding the IDA accounts, the operating organization managing the accounts shall enter into a new agreement with a successor financial institution to hold the accounts and shall arrange for the transfer of the accounts to the new financial institution. The new agreement shall be subject to the department's review and approval.

g. If an account holder moves to another location in the state, which location is not served by the operating organization under whose management the IDA account was established but is served by a different operating organization managing IDA accounts, the original operating organization shall arrange for the transfer of the account to a financial institution which has an agreement with the operating organization serving in the new location where the account holder will reside. If there is no operating organization in the new location where the account holder has moved, the IDA account shall be closed, with funds in the account distributed to the account holder, or the operating organization and the account holder may jointly agree to maintain the account under the management of the existing operating organization and financial institution. The operating organization shall provide a written notification to the department of all transfers of IDA accounts to the management of a new operating organization.

ITEM 7. Amend rule 441--10.7(541A) as follows:

Amend subrule 10.7(1), introductory paragraph, as follows:

10.7(1) Approved purposes for withdrawal of funds from an IDA. An account holder may shall withdraw principal and income earned on principal from an individual development account with the written approval of the operating organization without penalty only for the following approved purposes:

Further amend subrule 10.7(1) by deleting the last unnumbered paragraph and adding the following new paragraphs "e" and "f":

e. An improvement to a primary residence which increases the tax basis of the property.

f. Emergency medical costs for the account holder or for a member of the account holder's family. However, a withdrawal for this purpose is limited to once during the life of the account and the amount of the withdrawal shall not exceed 10 percent of the account balance at the time of the withdrawal.

Amend subrule 10.7(2), introductory paragraph and paragraph "a," as follows:

10.7(2) Conditions on withdrawals of principal and interest income. An account holder may withdraw without penalty from the account holder's account the following sums under the following conditions:

a. If the account holder is an adult, any income earned on principal, without needing the approval of the operating organization. Any amount of principal or income earned on principal, provided the sum is authorized under subrule 10.7(1) and in accordance with the procedure for authorized withdrawals set forth under subrule 10.7(3).

Further amend subrule 10.7(2) by rescinding and reserving paragraphs "c" and "d."

Amend subrule 10.7(3) as follows:

10.7(3) Procedure for deposits by account holders and procedure for authorized withdrawals. All authorized withdrawals shall operate under the following procedure or another procedure agreed upon by the operating organization and financial institution to facilitate authorized withdrawals:

a. The account holder shall fill out and sign a deposit form, provided by the operating organization, indicating the amount and date of a deposit by the account holder into the IDA. The form shall be signed by the financial institution, with copies provided to the account holder and to the operating organization.

a b. The account holder shall fill out and sign a withdrawal form, provided by the operating organization, indicating the amount, date, and the purpose of the withdrawal. The form shall then be submitted to the operating organization or its designated agent for approval and signature. The operating organization shall retain a copy.

b. The withdrawal form shall be presented to the financial institution to implement the electronic transfer of the funds, or issuance of a check, payable to the account of the vendor as payment for an approved purpose for the withdrawal; or, if neither electronic transfer nor check issuance is not possible or is not cost-effective, then the financial institution shall issue a two-party payee check made out to the account holder and to the vendor on behalf of the approved purpose for the withdrawal. If the approved purpose is for capitalization of a small business, the check shall be payable to the account holder's business account at a financial institution and to the vendor requiring payment for providing the service or product relative to the account holder's business.

c. If the operating organization and the financial institution agree to procedures other than which vary from those indicated in the preceding paragraphs "a" and "b," those the agreed-upon procedures shall, at a minimum, meet the following criteria:

(1) All deposits of funds to and withdrawals of funds from IDA accounts shall be made with the knowledge of the operating organization.

(2) A clear and precise audit trail on the movement of funds shall be maintained.

(3) All withdrawals of principal funds shall require a signature of approval from the operating organization.

d. If withdrawals of funds are made by mistake, the financial institution shall notify the operating organization within five calendar days.

ITEM 8. Rescind rule 441--10.8(541A) and insert the following new rule in lieu thereof:

441--10.8(541A) Notice of nonapproved withdrawals and closure of the account.

10.8(1) Nonapproved withdrawals and attempted withdrawals for nonapproved purposes. The financial institution shall notify the operating organization of any withdrawals or attempted withdrawals which appear to be nonapproved. The financial institution shall refuse to release any funds which do not have the written authorization of approval from the operating organization. The operating organization shall review all withdrawals or attempted withdrawals and determine if any particular withdrawal or attempted withdrawal is authorized or not authorized as an approved purpose.

10.8(2) Closure of the individual development account. The operating organization may close an individual development account for any of the following reasons:

a. The account's operating organization determines that the account holder has withdrawn moneys from the account for a purpose not authorized by rule 441--10.7(541A) or that moneys have been withdrawn under false pretenses and have been used for purposes other than for the approved purposes indicated at the time of the withdrawal as stated in rule 441--10.7(541A).

b. The account's operating organization determines there has been no activity in the account during the preceding 12 months.

c. The account's operating organization determines that the account holder has not complied with terms of an IDA participation agreement between the account holder and the operating organization after being provided opportunities to comply with the agreement.

ITEM 9. Amend rule 441--10.9(541A) as follows:

441--10.9(541A) Transfers of assets of an account holder's individual development account.

10.9(1) Transfers by an adult account holder. An adult account holder may transfer all or part of the assets the adult account holder has deposited in the individual development account owned by that adult to any other account holder's individual development account.

10.9(2) No transfers of assets owned by an account holder who is not an adult. An account holder who is less than 18 years of age shall not transfer assets of the individual development account to any other account holder's individual development account. The account holder's guardian or parent shall not transfer assets of the individual development account to any other account holder's individual development account.

10.9(3) Limits on transfer of contributions. Moneys contributed by a charitable or individual contributor are not subject to transfer by an account holder except as authorized by the contributor.

10.9(4) Penalty excluded. Amounts transferred in accordance with this rule are not subject to penalty.

10.9(5) 10.9(3) Transfers when the owner of the account dies. In the event of an account holder's death, the account may be transferred to the ownership of a contingent beneficiary or to the individual development account of another account holder. An account holder shall name contingent beneficiaries or transferees at the time the account is established. A named beneficiary or transferee may be changed at the discretion of the account holder. If the named beneficiary or transferee is deceased or otherwise does not accept the transfer, the moneys shall be transferred to the reserve pool.

ARC 8031A

The Mental Health and Developmental Disabilities Commission adopted these amendments May 5, 1998. Notice of Intended Action regarding these amendments was published in the Iowa Administrative Bulletin on March 25, 1998, as ARC 7892A.

These amendments make the following changes in accreditation standards for providers of case management and community supported living arrangements, community mental health centers, and other mental health service providers:

* Accreditation for providers of multiple services shall be based on one survey for each organization with the accreditation award for all the services based on the lowest score. This is consistent with the way the Rehabilitation Accreditation Commission (CARF) conducts organizational surveys. This will also make better use of provider and Department time and money.

* A grandfather clause is added for supervisors of case management services. This will allow those supervisors who were deemed under the old standards and remained in continuous employment by the same case management provider to maintain their positions.

* The provisions for deemed status are liberalized. Deemed status may be granted when the Mental Health and Developmental Disabilities Commission determines that the accreditation is for similar services, rather than for the same services as current policy provides, and to providers who are certified under the provisions of the outcome-based certification pilot project.

These amendments are identical to those published under Notice of Intended Action.

These amendments are intended to implement Iowa Code chapter 225C.

These amendments shall become effective August 1, 1998.

The following amendments are adopted.

ITEM 1. Amend rule 441--24.1(225C), definitions of "Accreditation" and "Qualified case managers and supervisors," as follows:

"Accreditation" means the decision made by the commission that the provider has met the applicable standards. There will be one accreditation award for all the services based upon the lowest score of the services surveyed.

"Qualified case managers and supervisors" means persons who have the following qualifications: (1) a bachelor's degree in a human services field and at least one year of experience in the delivery of services to the population groups they serve, or (2) an Iowa license to practice as a registered nurse and at least three years of experience in the delivery of services to the population groups they serve. Persons employed as case management supervisors on or before August 1, 1993, who do not meet these requirements shall be considered to meet these requirements as long as they are continuously employed by the same case management provider.

ITEM 2. Amend rule 441--24.4(225C) as follows:

Amend subrule 24.4(1) as follows:

24.4(1) Organizations eligible for accreditation. The following organizations are accredited by the commission:

a. Case Providers of case management.

b. Community mental health centers.

c. Community Providers of community supported living arrangements.

d. Other Providers of other mental health service organizations services.

Amend subrule 24.4(2), paragraph "b," as follows:

b. Each of the services set forth in rule 441--24.3(225C) shall be reviewed if provided by the organization. A performance compliance level shall be determined for each benchmark based on the number of indicators present for that benchmark. The performance compliance level for the benchmark of each service provided shall have a potential total rating of 100 percent. Each indicator under a benchmark is assigned a percentage weight arrived at by dividing 100 percent by the number of indicators for the benchmark. The percentage compliance level for each benchmark is arrived at by adding the percentage weight for each indicator present.

Each of the services is an individually accredited entity with its own status; therefore, an average service rating score will not be determined. When a provider is accredited for more than one service under this division, staff shall conduct one survey for the organization. There shall be one accreditation award for all the services based upon the lowest score of the services surveyed. When an organization subcontracts with agencies to provide services, on-site reviews shall determine if each agency meets all the requirements in this division. When a provider subcontracts with more than one agency, the length of accreditation shall be determined individually.

Further amend subrule 24.4(2) by rescinding and reserving paragraph "c."

Amend subrule 24.4(3), introductory paragraph, as follows:

24.4(3) Categories of accreditation. The commission may issue one of five categories of accreditation for each organization and each of the services the organization provides.

ITEM 3. Amend rule 441--24.5(225C) as follows:

Amend rule 441--24.5(225C), introductory paragraph, as follows:

441--24.5(225C) Deemed status. The mental health and developmental disabilities (MH/DD) commission may grant deemed status to organizations accredited by a recognized national, not-for-profit, accrediting body when the commission determines the accreditation is for the same similar services. Deemed status for similar services shall also be granted to providers who are certified under 441--Chapter 24, Division II.

Amend subrule 24.5(1), paragraph "c," as follows:

c. Accreditation Council (AC) The Council on Quality and Leadership in Supports for People with Disabilities (The Council).

ARC 8037A

The Council on Human Services adopted these amendments May 13, 1998. Notice of Intended Action regarding these amendments was published in the Iowa Administrative Bulletin on March 25, 1998, as ARC 7893A.

These amendments make the following changes to the pilot project for certification of services for persons with mental retardation and developmental disabilities:

* The pilot is changed from two to three years to allow time to implement the standards statewide. Failure to change the pilot period to three years would require some providers to revert to previous standards for certification until the pilot can be implemented statewide. An additional year is needed to allow the University Affiliated Program and Iowa State University to finish gathering data and feedback on the pilot and to promulgate rules to implement the program statewide.

The pilot program thus far has been operating in six counties (Cherokee, Clinton, Fremont, Page, Story, and Taylor) which were not specified in rules. Jackson County is being added at the request of the central point of coordination in Jackson County and providers in Clinton and Cherokee counties which are part of a consortium of counties.

* The pilot is expanded to include services provided to persons with mental illness and brain injury. Currently the pilot covers only persons with mental retardation and it has been necessary to conduct two different surveys for providers if the provider serves both persons with mental retardation and persons with mental illness or brain injury. Expansion is proposed to avoid the need for two surveys.

* The list of organizations eligible to participate in the project is revised. Residential care facilities are removed from the list. These facilities are not geared to special populations, and the licensing completed by the Department of Inspections and Appeals for these facilities is for the environment only, not for services. Residential care facilities for persons with mental illness (RCF/PMI) are added to the list, as are providers of home- and community-based services for persons with brain injury.

* A definition of competitive employment is added at the request of the Division of Vocational Rehabilitation, which is a participant in the pilot. "Competitive employment" means work in the competitive labor market that is performed on a full-time or part-time basis in an integrated setting for which an individual is compensated at or above the minimum wage and at no less than the customary wage and level of benefits paid by the employer for the same or similar work performed by persons who are not disabled.

* The provisions for deemed status are liberalized. Deemed status may also be granted when providers are accredited by the Mental Health and Mental Retardation Commission.

* An explanation is added to clarify when consumer rights can be limited and what needs to be included in the service plan.

* Revisions are made to reflect experience gained thus far in the pilot and to match the certification process used in the pilot with that used in the certification process for home- and community-based mental retardation and brain injury providers as follows:

[zeta] Respite providers are only required to meet the Organizational Standards outcome and to participate in satisfaction surveys for recertification. Respite services are basic services that require some oversight, but conducting a full outcome-based survey is not an efficient use of the provider's or surveyor's time. Overseeing the providers' governance and participant satisfaction surveys would provide the necessary oversight.

[zeta] Two outcomes previously deleted are restored: The consumer's desire for intimacy shall be respected and supported, and the consumers shall have an impact on the services they receive.

[zeta] Corrective actions are allowed to be required when issuing a three-year certification with excellence.

[zeta] The certification process is revised to place a heavier emphasis on whether or not the processes are in place to help consumers obtain desired outcomes in determining the length of certification.

These amendments are identical to those published under Notice of Intended Action.

These amendments are intended to implement 1996 Iowa Acts, chapter 1213, section 3, subsection 12, and Iowa Code chapters 135C and 225C, and Iowa Code section 249A.4.

These amendments shall become effective August 1, 1998.

The following amendments are adopted.

ITEM 1. Amend 441--Chapter 24, Division II, heading and Preamble, as follows:

This two three-year pilot project establishes outcome-based standards for certifying the following organizations which serve persons with a mental illness, mental retardation, or developmental disabilities, or brain injury: residential care facilities for persons with mental retardation (RCF/MR); residential care facilities (RCF) which serve people with mental retardation residential care facilities for persons with mental illness (RCF/PMI); and providers of home- and community-based waiver services for persons with mental retardation (HCBS MR), home- and community-based waiver services for persons with brain injury (HCBS BI), community supervised living arrangements (CSLA), vocational services including group settings and supported employment placements, case management services, and respite services.

Notwithstanding the following, a consumer's choice is limited to services available through the approved county management plans pursuant to 441--Chapter 25, Division II. Likewise, a consumer's choice is limited to services available that the state or the department may offer.

ITEM 2. Amend rule 441--24.21(76GA,ch1213,135C, 225C,249A) by adding the following new definition in alphabetical order:

"Competitive employment" means work in the competitive labor market that is performed on a full-time or part-time basis in an integrated setting for which an individual is compensated at or above the minimum wage and at no less than the customary wage and level of benefits paid by the employer for the same or similar work performed by persons who are not disabled.

ITEM 3. Amend rule 441--24.22(76GA,ch1213,135C, 225C,249A) as follows:

441--24.22(76GA,ch1213,135C,225C,249A) Organizations to be certified. The following organizations are eligible to be certified to provide particular services: residential care facilities for persons with mental retardation (RCF/MR); residential care facilities (RCF) which serve persons with mental retardation residential care facilities for personswith mental illness (RCF/PMI); and providers of home- andcommunity-based waiver services for persons with mental retardation (HCBS MR), home- and community-based waiver services for persons with brain injury (HCBS BI), vocational services including group settings and supported employment placements, supported community living services, and case management services, and respite services. Respite services are required to meet Outcome 1 and participate in satisfaction surveys. Recommendation may be made at the end of the pilot project for an extension of certification to organizations that received three-year recommendations.

ITEM 4. Amend rule 441--24.23(76GA,ch1213,135C, 225C,249A) as follows:

Amend subrule 24.23(4), paragraph "b," subparagraphs (1) to (3), as follows:

(1) Three-year certification with excellence. An organization is eligible for certification with excellence if the number of outcomes present is 16 or higher, the number of processes present is 16 18 or higher, and the number of outcomes and corresponding processes present together are 14 is 12 or higher. All three Both criteria need to be met to receive three-year certification with excellence. No corrective action plan or follow-up monitoring is required. Corrective actions may be required which may be monitored through the assignment of follow-up monitoring either by written report, a plan of corrective actions and improvements, an on-site review, or the provision of technical assistance.

(2) Three-year certification with follow-up monitoring. An organization is eligible for this type of certification if the number of outcomes present is 15 or higher, the number of processes present is 15 17 or higher, and the number of outcomes and corresponding processes present together are 13 is 11 or higher. All three Both criteria need to be met to receive three-year certification with follow-up monitoring. Corrective actions are required which may be monitored through the assignment of follow-up monitoring either by written report, a plan of corrective actions and improvements, an on-site review, or the provision of technical assistance.

(3) One-year certification. An organization is eligible for this type of certification when the number of outcomes present is 13 or higher, the number of processes present is 13 14 or higher and the number of outcomes and processes together is 11 9 or higher. All three Both criteria need to be met to receive one-year certification. Corrective actions are required which may be monitored through the assignment of follow-up monitoring either by written report, a plan of corrective actions and improvements, an on-site review, or the provision of technical assistance. One-year certification may also be given in lieu of longer certification when previously required corrective actions have not been implemented or completed.

Amend subrule 24.23(5), paragraphs "a" and "b," as follows:

a. Deemed status is the acceptance of an outside body's review, assessment, and certification of a provider's functioning and services. Deemed status for similar services shall also be granted to providers who are accredited under 441--Chapter 24, Division I. When an organization has received certification by deemed status, the organization is still held responsible for meeting all applicable state laws.

b. Deemed status shall be granted to organizations certified by a recognized national, not-for-profit, certifying body, when the certification is for all of the services for which the organization is requesting certification from the department. The national certifying bodies currently recognized as meeting department criteria for deeming are: Joint Commission on Accreditation of Healthcare Organizations (JCAHO), Council on Accreditation of Rehabilitation Facilities (CARF), Accreditation Council (AC) The Council on Quality and Leadership in Supports for People with Disabilities (The Council), and Council on Accreditation of Services for Families and Children (COA). The certification credentials of these national bodies must specify the type of organization, programs, and services that they certify, and include targeted population groups, if appropriate. (For example, residential services programs serving consumers with mental retardation (MR), organizations providing case management services for consumers with mental retardation, and supported living services for consumers with MR.)

ITEM 5. Amend rule 441--24.24(76GA,ch1213,135C, 225C,249A) as follows:

Amend subrule 24.24(2) by relettering paragraph "q" as paragraph "s" and adding the following new paragraphs "q" and "r":

q. (Outcome 18) The consumers' desire for intimacy is respected and supported.

(1) Consumers receive education and support to learn about intimacy and sexuality.

(2) Consumers are supported in expressing their sexuality.

(3) Others recognize the consumers' need for intimacy.

r. (Outcome 19) Consumers have an impact on the services they receive.

(1) Consumers are free to express opinions.

(2) Consumers assist in the hiring, firing, and evaluation of staff.

(3) Consumers participate in the evaluation of the provider.

(4) Consumers have input into administrative decisions that affect their lives.

(5) Consumers' opinions are seriously considered in the development of change in services and supports.

Further amend subrule 24.24(2), relettered paragraph "s," as follows:

s. (Outcome 18 20) The consumer's living environment is reasonably safe in the consumer's home and community.

Renumber subrule 24.24(4) as subrule 24.24(5) and add the following new subrule 24.24(4):

24.24(4) Limitation of rights. Consumer rights can be limited only within the following guidelines:

a. The limit is based on an identified individual need.

b. Skill training is in place to meet the prioritized needs of the consumer as identified in the consumer's plan of service.

c. Periodic evaluation of the limit is conducted to determine continued need.

d. All limits on the consumer's rights shall be documented in the consumer's plan of service and approved by the consumer or the consumer's legal representative and the case manager, service worker, or other person the consumer has chosen for support per subparagraph 24.24(2)"f"(4).

Amend renumbered subrule 24.24(5), introductory paragraph, as follows:

24.24(5) Restriction of rights Use of restrictive procedures. The following are processes the organization must have in place to ensure consumer safety for Outcomes 5, 9, 10, 11, 12, 17, and 18 20 when restrictive procedures as set forth in rule 441--24.25(76GA,ch1213,135C,225C,249A) are used. Use of restrictive procedures, particularly restraints, is an extremely serious situation. Minimum standards must ensure safety of the consumer and protection of rights. When these standards are not met, the reviewer may require the restrictive procedure to immediately be discontinued. The organization shall be required to develop a safety plan that meets the procedures set forth in rule 441-- 24.25(76GA,ch1213,135C,225C,249A) to address the specific behavior or behaviors prior to implementing the restriction of rights.

ARC 8040A

The Council on Human Services adopted this amendment May 13, 1998. Notice of Intended Action regarding this amendment was published in the Iowa Administrative Bulletin on March 25, 1998, as ARC 7894A.

This amendment places the following additional nonprescription drugs under Medicaid coverage when ordered by a legally qualified practitioner: Diphenhydramine Hydrochloride Capsules 25 mg; Diphenhydramine Hydrochloride Liquid 6.25 mg/5 ml, 12.5 mg/5 ml; Guaifenesin 100 mg/5 ml with Dextromethorphan 10 mg/5 ml Liquid; Meclizine Hydrochloride Tablets 12.5 mg, 25 mg; Miconazole Nitrate Cream 2% Topical and Vaginal; Miconazole Nitrate Vaginal Suppositories, 100 mg; Salicylic Acid Liquid 17%; and Senokot Tablets, 187 mg for children aged 20 and under. In addition, 81 mg Enteric Coated Aspirin Tablets are added.

These nonprescription drugs are less costly alternatives to certain prescription drugs which are currently included under Medicaid coverage.

The last paragraph of subrule 78.1(2), paragraph "f," was revised at the request of the Medicaid Pharmacy Advisory Committee to provide an exception to the requirement that oral solid forms of the covered nonprescription drugs be dispensed in a minimum quantity of 100 units as some are not available in that package size.

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

This amendment shall become effective August 1, 1998.

The following amendment is adopted.

Amend subrule 78.1(2), paragraph "f," as follows:

f. The following nonprescription drugs are payable:

Aspirin Tablets 325 mg, 650 mg, 81 mg (chewable)

Aspirin Tablets, Enteric Coated 325 mg, 650 mg

Aspirin Tablets, Buffered 325 mg

Acetaminophen Tablets 325 mg, 500 mg

Acetaminophen Elixir 120 mg/5 ml

Acetaminophen Elixir 160 mg/5 ml

Acetaminophen Solution 100 mg/ml

Acetaminophen Suppositories 120 mg

Aspirin Tablets 325 mg, 650 mg, 81 mg (chewable)

Aspirin Tablets, Enteric Coated 325 mg, 650 mg, 81 mg

Aspirin Tablets, Buffered 325 mg

Bacitracin Ointment 500 units/gm

Benzoyl Peroxide 5%, Cleanser, Lotion, Cream, Gel

Benzoyl Peroxide 10%, Cleanser, Lotion, Cream, Gel

Chlorpheniramine Maleate Tablets 4 mg

Diphenhydramine Hydrochloride Capsules 25 mg

Diphenhydramine Hydrochloride Liquid 6.25 mg/5 ml, 12.5 mg/5 ml

Ferrous Sulfate Tablets 300 mg, 325 mg

Ferrous Sulfate Elixir 220 mg/5 ml

Ferrous Sulfate Drops 75 mg/0.6 ml

Ferrous Gluconate Tablets 300 mg, 325 mg

Ferrous Gluconate Elixir 300 mg/5 ml

Ferrous Fumarate Tablets 300 mg, 325 mg

Guaifenesin 100 mg/5 ml with Dextromethorphan 10 mg/5 ml Liquid

Meclizine Hydrochloride Tablets 12.5 mg, 25 mg

Miconazole Nitrate Cream 2% Topical and Vaginal

Miconazole Nitrate Vaginal Suppositories, 100 mg

Niacin (Nicotinic Acid) (Niacin) Tablets 25 mg, 50 mg, 100 mg, 250 mg, 500 mg

Pediatric Oral Electrolyte Solutions

Permethrin Liquid 1%

Pseudoephedrine Hydrochloride Tablets 30 mg, 60 mg

Pseudoephedrine Hydrochloride Liquid 30 mg/5 ml

Salicylic Acid Liquid 17%

Senokot Granules, 326 mg/tsp for children aged 20 and under

Senokot Tablets, 187 mg for children aged 20 and under

Sodium Chloride Solution 0.9% for inhalation with metered dispensing valve 90 ml, 240 ml

Tolnaftate 1% Cream, Solution, Powder

Nonprescription multiple vitamin and mineral products specifically formulated and recommended for use as a dietary supplement during pregnancy and lactation.

With prior authorization, nonprescription multiple vitamins and minerals under the conditions specified in subrule subparagraph 78.1(2)"a"(3).

Insulin.

Oral solid forms of the above covered items shall be prescribed and dispensed in a minimum quantity of 100 units per prescription or the currently available consumer package size except when dispensed via a unit dose system. When used for maintenance therapy, all of the above listed items may be prescribed and dispensed in 90-day quantities.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 6/3/98.

ARC 8041A

The Council on Human Services adopted this amendment May 13, 1998. Notice of Intended Action regarding this amendment was published in the Iowa Administrative Bulletin on March 25, 1998, as ARC 7895A.

This amendment requires that all nonregistered child day care home providers have criminal record checks and child abuse registry checks completed on the provider, anyone having access to a child when the child is alone, and any individual living in the home before the provider will be eligible to receive public funds.

The provider shall be required to complete Form 470-0643, Request for Child Abuse Information, and Form 595-1489, State of Iowa Non-Law Enforcement Record Check Request, Form A, for all applicable individuals. The forms may be obtained from the county office worker or the PROMISE JOBS worker, who will also be responsible for sending the forms to the Division of Adult, Children and Family Services after the forms are completed by the provider. A person who continues to provide child day care after evaluation and notification to stop is subject to penalty under Iowa Code section 237A.19 and injunction under Iowa Code section 237A.20.

The Seventy-seventh General Assembly mandated these record checks during the 1997 Iowa legislative session at Iowa Code Supplement subsection 237A.5(6). It is anticipated that this will result in approximately 3,000 additional record checks per year.

An agreement has been reached with the Department of Criminal Investigation to process the criminal record checks at a cost of $13 per last name checked. The payment process will be handled by Central Office and the fee will be paid by the Department.

This amendment is identical to that published under Notice of Intended Action.

This amendment is intended to implement Iowa Code Supplement subsection 237A.5(6).

This amendment shall become effective August 1, 1998.

The following amendment is adopted.

Amend subrule 170.4(3) by adding the following new paragraph "h":

h. Record checks for nonregistered family day care homes. If a nonregistered child day care provider, including a relative, wishes to receive public funds as reimbursement for providing child day care for eligible clients, the provider shall complete Form 470-0643, Request for Child Abuse Information, and Form 595-1489, State of Iowa Non-Law Enforcement Record Check Request, Form A, for the provider as though the provider either is being considered for registration or is registered to provide child day care, for anyone having access to a child when the child is alone, and anyone living in the home. The county office worker or thePROMISE JOBS worker shall provide the individual with the necessary forms. The provider shall return the forms to the county office or PROMISE JOBS worker for submittal to the division of adult, children and family services.

If there is a record of founded child abuse naming a non-registered child care provider, anyone having access to a child when the child is alone, or any individual living in the home of the nonregistered child care provider as being a perpetrator of child abuse, or a criminal conviction for any of the same individuals, the division shall notify the regional office to perform an evaluation following the process defined at 441--subrule 110.7(3) or rule 441--110.31(237A). If any of the individuals would be prohibited from registration, employment, or residence, the person shall not provide child day care and is not eligible to receive public funds to do so. The regional administrator or designee shall notify the applicant, and a copy of that notification shall be forwarded to the county attorney, the county office, and the PROMISE JOBS worker, if applicable. A person who continues to provide child day care in violation of this law is subject to penalty and injunction under Iowa Code chapter 237A.

ARC 8042A

These amendments revise policy to allow delivery offamily-centered nonrehabilitative treatment services to children who require services due to protective concerns but who do not have a rehabilitative treatment need that meets federal criteria for Medicaid funding. Children and families are currently receiving nonrehabilitative treatment services and parenting education interventions through the exception to policy process, wherein Department staff request an exception to policy from the Director of the Department of Human Services. These amendments will allow Department workers to approve family-centered treatment services for children with protective treatment needs, such as abuse, neglect, or risk of placement, after the Clinical Assessment and Consultation Team (CACT) has determined there is no rehabilitative treatment need.

The Council on Human Services adopted these amendments May 13, 1998.

These amendments were previously Adopted and Filed Emergency and published in the March 11, 1998, Iowa Administrative Bulletin as ARC 7854A. Notice of Intended Action to solicit comments on that submission was published in the March 11, 1998, Iowa Administrative Bulletin as ARC 7853A.

These amendments are identical to those published under Notice of Intended Action.

These amendments are intended to implement Iowa Code section 234.6.

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

The following amendments are adopted.

ITEM 1. Amend 441--Chapter 182, Preamble, first paragraph, as follows:

These rules define and structure the department of human services' family-centered nonrehabilitative treatment program and the family-centered supportive services program which consist of respite care and supervision services. The supportive services program which consists of respite care and supervision services is designed to work in combination with family-centered nonrehabilitative treatment services outlined in this chapter or the family-centered rehabilitative treatment services outlined in 441--Chapter 185, Division II, and treatment services provided through other funding sources, to make services available to families to prevent and alleviate child abuse and neglect and delinquency, to prevent out-of-home placements of children and to reunite families that have had children placed outside the home. These services promote family self-sufficiency by providing temporary assistance that supports and assists parents to maintain their children at home.

ITEM 2. Amend rule 441--182.1(234) as follows:

Amend the definitions of "Family-centered services," "Rehabilitative treatment services," and "Supervision services," as follows:

"Family-centered services" means services which utilize use a comprehensive approach to address the problems of individual family members within the context of the family. These services are adapted to the individual needs of a family in the intensity and duration of service delivery and are intended to improve overall family functioning. Family-centered services may consist of both combinations of nonrehabilitative treatment, rehabilitative treatment, and supportive services. Rules for nonrehabilitative treatment services are outlined in this chapter. Rules for family-centered rehabilitative treatment services are outlined in 441--Chapter 185, Division II.

"Rehabilitative treatment services service" means the individual and service types included in the service cores or levels of care. For family-centered, these are: therapy and counseling, family skill development, restorative living skills development, social skills development, and psychosocial evaluations means a service designed to restore a function or skill that the child lost or never gained as a result of an interference in the normal maturational and learning process due to an individual or a parental dysfunction. The child must have the capability to learn the function or skill. Rehabilitative treatment services address the specific medical and behavioral health needs of a child receiving family-centered family preservation, family foster care, or group care services.

"Supervision services" means the activities undertaken to provide the structured monitoring needed by a child and the child's family to utilize use and benefit from the rehabilitative treatment services defined in 441--Chapter 185, the nonrehabilitative treatment services outlined in this chapter, or treatment services provided through other funding sources such as private insurance, private payment, or Medicaid managed health care. These activities may include the following: behavior monitoring, oversight of family participation in services, monitoring of an individual's ability to adjust within the community, and guidance for the family to improve their adjustment. Service programs such as in-home supervision and detention that use a combination of direct family contact, collateral contacts with schools and service providers, and indirect behavioral monitoring contacts with the family are examples of supervision services.

Add the following new definition in alphabetical order:

"Nonrehabilitative treatment service" means a service that does not meet the definition of a rehabilitative treatment service and that is designed either to restore a skill or function or to teach a new skill or function to achieve maximum independence and functioning in activities of daily living. Nonrehabilitative treatment services include services to address the behavioral health needs of a child, behavioral health care and parenting education needs of a parent to meet the treatment, safety, or permanency needs of the child.

ITEM 3. Amend rule 441--182.2(234) as follows:

Amend subrule 182.2(1), introductory paragraph, as follows:

182.2(1) Eligibility for supportive services. Children shall be eligible for family-centered supportive services without regard to income when the department worker has determined there is a need for services, as evidenced by one of the following situations, and family-centered rehabilitative treatment services have been authorized in compliance with the procedures of rule 441--185.5(234), nonrehabilitative treatment services have been approved through procedures outlined in this chapter, or the department worker determines that comparable treatment services are being provided through another funding source. However, respite care services for families of MR/DD children, as defined in 441-- Chapter 180, Division I, may be provided as a family-centered supportive service with or without provision offamily-centered rehabilitative treatment or other treatment services.

Further amend rule 441--182.2(234) by adding the following new subrules:

182.2(3) Eligibility for nonrehabilitative family-centered treatment services. A child is eligible for nonrehabilitative family-centered treatment services when the child is at risk of abuse, neglect, delinquency or placement outside the home.

182.2(4) Required service authorization for nonrehabilitative family-centered services. The following procedures shall occur when a referral worker has determined that a child and family need family-centered services for a child at risk of abuse, neglect, delinquency or placement outside the home:

a. A referral shall be made to CACT in accordance with the procedures in rule 441--185.5(234) for determination of whether a rehabilitative behavioral health care treatment need exists. CACT will make the determination in accordance with the requirements of 441--subrule 185.5(4).

b. If CACT determines that the child has a rehabilitative behavioral health care treatment need, family-centered services shall be authorized as outlined in rule 441-- 185.5(234).

c. If CACT determines that the child does not have a rehabilitative behavioral health care treatment need for specific family-centered services and denies the request, the referral worker shall approve nonrehabilitative family-centered treatment services to address these nonrehabilitative needs, assist the family in selecting an appropriate provider, and notify the provider that the family-centered case was approved as a nonrehabilitative treatment case. The referral worker shall not approve family-centered nonrehabilitative treatment services for a longer duration than the one requested in the referral denied by CACT. The referral worker shall complete Form 470-3055, Referral of Client for Rehabilitative Treatment and Supportive Services, indicating services are approved with nonrehabilitative service need for a duration not to exceed 180 days, and forward a copy to the provider and a copy to the department when the referral worker is with juvenile court before services are provided to the child and family.

ITEM 4. Amend rule 441--182.4(234), introductory paragraph and subrule 182.4(2), as follows:

441--182.4(234) Time limits. The delivery of family-centered supportive services or nonrehabilitative treatment services shall not exceed six months from the date of initial provision of the respective family-centered supportive services except as provided in this rule.

182.4(2) Extensions. Nonrehabilitative treatment services may be extended if the referral worker again refers the case to CACT and CACT denies service because the child has no rehabilitative behavioral health care treatment need for these services. In these situations, the worker may approve the extension of services for a specific period of time, not to exceed six months per extension.

Supportive services may be extended following the caseworker's immediate supervisor's approval on Form 427-1021, Case Permanency Plan, Part D. Each extension shall be for a specified period of time not to exceed six months.

ITEM 5. Amend rule 441--182.5(234), introductory paragraph, and subrule 182.5(5), introductory paragraph, as follows:

441--182.5(234) Methods of service provision. All families receiving family-centered supportive or nonrehabilitative treatment services from either department employees or providers shall receive social casework from the department as defined in 441--Chapter 131. The department staff responsible for social casework shall assist the family in selecting a service provider or providers who are available and willing to deliver the approved supportive services.

182.5(5) Provider responsibilities. Each provider delivering family-centered nonrehabilitative treatment services shall meet the certification requirements in rule 441-- 185.10(234) and be certified as defined in rule 441-- 185.11(234). When a child's eligibility for treatment services is based on nonrehabilitative needs, the provider's treatment plan and treatment services shall describe and reflect the child and family's protective treatment needs, including the risk of abuse, neglect, delinquency or placement outside the home, and may include therapy, counseling, skill development and psychosocial evaluation services which may be directed at the parent to meet the child's safety, treatment, and permanency needs. The provider shall document the delivery of nonrehabilitative family-centered services in the child's treatment record and specify that these services are nonrehabilitative.

Each provider delivering one or more supportive services shall undertake the required service management activities as defined in rule 441--182.1(234) and shall adhere to the following guidelines:

ITEM 6. Amend rule 441--182.6(234) as follows:

441--182.6(234) Locations where family-centered services are delivered. Supportive Family-centered nonrehabilitative treatment and supportive services shall be delivered in whatever locations the department's social casework findings indicate are appropriate to ensure that all reasonable efforts are being made to meet the family's needs. When nonrehabilitative treatment or supportive services are provided to reunite families whose children have been placed outside their homes, the following conditions shall apply:

1. Service and case plans shall address the needs of the family as a unit.

2. The service goal shall be reunification.

3. Services provided shall include services provided away from the placement setting and involve family members not in placement.

This rule is intended to implement Iowa Code section 234.6.

ITEM 7. Amend rule 441--182.7(234), introductory paragraph, as follows:

441--182.7(234) Unit of service and service unit rates. The unit of service and service unit rates for family-centered treatment services shall be the same regardless of whether the child's treatment need is rehabilitative or nonrehabilitative. Family-centered Both family-centered treatment services and supportive services shall be provided through purchase of service contracts that follow the requirements and procedures of 441--Chapter 152. All members of a family shall collectively be considered one recipient of any unit of family-centered service except as provided in rule 441--180.6(234). One-half hour of service to the family or one or more of its members shall be considered one unit of service. Rules for family-centered rehabilitative treatment services are located in 441--Chapter 185, Division II. Providers of supervision services shall also have a contract to provide family-centered rehabilitative treatment services.

ITEM 8. Amend subrule 182.9(1) as follows:

182.9(1) Termination requirements. Supportive or nonrehabilitative treatment services not ordered by a court may be terminated at any time prior to, but no later than, six months from the initiation of service or the maximum service period allowed through extensions granted pursuant to subrule 182.4(2). Except for respite, supportive services shall be terminated when rehabilitative or nonrehabilitative treatment services, as defined in 441--Chapter 185 and this chapter respectively, or treatment services provided through another funding source are terminated.

ARC 8044A

These amendments update language to reflect current codes and standards of practice relating to construction in hospitals.

Notice of Intended Action was published in the Iowa Administrative Bulletin on February 25, 1998, as ARC 7845A. A public hearing was held on March 17, 1998. The adopted amendments are identical to those published under Notice except that the title of a publication was corrected in subrule 51.51(2), paragraph "a," and subrule 51.51(9). In addition, effective dates were inserted in Item 1 and the introductory paragraph of new rule 481--51.51(135B).

The Hospital Licensing Board approved the adoption of these amendments on February 25, 1998. The Board of Health approved the adoption of these amendments on May 13, 1998.

The amendments will become effective July 8, 1998.

These amendments are intended to implement Iowa Code chapter 135B.

The following amendments are adopted.

ITEM 1. Amend rule 481--51.50(135B), introductory paragraph, as follows:

481--51.50(135B) Minimum standards for construction after January 26, 1994, and prior to July 8, 1998. Hospitals and off-site premises licensed under this chapter shall be built in accordance with these construction requirements. These rules apply to plans approved by the state fire marshal or local authority having jurisdiction after January 26, 1994, and prior to July 8, 1998, for new construction, renovations, additions, functional alterations, or changes in utilization to existing facilities.

ITEM 2. Amend 481--Chapter 51 by adding the following new rule:

481--51.51(135B) Minimum standards for construction after July 8, 1998. Hospitals and off-site premises licensed under this chapter shall be built in accordance with these construction requirements. These rules apply to plans approved by the state fire marshal or local authority having jurisdiction after July 8, 1998, for new construction, renovations, additions, functional alterations, or changes in utilization to existing facilities.

51.51(1) Variances. Certain patient populations, conditions in the area, or the site may justify variances. In specific cases, variances to the rules may be granted by the director of the Iowa department of inspections and appeals after the following conditions are met:

a. The design and planning for the specific property shall offer improved or compensating features which provide equivalent desirability and utility;

b. Alternate or special construction methods, techniques, and mechanical equipment shall offer equivalent durability, utility, safety, structural strength and rigidity, sanitation, odor control, protection from corrosion, decay and insect attack, and quality of workmanship;

c. The health, safety or welfare of any patient shall not be endangered;

d. Variations are limited to the specific project under consideration and shall not be construed as establishing a precedent for similar acceptance in other cases;

e. Occupancy and function of the building shall be considered; and

f. Type of licensing shall be considered.

51.51(2) General requirements. Hospitals shall comply with the following guidelines and codes in the development of their building plans and construction of their facilities:

a. "Guidelines for Design and Construction of Hospital and Healthcare Facilities," 1996-97 edition, The American Institute of Architects Academy of Architecture for Health with assistance from the U.S. Department of Health and Human Services.

b. "The Model Energy Code," 1992 edition, Council of American Building Officials.

c. Special design considerations for persons with disabilities (patients, staff, and visitors) American National Standards Institute No. A117.1 and the Americans with Disabilities Act, Titles II and III.

d. State Building Code, 1997 edition.

51.51(3) Life safety. Facilities and construction shall be in accordance with National Fire Protection Association (NFPA) Standard 99 (Standards for Health Care Facilities--1996 edition), Standard 101 (Life Safety Code--1985 edition), and rules of local authorities. Facilities and construction shall be approved by the state fire marshal or local authority having jurisdiction.

51.51(4) Elevator requirements.

a. All facilities where either resident beds or other facilities for patients are not located on the first floor shall have electric or electrohydraulic elevators. The first floor is the floor first reached from the main front entrance.

b. Elevators shall comply with division of labor services rules as promulgated under Iowa Code chapter 89A and 347--Chapters 71 to 77.

51.51(5) Plumbing requirements. All plumbing and other pipe systems shall be designed and installed in accordance with the requirements of the Iowa Plumbing Code, 1996 edition, and applicable provisions of local ordinances.

51.51(6) Mechanical requirements. Steam and hot water heating and domestic water heating systems shall comply with division of labor services rules promulgated under Iowa Code chapter 89 and 875--Chapters 204 to 209.

51.51(7) Electrical requirements. All electrical and electronic systems shall comply with NFPA Standard 70 National Electrical Code, 1996 edition.

51.51(8) Radiology suite. The suite shall be designed and equipped in accordance with the following references:

a. National Council on Radiation Protection and Measurements Reports (NCRP), Nos. 33 and 49.

b. Iowa department of public health 641--Chapters 38 to 41.

51.51(9) Waste processing services--storage and disposal. In lieu of the waste processing service requirements in the "Guidelines for Construction and Equipment of Hospital and Healthcare Facilities" in paragraph 51.51(2)"a," space and facilities shall be provided for the sanitary storage and disposal of waste by incineration, mechanical destruction, compaction, containerization, removal or a combination of these techniques. These techniques must comply with the following environmental protection commission rules: rules 567-- 64.2(455B) and 64.3(455B); solid waste requirements of rules 567--101.1(455B,455D), 102.1(455B), 104.1(455B), and 567--Chapters 106, 118 and 119; and air quality requirements of 567--subrules 22.1(1) and 23.4(12).

51.51(10) Codes and standards. See 481--subrule 51.50(10).

ARC 8053A

These adopted amendments increase the biennial continuing education requirements for barbers to eight hours; change the period for reporting continuing education to coincide with the renewal period; allow continuing education credit for barbers that has been approved by the Iowa Board of Cosmetology Arts and Sciences; remove the requirement that at least one instructor of any continuing education activity be a barber; remove the requirement for sponsors of continuing education to report to the board following the presentation of a program; add a fee for change of location for a barber school; clarify requirements for posting of these rules; clarify requirements for posting of licenses and permits; clarify requirements for entrances and exits for shops in a residence; remove outdated language regarding barbers working in salons; clarify rules for sanitary conditions for schools and shops; remove restriction to practice if infected with a communicable disease; and allow for storing license records and inspections on computer software.

Notice of Intended Action was published in the Iowa Administrative Bulletin on February 25, 1998, as ARC 7847A. A public hearing was held March 19, 1998. No public comment was received.

The Board of Barber Examiners determined, at their April 28, 1998, meeting, that their intention of changing subrule 20.103(2) reducing the amount of time required for submitting application for prior approval of continuing education activities was inadvertently omitted from the Notice of Intended Action. The Board will not submit this amendment in a Notice of Intended Action as the change lessens the requirements for applicants of continuing education activities. Except for this change, the adopted amendments are identical to those published under Notice of Intended Action.

These amendments were adopted by the Board on April 28, 1998.

These amendments will become effective on July 8, 1998.

These amendments are intended to implement Iowa Code sections 147.76 and 158.15.

The following amendments are adopted.

ITEM 1. Amend subrule 20.101(1) as follows:

20.101(1) Beginning January 1, 1988, each Each person licensed to practice barbering in this state shall complete during each continuing education license renewal biennial period a minimum of six eight hours of continuing education approved by the board. Compliance with the requirement of continuing education is a prerequisite for license renewal in each subsequent biennial license renewal period beginning July 1 of each even-numbered year and ending June 30 of the next even-numbered year.

ITEM 2. Rescind and reserve subrule 20.101(2).

ITEM 3. Amend subrule 20.101(3) as follows:

20.101(3) Hours of continuing education credit may be obtained by attending and participating in a continuing education activity, either previously accredited by the board or the Iowa board of cosmetology arts and sciences or which otherwise meets the requirements herein and is approved by the board pursuant to 20.103(272C).

ITEM 4. Amend subrule 20.102(3) as follows:

20.102(3) It is conducted by individuals who have a special education, training, and experience by reason of which said individuals should be considered experts concerning the subject matter of the program, and is accompanied by a paper, manual or written outline which substantially pertains to the subject matter of the program. At least one instructor in the program must be a licensed barber. Except as may be allowed pursuant to 20.107(272C), no licensee shall receive credit exceeding 10 percent of the annual total required hours for self-study, including television viewing, video or sound-recorded programs, correspondence work, or research, or by other similar means as authorized by the board.

ITEM 5. Amend subrule 20.103(2) as follows:

20.103(2) Prior approval of activities. An organization or person other than an accredited sponsor, which desires prior approval of a course, program or other barbering education activity or who desires to establish accreditation of such activity prior to attendance thereat, shall apply for approval to the board at least 90 60 days in advance of the commencement of the activity on a form provided by the board. The board shall approve or deny such application in writing within 60 30 days of receipt of such application. The application shall state the dates, subjects offered, total hours of instruction, names and qualifications of speakers, and other pertinent information.

ITEM 6. Rescind and reserve rule 645--20.106(272C).

ITEM 7. Amend subrule 20.214(5) as follows:

20.214(5) Renewal or change of location of barber school license is $250.

ITEM 8. Amend rule 645--21.1(158) as follows:

645--21.1(158) Rules posted. The manager of each barbershop shall keep a copy of these rules (Chapter 21, "Sanitary Conditions for Barbershops and Barber Schools," Iowa Administrative Code) posted in a conspicuous place in the shop.

ITEM 9. Rescind rule 645--21.2(158) and adopt the following new rule in lieu thereof:

645--21.2(158) License. The original license, duplicate license or temporary permit, and the current renewal certifying that the practitioner is licensed or that the practitioner is a trainee certified by the board shall be visibly displayed for each licensee. Shop and school of barbering licenses along with the current renewal shall be posted visible to the public therein.

ITEM 10. Amend rule 645--21.4(158) as follows:

645--21.4(158) Quarters. Barbering shall not be practiced in a residence unless the shop is completely separated from living quarters by a solid permanent partition. A solid door leading to residence shall be permitted providing it remains closed during business hours except during ingress entering and egress leaving. An outside entrance shall be provided.

ITEM 11. Amend rule 645--21.5(158) as follows:

645--21.5(158) Quarters adjacent to other business. A barbershop located in a room adjacent to a food service estab-

lishment, tavern or grocery shall be in a completely separate room and doors between shall be rendered unusable except for emergencies. A barbershop may be operated in conjunction with a cosmetology establishment provided it meets all the requirements of the law pertaining to barbering.

ITEM 12. Rescind rule 645--21.7(158) and adopt the following new rule in lieu thereof:

645--21.7(158) Equipment.

21.7(1) Except as set forth in subrule 21.7(2), all styling and haircutting tools, instruments and equipment in a shop or a school of barbering which come in contact with a patron's hair, nails or skin, except those which come in contact with blood or body fluids, shall be sanitized before use on each patron by cleansing thoroughly with soap and hot water, and then be disinfected by complete immersion in an EPA-registered, hospital-grade, bactericidal, virucidal and fungicidal disinfectant that is mixed and used according to the manufacturer's directions, after which the tools and implements should be dried and placed in a closed cabinet. All tools and implements which have come in contact with blood or body fluids must be disinfected by complete immersion in an EPA-registered, hospital-grade and tuberculocidal disinfectant that is mixed and used according to the manufacturer's directions. Disinfected implements must be stored in a disinfected, dry, covered container. All germicidal solutions shall be labeled.

21.7(2) All metallic instruments shall be kept clean by wiping carefully after each use with cotton saturated with an approved disinfectant solution. It is recommended that the solution used with metallic instruments be an EPA-registered, hospital-grade, bactericidal, virucidal and fungicidal disinfectant that is mixed and used according to the manufacturer's directions which shall be kept at each occupied work station.

21.7(3) An EPA-registered, hospital-grade disinfecting agent shall be available for immediate use at all times a shop or barbering school is in operation.

21.7(4) A barbershop owner shall provide closed cabinets or drawers for the keeping of all tools and towels when they are not in use.

21.7(5) A barbershop owner shall provide a minimum of one washbasin or lavatory for every two barber chairs in use. The washbasins or lavatories shall be so situated that one is readily accessible to the operator of each barber chair.

ITEM 13. Rescind and reserve rule 645--21.14(158).

ITEM 14. Amend subrules 29.14(5) and 29.14(7) as follows:

29.14(5) Licensure records. These records contain information about the licensee including any or all of the following: transcripts, collected pursuant to Iowa Code section 147.19; application for licensure by examination, collected pursuant to Iowa Code sections 147.29 to 147.43; application for temporary permit, collected pursuant to Iowa Code section 158.4; birth certificates, collected pursuant to Iowa Code section 147.3; references, collected pursuant to Iowa Code section 147.3; past felony record, collected pursuant to Iowa Code section 147.3; high school graduation or equivalency records, collected pursuant to Iowa Code section 147.29; examination scores, collected pursuant to Iowa Code section 247.34; continuing education records, collected pursuant to Iowa Code section 272C.2. In the case of licensure by endorsement, the board collects verification of licensure by another board pursuant to Iowa Code section 147.47. This information is stored on paper, or microfilm only , or computer software.

29.14(7) Routine inspection reports. These records contain information about salons, shops and schools or whatever else is inspected by the board or agents of the board to determine compliance with applicable laws and rules. This information is stored on paper only or computer software.

ARC 8061A

This amendment will allow first responders to apply a cervical immobilization device.

Notice of Intended Action was published in the Iowa Administrative Bulletin on March 11, 1998, as ARC 7866A. The Iowa Department of Public Health held a public hearing over the Iowa Communications Network (ICN) on Tuesday, March 31, 1998, from 2 to 3 p.m. The proposed amendment was presented to Iowa's EMS training programs on April 7, 1998, and to the Iowa EMS Advisory Council on April 8, 1998. No comments were received prior to, during, or after the hearing. The amendment remains the same as published under Notice of Intended Action. The Iowa State Board of Health adopted this amendment on May 13, 1998.

This amendment is intended to implement Iowa Code chapter 147A.

This amendment will become effective July 8, 1998.

The following amendment is adopted.

Amend subrule 132.2(4) as follows:

132.2(4) Emergency medical care skills which may be performed if approved by the service program's medical director include:

a. At the FR and FR-D levels, skills identified in the United States D.O.T. FR curriculum, plus the following skills in which training can be documented:

(1) Automated defibrillation and external cardiac pacing (provided the pacing is part of an automated defibrillator device and requires no decision making by the FR and FR-D).

(2) Oral airway suctioning.

(3) Insertion of an oral or nasopharyngeal airway device.

(4) Oxygen administration.

(5) Endotracheal or esophageal intubation when using a blindly inserted, combined esophageal/endotracheal device approved by the department.

(6) Blood Taking blood pressure.

(7) Applying a cervical collar, when used to assist in maintaining manual stabilization.

b. to d. No change.

ARC 8058A

Notice of Intended Action was published in IAB, Volume XX, Number 21, on April 8, 1998, page 1829, as ARC 7946A.

Some confusion exists concerning when pest eradication services performed on property associated with or used in agricultural production are exempt from tax. To remedy this confusion, the applicable rule is amended to state that pest eradication performed in farmhouses, in outbuildings, and in other structures used in agricultural production is a taxable service.

This amendment is identical to that published under Notice of Intended Action.

This amendment will become effective July 8, 1998, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

This amendment is intended to implement Iowa Code section 422.43(11).

The following amendment is adopted.

Amend rule 701--26.45(422) as follows:

701--26.45(422) Termite, bug, roach, and pest eradicators. Persons engaged in the business of eradicating or preventing the infestation by termites, bugs, roaches, and all other living pests are rendering, furnishing, or performing a service, the gross receipts from which are subject to tax. Persons who eradicate, prevent, or control the infestation of any type of pest by means of spraying or other means are rendering, furnishing, or performing a service, the gross receipts from which are subject to tax. Included in the performance of this taxable service are persons who eradicate, prevent, or control pest infestations in farmhouses, in outbuildings (such as machine and livestock buildings) and in other structures (such as grain bins) used in agricultural production. However, persons who spray cropland used in agricultural production to eradicate or prevent infestation of the cropland by pests are performing a service which is not taxable. See 701--subrule 17.9(3) for a definition of "agricultural production."

ARC 8057A

Notice of Intended Action was published in IAB, Volume XX, Number 21, on April 8, 1998, page 1830, as ARC 7945A.

The amendments specify that net income for purposes of the minimum income filing requirement is the net income computed on the basis of current rules 701--40.1(422) to 701--40.52(422) as well as any subsequent rules that are promulgated in Chapter 40. This will ensure that all the rules that are pertinent to the computation of net income will be considered for purposes of the minimum income filing requirement.

The amendments correct a previous erroneous reference to another subrule in subrule 39.1(6). In addition, the amendments strike subrule 40.5(1) because this subrule is obsolete as the military income exemption in the rule was last effective in 1976. The amendments emphasize that a net operating loss carryforward for a nonresident taxpayer is deducted only from the individual's Iowa source income for the tax year to which the net operating loss is carried. The tax year in this amendment is revised to a more current tax year. The amendments delete obsolete information in rule 41.4(422) for the optional standard deduction. In this same rule, the amendments correct an erroneous reference to the rule for the cumulative standard deduction factor and clarify that a taxpayer's standard deduction may not exceed the income before this deduction. The amendments also correct an erroneous reference to another rule in the rule for the medical expense deduction limitation.

The amendments add paragraph "c" to subrule 43.4(2) for the political checkoff to the Iowa election campaign fund to denote how the checkoff is to apply for Iowa individual income tax returns for tax years beginning on or after January 1, 1986. This paragraph specifies how the political checkoff contributions for a tax year are to be allocated among political parties when there are two political parties shown on the Iowa income tax return for the tax year as well as how the contributions are to be allocated when there are more than two political parties shown on the return. This amendment reflects input from the Ethics and Campaign Disclosure Board.

The amendments revise the rule for quarterly withholding tax returns to delete an erroneous statement about not filing returns when no compensation is paid. The amendments revise the rule for monthly withholding tax returns to specify that a return is to be filed even if no withholding tax payment is due.

These amendments are identical to those published under Notice of Intended Action.

These amendments will become effective July 8, 1998, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

These amendments are intended to implement Iowa Code sections 56.18, 422.4, 422.5, 422.7, 422.9, 422.13 and 422.16.

The following amendments are adopted.

ITEM 1. Amend subrule 39.1(5) as follows:

39.1(5) Minimum income requirement. See rules 701-- 40.1(422) to 40.44(422,541A) 40.52(422) and any subsequent rules in Chapter 40 for the computation of net income to determine if a taxpayer meets the minimum filing requirements described in subrules 39.1(1), 39.1(2), and 39.1(3).

ITEM 2. Amend subrule 39.1(6) as follows:

39.1(6) Final return. If a taxpayer has died during the year, see 701--48.8(422). subrule 39.4(2)"d."

ITEM 3. Rescind and reserve subrule 40.5(1).

ITEM 4. Amend subrule 40.18(8), paragraph "b," Example "1," as follows:

EXAMPLE 1. A nonresident taxpayer had a net operating loss deduction of $11,800 for the 1982 1996 tax year. When the 1982 1996 Iowa return was filed, the taxpayer elected to carry the loss forward to the 1983 1997 tax year. The taxpayer's all source net income and Iowa source net income for 1983 1997 were as shown below. after considering the The net operating loss carryforward from 1982 1996 is deducted only from the Iowa source income for 1997:

Category	All Source Income	Iowa Source Income
Wages	$60,000	$20,000
Interest	3,000	0
Rental income	10,000	3,000
Farm income	25,000	25,000
Capital gain	2,000	2,000
Net operating loss carryforward	--	(11,800)
Iowa net income	$100,000	$38,200

The Iowa source income of $38,200 after reduction by the NOL carryforward is divided by the all source income of $100,000 which results in an Iowa income percentage of 38.2. This percentage is subtracted from 100 percent to arrive at the nonresident/part-year resident credit percentage of 61.8. When the tax after credit amount of $7,364 is multiplied by the nonresident/part-year credit percentage of 61.8, this results in a credit of $4,551. This credit is $869 greater than the nonresident/part-year credit of $3,682 would have been for 1983 1997 without application of the net operating loss deduction which was carried forward from 1982 1996.

ITEM 5. Amend rule 701--41.4(422), introductory paragraphs, as follows:

701--41.4(422) Optional standard deduction. An optional standard deduction is provided in on the Iowa individual income tax law return for both residents and nonresidents. Before determining the amount of the deduction, federal income tax payments, as adjusted in accordance with rule 41.3(422) must be subtracted from net income. In the case of returns for tax years beginning on or after January 1, 1979, but before January 1, 1987, where spouses file a joint return or individuals file as head of households or surviving spouses, the optional standard deduction is limited to 15 percent of net income after deduction of federal income tax, not to exceed $3,000. In the case of returns for tax years beginning on or after January 1, 1987, where spouses file a joint return or individuals file as head of households or surviving spouses, the optional standard deduction is limited to the lesser of $3,030 or the income remaining after the federal tax deduction.

For tax years beginning on or after January 1, 1979, but before January 1, 1987, individuals who file as single or married spouses who file separate returns, each may take the optional standard deduction of 15 percent of net income after deduction of federal income tax, not to exceed $1,200. For tax years beginning on or after January 1, 1987, individuals who file using the single filing status described in 701--subrule 39.4(1) or married taxpayers who file separate returns or separately on the combined return form, the optional standard deduction is limited to the lesser of $1,230 or the taxpayer's income remaining after the federal tax deduction. In the case of married taxpayers filing separate returns or separately on the combined return, if one spouse takes the optional standard deduction, the other spouse must also take the optional standard deduction. The standard deduction claimed by the taxpayer may not exceed the taxpayer's income before the standard deduction.

A taxpayer has the option of itemizing deductions or of using the optional standard deduction on the Iowa return, regardless of the deduction method used on the federal return.

For tax years beginning on or after January 1, 1990, the optional standard deduction amounts are indexed or increased for inflation by the cumulative standard deduction factor. The cumulative standard deduction factor is described in rule 701--38.11(422) 701--38.12(422).

ITEM 6. Amend subrule 41.5(8) as follows:

41.5(8) Medical expense deduction limitation. For tax years beginning on or after January 1, 1996, to the extent that a taxpayer has a medical care expense deduction on the federal return under Section 213 of the Internal Revenue Code, the taxpayer must compute the medical care expense deduction on the Iowa return by excluding those health insurance premiums deducted in computing net income in accordance with Iowa Code subsection 422.7(32) and rule 701-- 40.47(422) 40.48(422).

ITEM 7. Amend subrule 43.4(2) by adding the following new paragraph "c":

c. For tax years beginning on or after January 1, 1986, a person with a tax liability of $1.50 or more on the Iowa individual income tax return may direct or designate that a $1.50 contribution be made to a specific political party or that the contribution be made to the Iowa election campaign fund to be shared by all political parties as clarified further in this paragraph. In the case of married taxpayers filing a joint Iowa individual return with a tax liability of $3.00 or more, each spouse may direct or designate that a $1.50 contribution be made to a specific political party or that a $1.50 contribution be made to the Iowa election campaign fund as a contribution to be shared by all political parties. The designation or direction of a contribution to a political party or to the election campaign fund is irrevocable and cannot be changed on an amended return. The designation to a political party or the election campaign fund is allowed only after obligations of the taxpayer to the Iowa department of revenue and finance, the child support recovery unit, foster care recovery unit, public assistance overpayment, the college student aid commission, the district courts and other state agencies are satisfied and after designations of contributions to the Iowa fish and game protection fund are satisfied. Note that for purposes of this rule, "political party" means a party as defined in Iowa Code section 43.2.

In a tax year when there are two political parties for purposes of the Iowa election campaign fund, all undesignated contributions to the fund made on individual income tax returns for that tax year are to be divided equally between the two parties. In a tax year where there are more than two political parties for purposes of the Iowa election campaign fund, all undesignated contributions to the fund made on income tax returns for that tax year are to be divided among the political parties on the basis of the number of registered voters for a particular political party on December 31 of that tax year to the total number of registered voters on December 31 of that tax year that have declared an affiliation with any of the recognized political parties.

Thus, if there were 400,000 registered voters for "x" political party, 500,000 registered voters for "y" political party, and 100,000 registered voters for "z" political party on December 31 of a tax year where there were three recognized political parties, 40 percent of the undesignated political contributions on 1997 returns would be paid to "x" political party since 40 percent of the registered voters with an affiliation to a political party on December 31 had an affiliation with party "x" on that day.

ITEM 8. Amend subrule 46.3(3), paragraph "a," introductory paragraph and subparagraphs (1) and (2), as follows:

a. Returns of income tax withheld from ages wages.

(1) Quarterly returns. Except as otherwise provided in 46.3(3)"a"(3) or 46.3(3)"b," every withholding agent required to deduct and withhold tax on compensation paid for personal services in Iowa shall make a return for the first calendar quarter in which such tax is deducted and withheld and for each subsequent calendar quarter, whether or not compensation is paid therein, until a final return is filed. However, if a withholding agent has not paid compensation from which tax is to be deducted and withheld for five (5) consecutive quarters, the agent is not required to file a return for the fifth quarter nor for any subsequent successive quarters where no compensation is paid. The withholding agent's "Quarterly Withholding Return" is the form prescribed for making the return required under this paragraph. Monthly tax payments may also be required or semimonthly tax payments may be required instead of quarterly or monthly reports. See subparagraphs (2) and (3) of 46.3(3)"a." In some circumstances, only an annual return and payment of withheld taxes will be required; see 46.3(3)"c."

Payments shall be based upon the tax required to be withheld and must be remitted in full. Payment should not be deferred and should accompany the quarterly return.

A withholding agent is not required to list the name(s) of the agent's employee(s) when filing quarterly returns, nor is the withholding agent required to show on the employee's paycheck or voucher the amount of Iowa income tax withheld.

If a withholding agent's payroll is not constant, and the agent finds that no wages or other compensation was paid during the current quarter, the agent shall enter the word "none" on the return, sign, and submit the return as usual.

(2) Monthly reports. Every withholding agent required to file a quarterly withholding return shall also file a monthly tax payment form if the amount of tax deducted and withheld during any calendar month exceeds $50. A withholding agent need not needs to file a monthly form even if no monthly payment is due. No monthly form is required for the third month in any calendar quarter. The information otherwise required to be reported on the monthly form for the third month in a calendar quarter shall be reported on the quarterly return filed for that quarter and no monthly form need be filed for such month. The "Monthly Withholding Return" is provided for use with the payments required under this paragraph.

Previous Bulletin

Table of Contents

Next Bulletin

© 1998 Cornell College and League of Women Voters of Iowa

Comments about this site or page? lsbinfo@legis.state.ia.us.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Wed Jun 3 0:01:05 CDT 1998
URL: /Rules/1998/Bulletin/acb980603.html
sam