Pages 12 to 96 include ARC 9948A to ARC 9984A

Notice, Chronic wasting disease,
64.171 to 64.187 ARC 9980A 12

Schedule for rule making 4

Publication procedures 5

Administrative rules on CD–ROM 5

Agency identification numbers 10

CITATION OF ADMINISTRATIVE RULES 3

Filed Emergency After Notice, Juvenile crime
prevention community grant program;
reorganization of rules, chs 1, 3 to 5
ARC 9973A 59

Filed, Local housing assistance program,
28.5(5) ARC 9982A 85

Filed, Uniform waiver and variance rules,
ch 104 ARC 9981A 85

Filed Emergency After Notice, Restrictions
on pets, 8.4 ARC 9950A 64

Notice, FIP, Medicaid and SSA assistance;
PROMISE JOBS, amendments to chs 7, 9,
40 to 43, 45, 46, 93 ARC 9978A 14

Notice, FMAP–related Medicaid applicants and
recipients; CMAP–related medically needy
recipients, 75.1, 75.25, 75.50 to 75.52, 75.57,
76.2, 76.7, 76.10(2) ARC 9979A 20

Notice, Contraceptive coverage, 35.39, 71.14(6),
71.24, 75.10(4), 75.18 ARC 9983A 25

NULLIFICATION OF ADMINISTRATIVE
RULE 97

Notice, Qualifications—RNs teaching in
master’s programs, 2.6(2)“c” ARC 9960A 27

Notice, Issuance of investigatory or contested
case subpoenas, 4.3, 4.25 ARC 9961A 27

Notice, Identification badges, 6.2(5), 6.3(9)
ARC 9962A 28

Notice Terminated, Uniform waiver and
variance rules, ch 15 ARC 9963A 29

Notice, IPERS, 21.1, 21.4(3), 21.5 to 21.13,
21.16, 21.19(1), 21.22, 21.24, 21.30 to 21.32
ARC 9972A 29

Filed Emergency, IPERS, 21.1, 21.4(3), 21.5
to 21.13, 21.16, 21.19(1), 21.22, 21.24,
21.30 to 21.32 ARC 9971A 65

Notice, Payments to the department where a no
further action certificate has been issued, 11.9
ARC 9975A 31

Filed, Remedial claims, 11.1(3), 11.4(11)
ARC 9974A 88

Notice, Psychologists—examination fee and
discipline; continuing education, 240.10(2),
240.100 to 240.109, 240.212, ch 241
ARC 9984A 32

Summarized list 6

Notice, Fire safety for bed and breakfast inns,
5.800 to 5.810, 5.820 ARC 9970A 34

Notice, Fire service training bureau, ch 53
ARC 9964A 37

PUBLIC SAFETY DEPARTMENT[661](Cont’d)

Notice, Firefighter certification, ch 54
ARC 9965A 37

Notice, Volunteer emergency services provider
death benefits, ch 59 ARC 9966A 38

Filed Emergency, Fire service training bureau,
ch 53 ARC 9968A 75

Filed Emergency, Firefighter certification, ch 54
ARC 9969A 76

Filed Emergency, Volunteer emergency services
provider death benefits, ch 59 ARC 9967A 78

Notice, Occupational and vendor licensing;
simulcasting; jockey mount fee schedule,
4.7, ch 6, 8.1, 8.2(3), 8.4, 8.5, 10.4(2);
rescind chs 12, 13 ARC 9948A 38

Notice of electric and natural gas delivery tax rates
and municipal electric and natural gas transfer
replacement tax rates for each competitive
service area 50

Notice, Waiver or variance of certain department
rules, 7.60 ARC 9954A 52

Notice, Exempt sales of clothing and footwear
during two–day period in August, 20.12
ARC 9953A 55

Filed, Prescription and nonprescription drugs
and devices—taxation and exemption,
20.7 to 20.9 ARC 9959A 88

Filed Emergency, Exempt sales of clothing
and footwear during two–day period in August,
20.12 ARC 9952A 80

Filed, Application of related expense to allocable
interest, dividends, rents and royalties, 54.3,
54.9, 59.29 ARC 9955A 89

Filed, Regulations applicable to carriers, 520.1(1),
520.2, 520.3(1), 520.4(1), 520.6(1), 520.7, 520.8
ARC 9949A 89

Filed, School transportation services provided
by regional transit systems, ch 911
ARC 9951A 92

Notice 55

Notice, Natural gas marketer certification, 2.2,
19.13(6), 19.14 to 19.16 ARC 9976A 55

Filed, Review of fuel procurement practices,
20.13 ARC 9977A 94

Notice, Transportation expense—use of a
private auto, 8.1 ARC 9958A 58

Filed Emergency, Transportation expense—use
of a private auto, 8.1 ARC 9957A 83

Filed Emergency, Payroll tax tables, 8.8
ARC 9956A 84

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

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

__________________________________

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

It also contains Proclamations and Executive Orders of the Governor which are general and permanent in nature; Economic Impact Statements to proposed rules and filed emergency rules; Objections filed by Administrative Rules Review Committee, Governor or the Attorney General; and Delay by the Committee of the effective date of filed rules; Regulatory Flexibility Analyses and Agenda for monthly Administrative Rules Review Committee meetings. Other “materials deemed fitting and proper by the Administrative Rules Review Committee” include summaries of Public Hearings, Attorney General Opinions and Supreme Court Decisions.

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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

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To All Agencies:

The Administrative Rules Review Committee voted to request that Agencies comply with Iowa Code section 17A.4(1)“b” by allowing the opportunity for oral presentation (hearing) to be held at least twenty days after publication of Notice in the Iowa Administrative Bulletin.

Due to reorganization of state government by 1986 Iowa Acts, chapter 1245, it was necessary to revise the agency identification numbering system, i.e., the bracketed number following the agency name.

“Umbrella” agencies and elected officials are set out below at the left–hand margin in CAPITAL letters.

Divisions (boards, commissions, etc.) are indented and set out in lowercase type under their statutory “umbrellas.”

Other autonomous agencies which were not included in the original reorganization legislation as “umbrella” agencies are included alphabetically in small capitals at the left–hand margin, e.g., BEEF INDUSTRY COUNCIL, IOWA[101].

The following list will be updated as changes occur:

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]

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Soil Conservation Division[27]

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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]

ELDER AFFAIRS DEPARTMENT[321]

EXECUTIVE COUNCIL[361]

GENERAL SERVICES DEPARTMENT[401]

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 African–Americans, Division on the[434]

Status of Women Division[435]

HUMAN SERVICES DEPARTMENT[441]

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Employment Appeal Board[486]

Foster Care Review Board[489]

Racing and Gaming Commission[491]

State Public Defender[493]

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Appeal Board, State[543]

City Finance Committee[545]

County Finance Committee[547]

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Energy and Geological Resources Division[565]

Environmental Protection Commission[567]

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Preserves, State Advisory Board[575]

PERSONNEL DEPARTMENT[581]

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]

REGENTS BOARD[681]

Archaeologist[685]

REVENUE AND FINANCE DEPARTMENT[701]

Lottery Division[705]

SECRETARY OF STATE[721]

TRANSPORTATION DEPARTMENT[761]

Railway Finance Authority[765]

TREASURER OF STATE[781]

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Labor Services Division[875]

Workers’ Compensation Division[876]

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

Pursuant to the authority of Iowa Code sections 159.5(11) and 163.1, the Department of Agriculture and Land Stewardship gives Notice of Intended Action to amend Chapter 64, “Infectious and Contagious Diseases,” Iowa Administrative Code.

These proposed rules are intended to implement a voluntary chronic wasting disease (CWD) surveillance program for Cervidae. The surveillance program is being adopted at the request of the Iowa Elk Breeders Association. Chronic wasting disease (CWD) is a form of transmissable spongiform encephalopathy that is fatal to Cervidae. Numerous states have developed voluntary and mandatory surveillance programs, and many states have import restrictions for Cervidae originating in states without a surveillance program. Cervidae as defined in these proposed rules means elk, red deer, fallow deer, sika deer, and related species and hybrids of these species.

Any interested person may make written suggestions or comments on the following proposed rules prior to 4:30 p.m. on August 1, 2000. Such written material should be directed to Dr. John Schiltz, State Veterinarian, Animal Industry Bureau, Department of Agriculture and Land Stewardship, Wallace State Office Building, Des Moines, Iowa 50319. Comments can also be submitted by fax to (515)281–4282 or by E–mail to John.Schiltz@idals.state.ia.us.

These rules are intended to implement Iowa Code chapter 163.

The following amendment is proposed.

Amend 21—Chapter 64 by adopting the following new rules:

21—64.171(163) Definitions. Definitions used in rules 64.171(163) through 64.187(163) are as follows:

“Accredited veterinarian” means a veterinarian approved by the deputy administrator of veterinary services, Animal and Plant Health Inspection Service (APHIS), United States Department of Agriculture (USDA), and the state veterinarian in accordance with Part 161 of Title 9, Chapter 1 of the Code of Federal Regulations, revised as of January 1, 2000, to perform functions required by cooperative state/federal animal disease control and eradication programs.

“Adjacent herd” means one of the following:

1. A herd of Cervidae occupying premises that border an affected herd, including herds separated by roads or streams.

2. A herd of Cervidae occupying premises that were previously occupied by an affected herd within the past four years as determined by the designated epidemiologist.

“Affected cervid herd” means a cervid herd from which any animal has been diagnosed as affected with CWD and which has not been in compliance with the control program for CWD as described in rules 64.171(163) through 64.187(163).

“Approved laboratory” means an American Association of Veterinary Laboratory Diagnosticians (AAVLD) accredited laboratory or the National Veterinary Services Laboratory, Ames, Iowa.

“Certificate” means an official document, issued by a state veterinarian or federal animal health official or an accredited veterinarian at the point of origin, containing information on the individual identification of each animal being moved, the number of animals, the purpose of the movement, the points of origin and destination, the consignor, the consignee, and any other information required by the state veterinarian.

“Certified CWD cervid herd” means a herd of Cervidae that has met the qualifications for and has been issued a certified CWD cervid herd certificate signed by the state veterinarian.

“Cervidae” means elk, red deer, fallow deer, sika deer, and related species and hybrids of these species.

“Cervid CWD surveillance identification program” or “CCWDSI program” means a CWD surveillance program that requires identification and laboratory diagnosis on all deaths of Cervidae over 18 months of age including, but not limited to, deaths by slaughter, hunting, illness, and injury. A copy of approved laboratory reports shall be maintained by the owner for purposes of completion of the annual inventory examination for recertification. Such diagnosis shall include examination of brain and any other tissue as directed by the state veterinarian. If there are deaths for which tissues were not submitted for laboratory diagnosis due to postmortem changes or unavailability, the department shall determine compliance.

“Cervid dealer” means any person who engages in the business of buying, selling, trading, or negotiating the transfer of Cervidae, but not a person who purchases Cervidae exclusively for slaughter on the person’s own premises or buys and sells as part of a normal livestock production operation.

“Cervid herd” means a group of Cervidae or one or more groups of Cervidae maintained on common ground or under common ownership or supervision that are geographically separated but can have interchange or movement.

“Cervid herd of origin” means a cervid herd, or any farm or other premises, where the animals were born or where they currently reside.

“Chronic wasting disease” or “CWD” means a transmissible spongiform encephalopathy of cervids.

“CWD affected” means a designation applied to Cervidae diagnosed as affected with CWD based on laboratory results, clinical signs, or epidemiologic investigation.

“CWD exposed” or “exposed” means a designation applied to Cervidae that are either part of an affected herd or for which epidemiological investigation indicates contact with CWD affected animals or contact with animals from a CWD affected herd in the past four years.

“CWD suspect” means a designation applied to Cervidae for which laboratory evidence or clinical signs suggest a diagnosis of CWD but for which laboratory results are inconclusive.

“Designated epidemiologist” means a veterinarian who has demonstrated the knowledge and ability to perform the functions required under these rules and who has been selected by the state veterinarian.

“Group” means one or more Cervidae.

“Individual herd plan” means a written herd management and testing plan that is designed by the herd owner, the owner’s veterinarian, if requested, and a designated epidemiologist to identify and eradicate CWD from an affected, exposed, or adjacent herd.

“Monitored CWD cervid herd” means a herd of Cervidae that is in compliance with the CCWDSI program as defined in this rule. Monitored herds are defined as one–year, two–year, three–year, and four–year monitored herds in accordance with the time in years such herds have been in compliance with the CCWDSI program.

“Official cervid CWD test” means an approved test to diagnose CWD conducted at an official laboratory.

“Official cervid identification” means a USDA–approved identification ear tag that conforms to the alphanumeric national uniform ear tagging system as defined in 9 CFR Part 71.1, Chapter 1, revised as of January 1, 2000.

“Permit” means an official document that is issued by the state veterinarian or USDA area veterinarian–in–charge or an accredited veterinarian for movement of affected, suspect, or exposed animals.

“Quarantine” means an imposed restriction prohibiting movement of cervids to any location without specific written permits.

“State” means any state of the United States; the District of Columbia; Puerto Rico; the U.S. Virgin Islands; or Guam.

“Traceback” means the process of identifying the herd or origin of CCWDSI–positive animals, including herds that were sold for slaughter.

21—64.172(163) Supervision of the Cervidae CWD program. The state veterinarian’s office will conduct an annual inventory of Cervidae in a herd enrolled in the CCWDSI program.

21—64.173(163) Surveillance procedures. For cervid herds enrolled in this voluntary certification program, surveillance procedures shall include the following:

64.173(1) Slaughter establishments. All slaughtered Cervidae over 18 months of age must have brain tissue submitted at slaughter and examined for CWD by an approved laboratory. This brain tissue sample will be obtained by a state or federal meat inspector or accredited veterinarian on the premises at the time of slaughter.

64.173(2) Cervid herds. All cervid herds must be under continuous surveillance for CWD as defined in the CCWDSI program.

21—64.174(163) Official cervid tests. The following are recognized as official cervid tests for CWD:

1. Histopathology.

2. Immunohistochemistry.

3. Western blot.

4. Negative stain electron microscopy.

5. Bioassay.

6. Any other tests performed by an official laboratory to confirm a diagnosis of CWD.

21—64.175(163) Investigation of CWD–affected animals identified through surveillance. Traceback must be performed for all animals diagnosed at an approved laboratory as affected with CWD.

All herds of origin and all adjacent herds having contact with affected animals as determined by the CCWDSI program must be investigated epidemiologically. All herds of origin, adjacent herds, and herds having contact with affected animals or exposed animals must be quarantined.

21—64.176(163) Duration of quarantine. Quarantines placed in accordance with these rules shall be removed as follows:

1. For herds of origin, quarantines shall be removed after four years of compliance with rules 64.171(163) through 64.187(163).

2. For herds having contact with affected or exposed animals, quarantines shall be removed after four years of compliance with rules 64.171(163) through 64.187(163).

3. For adjacent herds, quarantines shall be removed as directed by the state veterinarian in consultation with the epidemiologist.

21—64.177(163) Herd plan. The herd owner, the owner’s veterinarian, if requested, and the epidemiologist shall develop a plan for eradicating CWD in each affected herd. The plan must be designed to reduce and then eliminate CWD from the herd, to prevent spread of the disease to other herds, and to prevent reintroduction of CWD after the herd becomes a certified CWD cervid herd. The herd plan must be developed and signed within 60 days after the determination that the herd is affected.

The plan must address herd management and adhere to rules 64.171(163) through 64.187(163). The plan must be formalized as a memorandum of agreement between the owner and program officials, must be approved by the state veterinarian, and must include plans to obtain certified CWD cervid herd status.

21—64.178(163) Identification and disposal requirements. Affected and exposed animals must remain on the premises where they are found until they are identified and disposed of in accordance with direction from the state veterinarian.

21—64.179(163) Cleaning and disinfecting. Premises must be cleaned and disinfected under state supervision within 15 days after affected animals have been removed.

21—64.180(163) Methods for obtaining certified CWD cervid herd status. Certified CWD cervid herd status must include all Cervidae under common ownership. They cannot be commingled with other cervids that are not certified, and a minimum geographic separation of 30 feet between herds of different status must be maintained in accordance with the USDA Uniform Methods and Rules as defined in APHIS manual 91–45–011, revised as of January 22, 1999. A herd may qualify for status as a certified CWD cervid herd by one of the following means:

64.180(1) Purchasing a certified CWD cervid herd. Upon request and with proof of purchase, the department shall issue a new certificate in the new owner’s name. The anniversary date and herd status for the purchased animals shall be the same as for the herd to which the animals are added; or if part or all of the purchased herd is moved directly to premises that have no other Cervidae, the herd may retain the certified CWD status of the herd of origin. The anniversary date of the new herd is the date of the most recent herd certification status certificate.

64.180(2) Upon request and with proof by records, a herd owner shall be issued a certified CWD cervid herd certificate by complying with the CCWDSI program for a period of four years.

21—64.181(163) Recertification of CWD cervid herds. A herd is certified for 12 months. Annual inventories conducted by state veterinarians are required every 9 to 15 months from the anniversary date. For continuous certification, adherence to the provisions in these rules and all other state laws and rules pertaining to raising cervids is required. A herd’s certification status is immediately terminated and a herd investigation shall be initiated if CWD affected or exposed animals are determined to originate from that herd.

64.182(1) Animals originating from certified CWD cervid herds may move into another certified CWD cervid herd.

64.182(2) Animals originating from noncertified herds that are moving into certified CWD cervid herds cannot be certified until they remain in the certified CWD cervid herd for four years.

64.182(3) Animals originating from CWD monitored herds cannot be certified until a combination of the years in CWD monitored status and the years present in the certified CWD herd totals four years.

64.183(1) Animals originating from a monitored CWD cervid herd may move into another monitored CWD cervid herd of the same status.

64.183(2) Animals originating from a herd which is not a monitored CWD cervid herd or from a lower status monitored CWD cervid herd will progress annually in status level on an individual animal basis until completion of CWD certification.

21—64.184(163) Recognition of monitored CWD herds. The state veterinarian shall issue a monitored CWD cervid herd certificate, including CWD monitored herd status as CWD monitored Level A during the first calendar year, CWD monitored Level B during the second calendar year, CWD monitored Level C during the third calendar year, CWD monitored Level D during the fourth calendar year, and CWD certification at the fifth year and thereafter.

21—64.185(163) Recognition of certified CWD cervid herds. The state veterinarian shall issue a certified CWD cervid herd certificate when the herd first qualifies for recertification. The state veterinarian shall issue a renewal form annually.

64.186(1) All intrastate movements of Cervidae other than to a state or federally inspected slaughter establishment shall be accompanied by an intrastate movement certificate of veterinary inspection signed by a licensed, accredited veterinarian.

64.186(2) Such intrastate movement certificate shall include all of the following:

a. Consignor’s name and address.

b. Consignee’s name and address.

c. Individual identification of each animal by an official ear tag.

d. The following statement: “There has been no diagnosis, signs, or epidemiologic evidence of CWD in this herd for the past year.”

64.187(1) All Cervidae entering Iowa must be accompanied by all of the following:

a. An official certificate of veterinary inspection.

b. A permit number requested by the licensed, accredited veterinarian signing the certificate and issued by the state veterinarian prior to movement.

c. One of the following statements must appear on the certificate:

“All Cervidae on this certificate have been part of the herd of origin for at least one year or were natural additions to this herd. There has been no diagnosis, signs, or epidemiologic evidence of CWD in this herd for the past year”; or

“All Cervidae on this certificate originate from a CWD monitored or certified herd in which these animals have been kept for at least one year or were natural additions. There has been no diagnosis, signs, or epidemiologic evidence of CWD in this herd for the past year.”

64.187(2) If the Cervidae listed on the certificate are enrolled in a CWD program, the anniversary date and program status for each individual animal must be listed.

Pursuant to the authority of Iowa Code section 239B.4(4), the Department of Human Services proposes to amend Chapter 7, “Appeals and Hearings,” Chapter 9, “Public Records and Fair Information Practices,” Chapter 40, “Application for Aid,” Chapter 41, “Granting Assistance,” Chapter 42, “Unemployed Parent,” Chapter 43, “Alternate Payees,” Chapter 45, “Payment,” Chapter 46, “Overpayment Recovery,” and Chapter 93, “PROMISE JOBS Program,” appearing in the Iowa Administrative Code.

These amendments:

• Eliminate the quarterly report listing the names and addresses of Family Investment Program (FIP), Medicaid, and State Supplementary Assistance (SSA) recipients. Iowa Code section 217.30(4)“c” required the Department to make a quarterly report listing the names and addresses of families receiving FIP, Medicaid, and SSA available for public viewing. The Department’s Welfare Reform Advisory Group recommended elimination of the report to protect the confidentiality of families receiving assistance. Eliminating the report also protects the safety and privacy of assistance program recipients who are victims of domestic violence. 2000 Iowa Acts, Senate File 2368, section 1, granted the Department’s request to eliminate the quarterly report and implement the group’s recommendation.

• Exempt persons who are not U.S. citizens and are not qualified aliens as defined in 8 United States Code Section 1641 from participation in PROMISE JOBS and the family investment agreement.

Federal law prohibits federal Temporary Assistance for Needy Family (TANF) funds from being used to provide PROMISE JOBS services to nonqualified aliens without legal status and nonqualified aliens with one of the following legal statuses:

1. Nonimmigrants under the Immigration and Nationality Act (INA).

2. Aliens paroled into the United States under Section 212(d)(5) of the INA for less than one year.

3. Temporary residents under the Immigration Reform and Control Act.

4. Aliens with protected status, such as PRUCOLS (permanently residing in the United States under color of law).

5. Aliens in deferred action status.

Federal law does allow use of state–only maintenance of effort (MOE) funds to serve aliens without legal status if the state passes a law specifically allowing this. The state could also use state–only MOE funds to serve nonqualified aliens with legal status in categories “1” and “2,” above. However, federal law does not allow the state to use any state funds to serve legal nonqualified aliens in categories “3” through “5” above.

The Department believes that serving some nonqualified aliens and not serving others would be very confusing to citizens, applicants and recipients, and to staff. There would be a great likelihood of error. Also, some of these aliens are not allowed to work in the United States. Therefore, the Department proposed an amendment to Iowa Code section 239B.8 to exempt all nonqualified aliens from PROMISE JOBS and family investment agreement activities. 2000 Iowa Acts, Senate File 2368, section 3, implements the Department’s proposed amendment.

• Prohibit persons who are not U.S. citizens and are not qualified aliens as defined in federal law from voluntary participation in PROMISE JOBS. The limitations described in the preceding topics also affect the voluntary participation in PROMISE JOBS by persons who are nonqualified aliens. The Department proposed an amendment to Iowa Code section 239B.18 that prohibits nonqualified aliens from voluntary PROMISE JOBS participation to bring the Department into compliance with federal law. 2000 Iowa Acts, Senate File 2368, section 8, implements the Department’s proposed amendment.

• Correct existing rules regarding aliens’ qualification for FIP assistance and also rescind obsolete rules on deeming alien sponsors’ income and resources. The proposed rule correction regarding aliens’ qualification for FIP brings the Department into compliance with federal and state law. Under the corrected rule, some aliens who are currently eligible will no longer be eligible for FIP, e.g., aliens who are permanently residing in the U.S. under color of law (PRUCOLS). Included in the correction is the elimination of administrative rules on deeming sponsors’ income and resources that were in effect under the former Aid to Families With Dependent Children (AFDC) program that became obsolete with the implementation of TANF. According to a recent update from the United States Department of Health and Human Services (DHHS), revised deeming policies are still under debate. The Department will submit administrative rules on deeming income and resources of alien sponsors upon release of pertinent instructions from DHHS.

• Revise provisions regarding the 60–month limit on FIP assistance. Specifically, the rules revise the definition of “assistance,” exclude stepparents who are in the home but not on the FIP grant from the 60–month limit, and revise the definition of Alaskans and Natives in Indian Country who are excluded from the 60–month FIP limit.

Under current rules, a month of “assistance” for the purpose of the 60–month limit on FIP assistance is defined as a month for which the adult receives a FIP grant or a payment for PROMISE JOBS expense allowances. Final federal TANF regulations allow states the option of excluding PROMISE JOBS expense allowance payments from consideration toward the 60–month FIP limit. The Department opted to remove PROMISE JOBS payments from the definition of “assistance” and avoid having to subject the payments to child support assignment.

Under current rules, FIP assistance received by a household that includes a stepparent is counted toward the 60–month limit regardless of whether the stepparent is included in the FIP grant. Final federal TANF regulations prohibit application of the 60–month FIP limit to stepparents who are in the home but are excluded from the FIP grant. Although the Department has the option to apply the 60–month state limit to ineligible stepparents, the Department opted to follow TANF regulations as most FIP families with an ineligible stepparent in the home are already subject to the 60–month limit because of the presence of the stepparent’s spouse, i.e., the parent of the FIP child.

The definition of adults living in Indian Country or in a Native Alaskan village who are excluded from the 60–month FIP limit is revised to be in compliance with federal TANF law. The revised definition has no impact on FIP applicants and participants because Iowa does not have any established Indian Country or Native Alaskan villages.

• Revise the definition of “reasonable distance” for participating in a PROMISE JOBS activity to specify that travel time from home to the work site includes travel time to take a child to the child care provider. Federal TANF regulations mandate that states cannot reduce or terminate assistance based on a parent’s refusal to participate in work activities if the parent demonstrates the unavailability of needed child care for young children.

Federal regulations further require that states develop procedures for determining if a parent has demonstrated the unavailability of child care. To meet the federal mandate, Iowa must define the availability of child care within “reasonable distance” from the parent’s home to the work site. Under current rules, an acceptable instance for excusing a parent from a PROMISE JOBS activity is when the required travel time from home to the activity exceeds one hour each way, excluding the additional travel time necessary to take children to a child care provider. However, current practice defines reasonable distance of one hour to include travel time necessary to take the child to a child care provider. The proposed rule brings the Department into compliance with current practice by defining “reasonable distance” of one hour to include the travel time necessary to take a child to a child care provider.

• Incorporate the new Spanish version of the Public Assistance Eligibility Report form.

• Update legal references, form numbers and language in existing rules, including names of other state agencies (e.g., replace “Employment Services” with “Workforce Development”).

These amendments do not provide for waivers in specified situations because the amendments on the quarterly report and alien eligibility are required by state law. However, if the amendments on alien eligibility would help a client, individuals may request a waiver of current policy under the Department’s general rule on exceptions at rule 441— 1.8(217) until the proposed amendments become effective.

Consideration will be given to all written data, views, and arguments thereto received by the Office of Policy Analysis, Department of Human Services, Hoover State Office Building, Des Moines, Iowa 50319–0114, on or before August 2, 2000.

These amendments are intended to implement Iowa Code section 217.30(4) and chapter 239B as amended by 2000 Iowa Acts, Senate File 2368, sections 1, 3, and 8.

The following amendments are proposed.

ITEM 1. Amend subrule 7.7(2), paragraph “k,” as follows:

k. The agency terminates, reduces, or suspends benefits or makes changes based on the completed monthly report, which can be either Form 470–0455 or Form 470–3719(S), Public Assistance Eligibility Report, or Form 470–2881,Review/Recertification Eligibility Document, as described at 40.7(1)“b.” 441—paragraph 40.27(1)“b.”

ITEM 2. Amend subrule 9.4(6) by rescinding and reserving paragraph “c.”

ITEM 3. Amend rule 441—9.10(17A,22) as follows:

Amend subrule 9.10(4), paragraph “e,” as follows:

e. To meet federal requirements under the Family Support Act of 1988, the The agency has entered into agreements an agreement with the department of employment services and the department of economic development workforce development under which these two agencies the agency will provide services to aid to dependent children family investment program clients participating in the PROMISE JOBS program as described at 441—Chapter 93. Information necessary to carry out these duties shall be shared with these agencies the agency, as well as with the agency’s subcontractors who administer the Job Training Partnership Act (JTPA) program on behalf of the department of economic development.

Rescind and reserve subrule 9.10(15).

ITEM 4. Amend subrule 9.12(2), paragraph “c,” subparagraph (4), as follows:

(4) The departments of economic development and employment services department of workforce development to verify employment of participants in the PROMISE JOBS program.

ITEM 5. Amend rule 441—40.21(239B) by rescinding the definition of “X–PERT.”

ITEM 6. Amend rule 441—40.22(239B) as follows:

Amend the introductory paragraphs as follows:

441—40.22(239B) Application. For cases selected for the X–PERT system, the application for the family investment program shall be initiated by submitting Form 470–3112, Application for Assistance, Part 1, or Form 470–3122 (Spanish). Applicants whose cases are selected for the X–PERT system but whose eligibility cannot be determined through the X–PERT system may be requested to complete Public Assistance Application, Form PA–2207–0 or Form PA–2230–0 (Spanish). Form 470–3112 or Form 470–3122 shall be signed by the applicant, the applicant’s authorized representative or, when the applicant is incompetent or incapacitated, someone acting responsibly on the applicant’s behalf.

For cases not selected for the X–PERT system, the The application for the family investment program shall be submitted on the Public Assistance Application, Form PA–2207–0 470–0462 or Form PA–2230–0 470–0466 (Spanish). When submitting Application for Assistance, Part 1, Form 470–3112 or Form 470–3122 (Spanish), the applicant shall also be required to complete Public Assistance Application, Form PA–2207–0 or Form PA–2230–0 (Spanish), no later than at the time of the required face–to–face interview. Form PA–2207–0 470–0462 or Form PA–2230–0 470–0466 (Spanish) shall be signed by the applicant, the applicant’s authorized representative or, when the applicant is incompetent or incapacitated, someone acting responsibly on the applicant’s behalf. When both parents, or a parent and a stepparent, are in the home, both shall sign the application.

Amend subrule 40.22(5), paragraph “c,” as follows:

c. When eligibility factors are met, assistance shall be reinstated when a completed Public Assistance Eligibility Report, Form PA–2140–0 470–0455 or Form 470–3719(S), or a Review/Recertification Eligibility Document, Form 470– 2881, is received by the county office within ten days of the date a cancellation notice is sent to the recipient because the form was incomplete or not returned.

ITEM 7. Amend rule 441—40.23(239B), introductory paragraph, as follows:

441—40.23(239B) Date of application. The date of application is the date an identifiable Public Assistance Application, Form 470–0462 or Form 470–0466 (Spanish), Form 470–3112, Application for Assistance, Part 1, or Form 470–3122 (Spanish), is received in any local or area office or by an income maintenance worker in any satellite office or by a designated worker who is in any disproportionate share hospital, federally qualified health center or other facility in which outstationing activities are provided. The disproportionate share hospital, federally qualified health center or other facility will forward the application to the department office which is responsible for the completion of the eligibility determination. An identifiable application is an application containing a legible name and address that has been signed.

ITEM 8. Amend rule 441—40.24(239B) as follows:

Amend subrule 40.24(2), introductory paragraph, as follows:

40.24(2) In processing an application, the county office or the designated worker as described in rule 441— 40.23(239B) who is in a disproportionate share hospital, federally qualified health center, or other facility in which outstationing activities are provided shall conduct at least one face–to–face interview with the applicant prior to approval of the application for assistance. In addition, at the conclusion of the interview, applicants whose cases are selected for the X–PERT system shall be provided the Summary of Facts, Form 470–3114, for review. The applicant shall also sign and return to the county office the Summary Signature Page, Form 470–3113 or Form 470–3123 (Spanish), within the time frame described at 40.24(1). Form 470–3113 or Form 470–3123 (Spanish) shall be signed by the applicant, the applicant’s authorized representative or, when the applicant is incompetent or incapacitated, someone acting responsibly on the applicant’s behalf. When both parents, or a parent and stepparent are in the home, both shall sign the form. The worker shall assist the applicant, when requested, in providing information needed to determine eligibility and the amount of assistance. The application process shall include a visit, or visits, to the home of the child and the person with whom the child will live during the time assistance is granted under the following circumstances:

Amend subrule 40.24(3) as follows:

40.24(3) The applicant who is subject to monthly reporting as described in 40.27(1) shall become responsible for completing Form PA–2140–0 470–0455 or Form 470– 3719(S), Public Assistance Eligibility Report, after the time of the face–to–face interview. This form shall be issued and returned according to the requirements in 40.27(4)“b.” The application process shall continue as regards the initial two months of eligibility, but eligibility and the amount of payment for the third month and those following are dependent on the proper return of these forms. The county office shall explain to the applicant at the time of the face–to–face interview the applicant’s responsibility to complete and return this form.

ITEM 9. Amend rule 441—40.27(239B) as follows:

Amend subrule 40.27(1), introductory paragraph and paragraph “b,” as follows:

40.27(1) Eligibility factors shall be reviewed at least every six months for the family investment program. A semiannual review shall be conducted using information contained in and verification supplied with Form PA–2140–0 470–0455 or Form 470–3719(S), Public Assistance Eligibility Report. A face–to–face interview shall be conducted at least annually at the time of a review using information contained in and verification supplied with Form 470–2881, Review/Recertification Eligibility Document. When the client has completed Form PA–2207–0, a Public Assistance Application, Form 470–0462 or Form PA–2230–0 470–0466 (Spanish), for another purpose required by the department, this form may be used as the review document for the semiannual or annual review.

b. The assistance unit subject to monthly reporting shall complete a Public Assistance Eligibility Report, Form PA–2140–0 470–0455 or Form 470–3719(S), for each budget month, unless the assistance unit is required to complete Form 470–2881, Review/Recertification Eligibility Document, for that month. The Public Assistance Eligibility Report shall be signed by the payee, the payee’s authorized representative, or, when the payee is incompetent or incapacitated, someone acting responsibly on the payee’s behalf. When both parents or a parent and a stepparent are in the home, both shall sign the form.

Amend subrule 40.27(3) as follows:

40.27(3) Information for semiannual reviews shall be submitted on Form PA–2140–0 470–0455 or Form 470–3719(S), Public Assistance Eligibility Report. Information for the annual face–to–face determination interview shall be submitted on Form 470–2881, Review/Recertification Eligibility Document. When the client has completed Form PA–2207–0 470–0462 or Form 470–0466 (Spanish), Public Assistance Application, for another purpose, this form may be used as the review document for the semiannual or annual review. The review form shall be signed by the payee, the payee’s authorized representative, or, when the payee is incompetent or incapacitated, someone acting responsibly on the payee’s behalf. When both parents, or a parent and a stepparent, are in the home, both shall sign the Public Assistance Eligibility Report, the Review/Recertification Eligibility Document, or the Public Assistance Application.

Amend subrule 40.27(4), paragraph “b,” as follows:

b. The recipient shall complete Form PA–2140–0 470–0455 or Form 470–3719(S), Public Assistance Eligibility Report, or Form 470–2881, Review/Recertification Eligibility Document, when requested by the county office in accordance with these rules. Either The form will shall be supplied as needed to the recipient by the department. The department shall pay the cost of postage to return the form. When the form is issued in the department’s regular end–of–month mailing, the recipient shall return the completed form to the county office by the fifth calendar day of the report month. When the form is not issued in the department’s regular end–of–month mailing, the recipient shall return the completed form to the county office by the seventh day ofthe month after the date it is mailed by the department.The county office shall supply the recipient withForm PA–2140–0 470–0455 or Form 470–3719(S), PublicAssistance Eligibility Report, or Form 470–2881, Review/Recertification Eligibility Document, on request. Failure to return a completed form shall result in cancellation of assistance. A completed form is a form with all items answered, signed, dated no earlier than the last day of the budget month and accompanied by verification as required in 441—paragraph paragraphs 41.27(1)“i,” and 41.27(2)“q.”

ITEM 10. Rescind and reserve rule 441—40.29(239B).

ITEM 11. Amend subrule 41.21(5), paragraph “c,” subparagraphs (1) and (2), as follows:

(1) The determination of incapacity shall be supported by medical or psychological evidence. The evidence may be submitted either by a letter from the physician or on Form PA–2126–5 470–0447, Report on Incapacity.

(2) When an examination is required and other resources are not available to meet the expense of the examination, the physician shall be authorized to make the examination and submit the claim for payment on Form PA–5113–0 470–0502, Authorization for Examination and Claim for Payment.

ITEM 12. Amend subrule 41.22(9), paragraphs “a” and “c,” as follows:

a. Prior to requiring cooperation, the local county office shall notify the applicant or recipient on Form CS–1105–5 470–0169, Requirements of Support Enforcement, of the right to claim good cause as an exception to the cooperation requirement and of all the requirements applicable to a good cause determination. One copy of this form shall be given to the applicant or recipient and one copy shall be signed by the applicant or recipient and the worker and filed in the case record.

c. When the applicant or recipient makes a claim of good cause or requests additional information regarding the right to file a claim of good cause, the local county office shall issue a second notice, Form CS–1106–5 470–0170, Requirements of Claiming Good Cause. When the applicant or recipient chooses to claim good cause, Form CS–1106–5 470–0170 shall be signed and dated by the client and returned to the local county office. This form:

(1) to (6) No change.

ITEM 13. Amend rule 441—41.23(239B) as follows:

Rescind and reserve subrule 41.23(4).

Amend subrule 41.23(5), catchwords and paragraph “a,” as follows:

41.23(5) Citizenship and alienage for persons entering the United States on or after August 22, 1996.

a. A family investment program assistance grant may include the needs of:

(1) A a citizen or national of the United States, or a qualified alien as defined at 8 United States Code Section 1641. A person who is a qualified alien as defined at 8 United States Code Section 1641 is not eligible for family investment program assistance for five years. The five–year period of ineligibility begins on the date of the person’s entry into the United States with a qualified alien status as defined at 8 United States Code Section 1641.

ITEM 14. Amend rule 441—41.24(239B) as follows:

Amend subrule 41.24(1), paragraph “c,” as follows:

c. Persons Except for persons described at paragraph 41.24(2)“f,” persons determined exempt from referral, including applicants, may volunteer for PROMISE JOBS.

Amend subrule 41.24(2), by adding the following new paragraph “f”:

f. A person who is not a United States citizen and is not a qualified alien as defined in 8 United States Code Section 1641.

Amend subrule 41.24(3), paragraphs “a” and “b,” as follows:

a. Parents Unless exempt as described at subrule 41.24(2), parents aged 18 or 19 are referred to PROMISE JOBS as follows:

(1) to (3) No change.

b. Parents Unless exempt as described at subrule 41.24(2), parents aged 17 or younger are referred to PROMISE JOBS as follows:

(1) and (2) No change.

Amend subrule 41.24(6) as follows:

41.24(6) Volunteers. Any Except for persons described at paragraph 41.24(2)“f,” any applicant and any recipient may volunteer for referral. The income maintenance worker shall not refer an applicant to the program when it appears that the applicant shall be ineligible for FIP.

ITEM 15. Amend rule 441—41.25(239B) as follows:

Rescind and reserve subrule 41.25(6).

Amend subrule 41.25(7) as follows:

41.25(7) Time limit for receiving assistance.

a. Assistance shall not be provided to a FIP applicant or recipient family that includes an adult who has received assistance for 60 calendar months under any state program in Iowa or in another state that is funded by the Temporary Assistance for Needy Families (TANF) block grant. The 60–month period need not be consecutive. An “adult” is any person who is a parent of the FIP child or that child’s sibling (of whole or half–blood or adoptive) in the home, stepparent of the FIP child, or included as an optional member under subparagraphs 41.28(1)“b”(1), and (2) and (3). In two–parent households, the 60–month limit is determined when either parent has received assistance for 60 months. “Assistance” shall include any month for which the adult receives a FIP grant or payment for PROMISE JOBS expense allowances. Assistance received for a partial month shall count as a full month.

b. In determining the number of months an adult received assistance, the department shall consider toward the 60–month limit:

(1) Assistance received even when the parent is excluded from the grant unless the parent is an SSI recipient.

(2) Assistance received by an optional member of the eligible group as described in subparagraphs 41.28(1)“b”(1) and (2). However, once the person has received assistance for 60 months, the person is ineligible but assistance may continue for other persons in the eligible group. The entire family is ineligible for assistance when the optional member who has received assistance for 60 months is the incapacitated stepparent on the grant as described at subparagraph 41.28(1)“b”(3).

c. In determining the number of months an adult received assistance, the department shall not consider toward the 60–month limit any month for which FIP and PROMISE JOBS assistance was not issued for the family, such as:

(1) A month of suspension.

(2) A month for which no grant is issued due to the limitations described in rules 441—45.26(239B) and 441— 45.27(239B).

(3) When all assistance for the month is returned.

(4) When all assistance for the month is reimbursed via child support collection or overpayment recovery.

d. No change.

e. The department shall not consider toward the 60–month limit months of assistance received by an adult while living on an in Indian reservation country (as defined in 18 United States Code Section 1151) or in an a Native Alaskan Native village if, during the month, at least 1,000 persons lived there and where at least 50 percent of the adults living there were unemployed not employed.

Amend subrule 41.25(8), paragraph “f,” introductory paragraph, as follows:

f. If the department receives written notification from a school truancy officer under 1997 Iowa Acts, House File 597, section 5, Iowa Code section 299.12 that a child receiving family investment program assistance is deemed to be truant, the child’s family shall be subject to sanction as provided in paragraph “g.” The sanction shall continue to apply until the department receives written notification from the school truancy officer of any of the following:

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code chapter chapters 239B and 1997 Iowa Acts, House File 597 299.

ITEM 16. Amend rule 441—41.26(239B) as follows:

Amend subrule 41.26(1), paragraph “e,” as follows:

e. A reserve of other property, real or personal, not to exceed $2000 for applicant assistance units and $5000 for recipient assistance units. EXCEPTION: Applicant assistance units with at least one member who was a recipient in Iowa in the month prior to the month of application are subject to the $5000 limit. The exception includes those persons who did not receive an assistance grant due to the $10 grant limitation limitations described at rule rules 441—45.26(239B) and 45.27(239B) and persons whose grants were suspended as in 41.27(9)“f” in the month prior to the month of application.

Resources of the applicant or the recipient shall be determined in accordance with subrule 41.26(2).

Amend subrule 41.26(2) by rescinding and reserving paragraphs “f” and “g.”

Rescind and reserve subrule 41.26(9).

ITEM 17. Amend rule 441—41.27(239B) as follows:

Amend subrule 41.27(1), paragraph “i,” as follows:

i. The applicant or recipient shall cooperate in supplying verification of all unearned income, as defined at rule 441—40.21(239B). When the information is available, the county office shall verify job insurance benefits by using information supplied to the department by the department of workforce development. When the county office uses this information as verification, job insurance benefits shall be considered received the second day after the date that the check was mailed by workforce development. When the second day falls on a Sunday or federal legal holiday, the time shall be extended to the next mail delivery day. When the client notifies the county office that the amount of job insurance benefits used is incorrect, the client shall be allowed to verify the discrepancy. A payment adjustment shall be made when indicated. Recoupment shall be made for any overpayment. The client must report the discrepancy priorto the payment month or within ten days of the date on the Notice of Decision, Form PA–3102–0 470–0485(C) or 470–0486(M), applicable to the payment month, whichever is later, in order to receive a payment adjustment.

Amend subrule 41.27(8), paragraph “a,” subparagraph (1), as follows:

(1) Treatment of income when the parent is a citizen or an alien other than those described in 41.23(4)“a”(3). A parent who is living in the home with the eligible child(ren) but whose needs are excluded from the eligible group is eligible for the 20 percent earned income deduction, the 50 percent work incentive deduction described at 41.27(2)“a” and “c,” and diversions described at 41.27(4), and shall be permitted to retain that part of the parent’s income to meet the parent’s needs as determined by the difference between the needs of the eligible group with the parent included and the needs of the eligible group with the parent excluded except as described at 41.27(11). All remaining nonexempt income of the parent shall be applied against the needs of the eligible group.

Further amend subrule 41.27(8), paragraph “a,” by rescinding and reserving subparagraph (2).

Rescind and reserve subrule 41.27(10).

ITEM 18. Amend 441—Chapters 42, 43, 45 and 46 by changing the parenthetical implementation statutes “239,” “249C,” and “77GA,SF516” to “239B” wherever they appear.

ITEM 19. Amend 441—Chapter 42, implementation clause, as follows:

These rules are intended to implement Iowa Code sections 239.2, 239.5 and 239.17 section 239B.2.

ITEM 20. Amend 441—Chapter 43 by rescinding the implementation clauses following rules 43.21(239B) and 43.22(239B) and amending the implementation clause following rule 441—43.24(239B) as follows:

This rule is These rules are intended to implement Iowa Code section 239.5 239B.13.

ITEM 21. Amend subrule 43.23(4) as follows:

43.23(4) The local county office shall send the vendor two copies of Form PA–3157–5 470–0493, Authorization for FIP Vendor Payment. The vendor shall complete and return one copy of the form to the local county office along with a copy of the billing, invoice or statement.

ITEM 22. Amend 441—Chapter 45, implementation clause, as follows:

These rules are intended to implement Iowa Code sections 239.2 and 239.5 239B.2, 239B.3, and 239B.7.

ITEM 23. Amend rule 441—46.21(239B) as follows:

Amend the definition of “client error” as follows:

“Client error” means and may result from:

False or misleading statements, oral or written, regarding the client’s income, resources, or other circumstances which may affect eligibility or the amount of assistance received;

Failure to timely report changes in income, resources, or other circumstances which may affect eligibility or the amount of assistance received;

Failure to timely report the receipt of and, if applicable, to refund assistance in excess of the amount shown on the most recent Notice of Decision, Form PA–3102–0 470–0485(C) or 470–0486(M), or the receipt of a duplicate grant; or

Failure to refund to the child support recovery unit any nonexempt payment from the absent parent received after the date the decision on eligibility was made.

Rescind the definitions of “good cause” and “without fault.”

ITEM 24. Rescind and reserve subrule 46.24(5).

ITEM 25. Amend rule 441—46.25(239B) as follows:

Amend the introductory paragraph as follows:

441—46.25(239B) Source of recoupment. Recoupment shall be made from basic needs or in accordance with 46.24(5) above. The minimum recoupment amount shall be the amount prescribed in 46.25(3). Regardless of the source, the client may choose to make a lump sum payment, make periodic installment payments when an agreement to do this is made with the department of inspections and appeals, or have repayment withheld from the grant. The client shall sign either Form PA–3164–0, Agreement to Repay Overpayment 470–0495, Repayment Contract, or Form PA–3167–0, Agreement to Repay Overpayment after Probation, when requested to do so by the department of inspections and appeals. When the client fails to make the agreed upon payment, the agency shall reduce the grant. Recoupment, whether it be by a lump sum payment, periodic installment payments, or withholding from the grant, can be made from one or both of the following sources:

Rescind and reserve subrule 46.25(4).

ITEM 26. Amend subrule 46.27(5) as follows:

46.27(5) Collection. Recoupment for overpayments shall be made from the parent or nonparental relative who was the caretaker relative, as defined in 441—subrule 41.22(3), at the time the overpayment occurred, except as provided in 46.24(5). When both parents were in the home at the time the overpayment occurred, both parents are equally responsible for repayment of the overpayment.

ITEM 27. Amend 441—Chapter 46, implementation clause, as follows:

These rules are intended to implement Iowa Code sections 239.2, 239.5, 239.6, 239.14 and 239.17 239B.2, 239B.3, 239B.7, and 239B.14.

ITEM 28. Amend 441—Chapter 93, Preamble, as follows:

PREAMBLE

This chapter implements the PROMISE JOBS* program which is designed to increase the availability of employment and training opportunities to family investment program (FIP) recipients. It implements the family investment agreement (FIA) as directed in legislation passed by the Seventy–fifth General Assembly and signed by the governor on May 4, 1993, and approved under federal waiver August 13, 1993. The program also implements the federal Job Opportunities and Basic Skills (JOBS) program of the Family Support Act of 1988 Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Title I—Block Grants for Temporary Assistance for Needy Families (TANF).

The program assigns responsibility for the provision of services to the Iowa department of workforce development (DWD) (IWD) and the department of economic development (DED) as the administrative entity for the Job Training Partnership Act (JTPA) program, Iowa’s two primary providers of employment–oriented services and IWD’s subcontractors as appropriate. In addition, the bureau of refugee services (BRS) of the department of human services is assigned the responsibility of providing program services, to the extent compatible with resources available, to all refugees.

PROMISE JOBS services, which are also FIA options, include orientation, assessment, job–seeking skills training, group and individual job search, classroom training programs ranging from basic education to postsecondary education opportunities, entrepreneurial training, PROMISE JOBS on–the–job training, work experience, unpaid community service, parenting skills training, life skills training, monitored employment, the FIP–unemployed parent work program, referral for family planning counseling, volunteer mentoring, FaDSS, and other family development services. In addition, participants have access to all services offered by the IWD and its subcontractor provider agencies.Persons in other work and training programs outside of PROMISE JOBS or not approvable by PROMISE JOBS can use those as FIA options.

ITEM 29. Amend subrules 93.104(1) and 93.104(2) as follows:

93.104(1) All registrants may volunteer for services. except for persons described at 441—paragraph 41.24(2)“f.”

93.104(2) Applicants Except for persons described at 441—paragraph 41.24(2)“f,” applicants for FIP assistance may volunteer for and are eligible to receive job placement services prior to approval of the FIP application. Applicants who participate in the program shall receive a transportation allowance, as well as payment of child care, if required. The transportation allowance shall be paid at the start of participation. The income maintenance worker shall not refer an applicant to the program when it appears that the applicant will be ineligible for FIP.

ITEM 30. Amend subrule 93.111(5) as follows:

93.111(5) Retention of a training slot. Once a person has been assigned a PROMISE JOBS training slot, that person retains that training slot until FIP eligibility is lost for more than four consecutive months, an LBP chosen after completing an FIA is in effect, or the person becomes exempt from PROMISE JOBS and the person who is eligible to volunteer does not choose to volunteer to continue to participate in the program.

ITEM 31. Amend rule 441—93.122(239B), introductory paragraph, as follows:9

441—93.122(239B) FIP–UP work program. When required to meet the federal requirements as described at 93.105(1)“c,” one parent from any FIP–UP case shall be enrolled into the FIP–UP work program upon call–up as described at 93.105(2), as one of the FIA options. When both parents are mandatory PROMISE JOBS participants or when one parent is a mandatory participant and one is a volunteer, the PROMISE JOBS worker shall consult with the parents before responsibility is assigned for the FIP–UP work program participation. When one parent is mandatory and one is exempt, the mandatory parent shall fulfill the responsibility for the FIP–UP work program. However, the exempt parent, except for persons described at 441—paragraph 41.24(2)“f,” may volunteer for PROMISE JOBS in order to fulfill the responsibility for the FIP–UP work program participation. The parent obligated or chosen to fulfill this responsibility shall be known as the designated parent and the FIA shall include the appropriate FIP–UP work program activities for the designated parent. The designated parent shall complete Form 470–3282, FIP–UP Work Program Designated Parent Declaration, acknowledging that the information in this rule has been provided and that the LBP has been described.

ITEM 32. Amend subrule 93.133(2), paragraph “a,” as follows:

a. Required travel time from home to the job or available work experience or unpaid community service site exceeds one hour each way. This does not include includes additional travel time necessary to take a child to a child care provider.

Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services proposes to amend Chapter 75, “Conditions of Eligibility,” and Chapter 76, “Application and Investigation,” appearing in the Iowa Administrative Code.

These amendments eliminate monthly reporting and retrospective budgeting for categorically needy FMAP–related Medicaid applicants and recipients. The six–month review is eliminated for categorically needy FMAP–related Medicaid recipients and for FMAP–related and CMAP–related medically needy recipients with a zero spenddown. The changes a categorically needy FMAP–related Medicaid recipient will be required to report between annual reviews are being limited to changes in household composition, living or mailing address, sources of income, and health insurance coverage. In addition, these amendments revise the nonrecurring lump sum rules and the rules specifying that deposits into an individual development account (IDA) are exempt as income and as a resource.

Each month that a client is required to report, the client is subject to potential cancellation if the form is not returned on time, if all questions are not answered, if the form is not signed, and if all required verification is not submitted with the form. Ensuring that the client has complied with all these requirements requires a significant amount of time each month. Nationally, it is recognized that monthly reporting is one of the main reasons that Medicaid–eligible people do not stay in the Medicaid program. For example, in Iowa 6,672 new children were added to the Medicaid program in April. (New children are children who did not receive Medicaid during the prior month, in this example, March.) However, during April 6,524 children dropped off the Medicaid program. While there is no actual proof, the Department believes the reason that many of the children dropped off Medicaid was due to monthly reporting issues.

Retrospective budgeting bases a person’s eligibility for Medicaid on their income and circumstances two months prior to the month for which eligibility is being determined. For example, Medicaid eligibility for May is based on the actual income received during the month of March. Eliminating monthly reporting without eliminating retrospective budgeting would still require the client to report each month the income the client received in the previous month, but without a form. This rule change replaces retrospective budgeting with prospective budgeting. Prospective budgeting takes into consideration both the circumstances of past months and the anticipated circumstances in future months. Also, by replacing retrospective budgeting with prospective budgeting, the need to allow for a month of suspension when one–time changes in income or circumstances occur is eliminated. Because prospective budgeting bases income eligibility on the client’s recent income history, or on a projection of anticipated income, or on a combination of the recent income history and a projection of anticipated income, one–time changes in income will not affect the income projection.

The six–month non–face–to–face review is a duplication of the process a worker completes each time a client reports a change in circumstances. Requiring recipients to complete a form and requiring that workers evaluate and process these forms when the client has reported no change does not seem to be a fair and equitable policy for clients and it is not an efficient use of staff time.

Limiting the changes a client is required to report reduces the potential for the client to forget to report a change, which could result in penalties such as an overpayment or in cancellation. Additionally, it reduces the frequency with which workers must redetermine eligibility.

The time saved by workers no longer performing the tasks noted above will be refocused toward ensuring accuracy in the Food Stamp program.

These amendments do not provide for waivers in specified situations because they confer a benefit on clients by reducing paperwork and reporting requirements.

Consideration will be given to all written data, views, and arguments thereto received by the Office of Policy Analysis, Department of Human Services, Hoover State Office Building, Des Moines, Iowa 50319–0114, on or before August 2, 2000.

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

The following amendments are proposed.

ITEM 1. Amend rule 441—75.1(249A) as follows:

Amend subrule 75.1(28), paragraph “a,” subparagraph (2), as follows:

(2) Moneys received as a nonrecurring lump sum, except as specified in subrules 75.56(4) and 75.56(7) and paragraphs 75.57(8)“b” and “c,” shall be treated in accordance with this subparagraph. paragraph 75.57(9)“c.” Nonrecurring lump sum income shall be considered as income in the budget month and considered in the eligibility determination for the benefit month, unless the income is exempt. Nonrecurring lump sum unearned income is defined as a payment in the nature of a windfall, for example, an inheritance, an insurance settlement for pain and suffering, an insurance death benefit, a gift, lottery winnings, or a retroactive payment of benefits, such as social security, job insurance or workers’ compensation. The lump sum shall be prorated and considered in the eligibility determination by dividing the nonrecurring lump sum plus other countable income received in the month the lump sum was received by the standard of need in effect for the household size in accordance with subrule 75.58(1). The resulting number of months shall be called the “proration period.” Any income remaining after this calculation shall be applied as income to the first month following the proration period and disregarded as income thereafter.

Amend subrule 75.1(35), paragraphs “i” and “j,” as follows:

i. Reviews. Reviews of eligibility shall be made for SSI–related, CMAP–related, and FMAP–related medically needy recipients with a zero spenddown as often as circumstances indicate but in no instance shall the period of time between reviews exceed 12 months.

SSI–related, CMAP–related, and FMAP–related medically needy persons shall complete Form 470–3118, Medically Needy Recertification/State Supplementary and Medicaid Review, as part of the review process when requested to do so by the county office.

j. Redetermination. When an SSI–related, CMAP–related, or FMAP–related recipient who has had ongoing eligibility because of a zero spenddown has income that exceeds the MNIL, a redetermination of eligibility shall be completed to change the recipient’s eligibility to a two–month certification with spenddown. This redetermination shall be effective the month the income exceeds the MNIL or the first month following timely notice.

(1) and (2) No change.

ITEM 2. Amend rule 441—75.25(249A), definitions of “certification period” and “ongoing eligibility,” as follows:

“Certification period” for medically needy shall mean the period of time not to exceed six consecutive months in which a person is eligible without a spenddown obligation, or not to exceed two consecutive months in which a person is conditionally eligible for Medicaid as medically needy.

“Ongoing eligibility” for medically needy shall mean that eligibility continues for an SSI–related, CMAP–related, or FMAP–related medically needy person with a zero spenddown.

ITEM 3. Amend rule 441—75.50(249A) as follows:

Adopt the following new definition in alphabetical order:

“Application period” means the months beginning with the month in which the application is considered to be filed, through and including the month in which an eligibility determination is made.

Rescind the definitions of “report month,” “retrospective budgeting,” and “suspension.”

ITEM 4. Amend rule 441—75.51(249A) as follows:

441—75.51(249A) Reinstatement of eligibility. Eligibility for the family medical assistance program (FMAP) and FMAP–related programs shall be reinstated without a new application when all necessary information is provided at least three working days before the effective date of cancellation and eligibility can be reestablished, except as provided in the transitional Medicaid program in accordance with subparagraph 75.1(31)“j”(2).

Assistance may be reinstated without a new application when all necessary information is provided after the third working day but before the effective date of cancellation and eligibility can be reestablished before the effective date of cancellation.

When all eligibility factors are met, assistance shall be reinstated when a completed Public Assistance Eligibility Report, Form PA–2140–0, or a Review/Recertification Eligibility Document, Form 470–2881, is received by the county office within ten days of the date a cancellation notice is sent to the recipient because the form was incomplete or not returned.

ITEM 5. Amend rule 441—75.52(249A) as follows:

Amend subrules 75.52(1) and 75.52(3) as follows:

75.52(1) Reviews. Eligibility factors shall be reviewed at least every six months annually for the family medical assistance program and family medical assistance–related programs. A semiannual review shall be conducted using information contained in and verification supplied with Form 470–0455, Public Assistance Eligibility Report. A face–to–face interview shall be conducted at least annually at thetime of a review for adults using information contained in and verification supplied with Form 470–2881, Review/Recertification Eligibility Document.

75.52(3) Forms. Information for semiannual reviews shall be submitted on Form PA–2140–0, Public Assistance Eligibility Report (PAER). Information for the annual face–to–face determination interview shall be submitted on Form 470–2881, Review/Recertification Eligibility Document (RRED). When the client has completed Form PA–2207–0 470–0462, Public Assistance Application, for another purpose, this form may be used as the review document for the semiannual or annual review.

Amend subrule 75.52(4), introductory paragraph and paragraph “b,” as follows:

75.52(4) Recipient responsibilities. Responsibilities of recipients (including individuals in suspension status). For the purposes of this subrule, recipients shall include persons who received assistance subject to recoupment because the persons were ineligible.

b. The recipient shall complete Form PA–2140–0, Public Assistance Eligibility Report (PAER), or Form 470–2881, Review/Recertification Eligibility Document (RRED), when requested by the county office in accordance with these rules. Either The form will shall be supplied as needed to the recipient by the department. The department shall pay the cost of postage to return the form. When the form is issued in the department’s regular end–of–month mailing, the recipient shall return the completed form to the county office by the fifth calendar day of the report month. When the form is not issued in the department’s regular end–of–month mailing, the recipient shall return the completed form to the county office by the seventh day after the date it is mailed by the department. The county office shall supply the recipient with a PAER or a RRED upon request. Failure to return a completed form shall result in cancellation of assistance. A completed form is a form with all items answered, signed, dated no earlier than the first day of the budget month and accompanied by verification as required in paragraphs 75.57(1)“f” and 75.57(2)“l.”

Amend paragraph 75.52(4)“c” by amending the introductory paragraph and adopting new subparagraph (10) as follows:

c. The recipient, or an individual being added to the existing eligible group, shall timely report any change in the following circumstances at the annual review or upon the addition of an individual to the eligible group:

Further amend subrule 75.52(4) by rescinding paragraphs “d” and “e,” and adopting the following new paragraphs “d” to “h”:

d. All recipients shall timely report any change in the following circumstances at any time:

(1) Members of the household.

(2) Change of mailing or living address.

(3) Sources of income.

(4) Health insurance premiums or coverage.

e. Recipients described at subrule 75.1(35) shall also timely report any change in income from any source and any change in care expenses at any time.

f. A report shall be considered timely when made within ten days from the date:

(1) A person enters or leaves the household.

(2) The mailing or living address changes.

(3) A source of income changes.

(4) A health insurance premium or coverage change is effective.

(5) Of any change in income.

(6) Of any change in care expenses.

g. When a change is not reported as required in paragraphs 75.52(4)“c” through “e,” any excess Medicaid paid shall be subject to recovery.

h. When a change in any circumstance is reported, its effect on eligibility shall be evaluated and eligibility shall be redetermined, if appropriate, regardless of whether the report of the change was required in paragraphs 75.52(4)“c” through “e.”

Amend subrule 75.52(5), paragraph “a,” as follows:

a. Any change not reported prospectively in the budget month and reported on the Public Assistance Eligibility Report (PAER), Form PA–2140–0, or the Review/Recertification Eligibility Document (RRED), Form 470–2881, shall be effective for the corresponding benefit month. When the change creates ineligibility for more than one month, eligibility under the current coverage group shall be canceled and an automatic redetermination of eligibility shall be completed in accordance with rule 441—76.11(249A).

Further amend subrule 75.52(5) by rescinding and reserving paragraph “b.”

Amend subrule 75.52(5), paragraph “c,” as follows:

c. When an individual included in the eligible group becomes ineligible, that individual’s needs shall be removed prospectively effective the first of the next month unless the action must be delayed due to timely notice requirements at rule 441—7.6(217).

ITEM 6. Amend rule 441—75.57(249A) as follows:

Amend the introductory paragraph as follows:

441—75.57(249A) Income. When determining initial and ongoing eligibility for the family medical assistance program (FMAP) and FMAP–related Medicaid coverage groups, all unearned and earned income, unless specifically exempted, disregarded, deducted for work expenses, or diverted as defined in these rules, shall be considered in determining initial and continuing eligibility. Unless otherwise specified at rule 441—75.1(249A), the determination of initial eligibility is a three–step process. Initial eligibility shall be granted only when (1) the countable gross nonexempt unearned and earned income received by the eligible group and available to meet the current month’s needs is no more than 185 percent of living costs as identified in the schedule of needs at subrule 75.58(2) for the eligible group (Test 1); (2) the countable net earned and unearned income is less than the schedule of living costs as identified in the schedule of needs at subrule 75.58(2) for the eligible group (Test 2); and (3) the countable net unearned and earned income, after applying allowable disregards, is less than the schedule of basic needs as identified at subrule 75.58(2) for the eligible group (Test 3). The determination of continuing eligibility is a two–step process. Continuing eligibility shall be granted only when (1) countable gross nonexempt income, as described for initial eligibility, does not exceed 185 percent of the living costs as identified in the schedule of needs at subrule 75.58(2) for the eligible group (Test 1); and (2) countable net unearned and earned income is less than the schedule of basic needs as identified in the schedule of needs at subrule 75.58(2) for the eligible group (Test 2). Child support assigned to the department in accordance with 441—subrule 41.22(7) shall be considered unearned income for the purpose of determining continuing eligibility, except as specified at paragraphs 75.57(1)“e,” 75.57(6)“u,” and 75.57(7)“o.” Expenses for care of children or disabled adults, deductions, and diversions shall be allowed when verification is provided. The county office shall return all verification to the applicant or recipient.

Amend subrule 75.57(6), paragraph “ab,” as follows:

ab. Deposits into an individual development account (IDA) when determining eligibility. The amount of the deposit is exempt as income and shall not be used in the 185 percent eligibility test. The deposit Deposits shall be deducted from nonexempt earned and unearned income that the client receives in the same budget month beginning with the month following the month in which the deposit is made verification that deposits have begun is received. To allow a deduction, verification of the deposit shall be provided by the end of the report month or the extended filing date, whichever is later. The client shall be allowed a deduction only when the deposit is made from the client’s money. The earned income deductions at paragraphs 75.57(2)“a,” “b,” and “c” shall be applied to nonexempt earnings from employment or net profit from self–employment that remains after deducting the amount deposited into the account. Allowable deductions shall be applied to any nonexempt unearned income that remains after deducting the amount of the deposit. If the client has both nonexempt earned and unearned income, the amount deposited into the IDA account shall first be deducted from the client’s nonexempt unearned income. Deposits shall not be deducted from earned or unearned income that is exempt.

Amend subrule 75.57(7) by rescinding and reserving paragraphs “o,” “p,” “r,” and “aa.”

Further amend subrule 75.57(7), paragraph “v,” as follows:

v. Retrospective income Income attributed to an unmarried, underage parent in accordance with paragraph 75.57(8)“c” effective the first day of the month following the month in which the unmarried, underage parent turns age 18 or reaches majority through marriage. When the unmarried, underage parent turns 18 on the first day of a month, the retrospective income of the self–supporting parents becomes exempt as of the first day of that month.

Amend subrule 75.57(9) as follows:

Amend paragraph “a” as follows:

a. Initial and ongoing eligibility. Both initial and ongoing eligibility shall be based on a projection of income based on the best estimate of future income.

(1) At the time of Upon application for which a face–to–face interview is completed pursuant to 441—subrule 76.2(1), all earned and unearned income received and anticipated to be received by the eligible group during the month the decision is made 30 days prior to the interview shall be considered to determine eligibility, except income which is exempt used to project future income unless the applicant provides verification that those 30 days are not indicative of future income. Upon application for which a face–to–face interview is not completed pursuant to 441—subrule 76.2(1), all earned and unearned income received by the eligible group during the 30 days prior to the application date shall be used to project future income unless the applicant provides verification that those 30 days are not indicative of future income. If the applicant provides verification that the 30–day period specified above is not indicative of future income, income from a longer period or verification of anticipated income from the income source may be used to project future income. When income is prorated in accordance with subparagraph 75.57(9)“c”(1) and paragraph 75.57(9)“i,” the prorated amount is counted as income received in the month of decision. Allowable work expenses during the month of decision shall be deducted from earned income, except when determining eligibility under the 185 percent test defined at rule 441—75.57(249A). The determination of initial eligibility in the month of decision is a three–step process as described at rule 441—75.57(249A).

(2) When countable gross nonexempt earned and unearned income in the month of decision, or in any other month after assistance is approved, exceeds 185 percent of the schedule of living costs (Test 1), as identified at subrule 75.58(2) for the eligible group, eligibility does not exist under any coverage group for which these income tests apply. Countable gross income means nonexempt gross income, as defined at rule 441—75.57(249A), without application of any disregards, deductions, or diversions. When the countable gross nonexempt earned and unearned income in the month of decision equals or is less than 185 percent of the schedule of living costs for the eligible group, initial eligibility under the schedule of living costs (Test 2) shall then be determined. Initial eligibility under the schedule of living costs is determined without application of the 50 percent earned income disregard as specified at paragraph 75.57(2)“c.” All other appropriate exemptions, deductions and diversions are applied. Countable income is then compared to the schedule of basic needs (Test 3) for the eligible group. When countable net earned and unearned income in the month of decision equals or exceeds the schedule of basic needs for the eligible group, eligibility does not exist under any coverage group for which these income tests apply.

(3) When the countable net income in the month of decision is less than the schedule of living costs (Test 2) for the eligible group, the 50 percent earned income disregards disregard at paragraph 75.57(2)“c” shall be applied when there is eligibility for these disregards this disregard. When countable net earned and unearned income in the month of decision, after application of the earned income disregards at paragraph 75.57(2)“c” and all other appropriate exemptions, deductions, and diversions, equals or exceeds the schedule of basic needs (Test 3) for the eligible group, eligibility does not exist under any coverage group for which these tests apply. When the countable net income in the month of decision is less than the payment standard for the eligible group, the application shall be approved.

(4) The family composition for any month before the month of decision circumstances shall be considered individually, based upon the family composition anticipated circumstances during each month.

(5) Eligibility shall be calculated prospectively for the initial two months with one exception: Income for the first and second months of eligibility shall be considered retrospectively when the applicant was a recipient for the two immediately preceding eligibility months.

(6) Income considered for prospective budgeting shall be the best estimate, based on knowledge of current and past circumstances and reasonable expectations of future circumstances. When income received weekly or biweekly (once every two weeks) is projected for future months, it shall be projected by adding all income received in the time period being used and dividing the result by the number of instances of income received in that time period. The result shall be multiplied by four if the income is received weekly, or by two if the income is received biweekly, regardless of the number of weekly or biweekly payments to be made in future months.

(7) Work expense for care, as defined at paragraph 75.57(2)“b,” shall be the average allowable care expense expected to be billed or otherwise expected to become due during the budget a month. The 20 percent earned income deduction for each wage earner, as defined at paragraph 75.57(2)“a,” and the 50 percent work incentive deduction, as defined at paragraph 75.57(2)“c,” shall be allowed.

Rescind and reserve paragraph “b.”

Amend paragraph “c” as follows:

c. Lump sum income.

(1) Lump Recurring lump sum income other than nonrecurring. Recurring lump sum earned and unearned income, except for the income of the self–employed, shall be prorated over the number of months for which the income was received and applied to the eligibility determination for the same number of months. Income received by an individual employed under a contract shall be prorated over the period of the contract. Income received at periodic intervals or intermittently shall be prorated over the period covered by the income and applied to the eligibility determination for the same number of months, except periodic or intermittent income from self–employment shall be treated as described at paragraph 75.57(9)“i.” When the lump sum income is earned income, appropriate disregards, deductions and diversions shall be applied to the monthly prorated income. Income is prorated when a recurring lump sum is received at any time before the month of decision and is anticipated to recur; or a lump sum is received during the month of decision or any time during receipt of assistance.

(2) Nonrecurring lump sum income. Moneys received as a nonrecurring lump sum, except as specified in subrules 75.56(4) and 75.56(7) and at paragraphs 75.57(8)“b” and “c,” shall be treated in accordance with this rule. Nonrecurring lump sum income includes an inheritance, an insurance settlement or tort recovery, an insurance death benefit, a gift, lottery winnings, or a retroactive payment of benefits, such as social security, job insurance, or workers’ compensation. Nonrecurring lump sum income shall be considered as income in the budget month of receipt and counted in computing eligibility in the benefit month, unless the income is exempt. When countable income exclusive of the any family investment program grant but including countable lump sum income exceeds the needs of the eligible group under their current coverage group, the countable lump sum income shall be prorated. The number of full months for which a monthly amount of the lump sum shall be counted as income in the eligibility determination is derived by dividing the total of the lump sum income and any other countable income received in the month the lump sum was received by the schedule of living costs, as identified at subrule 75.58(2), for the eligible group. This period of time is referred to as the period of proration.

Any income remaining after this calculation shall be applied as income to the first month following the period of ineligibility proration and disregarded as income thereafter. The period of proration shall begin with the month following a ten–day notice of adverse action when the receipt of the lump sum was timely reported. The period of proration shall begin with the month following the receipt of the lump sum when the receipt of the lump sum was not timely reported. The period of proration shall be shortened when the schedule of living costs as defined at subrule 75.58(2) increases. The period of proration shall be shortened by the amount which is no longer available to the eligible group due to a loss, a theft, or because the person controlling the lump sum no longer resides with the eligible group and the lump sum is no longer available to the eligible group.

The period of proration shall also be shortened when there is an expenditure of the lump sum made for the following circumstances unless there was insurance available to meet the expense: payments made on medical services for the former eligible group or their dependents for services listed in 441—Chapters 78, 81, 82, and 85 at the time the expense is reported to the department; the cost of necessary repairs to maintain habitability of the homestead requiring the spending of over $25 per incident; cost of replacement of exempt resources as defined in subrule 75.56(1) due to fire, tornado, or other natural disaster; or funeral and burial expenses. The expenditure of these funds shall be verified. A dependent is an individual who is claimed or could be claimed by another individual as a dependent for federal income tax purposes.

When countable income, including the lump sum income, is less than the needs of the eligible group in accordance with the provisions of their current coverage group, the lump sum shall be counted as income for the budget month of receipt. For purposes of applying the lump sum provision, the eligible group is defined as all eligible persons and any other individual whose lump sum income is counted in determining the period of proration. During the period of proration, individuals not in the eligible group when the lump sum income was received may be eligible as a separate eligible group. Income of this eligible group plus income, excluding the lump sum income already considered, of the parent or other legally responsible person in the home shall be considered as available in determining eligibility.

Amend paragraph “e” as follows:

e. In any month for which an individual is determined eligible to be added to a currently active family medical assistance (FMAP) or FMAP–related Medicaid case, the individual’s needs, income, and resources shall be included. When adding an individual to an existing eligible group, any income of that individual shall be considered prospectively for the initial two months of that individual’s eligibility and retrospectively for subsequent months. Any income considered in prospective budgeting shall be considered in retrospective budgeting only when the income is expected to continue. The needs, income, and resources of an individual determined to be ineligible to remain a member of the eligible group shall be removed prospectively effective the first of the following month if the timely notice of adverse action requirements as provided at 441—subrule 76.4(1) can be met.

Rescind and reserve paragraph “f.”

ITEM 7. Amend rule 441—76.2(249A) as follows:

Rescind and reserve subrule 76.2(4).

Amend subrule 76.2(5) as follows:

76.2(5) Reporting of changes. The applicant shall report no later than at the time of the face–to–face interviewany change as defined at 441—paragraph 75.52(4)“c” whichoccurs after the application was signed. Any change whichoccurs Changes that occur after the face–to–face interview shall be reported by the applicant within five days from thedate the change occurred. in accordance with paragraph 75.52(4)“c.”

ITEM 8. Amend rule 441—76.7(249A) as follows:

441—76.7(249A) Reinvestigation. Reinvestigation shall be made as often as circumstances indicate but in no instance shall the period of time between reinvestigations exceed 12 months.

The recipient shall supply, insofar as the recipient is able, additional information needed to establish eligibility within five working days from the date a written request is issued. The recipient shall give written permission for the release of information when the recipient is unable to furnish information needed to establish eligibility. Failure to supply the information or refusal to authorize the county office to secure information from other sources shall serve as a basis for cancellation of Medicaid.

Eligibility criteria for persons whose eligibility for Medicaid is related to the family medical assistance program shall be reviewed according to policies governing monthly and nonmonthly reporters found in rule 441—75.52(249A)except for pregnant women who establish eligibility un–der 441—subrule 75.1(15) or 75.1(28), or rule 441— 75.18(249A). These pregnant women shall be exempt from the policies found in 441—subrule 75.52(1).

Persons whose eligibility for Medicaid is related to supplemental security income shall complete Form 470–3118, Medically Needy Recertification/State Supplementary and Medicaid Review, as part of the reinvestigation process when requested to do so by the county office.

The review for foster children or children in subsidized adoption shall be completed on Form 470–2914, Foster Care and Subsidized Adoption Medicaid Review, according to the time schedule of the family medical assistance program or supplemental security income program for disabled children, as applicable.

ITEM 9. Amend subrule 76.10(2) as follows:

76.10(2) An applicant or recipient eligible for Medicaid because of the family medical assistance program (FMAP) income and resource policies shall report changes in accordance with subrule 76.2(5) and 441—paragraphs 75.52(5)“a” and “b.” 441—paragraphs 75.52(4)“c” through “e.” After assistance has been approved, changes occurring during the month are effective the first day of the next calendar month, provided the notification requirements at rule 441—76.4(249A) can be met.

Pursuant to the authority of Iowa Code section 505.8 and 2000 Iowa Acts, Senate File 2126, the Insurance Division gives Notice of Intended Action to amend Chapter 35, “Accident and Health Insurance,” Chapter 71, “Small Group Health Benefit Plans,” and Chapter 75, “Iowa Individual Health Benefit Plans,” Iowa Administrative Code.

The proposed amendments set forth the requirements for providing contraceptive coverage for prescription drugs and devices in large, small group, and individual health insurance plans regulated by the Iowa Insurance Division. Coverage of such prescription drugs and devices is a mandatory benefit in the large and small group health benefit plans. A mandatory offer of such coverage is required in the individual health benefit plans.

Any person may make written comments on the proposed amendments on or before August 1, 2000. Comments should be directed to Susan E. Voss, Deputy Insurance Commissioner, Insurance Division, 330 Maple Street, Des Moines, Iowa 50319. Comments may also be transmitted by E–mail to susan.voss@comm6.state.ia.us or by fax to (515) 281–5692.

A public hearing will be held at 10 a.m. on August 1, 2000, at the offices of the Insurance Division, 330 Maple Street, Des Moines, Iowa 50319. Persons wishing to provide oral comments should contact Susan Voss no later than July 31, 2000, to be placed on the agenda.

These amendments are intended to implement 2000 Iowa Acts, Senate File 2126.

The following amendments are proposed.

ITEM 1. Amend 191—Chapter 35 by adopting the following new rule:

35.39(1) A carrier or organized delivery system that provides benefits for outpatient prescription drugs or devices shall provide benefits for prescription contraceptive drugs or prescription contraceptive devices which prevent conception and are approved by the United States Food and Drug Administration or generic equivalents approved as substitutable by the United States Food and Drug Administration.

35.39(2) A carrier or organized delivery system is not required to provide benefits for over–the–counter contraceptive drugs or contraceptive devices that do not require a prescription for purchase.

35.39(3) A contraceptive drug or contraceptive device does not include surgical services intended for sterilization, including, but not limited to, tubal ligation or vasectomy.

35.39(4) A carrier or organized delivery system shall be required to provide benefits for services related to outpatient contraceptive services for the purpose of preventing conception if the policy or contract provides benefits for other outpatient services provided by a health care professional.

35.39(5) A carrier or organized delivery system shall provide benefits for a physical examination performed in the course of prescribing a contraceptive drug or contraceptive device. In the event a carrier or organized delivery system does not provide benefits for a routine physical examination, the carrier or organized delivery system shall determine that portion of a physical examination which relates solely to the contraceptive drug or contraceptive device and provide benefits for that portion of the physical examination.

This rule is intended to implement 2000 Iowa Acts, Senate File 2126.

ITEM 2. Amend subrule 71.14(6) as follows:

71.14(6) Oral Prescription oral contraceptives and contraceptive devices that are approved by the United States Food and Drug Administration are to be covered in both policy forms. Coverage for alternative forms of contraception is to be reviewed based upon medical necessity.

ITEM 3. Amend 191—Chapter 71 by adopting the following new rule:

71.24(1) A carrier or organized delivery system that provides benefits for outpatient prescription drugs or devices shall provide benefits for prescription contraceptive drugs or prescription contraceptive devices which prevent conception and are approved by the United States Food and Drug Administration or generic equivalents approved as substitutable by the United States Food and Drug Administration.

71.24(2) A carrier or organized delivery system is not required to provide benefits for over–the–counter contraceptive drugs or contraceptive devices that do not require a prescription for purchase.

71.24(3) A contraceptive drug or contraceptive device does not include surgical services intended for sterilization, including, but not limited to, tubal ligation or vasectomy.

71.24(4) A carrier or organized delivery system shall be required to provide benefits for services related to outpatient contraceptive services for the purpose of preventing conception if the policy or contract provides benefits for other outpatient services provided by a health care professional.

71.24(5) A carrier or organized delivery system shall provide benefits for a physical examination performed in the course of prescribing a contraceptive drug or contraceptive device. In the event a carrier or organized delivery system does not provide benefits for a routine physical examination, the carrier or organized delivery system shall determine that portion of a physical examination which relates solely to the contraceptive drug or contraceptive device and provide benefits for that portion of the physical examination.

This rule is intended to implement 2000 Iowa Acts, Senate File 2126.

ITEM 4. Amend subrule 75.10(4) as follows:

75.10(4) Oral Prescription oral contraceptives and contraceptive devices that are approved by the United States Food and Drug Administration are to be covered in both policy forms. Coverage for alternative forms of contraception is to be reviewed based upon medical necessity.

ITEM 5. Amend 191—Chapter 75 by adopting the following new rule:

75.18(1) A carrier or organized delivery system that provides benefits for outpatient prescription drugs or devices shall make available benefits for prescription contraceptive drugs or prescription contraceptive devices which prevent conception and are approved by the United States Food and Drug Administration or generic equivalents approved as substitutable by the United States Food and Drug Administration.

75.18(2) A carrier or organized delivery system is not required to offer benefits for over–the–counter contraceptive drugs or contraceptive devices that do not require a prescription for purchase.

75.18(3) A contraceptive drug or contraceptive device does not include surgical services intended for sterilization, including, but not limited to, tubal ligation or vasectomy.

75.18(4) A carrier or organized delivery system shall make available benefits for services related to outpatient contraceptive services for the purpose of preventing conception if the policy or contract provides benefits for other outpatient services provided by a health care professional.

75.18(5) A carrier or organized delivery system shall make available benefits for a physical examination performed in the course of prescribing a contraceptive drug or contraceptive device. In the event a carrier or organized delivery system does not provide benefits for a routine physical examination, the carrier or organized delivery system shall determine that portion of a physical examination which relates solely to the contraceptive drug or contraceptive device and make available benefits for that portion of the physical examination.

This rule is intended to implement 2000 Iowa Acts, Senate File 2126.

Pursuant to the authority of Iowa Code sections 17A.3 and 147.76, the Board of Nursing hereby gives Notice of Intended Action to amend Chapter 2, “Nursing Education Programs,” Iowa Administrative Code.

This amendment amends the academic qualifications and distribution of faculty teaching in master’s programs with a nursing major.

Any interested person may make written comments or suggestions on or before August 1, 2000. Such written materials should be directed to the Executive Director, Board of Nursing, RiverPoint Business Park, 400 S.W. 8th Street, Suite B, Des Moines, Iowa 50309-4685. Persons who want to convey their views orally should contact the ExecutiveDirector at (515)281-3256, or in the Board office at 400S.W. 8th Street, by appointment.

This amendment is intended to implement Iowa Code section 152.5.

The following amendment is proposed.

Rescind subrule 2.6(2), paragraph “c,” subparagraph (3), and insert in lieu thereof the following new subparagraph (3):

(3) A registered nurse hired to teach in a master’s program shall hold a master’s or doctoral degree with a major in nursing at the time of hire. A registered nurse teaching in a clinical specialty area shall hold a master’s degree with a major in nursing, advanced level certification by a national professional nursing organization approved by the board in the clinical specialty area in which the individual teaches, and current registration as an advanced registered nurse practitioner according to the laws of the state(s) in which the individual teaches. Faculty preparation at the doctoral or terminal degree level shall be consistent with the mission of the program.

Pursuant to the authority of Iowa Code sections 17A.3 and 147.76, the Board of Nursing hereby gives Notice of Intended Action to adopt amendments to Chapter 4, “Discipline,” Iowa Administrative Code.

These amendments provide standards for the Board for the issuance of investigatory or contested case subpoenas.

Any interested person may make written comments or suggestions on or before August 1, 2000. Such written materials should be directed to the Executive Director, Board of Nursing, RiverPoint Business Park, 400 S.W. 8th Street, Suite B, Des Moines, Iowa 50309–4685. Persons who want to convey their views orally should contact the ExecutiveDirector at (515)281–3256, or in the Board office at 400S.W. 8th Street, by appointment.

These amendments are intended to implement Iowa Code chapters 17A, 147, 152 and 272C.

The following amendments are proposed.

ITEM 1. Rescind rule 655—4.3(17A,147,152,272C) and adopt in lieu thereof the following new rule:

655—4.3(17A,147,152,272C) Issuance of investigatory subpoenas. The board shall have the authority to issue an investigatory subpoena in accordance with the provisions of Iowa Code section 17A.13.

4.3(1) The executive director or designee may, upon the written request of a board investigator or on the executive director’s own initiative, subpoena books, papers, records and other real evidence which is necessary for the board to decide whether to institute a contested case proceeding. In the case of a subpoena for mental health records, each of the following conditions shall be satisfied prior to the issuance of the subpoena:

a. The nature of the complaint reasonably justifies the issuance of a subpoena;

b. Adequate safeguards have been established to prevent unauthorized disclosure;

c. An express statutory mandate, articulated public policy, or other recognizable public interest favors access; and

d. An attempt was made to notify the patient and to secure an authorization from the patient for release of the rec–ords at issue.

4.3(2) A written request for a subpoena or the executive director’s written memorandum in support of the issuance of a subpoena shall contain the following:

a. The name and address of the person to whom the subpoena will be directed;

b. A specific description of the books, papers, records or other real evidence requested;

c. An explanation of why the documents sought to be subpoenaed are necessary for the board to determine whether it should institute a contested case proceeding; and

d. In the case of a subpoena request for mental healthrecords, confirmation that the conditions described in subrule 4.3(1) have been satisfied.

4.3(3) Each subpoena shall contain the following:

a. The name and address of the person to whom the subpoena is directed;

b. A description of the books, papers, records or other real evidence requested;

c. The date, time and location for production or inspection and copying;

d. The time within which a motion to quash or modify the subpoena must be filed;

e. The signature, address and telephone number of the executive director or designee;

f. The date of issuance;

g. A return of service.

4.3(4) Any person who is aggrieved or adversely affected by compliance with the subpoena and who desires to challenge the subpoena must, within 14 days after service of the subpoena, or before the time specified for compliance if such time is less than 14 days, file with the board a motion to quash or modify the subpoena. The motion shall describe the legal reasons why the subpoena should be quashed or modified and may be accompanied by legal briefs or factual affidavits.

4.3(5) Upon receipt of a timely motion to quash or modify a subpoena, the board may request an administrative law judge to issue a decision or the board may issue a decision. Oral argument may be scheduled at the discretion of the board or the administrative law judge. The administrative law judge or the board may quash or modify the subpoena, deny the motion, or issue an appropriate protective order.

4.3(6) A person aggrieved by a ruling of an administrative law judge who desires to challenge that ruling must appeal the ruling to the board by serving on the executive director, either in person or by certified mail, a notice of appeal within ten days after service of the decision of the administrative law judge.

4.3(7) If the person contesting the subpoena is not the person under investigation, the board’s decision is final for purposes of judicial review. If the person contesting the subpoena is the person under investigation, the board’s decision is not final for purposes of judicial review until either (1) the person is notified that the investigation has been concluded with no formal action, or (2) there is a final decision in the contested case.

ITEM 2. Rescind rule 655—4.25(17A) and adopt in lieu thereof the following new rule:

4.25(1) Subpoenas issued in a contested case may compel the attendance of witnesses at deposition or hearing and may compel the production of books, papers, records, and other real evidence. A command to produce evidence or to permit inspection may be joined with a command to appear at deposition or hearing or may be issued separately. Subpoenas may be issued by the executive director or designee upon written request. A request for a subpoena of mental health records must confirm that the conditions described in subrule 4.3(1) have been satisfied prior to the issuance of the subpoena.

4.25(2) A request for a subpoena shall include the following information, as applicable, unless the subpoena is requested to compel testimony or documents for rebuttal or impeachment purposes:

a. The name, address and telephone number of the person requesting the subpoena;

b. The name and address of the person to whom the subpoena shall be directed;

c. The date, time and location at which the person shall be commanded to attend and give testimony;

d. Whether the testimony is requested in connection with a deposition or hearing;

e. A description of the books, papers, records or other real evidence requested;

f. The date, time and location for production or inspection and copying; and

g. In the case of a subpoena request for mental healthrecords, confirmation that the conditions described in subrule 4.3(1) have been satisfied.

4.25(3) Each subpoena shall contain, as applicable, the following:

a. The caption of the case;

b. The name, address and telephone number of the person who requested the subpoena;

c. The name and address of the person to whom the subpoena is directed;

d. The date, time and location at which the person is commanded to appear;

e. Whether the testimony is commanded in connection with a deposition or hearing;

f. A description of the books, papers, records or other real evidence the person is commanded to produce;

g. The date, time and location for production or inspection and copying;

h. The time within which the motion to quash or modify the subpoena must be filed;

i. The signature, address and telephone number of the executive director or designee;

j. The date of issuance;

k. A return of service.

4.25(4) Unless a subpoena is requested to compel testimony or documents for rebuttal or impeachment purposes, the executive director or designee shall mail copies of all subpoenas to the parties to the contested case. The person who requested the subpoena is responsible for serving the subpoena upon the subject of the subpoena.

4.25(5) Any person who is aggrieved or adversely affected by compliance with the subpoena or any party to the contested case who desires to challenge the subpoena must, within 14 days after service of the subpoena, or before the time specified for compliance if such time is less than 14 days, file with the board a motion to quash or modify the subpoena. The motion shall describe the legal reasons why the subpoena should be quashed or modified and may be accompanied by legal briefs or factual affidavits.

4.25(6) Upon receipt of a timely motion to quash or modify a subpoena, the board may request an administrative law judge to issue a decision, or the board may issue a decision. Oral argument may be scheduled at the discretion of the board or the administrative law judge. The administrative law judge or the board may quash or modify the subpoena, deny the motion, or issue an appropriate protective order.

4.25(7) A person aggrieved by a ruling of an administrative law judge who desires to challenge that ruling must appeal the ruling to the board by serving on the executive director, either in person or by certified mail, a notice of appeal within ten days after service of the decision of the administrative law judge.

4.25(8) If the person contesting the subpoena is not the person under investigation, the board’s decision is final for purposes of judicial review. If the person contesting the subpoena is the person under investigation, the board’s decision is not final for purposes of judicial review until there is a final decision in the contested case.

Pursuant to the authority of Iowa Code sections 17A.3 and 147.76, the Board of Nursing hereby gives Notice of Intended Action to amend Chapter 6, “Nursing Practice for Registered Nurses/Licensed Practical Nurses,” Iowa Administrative Code.

These amendments require that nurses wear an identification badge which identifies the licensure status when providing direct patient care.

Any interested person may make written comments or suggestions on or before September 6, 2000. Such written materials should be directed to the Executive Director, Board of Nursing, RiverPoint Business Park, 400 S.W. 8th Street, Suite B, Des Moines, Iowa 50309-4685. Persons who want to convey their views orally should contact the Executive Director at (515)281–3256, or in the Board office at S.W. 8th Street, by appointment.

There will be a public hearing on September 6, 2000, at 5:30 p.m. in the Ballroom, Kirkwood Civic Center Hotel, Fourth and Walnut, Des Moines, Iowa. 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.

These amendments are intended to implement Iowa Code chapters 147 and 152.

The following amendments are proposed.

ITEM 1. Amend subrule 6.2(5) by adopting the following new paragraph:

f. Wearing an identification badge which clearly identifies the licensure status when providing direct patient care.

ITEM 2. Amend subrule 6.3(9) by adopting the following new paragraph:

d. Wearing an identification badge which clearly identifies the licensure status when providing direct patient care.

Pursuant to the authority of Iowa Code sections 17A.3 and 147.76, the Board of Nursing terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on February 9, 2000, as ARC 9675A, to adopt a new Chapter 15, “Uniform Waiver and Variance Rules,” Iowa Administrative Code.

The Notice proposed to adopt a new Chapter 15 to establish uniform rules providing for waivers or variances from administrative rules, in compliance with Executive Order Number 11.

The Board is terminating the rule making commenced in ARC 9675A and will renotice the proposed rules to incorporate further changes and clarifications to requirements under Executive Order Number 11.

Pursuant to the authority of Iowa Code section 97B.15, the Department of Personnel hereby gives Notice of Intended Action to amend Chapter 21, “Iowa Public Employees’ Retirement System,” Iowa Administrative Code.

The proposed amendments include the following:

1. Amend subrule 21.1(3) and paragraph 21.1(5)“c” to give IPERS’ new address.

2. Amend subrule 21.4(3), paragraph “a,” to reflect the current maximum covered wage amount.

3. Amend subparagraph 21.5(1)“a”(19) to clarify that permanent, postsecondary school employees may take part–time classes at their own schools without being excluded from IPERS coverage.

4. Amend referee exclusion, subparagraph 21.5(1)“a”(49), to exclude referees who qualify as independent contractors at all levels of public school athletic activities.

5. Add patient advocates employed pursuant to Iowa Code section 229.19 as covered employees in new subparagraph 21.5(1)“a”(50). Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 69.

6. Amend subrule 21.6(2) to rescind the $1 minimum wage reporting requirement. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 24.

7. Amend subrule 21.6(9), paragraphs “b” and “c,” to reflect new contribution rates certified by IPERS’ actuary for special service members effective July 1, 2000; paragraph “d” is also amended, pursuant to 2000 Iowa Acts, Senate File 2411, section 39, to include a new group of airport safety officers as protection occupation employees.

8. Amend rule 581—21.7(97B) to reflect new minimum charge on late contributions. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 22.

9. Adopt new paragraph 21.8(4)“e” to reflect a new four–month severance requirement for recipients of refunds. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 63.

10. Adopt new subrule 21.8(9) granting involuntarily terminated employees who take a refund and subsequently have reinstated the right to repay such refunds at a reduced cost, if the request is made within 90 days after the reinstatement ruling is rendered. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 63.

11. Adopt new subrule 21.8(10) granting members who terminate due to a disability, take a refund, and subsequently qualify for social security disability benefits the right to repay such refunds at a reduced cost if the request is made 90 days after July 1, 2000, or the date the member’s social security benefits begin if later. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 50.

12. Amend paragraph 21.9(1)“a” and adopt new paragraph 21.9(1)“c” to reflect that appeal procedures for special service members covered under 2000 Iowa Acts, Senate File 2411, section 51, are governed by new rule 581— 21.31(78GA,SF2411). Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 51.

13. Amend subrule 21.10(16) to indicate that no death benefit claim will be forfeited before January 1, 1988, the date that the federal minimum distribution laws became effective for governmental plans.

14. Adopt new subrule 21.10(18) to help staff deal with the legislatively mandated requirement that certain beneficiaries who have already received death benefits on or after January 1, 1999, may repay the prior death benefit and receive either a new lump sum amount or a monthly annuity based on the new lump sum amount. There will be tax consequences to some members who receive distributions under the old rules and then wish to receive the new retirement allowance in a subsequent calendar year. Some of these tax consequences cannot be altered by IPERS. These may include, for example, paying taxes on the original lump sum distribution and taxes on any retroactive payments used to offset a beneficiary’s repayment obligation. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, sections 53 and 75.

15. Amend subrule 21.11(2) to make it easier for beneficiaries to provide acceptable identification when applying for benefits.

16. Amend subrule 21.11(6), first and second unnumbered paragraphs, primarily to clarify that, in addition to the other monthly retirement allowance options, a member may take a refund instead of the default option, if IPERS is contacted within 60 days after the first payment under the default option.

17. Adopt a new unnumbered paragraph at the end of subrule 21.11(9) modifying the period of severance requirements for bona fide retirement. Under the revised rule, a member must be out of all employment with covered employers for 30 days, and out of all covered employment an additional three months. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, sections 59 and 60.

18. Amend rule 581—21.12(97B) by adopting language that authorizes service credit for a third quarter in which no wages are reported if wages are reported in the preceding second quarter, or the individual was on an authorized leave of absence at the end of the preceding second quarter.

19. Adopt new paragraph 21.13(2)“e,” which provides that, effective for retirement FMEs in January 2001 (or such later date certified by the actuary), early retirement reductions shall be calculated by determining the number of months that the early retirement precedes the earliest normal retirement date for that member based on the member’s age and years of service, and multiplying that number by 0.25 percent. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, sections 48 and 80.

20. Amend paragraphs 21.13(6)“c,” 21.13(10)“a,” and 21.13(10)“e” to reflect that the applicable years for protection occupation members, currently 25, will be ratcheted down in several steps until they reach 22 effective July 1, 2002. The exact steps are described in new paragraph 21.13(6)“d.” Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 37.

21. Adopt new paragraph 21.13(6)“d” to reflect the applicable years and applicable percentages for protection occupation members for the adjustment period July 1, 2000, through July 1, 2003. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, sections 36 and 37.

22. Amend paragraph 21.13(7)“a” to limit the covered wage smoothing period for highly compensated employees to January 1, 2002. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 16.

23. Amend paragraph 21.13(7)“b” to limit the wage smoothing period to January 1, 2002, to limit the number of years to be included in the wage smoothing calculation to six, and to increase the covered wage smoothing trigger amount to $65,000. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, sections 16 and 17.

24. Adopt new subrule 21.13(12) to provide that members aged 70 who begin their retirement allowances before July 1, 2000, while still working, and who terminate employment after January 1, 2000, will have their benefits recalculated under the benefit formula in place when they terminate, or when they apply for a recalculation, if later. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 74.

25. Amend subrule 21.16(5) to clarify that IPERS will accept as valid leaves of absence before November 27, 1996, during which the members took refunds, primarily because many employers and employees prior to that time did not realize that a member had to terminate employment to qualify for the refund.

26. Amend subrule 21.16(6), paragraph 21.24(2)“f,” subrule 21.24(3), paragraph 21.24(5)“f,” and paragraph 21.24(6)“d” to indicate that (1) if the actuary uses gender–distinct mortality tables in its valuation assumptions, the plan will use blended mortality tables in preparing service purchase costs, so that similarly situated males and females will not be paying different service purchase costs; and (2) service purchase costs are only valid for six months from the date they are delivered to members.

27. Amend subrule 21.19(1) to establish $14,000 as the maximum amount that a retiree under the age of 65 can earn in covered employment (unless the applicable social security limit is greater) before any reduction in benefits occurs. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 33.

28. Amend the catchwords in rule 581—21.22(97B) to distinguish it from new rule 581—21.31(78GA,SF2411).

29. Adopt new subrule 21.24(11) to permit vested and retired members to purchase service credit for periods of service in Iowa public employment for which no mandatory or optional coverage was provided. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 70.

30. Adopt new subrule 21.24(12) to permit vested or retired members to purchase service credit for periods of service as volunteers of the federal Peace Corps program, provided that the members make binding waivers of any rights to retirement credit under any other public retirement systems for such service. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 71.

31. Adopt new subrule 21.24(13) to permit vested or retired members to purchase service credit for periods of service with qualified Canadian educational institutions, provided that the members make binding waivers of any rights to retirement credit under any other public retirement systems for such service. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 68.

32. Adopt new subrule 21.24(14) to permit current and former patient advocates employed under Iowa Code section 229.19, in addition to amounts required for four quarters of wage adjustments, to purchase additional service credit for other periods of such service. The cost for each quarter of such service, if paid before July 1, 2002, will be determined under paragraphs 21.24(2)“b” through “e,” and thereafter at the actuarial cost as determined under paragraph 21.24(2)“f.” Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 69.

33. Amend subrule 21.30(3) to simplify the method for calculating FED payments. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 45.

34. Amend subrule 21.30(4) to provide that a potential FED recipient must be living in the month a FED payment is payable in order to qualify for the payment. This change is consistent with the method used for dividend payments to pre–July 1, 1990, retirees. Proposed pursuant to 2000 Iowa Acts, Senate File 2411, section 43.

35. Adopt new subrule 21.30(5) to provide that, in addition to the ten–year cap placed on the FED reserve by 2000 Iowa Acts, Senate File 2411, section 44, no transfer to the FED reserve can cause the system’s unfunded liability amortization period to exceed the limit set by the system’s funding policy in effect at the time of the proposed transfer.

36. Adopt new rule 581—21.31(78GA,SF2411) to implement the special service member disability benefit mandated by 2000 Iowa Acts, Senate File 2411, section 51. This new disability provision permits special service members to qualify for disability benefits without having to qualify for federal social security disability benefits. The provision also provides for alternative benefit formulas which may provide a greater retirement allowance than is available under the disability provisions of Iowa Code section 97B.50(2). IPERS staff will make special service member disability determinations based on the rules being adopted, in consultation with the University of Iowa Hospitals.

37. Adopt new rule 581—21.32(97B) to implement the qualified benefits arrangement authorized in Iowa Code section 97B.49I. This arrangement is designed to permit the payment of the full amount that would otherwise be payable under the plan but for the limitation of Internal Revenue Code Section 415.

There are no general waiver provisions in the proposed amendments because the amendments fall into one of the following categories: (1) there was no specific waiver authority granted in the statute being implemented; or (2) the amendments confer a benefit or remove a limitation.

Any interested person may make written suggestions or comments on these proposed amendments on or before August 1, 2000. Such written suggestions or comments should be directed to the IPERS Administrative Rules Coordinator, IPERS, P.O. Box 9117, Des Moines, Iowa 50306–9117. Persons who wish to present their comments orally may contact the IPERS Administrative Rules Coordinator at (515) 281–0020. Comments may also be submitted by fax to (515) 281–0055, or by E–mail to info@ipers.state.ia.us.

There will be a public hearing on August 1, 2000, at 9 a.m. at IPERS, 600 East Court Avenue, 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.

These amendments were also Adopted and Filed Emergency and are published herein as ARC 9971A. The content of that submission is incorporated by reference.

These amendments are intended to implement Iowa Code chapter 97B as amended by 2000 Iowa Acts, Senate File 2411.

Pursuant to the authority of Iowa Code sections 455G.4(3)“a,” the Iowa Comprehensive Petroleum Underground Storage Tank Fund Board hereby gives Notice of Intended Action to amend Chapter 11, “Remedial Claims,” Iowa Administrative Code.

The proposed amendment is intended to provide regulation of claims by the Department of Natural Resources pursuant to Iowa Code section 455G.9, subsection 1, as amended by 2000 Iowa Acts, Senate File 2433, section 15. This section of the statute allows DNR to make a claim for up to $100,000 per site for further corrective action on sites where DNR has issued a No Further Action certificate after January 31, 1997.

Public comments concerning the proposed amendment will be accepted until 4 p.m. on August 1, 2000. Interested persons may submit written or oral comments by contacting the Office of the Deputy Commissioner of Insurance, Division of Insurance, 330 Maple Street, Des Moines, Iowa 50319; telephone (515)281–5705.

This amendment does not mandate additional combined expenditures exceeding $100,000 by all affected political subdivisions or agencies and entities that contract with political subdivisions to provide services.

This amendment is intended to implement Iowa Code section 455G.9(1) as amended by 2000 Iowa Acts, Senate File 2433, section 15.

The following amendment is proposed.

Adopt the following new rule:

11.9(1) The department may make claim to the administrator for funding of corrective action in response to a high risk condition at a site which has received a no further action certificate from the department if all of the following conditions are met:

a. The no further action certificate was issued after January 31, 1997;

b. The condition necessitating the corrective action was not a result of a release that occurred after the issuance of the no further action certificate;

c. The site qualified for remedial benefits under Iowa Code section 455G.9 prior to the issuance of a no further action certificate;

d. All costs to be incurred for said corrective action will be subject to preapproval by the board or its administrator prior to being incurred.

11.9(2) No more than $100,000 shall be spent on any one eligible site under these rules.

11.9(3) These rules do not confer a legal right toreceive benefits to any owner or operator of petroleum–contaminated property or any other person.

Pursuant to the authority of Iowa Code section 147.76, the Board of Psychology Examiners hereby gives Notice of Intended Action to amend Chapter 240, “Board of Psychology Examiners,” and adopt new Chapter 241, “Continuing Education for Psychologists,” Iowa Administrative Code.

The proposed amendments rescind the current continuing education rules; adopt a new chapter for continuing education; renumber the rule regarding grounds for discipline; amend cross references to rules that are no longer in use; and revise the current examination fee.

Any interested person may make written comments on the proposed amendments no later than August 2, 2000, addressed to Rosalie Steele, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075.

The Division revised these rules according to Executive Order Number 8. The Division sent ten letters to the public for comment, and five letters were received in return. Division staff also had input on these rules. The comments received were discussed by the Board and decisions were based on need, clarity, intent and statutory authority, cost and fairness.

A public hearing will be held on August 2, 2000, from 9 to 11 a.m. in the Fifth Floor Board Conference Room, 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 proposed amendments.

These amendments are intended to implement Iowa Code section 147.76 and chapter 272C.

The following amendments are proposed.

ITEM 1. Amend subrule 240.10(2) as follows:

240.10(2) Examination fee for license to practice psychology is $150. Effective May 1, 1993, the examination fee for a license to practice is $275. The fee for the Examination for Professional Practice in Psychology is $350. Effective July 1, 2001, the fee will be $450.

ITEM 2. Rescind rule 645—240.100(272C) and renumber rule 645—240.212(272C) as 645—240.100(272C).

ITEM 3. Amend renumbered subrule 240.100(13) as follows:

240.100(13) Failure to report to the board as provided in rule 645—240.201(272C) 645—Chapter 13 any violation by another licensee of the reasons for the disciplinary action as listed in this rule.

ITEM 4. Rescind and reserve rules 645—240.101(272C) to 645—240.109(272C).

ITEM 5. Adopt new 645—Chapter 241 as follows:

CHAPTER 241
CONTINUING EDUCATION FOR PSYCHOLOGISTS

645—241.1(272C) Definitions. For the purpose of these rules, the following definitions shall apply:

“Active license” means the license of a person who is acting, functioning, and working in compliance with license requirements.

“Administrator” means the administrator of the board of psychology examiners.

“Approved program/activity” means a continuing education program/activity meeting the standards set forth in these rules.

“Audit” means the selection of licensees for verification of satisfactory completion of continuing education requirements during a specified time period.

“Board” means the board of psychology examiners.

“Continuing education” means planned, organized learning acts designed to maintain, improve, or expand a licensee’s knowledge and skills in order for the licensee to develop new knowledge and skills relevant to the enhancement of practice, education, or theory development to improve the safety and welfare of the public.

“Hour of continuing education” means a clock hour spent by a licensee in actual attendance at and completion of an approved continuing education activity.

“Inactive license” means the license of a person who is not in practice in the state of Iowa.

“Lapsed license” means a license that a person has failed to renew as required, or the license of a person who failed to meet stated obligations within a stated time.

“License” means license to practice.

“Licensee” means any person licensed to practice as a psychologist in the state of Iowa.

“Practice of psychology” means the application of established principles of learning, motivation, perception, thinking, psychophysiology and emotional relations to problems, behavior, group relations, and biobehavior, by persons trained in psychology for compensation or other personal gain. The application of principles includes, but is not limited to, counseling and the use of psychological remedial measures with persons, in groups or individually, with adjustment or emotional problems in the areas of work, family, school and personal relationships. The practice of psychology also means measuring and testing personality, mood–motivation, intelligence/aptitudes, attitudes/public opinion, and skills; and the teaching of such subject matter; and the conducting of research on the problems relating to human behavior.

241.2(1) The biennial continuing education compliance period shall extend for a two–year period beginning on July 1 of even–numbered years and ending on June 30 of even–numbered years. Each biennium, each person who is licensed to practice as a licensee in this state shall be required to complete a minimum of 40 hours of continuing education approved by the board. For the 2001 renewal cycle only, 50 hours of continuing education will be due by June 30, 2002. Continuing education credit earned from December 31, 2000, through June 30, 2001, may be used for either the 2001 renewal cycle or the following biennium. The licensee may use the earned continuing education credit hours only once. Credit may not be duplicated for both compliance periods. This applies only for the renewal biennium of 2001 and the following renewal biennium. Continuing education hours will return to 40 hours each biennium at the end of this prorated compliance period.

241.2(2) Requirements of new licensees. Those persons licensed for the first time shall not be required to complete continuing education as a prerequisite for the first renewal of their licenses. Continuing education hours acquired anytime from the initial licensing until the second license renewal may be used. The new licensee will be required to complete a minimum of 40 hours of continuing education per biennium for each subsequent license renewal.

241.2(3) Hours of continuing education credit may be obtained by attending and participating in a continuing education activity. These hours must meet the requirements herein and be approved by the board pursuant to statutory provisions and the rules that implement them.

241.2(4) No hours of continuing education shall be carried over into the next biennium except as stated for the second renewal.

241.2(5) It is the responsibility of each licensee to finance the cost of continuing education.

241.3(1) General criteria. A continuing education activity which meets all of the following criteria is appropriate for continuing education credit if it is determined by the board that the continuing education activity:

a. Constitutes an organized program of learning which contributes directly to the professional competency of the licensee;

b. Pertains to subject matters which integrally relate to the practice of the profession;

c. Is conducted by individuals who have specialized education, training and experience by reason of which said individuals should be considered qualified concerning the subject matter of the program. The application must be accompanied by a paper, manual or outline which substantively pertains to the subject matter of the program and reflects program schedule, goals and objectives. The board may request the qualifications of presenters;

d. Fulfills stated program goals, objectives, or both; and

e. Provides proof of attendance to licensees in attendance including:

(1) Date, location, course title, presenter(s);

(2) Number of program contact hours (one contact hour equals one hour of continuing education credit); and

(3) Official signature or verification by program sponsor.

241.3(2) Specific criteria.

a. Continuing education hours of credit may be obtained by:

(1) Attending programs/activities that are sponsored by the American Psychological Association and the Iowa Psychological Association.

(2) Completing academic coursework that meets the criteria set forth in the rules. Continuing education credit equivalents are as follows:

1 academic semester hour = 15 continuing education hours

1 academic quarter hour = 10 continuing education hours

(3) Conducting scholarly research or other activities that integrally relate to the practice of psychology of which the results are published in a recognized professional publication.

(4) Preparing new courses that have received prior approval from the board.

(5) Completing home study courses that issue a certificate of completion.

(6) Completing courses that are electronically transmitted and issue a certificate of completion.

(7) Attending workshops, conferences, or symposiums that meet the criteria in 645—241.3(272C).

b. A combined maximum of 20 hours of credit per biennium may be used for scholarly research and preparation of new courses.

645—241.4(272C) Reporting continuing education by licensee. At the time of license renewal, each licensee shall be required to submit a report on continuing education to the board on a board–approved form.

241.4(1) The information on the form shall include:

a. Title of continuing education activity;

b. Date(s);

c. Sponsor of the activity;

d. Number of continuing education hours earned; and

e. Teaching method used.

241.4(2) Audit of continuing education report. After each educational biennium, the board will audit a percentage of the continuing education reports before granting the renewal of licenses to those being audited.

a. The board will select licensees to be audited.

b. The licensee shall make available to the board for auditing purposes a certificate of attendance or verification for all reported activities that includes the following information:

(1) Date, location, course title, schedule (brochure, pamphlet, program, presenter(s)), and method of presentation;

(2) Number of contact hours for program attended; and

(3) Certificate of attendance or verification indicating successful completion of the course.

c. For auditing purposes, the licensee must retain the above information for two years after the biennium has end–ed.

d. Submission of a false report of continuing education or failure to meet continuing education requirements may cause the license to lapse and may result in formal disciplinary action.

e. All renewal license applications that are submitted late (after the end of the compliance period) may be subject to audit of the continuing education report.

f. Failure to receive the renewal application shall not relieve the licensee of responsibility of meeting continuing education requirements and submitting the renewal fee by the end of the compliance period.

645—241.5(272C) Reinstatement of lapsed license. Failure of the licensee to renew within 30 days after the expiration date shall cause the license to lapse. A person who allows the license to lapse cannot engage in practice in Iowa without first complying with all regulations governing reinstatement as outlined in the board rules. A person who allows the license to lapse must apply to the board for reinstatement of the license. Reinstatement of the lapsed license may be granted by the board if the applicant:

1. Submits a written application for reinstatement and statement of competence to the board;

2. Pays all the renewal fees then due;

3. Pays all the penalty fees which have been assessed by the board for failure to renew;

4. Pays the reinstatement fee; and

5. Provides evidence of satisfactory completion of continuing education requirements during the period since the license lapsed. The total number of continuing education hours required for license reinstatement is computed by multiplying 40 by the number of bienniums since the license lapsed with a maximum of 80 hours. The continuing education hours must be completed within the prior two bienniums of date of application for reinstatement.

645—241.6(272C) Continuing education waiver for active practitioners. A psychologist licensed to practice psychology shall be deemed to have complied with the continuing education requirements of this state during the period that the licensee serves honorably on active duty in the military services or as a government employee outside the United States as a practicing psychologist.

645—241.7(272C) Continuing education waiver for inactive practitioners. A licensee who is not engaged in practice in the state of Iowa may be granted a waiver of continuing education compliance and obtain a certificate of waiver upon written application to the board. The application shall contain a statement that the applicant will not engage in practice in Iowa without first complying with all regulations governing reinstatement after waiver. The application for a certificate of waiver shall be submitted upon forms provided by the board.

645—241.8(272C) Continuing education waiver for disability or illness. The board may, in individual cases involving disability or illness, grant waivers of the minimum education requirements or extension of time within which to fulfill the same or make the required reports. No waiver or extension of time shall be granted unless written application therefor shall be made on forms provided by the board and signed by the licensee and appropriate licensed health care practitioners. The board may grant waiver of the minimum educational requirements for any period of time not to exceed one calendar year from the onset of disability or illness. In the event that the disability or illness upon which a waiver has been granted continues beyond the period of waiver, the licensee must reapply for an extension of the waiver. The board may, as a condition of any waiver granted, require the applicant to make up a certain portion or all of the minimum educational requirements waived by such methods as may be prescribed by the board.

645—241.9(272C) Reinstatement of inactive practitioners. Inactive practitioners who have been granted a waiver of compliance with these rules and have obtained a certificate of waiver shall, prior to engaging in the practice of psychology in the state of Iowa, satisfy the following requirements for reinstatement.

241.9(1) Reinstatement of the inactive license may be granted by the board if the applicant:

a. Submits a written application for reinstatement to the board;

b. Pays all the renewal fees then due; and

c. Pays the reinstatement fee.

241.9(2) The applicant shall furnish in the application evidence of one of the following:

a. Full–time practice in another state of the United States or the District of Columbia and completion of continuing education for each biennium of inactive status substantially equivalent in the opinion of the board to that required under these rules; or

b. Completion of a total number of hours of approved continuing education computed by multiplying 40 by the number of bienniums that the certificate of exemption has been in effect for such applicant, with a maximum of 80 hours. The continuing education hours must be completed within the two most recent bienniums prior to the date of application for reinstatement.

645—241.10(272C) Hearings. In the event of denial, in whole or part, of any application for approval of a continuing education activity for continuing education credit, the applicant or licensee shall have the right within 20 days after the sending of the notification of denial by ordinary mail to request a hearing which shall be held within 90 days after receipt of the request for hearing. The hearing shall be conducted by the board or an administrative law judge designated by the board, in substantial compliance with the hearing procedure set forth in rule 645—11.9(17A).

These rules are intended to implement Iowa Code section 272C.2 and chapter 154B.

Pursuant to the authority of Iowa Code section 100.35, the Department of Public Safety hereby gives Notice of Intended Action to amend Chapter 5, “Fire Marshal,” Iowa Administrative Code.

Item 1 contains amendments to existing rules for residential occupancies to coordinate with the new rule for bed and breakfast inns and to clarify the applications of rules for “existing” and “new” residential occupancies according to the dates on which they were first occupied. Iowa Code Supplement section 137C.35 exempts bed and breakfast inns from the fire safety regulations which apply generally to hotels and requires the Fire Marshal to adopt regulations which apply specifically to bed and breakfast inns. Item 2 of these proposed amendments contains the fire safety regulations for bed and breakfast inns (rule 661—5.820(100)).

A public hearing on these proposed amendments will be held on September 8, 2000, at 9:30 a.m., in the Third Floor Conference Room of the Wallace State Office Building, East 9th and Grand, Des Moines, Iowa 50319. Persons may pre–sent their views orally or in writing at the public hearing. Persons who wish to make oral presentations at the public hearing should contact the Agency Rules Administrator, 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 Agency Rules Administrator 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 Agency Rules Administrator by telephone or in person at least one day prior to the public hearing.

These amendments are intended to implement Iowa Code chapter 100 and Iowa Code Supplement section 137C.35.

The following amendments are proposed.

ITEM 1. Amend rule 661—5.800(100) as follows:

5.800(1) Application. Scope. The requirements within this chapter shall apply to all new residential occupancies, including additions, alterations, or modifications. Rules 661—5.801(100) through 661—5.806(100) apply to resi–dential occupancies, except for bed and breakfast inns. In addition, rules 661—5.807(100) through 661—5.809(100) apply to residential occupancies, including bed and breakfast inns, and to all one– and two–family dwellings.

5.800(5)(2) Definitions. The following definitions apply to rules 661—5.801(100) through 661—5.820(100).

“Apartment house” is any building or portion thereof which contains three or more dwelling units.

“Atrium” is an opening through two or more floor levels other than enclosed stairways, elevators, hoistways, escalator, plumbing, electrical, air conditioning or other equipment which is closed at the top and not defined as a mall.

“Convent or monastery” is a place of residence occupied by a religious group of people, especially monks or nuns.

“Dormitories” are buildings or spaces where group sleeping accommodations are provided for guests in a series of closely associated rooms under joint occupancy and single management, such as college dormitories, fraternity houses, sorority houses, with or without meals but without individual cooking facilities.

“Guest” is any person hiring or occupying a room for living or sleeping purposes.

“Guest room” is any room or rooms used or intended to be used by a guest for sleeping purposes. Every hundred square feet of superficial floor area in a dormitory shall be considered to be a guest room.

“Hotel/motel” is any building containing six or more guest rooms intended or designed to be used or which are used, rented or hired out to be occupied or which are occupied for sleeping purposes by guests.

“Lodging or rooming house” is any building or portion thereof containing not more than five guest rooms where rent is paid in money, goods, labor or otherwise.

5.800(6) 5.801(1) Construction, height and allowable floor area.

a. General. Buildings or parts of buildings classed as residential occupancies shall be limited to the types of construction set forth in Table 5–B in rule 5.50(100) “Exits” and shall not exceed, in area or height, the limits specified in Table 8–B.

b. Special provisions. Residential occupancies more than two stories in height or having more than 3,000 square feet of floor area above the first story shall be limited to the types of construction and height in Table 8–B.

EXCEPTION: Interior nonload–bearing partitions within individual dwelling units in apartment houses and guest rooms or suites in hotels when such dwelling units, guest rooms or suites are separated from each other and from corridors by not less than one–hour fire–resistive construction may be constructed of:

1. Noncombustible materials or fire–retardant treated wood in buildings of any type of construction; or

2. Combustible framing with noncombustible materials applied to the framing in buildings of Type III or V construction.

Storage or laundry rooms that are within residential occupancies that are used in common by tenants shall be separated from the rest of the building by not less than one–hour fire–resistive occupancy separation.

5.800(7) 5.801(2) Light and ventilation. All guest rooms, dormitories and habitable rooms within a dwelling unit shall be provided with natural light by means of exterior glazed openings with an area not less than one–tenth of the floor area of such rooms with a minimum of 10 square feet. All bathrooms, water closet compartments, laundry rooms and similar rooms shall be provided with natural ventilation by means of openable exterior openings with an area not less than one–twentieth of the floor area of the rooms with a minimum of 1½ square feet.

All guest rooms, dormitories and habitable rooms within a dwelling unit shall be provided with natural ventilation by means of openable exterior openings with an area of not less than one–twentieth of the floor area of such rooms with a minimum of 5 square feet.

In lieu of required exterior openings for natural ventilation, an approved mechanical ventilating system may be provided. Such systems shall be capable of providing two air changes per hour in all guest rooms, dormitories, habitable rooms and public corridors. One–fifth of the air supply shall be taken from the outside. In bathrooms, water closet compartments, laundry rooms and similar rooms, a mechanical ventilation system connected directly to the outside shall be capable of providing five air changes per hour.

For the purpose of determining light and ventilation requirements, any room may be considered as a portion of an adjoining room when one–half of the area of the common wall is open and unobstructed and provides an opening of not less than one–tenth of the floor area of the interior room or 25 square feet, whichever is greater.

Required exterior openings for natural light and ventilation shall open directly onto a street or public alley, yard or court located on the same lot as the building.

EXCEPTION: Required windows may open into a roofed porch where the porch:

1. Abuts a street, yard or court;

2. Has a ceiling height of not less than 7 feet; and

3. Has the longer side at least 65 percent open and unobstructed.

5.800(8) 5.801(3) Mixed occupancies general. When a building is used for more than one occupancy purpose, each part of the building comprising a distinct “Occupancy,” as shown in the occupancy classification Table 8–A shall be separated from any other occupancy as specified in Table 8–C.

EXCEPTION: Gift shops, administrative offices and similar rooms not exceeding 10 percent of the floor area of the major use.

5.800(9) 5.801(4) Occupant load. For the purpose of establishing exit requirements, the occupant load of any building or portion thereof used for the purpose of rules 5.800(100) 5.801(100) to 5.802(100) 5.803(100) shall be determined by dividing the net floor area assigned to that use by the square feet per occupant as indicated in Table 5–A and rule 661—5.51(100).

5.800(10) 5.801(5) Dormitories. New dormitories shall comply with the requirements for new hotels within this chapter.

ITEM 2. Renumber rules 661—5.801(100) to 661— 5.809(100) as 661—5.802(100) to 661—5.810(100).

ITEM 3. Amend renumbered rule 661—5.802(100), catchwords, as follows:

ITEM 4. Amend renumbered subrule 5.802(8), paragraph “b,” as follows:

b. Rubbish and linen chutes. In new residential occupancies covered by this code, rubbish and linen chutes shall terminate in rooms separated from the remainder of the building by a one–hour fire–resistive occupancy separation. Openings into the chutes and termination rooms shall not be located in exit corridors or stairways.

ITEM 5. Amend renumbered subrule 5.803(3), numbered paragraph “2,” as follows:

2. The building is equipped with smoke detectors installed in accordance with subrule 5.802(4) 5.803(4).

ITEM 6. Amend renumbered subrule 5.804(1) as follows:

5.804(1) Application. The requirements of this chapter rules 661—5.804(100) through 661—5.807(100) shall apply to existing hotels/motels, apartment houses, dormitories, lodging, and rooming houses, convents accommodating more than ten persons, and monasteries accommodating more than ten persons.

No building or structure housing existing residential occupancies shall be occupied in violation of rules 5.803(100) to 5.805(100) 5.804(100) to 5.806(100).

ITEM 7. Amend renumbered subrule 5.808(6), paragraph “a,” as follows:

a. In new buildings and additions constructed after July 1, 1991, required smoke detectors shall receive their primary power from the building wiring when such wiring is served from a commercial source. Wiring shall be permanent and without a disconnecting switch other than those required for overcurrent protection. Smoke detectors may be solely battery operated when installed in existing buildings, or in buildings without commercial power, or in buildings which undergo alterations, repairs or additions regulated by subrule 5.807(2) 5.808(2).

ITEM 8. Amend renumbered subrule 5.809(2) as follows:

5.809(2) Certification—single–family dwelling units. A person who files for homestead credit pursuant to Iowa Code chapter 425 shall certify that the single–family dwelling unit for which credit is filed has a smoke detector(s) installed in accordance with 5.807(6) 5.808(6) and 5.807(11)“a,” 5.808(11)“a,” or that such smoke detector(s) will be installed within 30 days of the date of filing for credit.

ITEM 9. Amend renumbered rule 661—5.810(100) and implementation sentence for renumbered rules 661— 5.807(100) to 661—6.810(100) as follows:

5.810(1) New construction. All multiple–unit residential buildings and single–family dwellings which are constructed after July 1, 1991, shall include the installation of smoke detectors meeting the requirements of rule 661—5.806(100) 5.807(100) and rule 661—5.807(100) 5.808(100).

5.810(2) Existing construction. All existing single–family units and multiple–unit residential buildings shall be equipped with smoke detectors as required in 5.807(11)“a.” 5.808(11)“a.”

Rules 5.806 5.807(100) to 5.809 5.810(100) are intended to implement Iowa Code section 100.18.

ITEM 10. Adopt the following new rule:

5.820(1) Appliances. Heating, cooking and gas and electrical equipment and appliances must conform with nationally recognized codes and standards and be installed and maintained in accordance with manufacturer’s recommendations. If the building has an operable solid fuel fireplace, all components must be cleaned and maintained in accordance with NFPA 211, 1996 edition.

5.820(2) Smoke detectors. Each bed and breakfast inn must be equipped with a system of interconnected smoke detectors. At least one detector must be located in each guest bedroom and at the top of each stairwell and at intervals not to exceed 30 feet in exit corridors. In existing buildings these smoke detectors may be battery operated. In buildings or additions for which construction is started after [effective date to be inserted upon adoption of rule], the smoke detector system must include battery backup but receive primary power from the building’s electrical wiring. Detectors must be installed and maintained in accordance with NFPA 72, 1998 edition.

5.820(3) Emergency lighting. Each bed and breakfast inn must be equipped with approved emergency lighting so located and directed in a manner that will illuminate the routes of travel from each guest–occupied room to the outside of the building.

5.820(4) Windows. Each bed and breakfast inn guest sleeping room must have at least one outside window that is openable without the use of tools or special knowledge. The window must be large enough that, when open and without breaking glass, it will permit the emergency egress of guests.

5.820(5) Exits. Each story that has one or more guest sleeping rooms must have two means of exit that are remote from each other and so arranged and constructed as to minimize any possibility that both may be blocked by any one fire or other emergency.

5.820(6) Exit door markings. Exit doors must be marked in accordance with 661—5.63(100), except internally illuminated exit signs are not required if the door is clearly illuminated by emergency lighting.

5.820(7) Fire extinguishers. Fire extinguishers must be installed and maintained in accordance with National Fire Protection Association Standard Number 10, 1998 edition.

5.820(8) Smoking prohibited. Smoking is not permitted in any sleeping room, and rooms shall be posted with plainly visible signs so stating.

5.820(9) Additional prohibitions. Candles, lamps or solid fuel fireplaces shall not be used in guest sleeping rooms.

5.820(10) Directions. Each bed and breakfast inn shall have clearly displayed in each guest bedroom printed directions and a diagram for emergency evacuation procedures. These directions must include the primary route to the outside and how to use the emergency egress window in the event the primary route cannot be traversed.

This rule is intended to implement Iowa Code Supplement section 137C.35.

Pursuant to the authority of 2000 Iowa Acts, House File 2492, section 17, the Department of Public Safety hereby gives Notice of Intended Action to adopt Chapter 53, “Fire Service Training Bureau,” Iowa Administrative Code.

Effective July 1, 2000, the Fire Service Institute of the Iowa State University Extension Service will be replaced by the new Fire Service Training Bureau of the Fire Marshal Division of the Iowa Department of Public Safety. Training programs of the Fire Service Institute will continue without interruption under the Fire Service Training Bureau as will other services of the Fire Service Institute, including distribution of publications produced within the Bureau as well as from national fire service organizations. These rules create a new chapter of administrative rules of the Department of Public Safety, Chapter 53, which describes the organization of the Fire Service Training Bureau, provides contact information for the Bureau, and provides for fees for services offered by the Bureau. One major service of the Bureau, the Iowa Fire Service Certification Program, is provided for separately in new Chapter 54, which was Adopted and Filed Emergency in a separate filing (ARC 9969A herein) and became effective July 1, 2000.

A public hearing on these proposed rules will be held on September 8, 2000, at 10 a.m. in the Third Floor Conference Room of the Wallace State Office Building, East 9th and 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 Agency Rules Administrator, 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 Agency Rules Administrator by mail or electronic mail at the addresses indicated at least one day prior to the public hearing, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Bureau office at least one day prior to the public hearing.

Contemporaneous with the filing of this Notice, these rules were also Adopted and Filed Emergency and are published herein as ARC 9968A. The content of that submission is incorporated by reference.

These rules are intended to implement 2000 Iowa Acts, House File 2492.

Pursuant to the authority of 2000 Iowa Acts, House File 2492, section 17, the Department of Public Safety hereby gives Notice of Intended Action to adopt Chapter 54, “Firefighter Certification,” Iowa Administrative Code.

Effective July 1, 2000, the Fire Service Institute of the Iowa State University Extension Service will be replaced by the new Fire Service Training Bureau of the Fire Marshal Division of the Iowa Department of Public Safety. One of the programs of the Fire Service Institute is the certification of firefighters in the state of Iowa. There are several different levels of certification, each based upon standards promulgated by the National Fire Protection Association. While certification is voluntary under state law, that is, state law does not require certification in order to work either for pay or as a volunteer in the fire service, some fire departments within the state of Iowa require certification of their members as a condition of employment. These rules provide administrative procedures for the operation of the certification program, the standards for certification at various levels, and fees related to the certification program to be collected by the Fire Service Training Bureau.

A public hearing on these proposed rules will be held on September 8, 2000, at 10:15 a.m. in the Third Floor Conference Room of the Wallace State Office Building, East 9th and 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 Agency Rules Administrator, 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 Agency Rules Administrator by mail or electronic mail at the addresses indicated at least one day prior to the public hearing, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Bureau office at least one day prior to the public hearing.

Contemporaneous with the filing of this Notice, these rules were also Adopted and Filed Emergency and are published herein as ARC 9969A. The content of that submission is incorporated by reference.

These rules are intended to implement 2000 Iowa Acts, House File 2492.

Pursuant to the authority of Iowa Code section 17A.3, the Department of Public Safety hereby proposes to adopt a new Chapter 59, “Volunteer Emergency Services Provider Death Benefits,” Iowa Administrative Code.

2000 Iowa Acts, Senate File 2452, section 97, provides that, effective July 1, 2000, the beneficiary of a volunteer emergency services provider who dies in the line duty will be eligible for payment of a $100,000 death benefit from the state of Iowa, subject to certain restrictions. These rules establish the death benefits program, including eligibility criteria in accordance with Senate File 2452, administrative procedures for the program, a definition of “beneficiary” for the purposes of the program, and a procedure for appeals of decisions made by the Department in administration of the program.

Language in 2000 Iowa Acts, Senate File 2452, provides that the lump–sum death benefit is to be paid to the “beneficiary” of the deceased volunteer emergency services provider, once eligibility has been established. The term “beneficiary” is not defined in the statute. In order to provide clear direction for the payment of benefits when eligibility has been established, the term “beneficiary” is defined in these rules in terms parallel to the provisions of the similar death benefit program for paid emergency services providers, which was established in 2000 Iowa Acts, Senate File 2411.

A public hearing on these proposed rules will be held on September 8, 2000, at 10:30 a.m. in the Third Floor Conference Room of the Wallace State Office Building, East 9th and 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 Agency Rules Administrator, 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 rules may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated at least one day prior to the public hearing, or submitted at the public hearing.

These rules were also Adopted and Filed Emergency and are published herein as ARC 9967A. The content of that submission is incorporated by reference.

These rules are intended to implement 2000 Iowa Acts, Senate File 2452.

Pursuant to the authority of Iowa Code sections 99D.7 and 99F.4, the Racing and Gaming Commission hereby gives Notice of Intended Action to amend Chapter 4, “Contested Cases and Other Proceedings”; rescind Chapter 6, “Criteria for Granting Licenses and Determining Race Dates,” and adopt a new Chapter 6, “Occupational and Vendor Licensing”; amend Chapter 8, “Mutuel Department,” and Chapter 10, “Thoroughbred Racing”; and rescind Chapter 12, “Simulcasting,” and Chapter 13, “Occupational and Vendor Licensing,” Iowa Administrative Code.

Item 1 gives the gaming board and board of stewards the ability to revoke an occupational license.

Item 2 rescinds current Chapter 6 and adopts new Chapter 6 which incorporates rules on occupational and vendor licensing from Chapter 13, which is rescinded in Item 9. Many of the rules remain as they were in Chapter 13 but have been reorganized within new Chapter 6. Duplicative rules have been removed and some rules were rewritten to reflect current practice. Substantive changes from rescinded Chapter 13 incorporated into new Chapter 6 are as follows:

– The term “association” was changed to “facility” throughout the chapter.

– The terms “commission representative,” “deceptive practice,” “facility,” and “theft” are defined in rule 491— 6.1(99D,99F).

– Paragraph 6.2(1)“c” contains new information required on the occupational license application.

– Paragraph 6.2(1)“g” states that the facility will be directly billed for their employees’ license/fingerprint fees. This is current policy of the Commission and is now being incorporated into this subrule.

– Subrule 6.2(6) clarifies when a fee free pass may be used.

– Subparagraph 6.5(1)“d”(3) adds possession of drug paraphernalia as a drug offense.

– Subparagraph 6.5(1)“d”(4) states that a license will be denied if an applicant has a conviction involving theft or fraudulent practice in excess of $100.

– Paragraph 6.5(3)“e” adds the term deceptive practice.

– Paragraph 6.5(3)“m” adds the term gambling game.

– Rule 491—6.6(99D,99F) outlines the conditions that must be satisfied before an individual who has had a license denied, revoked or suspended may reapply for a license.

– Subrule 6.9(2) requires the facility to provide a weekly list of new employees who currently hold a license. This is the current policy of the Commission and is now being incorporated into this rule.

– Paragraph 6.16(5)“b” clarifies that a temporary license is valid for a maximum of one start per horse in an official race.

– Subrule 6.23(2) is a new apprentice jockey rule to mirror the Association of Racing Commissioners International uniform rule.

– Rule 491—6.26(99D,99F) states that a practicing veterinarian must have an unrestricted license issued by the state of Iowa veterinary regulatory authority.

– Rule 491—6.27(99D,99F), which reflects a change in alcohol and drug testing, applies to restricted areas in racing facilities only.

Item 3 changes the title of Chapter 8 from “Mutuel Department” to “Wagering and Simulcasting.”

Item 4 adds definitions for “authorized receiver,” “guest association,” “host association,” “interstate simulcasting,” “intrastate simulcasting,” “pari–mutuel output date,” and “sales transaction data” to rule 491—8.1(99D).

Item 5 clarifies the rule with a reference to paragraph 8.2(4)“g.”

Item 6 incorporates into Chapter 8 rules about simulcasting from rescinded Chapter 12. No substantive changes were made to the rules.

Item 7 outlines a new jockey mount fee schedule.

Item 8 rescinds 491—Chapter 12.

Item 9 rescinds 491—Chapter 13.

These rules are not subject to a waiver, pending adoption of a uniform waiver rule.

These proposed amendments were sent out to all the licensees prior to their review before the Commission. No comments were received.

Any person may make written suggestions or comments on the proposed amendments on or before August 1, 2000. Written material should be directed to the Racing and Gaming Commission, 717 E. Court, Suite B, Des Moines, Iowa 50309. Persons who wish to convey their views orally should contact the Commission office at (515)281–7352.

Also, there will be a public hearing on August 1, 2000, at9 a.m. in the office of the Racing and Gaming Commission, 717 E. Court, Suite B, Des Moines, Iowa. Persons may pre–sent their views at the public hearing either orally or in writing.

These amendments are intended to implement Iowa Code chapters 99D and 99F.

The following amendments are proposed.

ITEM 1. Amend rule 491—4.7(99D,99F) as follows:

491—4.7(99D,99F) Penalties (gaming board and board of stewards). The board may remove the license holder, either from any racetrack or riverboat, under its jurisdiction, revoke the license, or suspend the license of the holder for up to 365 days from the date of the original suspension, or impose a fine of up to $1000, or both. The board may set the dates in which the suspension must be served. In addition, the board may order a redistribution of a racing purse or the payment of or the withholding of a gaming payout. The board may also suspend the license of any person currently under suspension or in bad standing in any other state or jurisdiction by the state racing and gaming commission. If the punishment so imposed is not sufficient, in the opinion of the board, the board shall so report to the commission. All fines and suspensions imposed will be promptly reported to the riverboat or racetrack licensee and commission in writing.

ITEM 2. Rescind 491—Chapter 6 and adopt in lieu thereof the following new chapter:

CHAPTER 6
OCCUPATIONAL AND VENDOR LICENSING

“Applicant” means an individual applying for an occupational license.

“Beneficial interest” means any and all direct and indirect forms of ownership or control, voting power, or investment power held through any contract, lien, lease, partnership, stockholding, syndication, joint venture, understanding, relationship (including family relationship), present or reversionary right, title or interest, or otherwise.

“Board” means either the board of stewards or the gaming board, as appointed by the administrator, whichever is appropriate. The administrator may serve as a board of one.

“Commission” means the Iowa racing and gaming commission.

“Commission representative” means a gaming representative, steward, or any person designated by the commission or commission administrator.

“Deceptive practice” means any deception or misrepresentation made by the person with the knowledge that the deception or misrepresentation could result in some benefit to the person or some other person.

“Facility” means an entity licensed by the commission to conduct pari–mutuel wagering or gaming operations in Iowa.

“Jockey” means a person licensed to ride a horse in a race.

“Kennel/stable name ” means any type of name other than the legal name or names used by an owner or lessee and registered with the commission.

“Licensee” means a person licensed by the commission to perform an occupation which the commission has identified as requiring a license to engage in pari–mutuel, racetrack enclosure, or excursion riverboat gambling in Iowa.

“Owner” means a person or entity that holds any title, right or interest, whole or partial, in a racing animal.

“Rules” means the rules promulgated by the commission to regulate the racing and gaming industries.

“Theft” includes, but is not limited to:

1. The act of taking possession or control of either facility property or the property of another without the express authorization of the owner;

2. The use, disposition, or destruction of property in a manner which is inconsistent with or contrary to the owner’s rights in such property;

3. Misappropriation or misuse of property the person holds in trust for another; or

4. Any act which constitutes theft as defined by Iowa Code chapter 714. No specific intent requirement is imposed by rule 6.5(99D,99F) nor is it required that there be any showing that the licensee received personal gain from any act of theft.

“Year” means a calendar year.

6.2(1) All persons participating in any capacity at a racing or gaming facility, with the exception of certified law enforcement officers while they are working for the facility as uniformed officers, are required to be properly licensed by the commission.

a. License applicants under 70 years of age may be required to furnish to the commission a set of fingerprints and may be required to be refingerprinted or rephotographed periodically.

b. License applicants must supply current photo identification and proof of their social security number and date of birth.

c. License applicants must complete and sign the application form prescribed and published by the commission. The application shall state the full name, social security number, residence, date of birth, and other personal identifying information of the applicant that the commission deems necessary. The application shall include, in part, whether the applicant has any of the following:

(1) A record of conviction of a felony or misdemeanor;

(2) An addiction to alcohol or a controlled substance;

(3) A history of mental illness or repeated acts of violence;

(4) Military convictions;

(5) Adjudication of delinquency; or

(6) Overdue income taxes, fines, court–ordered legal obligations, or judgments.

d. License applicants for designated positions of higher responsibility may be required to complete a division of criminal investigation (DCI) background form.

e. A fee set by the commission shall be assessed to each license applicant. Once a license is issued, the fee cannot be refunded.

f. License applicants must pay an additional fee set by the Federal Bureau of Investigation (FBI) and by the department of public safety, (DCI and bureau of identification) to cover the cost associated with the search and classification of fingerprints.

g. All racing and gaming commission fees for applications or license renewals must be paid by applicants or licensees before a license will be issued or renewed or, if the applicant is an employee of a facility, the commission fees will be directly billed to the facility.

h. An applicant who knowingly makes a false statement on the application is guilty of an aggravated misdemeanor.

i. Participation in racing and gaming in the state of Iowa is a privilege and not a right. The burden of proving qualifications to be issued any license is on the applicant at all times. An applicant must accept any risk of adverse public notice, embarrassment, criticism, or other action, as well as any financial loss that may result from action with respect to an application.

j. All licenses are conditional until completion of a necessary background investigation including, but not limited to, fingerprint processing through the DCI and the FBI and review of records on file with the Association of Racing Commissioners International, courts, law enforcement agencies, and the commission.

k. Any licensee who allows another person use of the licensee’s license badge for the purpose of transferring any of the benefits conferred by the license may be suspended, fined, revoked, or any combination thereof. No license shall be transferable and no duplicate licenses shall be issued except upon submission of an application form and payment of the license fee.

l. It shall be the affirmative responsibility and continuing duty of each applicant to provide all information, documentation, and assurances pertaining to qualifications required or requested by the commission or commission representatives and to cooperate with commission representatives in the performance of their duties. A refusal by any person to comply with a request for information from a commission representative shall be a basis for fine, suspension, denial, revocation, or disqualification.

m. Non–U.S. citizens must also supply a work permit allowing them to work in the United States.

n. Portions of all completed applications accepted by the commission are confidential. The following persons have the explicit right to review all information contained on the application: the applicant, all commission officials and employees, the track steward, and DCI agents or other law enforcement officers serving in their official capacity.

o. A license may not be issued or held by an applicant who is unqualified, by experience or otherwise, to perform the duties required.

p. A license may not be issued to applicants who have not previously been licensed in the following categories except upon recommendation by the commission representative: trainers, assistant trainers, jockeys, apprentice jockeys, exercise persons, and other occupations the commission may designate. The commission representative may, for the purpose of determining a recommendation under this subrule, consult a representative of the facility, horsemen, or jockeys.

6.2(2) All facility board members shall undergo a background investigation and be licensed immediately upon appointment.

6.2(3) Multiple license restrictions.

a. A person may work outside the licensed occupation as long as the person is licensed in an equal or higher class.

b. In horse racing only, the following restrictions apply:

(1) A person licensed as a jockey, veterinarian, or farrier may not be licensed in another capacity.

(2) A person may not be licensed as an owner and a jockey agent.

(3) No racing official may serve or act in another capacity at a race meeting at which that person is licensed as an official except if there is no conflict of interest or duties as determined by the commission representative.

6.2(4) Application endorsements. The responsibility of licensing an employee rests with the employer. Therefore, a license may not be issued to any employee unless the application includes prior endorsement of the facility’s authorized representative. All facilities must submit a list of representatives authorized to sign applications. This list shall not exceed six names. This authorization list shall be sent to the commission licensing office associated with each facility.

6.2(5) An employee of a facility who has not been licensed during the previous calendar year shall be considered a new applicant.

6.2(6) An employee hired during a time that the commission licensing office is closed may be issued and may work using a fee free pass as defined in 491—subparagraph 5.4(10)“b”(3). The fee free pass used for this purpose shall be effective only until the licensing office’s next day of business.

491—6.3(99D,99F) Waiver of privilege. An applicant may claim a privilege afforded by the Constitution of the United States or of the state of Iowa in refusing to answer questions of the commission. However, a claim of privilege with respect to any testimony or evidence pertaining to an application may constitute sufficient grounds for denial.

6.4(1) Occupational license (license). The license shall be displayed in a conspicuous manner on the licensee’s clothing at all times while the licensee is on duty unless otherwise permitted by the commission representative. A licensee is prohibited from defacing, altering, or modifying a license.

6.4(2) Knowledge of rules. By acceptance of a license from the commission, the licensee agrees to follow and comply with the facility’s system of internal controls, the rules of the commission, and Iowa statutes pertaining to racing and gaming, to report immediately to the commission representative any known irregularities or wrongdoing involving racing or gaming and to cooperate in subsequent investigations. Commission rules are available on the commission’s Web site at www3.state.ia.us/irgc/.

6.4(3) Search and seizure. Acceptance of a license from the commission by any licensee is deemed consent to search and inspection by a commission or DCI representative and to the seizure of any prohibited medication, drugs, paraphernalia or devices.

6.4(4) Misuse of license. No person shall exercise or attempt to exercise any of the powers, privileges, or prerogatives of a license unless and until the appropriate licensing form has been executed and filed with the commission except under subrule 6.2(6). The commission shall exercise the power to regulate the conduct of all persons holding licenses or participating in racing or gaming.

491—6.5(99D,99F) Grounds for denial, suspension, or revocation of a license or issuance of a fine. The commission or commission representative shall deny an applicant a license or, if already issued, a licensee shall be subject to probation, fine, suspension, revocation, or other disciplinary measures, if the applicant or licensee:

6.5(1) Does not qualify under the following screening policy:

a. Applicants must be at least 18 years of age to work in areas where gaming or wagering is conducted.

b. Applicants must be at least 16 years of age to be eligible to be licensed to work for a trainer of racing animals.

c. A license shall be denied if an alias was used in connection with fraud within the last five years.

d. A license shall be denied if within the last five years, an applicant has had a conviction of:

(1) A felony.

(2) A drug–related offense.

(3) An offense involving possession of drug paraphernalia.

(4) An offense involving theft or fraudulent practice in excess of $100.

If the conviction did not occur within the last five years, a license shall not be issued unless the commission representative determines that sufficient evidence of rehabilitation exists.

e. A license shall be denied if an applicant has a conviction of a serious or aggravated misdemeanor or the equivalent unless the commission representative determines that sufficient evidence of rehabilitation exists.

f. A license shall be denied if an applicant has multiple convictions of simple misdemeanors or alcohol–related offenses unless the commission representative determines that sufficient evidence of rehabilitation exists. In making that determination, the number of violations shall be considered.

g. A license may be denied if the applicant has been guilty of multiple offenses. The commission representative shall use the representative’s judgment in making such a determination.

h. A license shall be temporarily denied or suspended until the outcome of any pending charges is known if conviction of those charges would disqualify the applicant.

i. A license shall be denied if the applicant has a current addiction to alcohol or a controlled substance, has a history of mental illness without sufficient evidence of rehabilitation, or has a history of repeated acts of violence without sufficient evidence of rehabilitation.

j. A license may be temporarily denied or a probationary license may be issued until outstanding, overdue court–ordered obligations are satisfied. These include, but are not limited to, criminal or civil fines, state or federal taxes, or conditions imposed upon a person by a court of law that the applicant has failed to meet in a timely manner.

k. A license shall be denied if an applicant owns, operates, or has an interest in any bookmaking or other illegal enterprise, or is or has been connected with or associated with any illegal enterprise within the past five years. If the applicant’s association with the illegal enterprise occurred more than five years prior to the application, a license may be issued only if the commission representative determines that sufficient evidence of rehabilitation exists.

l. A license may be denied if an applicant is ineligible to participate in gaming in another state and it would not be in the best interest of racing or gaming to license the applicant in Iowa. A license shall be denied if an applicant is ineligible to participate in racing in another state whose regulatory agency is recognized by and reciprocates in the actions of this state.

m. A license shall be denied if an applicant has been denied patron privileges by order of this commission and not reinstated.

n. A license shall be denied if the applicant falsifies the application form and would be ineligible for licensure under paragraphs “a” through “m” above. In other cases of falsification, a license may be issued and the applicant shall be subject to a fine.

o. A license shall be denied if an applicant is not of good repute and moral character. Any evidence concerning a licensee’s current or past conduct, dealings, habits, or associations relevant to that individual’s character and reputation may be considered. The commission representative shall decide what weight and effect evidence shall have in the determination of whether there is substantial evidence that the individual is not of good reputation and character. Applicants who hold positions of higher responsibility may be held to a more stringent standard of conduct and reputation than others with a less significant interest or role.

6.5(2) Has not demonstrated financial responsibility or has failed to meet any monetary obligation in the following circumstances connected with racing or gaming:

a. Issuance or passing of bad checks. No person shall write, issue, make, or present any check in payment for any license fee, nomination fee, entry fee, starting fee, or purse payment when that person knows or should reasonably know that the check will be refused for payment by the bank upon which it is written, or that the account upon which it is written does not contain sufficient funds for payment of the check, or that the check is written on a closed or nonexistent account.

b. Judgments. Whenever any person licensed to engage in racing suffers a final judgment entered against that person in any court of competent jurisdiction within the United States, when that judgment is based wholly upon an indebtedness incurred by that person for supplies, equipment, or services furnished in connection with racing, the commission representatives shall schedule a hearing at which the licensee shall be required to show cause as to why the license should not be suspended.

c. Timely payment. Should an owner fail to make timely payment of any jockey fee, nomination fee, entry fee, starting fee, or any other reasonable charge normally payable to the facility, the facility shall notify the commission representatives who shall in turn give notice to the owner that a hearing will be held where the owner will be required to show cause why the license should not be suspended for failure to make the required payments.

6.5(3) Has been involved in any fraudulent or corrupt practices, including, but not limited to:

a. Offering, promising, giving, accepting, or soliciting a bribe in any form, directly or indirectly, to or by a person licensed by the commission to violate these rules or the laws of the state related to racing or gaming.

b. Failing to report any bribe or solicitation as in 6.5(3)“a” above.

c. Soliciting by any licensee, except the facility, of bets by the public.

d. Violation of any law of the state or rule of the commission, or aiding or abetting any person in the violation of any such law or rule.

e. Theft or deceptive practice of any nature on the grounds of a facility.

f. Giving under oath any false statement or refusing to testify, after proper notice, to the commission representative about any matter regulated by the commission, except in the exercise of a lawful legal privilege.

g. Failing to comply with any request for information or any order or ruling issued by the commission representatives pertaining to a racing or gaming matter.

h. Disorderly or offensive conduct; use of profane, abusive, or insulting language to, or interference with, commission representatives or racing or gaming officials while they are discharging their duties.

i. Conduct in Iowa or elsewhere has been dishonest, undesirable, detrimental to, or reflects negatively on, the integrity or best interests of racing and gaming.

j. Illegal sale, possession, receipt, or use of a controlled substance or drug paraphernalia; intoxication; use of profanity; fighting; making threatening or intimidating statements; engaging in threatening or intimidating behavior; or any conduct of a disorderly nature on facility grounds.

k. Discontinuance of or ineligibility for activity for which the license was issued.

l. Possessing a firearm on facility property without written permission from the commission representative.

m. Improperly influencing or attempting to improperly influence the results of a race or a gambling game, singularly or in combination with any person.

n. Failing to report any attempt to improperly influence the result of a race or a gambling game as in 6.5(3)“m” above.

o. Having had two rulings related to attempts to affect a race result or odds (rulings for electrical devices, serious positives, for example) in a lifetime or one ruling within the last three years. A license may be issued if one ruling has occurred outside of three years if sufficient evidence of re–habilitation exists. A license may be denied if a lengthy record of rulings from other jurisdictions exists.

p. Possessing any equipment for hypodermic injection, any substance for hypodermic administration, or any container designed to hold an injectable substance (narcotics, medications, drugs, or substances which could be used to alter the speed of racing animals) by anyone other than a veterinarian licensed by the commission. Notwithstanding the provisions of this subrule, any person may have possession of any chemical or biological substance for the person’s own treatment within a restricted area, provided that, if the chemical substance is prohibited from being dispensed without a prescription by any federal law or law of this state, the person is in possession of documentary evidence that a valid prescription has been issued to the person. Notwithstanding the provisions of this subrule, any person may have in possession within any restricted area any hypodermic syringe or needle for the purpose of self–administering to the person a chemical or biological substance, provided that the person has notified the commission representatives of the possession of the device, the size of the device, and the chemical substance to be administered and has obtained written permission for possession and use from the commission representative. A restricted area is a designated area for sample collection, paddock, racetrack, or any other area where officials carry out the duties of their positions.

q. Subjecting a racing animal to cruel and inhumane treatment by failing to supply it with adequate food, water, medical treatment, exercise, bedding, sanitation, and shelter; or by neglect or intentional act causing a racing animal to suffer unnecessary pain.

r. Offering or receiving money or other benefit for withdrawing a racing animal from a race.

s. Making a wager for a jockey by any person other than the owner or trainer of the horse ridden by the jockey.

t. Making a wager for a jockey on a horse by an owner or trainer other than that ridden by the jockey. This shall not be construed to include bets on another horse in combination with the horse ridden by the jockey in multiple wagering bets.

u. Offering or giving a jockey money or other benefit concerning a race, except by the owner or trainer of the horse to be ridden.

v. Entering or starting a racing animal known or believed to be ineligible or disqualified.

w. Possessing any device designed to increase or decrease the speed of a racing animal during a race other than an ordinary riding whip without written permission from the commission representative.

6.6(1) Any person whose license was denied or revoked may reapply for a license in accordance with the commission’s rules governing applications. However, the applicant must satisfy the following conditions:

a. The applicant shall bear the burden of proof of establishing satisfaction with all license criteria and shall provide proof of satisfaction of any terms or conditions imposed as a part of the commission’s order denying or revoking the license;

b. The applicant shall allege facts and circumstances establishing, to the commission’s satisfaction, sufficient evidence of rehabilitation and that the basis for the denial or revocation no longer exists;

c. The applicant shall establish that the public interest and the integrity of racing and gaming would not be adversely affected if a license is granted; and

d. If the license was revoked, a new application shall not be filed until five years have elapsed from the date of the order of revocation.

6.6(2) Any person whose license was suspended for 365 days may file a new application for a license upon the expiration of the period of suspension but must satisfy all of the conditions set out in 6.6(1) above.

491—6.7(99D,99F) Probationary license. The commission representative or a board may grant a probationary license. The terms of a probationary license shall include any conditions placed on the licensee and any penalty for failure to follow those conditions, including fine, suspension, denial, or revocation.

491—6.8(99D,99F) Duration of license. A license issued by the commission is valid until the end of the calendar year in which it was issued unless an extension is granted by the administrator.

6.9(1) Once an applicant obtains an occupational license from the commission and is in good standing, the applicant is eligible to work at any of the facilities in the state of Iowa.

6.9(2) When a facility hires a person who is already in possession of a current occupational license, a list of the person(s) hired must be filed weekly with the local commission office. The list should contain the license number, name, social security number, and birth date of each person hired.

491—6.10(99D,99F) Required report of discharge of licensed employee. Upon discharge of any licensed employee by any licensed employer for violation of rules or laws within the jurisdiction of the commission, the employer must report that fact in writing, within 72 hours, to the local commission office including the name and occupation of the discharged licensee.

6.11(1) Upon the racing and gaming commission’s receipt of a certificate of noncompliance, a commission representative shall initiate procedures for the suspension, revocation, or denial of issuance or renewal of licensure to an individual. A notice of intended action shall be served by restricted certified mail, return receipt requested, or by personal service in accordance with the Iowa Rules of Civil Procedure 56.1.

6.11(2) The effective date of suspension or revocation, or denial of the issuance or renewal of a license, as specified in the notice, shall be no sooner than 30 days following service of the notice upon the licensee or applicant.

6.11(3) The filing of a district court action by a licensee or applicant challenging the issuance of a certificate of noncompliance shall automatically stay any administrative action. Upon the receipt of a court order lifting the stay, dismissing the action, or otherwise directing the racing and gaming commission, the intended action will proceed as described in the notice. For purposes of determining the effective date of suspension or revocation, or denial of the issuance or renewal of a license, only the number of days before the action was filed and the number of days after the action was disposed of by the court will be counted.

6.11(4) Upon receipt of a withdrawal of a certificate of noncompliance from the child support recovery unit, the racing and gaming commission representative shall immediately reinstate, renew, or issue a license if the individual is otherwise in compliance with licensing requirements.

6.11(5) All racing and gaming commission fees for applications or license renewals must be paid by licensees or applicants before a license will be issued or renewed.

6.12(1) Upon the racing and gaming commission’s receipt of a certificate of noncompliance, a commission representative shall initiate procedures for the suspension, revocation, or denial of issuance or renewal of licensure to an individual. A notice of intended action shall be served by restricted certified mail, return receipt requested, or by personal service in accordance with the Iowa Rules of Civil Procedure 56.1.

6.12(2) The effective date of the suspension or revocation, or denial of the issuance or renewal of a license, shall be no sooner than 30 days following service of the notice upon the licensee or applicant.

6.12(3) The filing of a district court action by a licensee or applicant challenging the issuance of a certificate of noncompliance shall automatically stay any administrative action. Upon the receipt of a court order lifting the stay, dismissing the action, or otherwise directing the racing and gaming commission, the intended action will proceed as described in the notice. For purposes of determining the effective date of suspension or revocation, or denial of the issuance or renewal of a license, only the number of days before the action was filed and the number of days after the action was disposed of by the court will be counted.

6.12(4) Upon receipt of a withdrawal of a certificate of noncompliance from the college student aid commission, the racing and gaming commission representative shall immediately reinstate, renew, or issue a license if the individual is otherwise in compliance with licensing requirements.

6.12(5) All racing and gaming commission fees for applications or license renewals must be paid by licensees or applicants before a license will be issued or renewed.

6.13(1) A vendor’s license is required of any entity not licensed as a manufacturer or distributor that conducts operations on site at a facility.

6.13(2) An applicant for a vendor’s license must complete the appropriate commission form. An authorized representative from the facility for which the vendor wishes to do continuous business must sign the form. A letter from the facility authorizing the vendor to do business shall replace a signature on the application form.

6.13(3) Any employee who works for a licensed vendor and will be supplying the goods or services to the facility must have a vendor employee license. A vendor license must be issued before a vendor employee can be issued a license to represent that company. The authorized signature on the vendor employee’s application must be the signature of the person authorized by the vendor application to sign vendor employee applications.

6.13(4) Vendors not meeting the above specifications but who do require entrance to the facility for their employees, such as for deliveries, shall utilize the fee free passes.

491—6.14(99D,99F) Applicability of rules—exceptions. Rules pertaining to and rulings against licensees shall apply in like force to the spouse and members of the immediate family or household of the licensee if the continuation of participation in racing or gaming by the affected person circumvents the intent of the rule or affects the ruling by permitting a person under the control or direction of the licensee to serve in essence as a substitute for a suspended licensee, or a person ineligible to participate in a particular activity.

491—6.15(99D) Disclosure of ownership of racing animals. All entities of ownership (individual, lessee, lessor, general partnership, or corporation) and all trainers are responsible for making full and accurate disclosure of the ownership of all racing animals registered or entered for racing. Disclosure shall identify in writing all individuals or entities that, directly or indirectly, through a contract, lien, lease, partnership, stockholding, syndication, joint venture, understanding, relationship (including family relationship), present or reversionary right, title or interest, or otherwise hold any interest in a racing animal, and those individuals or entities who by virtue of any form of interest might exercise control over the racing animal or may benefit from the racing of the animal. The degree and type of ownership held by each individual person shall be designated.

6.16(1) Each owner must obtain an owner’s license from the commission to enter an animal in a purse race at an Iowa racetrack.

6.16(2) Each owner is subject to the laws of Iowa and the rules promulgated by the commission immediately upon acceptance and occupancy of accommodations from or approved by a facility or upon making entry to run on its track. Owners shall accept the decision of the commission representative on any and all questions, subject to the owner’s right of appeal to the commission.

6.16(3) An owner who is under the age of 18 must have a parent or guardian cosign any contractual agreements.

6.16(4) No person or entity that is not the owner of record of a properly registered racing animal that is in the care of a licensed trainer may be licensed as an owner.

6.16(5) Temporary horse owner license.

a. A temporary horse owner license may be issued at the discretion of the commission representative.

b. Any temporary horse owner license shall be effective for 15 calendar days from the date of issuance and shall be valid for a maximum of one start per horse in an official race.

c. Failure to obtain a permanent license within the designated 15 calendar days may result in the automatic revocation of license eligibility and may result in a fine or suspension for the licensee that has failed to comply.

d. Purses shall not be paid to the owner of any racing animal holding a temporary horse owner license. Payments shall be permitted only after the individual has obtained a permanent license.

e. The owner and trainer of a horse must be licensed at least one hour before post time of the race in which the horse is entered. In the case of absentee owners, the trainer must submit a properly executed temporary horse owner license application on behalf of the absentee owner(s) at least one hour before post time of the race in which the horse is entered.

6.17(1) Licensed owners and lessees wishing to race under a kennel/stable name may do so by applying for a license with the commission on forms furnished by the commission.

6.17(2) A kennel/stable name license is only necessary if the kennel/stable name is a name other than the licensed owner’s legal name (full name or last name only), the owner’s full name followed by the word “kennel” or “stable,” or a licensed partnership or corporation.

6.17(3) In applying to race under a kennel/stable name, the applicant must disclose the identities behind the name and, if applicable, comply with partnership and corporation rules. The application form must appoint one person to act as the agent for the kennel/stable name.

6.17(4) Changes in identities involved in a kennel/stable name must be reported immediately to and approved by the commission representative.

6.17(5) A licensed owner who has registered under akennel/stable name may at any time cancel the kennel/stable name after giving written notice to the commission.

6.17(6) A kennel/stable name may be changed by registering a new name.

6.17(7) A licensed owner may not register a kennel/stable name that the commission determines to be either misleading to the public or unbecoming to the sport.

6.17(8) Neither sole owners nor partners, after adopting use of a kennel/stable name, may use their real names to reflect ownership that is reflected in the kennel/stable name.

6.17(9) A fee set by the commission shall be assessed for each application for a kennel/stable name license.

6.17(10) No person may register with any racing authority a stable name which has already been registered by another person, or which is the real name of another owner of race horses, or which is the real or stable name of any prominent person who does not own race horses, or which is not plainly distinguishable from that of another registered stable name.

6.17(11) Contract kennels must be licensed with the commission, on forms furnished by the commission, in the name of the kennel booking contract entered into between the contract kennel and the facility; this name shall be listed in the official program as “kennel.”

6.17(12) A licensed kennel owner shall not be a party to more than one kennel name at the same facility.

6.18(1) No licensee shall lease a racing animal for the purpose of racing at facilities in this state without prior approval of the commission representatives.

6.18(2) Both lessor and lessee must be licensed as owners.

6.18(3) Each licensee who leases a racing animal must submit a copy of that lease to the commission representatives. The lease must contain the conditions of the lease arrangement and the names of all parties and racing animals related to the lease. Failure to submit accurate and complete information under this rule is a violation of these rules.

6.18(4) Both seller and purchaser, or their agents or representatives, of a racing animal that is sold after being registered for racing with a racing association shall immediately notify the commission representatives of the sale and transfer. The commission representatives may require a declaration of the facts of the sale and transfer under oath and penalty of perjury.

6.19(1) A partnership is defined as a formal or informal arrangement between two or more persons to own a racing animal. All partnerships, excluding husband and wife, must be licensed with the commission on forms furnished by the commission.

6.19(2) The managing partner(s) listed on the application and all parties owning 5 percent or more must be licensed as individual owners.

a. The commission representative may request a partnership to have on file with the commission an agreement whereby the managing partner(s) is designated to be responsible for each racing animal. This agreement must be notarized and must be signed by all partners. A copy of this agreement must be attached to the registration certificate on file in the racing secretary’s office.

b. It will be the responsibility of the managing partner(s) to make sure that all parties are eligible for licensure. The commission representative shall deny, suspend, or revoke the license of any partnership in which a member (either qualified or limited by rights or interests held, or controlled by any individual or entity) would be ineligible to be licensed as an owner or to participate in racing.

c. Any owner who is a member of a partnership may be required to list all racing animals that the owner intends to race in Iowa in which an interest is owned (either in whole or in part).

d. All parties to a partnership shall be jointly and severally liable for all stakes, forfeits, and other obligations.

e. An authorized agent may be appointed to represent the partnership in all matters and be responsible for all stakes, forfeits, entries, scratches, signing of claim slips, and other obligations in lieu of the managing partner(s).

6.19(3) A partnership name under which a racing animal races shall be considered a kennel/stable name for purposes of these rules. It will not be necessary for the partnership to obtain a kennel/stable name license.

6.19(4) Any partner’s share or partial share of a partnership that owns a racing animal shall not be assigned without the written consent of the other partner(s), the commission representative’s approval, and filing with the racing secretary. Any alteration in a partnership structure or percentages must be reported promptly in writing, notarized, signed by all members of the partnership, and filed with the commission.

6.19(5) The commission representative may review the ownership of each racing animal entered to race and shall ensure that each registration certificate or eligibility certificate is properly endorsed by the transferor to the present owner(s). The commission representative may determine the validity for racing purposes of all liens, transfers and agreements pertaining to ownership of a racing animal and may call for adequate evidence of ownership at any time. The commission representative may declare any animal ineligible to race if its ownership, or control of its ownership, is in question.

6.19(6) A fee set by the commission shall be assessed for each application for a partnership license.

6.20(1) All corporations must be duly licensed by the commission on forms furnished by the commission. In addition, any stockholder owning a beneficial interest of 5 percent or more of the corporation must be licensed as an owner. The corporation must submit a complete list of stockholders owning a beneficial interest of 5 percent or more.

6.20(2) The corporation stockholders owning less than 5 percent of the stock of a corporation need not be licensed; however, the commission may request a list of these stockholders. The list shall include names, percentages owned, addresses, social security numbers, and dates of birth. These stockholders shall not have access to the backstretch, to the paddock area, or to the winner’s circle other than as guests of a facility, commission representatives, or designated licensees and may be required to submit additional information as requested by the commission representative, which may include a release for confidential information and submission of fingerprint cards; and the commission may assess costs, as required, for criminal history checks. This information shall be supplied to the commission representative within 30 days of the date of the request.

6.20(3) Any and all changes in either the corporation structure or the respective interest of stockholders as described above must be notarized and promptly filed with the commission representatives.

6.20(4) The corporate name under which the corporation does business in Iowa shall be considered a kennel/stable name for purposes of these rules. It shall not be necessary for the corporation to obtain a kennel/stable name license.

6.20(5) A corporation, in lieu of an executive officer, may appoint a racing manager or an authorized agent for the purposes of entry, scratches and the signing of claim slips, among other obligations.

6.20(6) The commission representative may deny, suspend, or revoke the license of a corporation for which a beneficial interest includes or involves any person or entity that is ineligible (through character, moral fitness or any other criteria employed by the commission) to be licensed as an owner or to participate in racing, regardless of the percentage of ownership interest involved.

6.20(7) Any stockholder holding a beneficial interest of 5 percent or more of a corporation must, in addition to being licensed, list any interest owned in all racing animals in which any beneficial interest is owned.

6.20(8) The corporation must pay a prescribed fee to the commission.

6.21(1) Any persons represented by a kennel name, stable name, corporation, partnership, or single person entity may assign an agent for the kennel name, stable name, corporation, partnership, or single person entity. The assigned agent is then authorized to handle matters pertaining to racing, which may include authorization to collect all purses or other moneys.

6.21(2) The application for a license as an authorized agent must be signed by the principal and clearly set forth the powers of the agent, including whether the agent is empowered to collect money from the facility. The application must be notarized and a copy must be filed with the facility.

6.21(3) Changes in an agent’s powers or revocation of an agent’s authority must be in writing, notarized, and filed with the commission’s licensing office and the facility.

6.21(4) The authorized agent must pay a prescribed fee to the commission.

6.22(1) All trainers and assistant trainers of racing animals and their employees are subject to the laws of Iowa and the rules promulgated by the commission immediately upon acceptance and occupancy of accommodations from or approved by the facility or upon making entry to run on its track. Trainers, assistant trainers, and their employees shall accept the decision of the commission representative on any and all questions, subject to their right of appeal to the commission.

6.22(2) Licensing of trainers and assistant trainers. Eligibility:

a. An applicant must be at least 18 years of age to be licensed by the commission as a trainer or assistant trainer.

b. An applicant must be qualified, as determined by the commission representative, by reason of experience, background, and knowledge of racing. A trainer’s license from another jurisdiction may be accepted as evidence of experience and qualifications. Evidence of qualifications may require passing one or more of the following:

(1) A written examination.

(2) An interview or oral examination.

(3) A demonstration of practical skills in a “barn test” (horse racing only).

c. An applicant must have a racing animal eligible to race and registered to race at the current race meeting.

6.23(1) Eligibility.

a. An applicant must be at least 18 years of age to be licensed by the commission as a jockey.

b. A jockey shall pass a physical examination given within the previous 12 months by a licensed physician affirming fitness to participate as a jockey. The commission representatives may require that any jockey be reexamined and may refuse to allow any jockey to ride pending completion of such examination.

c. An applicant shall show competence by prior licensing, demonstration of riding ability, or temporary participation in races. An applicant may participate in a race or races, with the commission representative’s prior approval for each race, not to exceed five races.

d. A jockey shall not be an owner or trainer of any horse competing at the race meeting where the jockey is riding.

e. A person who has never ridden in a race at a recognized meeting shall not be granted a license as jockey or apprentice jockey.

6.23(2) Apprentice jockeys.

a. The conditions of an apprentice jockey license do not apply to quarter horse racing. A jockey’s performance in quarter horse racing does not apply to the conditions of an apprentice jockey license.

b. An applicant with an approved apprentice certificate may be licensed as an apprentice jockey.

c. An applicant for an apprentice jockey license must be at least 16 years of age, and if under 18 years of age, the applicant must have written consent of parent or guardian. Before such license is granted, the stewards shall ascertain that the applicant has suitable qualifications and aptitude to hold an apprentice jockey’s license and that the applicant has not been previously licensed as a jockey under any jurisdiction.

d. Upon compliance with these requirements, the stewards may issue an apprentice jockey certificate allowing the holder to claim this allowance only in overnight races.

(1) An apprentice jockey shall ride with a five–pound weight allowance beginning with the first mount and for one full year from the date of the jockey’s fifth winning mount.

(2) If, after riding one full year from the date of the fifth winning mount, the apprentice jockey has not ridden 40 winners, the applicable weight allowance shall continue for one more year or until the fortieth winner, whichever comes first. In no event shall a weight allowance be claimed for more than two years from the date of the fifth winning mount, unless an extension has been granted.

(3) The stewards may extend the weight allowance of an apprentice jockey when, in the discretion of the stewards, the apprentice provides proof of incapacitation for a period of seven or more consecutive days. The allowance may be claimed for a period not to exceed the period such apprentice was unable to ride.

(4) The apprentice jockey must have the apprentice certificate with the jockey at all times and must keep an updated record of the first 40 winners. Prior to riding, the jockey must submit the certificate to the clerk of scales, who will record the apprentice’s winning mounts.

6.23(3) Jockeys from foreign countries. Upon making application for a license in this jurisdiction, jockeys from a foreign country shall declare that they are holders of valid licenses in their countries, not under suspension, and bound by the rules and laws of this state. To facilitate this process, the jockey shall present a declaration sheet to the commission representative in a language recognized in this jurisdiction.

6.24(1) An applicant for a license as a jockey agent shall:

a. Provide written proof of agency with at least one jockey licensed by the commission; and

b. Be qualified, as determined by the commission representative, by reason of experience, background, and knowledge. A jockey agent’s license from another jurisdiction may be accepted as evidence of experience and qualifications. Evidence of qualifications may require passing one or both of the following:

(1) A written examination.

(2) An interview or oral examination.

c. An applicant not previously licensed as a jockey agent shall be required to pass a written and oral examination.

6.24(2) A jockey agent may serve as agent for no more than two jockeys and one apprentice jockey.

491—6.25(99D) Driver. In determining eligibility for a driver’s license, the board shall consider:

1. Whether the applicant has obtained the required U.S.T.A. license.

2. Evidence of driving experience and ability to drive in a race.

3. The age of the applicant. No person under 18 years of age shall be licensed by the commission as a driver.

4. Evidence of physical and mental ability.

5. Results of a written examination to determine qualifications to drive and knowledge of commission rules.

6. Record of rule violations.

491—6.26(99D) Practicing veterinarians. Every veterinarian practicing on facility premises must have an unrestricted and current license to practice veterinary science issued by the state of Iowa veterinary regulatory authority and shall be licensed by the commission in accordance with the commission rules governing occupational licensing.

6.27(1) Alcohol prohibition/preliminary breath test. Licensees whose duties require them to be in a restricted area of a racing facility shall not have present within their systems an amount of alcohol of 0.05 percent or more. A restricted area is a designated area for sample collection, paddock, racetrack, or other area where racing officials carry out the duties of their positions.

Acting with reasonable cause, a commission representative may direct the above licensees to submit to a preliminary breath test. A licensee shall, when so directed, submit to examination.

If the results show a reading of 0.05 percent alcohol content or more, the licensee shall not be permitted to continue duties for that day. For a second violation, the licensee shall not be permitted to continue duties for that day and then shall be subject to fine or suspension by the board or commission representative. For a subsequent violation the licensee may be subject to procedures following positive chemical analysis (see 6.27(3)).

If the results show a reading of 0.10 percent alcohol content or more, the licensee is subject to fine or suspension by the board or commission representative. For a subsequent violation the licensee may be subject to procedures following positive chemical analysis (see 6.27(3)).

6.27(2) Drug prohibition/body fluid test. Licensees whose duties require them to be in a restricted area, as defined in subrule 6.27(1), of a racing facility shall not have present within their systems any controlled substance as listed in Schedules I to V of U.S.C. Title 21 (Food and Drug Section 812), Iowa Code chapter 124 or any prescription drug unless it was obtained directly or pursuant to valid prescription or order from a duly licensed physician who is acting in the course of professional practice. Acting with reasonable cause, a commission representative may direct the above licensees to deliver a specimen of urine or subject themselves to the taking of a blood sample or other body fluids at a collection site approved by the commission. In these cases, the commission representative may prohibit the licensee from participating in racing until the licensee evidences a negative test result. Sufficient sample should be collected to ensure a quantity for a split sample when possible. A licensee who refuses to provide the samples herein described shall be in violation of these rules and shall be immediately suspended and subject to disciplinary action by the board or commission representative. All confirmed positive test costs and any related expenses shall be paid for by the licensee. Negative tests shall be at the expense of the commission.

With reasonable cause noted, an on–duty commission representative may direct a licensee to deliver a test. The commission representative shall call the approved laboratory or hospital and provide information regarding the person who will be coming; that the licensee will have a photo ID; the name and number to call when the licensee arrives; to whom and where to mail the results; and who should be called with the results. The licensee will be directed to immediately leave the work area and proceed to an approved laboratory or hospital for testing with the following directions:

1. If under impairment, the licensee must have another person drive the licensee to the laboratory or hospital.

2. On arrival at the laboratory or hospital, the licensee must show the license to the admitting personnel for verification.

3. On arrival at the laboratory or hospital, the licensee shall be required to sign a consent for the release of information of the results to a commission representative.

6.27(3) Procedures following positive chemical analysis.

a. After professional evaluation, if the licensee’s condition proves nonaddictive and not detrimental to the best interest of racing, and the licensee can produce a negative test result and agrees to further testing at the discretion of the commission representative to ensure unimpairment, the licensee may be allowed to participate in racing.

b. After professional evaluation, should the licensee’s condition prove addictive or detrimental to the best interest of racing, the licensee shall not be allowed to participate in racing until the licensee can produce a negative test result and show documented proof of successful completion of a certified alcohol/drug rehabilitation program approved by the commission. The licensee must also agree to further testing at the discretion of the commission representative to ensure unimpairment.

c. For a second violation, a licensee shall be suspended and allowed to enroll in a certified alcohol/drug rehabilitation program approved by the administrator and to apply for reinstatement only at the discretion of the administrator.

These rules are intended to implement Iowa Code chapters 99D and 99F.

ITEM 3. Amend 491—Chapter 8, title, as follows:

CHAPTER 8
MUTUEL DEPARTMENT
WAGERING AND SIMULCASTING

ITEM 4. Amend rule 491—8.1(99D) by adopting the following new definitions in alphabetical order:

“Authorized receiver” means a receiver that conducts and operates a pari–mutuel wagering system on the results of contests being held or conducted and simulcast from the enclosures of one or more host associations.

“Guest association” means an association which offers licensed pari–mutuel wagering on contests conducted by another association (the host) in either the same state or another jurisdiction.

“Host association” means the association conducting a licensed pari–mutuel meeting from which authorized contests or entire performances are simulcast.

“Interstate simulcasting” means the telecast of live audio and visual signals of pari–mutuel racing sent to or received from a state outside the state of Iowa to an authorized racing or gaming facility for the purpose of wagering.

“Intrastate simulcasting” means the telecast of live audio and visual signals of pari–mutuel racing conducted on a licensed pari–mutuel track within Iowa sent to or received from an authorized pari–mutuel facility within Iowa for the purpose of pari–mutuel wagering.

“Pari–mutuel output data” means the data provided by the totalizator other than sales transaction data including, but not limited to, the odds, will pays, race results, and payoff prices.

“Sales transaction data” means the data between totalizator ticket–issuing machines and the totalizator central processing unit for the purpose of accepting wagers and generating, canceling and cashing pari–mutuel tickets and the financial information resulting from processing sales transaction data, such as handle.

ITEM 5. Amend subrule 8.2(3), introductory paragraph, as follows:

8.2(3) Pari–mutuel tickets. A pari–mutuel ticket is evidence of a contribution to the pari–mutuel pool operated by the association and is evidence of the obligation of the association to pay to the holder thereof such portion of the distributable amount of the pari–mutuel pool as is represented by such valid pari–mutuel ticket. The association shall cash all valid winning tickets when such are presented for payment during the course of the meeting where sold, and for a specified period after the last day of the meeting., as provided in paragraph 8.2(4)“g.”

ITEM 6. Amend 491—Chapter 8 by adopting the following new rules:

8.4(1) General.

a. Rules. All simulcasting must be transmitted live and all wagering on simulcasting shall be made in accordance with the commission rules on pari–mutuel wagering. Commission rules in effect during live racing shall remain in effect during simulcasting where applicable.

b. Transmission. The method used to transmit sales transaction and pari–mutuel output data must be approved by the commission, based upon the determination that provisions to secure the system and transmission are satisfactory.

c. Communication. A communication system between the host track and the receiving facility must be provided which will allow the totalizator operator and the commission representatives at the host track to communicate with the facility receiving the signal. The association is responsible during the racing program’s operating hours for reporting any problems or delays to the public.

d. Approval.

(1) All simulcasting, both interstate and intrastate, must be preapproved by the commission or commission representative. Each association conducting simulcasting shall submit an annual written simulcast proposal to the commission with the application for license renewal required by 491— Chapter 1.

(2) The commission representative, upon written request, may grant modifications to the annual simulcast proposal. The commission representative may approve or disapprove simulcast requests at the representative’s discretion. Factors that may be considered include, but are not limited to: economic conditions of an association, impact on other associations, impact on the Iowa breeding industry, other gambling in the state, and any other considerations the commission representative deems appropriate.

(3) Once simulcast authority has been granted by the commission or commission representative, it shall be the affirmative responsibility of the association granted simulcast authority to obtain all necessary permission from other states and tracks to simulcast the pari–mutuel races. In addition, the burden of adhering to state and federal laws concerning simulcasting rests on the association at all times.

8.4(2) Simulcast host.

a. Every host association, if requested, may contract with an authorized receiver for the purpose of providing authorized users its simulcast. All contracts governing participation in interstate or intrastate pools shall be submitted to the commission representative for prior approval. Contracts shall be of such content and in such format as required by the commission representative.

b. A host association is responsible for the content of the simulcast and shall use all reasonable effort to present a simulcast which offers the viewers an exemplary depiction of each performance.

c. Unless otherwise permitted by the commission representative, every simulcast will contain in its video content a digital display of actual time of day, the name of the host facility from which it emanates, the number of the contest being displayed, and any other relevant information available to patrons at the host facility.

d. The host association shall maintain such security controls, including encryption over its uplink and communications systems, as directed or approved by the commission or commission representative.

e. Financial reports shall be submitted daily or as otherwise directed by the commission representative. Reports shall be of such content and in such format as required by the commission representative.

8.4(3) Authorized receiver.

a. An authorized receiver shall provide:

(1) Adequate transmitting and receiving equipment of acceptable broadcast quality which shall not interfere with the closed circuit TV system of the host association for providing any host facility patron information.

(2) Pari–mutuel terminals, pari–mutuel odds displays, modems and switching units enabling pari–mutuel data transmissions, and data communications between the host and guest associations.

(3) A voice communication system between each guest association and the host association providing timely voice contact among the commission representative, placing judges, and pari–mutuel departments.

b. The guest association and all authorized receivers shall conduct pari–mutuel wagering pursuant to the applicable commission rules.

c. Not less than 30 minutes prior to the commencement of transmission of the performance of pari–mutuel contests, the guest association shall initiate a test program of its transmitter, encryption and decoding, and data communication to ensure proper operation of the system.

d. The guest association shall, in conjunction with the host association(s) for which it operates pari–mutuel wagering, provide the commission representative with a certified report of its pari–mutuel operations as directed by the commission representative.

e. Every authorized receiver shall file with the commission an annual report of its simulcast operations and an audited financial statement.

f. The mutuel manager shall notify the commission representative when the transfer of pools, pool totals, or calculations are in question, or if partial or total cancellations occur, and shall suggest alternatives for continued operation. Should loss of video signal occur, wagering may continue with approval from the commission representative.

8.5(1) General.

a. All contracts governing participation in interstate common pools shall be submitted to the commission representative for prior approval. Financial reports shall be submitted daily or as otherwise directed by the commission representative. Contracts and reports shall be of such content and in such format as required by the commission representative.

b. Individual wagering transactions are made at the point of sale in the state where placed. Pari–mutuel pools are combined for computing odds and calculating payoffs but will be held separate for auditing and all other purposes.

c. Any surcharges or withholdings in addition to the takeout shall be applied only in the jurisdiction otherwise imposing such surcharges or withholdings.

d. In determining whether to approve an interstate common pool which does not include the host association or which includes contests from more than one association, the commission representative shall consider and may approve use of a bet type which is not utilized at the host association, application of a takeout rate not in effect at the host association, or other factors which are presented to the commission representative.

e. The content and format of the visual display of racing and wagering information at facilities in other jurisdictions where wagering is permitted in the interstate common pool need not be identical to the similar information permitted or required to be displayed under these rules.

8.5(2) Guest state participation in interstate common pools.

a. With the prior approval of the commission representative, pari–mutuel wagering pools may be combined with corresponding wagering pools in the host state, or with corresponding pools established by one or more other jurisdictions.

b. The commission representative may permit adjustment of the takeout from the pari–mutuel pool so that the takeout rate in this jurisdiction is identical to that of the host association, or identical to that of other jurisdictions participating in a merged pool.

c. When takeout rates in the merged pools are not identical, the net–price calculation shall be the method by which the differing takeout rates are applied.

d. Rules established in the state of the host association designated for a pari–mutuel pool shall apply.

e. The commission representative shall approve agreements made between the association and other participants in interstate common pools governing the distribution of breakage between the jurisdictions.

f. If, for any reason, it becomes impossible to successfully merge the bets placed into the interstate common pool, the association shall make payoffs in accordance with payoff prices that would have been in effect if prices for the pool of bets were calculated without regard to wagers placed elsewhere; except that, with the permission of the commission representative, the association may alternatively determine either to pay winning tickets at the payoff prices at the host association, or to declare such accepted bets void and make refunds in accordance with the applicable rules.

8.5(3) Host state participation in merged pools.

a. With the prior approval of the commission representative, an association licensed to conduct pari–mutuel wagering may determine that one or more of its contests be utilized for pari–mutuel wagering at guest facilities in other states and may also determine that pari–mutuel pools in guest states be combined with corresponding wagering pools established by it as the host association or comparable wagering pools established by two or more states.

b. When takeout rates in the merged pool are identical, the net–price calculation shall be the method by which the differing takeout rates are applied.

c. Rules of racing established for races held in this state shall also apply to interstate common pools unless the commission representative shall specifically determine otherwise.

d. The commission representative shall approve agreements made between the association and other participants in interstate common pools governing the distribution of breakage between the jurisdictions.

e. Any contract for interstate common pools entered into by the association shall contain a provision to the effect that if, for any reason, it becomes impossible to successfully merge the bets placed in another state into the interstate common pool formed by the association or if, for any reason, the commission representative or association determines that attempting to effect transfer of pool data from the guest state may endanger the association’s wagering pool, the association shall have no liability for any measure taken which may result in the guest’s wagers not being accepted into the pool.

8.5(4) Takeout rates in interstate common pools.

a. With the prior approval of the commission representative, an association wishing to participate in an interstate common pool may change its takeout rate so as to achieve a common takeout rate with all other participants in the interstate common pool.

b. An association wishing to participate in an interstate common pool may request that the commission representative approve a methodology whereby host association and guest association states with different takeout rates for corresponding pari–mutuel pools may effectively and equitably combine wagers from the different states into an interstate common pool.

ITEM 7. Rescind subrule 10.4(2), paragraph “d,” subparagraph (1), and adopt in lieu thereof the following new subparagraph (1):

(1) Schedule. In the absence of a specific contract or special agreement, the following jockey mount fees apply:

ITEM 8. Rescind and reserve 491—Chapter 12.

ITEM 9. Rescind and reserve 491—Chapter 13.

Pursuant to the authority of Iowa Code sections 437A.4 and 437A.5, the Director of Revenue and Finance hereby gives notice of the electric delivery tax rate, the municipal electric transfer replacement tax rate, the natural gas delivery tax rate, and the municipal natural gas transfer replacement tax rate for each competitive service area in the state. These rates will be used in conjunction with the number of kilowatt hours of electricity and the number of therms of natural gas delivered to consumers in calendar year 1999 by each taxpayer to determine the tax due for each taxpayer in the 2000–2001 fiscal year.