Pages 112 to 124 include ARC 0827B to ARC 0835B

Administrative rules review committee 105

Schedule for rule making 103

Publication procedures 104

Administrative rules on CD–ROM 104

Agency identification numbers 110

Opinions summarized 133

CITATION OF ADMINISTRATIVE RULES 107

Public Health Department[641]
Radioactive waste transportation,
38.8(11) Delay 125

Filed Emergency After Notice, Assisted
living programs, 27.1, 27.8, 27.9
ARC 0828B 121

Executive Order number 20 126

Executive Order number 21 129

Proclamation—Special election 131

Proclamation—Disaster emergency 132

Notice, Food stamp program—employment
and training, participation allowance, workfare
program, 65.3, 65.28, 65.46(4), 65.49, 65.50
ARC 0827B 112

Notice, Investment advisers, 50.94,
50.96 to 50.99, 50.103(2), 50.104(1)
50.109 ARC 0834B 114

Notice, Meeting room policy, ch 4
ARC 0835B 116

Notice, Standards of practice—automated
dispensing systems, 13.6 ARC 0833B 118

Delay, Radioactive waste transportation,
38.8(11) 125

Summarized list 108

Notice, Income tax returns for corporations
storing goods in an Iowa warehouse,
52.1(9) ARC 0831B 118

Filed, Multilevel marketers—audit by
department, 4.1(4)“b”(1) ARC 0829B 123

Filed, Tobacco master settlement agreement,
ch 85 ARC 0830B 123

Notice—Public funds interest rates 119

Notice 120

Notice, Land restoration rules—amendment,
9.1(3)“f” ARC 0832B 120

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.

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

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

Subscriptions and Distribution Telephone: (515)242–5120
Fax: (515)242–5974

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

STEPHANIE A. HOFF, Assistant Editor (515)281–8157

Fax: (515)281–4424

The Iowa Administrative Bulletin is sold as a separate publication and may be purchased by subscription or single copy. All subscriptions will expire on June 30 of each year. Subscriptions must be paid in advance and are prorated quarterly.

July 1, 2001, to June 30, 2002 $273.00 plus $16.38 sales tax
October 1, 2001, to June 30, 2002 $215.00 plus $12.90 sales tax
January 1, 2002, to June 30, 2002 $144.50 plus $8.67 sales tax
April 1, 2002, to June 30, 2002 $72.00 plus $4.32 sales tax

Single copies may be purchased for $20.50 plus $1.23 sales tax.

The Iowa Administrative Code and Supplements are sold in complete sets and subscription basis only. All subscriptions for the Supplement (replacement pages) must be for the complete year and will expire on June 30 of each year.

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

Iowa Administrative Code - $1,252.75 plus $75.17 sales tax

(Price includes 22 volumes of rules and index, plus a one–year subscription to the Code Supplement and the Iowa Administrative Bulletin. Additional binders may be purchased for $11.75 plus $.71 sales tax.)

Iowa Administrative Code Supplement - $440.50 plus $26.43 sales tax

(Subscription expires June 30, 2002)

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

Department of General Services

Rules will not be accepted after 12 o’clock noon on the Friday filing deadline days unless prior approval has been received from the Administrative Rules Coordinator’s office.

If the filing deadline falls on a legal holiday, submissions made on the following Monday will be accepted.

TO: Administrative Rules Coordinators and Text Processors of State Agencies

FROM: Kathleen K. Bates, Iowa Administrative Code Editor

SUBJECT: Publication of Rules in Iowa Administrative Bulletin

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

1. To facilitate the publication of rule–making documents, we request that you send your document(s) as an attachment(s) to an E–mail message, addressed to both of the following:

bruce.carr@legis.state.ia.us and

kathleen.bates@legis.state.ia.us

2. Alternatively, you may send a PC–compatible diskette of the rule making. Please indicate on each diskette the following information: agency name, file name, format used for exporting, and chapter(s) amended. Diskettes may be delivered to the Administrative Code Division, First Floor South, Grimes State Office Building, or included with the documents submitted to the Governor’s Administrative Rules Coordinator.

Please note that changes made prior to publication of the rule–making documents are reflected on the hard copy returned to agencies by the Governor’s office, but not on the diskettes; diskettes are returned unchanged.

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

Containing: Iowa Administrative Code (updated through December 2000)
Iowa Administrative Bulletins (July 2000 through December 2000)
Iowa Court Rules (updated through December 2000)

For free brochures and order forms contact:

Legislative Service Bureau
Attn: Ms. Stephanie Cox
State Capitol
Des Moines, Iowa 50319
Telephone: (515)281–3566 Fax: (515)281–8027
lsbinfo@legis.state.ia.us

The Administrative Rules Review Committee will hold its regular statutory meeting on Tuesday, August 14, 2001, at 10 a.m. and Wednesday, August 15, 2001, at 9 a.m. in Room 116, State Capitol, Des Moines, Iowa. The following rules will be reviewed:

HUMAN SERVICES DEPARTMENT[441] (Cont’d)

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

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]

Agricultural Development Authority[25]

Soil Conservation Division[27]

ATTORNEY GENERAL[61]

AUDITOR OF STATE[81]

CITIZENS’ AIDE[141]

CIVIL RIGHTS COMMISSION[161]

COMMERCE DEPARTMENT[181]

Alcoholic Beverages Division[185]

Banking Division[187]

Credit Union Division[189]

Insurance Division[191]

Professional Licensing and Regulation Division[193]

Accountancy Examining Board[193A]

Architectural Examining Board[193B]

Engineering and Land Surveying Examining Board[193C]

Landscape Architectural Examining Board[193D]

Real Estate Commission[193E]

Real Estate Appraiser Examining Board[193F]

Savings and Loan Division[197]

Utilities Division[199]

CORRECTIONS DEPARTMENT[201]

Parole Board[205]

CULTURAL AFFAIRS DEPARTMENT[221]

Arts Division[222]

Historical Division[223]

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

City Development Board[263]

Iowa Finance Authority[265]

EDUCATION DEPARTMENT[281]

Educational Examiners Board[282]

College Student Aid Commission[283]

Higher Education Loan Authority[284]

Iowa Advance Funding Authority[285]

Libraries and Information Services Division[286]

Public Broadcasting Division[288]

School Budget Review Committee[289]

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]

INFORMATION TECHNOLOGY DEPARTMENT[471]

INSPECTIONS AND APPEALS DEPARTMENT[481]

Employment Appeal Board[486]

Foster Care Review Board[489]

Racing and Gaming Commission[491]

State Public Defender[493]

LAW ENFORCEMENT ACADEMY[501]

MANAGEMENT DEPARTMENT[541]

Appeal Board, State[543]

City Finance Committee[545]

County Finance Committee[547]

NATURAL RESOURCES DEPARTMENT[561]

Energy and Geological Resources Division[565]

Environmental Protection Commission[567]

Natural Resource Commission[571]

Preserves, State Advisory Board[575]

PERSONNEL DEPARTMENT[581]

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 section 234.6(4), the Department of Human Services proposes to amend Chapter 65, “Administration,” appearing in the Iowa Administrative Code.

These amendments make changes to food stamp policy to:

• Change the name of the Job Training Partnership Act (JTPA) to the Workforce Investment Act of 1998 (WIA).

• Update the rules on food stamp employment and training (FSET) and delete the names of counties in which the program will be offered. The Department shall offer food stamp employment and training components in counties having a monthly average of 500 or more mandatory work registrants. The Department shall offer components in additional counties subject to the availability of sufficient state and federal funding to cover program costs. At the present time the program is offered only in five counties.

• Revise participation allowances to a maximum of $50 and a minimum of $25. The amount needs to be flexible to avoid a deficit in the FSET program. This confers a benefit on the clients as current rules allow only a $25 allowance.

• Establish a permanent workfare program for able–bodied adults without dependents (ABAWDs) as required under federal regulations as of October 1, 2001. Without this change, 200 ABAWDs would not receive food stamps. Current rules would have ended the pilot program September 30, 2001.

• Rescind rule 441—65.49(234) because of the establishment of the permanent workfare program.

These amendments do not provide for waivers because federal law does not allow waivers.

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, 1305 East Walnut, Des Moines, Iowa 50319–0114, on or before August 15, 2001.

These amendments are intended to implement Iowa Code section 234.12.

The following amendments are proposed.

ITEM 1. Amend rule 441—65.3(234) as follows:

441—65.3(234) Administration of program. The food stamp program shall be administered in accordance with the Food Stamp Act of 1977 and in accordance with federal regulation, Title 7, Parts 270 through 282 as amended to November 21, 2000 June 1, 2001.

A copy of the federal law and regulations may be obtained at no more than the actual cost of reproduction by contacting the Division of Economic Assistance, Department of Human Services, 1305 East Walnut, Hoover State Office Building, Des Moines, Iowa 50319–0114, (515)281–3133.

This rule is intended to implement Iowa Code section 234.12.

ITEM 2. Amend rule 441—65.28(234) as follows:

Rescind subrule 65.28(8) and adopt the following new subrule in lieu thereof:

65.28(8) Employment and training components. Employment and training components include individual job search, job club, educational services (GED/ABE/ESL) and Workforce Investment Act of 1998 (WIA) activities. The department shall offer food stamp employment and training components in counties having a monthly average of 500 or more mandatory work registrants. The department shall offer components in additional counties subject to the availability of sufficient state and federal funding to cover program costs. Availability of components may vary among the areas where employment and training is offered.

a. Job club. The food stamp employment and training job club shall be modeled after the family investment program’s PROMISE JOBS job club. Employment and training service provider staff may require a participant who, for any reason, is absent during the classroom portion of job club to repeat the entire period of classroom training. Additional allowances as provided for by subrule 65.28(11) shall not be paid to these individuals.

Each job club participant shall be required to read and sign Form 62–2053, Your Rights and Responsibilities, acknowledging that a complete explanation of the program and what constitutes noncompliance and the sanctions for noncompliance have been provided.

b. Educational services (GED/ABE/ESL). Persons referred to the job club component may elect to be referred to the educational services program. Educational services offered include General Educational Development (GED), Adult Basic Education (ABE), or English as a Second Language (ESL). The food stamp employment and training service provider shall individually assess persons requesting referral to this program. If it is determined that obtaining educational services would directly enhance the person’s likelihood of obtaining employment, the food stamp employment and training service provider shall refer the person to this program subject to available funds. Participation in the educational services program for eight consecutive weeks is equivalent to participation in two four–week employment and training components. The food stamp employment and training service provider shall assign to the job club component persons who fail to begin or to continue the educational program during the two four–week components.

c. Workforce Investment Act of 1998 (WIA). Persons electing to participate in and selected for participation in WIA are participating in an employment and training component.

d. Individual job search (IJS). Participants in IJS shall receive information about the program. At a minimum, the orientation shall include an explanation of services provided, of participation requirements, and of each participant’s rights and responsibilities. Employment services staff shall require each participant to read and sign Form 62–2053,Your Rights and Responsibilities, at the conclusion of the presentation, acknowledging that a complete explanation of the program and what constitutes noncompliance and the sanctions for noncompliance have been provided.

Employment services staff shall give each participant a job search assignment. Employment services staff shall require the participant to contact up to 24 employers, face–to–face, for the purpose of submitting employment applications and arranging for employment interviews. To qualify as a job contact, the participants must present themselves to prospective employers as available for work.

The prospective employer must ordinarily employ persons in areas of work for which the applicant is reasonably qualified based on the participant’s skills, prior work experience and level of education. The participant may not contact the same employer more than once during the component unless the initial contact indicated that vacancies in suitable positions might soon exist. Employment services staff shall require each participant to submit written documentation of employer contacts made using Form 60–0259, Job Service Work Search Record. The participant shall provide documentation in person to employment services staff at a scheduled meeting at the conclusion of the four–week participation period. At the beginning of the period, employment services staff shall give each participant written notice of the time, date, and location of this meeting.

Amend subrule 65.28(11) as follows:

65.28(11) Participation allowance and dependent care reimbursements.

a. Participants The department shall provide participants in employment and training programs shall be provided an allowance for costs of transportation or other costs (other than dependent care costs) reasonably necessary and directly related to participation in the components of a minimum of $25 to a maximum of $50 for each four–week component in which the participant is placed. The amount of the allowance is dependent on sufficient state and federal funding to cover the costs.

EXCEPTION: Participation in JTPA WIA (65.28(8), paragraph “d” “c”) does not entitle the person to a participation allowance. The department shall authorize the employment and training service provider to provide the allowance shall be authorized on the first day of each component in which the person participates. The department shall authorize the employment and training service provider to provide the allowance shall be authorized only once per component in each federal fiscal year. Participation in educational services (65.28(8), paragraph “c” “b”) is considered participation in two consecutive four–week components.

b. A reimbursement The department shall authorize the employment and training service provider to reimburse the provider of care directly for the actual costs of dependent care expenses that the department’s designee employment and training service provider determines to be necessary for the participation of a person in the components. Reimbursement shall not to exceed $200 for each child under two years of age and $175 for each other dependent per four–week component will be paid directly to the provider of the care. The employment and training service provider shall only reimburse reimbursement will only be made to a person not included in the food stamp household. The amount of the reimbursement cannot exceed the going rate in the community as determined for PROMISE JOBS. For The employment and training service provider shall only reimburse participants in the DES/IJS component, during the regular school term, reimbursement will be made only to the extent that the contacts required in this component cannot be made while dependent children who attend school are in school. Individuals shall be deferred The employment and training service provider shall defer a person from participation in a component if the dependent care expenses exceed the dependent care reimbursement. Deferment shall continue until a suitable component is available or circumstances change and monthly dependent care expenses no longer exceed the reimbursement amount. Reimbursement is dependent on sufficient state and federal funding to cover the costs.

EXCEPTION: The caretaker relative of a dependent in a family receiving FIP shall is not be eligible for the dependent care reimbursement. Participation in JTPA WIA (65.28(8), paragraph “d” “c”) does not entitle the person to a dependent care reimbursement. The department shall authorize the employment and training service provider to provide the reimbursement shall be authorized after the last day of each component in which the person participates upon presentation of proof of the expense incurred and hours of care for each dependent. The department shall authorize the employment and training service provider to provide reimbursement shall be authorized only once per component in each federal fiscal year. Participation in educational services (65.28(8), paragraph “c” “b”) is considered participation in two consecutive four–week components.

Amend subrule 65.28(12), introductory paragraph, as follows:

65.28(12) Failure to comply. This subrule does not apply to persons electing to participate in the employment and training components of educational services and JTPA WIA (see paragraphs 65.28(8)“c” “b” and “d” “c”).

Amend subrule 65.28(13) as follows:

65.28(13) Noncompliance with comparable requirements. Failure The department shall treat failure to comply with a JIB an unemployment compensation requirement that is comparable to a food stamp work registration or employment and training requirement shall be treated as a failure to comply with the corresponding food stamp requirement. Disqualification procedures in subrule 65.28(12) shall be followed.

Rescind subrule 65.28(18) and adopt the following new subrule in lieu thereof:

65.28(18) Measuring the three–year period for able–bodied nonexempt adults without dependents. The three–year period is a 36–month consecutive period of time. The 36–month period as provided for in federal regulations at7 CFR 273.24(b) as amended to June 1, 2001, starts with the first month counted toward the 3–month limit. Periods during the 36 months in which the person may receive benefits because of being exempt from the requirement do not reset the 36–month period. December 1, 1996, is the first month for which a person’s 36–month period can begin. When the person’s first 36–month period expires, a new 36–month period begins starting with the first month counted toward the 3–month limit.

Amend subrule 65.28(19) as follows:

65.28(19) Pilot workfare Workfare program for able–bodied adults without dependents (ABAWDs). The pilot workfare program is designed to allow ABAWDs who are required to work as an eligibility requirement for receipt of food stamp benefits by subrule 65.28(18) as provided for in federal regulations at 7 CFR 273.24 as amended to June 1, 2001, the opportunity to perform public service work in private or public nonprofit organizations in exchange for the value of their monthly food stamp benefits. The pilot workfare program is a component of the food stamp employment and training program set forth in subrule 65.28(7). Participation in the pilot workfare program is voluntary.

a. ABAWDs Able–bodied adults without dependents (ABAWDs) who participate in the pilot workfare program may meet the work requirements of subrule 65.28(18) necessary to be eligible for food stamp benefits by working in a job slot for a required number of hours per month. The required number of hours of work shall be the value of the workfare participant’s food stamp allotment divided by the federal minimum wage. If the workfare participant is a member of a household of two or more members, the employment and training service provider shall prorate the household’s monthly food stamp benefit allotment shall be prorated among the household members, and. The employment and training service provider shall divide the workfare participant’s pro–rata share of the household’s allotment shall be divided by the federal minimum wage to determine the number of hours the individual must work.

b. and c. No change.

d. Workfare The department shall be offered offer workfare in selected counties. Selection The department shall be based on prioritizing prioritize counties according to:

(1) to (3) No change.

(4) The availability of state and federal funding.

e. Counties in which workfare is not offered are designated to be “exempt” counties.

ITEM 3. Rescind and reserve subrule 65.46(4).

ITEM 4. Rescind and reserve rule 441—65.49(234).

ITEM 5. Amend rule 441—65.50(234) as follows:

441—65.50(234) No increase in food stamp benefits. When a household’s means–tested federal, state, or local public assistance cash benefits are reduced because of a failure to perform an action required by the public assistance program, the department shall reduce the household’s food stamp benefit allotment shall be reduced by 10 percent as provided for in federal regulations at 7 CFR 273.11(j), (k), and (l) as amended to June 1, 2001, for the duration of the other program’s penalty.

Pursuant to the authority of Iowa Code section 502.607, the Insurance Division hereby gives Notice of Intended Action to amend Chapter 50, “Regulation of Securities Offerings and Those Who Engage in the Securities Business,” Iowa Administrative Code.

The proposed amendments remove registration procedures no longer applicable to investment advisers and federal covered advisers within the state of Iowa and substitute certain electronic registration requirements for these advisers. These amendments also make technical corrections to investment adviser and investment adviser representative examination rules and disclosure statement and privacy rules.

The purposes of these amendments are to implement recent statutory amendments, further legislative goals, and improve administrative efficiency and effectiveness.

Any interested person may make written suggestions or comments on these proposed amendments prior to Friday, August 17, 2001. These written materials may be mailed to Craig A. Goettsch, Securities Bureau, 340 Maple Street, Des Moines, Iowa 50319–0066, or may be transmitted via facsimile to (515)281–3059.

These amendments are subject to waiver pursuant tothe waiver provisions contained in rules 191—4.21(17A) through 191—4.36(17A).

It is the Division’s intent to adopt these amendments following the public comment period and make them effective on November 1, 2001.

These amendments are intended to implement Iowa Code section 502.302 as amended by 2001 Iowa Acts, Senate File 473, and Iowa Code section 502.305.

The following amendments are proposed.

ITEM 1. Rescind rule 191—50.94(502) and adopt new rule 191—50.94(502) in lieu thereof:

50.94(1) Designation. Pursuant to the uniform securities Act, Iowa Code section 502.302(1) as amended by 2001 Iowa Acts, Senate File 473, the administrator designates the Web–based Investment Adviser Registration Depository (IARD) operated by the National Association of Securities Dealers to receive and store filings and collect related fees from investment advisers on behalf of the administrator.

50.94(2) Use of IARD. Unless otherwise provided, all investment adviser applications, amendments, reports, notices, related filings and fees required to be filed with the administrator pursuant to the rules promulgated under the Act shall be filed electronically with and transmitted to IARD. The following additional conditions relate to such electronic filings:

a. Electronic signature. When a signature or signatures are required by the particular instructions of any filing to be made through IARD, a duly authorized signatory of the applicant, as required, shall affix the duly authorized signatory’s electronic signature to the filing by typing the duly authorized signatory’s name in the appropriate fields and submitting the filing to IARD. Submission of a filing in this manner shall constitute irrefutable evidence of legal signature by any individuals whose names are typed on the filing.

b. When filed. Solely for purposes of a filing made through IARD, a document is considered filed with the administrator when all fees are received and the filing is accepted by IARD on behalf of the state.

50.94(3) Electronic filing. Notwithstanding subrule 50.94(2), the electronic filing of any particular document and the collection of related processing fees shall not be required until such time as IARD provides for receipt of such filings and fees and 30 days’ notice is provided by the administrator. Any documents or fees required to be filed with the administrator that are not permitted to be filed with or cannot be accepted by IARD shall be filed directly with the administrator.

50.94(4) Hardship exemptions. This section provides two hardship exemptions from the requirements to make electronic filings as required by the rules.

a. Temporary hardship exemption.

(1) Investment advisers registered or required to be registered under the Act who experience unanticipated technical difficulties that prevent submission of an electronic filing to IARD may request a temporary hardship exemption from the requirements to file electronically.

(2) To request a temporary hardship exemption, the investment adviser must:

1. File Form ADV–H [17 CFR 279.3] in paper format with the administrator where the investment adviser’s principal place of business is located, no later than one business day after the filing that is the subject of the Form ADV–H was due; and

2. Submit the filing that is the subject of the FormADV–H in electronic format to IARD no later than seven business days after the filing was due.

(3) Effective date—upon filing. The temporary hardship exemption will be deemed effective upon receipt by the administrator of the complete Form ADV–H. Multiple temporary hardship exemption requests within the same calendar year may be disallowed by the administrator.

b. Continuing hardship exemption.

(1) Criteria for exemption. A continuing hardship exemption will be granted only if the investment adviser is able to demonstrate that the electronic filing requirements of this rule are prohibitively burdensome.

(2) To apply for a continuing hardship exemption, the investment adviser must:

1. File Form ADV–H [17 CFR 279.3] in paper format with the administrator at least 20 business days before a filing is due; and

2. If a filing is due to more than one administrator, the Form ADV–H must be filed with the administrator where the investment adviser’s principal place of business is located. The administrator who received the application will grant or deny the application within ten business days after the filing of Form ADV–H.

(3) Effective date—upon approval. The exemption is effective upon approval by the administrator. The time period of the exemption may be no longer than one year after the date on which the Form ADV–H is filed. If the administrator approves the application, the investment adviser must, no later than five business days after the exemption approval date, submit filings to IARD in paper format (along with the appropriate processing fees) for the period of time for which the exemption is granted.

c. Recognition of exemption. The decision to grant or deny a request for hardship exemption will be made by the administrator where the investment adviser’s principal place of business is located and shall be followed by the administrator in the other state(s) where the investment adviser is registered.

This rule is intended to implement Iowa Code section 502.302 as amended by 2001 Iowa Acts, Senate File 473.

ITEM 2. Rescind rule 191—50.96(502) and adopt new rule 191—50.96(502) in lieu thereof:

50.96(1) Investment adviser applications—required filings. The application for initial registration as an investment adviser pursuant to the uniform securities Act, Iowa Code section 502.302(1) as amended by 2001 Iowa Acts, Senate File 473, shall be made by:

a. Completing Form ADV Part I (Uniform Application for Investment Adviser Registration) [17 CFR 279.1] in accordance with the form instructions and by filing Part I with IARD;

b. Submitting the $100 filing fee to IARD as required by the Act, Iowa Code section 502.302(3) as amended by 2001 Iowa Acts, Senate File 473;

c. Completing Form ADV Part II and by filing Part II with the administrator.

50.96(2) Investment adviser applications—discretionary filings. The application for initial registration may also include the following:

a. Such financial statements as set forth in rule 50.106(502), including a copy of the balance sheet for the last fiscal year, and if such balance sheet is as of a date more than 45 days from the date of filing of the application, an unaudited balance sheet prepared as set forth in rule 50.106(502);

b. A copy of the surety bond required by rule 50.107(502), if applicable, shall be made available upon request of the administrator; and

c. Any other information the administrator may reasonably require.

50.96(3) Investment adviser renewals—required filings. Annual renewals by investment advisers shall be made by:

a. Filing with IARD an annual renewal registration as an investment adviser;

b. Submitting the $100 filing fee to IARD as required by the uniform securities Act, Iowa Code section 502.302(3) as amended by 2001 Iowa Acts, Senate File 473.

50.96(4) Investment adviser renewals—discretionary filings. The administrator may require the filing of a surety bond under rule 50.107(502).

50.96(5) Updates and amendments.

a. An investment adviser must file with IARD, in accordance with the instructions in the Form ADV, any amendments to the investment adviser’s Form ADV;

b. An amendment will be considered to be filed promptly if the amendment is filed within 30 days of the event that requires the filing of the amendment; and

c. Within 90 days of the end of the investment adviser’s fiscal year, an investment adviser must file with IARD an updated Form ADV.

50.96(6) Completion of filing. An application for initial or renewal registration is not considered filed for purposes of the uniform securities Act, Iowa Code section 502.302(1) as amended by 2001 Iowa Acts, Senate File 473, until the required fee and all required submissions have been received by the administrator.

This rule is intended to implement Iowa Code section 502.302 as amended by 2001 Iowa Acts, Senate File 473.

ITEM 3. Rescind rule 191—50.97(502) and adopt new rule 191—50.97(502) in lieu thereof:

50.97(1) Notice filing. The notice filing for a federal covered adviser pursuant to the uniform securities Act, Iowa Code section 502.302(2), shall be filed with IARD on an executed Form ADV (Uniform Application for Investment Adviser Registration) [17 CFR 279.1]. A notice filing of a federal covered adviser shall be deemed filed when the fee required by the Act, Iowa Code section 502.302(3) as amended by 2001 Iowa Acts, Senate File 473, and Form ADV are filed and accepted by IARD on behalf of the state.

50.97(2) Portions of Form ADV not yet accepted by IARD. Until IARD provides for the filing of Part II of Form ADV, the administrator will deem Part II of Form ADV filed if a federal covered adviser provides, within five days of a request, Part II of Form ADV to the administrator. A federal covered adviser is not required to submit Part II of Form ADV to the administrator unless requested.

50.97(3) Renewal. The annual renewal of the notice filing for a federal covered adviser pursuant to the uniform securities Act, Iowa Code section 502.302 as amended by 2001 Iowa Acts, Senate File 473, shall be filed with IARD. The renewal of the notice filing for a federal covered adviser shall be deemed filed when the fee required by the Act, Iowa Code section 502.302(3) as amended by 2001 Iowa Acts, Senate File 473, is filed with and accepted by IARD on behalf of the state.

50.97(4) Updates and amendments. A federal covered adviser must file with IARD, in accordance with instructions in the Form ADV, any amendments to the federal covered adviser’s Form ADV.

This rule is intended to implement Iowa Code section 502.302 as amended by 2001 Iowa Acts, Senate File 473.

ITEM 4. Amend 191—Chapter 50 by adopting the following new rule:

50.98(1) Electronic filing of Form ADV.

a. By November 1, 2001, each investment adviser registered or required to be registered under the Act must resubmit its Form ADV electronically with IARD if it has not previously done so, unless it has been granted a hardship exemption under subrule 50.94(4).

b. If the amendment to Form ADV is made after November 1, 2001, or at an earlier date if an investment adviser has filed its Form ADV [17 CFR 279.1] (or any amendments to Form ADV) electronically with IARD, the licensee must file amendments to Form ADV required by this section electronically with IARD, unless it has been granted a hardship exemption under subrule 50.94(4).

50.98(2) Reserved.

This rule is intended to implement Iowa Code section 502.302 as amended by 2001 Iowa Acts, Senate File 473.

ITEM 5. Amend 191—Chapter 50 by adopting the following new rule:

50.99(1) Investment adviser. The application for withdrawal of registration as an investment adviser pursuant to the uniform securities Act, Iowa Code section 502.304, shall be completed by following the instructions on Form ADV–W (Notice of Withdrawal from Registration as Investment Adviser) [17 CFR 279.2] and filed upon Form ADV–W with IARD.

50.99(2) Reserved.

This rule is intended to implement Iowa Code section 502.302 as amended by 2001 Iowa Acts, Senate File 473.

ITEM 6. Amend subrule 50.103(2), introductory paragraph, as follows:

50.103(2) The separate written disclosure statement required to be furnished by the solicitor to the client pursuant to 50.103(1)“c”(3)“3” “2” shall contain the following information:

ITEM 7. Amend paragraph 50.104(1)“q” as follows:

q. Failing to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information contrary to the provisions of Section 204A of the Investment Advisers Act of 1940 as required by 16 CFR 313.

ITEM 8. Amend subrule 50.109(1) as follows:

50.109(1) A person applying to be registered as an investment adviser or investment adviser representative under the Act shall provide the administrator with proof that the person has obtained a passing score on one of the following examinations examination requirements:

a. The Uniform Investment Adviser Law Examination (Series 65 examination) as implemented January 1, 2000; or

b. The General Securities Representative Examination (Series 7 examination) and the Uniform Combined State Law Examination (Series 66 examination) as implemented January 1, 2000.

ITEM 9. Rescind subrule 50.109(2) and adopt the following new subrule in lieu thereof:

50.109(2) The following shall also apply:

a. Any individual who is registered as an investment adviser or investment adviser representative in any jurisdiction in the United States on or before January 19, 2000, shall not be required to satisfy the examination requirements for continued registration.

b. Any individual who is registered as an investment adviser or investment adviser representative in any jurisdiction in the United States after the effective date of these rules shall not be required to satisfy the examination requirements for continued registration, provided that the jurisdiction in which the investment adviser or investment adviser representative is registered required the passage of the examinations in subrule 50.109(1).

c. An individual who has not been registered as an investment adviser or investment adviser representative in any jurisdiction for a period of two years shall be required to comply with the examination requirements of this rule.

d. The administrator may require additional examinations for any individual found to have violated the uniform securities Act.

Pursuant to the authority of Iowa Code sections 17A.3 and 256.52, the Commission of Libraries hereby gives Notice of Intended Action to rescind Chapter 4, “ICN Classroom Policy,” and adopt new Chapter 4, “Meeting Room Policy,” Iowa Administrative Code.

The proposed chapter reflects changes in the number and type of available meeting room facilities.

Any interested person may make written suggestions or comments on the proposed amendment on or before August 14, 2001. Such written suggestions or comments should be directed to Carol Simmons, State Library of Iowa, East 12th Street and Grand Avenue, Des Moines, Iowa 50319. Persons who wish to convey their views orally should contact Carol Simmons at (515)281–4105.

This amendment is intended to implement Iowa Code section 256.52(3)“a” and “c.”

The following amendment is proposed.

Rescind 286—Chapter 4 and adopt the following new chapter in lieu thereof:

CHAPTER 4
MEETING ROOM POLICY

286—4.1(256) Definitions. The definitions used in Iowa Code chapters 17A and 256 will apply for terms used throughout this chapter. In addition, the following definitions will apply:

“Americans with Disabilities Act” means P.L. 101–336, a federal Act to establish a clear and comprehensive prohibition of discrimination on the basis of disability.

“Good order” means that the room is left in good condition such that another group could follow without having to clean or set up the room.

“ICN” means the Iowa Communications Network, a fi–beroptic audio/video two–way, full–motion communications system that can connect multiple sites statewide.

“ICN site scheduler” means the individual or individuals at the host facility designated to schedule use of ICN classrooms.

“Meeting rooms” means meeting room facilities in the Ola Babcock Miller Building scheduled by the state library, including the first floor conference room, with seating for 10 persons around one table and additional seating for 6 observers; the third floor computer training lab with 18 computer workstations and full ICN capabilities; the third floor enhanced conference room (available winter 2001) with seating for 25 around a table, additional seating for observers, and full ICN capabilities; and the third floor traditional ICN classroom (available winter 2001) with seating for 30 to 35 persons.

286—4.2(256) Primary use. The primary purpose of the meeting rooms is the facilitation of library–related activities and activities of other building occupants. When the rooms are not being used for these purposes, the rooms will be available to other users on a first–come, first–served basis. The ICN–equipped meeting rooms are available for work–related purposes to any state government or library–related organization, as well as to any authorized ICN user. (See Iowa Code section 8D.2, subsections 4 and 5, for the definitions of authorized ICN users.) The first floor conference room is available for work–related purposes to any state government or library–related organization. Availability of the rooms will be determined by state library staff. The state library reserves the right to cancel reservations when circumstances warrant; cancellations will not be made without prior notification.

286—4.3(256) Library hours, access and information. The meeting rooms will be available during library hours, Monday through Friday, 8 a.m. to 4:30 p.m. Special requests for meetings outside these hours will be considered on an individual basis. State library staff must be present in the building during any after–hours use of the meeting rooms.

4.4(1) Requests for the use of a meeting room must be submitted through the state library scheduler at least 72 hours (three working days) in advance of the meeting. If cancellations of ICN meetings are necessary, the request to cancel must be submitted within 48 hours (two working days) of the meeting. Requests for the ICN–equipped computer training lab may be made through the ICN VOSS scheduling system.

4.4(2) Meeting rooms may be reserved up to three months in advance. The meeting rooms are intended for one–time events or for brief series of meetings. Users may reserve rooms for a maximum of three separate events at any one time, and a maximum of five consecutive days in any one month. The meeting rooms are not intended for long–term training classes or semester–long classes.

286—4.5(256) Training/assistance with equipment. Users who need training or assistance in the use of the computer lab or the ICN equipment or both must schedule a training session or request assistance at least two working days in advance of the meeting. Special arrangements may be made for use (in the meeting rooms only) of the state library’s overhead projector, video projector, LCD panel, VCR/TV on cart, screen, portable podium with microphone, or flip–chart easel by contacting the state library scheduler.

4.6(1) The user is financially responsible for all ICN telecommunication charges incurred for the use of the ICN room.

4.6(2) The user is responsible for leaving the meeting room in good order and is financially responsible for any damage to or loss of library property.

4.6(3) The user is responsible for ensuring that the scheduled meeting or activity does not disturb state library customers or other building occupants, interfere with work–related activities of staff, or interfere with the continuing conduct of state agency business.

4.6(4) Food and nonalcoholic beverages are allowed in the meeting rooms. All refreshments (including coffee and condiments) are to be provided by the user. Users are responsible for discarding their own trash. Cleanup is the responsibility of the user.

4.6(5) Grounds to refuse the user are failure to leave the room in good order, misconduct or creating a disturbance, or loss of or damage to property and may result in the immediate termination of the meeting or event.

4.7(1) Smoking is not permitted. The building is smoke–free. Users must comply with posted fire regulations.

4.7(2) Users of the meeting rooms must comply with the Americans with Disabilities Act and are responsible for providing qualified interpreters or auxiliary aids if requested. The cost of reasonable accommodation is assumed by the user.

4.7(3) Use or transmission of copyrighted material, without prior approval of the copyright holder, is strictly prohibited. Appropriate use of copyrighted material is the responsibility of the user.

4.7(4) Visitor parking is available in designated areas around the capitol complex. Complaints or accident reports are to be filed with Iowa state patrol by telephone at 281–5608.

4.8(1) The state library is not responsible for any unscheduled interruption of a meeting or an ICN session, or the cancellation of an ICN session by the ICN or a host site.

4.8(2) The state library is not responsible for accidents, injury or damage to, or theft of personal items occurring in connection with use of the meeting rooms.

4.8(3) Permission to use the meeting rooms does not imply endorsement of, or agreement with, the purpose(s) or the expression of any individual or organization by the Iowa commission of libraries, the state library, or its staff.

286—4.9(256) Remedies. Any user who fails to abide by these policies may be denied future use of the meeting rooms.

These rules are intended to implement Iowa Code section 256.52(3)“a” and “c.”

Pursuant to the authority of Iowa Code section 147.76, the Board of Medical Examiners hereby gives Notice of Intended Action to amend Chapter 13, “Standards of Practice and Professional Ethics,” Iowa Administrative Code.

The proposed rule requires physicians who utilize an automated dispensing system or a dispensing system that employs technology for prescription drugs to establish an internal quality control assurance plan that meets the standards described in the new rule.

The proposed rule was approved at the June 28, 2001, regular meeting of the Board of Medical Examiners.

Any interested person may present written comments on the proposed rule not later than 4 p.m. on August 14, 2001. Such written materials should be sent to Ann E. Mowery, Executive Director, Board of Medical Examiners, 400 S.W. 8th Street, Suite C, Des Moines, Iowa 50309–4686.

There will be a public hearing on August 14, 2001, at 11 a.m. in the Board office, at which time persons may present their views either orally or in writing. The Board of Medical Examiners office is located at 400 S.W. 8th Street, Suite C, Des Moines, Iowa.

This rule is intended to implement Iowa Code section 147.107 and 2001 Iowa Acts, House File 726, section 5(10), paragraph “i.”

The following new rule is proposed.

653—13.6(147,79GA,HF726) Standards of practice—automated dispensing systems. A physician who dispenses prescription drugs via an automated dispensing system or a dispensing system that employs technology may delegate nonjudgmental dispensing functions to staff assistants in the absence of a pharmacist or physician provided that the physician utilizes an internal quality control assurance plan that ensures that the medication dispensed is the medication that was prescribed. The physician shall be physically present to determine the accuracy and completeness of any medication that is reconstituted prior to dispensing.

13.6(1) An internal quality control assurance plan shall include the following elements:

a. The physician responsible for the internal quality assurance plan and testing;

b. Methods that the dispensing system employs, e.g., bar coding, to ensure accuracy of the patient’s name and medication, dosage, directions and amount of medication prescribed;

c. Standards that the physician expects to be met to ensure the accuracy of the dispensing system and the training and qualifications of staff members assigned to dispense via the dispensing system;

d. Staff training and qualifications for dispensing via the dispensing system;

e. A list of staff members who meet the qualifications and who are assigned to dispense via the dispensing system;

f. A plan for testing the dispensing system and each staff member assigned to dispense via the dispensing system;

g. The results of testing that show compliance with the standards prior to implementation of the dispensing system and prior to approval of each staff member to dispense via the dispensing system;

h. A plan for interval testing of the accuracy of dispensing, at least annually; and

i. A plan for addressing inaccuracies, including discontinuing dispensing until the accuracy level can be reattained.

13.6(2) Those dispensing systems already in place shall show evidence of a plan and testing within two months of the effective date of this rule.

13.6(3) The internal quality control assurance plan shall be submitted to the board of medical examiners upon request.

This rule is intended to implement Iowa Code section 147.107 and 2001 Iowa Acts, House File 726, section 5(10), paragraph “i.”

Pursuant to the authority of Iowa Code sections 421.17(19) and 422.68, the Department of Revenue and Finance hereby gives Notice of Intended Action to amend Chapter 52, “Filing Returns, Payment of Tax and Penalty and Interest,” Iowa Administrative Code.

Item 1 provides that foreign corporations are not required to file Iowa corporation income tax returns if their only activities in Iowa are the storage of goods for a period of 60 consecutive days or less in a warehouse for hire located in Iowa, provided that the foreign corporation transports or causes a carrier to transport such goods to that warehouse and that none of these goods are delivered or shipped to a purchaser in Iowa. To clarify the statutory provision, examples are included.

Item 2 amends the implementation clause for rule 52.1(422).

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

Any person who believes that the application of the discretionary provisions of these amendments would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.

The Department has determined that these proposed amendments may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A [1998 Iowa Acts, chapter 1202, section 10]. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A [1998 Iowa Acts, chapter 1202, section 10] if a written request is filed by delivery or by mailing postmarked no later than August 27, 2001, to the Policy Section, Compliance Division, Department of Revenue and Finance, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306. The request may be made by the Administrative Rules Review Committee, the Administrative Rules Coordinator, at least 25 persons signing that request who each qualify as a small business or an organization representing at least 25 such persons.

Any interested person may make written suggestions or comments on these proposed amendments on or before August 14, 2001. Such written comments should be directed to the Policy Section, Compliance Division, Department of Revenue and Finance, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306.

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

Requests for a public hearing must be received by August 3, 2001.

These amendments are intended to implement Iowa Code chapter 422 as amended by 2001 Iowa Acts, House File 707.

The following amendments are proposed.

ITEM 1. Amend rule 701—52.1(422) by adding the following new subrule:

52.1(9) Income tax returns for corporations storing goods in an Iowa warehouse. For tax years beginning on or after January 1, 2001, foreign corporations are not required to file income tax returns if their only activities in Iowa are the storage of goods for a period of 60 consecutive days or less in a warehouse for hire located in Iowa, provided that the foreign corporation transports or causes a carrier to transport such goods to that warehouse and that none of these goods are delivered or shipped to a purchaser in Iowa.

The following nonexclusive examples illustrate how this subrule applies:

EXAMPLE 1: A, a foreign corporation, stores goods in a warehouse for hire in Iowa for a period of 45 consecutive days. The goods are then delivered to a purchaser outside Iowa. If this is A’s only activity in Iowa, A is not required to file an Iowa income tax return.

EXAMPLE 2: B, a foreign corporation, stores goods in a warehouse for hire in Iowa for a period of 75 consecutive days. The goods are then delivered to a purchaser outside Iowa. B is required to file an Iowa income tax return because the goods were stored in Iowa for more than 60 consecutive days.

EXAMPLE 3: C, a foreign corporation, stores goods in a warehouse for hire in Iowa for a period of 30 consecutive days. One percent of these goods are shipped to a purchaser in Iowa, and the other 99 percent are shipped to a purchaser outside Iowa. C is required to file an income tax return because a portion of the goods were shipped to a purchaser in Iowa.

EXAMPLE 4: D, a foreign corporation, has retail stores in Iowa. D also stores goods in a warehouse for hire in Iowa for a period of 30 consecutive days. The goods are then delivered to a purchaser outside Iowa. D is required to file an income tax return because its Iowa activities are not limited to the storage of goods in a warehouse for hire in Iowa.

EXAMPLE 5: E, a foreign corporation, has goods delivered by a common carrier, F, into a warehouse for hire in Iowa. The goods are stored in the warehouse for a period of 40 consecutive days, and are then delivered to a purchaser outside Iowa. If this is E’s only activity in Iowa, E is not required to file an Iowa income tax return. However, F is required to file an Iowa income tax return because it derives income from transportation operations in Iowa.

ITEM 2. Amend rule 701—52.1(422), implementation clause, as follows:

This rule is intended to implement Iowa Code sections 422.21, 422.32, 422.33 as amended by 1999 Iowa Acts, chapter 151, 422.34, 422.34A and 422.36 as amended by 2001 Iowa Acts, House File 707.

In compliance with Iowa Code chapter 74A and section 12C.6, the committee composed of Treasurer of StateMichael L. Fitzgerald, Superintendent of Credit Unions James E. Forney, Superintendent of Banking Holmes Foster, and Auditor of State Richard D. Johnson have established today the following rates of interest for public obligations and special assessments. The usury rate for July is 7.50%.

INTEREST RATES FOR PUBLIC

OBLIGATIONS AND ASSESSMENTS

74A.2 Unpaid Warrants Maximum 6.0%

74A.4 Special Assessments Maximum 9.0%

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

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

New official state interest rates, effective July 10, 2001, setting the minimums that may be paid by Iowa depositories on public funds are listed below.

TIME DEPOSITS

7–31 days Minimum 3.20%

32–89 days Minimum 3.20%

90–179 days Minimum 3.40%

180–364 days Minimum 3.50%

One year to 397 days Minimum 3.60%

More than 397 days Minimum 4.20%

These are minimum rates only. The one year and less are four–tenths of a percent below average rates. Public body treasurers and their depositories may negotiate a higher rate according to money market rates and conditions.

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

In accordance with the provisions of Iowa Code section 535.2, subsection 3, paragraph “a,” the Superintendent of Banking has determined that the maximum lawful rate of interest shall be:

July 1, 2000 — July 31, 2000 8.50%

August 1, 2000 — August 31, 2000 8.00%

September 1, 2000 — September 30, 2000 8.00%

October 1, 2000 — October 31, 2000 7.75%

November 1, 2000 — November 30, 2000 7.75%

December 1, 2000 — December 31, 2000 7.75%

January 1, 2001 — January 31, 2001 7.75%

February 1, 2001 — February 28, 2001 8.00%

March 1, 2001 — March 31, 2001 7.25%

April 1, 2001 — April 30, 2001 7.00%

May 1, 2001 — May 31, 2001 7.00%

June 1, 2001 — June 30, 2001 7.25%

July 1, 2001 — July 31, 2001 7.50%

August 1, 2001 — August 31, 2001 7.25%

Pursuant to Iowa Code sections 17A.4, 476.1, 476.2, 479.29, 479A.14 and 479B.20, the Utilities Board (Board) gives notice that on July 5, 2001, the Board issued an order in Docket No. RMU–01–6, In re: Amendment to 199 IAC 9.1(3)“f,” Land Restoration Rules. The Board is proposing to amend 199 IAC 9.1(3)“f” to correct a drafting error that occurred in the adoption of 199 IAC Chapter 9, effective March 14, 2001.

The Board adopted a new Chapter 9 that established rules regarding restoration of agricultural lands during and after pipeline construction effective March 14, 2001. The Adopted and Filed Chapter 9 was published in the Iowa Administrative Bulletin on February 7, 2001, as ARC 0436B. The error occurred when a revision to the proposed para–

graph 199 IAC 9.1(3)“f” was discussed and set out in the preamble, but the revision was not made in the adopted rule.

The proposed paragraph 199 IAC 9.1(3)“f” provided a definition of “pipeline construction” as “installation, replacement, operation, and maintenance involving substantial disturbance to the land, and removal of a pipeline, but shall not include emergency repairs.” The preamble in the Adopted and Filed rules, ARC 0436B, indicated that the definition of “pipeline construction” should be revised to read in pertinent part “a substantial disturbance to agricultural land associated with the installation, replacement, removal, operation or maintenance of a pipeline, but shall not include work performed during an emergency.” The Board moved the phrase “substantial disturbance to the land” forward in the sentence to clarify that it applied to the installation, replacement, removal, operation or maintenance of a pipeline. The paragraph as adopted did not contain the language “a substantial disturbance to agricultural land associated with.” This was a drafting oversight, and this rule making is necessary to properly reflect the Board’s decision concerning the definition of “pipeline construction.”

Pursuant to Iowa Code sections 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendment. The statement must be filed on or before August 14, 2001, by filing an original and ten copies in a form substantially complying with 199 IAC 2.2(2). All written statements should clearly state the author’s name and address and should make specific reference to this docket. All communications should be directed to the Acting Executive Secretary, Iowa Utilities Board, 350 Maple Street, Des Moines, Iowa 50319–0069.

No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested or the Board on its own motion after reviewing the statements may determine that an oral presentation should be scheduled.

This amendment is intended to implement Iowa Code sections 17A.4, 476.1, 476.2, 479.29, and 479B.20.

The following amendment is proposed.

Amend paragraph 9.1(3)“f” as follows:

f. “Pipeline construction” means a substantial disturbance to agricultural land associated with installation, replacement, removal, operation or maintenance of a pipeline, but shall not include work performed during an emergency. Emergency means a condition where there is clear and immediate danger to life or health, or essential services, or a potentially significant loss of property. When the emergency condition ends, pipeline construction will be in accordance with these rules.

Pursuant to the authority of Iowa Code section 231C.3 and chapter 17A, the Department of Elder Affairs hereby amends Chapter 27, “Assisted Living Programs,” Iowa Administrative Code.

The amendments are intended to reorganize current structural requirements and add safety measures to be taken when items such as locks and kitchen appliances become hazardous to persons with cognitive impairment; add requirements for new construction where preexisting structural limitations do not exist to provide adequate space and a private bathroom to create a living unit that affords tenants privacy and dignity; and add language allowing modifications in the general assisted living structure requirements for assisted living programs serving persons with dementia to meet the therapeutic environmental needs of persons with dementia. The amendments to rule 321—27.9(231C) update cross references and add key life safety measures for assisted living programs serving persons with dementia, such as a procedure for responding to missing person reports and providing additional evacuation time by using slower–burning building materials.

Notice of Intended Action was published in the Iowa Administrative Bulletin on May 30, 2001, as ARC 0706B.

A public hearing was held on June 19, 2001. One written comment was received. One architect objected to requiring bathing facilities in individual units in a dementia–specific assisted living program as most dementia tenants are not able to use the bathing facility appropriately, which creates a safety issue for the tenant and an additional concern for staff. The Department and its Commission chose to leave this requirement in the rules with the understanding that a developer could request a waiver of the rule. The Commission determined that because a shower is not of sufficient additional cost to new construction of an assisted living unit and assisted living is intended to maximize independence, tenants who can appropriately use bathing facilities are entitled to have the privacy and dignity that private bathing facilities afford.

The amendments differ from the Notice of Intended Action as follows: Paragraph 27.8(3)“c” was deleted at the direction of the Commission for the Department of Elder Affairs. The Commission commented on and voted not to allow fire–retardant curtains in place of doors for bathrooms indementia–specific dwelling units without a request to waive the rule in recognition of the differences in the abilities and needs of persons with dementia and the need for dignity and privacy for these persons.

Pursuant to Iowa Code section 17A.5(2)“b”(2) and (3), these amendments became effective on July 5, 2001. The Director finds that these amendments confer a benefit to consumers and that implementation of the amendments prior to issuance of the senior living trust request for proposals for fiscal year 2002 is a benefit to assisted living program developers by permitting them to know what structural rules will apply prior to application for conversion grants and expenditure of funds for blueprints.

These amendments are intended to implement Iowa Code section 231C.3.

These amendments became effective July 5, 2001.

The following amendments are adopted.

ITEM 1. Amend rule 321—27.1(231C) by adopting the following new definition in alphabetical order:

“Dementia–specific assisted living program” means an assisted living program certified under this chapter that holds itself out as providing special care for persons with cognitive impairment or dementia, such as Alzheimer’s disease, in a dedicated setting.

ITEM 2. Amend rule 321—27.8(231C) as follows:

27.8(1) General requirements.

a. The structure of the assisted living program shall be designed and operated to meet the needs of the tenants.

27.8(2) b. Building and grounds shall be well maintained, clean, safe and sanitary.

27.8(3) c. Assisted living programs may shall have private dwelling units with a single–action lockable doors entrance door. An assisted living program serving persons with cognitive impairment or dementia, whether in a general or dementia–specific setting, shall have the means to disable or remove the lock and shall do so if the presence of the lock presents a danger to the health and safety of the tenant. and

d. Assisted living programs may have individual cooking facilities within the private dwelling units. Any assisted living program serving persons with cognitive impairment or dementia, whether in a general or dementia–specific setting, shall have the means to disable or easily remove appliances and shall do so if the presence of cooking appliances presents a danger to the health and safety of the tenant.

27.8(4) 27.8(2) Dwelling units.

a. For assisted living programs certified prior to July 4, 2001.

(1) Each dwelling unit shall have at least one room which will have not less than 120 square feet of floor area. Other habitable rooms shall have an area of not less than 70 square feet.

b. (2) Each dwelling unit shall have not less than 190 square feet of floor area, excluding bathrooms.

c. (3) A dwelling unit used for double occupancy shall have not less than 290 square feet of floor area, excluding bathrooms.

27.8(5) (4) The assisted living program shall have a minimum common area of 15 square feet per tenant.

ITEM 3. Amend rule 321—27.9(231C) as follows:

27.9(1) The assisted living program shall have a written emergency and fire safety procedure. An assisted living program serving persons with cognitive impairment or dementia, whether in a general or dementia–specific setting, shall also include written procedures regarding appropriate staff response if a tenant with cognitive impairment or dementia is missing.

27.9(2) The assisted living program facility program’s structure and procedures shall meet the fire life safety standards of the National Fire Protection Association, 1994 edition, chapter 22 or 23 and referenced addenda, as designated for this category in 661 IAC 5.626(231C) and such other building and public safety codes as may apply to an assisted living program as defined in Iowa Code section 231C.1, including but not limited to the Americans with Disabilities Act, the Fair Housing Act, applicable regulations of the Occupational Safety and Health Administration, and rules pertaining to accessibility contained in the Iowa State Building Code, administration section, division 7, and 661 IAC 18.

[Filed Emergency After Notice 7/5/01, effective 7/5/01]

[Published 7/25/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 7/25/01.

Pursuant to the authority of Iowa Code sections 421.17(19), 422.33, 422.34A, and 422.68, the Department of Revenue and Finance hereby amends Chapter 4, “Multilevel Marketer Agreements,” Iowa Administrative Code.

Notice of Intended Action was published in IAB Volume XXIII, Number 24, page 1838, on May 30, 2001, as ARC 0702B.

Paragraph 4.1(4)“b”(1) is amended by adding language clarifying that the Department has the authority to audit multilevel marketers for tax periods prior to the effective date of the multilevel marketer agreement for which the multilevel marketer held a permit with the Department.

This amendment is identical to that published under Notice of Intended Action.

This amendment will become effective August 29, 2001, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

This amendment is intended to implement Iowa Code sections 421.5 and 421.17(22B).

The following amendment is adopted.

Amend subparagraph 4.1(4)“b”(1) as follows:

(1) The department will not audit, assess or demand payment of sales tax, penalty or interest from the multilevel marketer for any tax periods ending before the effective date of the multilevel marketer agreement, unless the multilevel marketer had a permit registration with the department prior to the effective date of this multilevel marketing agreement. If a multilevel marketer had a permit registration with the department prior to the effective date of this multilevel marketing agreement, the department may audit, assess, refund, or demand payment of tax, penalty, and interest from the multilevel marketer for any of those previous tax periods within the applicable statute of limitation.

[Filed 7/3/01, effective 8/29/01]

[Published 7/25/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 7/25/01.

Pursuant to the authority of Iowa Code section 453C.1(10), the Department of Revenue and Finance hereby adopts Chapter 85, “Tobacco Master Settlement Agreement,” Iowa Administrative Code.

Notice of Intended Action was published in IAB Volume XXIII, Number 23, page 1775, on May 16, 2001, as ARC 0674B.

The rules establish procedures to enable the Department of Revenue and Finance to collect information to ascertain the amount of state excise tax paid on cigarettes sold by tobacco product manufacturers in Iowa each year.

These rules are identical to those published under Notice of Intended Action.

These rules will become effective August 29, 2001, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

These rules are intended to implement Iowa Code chapter 453C.

The following new chapter is adopted.

CHAPTER 85
TOBACCO MASTER SETTLEMENT AGREEMENT

701—85.1(453C) National uniform tobacco settlement. In 1998 the state of Iowa entered into an agreement with cigarette manufacturers called the Master Settlement Agreement (MSA). Subsequent to entering into that agreement, in 1999 the Iowa general assembly enacted Iowa Code chapter 453C. The statute requires the department of revenue and finance to promulgate regulations to ascertain the amount of excise tax paid on cigarettes sold by nonparticipating tobacco product manufacturers in Iowa each year.

701—85.2(453C) Definitions. For the purposes of this chapter, the definitions set forth in Iowa Code section 453C.1 shall apply.

701—85.3(453C) Report required. Reports must be filed by tobacco products distributors, cigarette distributors, and persons who sell tobacco products at retail that were purchased from a person who is not required to file a distributor report. The report must be filed annually on or before the last day of the month following the close of the calendar year in which the sales were made and must be in a form and manner requested by the department. The reports are to be mailed to Iowa Department of Revenue and Finance, Compliance Division, Cigarette Tax Unit, P.O. Box 10456, Des Moines, Iowa 50306–0456.

701—85.4(453C) Report information. The report must include the following information with respect to units sold that were not purchased from a participating tobacco product manufacturer or units sold that were purchased from a participating tobacco product manufacturer but are not units sold as covered by the MSA:

1. The number of units sold.

2. The brand of the units sold.

3. The name and address of the person from whom each unit was purchased.

4. The name and address of the manufacturer of the unit, if known.

5. The name and address of the importer of the unit, if known, and whether that importer is the exclusive importer of the unit, if known.

A retailer may need to file a report when purchasing roll–your–own tobacco or cigarettes over the Internet, through a catalog from a vendor located outside of Iowa, from an Indian tribe or from an enrolled member of an Indian tribe located on a reservation in or outside Iowa, by mail order, or from a vendor located in another state.

A retailer must also, upon request by the department, report information with respect to units sold that were purchased from any participating tobacco product manufacturer.

701—85.5(453C) Record–keeping requirement. Every person who sells at retail tobacco products purchased from a person who is not required to file a report required by this chapter and every tobacco products distributor and cigarette distributor subject to this reporting rule must maintain complete and accurate records and underlying documentation for five years to support the data required to be supplied to the department under rule 701—85.4(453C). Upon request, all requested records and documents must be provided to the department.

701—85.6(453C) Confidentiality. The department of revenue and finance may disclose any and all information filed pursuant to rule 701—85.4(453C) to the attorney general for use in enforcing compliance with Iowa Code chapter 453C.

These rules are intended to implement Iowa Code chapter 453C.

[Filed 7/3/01, effective 8/29/01]

[Published 7/25/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 7/25/01.