Pages 1100 to 1135 include ARC 0407B to ARC 0423B

Administrative rules review committee 1093

Notice, Renewable fuels program, 12.3
ARC 0413B 1100

Notice, Meat and poultry inspection,
rescind 76.5, 76.14 ARC 0417B 1100

Filed, Dairy trade practices, rescind ch 23
ARC 0414B 1128

Filed, Dairy, 68.1, 68.4 to 68.10, 68.11(1),
68.12, 68.13, 68.37 ARC 0418B 1128

Filed, Emergency ground pile storage space;
polyethylene bag storage space, 90.31,
90.32 ARC 0416B 1130

Filed, Civil penalties, ch 95 ARC 0415B 1130

Schedule for rule making 1091

Publication procedures 1092

Administrative rules on CD–ROM 1092

Agency identification numbers 1098

Filed, DNA profiling, 8.1, 8.2, 8.5, 8.6
ARC 0423B 1132

CITATION OF ADMINISTRATIVE RULES 1097

Objection, Manure management plans,
65.16(3) 1136

Notice, Medicaid—nonpayment for
weight loss drugs, 78.1(2) ARC 0410B 1100

Notice, County responsibility—local purchase
of social services for adults with mental illness,
mental retardation, and developmental disabilities,
150.3, 150.7(5); rescind ch 150, division II
ARC 0407B 1101

Notice, Juvenile court services directed programs,
ch 151 ARC 0411B 1103

Notice, Uniform waiver and variance rules,
ch 6 ARC 0419B 1114

Filed Emergency, Medicare supplement
insurance, 37.7, 37.15(3), 37.24 ARC 0422B 1124

Notice, Update of reference dates;
evaluation of design margin, 200.2,
203.6, 203.8(1), 203.21, 204.2, 205.1(1),
205.4, 206.2, 207.2, 209.1, 209.2
ARC 0409B 1117

Environmental Protection Commission[567]
Manure management plans, 65.16(3) 1136

Summarized list 1096

Notice, Corporate activities not creating
taxability, 52.1(2) ARC 0420B 1119

Filed, Individual and corporate income tax;
income tax withholding, 39.1, 39.12, 40.3,
40.47, 40.53(1), 40.55, 42.2(11), 42.14,
46.1(2), 52.7, 52.10(3), 52.14, 52.17
ARC 0421B 1132

Notice—Public funds interest rates 1120

Notice, Unclaimed property, 9.2 to 9.18
ARC 0408B 1120

Filed, Disconnection and reconnection,
19.4(15), 20.4(15) ARC 0412B 1133

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.

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FROM: Kathleen K. Bates, Iowa Administrative Code Editor

SUBJECT: Publication of Rules in Iowa Administrative Bulletin

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The Administrative Rules Review Committee will hold a special meeting on Friday, February 9, 2001, at 9 a.m. in Room 116,
State Capitol, Des Moines, Iowa. The following rules will be reviewed:

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.

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

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.

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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]

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 159.5, the Department of Agriculture and Land Stewardship hereby gives Notice of Intended Action to amend Chapter 12, “Renewable Fuels and Coproducts,” Iowa Administrative Code.

These proposed amendments implement revisions to the rules of the renewable fuels program and restrict the level of funding to a maximum of $10,000 per project, instead of $25,000, which may be obligated for applicants to receive planning and technical assistance. Clarification is made to more accurately reflect the functions of the office. Further, feasibility studies will no longer be funded so that funds may be utilized for business plan assistance as directed in the Iowa Code. No waivers are necessary, as they would create inequities to the applicants.

Any interested person may make written or oral suggestions or comments on these proposed amendments on or before February 13, 2001. Comments should be directed to Pat Paustian, Coordinator, Office of Renewable Fuels, Department of Agriculture and Land Stewardship, Wallace State Office Building, Des Moines, Iowa 50319, or by telephone (515)281–6936, or by E–mail Pat.Paustian@idals.state. ia.us.

These amendments are intended to implement Iowa Code chapter 159A.

The following amendments are proposed.

ITEM 1. Amend rule 21—12.3(159A), introductory paragraph, as follows:

21—12.3(159A) General provisions. Financial support for planning, and technical assistance and feasibility studies for persons interested in developing renewable fuel or coproduct industries in the state of Iowa.

ITEM 2. Amend subrule 12.3(2) as follows:

12.3(2) Assistance REVAMP assistance is available as follows:

a. The office will may provide up to $1,000 for a contracted consulting agency to perform an initial consultation and assessment of provide technical and business planning assistance for a business’s proposed project.

b. Upon the recommendation of a consulting agency and upon concurrence of the department, additional moneys up to $24,000 may be made available for feasibility studies, planning, and technical assistance for each project’s company’s business plan. No more than a total of $10,000 in assistance will be provided to any one business. Consultants under contract with the office shall be reimbursed directly by the office.

Pursuant to the authority of Iowa Code sections 159.5(11) and 189A.13, the Department of Agriculture and Land Stewardship gives Notice of Intended Action to amend Chapter 76, “Meat and Poultry Inspection,” Iowa Administrative Code.

These proposed amendments rescind two outdated rules. One rule is no longer necessary because the United States Department of Agriculture no longer uses the document adopted in the rule. The other rule deals with the voluntary inspection of ratites. This change is necessitated by a change in federal regulations that makes inspection of ratites mandatory rather than voluntary.

Any interested person may make written suggestions or comments on the following proposed amendments prior to 4:30 p.m. on February 13, 2001. Such written material should be directed to Mike Mamminga, Bureau Chief, Department of Agriculture and Land Stewardship, Wallace State Office Building, Des Moines, Iowa 50319. Comments can also be submitted by fax to (515)281–4819 or by E–mail to Mike.Mamminga@idals.state.ia.us.

These amendments are intended to implement Iowa Code chapter 189A.

The following amendments are proposed.

ITEM 1. Rescind and reserve rule 21—76.5(189A).

ITEM 2. Rescind rule 21—76.14(189A).

Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services proposes to amend Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” appearing in the Iowa Administrative Code.

This amendment clarifies Iowa Medicaid policy regarding nonpayment for any drugs used for weight loss.

Current rules address nonpayment for anorectics (including amphetamines) used for obesity control. (See subparagraphs 78.1(2)“a”(2) and (3).) Prior to the recent introduction of Xenical (a lipase inhibitor), anorectics were the only drugs used for obesity control. As a lipase inhibitor, Xenical acts by a different pharmacological mechanism. However, the intent of the current rules is that payment will not be made for drugs for obesity control.

Therefore, this amendment revises the rules to clarify that payment is not made for any weight loss drug regardless of pharmacological mechanism.

This amendment does not provide for a waiver in specified situations because no waiver is appropriate in any situations that can be specified regarding payment for weight loss drugs. Individuals may request a waiver of this policy under the Department’s general rule on exceptions at rule 441— 1.8(217).

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 February 14, 2001.

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

The following amendment is proposed.

Amend subrule 78.1(2), paragraph “a,” subparagraph (2), as follows:

(2) Notwithstanding subparagraph (1), payment is not made for: drugs if the prescribed use is not for a medically accepted indication as defined by Section 1927(k)(6) of the Social Security Act, ; drugs used to cause anorexia, or weight gain, or weight loss; drugs used for cosmetic purposes or hair growth, ; drugs used to promote smoking cessation, ; otherwise covered outpatient drugs which if the manufacturer seeks to require as a condition of sale that associated tests or monitoring services be purchased exclusively from the manufacturer or the manufacturer’s designee, ; drugs described in Section 107(c)(3) of the Drug Amendments of 1962, ; identical, similar, or related drugs (within the meaning of Section 310.6(b)(1) of Title 21 of the Code of Federal Regulations (DESI drugs)), ; and drugs which are prescribed for an individual for fertility purposes. Exceptions may be made to allow payment for fertility drugs if prescribed for a use which that meets the definition of a medically accepted indication as described previously in this subparagraph.

Pursuant to the authority of Iowa Code section 234.6, the Department of Human Services proposes to amend Chapter 150, “Purchase of Service,” appearing in the Iowa Administrative Code.

These amendments remove the rules establishing policy governing purchase of social services contracting by the Department on behalf of counties for local purchase services for adults with mental illness, mental retardation, and developmental disabilities. These amendments also update Iowa Code references and departmental terminology.

The Seventy–sixth General Assembly in 1995 Iowa Acts, chapter 206, transferred responsibility for control of funds for local purchase of services for adults with mental illness, mental retardation, and developmental disabilities from the Department of Human Services to the counties. A county mental health, mental retardation, and developmental disabilities services fund was created in each county. Counties are required to have county management plans approved by the Department of Human Services to receive the state payment authorized by Iowa Code section 331.438.

In order for the counties to fulfill their duties pursuant to the approved county management plans, they must have service agreements with the providers of service. The Iowa State Association of Counties requested the assistance of the Department in negotiating contracts on behalf of the counties at the time responsibility was transferred.

The Department has been assisting counties with these contracts under a 28E agreement since the legislation was implemented. The number of contracts for which the Department has been responsible has been gradually declining, and the Department and the Iowa State Association for Counties have now determined that all counties have the ability to assume responsibility for contracting.

These amendments do not provide for waivers in specific situations because the amendments remove a restriction on counties by allowing them to negotiate with providers without being held to a legislative cap under a purchase of social services contract. Some providers may see a decrease in payment following implementation of these amendments. However, no waiver is possible for the providers, as the establishment of the rates is the responsibility of the counties, not the Department.

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 February 14, 2001.

These amendments are intended to implement Iowa Code section 234.6.

The following amendments are proposed.

ITEM 1. Amend rule 441—150.3(234) as follows:

Amend subrule 150.3(3), paragraph “j,” subparagraph (2), as follows:

(2) Quarterly progress reports. Quarterly progress reports shall be sent to the department service worker responsible for the client. The first report shall be submitted to the department three months after service is initiated. Reports shall be submitted quarterly thereafter, unless provided for otherwise in rules for a specific service.

The progress report shall include a description of the specific service components provided, their frequency, and who provided them; the client’s progress with respect to the goals and service objectives; and any recommended changes in the service plan or individual program plan. For all placement cases the report shall include interpretation of the client’s reaction to placement, a summary of medical or dental services that were provided, a summary of educational or vocational progress and participation, and a summary of the involvement of the family with the client and the services.

Reports for the adult support program, family–centered services, purchased foster family home services, and independent living service shall also include supporting documentation for service provision. The documentation shall list dates of client and collateral contacts, type of contact, persons contacted, and a brief explanation of the focus of each contact. Each unit of service for which payment is sought should be the subject of a written progress note.

Amend subrule 150.3(5), paragraphs “c,” “d,” “e,” “f,” “m,” and “p,” as follows:

c. Submission of reports. The financial and statistical report shall be submitted to the department no later than three months after the close of the provider’s established fiscal year. At least one week must be allowed prior to this deadline for the project manager to review the report and transmit it to the purchase of service section bureau of purchased services in central office. Failure to submit the report in time without written approval from the manager chief of the purchase of service section bureau of purchased services may reduce payment to 75 percent of the current rate. Failure to submit the report within six months of the end of the fiscal year shall be cause for terminating the contract.

d. Rate modification. Modification of rates shall be made when required by changes in licensing requirements, changes in the law, or amendments to the contract. Requests for modification of a rate may be made when changes are because of program expansion or modification and have the approval of the district region where services are provided. Even if there is a modification of the rate, the modified rate is still subject to any maximum established in any law or rule.

e. Payment of new rate. New rates shall be effective for services provided beginning the first day of the second calendar month after receipt by the purchase of service section bureau of purchased services of a report sufficient to establish rates or, by mutual agreement, new rates shall be effective the first day of the month following completion of the fiscal review. Failure to submit a report sufficient to establish a rate will result in the effective date’s being delayed. At least one week must be allowed prior to the deadline in paragraph “c” above for the project manager to review the report and transmit it to central office.

f. Exceptions to costs. Exceptions to costs identified by the purchase of service section bureau of purchased services or its fiscal consultant will be communicated to the provider in writing.

m. Limited service—without a ceiling. The following expenses are limited for service without a ceiling established by administrative rule or law for that service. This includes services with maximum rates, with the exception of foster group care and shelter care.

(1) to (10) No change.

p. Rate limits. Interruptions in service programs will not affect the rate. If an agency assumes the delivery of service from another agency, the rate shall remain the same as for the former agency.

(1) Unless otherwise provided for in 441—Chapter 156, rates for shelter care shall not exceed $83.69 per day based on a 365–day year.

(2) For the fiscal year beginning July 1, 2000, the maximum reimbursement rates for services provided under a purchase of social service agency contract (adoption; local purchase services including adult day care, adult support, adult residential, community supervised apartment living arrangement, sheltered work, work activity, and transportation; shelter care; family planning; and independent living) shall be the same as the rates in effect on June 30, 2000, except under any of the following circumstances:

1. If a new service was added after June 30, 2000, the initial reimbursement rate for the service shall be based upon actual and allowable costs. A new service does not include a new building or location or other changes in method of service delivery for a service currently provided under the contract.

For adoption, the only time a provider shall be considered to be offering a new service is if the provider adds the adoptive home study, the adoptive home study update, placement services, or postplacement services for the first time. Preparation of the child, preparation of the family and preplacement visits are components of the services listed above.

For shelter care, if the provider is currently offering shelter care under social services contract, the only time the provider shall be considered to be offering a new service is if the provider adds a service other than shelter care.

For family planning, the only time the provider shall be considered to be offering a new service is when a new unit of service is added by administrative rule.

For independent living, the only time a provider shall be considered to be offering a new service is when the agency adds a cluster site or a scattered site for the first time. If, for example, the agency has an independent living cluster site, the addition of a new site does not constitute a new service.

If the department defines, in administrative rule, a new service as a social service that may be purchased, this shall constitute a new service for purposes of establishment of a rate. Once the rate for the new service is established for a provider, the rate will be subject to any limitations established by administrative rule or law.

2. to 5. No change.

ITEM 2. Amend rule 441—150.5(234), implementation clause, as follows:

This rule is intended to implement Iowa Code sections 234.6 and 601J.5 324A.5, subsection 3, paragraph “c.”

ITEM 3. Amend subrule 150.7(5) as follows:

150.7(5) Reversion of unspent funds. No funds donated and transmitted to the department will be returned to the donor unless the donor is a public agency. Unspent funds will be returned to the public agency donor after the contract period upon submittal of a written request to the manager chief of the purchase of service section bureau of purchased services.

ITEM 4. Amend the implementation clause following 441—Chapter 150, Division I, as follows:

These rules are intended to implement Iowa Code section 234.6 and 2000 Iowa Acts, House File 2555, section 1, subsection 1, paragraph “d,” and Senate File 2435, section 31, subsection 7.

ITEM 5. Rescind and reserve 441—Chapter 150, Division II.

Pursuant to the authority of Iowa Code section 234.6, the Department of Human Services proposes to rescind Chapter 151, “Court–Ordered Services,” and to adopt new Chapter 151, “Juvenile Court Services Directed Programs,” Iowa Administrative Code.

This amendment rewrites the rules governing services for children eligible for reimbursement from funds appropriated specifically for juvenile court services and for whom juvenile court services has primary responsibility. The services are administered through five programs: court–ordered care and treatment and four graduated sanction services, i.e., life skills, school–based supervision, supervised community treatment, and tracking, monitoring, and outreach (previously known as adolescent monitoring and outreach services). The rules establish the allocation formula for the five programs and the procedures for administration, application, eligibility criteria, appeals, service delivery, and billing and payment.

These rules were rewritten to make the policies for the five programs more consistent with current administrative expectations, conform policy to current practice in the eight judicial districts, and consolidate duplicative policy. The following revisions were made to current policy:

• An administrative set–aside of 3 percent of the appropriation for the graduated sanction services is allowed to cover administrative costs.

• Policy is revised to allow services to youth between the ages of 18 and 19½ who are under the supervision of the juvenile court or who voluntarily agree to continuing supervision.

• The role of the juvenile district planning committee is explained and clarified.

• The term “juvenile court” is changed to “juvenile court services” to differentiate the court from the court services.

• Reimbursement for transportation, meals, and lodging for a public officer or employee, other than a state officer or employee, is made consistent with Iowa Code sections 70A.9 and 331.655(1)“j.” The expenses will be paid in an amount as determined by the public officer or employee’s local governing board when the court order specifies that the public officer or employee is to provide the transportation.

• Procedures for contracting are added.

• The responsibilities of juvenile court services, providers, and the Department for monitoring claims and contract compliance are specified. State audits of the juvenile justice programs show there is a need to monitor compliance for accountability.

• Criteria are added for the monitoring of service delivery in the school–based supervision and tracking and monitoring services.

These rules were developed with extensive involvement from juvenile court services and providers.

These rules do provide for waivers to the lists of items eligible for reimbursement by the judicial district planning committee. Decisions on eligibility are to be appealed to Chief Juvenile Court Officers.

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 February 14, 2001.

This amendment is intended to implement Iowa Code section 232.141.

The following amendment is proposed.

Rescind 441—Chapter 151 and adopt the following new 441—Chapter 151 in lieu thereof:

CHAPTER 151
JUVENILE COURT SERVICES DIRECTED PROGRAMS

PREAMBLE

These rules prescribe services for children eligible for reimbursement from funds appropriated specifically for juvenile court services directed programs. Juvenile court services has primary responsibility for the graduated sanction and court–ordered care and treatment services for children. The graduated sanction services are also known as “early intervention and follow–up services” or “community–based delinquency programs.”

The juvenile court services directed programs are administered through five programs: court–ordered care and treatment; life skills; school–based supervision; supervised community treatment; and tracking, monitoring, and outreach. The rules establish the allocation formula for the five programs and the procedures for administration, application, eligibility, appeals, service delivery, and billing and payment.

PREAMBLE

These rules prescribe the relationship between the state court administrator (judicial branch) and department (executive branch) in the administration of the juvenile court services funds. These rules also prescribe the relationship between juvenile court services (judicial districts) and the department in the planning and implementation of service provision for some children who are under the jurisdiction of juvenile court services. In addition, these rules prescribe the definitions as well as the requirements for the administration and delivery of the juvenile court services programs.

“Case file” means a file that includes referral information, information generated during assessment, documentation of court proceedings, other eligibility determinations, case plans and case reports, including quarterly progress reports. Case files of providers also include records of provider–child contact documenting provision of services.

“Case record” means a minimal record that identifies the child and the service provided and documents the child’s eligibility. A case record is maintained when a case file is not required.

“Child” means a person under 18 years of age and also includes the following: A “child” means a person up to 19½ years of age when the child (1) is adjudicated delinquent and is under the jurisdiction of juvenile court services or (2) voluntarily accepts graduated sanction services when being released from the state training school, a highly structured juvenile program, or group care and a chief juvenile court officer or a chief juvenile court officer and a department regional administrator extend eligibility for the services.

“Child welfare and juvenile justice plan” means the annual plan for using decategorized funds within each department region.

“Court–ordered care and treatment” means the defined or specific care and treatment ordered by the court for which no other payment source is available to cover the cost for the care and treatment.

“Department” means the department of human services.

“Graduated sanctions” means the services also known as “early intervention and follow–up services” or “community–based delinquency programs,” which are provided incommunity–based settings to children adjudicated delinquent or children who are evaluated by a juvenile court officer, or designee, to be at risk of such an adjudication.

The graduated sanction services are directed to help children transition into productive adulthood and thereby prevent or reduce charges, initial out–of–home placement, and recidivism. The graduated sanction services are life skills; school–based supervision; supervised community treatment; and tracking, monitoring, and outreach.

“Judicial district planning committee” means a district planning group appointed by the chief judge of the judicial district that provides oversight of the court–ordered care and treatment funds.

“Juvenile court officer” means a person appointed as a juvenile court officer or a chief juvenile court officer under Iowa Code chapter 602.

441—151.2(232) Agreement. The state court administrator, representing the chief juvenile court officers, and the department shall enter into a 28E agreement or other agreement for the purpose of funding, administering, and providing graduated sanction and court–ordered care and treatment services. The state court administrator shall have primary responsibility for ensuring that juvenile court services comply with the requirements in the agreement and in this chapter.

151.2(1) Court–ordered care and treatment. Court–ordered care and treatment services are funded by an appropriation to the department for allocation to juvenile court services. The state court administrator shall allocate the appropriation, minus the administrative set–aside specified in the appropriation bill, to the eight judicial districts for court–ordered care and treatment services.

151.2(2) Graduated sanction services. The graduated sanction services are funded by an appropriation to the department for allocation to juvenile court services. These funds are dispensed as follows:

a. An amount up to 3 percent of the total allocation of the graduated sanction services shall be set aside for juvenile court services administrative costs for the graduated sanction programs. The administrative costs shall include the costs of an accountant or audit position established in each judicial district. The state court administrator shall administer the set–aside for the eight judicial districts.

b. The appropriation for each of the four graduated sanction programs, minus the administrative set–aside, shall beallocated among the eight judicial districts according to a formula based on each district’s respective proportion of thestatewide population of children aged 5 to 17 as reported in current census data.

c. Each chief juvenile court officer shall manage the district’s allocations to ensure that services are available throughout the fiscal year.

151.2(3) Transfer of funds to a decategorization subcommittee. Funds allocated to a district for court–ordered care and treatment or the graduated sanction services, less the administrative set–asides, may be transferred to a decategorization governance board for administration.

a. To transfer funds to a governance board, the chief juvenile court officer must submit a written notice of intent to transfer the funds to the board and the chair of the governance board must provide the chief with a written statement of acceptance of the funds. The chief juvenile court officer must submit the documents to the department.

b. The department program manager shall attach a copy of the written request to transfer the funds and the written statement of acceptance to the contract through which decat–egorized funds are expended before payment through the contract is authorized.

c. The governance board may, but is not required to, authorize the chief juvenile court officer to act on behalf of the governance board in the administration of the funds. The authorization from the governance board granting authority to the chief juvenile court officer to act on behalf of the governance board in the administration of the funds must be in writing and must be attached to any decategorization contract before the decategorization contract is approved.

d. The chief juvenile court officer shall participate in developing an annual child welfare and juvenile justice plan for using decategorized funds within each department region. The respective chief juvenile court officers and department regional administrator shall sign the child welfare and juvenile justice plan.

151.2(4) Availability of services on a statewide basis. The chief juvenile court officers and the department shall monitor the provision of services and availability of funds.

a. The chief juvenile court officers, in consultation with the department, shall reallocate funds as needed to ensure the availability of services on a statewide basis.

b. If district funding is exhausted, services shall be discontinued.

151.3(1) Authority to purchase services. A chief juvenile court officer shall have the authority to purchase court–ordered care and treatment and graduated sanction services.

a. Each chief juvenile court officer shall establish minimum qualifications for providers of services as well as criteria and procedures for selection and contracting with providers to best meet the service needs of the children in the judicial district.

b. Children and families may apply for services or be directed to apply for services through the juvenile court services office. In addition, children and families, or someone acting on behalf of children and families, may make an application for school–based supervision services by contacting the school–based supervision staff in schools where programs are established.

c. Services shall be reduced or terminated when:

(1) The court orders discontinuation of services.

(2) The juvenile court officer determines that there is no longer a need for service or that maximum benefit of service provision has been achieved.

(3) The funds allocated or appropriated for these services are exhausted.

d. Appeals.

(1) If services are court–ordered, children and their parents or guardians who have been adversely affected by decisions made by juvenile court services may appeal through appeal procedures established pursuant to Iowa Code section 232.133.

(2) When services are not court–ordered and the application for services is denied, services are reduced or terminated, or the children and their parents or guardians have been otherwise adversely affected, the sole remedy for children and their parents or guardians shall be appeal to the chief juvenile court officer of the respective judicial district or the officer’s designee. The chief’s or designee’s decision shall be final.

151.3(2) Record keeping and retention of records. Financial and service records shall be maintained for a period of three years following termination of services when state and nonfederal funds are used to pay for the services. Financial and service records shall be maintained for a period of five years following termination of services when federal funds are used to pay for all or part of the services, including when state funds are used as match to obtain the federal dollars.

a. Each juvenile court officer and provider or school shall maintain a case record or case file that documents the provision of the contracted service for each individual child for whom a claim is made. A case file shall be maintained for each child who receives an ongoing service.

b. Each provider or school shall maintain the corresponding service files and records to document the provision of the contracted service as well as all the financial records used to submit or substantiate claims for reimbursement, including court orders and lists of children.

151.3(3) District audits and reviews. Each chief juvenile court officer shall establish procedures to review and audit the provision of the graduated sanction services to ensure that the requirements of this chapter and the contracts are met. The reviews and audits shall be conducted by the accountant or audit positions established in subrule 151.2(2). Each chief juvenile court officer shall report the results to the department on at least an annual basis.

a. The reviews and audits shall include client contact; review of service billings and delivery of service; and site visits in which provider standards, staff qualifications, case files and case records, progress reports, and billing and payment records are reviewed and audited. The reviews and audits shall take place at the sites where the program is operated and where necessary program and fiscal records are maintained.

b. An on–site review and audit are required for each provider new to the district during the first year of the provider’s contract with the district when the total annual value of the provider’s contracts with the judicial district is $50,000 or more.

c. Annual on–site reviews and audits are required for any provider having one or more contracts with one or more judicial districts when the total annual value of the contracts is $100,000 or more.

d. Additional on–site reviews and audits are optional but may be considered appropriate by the chief juvenile court officer for contracts other than those described in paragraphs 151.3(3)“b” and “c,” based on factors such as:

(1) Length of time provider has been in business.

(2) Amount of time provider has offered the services being purchased.

(3) Type of service or program being purchased.

(4) Amount of money involved in the contract.

(5) Whether other governmental entities contract with this provider.

(6) Findings from previous audits by the district, the department, or other entities such as the state auditor’s office.

e. The department shall notify each chief juvenile court officer of the providers with whom the judicial district contracts for whom a review and audit must be conducted. The department shall identify in the notice all other judicial districts that have a contract with the provider. The chief juvenile court officers may determine whether the judicial districts conduct a joint review and audit.

f. The review and audit of the providers’ and schools’ service and financial records and the client case records and case files shall ensure that the records and files contain the required documentation of the provision of the contracted service for each individual child for whom a claim is made or substantiated.

Juvenile court services may seek repayment of claims paid for services for which documentation is not established and for noncovered services. Juvenile court services shall notify the provider or school in writing that a repayment is due. The written notice shall identify the claims, the amounts of the claims that are not documented or substantiated, and the amounts requested.

If the provider or school does not make payment within 45 days, the chief juvenile court officer shall submit a copy of the notice to the provider or school to the department for review and further action if necessary.

g. Each chief juvenile court officer shall submit to the department an annual report of the district’s review and audit activities for each state fiscal year. The annual report shall be submitted by September 30 following the end of the state fiscal year. This date may be extended to the end of the calendar year following the end of the state fiscal year upon the written request of the chief juvenile court officer to the division of adult, children, and family services. The annual report shall:

(1) Include a report of the results of the review and audit for each new provider receiving $50,000 to $100,000 per year in state funds from all sources.

(2) Include a report of the results of the review and audit for each provider receiving $100,000 or more per year in state funds from all sources.

(3) Include a summary of the findings of the reviews and audits conducted of the other providers receiving state funds in the state fiscal year.

151.3(4) State audits and reviews.

a. Each claimant or provider of court–ordered care and treatment shall maintain and make available upon request to juvenile court services, the department, the department of inspections and appeals or the state auditor the service and financial records, including court orders, used to support or substantiate claims for reimbursement. The records shall be subject to audit by juvenile court services, the department, the department of inspections and appeals or the state auditor.

b. Each provider or school shall maintain and make available upon request to juvenile court services, the department, the department of inspections and appeals, or the state auditor the service and financial records, including court orders and lists of children, used to support or substantiate claims for reimbursement. The records shall be subject to audit by juvenile court services, the department, the department of inspections and appeals or the state auditor.

151.3(5) Repayment.

a. When the provider or school, upon audit, fails to verify or document the provision of covered services in the amount for which a claim was paid or confirms claims paid for noncovered services and a request for repayment is made by juvenile court services, the department, the department of inspections and appeals or the state auditor, the provider or school shall repay the department the difference between the amount received and the amount established through the audit, not to exceed the amount paid by the state.

b. When the provider or school fails to maintain adequate records for auditing purposes, fails to make records available for auditing, or when the records, upon audit, fail to support the claims submitted, the provider or school may be required to repay the department for the amount of any claims not supported by audit.

151.4(1) Court–ordered care and treatment. The chief juvenile court officer shall have the authority to purchase court–ordered care and treatment from agencies, organizations, incorporated individuals or unincorporated individuals based on a copy of a court order. Court–ordered care and treatment may be purchased from unincorporated individuals when the total amount paid to the individual does not exceed $1,000 plus allowable expenses such as meals, lodging, and mileage per fiscal year.

151.4(2) Graduated sanction services. The chief juvenile court officer shall have the authority to enter into provider agreements with agencies, organizations, or incorporated individuals for the provision of the graduated sanction services. Payment for services under this subrule shall be made only to providers of services that have agreements with juvenile court services and the department for the provision of the services.

441—151.5(232) Contract development. Contracts shall be developed in compliance with the department of revenue and finance accounting policy and procedures manual, with authority vested in the department of revenue and finance by Iowa Code chapter 421.

151.5(1) Contract management. The chief juvenile court officer and department shall develop a contract with each provider or school when the chief juvenile court officer ordesignee has selected providers or schools. The chief juvenile court officer, the provider or school, and the department shall sign the contract.

a. Contract amendments shall be prepared whenever there is a change in the amount of contracted dollars, contract duration, program description, or any other significant modification to original terms. Any party to the contract may request an amendment to the contract. Providers or schools may request contract amendments through the chief juvenile court officer. The chief juvenile court officer, the provider or school, and the department shall sign a contract amendment.

b. A precontract questionnaire shall be prepared by the department for each new contract or contract amendment.

c. The chief juvenile court officer is responsible for distributing a copy of the signed contract or amendment to the provider or school.

d. The chief juvenile court officer for each judicial district shall develop the process for contracting for life skills; school–based supervision; supervised community treatment; or tracking, monitoring, and outreach. The process shall include the provider selection process, including bid solicitations, vendor evaluation criteria, and a procedure for resolving appeals.

151.5(2) Provider selection process, including bid solicitations. The chief juvenile court officer shall announce the need for contracts to potential providers within the district. The announcement shall include a format and time line for submission of provider proposals. Solicitation through a request for proposals (RFP) process or another authorized competitive process shall be used when the state expenditure for all years of the contract combined exceeds the authorized threshold, unless emergency or sole source conditions exist. The written statement describing the emergency or sole source conditions shall be attached to the contract.

a. Sole source selection is justified when an open, competitive process is not practicable as one of the following conditions exists:

(1) A single source is determined by the chief juvenile court officer to be the only one qualified or eligible, or is obviously the most qualified or eligible to perform the service.

(2) The work is of such a specialized nature or related to a specific geographic location that only a single source, by virtue of experience, expertise, or proximity to the project, could most satisfactorily provide the service or product.

b. Emergency selection is justified when it is determined that normal selection procedures would unduly delay the initiation of a critically needed service or would impose unjustifiable costs on juvenile court services.

c. The chief juvenile court officer may submit a claim for payment of juvenile court services’ costs of printing, copying, distributing and advertising for the RFP process. The claim shall be submitted on Form 07–350, PurchaseOrder/Payment Voucher, and the cost shall be charged to the program funds for which the RFP is requested.

151.5(3) Content of the RFP. The RFP shall provide the bidder with:

a. A clear, unambiguous statement of the terms and conditions of the contract.

b. The rules for submitting bid responses.

c. A detailed statement of the requirements and goals of the project.

d. Instructions on the preparation of the proposal.

e. The method and criteria to be used for proposal evaluation.

151.5(4) Vendor evaluation criteria. The chief juvenile court officer shall develop selection criteria for choosing providers to ensure that resources are targeted effectively within the district. Multiple providers may be selected to address the needs within the districts. The chief juvenile court officer or designee within each judicial district may consult with representatives from the department to select providers to meet the needs of eligible children within the district.

151.5(5) Procedures for resolving appeal. The chief juvenile court officer shall have the authority to resolve provider appeals in accordance with procedures approved by the department.

441—151.6(232) Contract content. Contract content shall include, but not be limited to, the following:

151.6(1) Identification of all contracting parties. The parties to the contract are juvenile court services, the department, and the provider or school.

151.6(2) A fixed or determinable agreement period.

a. A 28E agreement may be written for a period not to exceed five years.

b. A contract, other than a 28E agreement, may be written for a period not to exceed three years. However, a contract written for three years may include a clause that it may be approved for two one–year extensions.

151.6(3) A minimum service requirement. The minimum amount of service means the unit of service required to be provided to substantiate a claim that service was provided.

151.6(4) A maximum dollar amount. In determining the amount of reimbursement, the department shall reimburse as follows:

a. The department shall reimburse the provider for mileage, meals, and lodging expenses involved in the transportation of the child, but not to exceed a maximum of the rates set by the state executive council or the provider’s customary rate, whichever is lower, unless the transportation is provided by a public officer or employee. A public officer or employee, other than a state officer or employee, is entitled to be paid for expenses as specified in the Iowa Code in an amount as determined by the:

(1) Public officer’s or employee’s local governing board when the court order specifies that the public officer or employee is to provide the transportation. The allowable expenses for which sheriffs can be reimbursed are found at Iowa Code sections 70A.9 and 331.655.

(2) Judicial district planning committee when the court order does not specify that the public officer or employee is to provide the transportation.

b. For Medicaid–covered services, the department shall reimburse at the same rate and duration as Medicaid does under the fee schedule section of 441—subrule 79.1(2).

c. The department shall reimburse providers with purchase of service agreements at the rate of the purchase of service agreement. The department shall reimburse providers who do not have a purchase of service agreement at a rate comparable to the rate reimbursed to providers who have an agreement with the department.

d. The department will supplement private insurance allowances up to the amounts allowed in subrule 151.6(4). Funds for court–ordered care and treatment or graduated sanction services are not to be used in lieu of private insurance.

e. The department shall not reimburse a provider at a rate that is greater than that allowed by administrative rules. Reimbursement paid to a provider shall be considered paid in full unless the county voluntarily agrees to pay the difference between the reimbursement rate and the actual costs of the service. When there are specific program regulations prohibiting supplementation, such as the prohibition of supplementation of Medicaid reimbursement, those regulations shall be applied to providers requesting supplemental payments from a county.

151.6(5) Schedule of payments for services or products provided. Contracts with providers or schools shall be based on an agreement to reimburse the provider or school for services delivered to eligible children. The contract shall describe the process the provider or school shall follow to complete and submit claims for payment.

a. Contracts with providers of life skills, supervised community treatment, or tracking, monitoring, and outreach services shall establish and define the billable unit. The contract shall specify the payment rate for the provider’s services but shall not ensure a provider reimbursement for a specific rate of utilization. The contract shall also specify any approved charges for curriculum materials or other expenses involved in the delivery of services that are not included in the billable unit.

b. Contracts with providers of life skills, supervised community treatment, or tracking, monitoring, and outreach shall establish a group rate when the service is provided to more than one individual at a time.

c. Contracts for school–based supervision shall specify payment rates for intervals of service delivered to eligible children and shall also specify any approved charges for expenses involved in the delivery of services that are not included in the payment rate.

151.6(6) Administrative and program requirements. Contracts shall include all administrative and program requirements of this chapter.

151.6(7) Indemnification clause. Contracts shall contain an indemnification clause.

151.6(8) Termination clause. The contract shall describe the conditions for termination of the contract.

151.6(9) Nonavailability of funds clause. Contracts shall contain a clause that contracts may be amended or terminated due to the unavailability of funds.

151.6(10) Compliance with other laws. The contract shall contain clauses denoting compliance with all applicable laws and regulations of the state and federal governments including, but not limited to, Equal Employment Opportunity (EEO) Affirmative Action (AA), Occupational Safety and Health Act (OSHA), records retention, confidentiality, audit requirements, and allowable costs.

151.6(11) Transfer and assignment clause. The contract shall contain a clause to ensure that the contract cannot be assigned or transferred by the contractor to any other parties, unless written prior approval is given by all parties to the contract.

441—151.7(232) Billing and payment requirements. Billing and payment shall comply with procedures of the accounting policy and procedures manual of the department of revenue and finance. The department shall reimburse providers for provision of service costs when claims are submitted according to the following procedures.

151.7(1) Forms and instructions used. The instructions and forms used shall be available at each county’s juvenile court services office.

a. Claims for court–ordered care and treatment shall be submitted on Form 07–350, Purchase Order/Payment Voucher, and Form 470–1691, Claim for Court–Ordered Care and Treatment. Each initial claim for court–ordered care and treatment shall include a copy of the applicable court order. Each subsequent claim shall include the case number of the applicable court order or the first page of the applicable court order.

b. Claims for life skills, supervised community treatment, and tracking, monitoring, and outreach shall be submitted on Form 07–350, Purchase Order/Payment Voucher. Either Form 470–1691, Claim for Court–Ordered Care and Treatment, or a copy of the provider’s list of the children for whom the claim is made in lieu of Form 470–1691 shall also be submitted. Form 470–1691 or the provider’s list shall include the name of the child and the days and units of service provided each month.

c. Claims for school–based supervision shall be submitted on Form 07–350, Purchase Order/Payment Voucher.

151.7(2) Submittal of claims. Providers shall submit claims to the chief juvenile court officer in the judicial district in which the service was provided. A claim for the graduated sanction services is made for the period of time, such as a month, specified in the contract.

a. A claim shall be submitted within 90 calendar days of the date of its accrual to ensure payment during the fiscal year. However, a claim shall be submitted within 45 calendar days of the date of its accrual at fiscal year end, June 30, to ensure payment from funds appropriated for the fiscal year. The date of a claim’s accrual is the date the claim becomes a state liability such as the date of a court order or a determination by Medicaid or private insurance when Medicaid or private insurance denies partial or full payment for care and treatment for which an application has been made.

b. Claims shall be filed on a voucher only with claims for the same fiscal year.

c. A claim submitted more than 90 calendar days after the date of its accrual shall be processed through the state appeal board’s administrative process by the division of fiscal management, bureau of payments and receipts. In addition, a claim submitted more than 45 calendar days after the date of its accrual at fiscal year end, June 30, shall be processed through the state appeal board’s administrative process by the division of fiscal management, bureau of payments and receipts.

151.7(3) Procedures for completing claim.

a. Any claim for payment shall identify the type of service provided and include the name, mailing address and telephone number of the agency or person providing the services.

b. Each claim shall include the payment voucher, with an original signature of the provider unless an original invoice is submitted, and two copies of each of the signed and completed forms.

(1) When an original invoice is submitted along with the payment voucher, the payment voucher does not need to be signed by the provider.

(2) Payment vouchers for individuals must contain the social security number of the individual.

(3) Payment vouchers for agencies or organizations must contain the firm’s tax identification number (this may or may not be the same as the firm’s federal identification number).

c. The claim for the first contract payment requires thata copy of the signed contract, including a copy of the Pre–Contract Questionnaire, be attached to the claim. The contract number shall be entered on the face of the payment voucher.

d. Subsequent claims for contract payment shall include the following information on the face of the payment voucher:

(1) The contract number.

(2) The warrant number, paid date (date the claim was processed through the IFAS system) and reference document number of the initial voucher of the series to which the contract is attached. The reference document number and date are stamped on the first warrant the provider receives through the contract. The reference document number is listed under “Departmental Reference Numbers” on the warrant and starts with the number “413–”.

(3) The payment number of the total contracted sequence, such as “payment 7 of 12 payments,” if known.

151.7(4) Accuracy of claims. The chief juvenile court officer or designee shall verify the accuracy of the provider’s billings, approve them, and submit them to Department of Human Services, Division of Fiscal Management, Bureau of Payments and Receipts, 1305 East Walnut, Des Moines, Iowa 50319–0114.

151.7(5) Payments to providers. The department shall process the billings and issue payments to providers.

These rules are intended to implement Iowa Code section 232.141.

441—151.8 to 151.19 Reserved.

PREAMBLE

These rules prescribe the responsibilities of the state court administrator, the department, the chief juvenile court officer and the judicial district planning committee for the administration of court–ordered services. In addition, these rules prescribe a list of expenses that are eligible for reimbursement and a list of expenses that are ineligible for reimbursement. The lists are intended to be exhaustive.

441—151.20(232) Judicial district planning committee. A judicial district planning committee is appointed in eachjudicial district by the chief judge of the judicial district pursuant to annual renewal of 1991 Iowa Acts, chapter 267, section 119, subsection 4. The judicial district planning committee, which includes the chief juvenile court officer, shall perform all of the following activities for the court–ordered care and treatment funds:

151.20(1) Service priorities. The committee shall establish service priorities for spending the court–ordered care and treatment funds allocated to the district.

151.20(2) Service quality. The committee shall develop procedures to evaluate and improve the quality and effectiveness of the services being provided.

151.20(3) Recommendations for changes. The committee shall make recommendations concerning changes in the child welfare system that are needed to ensure that children and families receive the services necessary to meet their unique needs. These recommendations may be incorporated into the annual child welfare and juvenile justice plan.

151.20(4) Reasonable costs. The committee shall make efforts to ensure quality services are provided at a reasonable cost and negotiate reimbursement rates with providers for:

a. The expenses of transporting a child to or from a place designated by the court for the purpose of care or treatment.

b. Expenses for mental or physical examinations of a child if ordered by the court.

c. The expenses of care or treatment ordered by the court.

151.20(5) Payment source. The committee shall consider billings submitted for payment under these rules to ensure that no other payment source is available.

441—151.21(232) Department of human services. The department of human services shall develop policies and procedures to ensure that the funds allocated are spent only after all other reasonable actions have been taken to utilize other funding sources and community–based services. The policies and procedures shall be designed to achieve the following objectives relating to services provided under Iowa Code chapter 232:

151.21(1) Medical assistance funds. The department shall maximize the use of funds that may be available from the medical assistance program including use of the early and periodic screening, diagnosis, and treatment (EPSDT) program.

151.21(2) Third–party payments. The department shall recover payments from any third–party insurance carrier that is liable for coverage of the services, including health insurance coverage.

151.21(3) Out–of–state service providers. The department shall pursue development of agreements with regularly used out–of–state service providers that are intended to reduce per diem costs paid to those providers.

441—151.22(232) Expenses. The following lists of expenses that are either eligible or ineligible for reimbursement are intended to be exhaustive. The judicial district planning committee shall review any expense for a service not listed below to determine if the expense should be paid from the judicial district’s court–ordered care and treatment fund. If payment of the expense would not be in conflict with currentlaw or administrative rules and meets the criteria of the judicial district planning committee, this fund shall be used to reimburse the provider. In the event that court–ordered care and treatment funds are exhausted in any judicial district, the chief judge of the district shall be notified by the chief juvenile court officer.

151.22(1) Expenses to be reimbursed. The expenses for which reimbursement shall be made include:

a. Expenses, other than salary, incurred by a person ordered by the court, other than a juvenile court officer, in transporting a child to or from a place designated by the court, including mileage, lodging and meals.

b. The expense of care or treatment ordered by the court whenever the minor is placed by the court with someone other than the parents; or a minor is given a physical or mental examination or treatment under order of the court; or, upon certification by the department, a minor is given physical or mental examinations or treatment with the consent of the parent, guardian or legal custodian relating to a child abuse investigation and no provision is otherwise made by the law for payment for the care, examination, or treatment of the minor. Care and treatment expenses for which no other provision for payment is made by law that shall be reimbursable include court–ordered:

(1) Individual services for the child separate from a family’s treatment plan.

(2) Diagnosis and evaluation on an outpatient basis unless the diagnosis and evaluation is provided by a person or agency with a contract with the department for that service for which the child is eligible.

(3) An evaluation of a child in a residential facility.

(4) Inpatient (hospital) evaluation of a child previous to disposition.

(5) Medical treatment for a child. This includes medical treatment while in detention in a facility used for detention when the medical treatment is court–ordered.

(6) Drug treatment, testing and care for a child.

(7) Intensive in–home supervision and monitoring and alternatives to shelter care unless a person or agency that has a contract with the department provides the service for which the child is eligible.

(8) Evaluation of parents pursuant to a CINA adjudication unless the diagnosis and evaluation is provided by a person or agency with a contract with the department for that service for which the child is eligible.

(9) One–to–one supervision of a child not in a detention facility unless the service is provided by a person or agency with a contract with the department for that service for which the child is eligible.

(10) Physical or mental examinations ordered pursuant to Iowa Code section 232.49 or 232.98 except those set forth in paragraph 151.22(2)“c” or those eligible for payment pursuant to Iowa Code chapter 249A.

(11) Services ordered under family in need of assistance proceedings unless a person or agency with a contract with the department provides the service for which the child is eligible.

(12) Expenses for all educational testing or programming for children, not weighted as special education students, who attend an on–campus school in an out–of–state facility.

151.22(2) Expenses not reimbursed. Expenses that are excluded from reimbursement because another provision exists in the law include:

a. Foster care (including shelter care). Payment provision is Iowa Code section 234.35.

b. All charges for which the county is obligated by statute to pay including:

(1) Care and treatment of patients by any state mental health institute. Payment provision is Iowa Code section 230.20(5).

(2) Care and treatment of patients by either of the state resource centers or by any other facility established under Iowa Code chapter 222. Payment provision is Iowa Code section 222.60.

(3) Care and treatment of patients by the psychiatric hospital at Iowa City. Payment provision is Iowa Code chapter 225.

(4) Care and treatment of persons at the alcoholic treatment center at Oakdale or any other facility as provided in Iowa Code chapter 125. Payment provision is Iowa Code section 125.44.

(5) Care of children admitted or committed to the Iowa juvenile home at Toledo. Payment provision is Iowa Code section 233B.14.

(6) Clothing, transportation, and medical or other service provided to persons attending the Iowa Braille and Sight–Saving School, the Iowa School for the Deaf, or the state hospital–school for severely handicapped children at Iowa City for which the county becomes obligated to pay pursuant to Iowa Code sections 263.12, 269.2, and 270.4 to 270.7.

(7) Expenses for detention in a facility used for detention. The payment provision is Iowa Code section 232.142.

(8) Care and treatment of persons placed in the county hospital, county care facility, a health care facility as defined in Iowa Code section 135C.1, subsection 6, or any other public or private facility in lieu of admission or commitment to a state mental health institute, resource center, or other facility established pursuant to Iowa Code chapter 222. Payment provisions are Iowa Code sections 222.50, 230.1 and 233B.14.

c. Child–abuse photos and X–rays. Payment provision is Iowa Code section 232.77.

d. Any expenses set forth in subrule 151.22(1) above, which qualify for payment pursuant to Iowa Code chapter 249A.

e. Expense of a child sexual abuse examination. Payment provision is Iowa Code section 915.41.

f. Expense of child day care. Payment provision is Iowa Code section 234.6.

g. Expense of in–home treatment services. Payment provision is 441—Chapters 78, 79, and 83.

h. Expense of homemaker–home health aide services. Payment provision is department of public health rules 641—Chapter 80.

i. Expenses for all educational testing or programming, except for juveniles who attend an on–campus school in an out–of–state facility and who are not weighted as special education students. The payment provision is Iowa Code chapter 256.

j. Expenses for all court–ordered counseling and treatment for adults, including individual, marital, mental health, substance abuse and group therapy. Payment provision is private insurance, Medicare, Medicaid, or other resources consistent with Medicaid and social services eligibility.

These rules are intended to implement Iowa Code section 232.141.

441—151.23 to 151.29 Reserved.

PREAMBLE

The graduated sanction services were initiated in 1994 as early intervention and follow–up services to be provided to children adjudicated delinquent or children who are evaluated by a juvenile court officer or designee to be at risk of such an adjudication. The services are directed to enhance personal or interpersonal adjustment and help the children transition into productive adulthood and thereby prevent or reduce: charges, initial out–of–home placement, and recidivism. The services are provided in the child’s home community.

The graduated sanction services are life skills, school–based supervision, supervised community treatment, and tracking and monitoring. Together this mix of services and the flexibility allowed in tailoring the services to meet specific needs offers a choice of treatment to meet the specific needs of the child.

441—151.30(232) Life skills. Life skills means individual or group instruction which includes, but is not limited to, specific training to develop and enhance personal or interpersonal skills, interpersonal relationships, problem solving, accountability and accepting responsibility, victim empathy, activities of daily living, and job skills.

151.30(1) Service eligibility. Children shall be eligible for life skills services without regard to individual or family income when they are adjudicated delinquent or are evaluated by a juvenile court officer to be at risk of adjudication and are determined by the juvenile court officer to be in need of the service provided by a life skills program. Documentation of the adjudication or the at–risk of adjudication and the need for services shall be maintained by juvenile court services in the child’s case record or case file.

a. Chief juvenile court officers shall establish written procedures for screening and approving referrals for life skills services. The procedures for screening and approving referrals shall be included in the contract.

b. A child who is adjudicated or determined at–risk shall be eligible for life skills training when a juvenile court officer determines the child is in need of individual or group instruction in any of the life skills service components.

c. Juvenile court officers may approve life skills services for up to six consecutive months at a time except that service approval shall not extend beyond the current fiscal year unless a contract is in effect to assume the cost for the services provided in the next fiscal year. The officer shall reevaluate the child’s eligibility and need for these services in accordance with procedures established by the respective juvenile court services district.

d. Referrals shall not be made or accepted when funds for the program are not available.

151.30(2) Service components.

a. Life skills components include specific training to develop and enhance:

(1) Personal or interpersonal skills, including anger management, stress reduction, and self–esteem.

(2) Interpersonal relationships, including anger management, stress reduction, and self–esteem.

(3) Problem solving.

(4) Accountability and accepting responsibility.

(5) Victim empathy.

(6) Activities of daily living.

(7) Job skills including job–seeking skills as well as training for specific jobs and on–the–job training experiences.

b. The components of life skills to be provided by a specific provider and the expected outcomes shall be specified in the contract.

151.30(3) Service referral and follow–up. The juvenile court officer shall:

a. Determine which service provider can best meet the child’s needs.

b. Refer the child to the provider.

c. Assist in the child’s transition to receive the service.

d. Follow up after the service has been provided.

151.30(4) Monitoring of service delivery. Juvenile court officers shall monitor the delivery of life skills services to children for whom they are responsible.

a. Monitoring shall include reviewing provider progress reports and maintaining contact with the child, the child’s family, the provider, and other community agencies to adequately assess the child’s progress and need for service.

b. Juvenile court officers shall report problems in service delivery to the chief juvenile court officer.

c. The provider, the child, or the child’s representatives may report problems in service delivery to the chief juvenile court officer.

151.30(5) Billable unit and rate setting.

a. Life skills service shall be billed on the basis of units of instruction provided to eligible children during specified time frames.

b. The life skills instruction may be provided on an individual or group basis. A group rate shall be established for life skills instruction provided to more than one individual at a time.

c. Providers may incorporate the expenses for instructional materials into the service cost. However, the provider shall be approved for reimbursement for instructional materials when these expenses are not incorporated into the service cost but are included in the contract.

d. The billable unit shall be specified in the contract. Rates for life skills shall be established through agreements between providers, chief juvenile court officers, and the department, based on the provider’s proposed budget. Rates may vary between providers for various types of life skills services.

151.30(6) Provider standards. Providers shall have a contract with juvenile court services and the department for life skills services and agree to abide by all required instructional, reporting, rate setting, and billing and payment procedures for life skills services. Providers of life skills services shall meet all of the following conditions. Providers shall:

a. Be selected and approved by the chief juvenile court officer or designee within each judicial district to provide life skills services.

b. Use staff who, in the opinion of the chief juvenile court officers, have the necessary training and experience to provide quality services on the topic about which they will be delivering instruction. Providers shall ensure that staff involved in service delivery have opportunities for ongoing staff development and in–service training. Chief juvenile court officers shall review provider staff qualifications and training activities.

c. Use a curriculum approved by the chief juvenile court officer for life skills.

d. Have the educational and instructional ability, as determined by juvenile court officers, to deliver life skills services to eligible children in the settings most suited to each child’s needs.

151.30(7) Provider progress reports.

a. Providers of life skills shall submit progress reports on each child receiving services to the assigned juvenile court officer at intervals specified in the contract. The contract shall specify progress reports not more than one month after services are initiated and at the termination of service. Progress reports shall describe the specific instruction provided, the child’s attendance, response to instruction, and progress toward achieving desired goals and objectives identified by the provider and referral source.

b. The juvenile court officer shall file the provider progress report in the child’s case file.

c. Each provider with a life skills program shall prepare a progress report summarizing information about the program and shall submit the report to the chief juvenile court officer. The format and time for submitting these reports shall be specified in the contract.

441—151.31(232) School–based supervision. School–based supervision means a program that provides staff, known as juvenile court school liaisons, who provide on–site services at middle and high schools to children experiencing truancy or other behavior problems at home, at school, or in the community.

151.31(1) Service eligibility. Children shall be eligible for school–based supervision services without regard to individual or family income when they are adjudicated delinquent, are evaluated by a juvenile court officer or designee to be at risk of being found delinquent, are determined to be a child in need of assistance and are determined by the juvenile court officer or designee to be in need of school–based supervision services. Documentation of the adjudication or the at–risk of adjudication and the need for services shall be maintained by juvenile court services or the school district in the child’s case record or case file.

a. Chief juvenile court officers shall establish written procedures for screening and approving referrals for school–based supervision services. The chief may designate department or school staff, in addition to juvenile court officers, who may screen and approve referrals. The procedures for screening and approving referrals shall be included in the contract.

b. The child shall be eligible for school–based supervision when the juvenile court officer or designee determines the child is experiencing truancy or any other behavior problems that are causing increased problems at home, at school, or in the community. Children who meet one of these criteria may be served by a school–based supervision program. Additional eligibility criteria and service procedures may be developed for each school–based program to most effectively target resources to the specific needs of the school. These policies shall be contained in the program description and contract executed between juvenile court services, the department, and the school or provider.

c. Referrals shall not be made or accepted when funds for the program are not available.

151.31(2) Service components. School–based supervision provides staff, known as juvenile court school liaisons, who provide on–site services at middle and high schools to children experiencing truancy or other behavior problems at home, at school, or in the community.

a. Juvenile court school liaisons assist with behavior and classroom management, conflict resolution, school attendance, and violence prevention. Services provided may include, but are not limited to, dealing with misbehavior and truancy on an immediate basis, providing family support services such as outreach and education, performing juvenile court intake functions under the supervision of the chief juvenile court officer, and promoting resource development to meet most effectively the needs of at–risk youth.

b. Each school–based supervision program shall have established procedures for communication and for maintaining records on individual children receiving assistance. The procedures shall include methods for the timely communication of critical information between juvenile court school liaisons and juvenile court services, the department, and school officials; assurances that child abuse allegations shall be reported promptly in accordance with applicable Iowa statutes; and systems to safeguard the confidentiality of the child’s records.

151.31(3) Service referral and follow–up. The juvenile court officer, department staff, or school personnel shall:

a. Determine when a service referral should be made to best meet the child’s needs.

b. Refer the child to the provider.

c. Assist in the child’s transition to receive the service.

d. Follow up after the service has been provided.

151.31(4) Monitoring of service delivery.

a. Juvenile court officers, department staff, and school personnel shall monitor the delivery of school–based supervision services to children for whom they are responsible.

b. Juvenile court officers, department staff, and school personnel shall report problems in service delivery to the chief juvenile court officer.

c. The juvenile court school liaison, the child, or the child’s representatives may report problems in service delivery to the chief juvenile court officer.

151.31(5) Billable unit and rate setting. The school–based supervision program is used to hire staff, through a contract, to provide school–based supervision. The cost of the service is the cost of the salary and related administrative expenses for which the department is billed, generally monthly or quarterly.

a. The contract shall define the rate and time frame to be used for submitting a claim.

b. School–based supervision is generally not an ongoing service provided to children. To substantiate claims for reimbursement, the juvenile court school liaison shall maintain a list (roster) by month of the individual children referred for service and for whom the claim is made. For a claim to be valid, the school–based supervision staff shall have face–to–face or verbal contact with each child whose name appears on the roster. The list shall include the name of the child and the referral source. The school or juvenile court services shall maintain a copy of the list and the claim. The list and the claim are subject to audit. The juvenile court school liaison is not required to list the names of children receiving group services.

c. School–based supervision rates are based on budget and rate setting with each school district. Funds allocated to the department and administered by juvenile court services equal a maximum of 75 percent of the program costs. These funds shall be matched with a minimum of 25 percent of funds committed from the local school district where the program is established. The method used by the local school district in paying the local school district’s share shall be specified in the contract.

(1) The amount of dollars each chief juvenile court officer may use for school–based supervision is equal to the district’s current school–based supervision allocation plus an amount from the court–ordered care and treatment allocation equal to 50 percent of the school–based supervision allocation available to the district for state fiscal year 1998.

(2) The chief juvenile court officer shall transfer an amount, as necessary, to the school–based supervision allocation from the court–ordered care and treatment allocation so that the school–based supervision share of the program cost of each contract equals up to 75 percent of the total program cost of each contract.

(3) The contract shall specify that up to 75 percent of the program cost shall be paid from the school–based supervision funds and that a minimum of 25 percent of the program cost shall be paid by the school district.

(4) A chief juvenile court officer may use funds from an alternative source to replace all or some of the percent due from the school–based supervision funds or the school district, but at no time shall the state’s school–based supervision share exceed 75 percent of the program cost.

151.31(6) Provider standards. The chief juvenile court officer of each judicial district shall be responsible for selecting school–based programs for funding and managing the district’s school–based supervision allocation to ensure that resources are targeted effectively among schools within the district. All applications for funding and subsequent contracts shall contain funding commitments from the local school district for the local school district’s share of program costs.

a. The contract shall specify the respective responsibilities of the three program funders: the department, juvenile court services, and the school district, as well as responsibilities and duties of the program provider.

b. School districts shall make arrangements for the timely payment of program matching funds either to the department or directly to the provider through appropriate school procedures. These arrangements shall be defined in the contract.

c. Each contract shall contain:

(1) A description of the school district and specific schools in which the supervision program shall be implemented, including a description of why these schools were targeted as needing the program.

(2) A description of the proposed school–based supervision program to be implemented, including the referral process for the child, eligibility determination, service denial, reduction, or termination, and appeal procedures. This description may be included in the contract or may be included as an attachment.

(3) A description of the number of staff to be employed in the program, including the job description, staff qualifications, procedures for training and supervising staff, and methods for monitoring the program. A minimum of a bachelor of arts or a bachelor of science degree in the behavioral sciences or related field is required unless the chief juvenile court officer and the school agree that an associate degree is acceptable.

(4) A description of the record–keeping and statistical reporting procedures to be used by the program.

151.31(7) Provider progress reports.

a. School–based supervision programs shall maintain information and statistics that shall include, at a minimum, the service and financial records used to support or substantiate claims for reimbursement and, for the individual children referred for service, the total number of children served as well as educational and behavioral outcomes including attendance, grades, and student conduct.

b. Each school with a school–based supervision program shall prepare a progress report summarizing information about the program and shall submit the report to the chief juvenile court officer. The format and time for submitting these reports shall be specified in the contract.

441—151.32(232) Supervised community treatment. Supervised community treatment means a program that provides supervised educational support and treatment during the day to children who are experiencing social, behavioral, or emotional problems that place them at risk of group care or state institutional placement.

151.32(1) Service eligibility. Children shall be eligible for supervised community treatment services without regard to individual or family income when they are adjudicated delinquent or are evaluated by a juvenile court officer to be at risk of adjudication and the juvenile court officer determines that the child is experiencing social, behavioral, or emotional problems that put the child at risk of group care or state institutional placement. Documentation of the adjudication or at–risk of adjudication and need for services shall be maintained by juvenile court services in the child’s case record or case file.

a. The chief juvenile court officer shall establish written procedures for screening and approving referrals for supervised community treatment services. The procedures for screening and approving referrals shall be included in the contract.

b. The child shall be determined as having a need for supervised community treatment when the juvenile court officer determines the child is experiencing social, behavioral, or emotional problems that put the child at risk of group care or state institutional placement.

c. The child shall not require more extensive treatment than is provided in the supervised community treatment program.

d. Juvenile court officers may approve supervised community treatment services for up to six consecutive months at a time except that service approval shall not extend beyond the current fiscal year unless a contract is in effect to assume the cost for the services provided in the next fiscal year. The officer shall reevaluate the child’s eligibility and need for these services in accordance with the procedures established by the chief juvenile court officer.

e. Referrals shall not be made or accepted when funds for the program are not available.

151.32(2) Service components. Supervised community treatment programs provide treatment to children as well as providing children an opportunity to participate in educational programming. Supportive therapy or counseling and skill development services may be provided through this program to the child’s family.

Supervised community treatment programs may be co–located with school programs. Although the costs of educational programming shall not be funded through the supervised community treatment appropriation, programs shall be developed so that there is close coordination between educational and treatment components. Supervised community treatment programs shall be developed in accordance with the following characteristics and treatment components:

a. Children shall attend the noneducational portion of the program at least three hours per day for at least three days per week.

b. Children shall receive skill–building services focusing on social skills, recreational activities, employment readiness, independent living, and other areas related to their treatment needs each day they attend the program.

c. Children shall receive individual, group, and family therapy and counseling as determined appropriate by the program director and referral source.

d. Snacks and meals shall be provided as necessary throughout the noneducational portion of the program day.

e. Supervision and support services such as transportation to the noneducational program, family outreach, telephone contact, and electronic monitoring of children shall be provided when necessary.

f. Aftercare service planning shall begin upon admission so that timely aftercare services are available upon discharge, if needed.

151.32(3) Service referral and follow–up. The juvenile court officer shall:

a. Determine which service provider can best meet the child’s needs.

b. Refer the child to the provider.

c. Assist in the child’s transition to receive the service.

d. Follow up after the service has been provided.

151.32(4) Monitoring of service delivery.

a. Juvenile court officers shall monitor the delivery of supervised community treatment services to children for whom they are responsible. Monitoring shall include reviewing provider progress reports and maintaining contact with the child, the child’s family, the provider, and other community agencies to adequately assess the child’s progress and need for service.

b. Juvenile court officers shall report problems in service delivery to the chief juvenile court officer.

c. The provider, the child, or the child’s representatives may report problems in service delivery to the chief juvenile court officer.

151.32(5) Billable unit and rate setting.

a. Supervised community treatment shall be billed on the basis of units of service provided to eligible children during specified time frames.

b. The supervised community treatment service may be provided on an individual or group basis.

c. Rates shall be established and reimbursed based on delivery of one–half hour, one hour, or per diem of specified supervised community treatment service.

d. The rate for any supervised community treatment service delivered in the same room by staff with the same qualifications as any other comparable treatment or supportive service program shall be the applicable rate established for the other comparable treatment or supportive services program.

e. Different rates may be established for the different components of the supervised community treatment program. Provision may be made in the contract for the billing and payment of telephone or transportation costs.

(1) Transportation costs may be included in the unit cost or may be reimbursed separately.

(2) Telephone calls may be reimbursed per receipts or at a set rate per call.

151.32(6) Provider standards. Providers of supervised community treatment shall meet all of the following conditions. Agencies or organizations shall:

a. Have a current purchase of services or rehabilitative treatment and supportive services contract with the department.

b. Be selected by the chief juvenile court officer of the judicial district within the geographic area where the program is located to provide supervised community treatment services within all or a portion of the judicial district.

c. Agree to provide services in compliance with the programmatic standards established by the rules of this division.

d. Enter into a contract with juvenile court services and the department that establishes expectations, rates, and billing and payment procedures for the supervised community treatment program.

e. Agree to report supervised community treatment program costs separately on all cost reports.

f. Agree to comply with higher staff qualifications for specific components of these programs when the chief juvenile court officer outlines the expected qualifications in the request for proposal and program contract. In addition:

(1) The minimum standard for staff qualifications for staff employed to deliver services in a supervised community treatment program shall be graduation from high school or possession of a GED certificate and the equivalent of one year of full–time experience in the delivery of human services in a public or private agency.

(2) Providers shall ensure that staff has experience in working with the target population of children and shall provide planned opportunities for ongoing staff development and in–service training.

(3) Staff qualifications shall be monitored by juvenile court services as part of monitoring the contract.

151.32(7) Provider progress reports. Providers of supervised community treatment services shall prepare an initial treatment plan in consultation with the referral source within 30 days of the child’s admission and shall prepare a minimum of quarterly progress reports on each child receiving services.

a. Additional reports may be prepared when requested by the juvenile judge or the child’s juvenile court officer.

b. All reports shall be submitted to the juvenile court officer responsible for monitoring the child’s progress. All reports shall, at a minimum, describe the child’s attendance, adjustment, and progress in achieving the desired goals and objectives established in the treatment plan.

c. Each provider with a supervised community treatment program shall prepare a progress report summarizing information about the program and shall submit the report to the chief juvenile court officer. The format and time for submitting these reports shall be specified in the contract.

441—151.33(232) Tracking, monitoring, and outreach. Tracking, monitoring, and outreach means those activities of tracking, guidance, monitoring, advocacy, and outreach undertaken to provide individualized and intensive one–to–one intervention to a child to help the child establish positive behavior patterns and to help the child maintain accountability in a community–based setting.

151.33(1) Service eligibility. Children shall be eligible for tracking, monitoring, and outreach services without regard to individual or family income when they are adjudicated delinquent or are evaluated by a juvenile court officer to be at risk of adjudication and are determined to need assistance in maintaining accountability in a community–based setting. Documentation of the adjudication or at risk of adjudication and need for services shall be maintained by juvenile court services in the child’s case record or case file.

a. Chief juvenile court officers shall establish written procedures for screening and approving referrals for tracking, monitoring, and outreach services. The procedures for screening and approving referrals shall be included in the contract.

b. The juvenile court officer determines the child is in need of services as evidenced by one of the following situations:

(1) Schools, parents or community organizations, due to concerns or reports of delinquent activities, have completed reports that indicate the need for monitoring and guidance of a child.

(2) A petition has been filed alleging delinquent behavior.

(3) Juvenile court services action has been taken including, but not limited to, informal adjustment agreements, adjudication and disposition proceedings.

c. Juvenile court officers may approve tracking, monitoring, and outreach services for up to six consecutive months at a time except that service approval shall not extend beyond the current fiscal year unless a contract is in effect to assume the cost for the services provided in the next fiscal year. The officer shall reevaluate the child’s eligibility and need for these services in accordance with procedures established by the respective juvenile court services district.

d. Referrals shall not be made or accepted when funds for the program are not available.

151.33(2) Service components. Tracking, monitoring, and outreach service may be provided seven days a week, up to 24 hours a day, and may include multiple daily contacts with the child. The daily contacts with the child may include electronic monitoring and guidance, advocacy, or outreach. The service may include individualized interventions with the child’s family.

The service shall include two primary service components, and, in addition, may include one to three secondary service components.

a. Primary service components include:

(1) Tracking, guidance and monitoring, which may include electronic monitoring. These activities are directed toward the child maintaining accountability and may include multiple daily contacts with the child through direct personal contact, telephone, or electronic monitoring devices.

(2) Advocacy and outreach activities that are designedto provide advocacy for the child and may include assistance in accessing the following types of resources: referral to community organizations, health services (physical and mental), education, employment, legal, case conferences and services planning, diagnostic assessment services, and family competency–building services.

b. Secondary service components shall be provided only in combination with a primary service component, and include guidance, recreation, and transportation.

151.33(3) Service referral and follow–up. The juvenile court officer shall:

a. Determine which service provider can best meet the child’s needs.

b. Refer the child to the provider.

c. Assist in the child’s transition to receive the service.

d. Follow up after the service has been provided.

151.33(4) Monitoring of service delivery.

a. Juvenile court officers shall monitor the delivery of tracking, monitoring, and outreach services to children for whom they are responsible. Monitoring shall include reviewing provider progress reports and maintaining contact with the child, the child’s family, the provider, and other community agencies to adequately assess the child’s progress and need for service.

b. Juvenile court officers shall report problems in service delivery to the chief juvenile court officer.

c. The provider, the child, or the child’s representatives may report problems in service delivery to the chief juvenile court officer.

151.33(5) Billable unit and rate setting. The unit of service shall be defined in increments or a whole of a quarter–hour, half–hour, hour, or day of service to the child. The reimbursement rate shall represent actual costs. For telephone contact monitoring, juvenile court services may choose to reimburse providers at an established flat rate per telephone contact.

151.33(6) Provider standards. Providers of tracking, monitoring, and outreach shall meet all of the following conditions. Providers shall:

a. Have a current contract with juvenile court services and the department in which they agree to accept the unit rate and agree to provide services in compliance with the programmatic requirements for tracking, monitoring, and outreach services.

b. Be selected by the chief juvenile court officer of the judicial district within the geographic area where the program is located to provide tracking, monitoring, and outreach services within all or a portion of the judicial district.

c. Enter into a contract with juvenile court services and the department that establishes expectations, rates, and billing and payment procedures for the tracking, monitoring, and outreach services.

d. Agree to report tracking, monitoring, and outreach costs separately on all cost reports.

151.33(7) Provider progress reports.

a. Providers of tracking, monitoring, and outreach services shall prepare progress reports at least monthly on each child receiving only monitoring services.

b. Providers of tracking, monitoring, and outreach services shall prepare an initial treatment plan in consultation with the referral source within 30 days of the child’s admission for each child who receives ongoing service activities and shall prepare progress reports at least quarterly.

c. Additional reports shall be prepared when requested by the juvenile judge or the child’s juvenile court officer. All reports shall be submitted to the juvenile court officer responsible for monitoring the child’s progress.

d. All reports for children who receive ongoing service activities shall, at a minimum, describe the child’s compliance, adjustment, and progress in achieving the desired goals and objectives established in the treatment plan.

e. Each provider with a tracking, monitoring, and outreach program shall prepare a progress report summarizing information about the program and shall submit the report to the chief juvenile court officer. The format and time for submitting these reports shall be specified in the contract.

These rules are intended to implement Iowa Code section 232.141.

Pursuant to the authority of Iowa Code section 10A.104, Executive Order Number 11 and 2000 Iowa Acts, chapter 1176, the Department of Inspections and Appeals hereby gives Notice of Intended Action to adopt Chapter 6, “Uniform Waiver and Variance Rules,” Iowa Administrative Code.

The rules in Chapter 6 describe the procedures for applying for, issuing or denying waivers and variances from Department rules. The purpose of these rules is to comply with 2000 Iowa Acts, chapter 1176, and Executive Order Number 11, which requires state agencies to adopt a uniform waiver rule.

Public comments concerning the proposed rules willbe accepted until 4:30 p.m. on February 13, 2001. Inter–ested persons may submit written comments by contacting Jennifer Fiihr, Department of Inspections and Appeals, Lucas State Office Building, Second Floor, 321 East 12th Street, Des Moines, Iowa 50319, or fax to (515)242–6863. E–mail may be sent to Jennifer.Fiihr@dia.state.ia.us.

These rules are intended to implement Executive Order Number 11 and 2000 Iowa Acts, chapter 1176.

The following new chapter is proposed.

CHAPTER 6
UNIFORM WAIVER AND VARIANCE RULES

481—6.1(10A,17A,ExecOrd11) Applicability. This chapter outlines a uniform process for the granting of waivers or variances from rules adopted by the department. The intent of this chapter is to allow persons to seek exceptions to the application of rules issued by the department.

“Attached units” means units attached to the department and includes the employment appeal board, hospital licensing board, Iowa citizens foster care review board, racing and gaming commission, and state public defender’s office.

“Department” means the department of inspections and appeals authorized by Iowa Code chapter 10A, which is comprised of the administrative division, administrative hearings division, audits division, health facilities division, inspections division and investigations division. Pursuant to Iowa Code section 7E.2(5), five attached units are included in the department.

“Director” means the director of the department of inspections and appeals or the director’s designee.

“Director/board” means the director, board, commis–sion or state public defender depending on which one has the decision–making authority pursuant to Iowa Code chapter 10A or 7E.

“Person” means an individual, corporation, limited liability company, government or governmental subdivision or association, or any legal entity.

481—6.3(10A,17A,ExecOrd11) Interpretive rules. This chapter shall not apply to rules that merely define the meaning of a statute or other provision of law or precedent if the department does not possess delegated authority to bind the courts to any extent with its definition.

481—6.4(10A,17A,ExecOrd11) Compliance with statute. The department shall not grant a petition for waiver or a variance from a rule unless a statute or other provision of law has delegated authority to the department sufficient to justify that action and the waiver or variance is consistent with the statute or other provision of law. No waiver or variance may be granted from a requirement that is imposed by statute, unless the statute itself specifically authorizes that action. Any waiver or variance must be consistent with statute.

481—6.5(10A,17A,ExecOrd11) Criteria for waiver or variance. At the sole discretion of the director/board, thedirector/board may issue an order, in response to a completed petition or on the department’s own motion, granting a waiver or variance from a rule adopted by the department, in whole or in part, as applied to the circumstances of a specified person or a specific and narrowly drawn class of persons if the director/board finds based on clear and convincing evidence that:

1. The application of the rule to the petitioner would pose an undue hardship on the person or class of persons for whom the waiver or variance is requested;

2. The waiver or variance from the requirements of a rule in the specific case would not prejudice the substantial legal rights of any person;

3. The provisions of a rule subject to a petition for a waiver or variance are not specifically mandated by statute or another provision of law; and

4. Substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the particular rule for which the waiver or variance is requested.

481—6.6(10A,17A,ExecOrd11) Filing of petition. A petition for a waiver or variance must be submitted in writing to the Department of Inspections and Appeals, Office of the Director, Lucas State Office Building, 321 East 12th Street, Des Moines, Iowa 50319. If the petition relates to a pending contested case, the petition shall also be filed in the contested case proceeding.

481—6.7(10A,17A,ExecOrd11) Content of petition. A petition for waiver or variance shall include the following information where applicable and known to the requester:

1. The name, address, and telephone number of the person or entity for whom a waiver or variance is being requested, and the case number of any related contested case.

2. A description and citation of the specific rule from which a waiver or variance is requested.

3. The specific waiver or variance requested, including the precise scope and operative period that the waiver or variance will extend.

4. The relevant facts that the petitioner believes would justify a waiver or variance. This statement shall include a signed statement from the petitioner attesting to the accuracy of the facts provided in the petition, and a statement of reasons that the petitioner believes will justify a waiver or variance.

5. A history of any prior contacts between the department and the petitioner relating to the regulated activity, license, appeal, hearing, audit, investigation, inspection, representation or other assigned function of the department that would be affected by the proposed waiver or variance, including a description of each regulated activity, license, appeal, hearing, audit, investigation, inspection, representation or other assigned function of the department, any notices of violation, contested case hearings, or investigative reports relating to the regulated activity, license, appeal, hearing, audit, investigation, inspection, representation or other assigned function of the department within the last five years.

6. Any information known to the requester regarding the department’s treatment of similar cases.

7. The name, address, and telephone number of any public agency or political subdivision which also regulates the activity in question, or which might be affected by the grant of a waiver or variance.

8. The name, address, and telephone number of any person or entity that would be adversely affected by the grant of a petition.

9. The name, address, and telephone number of any person with knowledge of the relevant facts relating to the proposed waiver or variance.

10. Signed releases of information authorizing persons with knowledge regarding the request to furnish the department with information relevant to the waiver or variance.

481—6.8(10A,17A,ExecOrd11) Additional information. Prior to issuing an order granting or denying a waiver or variance, the department may request additional information from the petitioner relative to the petition and surrounding circumstances. If the petition was not filed in a contested case, the department may, on its own motion or at the petitioner’s request, schedule a telephonic or in–person meeting between the petitioner and the department or department’s des–ignee.

481—6.9(10A,17A,ExecOrd11) Notice. The department shall acknowledge a petition upon receipt. The department shall ensure that notice of the pendency of the petition and a concise summary of its contents have been provided to all persons to whom notice is required by any provision of law, within 30 days of the receipt of the petition. In addition, the department may give notice to other persons. To accomplish this notice provision, the department may require the petitioner to serve the notice on all persons to whom notice is required by any provision of law and provide a written statement to the department attesting that notice has been provided.

481—6.10(10A,17A,ExecOrd11) Hearing procedures. The provisions of Iowa Code sections 17A.10 to 17A.18A regarding contested case hearings shall apply to any petition for a waiver or variance of rule filed within a contested case, and shall otherwise apply to agency proceedings for a waiver or variance only when the department so provides by rule or order or is required to do so by statute.

481—6.11(10A,17A,ExecOrd11) Ruling. An order granting or denying a waiver or variance shall be in writing and shall contain a reference to the particular person and rule or portion thereof to which the order pertains, a statement of the relevant facts and reasons upon which the action is based, and a description of the precise scope and operative period of the waiver if one is issued.

6.11(1) Director/board discretion. The decision on whether the circumstances justify the granting of a waiver or variance shall be made at the discretion of the director upon consideration of all relevant factors, except for the below– listed programs, for which the applicable board, commission or state public defender shall make the decision, upon consideration of all relevant factors:

a. Employment Appeal Board, 486—Chapter 1.

b. Hospital Licensing Board, 481—Chapter 51.

c. Iowa Citizens Foster Care Review Board, 489— Chapter 1.

d. Racing and Gaming Commission, 491—Chapter 1.

e. State Public Defender’s Office, 493—Chapter 1.

6.11(2) Burden of persuasion. The petitioner has the burden of persuasion when a petition is filed for a waiver or variance from a department rule. The standard of proof is clear and convincing evidence.

6.11(3) Special waiver or variance rules not precluded. This chapter shall not preclude the department from granting waivers or variances in other contexts or on the basis of other standards if a statute authorizes the department to do so and the department deems it appropriate to do so.

6.11(4) Administrative deadlines. When the rule from which a waiver or variance is sought establishes administrative deadlines, the director/board shall balance the special individual circumstances of the petitioner with the overall goal of uniform treatment of all persons similarly situated.

6.11(5) Conditions. The director/board may condition the grant of the waiver or variance on such reasonable conditions as appropriate to achieve the objectives of the particular rule in question through alternative means and in compliance with the following provisions:

a. Each petition for a waiver or variance shall be evaluated by the department based on the unique, individual circumstances set out in the petition;

b. A waiver or variance, if granted, shall be drafted by the department so as to provide the narrowest exception possible to the provisions of the rule;

c. The department may place on a waiver or variance a condition that the department finds desirable to protect the public health, safety, and welfare;

d. A waiver or variance shall not be permanent, unless the petitioner can show that a temporary waiver or variance would be impracticable; and

e. If a temporary waiver or variance is granted, there is no automatic right to renewal. At the sole discretion of the department, a waiver or variance may be renewed if the department finds that all of the factors set out in rule 6.5(10A, 17A,ExecOrd11) remain valid.

6.11(6) Time for ruling. The director/board shall grant or deny a petition for a waiver or variance as soon as practicable but, in any event, shall do so within 120 days of its receipt, unless the petitioner agrees to a later date. However, if a petition is filed in a contested case, the director/board has the discretion to wait until the contested case is resolved before entering an order on the petition for waiver or variance.

6.11(7) When deemed denied. Failure of the director/board to grant or deny a petition within the required time period shall be deemed a denial of that petition by the director/board.

6.11(8) Service of order. Within seven days of its issuance, any order issued under this chapter shall be transmitted to the petitioner or the person to whom the order pertains, and to any other person entitled to such notice by any provision of law.

481—6.12(10A,17A,ExecOrd11) Public availability. Subject to the provisions of Iowa Code section 17A.3(1)“e,” the department shall maintain a record of all orders granting or denying waivers and variances under this chapter. All final rulings in response to requests for waivers or variances shall be indexed and available to members of the public at the director’s office.

Twice each year the department must prepare a report that:

1. Identifies the rules for which a waiver or variance has been granted or denied;

2. The number of times a waiver or variance was granted or denied for each rule;

3. A citation to the statutory provisions implemented by these rules; and

4. A general summary of the reasons justifying the department’s actions.

481—6.13(10A,17A,ExecOrd11) Voiding or cancellation. A waiver or variance is void if the material facts upon which the request is based are not true or if material facts havebeen withheld. The director/board may at any time cancel a waiver or variance upon appropriate notice and hearing if the director/board finds that the facts as stated in the request are not true, material facts have been withheld, the alternative means of compliance provided in the waiver or variance have failed to achieve the objectives of the statute, or the requester has failed to comply with the conditions of the order.

481—6.14(10A,17A,ExecOrd11) Violations. Violation of conditions in the waiver or variance approval is the equivalent of violation of the particular rule for which the waiver or variance is granted and is subject to the same remedies or penalties.

481—6.15(10A,17A,ExecOrd11) Defense. After thedirector/board issues an order granting a waiver or variance, the order is a defense within its terms and the specific facts indicated therein for the person to whom the order pertains in any proceeding in which the rule in question is sought to be invoked.

481—6.16(10A,17A,ExecOrd11) Appeals. Any request for an appeal from a decision granting or denying a waiver or variance shall be in accordance with the procedures provided in Iowa Code chapter 17A and department rules. An appeal shall be taken within 30 days of the issuance of the ruling in response to the request unless a contrary time is provided by rule or statute.

Include the following information in the petition for waiver where applicable and known:

1. Provide the petitioner’s (the person that is asking for the waiver or variance) name, address and telephone number.

2. Describe and cite the specific rule from which a waiver or variance is requested.

3. Describe the specific waiver or variance requested, include the exact scope and time period that the waiver or variance will extend.

4. Explain the important facts that the petitioner believes justify the waiver or variance. Include in your explanation (a) why application of the rule would pose an undue hard–ship to the petitioner; (b) why granting the waiver or variance would not prejudice the substantial legal rights of any person; (c) state whether the provisions of a rule subject to this petition are specifically mandated by statute or another provision of law; and (d) state whether public health, safety and welfare will be affected if the requested waiver or variance is granted.

5. Provide history of prior contacts between the department and the petitioner relating to the regulated activity, license, audit, investigation, inspection or representation that would be affected by the waiver or variance. In that history, include a description of each affected regulated activity, license, appeal, hearing, audit, investigation, inspection, representation or other assigned function of the department, any notices of violation, contested case hearings, or investigative reports relating to the regulated activity, license, appeal, hearing, audit, investigation, inspection, representation or other assigned function of the department within the last five years.

6. Provide information known to the petitioner regarding the department’s treatment of similar cases.

7. Provide the name, address and telephone number of any public agency or political subdivision which also regulates the activity in question, or which might be affected by the grant of a waiver or variance.

8. Provide the name, address and telephone number of any person or entity that would be adversely affected or disadvantaged by the grant of the waiver or variance.

9. Provide signed releases of information authorizing persons with knowledge regarding the request to furnish the department with information relevant to the waiver or variance.

I hereby attest to the accuracy and truthfulness of the above information.

Petitioner’s signature Date

These rules are intended to implement Executive Order Number 11 and 2000 Iowa Acts, chapter 1176.

Pursuant to the authority of Iowa Code section 89.5, the Labor Commissioner hereby gives Notice of Intended Action to amend Chapter 200, “General,” Chapter 203, “General Requirements for All Objects,” Chapter 204, “New Installations of Power Boilers,” Chapter 205, “Existing Installations of Power Boilers,” Chapter 206, “Miniature Boilers,” Chapter 207, “Installation of Steam Heating Boilers, Hot Water Heating Boilers and Hot Water Supply Boilers,” and Chapter 209, “Pressure Vessels,” Iowa Administrative Code.

The proposed amendments change the safety standards reference dates to match updated and current standards, adopt a provision regarding evaluation of design margin, and make minor clarifying and technical corrections.

If requested no later than February 7, 2001, by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having not less than 25 members, a public hearing will be held on February 14, 2001, at 1:30 p.m. at 1000 East Grand Avenue, Des Moines, Iowa. Interested persons will be given the opportunity to make oral statements and file documents concerning the proposed amendments. The facility for the oral presentations is accessible to and functional for persons with physical disabilities. Persons who have special requirements should call (515)242–5869 in advance to arrange access or other needed services.

Written data, views, or arguments to be considered in adoption shall be submitted by interested persons no later than February 14, 2001, to Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa 50319–0209.

The Division of Labor Services will issue a regulatory analysis as provided by Iowa Code Supplement section 17A.4A, if a written request is submitted no later than February 26, 2001, to Division of Labor Services, 1000 East Grand Avenue, Des Moines, Iowa 50319. The request may be made by the Administrative Rules Review Committee, the Administrative Rules Coordinator, at least 25 persons who each qualify as a small business, or an organization representing at least 25 small businesses. The organization shall list the names, addresses and telephone numbers of not less than 25 small businesses it represents.

These amendments will not necessitate combined expenditures exceeding $100,000 by all political subdivisions or agencies and entities that contract with political subdivisions to provide services.

These amendments are intended to implement Iowa Code chapter 89.

The following amendments are proposed.

ITEM 1. Amend rule 875—200.2(89) by rescinding the definition of “ANSI/AP1510.”

ITEM 2. Amend rule 875—203.6(89) as follows:

875—203.6(89) Piping, valves, and fitting requirements. No galvanic pipe, valve, or fittings may be used on any object. The minimum piping, valve, and fitting supplied on any object shall be Schedule 40. The piping design must take into account the removal of material for mechanical joints such as threading or bolting, corrosion and erosion requirements, and the effects of hydrostatic head pressure. ASME B31.1 and ASME B31.9 (1995 1998 with 1997 1999 and 2000 addenda) provide the applicable standards and calculations for piping design.

ITEM 3. Amend subrule 203.8(1) as follows:

203.8(1) Welding. Repairs or alterations by welding shall be approved beforehand by an authorized inspector, and all welding repairs or alterations must be in accordance with the “Repairs and Alterations to Boilers and Pressure Vessels by Welding,” Chapter III part RC and part RD, National Board Inspection Code (1995 1998 with 1997 1999 and 2000 addenda). All welding shall be done by an organization holding a National Board “R” stamp. The organization performing the repair or alteration is responsible for filing the appropriate National Board “R” form with the division and the National Board of Boiler and Pressure Vessel Inspectors.

ITEM 4. Amend 875—Chapter 203 by adopting the following new rule:

875—203.21(89) Evaluation of design margin. The provisions of the Welding Research Council “Bulletin,” No. 435, September 1998, are adopted by reference as they pertain to design margin in construction, repairs, and alterations. These provisions shall be utilized where a design margin of less than four is used for design construction, repair, or alteration of boiler pressure vessels as defined in Iowa Code chapter 89.

ITEM 5. Amend subrule 204.2(5) as follows:

204.2(5) Installations—after January 1, 1998, to December 31, 2000. After January 1, 1998, all All new installations of boilers, including reinstalled boilers, shall be installed in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section I (1995 with 1997 addenda) or with the requirements of recognized national or international standards such as DIN, BSI, JIS, or CNS. Unfired steam boilers shall not be constructed under the provisions of Section VIII. Boiler installations shall also comply with ANSI/ASME CSD–1 (1995 with 1996 addenda).

ITEM 6. Amend rule 875—204.2(89) by adopting the following new subrule:

204.2(6) Installations on or after January 1, 2001. On or after January 1, 2001, all new installations of boilers, including reinstalled boilers, shall be installed in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section I (1998 with 1999 and 2000 addenda) or with the requirements of recognized national or international standards such as DIN, BSI, JIS, or CNS. Unfired steam boilers shall not be constructed under the provisions of Section VIII. Boiler installations shall also comply with ANSI/ASME CSD–1 (1995 with 1999 addenda).

ITEM 7. Amend subrule 205.1(1), definition of “E” in the formula, as follows:

E = Efficiency of longitudinal joint calculated pursuant to
ANSI/ASME BPV–1–PG–27 (1995 1998 with 1997
1999 and 2000 addenda).

ITEM 8. Amend subrule 205.4(1) as follows:

205.4(1) The use of weighted–lever safety valves or safety valves having either the seat or disk of cast iron is prohibited. All power boilers shall have direct, spring–loaded, pop–type safety valves that conform to the requirements of ASME Code, Section I (1995 1998 with 1997 1999 and 2000 addenda).

ITEM 9. Rescind paragraph 205.4(10)“c” and reletter paragraph 205.4(10)“d” as 205.4(10)“c.”

ITEM 10. Amend subrule 206.2(3) as follows:

206.2(3) Installations after—–January 1, 1998, to December 31, 2000. After January 1, 1998, all All installed and reinstalled miniature boilers covered by this chapter shall be constructed and installed in accordance with national and international standards such as DIN, BSI, ASME, JIS, or CNS (1995 with 1997 addenda). Only national and international standards acceptable to the division may be utilized. Miniature boilers installed and reinstalled after January 1, 1998, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers must comply with the requirements of ANSI/ASME CSD–1 (1995 with 1997 addenda).

ITEM 11. Renumber subrule 206.2(4) as 206.2(5) and adopt the following new subrule:

206.2(4) Installations on or after January 1, 2001. On or after January 1, 2001, all installed and reinstalled miniature boilers covered by this chapter shall be constructed and installed in accordance with national and international standards such as DIN, BSI, ASME, JIS, or CNS (1998 with 1999 and 2000 addenda). Only national and international standards acceptable to the division may be utilized. Miniature boilers installed and reinstalled on or after January 1, 2001, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers must comply with the requirements of ANSI/ASME CSD–1 (1998 with 1999 addenda).

ITEM 12. Amend subrule 207.2(6) as follows:

207.2(6) Installations after—–January 1, 1998, to December 31, 2000. After January 1, 1998, all All new installations of boilers, including reinstalled boilers, shall be designed, manufactured, installed, inspected, and stamped in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section IV (1995 with 1997 addenda) or with the requirements of recognized national and international standards such as DIN, BSI, JIS, or CNS. Only national and international standards acceptable to the division may be utilized. Boilers installed and reinstalled after January 1, 1998, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers must comply with the requirements of ANSI/ASME CSD–1 (1995 with 1997 addenda).

ITEM 13. Amend rule 875—207.2(89) by adopting the following new subrule:

207.2(7) Installations on or after January 1, 2001. On or after January 1, 2001, all new installations of boilers, including reinstalled boilers, shall be designed, manufactured, installed, inspected, and stamped in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section IV (1998 with 1999 and 2000 addenda) or with the requirements of recognized national and international standards such as DIN, BSI, JIS, or CNS. Only national and international standards acceptable to the division may be utilized. Boilers installed and reinstalled after January 1, 1998, must be inspected by a National Board commissioned inspector and be registered with the National Board. The boilers must comply with the requirements of ANSI/ASME CSD–1 (1998 with 1999 addenda).

ITEM 14. Amend subrule 209.1(4) as follows:

209.1(4) Installations—July 1, 1996, to December 31, 1997. Pressure vessels, including reinstalled pressure vessels, installed between July 1, 1996, and December 31, 1997, shall be designed, manufactured, installed, inspected, and stamped in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section VIII (1995) or with the requirements of recognized national and international standards such as DIN, BSI, ASME, JIS, or CNS. Only national and international standards acceptable to the division may be utilized. Pressure vessels installed and reinstalled after July 1, 1996, must be inspected by a National Board commissioned inspector and be registered with the National Board. The pressure vessels must comply with the requirements of ANSI/ASME CSD–1 (1995), as applicable.

ITEM 15. Amend subrule 209.1(5) as follows:

209.1(5) Installations after—January 1, 1998, to December 31, 2000. After January 1, 1998, pressure Pressure vessels installed, including reinstalled pressure vessels, shall be designed, manufactured, installed, inspected, and stamped in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section VIII (1995) or with the requirements of recognized national and international standards such as DIN, BSI, ASME, JIS, or CNS. Only national and international standards acceptable to the division may be utilized. Pressure vessels installed and reinstalled after January 1, 1998, must be inspected by a National Board commissioned inspector and be registered with the National Board. The pressure vessels must comply with the requirements of ANSI/ASME CSD–1 (1995 with 1997 addenda) as applicable.

ITEM 16. Amend rule 875—209.1(89) by adopting the following new subrule:

209.1(6) Installations on or after January 1, 2001. On or after January 1, 2001, pressure vessels installed, including reinstalled pressure vessels, shall be designed, manufactured, installed, inspected, and stamped in accordance with the requirements of the ASME Code for Boilers and Pressure Vessels Section VIII (1998 with 1999 and 2000 addenda) or with the requirements of recognized national and international standards such as DIN, BSI, ASME, JIS, or CNS. Only national and international standards acceptable to the division may be utilized. Pressure vessels installed and reinstalled on or after January 1, 2001, must be inspected by a National Board commissioned inspector and be registered with the National Board.

ITEM 17. Amend subrule 209.2(2), paragraph “b,” as follows:

b. External pressure. The maximum allowable working pressure for noncode pressure vessels subjected to external or collapsing pressure shall be determined by the ASME Code, Section VIII, Divisions 1, 2 and 3 (1995 1998 with 1997 1999 and 2000 addenda).

ITEM 18. Amend subrule 209.2(4) as follows:

209.2(4) End closures. The maximum allowable working pressure permitted for formed heads under pressure shall be determined by using the formulas in ASME Code, Section VIII, Divisions 1, 2 and 3 (1995 1998 with 1997 1999 and 2000 addenda).

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.

Subrule 52.1(2) is amended to clarify that the protection of Public Law 86–272 cannot be claimed by brokers and manufacturers’ representatives.

The proposed amendment 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 this amendment 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 this proposed amendment may have an impact on small business. The Department has considered the factors listed in Iowa Code Supplement section 17A.4A (1998 Iowa Acts, chapter 1202, section 10). The Department will issue a regulatory analysis as provided in Iowa Code Supplement 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 February 26, 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 this proposed amendment on or before February 23, 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 want 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 February 16, 2001.

This amendment is intended to implement Iowa Code sections 422.33 and 422.34A.

The following amendment is proposed.

Amend subrule 52.1(2), introductory paragraph, as follows:

52.1(2) Corporate activities not creating taxability. Public Law 86–272, 15 U.S.C.A., Sections 381–385, in general prohibits any state from imposing an income tax on income derived within the state from interstate commerce if the only business activity within the state consists of the solicitation of orders of tangible personal property by or on behalf of a corporation by its employees or representatives. Such orders must be sent outside the state for approval or rejection and, if approved, must be filled by shipment or delivery from a point outside the state to be within the purview of Public Law 86–272. Public Law 86–272 does not extend to those corporations which sell services, real estate, or intangibles in more than one state or to domestic corporations. For example, Public Law 86–272 does not extend to brokers or manufacturers’ representatives or other persons or entities selling products for another person or entity.

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 January is 7.75%.

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 January 10, 2001, setting the minimums that may be paid by Iowa depositories on public funds are listed below.

TIME DEPOSITS

7–31 days Minimum 5.70%

32–89 days Minimum 5.50%

90–179 days Minimum 5.50%

180–364 days Minimum 5.50%

One year to 397 days Minimum 5.20%

More than 397 days Minimum 5.20%

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.

Pursuant to the authority of Iowa Code section 556.26, the Treasurer of State gives Notice of Intended Action to amend Chapter 9, “Unclaimed Property,” Iowa Administrative Code.

The amendment to Chapter 9 provides definitions, due diligence guidelines and reporting requirements for holders of unclaimed property, examination procedures, confidentiality standards and instructions for claiming unclaimed property from the Treasurer’s office.

Any interested person may make written suggestions or comments on the proposed rules prior to February 14, 2001. Such written materials should be directed to Stephen Larson, Executive Officer III, Unclaimed Property Division, Hoover State Office Building, First Floor, Des Moines, Iowa 50319; fax (515)281–6962.

There will be a public hearing on February 15, 2001, from 1 to 4 p.m. in the DHS Conference Room, First Floor, Hoover State Office Building, 1305 E. Walnut Street, Des Moines, Iowa 50319, at which time persons may present their views either orally or in writing.

At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the rules.

Any persons who intend to attend the public hearing and have special requirements should contact the Treasurer of State and advise of special needs.

These rules are intended to implement Iowa Code chapter 556 and 2000 Iowa Acts, chapter 1191.

The following amendment is proposed.

Amend 781—Chapter 9 by adopting the following new rules:

781—9.2(556) Purpose. Iowa Code chapter 556 authorizes the treasurer of state to establish administrative rules that are necessary for the purpose of carrying out the provisions of chapter 556, the uniform disposition of unclaimed property Act.

781—9.3(556) Definitions. In addition to the terms defined in Iowa Code section 556.1, the following words or terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

“Act” means the uniform disposition of unclaimed property Act, Iowa Code chapter 556.

“Contract auditor” means any person or entity engaged or hired by the treasurer or the division to provide unclaimed property examination services. “Contract auditor” includes agents, employees and any subcontractor engaged by a contract auditor or engaged by its subcontractors.

“Division” means the Iowa unclaimed property division within the Iowa state treasurer’s office that has the responsibility of administering the Act.

“Due diligence” means the efforts required to be undertaken by a holder of unclaimed property to find the rightful owner of such property before the property is delivered to the state.

“Finder” means a person hired or engaged to assist owners, heirs or other persons in the recovery of unclaimed property.

“Finder agreement” means an agreement to pay a fee, commission, or other compensation to a finder to identify, locate, deliver, recover, or assist in the recovery of unclaimed property reported under the Act.

“Last activity date” means the last verifiable date ofowner–initiated activity or contact with respect to unclaimed property.

“Treasurer” means the treasurer of the state of Iowa.

781—9.4(556) Forms. The following approved forms will be used:

1. Claim form means the form or any other document acceptable to the division used by a claimant to file a claim relative to unclaimed property with the division.

2. Safe Deposit Box Inventory Form is the form required to be used to inventory and report the contents of safe deposit boxes reportable under the Act.

3. Holder Report Form is the form holders are required to use to report unclaimed property to the division.

4. UP4 Negative Report is the form that may be used if a holder has no unclaimed property to report.

781—9.5(556) Due diligence. Holders are to exercise reasonable and necessary due diligence as is consistent with good business practice in attempting to reactivate dormant accounts and to locate owners of unclaimed property.

781—9.6(556) Reporting aggregate amounts to the division. Holders shall report amounts under $25, unclaimed property of unknown owners, and property when the owner has disclaimed entitlement to the property.

9.7(1) Safe deposit boxes or other safekeeping depositories that have been abandoned shall be opened and inventoried in the presence of at least two employees of the holder.

9.7(2) Holders shall list the contents of each box inventoried on a separate Safe Deposit Box Inventory Form provided by the division.

9.7(3) The property and a copy the Safe Deposit Box Inventory Form shall then be sealed for safekeeping until delivered to the owner or to the division when required by the Act.

781—9.8(556) Disposition of safe deposit box contents. If the treasurer determines, after investigation and after an attempt to dispose of the unclaimed property in accordance with the Act, that the probable cost of sale exceeds the value of the property, the treasurer may destroy or otherwise dispose of the property at any time.

9.9(1) A holder may request permission to report and deliver property to the division before it is presumed abandoned by sending a written request to the division.

9.9(2) The letter must identify the property to be reported and delivered and the reasons for requesting permission to report and deliver the property prior to the date it is presumed abandoned.

9.9(3) The division may consent to early reporting and delivery at its sole discretion according to terms and conditions prescribed by the division.

781—9.10(556) Examination of holders. The division may conduct an examination of a holder if the division has reason to believe a holder has failed to report unclaimed property pursuant to the Act.

9.10(1) Examination and review. The treasurer may authorize employees of the treasurer and contract auditors to conduct examinations and review records in the course of an examination.

9.10(2) Examination entrance letter. The division shall send an examination entrance letter to holders selected for examination.

9.10(3) Examination records request. Holders subject to examination are required to comply with any and all requests for records that are made by the division or any contract auditor conducting an examination.

9.10(4) Examination entrance conference. The division, at its option, shall conduct an examination entrance conference with a holder prior to the commencement of an examination, at which the division shall identify the examination period and describe the general examination methods that will be used including, but not limited to, any estimation techniques that may be utilized.

9.10(5) Estimation. The division may use estimation techniques where no holder records exist or the records are insufficient to determine the holder’s obligation due pursuant to the Act.

781—9.11(556) Report of the examination findings. Upon completion of an examination, the division shall provide a written report reflecting the total unclaimed property reporting liability and, pursuant to the Act, any interest due on amounts due and owing for failure to report and deliver property due and payable for prior years.

The division has the discretion to hold a conference with the holder to provide the written report.

781—9.12(556) Delivery of examination findings by the holder. The holder shall deliver to the division within 30 calendar days any unclaimed property and interest due to the division based upon the examination findings.

781—9.13(556) Examination closure letter. Upon receipt of the examination report and delivery of unclaimed property resulting from the examination, the division shall issue an examination closure letter informing the holder that the examination is closed.

781—9.14(556,78GA,ch1191) Appeal of examination findings. A holder may appeal the examination findings of the division.

9.14(1) The holder may utilize the appeals process after receipt of the examination report from the division.

9.14(2) Failure to submit the appeal request within 30 calendar days shall constitute an acceptance of the total unclaimed property reporting liability findings.

9.14(3) The holder shall submit to the division a written request for an appeal along with all supporting documentation.

9.14(4) The division shall contact the holder and schedule an appeal meeting within 20 calendar days of receipt of the holder’s appeal request.

9.14(5) An appeal review shall be conducted at which time the holder shall present evidence supporting the holder’s basis of the appeal.

9.14(6) Based on the evidence and additional information presented during the appeal, the division will render a decision. Such decision will be written and sent to the holder within 30 calendar days of the appeal meeting.

9.14(7) The holder shall file a report and deliver unclaimed property reflecting the unclaimed property reporting liability and interest due on amounts due and owing as determined by the division within 30 calendar days.

781—9.15(556,78GA,ch1191) Entering into contracts with contract auditors. The treasurer may enter into contracts with persons, pursuant to procedures prescribed by the treasurer, for the sole purpose of examining the records of holders to determine compliance with the Act. The treasurer may consider any relevant factors when entering into a contract for services requested in the performance of an unclaimed property examination.

9.15(1) General conditions and requirements.

a. Contract auditors shall comply with all terms and conditions specified in the contract with the treasurer.

b. Contract auditors shall not subcontract any work without prior written authorization from the treasurer. The contract auditors are responsible for ensuring that any subcontractors used during an examination possess sufficient training and experience to adequately perform the unclaimed property examination and agree to comply with all terms and conditions of the contract auditor’s contract with the treasurer.

c. Contract auditors shall possess an ability to examine the records of entities holding various types of unclaimed property.

d. Contract auditors shall have security procedures in place to ensure that all unclaimed property examination reports and working papers are secure.

e. Contract auditors shall have the ability to evaluate and comment on the holder’s procedures and accounting systems related to capturing unclaimed property for present and future reporting periods.

f. In all matters relating to an examination assignment, independence in mental attitude is to be maintained.

g. Contract auditors shall not engage in any examination without written consent from the treasurer.

9.15(2) Guidelines. Contract auditors shall adhere to the following guidelines.

a. Contract auditors shall not participate in examinations in which such participation could be construed or perceived as a conflict of interest. Should the contract auditor believe that it could not conduct an assigned examination due to a conflict of interest or for any other reason, the contract auditor shall notify the division. The division shall then determine whether recusal of the contract auditor from the assignment is appropriate or necessary. If the contract auditor is recused from conducting the examination of a holder, another contract auditor shall be assigned.

b. Contract auditors shall maintain strict confidentiality of any nonpublic records or documents gathered during the course of an examination in accordance with their contract.

c. Contract auditors shall properly document their review and make their working papers gathered during examinations available on demand for review by the treasurer and the attorney general’s office.

d. Upon request, the contract auditors shall provide the holder with relevant copies of working papers supporting any calculation made of unclaimed property reportable and deliverable to the treasurer.

e. Contract auditors shall maintain working papers for a minimum of five years following the completion of the examination assignment, the delivery of unclaimed property, the resolution of any appeal, or the finality of judgment in any litigation, whichever is later.

f. Contract auditors should conduct examinations consistent with the Act and other applicable law, policies of the treasurer, generally accepted accounting principles, generally accepted auditing standards, and any relevant examination rules promulgated pursuant to the Act as they relate to the reporting and delivery of unclaimed property from holders or persons.

9.16(1) All claims for abandoned property shall be filed with the division on the division’s claim form or such other documents as the division finds acceptable.

9.16(2) Claim form requirements. The claim form shall be completed in its entirety. Under no circumstances will the division process a claim if a claimant fails to include the following:

a. Social security number or tax identification number, or both, of all claimants;

b. Signature of claimant(s).

781—9.17(556) Claimant requirements and documentation. The treasurer shall consider any claim filed under the Act.

9.17(1) Claimants should provide the following supporting documentation with their claims, as applicable:

a. Documentation supporting the claim requirements under 9.16(2).

b. Names, addresses and telephone numbers of any potential heirs of the apparent owner, along with the sworn statement of claimant that the claimant has no knowledge of any other potential heirs or any other claimants.

c. A description of the extent to which the apparent owner’s estate was administered by the probate court if applicable.

d. Name and last–known address of the apparent owner as was reported by the holder.

e. Documentation showing a copy of claimant(s) signature(s).

f. A copy of claimant(s) driver’s license or social security card.

g. Proof of ownership if the claimant is the apparent owner.

h. Copies of prior tax returns, birth certificate, passport or other legal documents showing claimant’s identity.

i. If claimant’s name has changed, copies of supporting documentation showing the name change.

j. Documentation showing that the owner lived at the last–known address as reported by the holder if different from the current address. If no documentation can be provided for proof of last–known address as reported by the holder, documentation showing that the claimant conducted business with the holder.

k. Such other documentation as the division may request or determine as necessary given the nature or complexity of the claim.

9.17(2) The claimant shall affirmatively certify that the claimant is the true owner and agree to hold harmless and indemnify the division, its employees, and the state in the event of a superior claim to such property by another claimant or person.

9.17(3) If the subject property is more than $200 or issecurity–related, the signature of the claimant must be notarized by a notary public or be guaranteed by an officer of a bank or financial institution.

781—9.18(556) Proof of payment. A holder, subsequent to payment or delivery of abandoned property to the division, may make payment to the apparent owner and file a proof of payment with the division.

Upon receiving reimbursement from the division, the holder shall assume liability for the claimed assets, and indemnify and hold harmless the division from all future claims related to the claimed assets.

Pursuant to the authority of Iowa Code section 514D.5, the Insurance Commissioner amends Chapter 37, “Medicare Supplement Insurance Minimum Standards,” Iowa Administrative Code.

Changes by the federal government in the Balanced Budget Refinement Act of 1999 and the Ticket to Work and Work Incentives Improvement Act of 1999 necessitate amendments to the Medicare Supplement rules. Because the federal changes became effective August 1, 2000, it is necessary that these amendments be Adopted and Filed Emergency.

The amendments provide a number of changes including changes to benefit standards, preventative medical care benefits, calendar year deductible and guaranteed issue for eligible persons. Many of the changes are focused upon Plan F and Plan J.

In compliance with Iowa Code section 17A.4(2), the Division finds that notice and public participation are unnecessary because Medicare Supplement policies are standardized under federal requirements.

The Division also finds, pursuant to Iowa Code section 17A.5(2)“b”(1), that the normal effective date of the amendments should be waived and these amendments should be made effective upon filing on January 5, 2001, because the federal statute so provides.

These amendments became effective on January 5, 2001.

These amendments are intended to implement Iowa Code section 514D.5 and the Balanced Budget Refinement Act of 1999 and the Ticket to Work and Work Incentives Improvement Act of 1999.

The following amendments are adopted.

ITEM 1. Amend subrule 37.7(1), paragraph “g” by adopting the following new subparagraph:

(4) Each Medicare supplement policy shall provide that benefits and premiums under the policy shall be suspended for the period provided by federal regulation at the request of the policyholder if the policyholder is entitled to benefitsunder Section 226(b) of the Social Security Act and is covered under a group health plan as defined in Section 1862(b)(1)(A)(v) of the Social Security Act. If suspension occurs and if the policyholder or certificate holder loses coverage under the group health plan, the policy shall be automatically reinstituted effective as of the date of loss of coverage if the policyholder provides notice of loss of coverage within 90 days after the date of such loss and pays the premium attributable to the period, effective as of the date of termination of entitlement.

ITEM 2. Amend subrule 37.7(3), paragraph “i,” subparagraphs (2) to (4), as follows:

(2) Any one or a combination of the following preventive screening tests or preventive services, the frequency of which is considered medically appropriate:

1. Fecal occult blood test or digital Digital rectal examination, or both;

3 2. Dipstick urinalysis for hematuria, bacteriuria and proteinuria;

4 3. Pure tone (air only) hearing screening test, administered or ordered by a physician;

5 4. Serum cholesterol screening (every five years);

6 5. Thyroid function test;

7 6. Diabetes screening.

(4) (3) Any other tests or preventive measures determined appropriate by the attending physician.

ITEM 3. Amend subrule 37.15(3), paragraph “d,” outline footnote, as follows:

*Plans F and J also have an option called a high deductible Plan F and a high deductible Plan J. These high deductible plans pay the same or offer the same benefits as Plans F and J after one has paid a calendar year [$1,500] [$1,580] deductible. Benefits from high deductible Plans F and J will not begin until out–of–pocket expenses are [$1,500] [$1,580]. Out–of–pocket expenses for this deductible are expenses that would ordinarily be paid by the policy. These expenses include the Medicare deductibles for Part A and Part B, but do not include, in Plan J, the plan’s separate prescription drug deductible or, in Plans F and J, the plan’s separate foreign travel emergency deductible.

ITEM 4. Amend subrule 37.15(3), paragraph “d,” “NOTICE,” as follows:

NOTICE

This policy may not fully cover all of your medical costs.

[for agents]

Neither [insert company’s name] nor its agents are connected with Medicare.

[for direct response:]

[insert company’s name] is not connected with Medicare.

This outline of coverage does not give all the details of Medicare coverage. Contact your local Social Security Office or consult “The Medicare Handbook” “Medicare & You” for more details.

ITEM 5. Amend subrule 37.15(3), paragraph “d,” Plan F or High Deductible Plan F for Medicare (Part A), title, double asterisk note and table headings, as follows:

PLAN F or HIGH DEDUCTIBLE PLAN F

MEDICARE (PART A) – HOSPITAL SERVICES – PER BENEFIT PERIOD

**This high deductible plan pays the same or offers the same benefits as Plan F after one has paid a calendar year [$1500] [$1580] deductible. Benefits from the high deductible Plan F will not begin until out–of–pocket expenses are [$1500] [$1580]. Out–of–pocket expenses for this deductible are expenses that would ordinarily be paid by the policy. This includes the Medicare deductibles for Part A and Part B, but does not include the plan’s separate foreign travel emergency deductible.

ITEM 6. Amend subrule 37.15(3), paragraph “d,” Plan F or High Deductible Plan F for Medicare (Part B), title, double asterisk note and table headings, as follows:

PLAN F or HIGH DEDUCTIBLE PLAN F

MEDICARE (PART B) – MEDICAL SERVICES – PER CALENDAR YEAR

**This high deductible plan pays the same or offers the same benefits as Plan F after one has paid a calendar year [$1500] [$1580] deductible. Benefits from the high deductible Plan F will not begin until out–of–pocket expenses are [$1500] [$1580]. Out–of–pocket expenses for this deductible are expenses that would ordinarily be paid by the policy. This includes the Medicare deductibles for Part A and Part B, but does not include the plan’s separate foreign travel emergency deductible.

ITEM 7. Amend subrule 37.15(3), paragraph “d,” Plan F or High Deductible Plan F for Other Benefits – Not Covered by Medicare, title and table headings, as follows:

PLAN F or HIGH DEDUCTIBLE PLAN F

OTHER BENEFITS – NOT COVERED BY MEDICARE

ITEM 8. Amend subrule 37.15(3), paragraph “d,” Plan J or High Deductible Plan J for Medicare (Part A), title, double asterisk note and table headings, as follows:

PLAN J or HIGH DEDUCTIBLE PLAN J

MEDICARE (PART A) – HOSPITAL SERVICES – PER BENEFIT PERIOD

**This high deductible plan pays the same or offers the same benefits as Plan J after one has paid a calendar year [$1500] [$1580] deductible. Benefits from high deductible Plan J will not begin until out–of–pocket expenses are [$1500] [$1580]. Out–of–pocket expenses for this deductible are expenses that would ordinarily be paid by the policy. This includes the Medicare deductibles for Part A and Part B, but does not include the plan’s separate prescription drug deductible or the plan’s separate foreign travel emergency deductible.

ITEM 9. Amend subrule 37.15(3), paragraph “d,” Plan J or High Deductible Plan J for Medicare (Part B), title, double asterisk note and table headings, as follows:

PLAN J or HIGH DEDUCTIBLE PLAN J

MEDICARE (PART B) – MEDICAL SERVICES – PER CALENDAR YEAR

**This high deductible plan pays the same or offers the same benefits as Plan J after one has paid a calendar year [$1500] [$1580] deductible. Benefits from high deductible Plan J will not begin until out–of–pocket expenses are [$1500] [$1580]. Out–of–pocket expenses for this deductible are expenses that would ordinarily be paid by the policy. This includes the Medicare deductibles for Part A and Part B, but does not include the plan’s separate prescription drug deductible or the plan’s separate foreign travel emergency deductible.

ITEM 10. Amend subrule 37.15(3), paragraph “d,” Plan J or High Deductible Plan J for Other Benefits – Not Covered by Medicare, title, table headings, and the listing for Preventive Medical Care Benefit – Not Covered by Medicare, as follows:

PLAN J or HIGH DEDUCTIBLE PLAN J

OTHER BENEFITS – NOT COVERED BY MEDICARE

ITEM 11. Rescind rule 191—37.24(514D) and adopt in lieu thereof the following new rule:

37.24(1) Eligible persons are those individuals described in subrule 37.24(2) who, subject to 37.24(2)“b,” apply to enroll under the policy not later than 63 days after the date of the termination of enrollment described in subrule 37.24(2) and who submit evidence of the date of termination or disenrollment with the application for a Medicare supplement policy.

With respect to eligible persons, an issuer shall not deny or condition the issuance or effectiveness of a Medicare supplement policy described in subrule 37.24(3) that is offered and is available for issuance to new enrollees by issuer, shall not discriminate in the pricing of such Medicare supplement policy because of health status, claims experience, receipt of health care, or medical condition, and shall not impose an exclusion of benefits based on a preexisting condition under such Medicare supplement policy.

37.24(2) An eligible person is an individual described in any of the following paragraphs:

a. The individual is enrolled under an employee welfare benefit plan that provides health benefits that supplement benefits under Medicare and the plan terminates or the plan ceases to provide some or all such supplemental health benefits to the individual;

b. The individual is enrolled with a Medicare+Choice organization under a Medicare+Choice plan under Part C of Medicare and any of the following circumstances apply, or the individual is 65 years of age or older and is enrolled with a Program of All–Inclusive Care for the Elderly (PACE) provider under Section 1894 of the Social Security Act and circumstances exist similar to those described below that would permit discontinuance of the individual’s enrollment with such a provider if such individual were enrolled in a Medicare+Choice plan:

(1) The certification of the organization or plan under this part has been terminated or the organization or plan has notified the individual of an impending termination of such certification; or

(2) The organization has terminated or otherwise discontinued providing the plan in the area in which the individual resides or has notified the individual of an impending termination or discontinuance of such plan; or

(3) The individual is no longer eligible to elect the plan because of a change in the individual’s place of residence or other change in circumstances specified by the Secretary, but not including termination of the individual’s enrollment on the basis described in Section 1851(g)(3)(B) of the federal Social Security Act (where the individual has not paid premiums on a timely basis or has engaged in disruptive behavior as specified in standards under Section 1856), or the plan is terminated for all individuals within a residence area; or

(4) The individual demonstrates, in accordance with guidelines established by the Secretary, that:

1. The organization offering the plan substantially violated a material provision of the organization’s contract under this part in relation to the individual, including the failure to provide an enrollee on a timely basis medically necessary care for which benefits are available under the plan or the failure to provide such covered care in accordance with applicable quality standards; or

2. The organization, or agent or other entity acting on the organization’s behalf, materially misrepresented the plan’s provisions in marketing the plan to the individual; or

(5) An individual described in subrule 37.24(1) may elect to apply paragraph 37.24(2)“b” by substituting for the date of termination of enrollment the date on which the individual was notified by the Medicare+Choice organization of the impending termination or discontinuance of the Medicare+Choice plan it offers in the area in which the individual resides, but only if the individual disenrolls from the plan as a result of such notification.

In the case of an individual making the election in subparagraph 37.24(2)“b”(5), the issuer involved shall accept the application that the individual submitted before the date of the termination of enrollment, but the coverage under subrule 37.24(1) shall only become effective upon termination of coverage under the Medicare+Choice plan involved; or

(6) The individual meets such other exceptional conditions as the Secretary may provide;

c. The individual is enrolled with:

(1) An eligible organization under a contract under Section 1876 (Medicare risk or cost); or

(2) A similar organization operating under demonstration project authority, effective for periods before April 1, 1999; or

(3) An organization operating under an agreement under Section 1833(a)(1)(A) (health care payment plan); or

(4) An organization under Medicare Select policy; and

(5) The enrollment ceases under the same circumstances that would permit discontinuance of an individual’s election of coverage under paragraph 37.24(2)“b”;

d. The individual is enrolled under a Medicare supplement policy and the enrollment ceases because:

(1) Of the insolvency of the issuer or bankruptcy of the nonissuer organization; or

(2) The issuer of the policy substantially violated a material provision of the policy; or

(3) The issuer, or an agent or other entity acting on the issuer’s behalf, materially misrepresented the policy’s provisions in marketing the policy to the individual;

e. The individual was enrolled under a Medicare supplement policy and terminated enrollment and subsequently enrolls, for the first time, with any Medicare+Choice organization under a Medicare+Choice plan under Part C of Medicare, any eligible organization under a contract under Section 1876 (Medicare risk or cost), any similar organization operating under demonstration project authority, any PACE program under Section 1894 of the Social Security Act, an organization under an agreement under Section 1833(a)(1)(A) (health care prepayment plan), or a Medicare Select policy; and the subsequent enrollment under 37.24(2)“e” was terminated by the enrollee during any period within the first 12 months of such subsequent enrollment (during which the enrollee is permitted to terminate such subsequent enrollment under Section 1851(e) of the federal Social Security Act); or

f. The individual upon first becoming enrolled for benefits under Part B of Medicare at age 65 or older enrolls in a Medicare+Choice plan under Part C of Medicare or in a PACE program under Section 1894 and disenrolls from the plan or program by no later than 12 months after the effective date of enrollment.

37.24(3) Products to which eligible persons are entitled. The Medicare supplement policy to which eligible persons are entitled under:

a. Subrule 37.24(2), paragraphs “a,” “b,” “c,” and “d,” is a Medicare supplement policy which has a benefit package classified as Plan A, B, C, or F offered by any issuer.

b. Paragraph 37.24(2)“e” is the same Medicare supplement policy in which the individual was most recently previously enrolled if available from the same issuer, or, if not so available, a policy described in paragraph 37.24(3)“a.”

c. Paragraph 37.24(2)“f” shall include any Medicare supplement policy offered by any issuer.

37.24(4) Notification of provisions.

a. At the time of an event described in subrule 37.24(2) because of which an individual loses coverage or benefits due to the termination or change of a contract or agreement, policy, or plan, the organization that terminates or changes the contract or agreement, the issuer terminating or changing the policy, or the administrator of the plan being terminated or changed, respectively, shall notify the individual of the individual’s rights under this rule and of the obligations of issuers of Medicare supplement policies under subrule 37.24(1). Such notice shall be communicated contemporaneously with the notification of termination.

b. At the time of an event described in subrule 37.24(2) because of which an individual ceases enrollment under a contract or agreement, policy, or plan, the organization that offers the contract or agreement, regardless of the basis for the cessation of enrollment, the issuer offering the policy, or the administrator of the plan, respectively, shall notify the individual of the individual’s rights under this rule and of the obligations of issuers of Medicare supplement policies under subrule 37.24(1). Such notice shall be communicated within ten working days of the issuer receiving notification of the disenrollment.

[Filed Emergency 1/5/01, effective 1/5/01]

[Published 1/24/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/24/01.

Pursuant to the authority of Iowa Code section 159.5(11), the Department of Agriculture and Land Stewardship hereby rescinds Chapter 23, “Dairy Trade Practices,” Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on September 6, 2000, as ARC 0110B. No comments were received on the published Notice. The adopted rule making is identical to that published under Notice.

The purpose of this rule making is to eliminate a chapter of the Department’s administrative rules that is no longer necessary. The 2000 General Assembly enacted 2000 Iowa Acts, chapter 1091, that repeals Iowa Code chapter 192A. Chapter 192A established the Department’s dairy trade practices program. As a result of the repeal of the program, there is no need for the Department’s rules intended to implement the program.

There is no waiver provision in this rule making as there are no remaining provisions to waive.

This amendment is intended to implement Iowa Code section 159.5(11) and 2000 Iowa Acts, chapter 1091.

This amendment will become effective on February 28, 2001.

The following amendment is adopted.

Rescind and reserve 21—Chapter 23.

[Filed 1/5/01, effective 2/28/01]

[Published 1/24/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/24/01.

Pursuant to the authority of Iowa Code sections 159.5(11), 192.102, and 194.2, the Department of Agriculture and Land Stewardship hereby amends Chapter 68, “Dairy,” Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on September 20, 2000, as ARC 0135B. Two comments were made on the noticed amendments. The comments were favorable to the rules but sought clarifications. The only changes from the noticed amendments are in response to the comments and to provide the clarifications sought. These are in Item 3, paragraphs 5 and 8, of the adopted amendments.

These amendments are intended to make several changes relating to the regulation of dairy farms and plants. The amendments include adopting the 1999 version of the “Pasteurized Milk Ordinance,” establishing restrictions on the access of dairy cows or other animals to the approach or drive used by a bulk milk truck, establishing limitations on the minimum amount of milk in a bulk tank on a dairy farm before the milk can be picked up, and making technical amendments relating to the sampling and testing of milk.

There are no waiver provisions in this rule making. It is the Department’s opinion that waiver is inappropriate to the provisions of this rule making.

These amendments shall become effective February 28, 2001.

These amendments are intended to implement Iowa Code chapters 192 and 194.

The following amendments are adopted.

ITEM 1. Amend rule 21—68.1(192,194) by adopting the following new definition in alphabetical order:

“P.M.O.” means the Grade A Pasteurized Milk Ordinance, 1999 Recommendations of the United States Public Health Service/Food and Drug Administration, a copy of which is on file with the department and is incorporated into this chapter by reference and made a part of this chapter.

ITEM 2. Amend rule 21—68.4(192), introductory paragraph, as follows:

21—68.4(192) Certification of personnel. Certification programs conducted by the department shall follow closely the procedures as outlined in the pasteurized milk ordinance P.M.O., Appendix B.

ITEM 3. Amend rule 21—68.5(190,192,194,195) as follows:

21—68.5(190,192,194,195) Milk tests. The department recognizes the Babcock test and the turbidimetric method or the Gerber test as an approved method methods of testing milk or cream for milk fat and other dairy products as specified in Standard Methods for the Examination of Dairy Products (16th Edition). That publication is hereby incorporated into this rule by this reference and made part thereof insofar as applicable, a copy of which is on file with the department.

All milk or cream, graded or tested, as provided by Iowa Code chapters 192 and 194 and 195 shall be graded and tested by samples which shall be taken in the following manner:

1. Samples may only be taken from vats or tanks which pass the required organoleptic test;.

2. The the temperature of milk in bulk tanks from which the sample is to be taken must not be higher than 45 degrees Fahrenheit for Grade A milk and 50 _ F degrees Fahrenheit for manufacturing milk.

2 3. The temperature of the milk in the bulk tank shall then be recorded on the farm milk room record, on the collection record, and on the sample container.

3 4. The quantity volume of the milk or cream in the bulk tank shall then be measured and the measurement shall be recorded.

4 5. Bulk tanks of less than 1,000–gallon size shall be agitated for a period of not less than five minutes. Bulk tanks of 1,000 gallons or greater shall be agitated for a period of not less than ten minutes. However, if the manufacturer of the bulk tank provides in writing that a lesser time for agitation is acceptable given the design of the bulk tank, then the lesser time is acceptable if the agitation is done in a manner and time consistent with the manufacturer’s written instructions. In addition, the instructions must be conspicuously posted in the milk room. The instructions shall be laminated, framed under glass, or otherwise displayed so that the instructions will not deteriorate while displayed in the milk room.

5 6. The sample shall then be taken by using a an approved sterile dipper and the liquid milk shall be placed poured in an approved sterile sample container, until the sample container is three–quarters full.

6 7. The sample of milk or cream shall then be immediately stored at a temperature of between 32_F and 40_F degrees Fahrenheit.

This rule is intended to implement Iowa Code sections 194.4, 194.5, and 194.6 and 195.14.

ITEM 4. Amend rule 21—68.6(190,192,194,195) as follows:

21—68.6(190,192,194,195) Test bottles. The following makes of guaranteed test Test bottles and pipettes are as approved by the Standard Methods for the Examination of Dairy Products, 16^th Edition, department are approved for universal use in Iowa: the Nafis, the Kimball and the Wagner. All test bottles should be graduated to the half point.

This rule is intended to implement Iowa Code chapter chapters 192 and 194.

ITEM 5. Rescind and reserve rule 21—68.7(190,192, 194,195).

ITEM 6. Rescind and reserve rule 21—68.8(190,192, 194,195).

ITEM 7. Amend rule 21—68.9(192,194,195) as follows:

21—68.9(192,194,195) Tester’s license. The examination for a tester’s license must be approved and administered by the department.

This rule is intended to implement Iowa Code chapter 192 and sections 192.111 and 194.13, 195.7, and 195.8.

ITEM 8. Amend rule 21—68.10(192,194,195) as follows:

21—68.10(192,194,195) Contaminating activities prohibited in milk plants. All “milk plants,” “creameries,” “cream stations,” “transfer stations,” “receiving stations,” or any other facility for handling of bulk milk or milk products shall be a facility separated from any activity that could contaminate or tend to contaminate the milk or milk products.

ITEM 9. Amend subrule 68.11(1) as follows:

68.11(1) Grade A and Grade B farm permit suspension and revocation. The department may temporarily suspend a Grade A or Grade B farm permit if the dairy farm fails to meet all the requirements as set forth in “Grade A Pasteurized Milk Ordinance, 1997 Revision, printed as Public Health Service/ Food and Drug Administration Publication No. 229” and incorporated into rule 21—68.12(192) the P.M.O. or the Grade B United States Department of Agriculture document titled, “Milk for Manufacturing and Its Production and Processing, Recommended Requirements,” 1996 Revision. A Grade A farm under temporary suspension of the Grade A permit may sell the milk as “milk for manufacturing purposes” until reinstated as a Grade A farm if the former Grade A farm meets the requirements necessary to sell Grade B milk. A Grade B farm under temporary suspension of the Grade B permit may sell milk as “Undergrade Class 3” until reinstated as a Grade B farm if the former Grade B farm meets the requirements of Undergrade Class 3. If an inspection reveals a violation which, in the opinion of the inspector, is an imminent hazard to the public health, the inspector shall take immediate action to prevent any milk believed to have been exposed to the hazard from entering commerce. In addition, the inspector shall immediately notify the department that such action has been taken. In other cases, if there is a repeat violation of a dairy standard as determined by two consecutive routine inspections of a dairy farm, the inspector shall immediately refer the violation to the department for action.

The department may revoke the dairy permit of a person that the department determines is a habitual violator as defined in rule 21—68.1(192,194).

ITEM 10. Amend rule 21—68.12(192), introductory paragraph, as follows:

21—68.12(192) Milk standards. Standards for the production, processing, distribution, transportation, handling, sampling, examination, grading, labeling, sale and standards of identity of Grade A pasteurized milk, Grade A milk products and Grade A raw milk, the inspection of Grade A dairy herds, dairy farms, milk plants, milk receiving stations and milk transfer stations, the issuing, suspension and revocation of permits and licenses to milk producers, milk haulers, and milk distributors shall be regulated in accordance with the provisions of the Grade A Pasteurized Milk Ordinance, 1995 Recommendations of the United States Public Health Service/Food and Drug Administration, P.M.O., a copy of which is on file with the department and is incorporated into this rule by reference and made a part of this rule.

ITEM 11. Amend rule 21—68.13(192,194) as follows:

68.13(1) Certification. A rating of 90 percent or more calculated according to the rating system as contained in Public Health Service “Methods of Making Sanitation Ratings of Milk Supplies Suppliers, 1995 1997 Revision,” shall be necessary to receive or retain a Grade A certification under Iowa Code chapter 192. That publication is hereby incorporated into this rule by this reference and made a part thereof insofar as applicable, a copy of which is on file with the department.

68.13(2) Documents. The following publications of the Public Health Service of the Food and Drug Administration are hereby adopted. A copy of each is on file with the department:

1. “Procedures Governing the Cooperative State–Public Health Service/Food and Drug Administration Program for Certification of Interstate Milk Shippers, 1995 of the National Conference on Interstate Milk Shipments, 1999 Revision.”

2. “Fabrication of Single Service Containers and Closures for Milk and Milk Products, 1993 Revision.”

3. “Grade A Condensed and Dry Milk Products and Condensed and Dry Whey, Supplement I to the Grade A Pasteurized Milk Ordinance, 1995 Ordinance P.M.O.”

4. “Evaluation of Milk Laboratories, 1995 Revision.”

This rule is intended to implement Iowa Code chapter 192.

ITEM 12. Amend 21—Chapter 68 by adopting the following new rule:

68.37(1) The milk truck approach of a dairy farm facility shall not be through a cowyard or any other animal confinement area. In a dairy facility that is under permit by the department on February 28, 2001, the operator of the facility shall have until January 1, 2002, to modify the facility to comply with this rule.

68.37(2) If the milk truck approach is contaminated with manure, the milk truck shall not traverse through the contaminated area.

68.37(3) All milk truck approach driveways shall be graded, maintained in a smooth condition, and shall be topped with gravel or be paved.

This rule is intended to implement Iowa Code chapters 192 and 194.

[Filed 1/5/01, effective 2/28/01]

[Published 1/24/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/24/01.

Pursuant to the authority of Iowa Code sections 159.5(11) and 203C.5, the Department of Agriculture and Land Stewardship hereby amends Chapter 90, “State Licensed Warehouses and Warehouse Operators,” Iowa Administrative Code.

These rules allow warehouse operators to store corn in polyethylene bags or in a ground pile to accommodate the 2000 corn harvest.

Notice of Intended Action was published in the Iowa Administrative Bulletin on September 6, 2000, as ARC 0107B. No public comments were received on these rules. In addition, these rules were simultaneously Adopted and Filed Emergency as ARC 0108B. These rules are identical to the rules published under Notice of Intended Action.

There are no general waiver provisions in these rules. However, there are general waiver provisions in Chapter 90 which are applicable to these rules.

These rules shall become effective February 28, 2001, at which time the Adopted and Filed Emergency rules are rescinded.

These rules are intended to implement Iowa Code sections 203C.2, 203C.7, 203C.8, 203C.12, 203C.16, and 203C.18.

EDITOR’S NOTE: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of text of these rules [90.31, 90.32] is being omitted. These rules are identical to those published under Notice as ARC 0107B and Adopted and Filed Emergency as ARC 0108B, IAB 9/6/00.

[Filed 1/5/01, effective 2/28/01]
[Published 1/24/01]

[For replacement pages for IAC, see IAC Supplement 1/24/01.]

Pursuant to the authority of Iowa Code section 159.5(11), the Department of Agriculture and Land Stewardship hereby adopts a new Chapter 95, “Civil Penalties,” Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on September 20, 2000, as ARC 0134B. No public comments were received on these rules. These rules are identical to those published under Notice of Intended Action.

These rules describe the procedures for assessing civil penalties against grain dealers and warehouse operators for violation of Iowa Code chapter 203 or 203C or the rules promulgated thereunder. In addition, these rules set forth the procedures under which the peer review panel will review cases involving proposed civil penalties and make recommendations regarding those penalties to the Department. These rules do not apply to actions brought by the Department for license suspension or revocation, referrals for criminal prosecutions or actions seeking injunctive relief.

No waiver provision is included. Waivers are inappropriate with these rules.

These rules shall become effective February 28, 2001.

These rules are intended to implement Iowa Code Supplement sections 203.11A and 203C.36A.

The following new chapter is adopted.

CHAPTER 95
CIVIL PENALTIES

21—95.1(203,203C) Definitions. For the purpose of these rules, the following definitions shall apply:

“Contested case hearing” means an evidentiary hearing pursuant to Iowa Code chapter 17A.

“Department” means the grain warehouse bureau of the Iowa department of agriculture and land stewardship.

“Informal settlement” means an agreement between a licensee and the department which provides for sanctions for a violation of Iowa Code chapter 203 or 203C or the rules promulgated thereunder, but does not include a contested case hearing.

“Licensee” means a grain dealer or warehouse operator licensed under Iowa Code chapter 203 or 203C.

“Panel” means the grain industry peer review panel.

“Report” means the information provided by the department to the panel to assist in its review of cases involving proposed civil penalties.

“Review period” means the period of time during which the licensee may seek review of a proposed civil penalty by the panel.

21—95.2(203,203C) Grain industry peer review panel. The panel shall review cases of licensees subject to civil penalties for violations of Iowa Code chapter 203 or 203C or the rules promulgated thereunder. The decision to assess a civil penalty shall be made exclusively by the department. The panel’s review shall be limited to the issues of whether a civil penalty should be assessed and the amount of the penalty. The panel will not determine whether a violation of law has occurred.

21—95.3(203,203C) Organization and location. The panel is located within the Iowa Department of Agriculture and Land Stewardship, Henry A. Wallace Building, Des Moines, Iowa 50319. The department’s office hours are from 8 a.m. to 4:30 p.m., Monday through Friday.

21—95.4(203,203C) Membership. The panel shall consist of five members as set forth in Iowa Code Supplement section 203.11B.

21—95.5(203,203C) Staff. Staff assistance shall be provided through the department.

21—95.6(203,203C) Meetings. The panel shall meet annually to elect a chairperson but may meet at the call of the chairperson or upon written request to the chairperson of two or more members. All panel meetings shall comply with Iowa Code chapter 21. A quorum of three–fifths of the panel shall be present to transact business. Action by the panel requires a vote of a majority of those on the panel. Meetings follow Robert’s Rules of Order. Minutes of each meeting shall be available from the department.

21—95.7(203,203C) Criteria for assessing civil penalties. Licensees who violate Iowa Code chapter 203 or 203C or the rules promulgated thereunder may be subject to civil penalties. In evaluating a violation to determine which cases may be appropriate for assessment of civil penalties, or for purposes of assessing civil penalties, the department shall consider, among other relevant factors, the following:

1. Economic benefits realized by the violator through noncompliance.

2. Willfulness or recklessness of the violation.

3. Actual or threatened damage to sellers or depositors.

4. Actual or potential costs incurred by the department in discovering and responding to the violation.

5. Remedial or corrective action taken by the licensee.

6. Previous history of noncompliance by the licensee.

The amount of civil penalty assessed shall not exceed $1500 per violation. Each day that a violation continues constitutes a separate violation.

21—95.8(203,203C) Notice of civil penalty assessment— informal settlement. The department shall give written notice to the licensee that it intends to seek assessment of a civil penalty. The notice shall describe the violation involved and set forth the amount of civil penalty sought by the department. The licensee shall have 14 days following receipt of the notice to request review of the amount of the civil penalty by the panel.

The department and the licensee may meet to discuss the case and the possibility of an informal settlement. If the parties reach an informal settlement, they may enter a joint stipulation providing for payment of an agreed–upon civil penalty and other sanctions. The joint stipulation is not reviewable by the panel.

21—95.9(203,203C) Panel review. The licensee may seek review of the proposed civil penalty by filing a request for review within 14 days of receipt of the notice of assessment. The request for review shall be served in writing by regular mail upon the chairperson of the panel and the department. The request for review shall contain a concise statement of the reasons why a civil penalty should not be assessed or why it should be assessed at a lesser amount than that proposed by the department. Within 7 days of receipt of the request for review, the department shall forward its report to the panel.

Within 14 days of receipt of the department’s report, the chairperson shall schedule a meeting of the panel in Des Moines at the Henry A. Wallace Building or telephonically, and copies of the request for review and the department’s report shall be provided to the panel.

21—95.10(203,203C) Scope of panel review. The panel shall confine its review to the licensee’s request for review and the department’s report. The department’s investigative file or parts thereof may be made available upon request. The department shall also make available, upon request, records which are otherwise confidential under Iowa Code section 22.7, 203.16, or 203C.24. The review may be in closed session pursuant to Iowa Code section 21.5. The department’s reports shall be considered confidential records. The panel members shall maintain the confidentiality of records made available to the panel.

The panel’s review shall not be a contested case hearing. The panel shall not have power to examine or cross–examine witnesses, nor shall it have power to subpoena witnesses or documents.

21—95.11(203,203C) Panel response. The panel shall respond in writing to the licensee and the department within 30 days of meeting to review the proposed penalty. The panel’s response may include recommendations that the proposed civil penalty be increased, decreased, that no penalty be assessed, or that conditions be placed upon the license.

If the licensee does not respond to the department’s notice of proposed penalty, the department shall seek review of its proposed civil penalty by submitting its report to the panel. Upon receipt of the report the chairperson shall schedule a meeting and the provisions of 21—95.9(203,203C) shall apply.

21—95.12(203,203C) Civil penalty assessment. If the licensee fails to pay the recommended civil penalty within 30 days of receipt of the panel’s response, the department may seek either administrative or judicial assessment of the penalty. The amount of civil penalty sought shall not exceed that recommended by the panel. The panel’s response may be used as evidence in an administrative hearing or civil case except to the extent that the response contains information considered confidential pursuant to Iowa Code section 22.7, 203.16, or 203C.24.

Upon finding that the licensee has violated Iowa Code chapter 203 or 203C or the rules promulgated thereunder, an order shall be issued assessing the civil penalty. The order shall recite the facts, the legal requirements violated, the rationale for assessment of the civil penalty and the date of issuance.

21—95.13(203,203C) Judicial assessment. The department may seek judicial assessment of civil penalties by requesting that the attorney general file an action in Iowa district court to seek assessment of the penalty. In requesting that the attorney general file an action seeking civil penalties, the department may also request that the attorney general seek other relief, such as issuance of an injunction.

21—95.14(203,203C) Civil penalty payment. A civil penalty shall be paid within 30 days from the date that an orderor judgment for the penalty becomes final. In an administrative assessment, the order is not final until all judicial review processes are completed. In a judicial assessment, the judgment is not final until the right of appeal is exhausted.

A person who fails to timely pay a civil penalty shall pay, in addition to the penalty, interest at the rate of one and one–half percent on the unpaid balance of the assessed penalty for each month or part of a month that the penalty remains unpaid.

Moneys collected in civil penalties through settlement or administrative or judicial proceedings shall be deposited in the general fund of the state.

These rules are intended to implement Iowa Code Supplement sections 203.11A and 203C.36A.

[Filed 1/5/01, effective 2/28/01]

[Published 1/24/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/24/01.

Pursuant to the authority of Iowa Code section 13.10, the Attorney General amends Chapter 8, “DNA Profiling,” Iowa Administrative Code.

These amendments revise the Attorney General’s rules that govern procedures for DNA profiling.

Notice of Intended Action was published in the November 1, 2000, Iowa Administrative Bulletin as ARC 0226B. These amendments are identical to those published under Notice of Intended Action.

These amendments are intended to implement Iowa Code section 13.10.

These amendments shall become effective February 28, 2001.

The following amendments are adopted.

ITEM 1. Amend 61—8.1(13), definition of “responsible agency,” as follows:

“Responsible agency.” The district court is the responsible agency under these rules in those cases in which a person is being considered for probation. The Iowa board of parole is the responsible agency under these rules in those cases in which a person is being considered for work release or parole. The department of corrections or the judicial district department of correctional services is the responsible agency under these rules in those cases in which a person is being committed to or discharges from the custody of the director of the department of corrections or the judicial district department of correctional services. The county sheriff is the responsible agency under these rules in those cases in which a person is being confined to the county jail. The responsible agency shall require the taking of a DNA sample.

ITEM 2. Amend 61—8.2(13) as follows:

8.2(1) A person who has been convicted at any time of a listed offense shall, prior to being granted probation, parole or , work release or discharge, submit to DNA profiling under the provisions of Iowa Code section 13.10.

ITEM 3. Amend 61—8.5(13) as follows:

8.5(2) The sample size, methods of drawing and preservation, labeling and shipping shall be as specified by the director administrator of the division of criminal investigation criminalistics laboratory, department of public safety.

ITEM 4. Rescind 61—8.6(13).

[Filed 1/5/01, effective 2/28/01]

[Published 1/24/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/24/01.

Pursuant to the authority of Iowa Code sections 421.17(19) and 422.68, the Department of Revenue and Finance hereby amends Chapter 39, “Filing Return and Payment of Tax,” Chapter 40, “Determination of Net Income,” Chapter 42, “Adjustments to Computed Tax,” Chapter 43, “Assessments and Refunds,” Chapter 46, “Withholding,” Chapter 52, “Filing Returns, Payment of Tax and Penalty and Interest,” Iowa Administrative Code.

Notice of Intended Action was published in IAB Volume XXIII, Number 11, page 869, on November 29, 2000, as ARC 0315B.

All of the rule changes support changes in individual income tax and corporate income tax law enacted in the 2000 session of the General Assembly in 2000 Iowa Acts, chapters 1078, 1058, 1072, 1103, 1163, 1194, 1209, 1146, and 1174.

Items 1 and 2 provide that nonresidents and part–year residents of Iowa are to file Iowa returns if they are subject to Iowa minimum tax. Item 3 provides that Iowa residents serving in military service in an area designated as a hazardous duty area are eligible for the same tax benefits that were previously available only to military personnel serving in a combat zone.

Items 4 and 5 add water district notes and state bonds to the noninclusive list of bonds, interest on which is exempt from state income tax. Item 6 describes an increase in the partial pension/retirement income exclusion for certain qualified individuals that is applicable for tax years beginning on or after January 1, 2001. Item 7 describes changes in the program for contributions to the Iowa educational savings plan, which are deductible on the state income tax returns of the individuals who make the contributions.

Item 8 describes an exemption of income for individuals who were victims of the Holocaust and certain heirs of those victims. Item 9 amends the implementation clause for the school district surtax rule to show that a surtax for asbestos removal was repealed. In addition, references are added in this clause to school district surtax provisions that should have been previously cited.

Item 10 adopts new subrule 42.2(11) providing for a research activities credit. The subrule includes a method for computing the credit as under the previous law and a method for computing the credit according to an alternative method provided in federal income tax law. Item 11 provides a new rule for an assistive device credit which is authorized for individual income tax purposes for small businesses that acquire an assistive device or make workplace modifications for disabled employees.

Item 12 amends the implementation clause for the cow–calf refund to show that the statute was amended although the rule did not require revision. Item 13 adopts new paragraph 46.1(2)“i” that describes the withholding of state income tax from distributions made on or after January 1, 2001, from pensions and other retirement plans with consideration for the increase in the partial pension/retirement income exclusion.

Item 14 adopts three new subrules for research activity credits. The first subrule is for a research activities credit for corporate taxpayers that is almost identical to new subrule 42.2(11) in Item 10. The second new subrule in Item 14 describes the additional research credit for a taxpayer that meets the criteria of an eligible business. This credit is in addition to the research credit made in new subrule 42.2(11) or to the research activities credit in the first subrule under Item 14. The third new subrule in Item 14 is a research credit for increasing activities within an area designated as a quality jobs enterprise zone and is in lieu of other research activities credits.

Item 15 amends subrule 52.10(3) to make reference to two new subrules, 52.7(3) and 52.7(4), which have provisions for new research activities credits. Item 16 amends rule 52.14(422) to make a reference to new subrule 52.7(5) which provides for the research credit for increasing research activities in a quality jobs enterprise zone. Item 17 adopts new rule 52.17(422) which describes the assistive device credit for corporate taxpayers for small businesses that acquire an assistive device or make workplace modifications for disabled employees. This rule is almost identical to the rule adopted in Item 11.

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

These amendments will become effective February 28, 2001, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

These amendments are intended to implement Iowa Code sections 12.71, 15.335, 15A.9, 217.39, 261A.27, 279.52, 357A.15, 422.3, 422.7, 422.10, 422.11E, 422.12B, 422.13, 422.21, 422.33 and 422.121 as amended by 2000 Iowa Acts, chapters 1078, 1058, 1072, 1103, 1163, 1194, 1209, 1146 and 1174.

EDITOR’S NOTE: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [amendments to Chs 39, 40, 42, 43, 46, 52] is being omitted. These amendments are identical to those published under Notice as ARC 0315B, IAB 11/29/00.

[Filed 1/5/01, effective 2/28/01]
[Published 1/24/01]

[For replacement pages for IAC, see IAC Supplement 1/24/01.]

Pursuant to Iowa Code sections 17A.4, 474.5, 476.1, and 476.20 (1999), the Utilities Board (Board) gives noticethat on December 29, 2000, the Board issued an orderin Docket No. RMU–00–5, In re: Disconnection and Reconnection, “Order Adopting Rules.” The amendments to 199 IAC 19.4(15)“h”(3), 19.4(15)“i”(2), 20.4(15)“h”(3) and 20.4(15)“i”(2) make the disconnect and reconnect rules for gas and electric residential service consistent with the Board’s standard customer notice forms.

On February 8, 2000, the Board issued an order in Docket No. RMU–00–5, In re: Disconnection and Reconnection, to consider adopting amendments to current 199 IAC 19.4(15)“i”(2) and 20.4(15)“i”(2) to make them consistent with the Board’s standard customer notice forms contained in 199 IAC 19.4(15)“h”(3) and 20.4(15)“h”(3). The proposed rule making was published in IAB Vol. XXII, No. 18 (3/8/00) p. 1359, as ARC 9717A. Written comments were received from the Iowa Association of Municipal Utilities, the Iowa Association of Rural Electric Cooperatives, Peoples Natural Gas Company, Division of UtiliCorp United Inc., Alliant Energy, MidAmerican Energy Company, and the Consumer Advocate Division of the Department of Justice.

In the original Notice of Intended Action, the Board did not schedule an oral presentation. However, after reviewing the comments and the request for oral presentation filed by Alliant Energy on July 13, 2000, the Board, by order issued August 3, 2000, scheduled an oral presentation. The Amended Notice of Intended Action scheduling the oral presentation was published in IAB Vol. XXIII, No. 4 (8/23/00) p. 363, as ARC 0072B. A public hearing to receive comments on the proposed amendments was held at 10 a.m. on October 5, 2000. In addition to those filing written comments, oral comments were received at the hearing from Iowa Legal Services Corporation.

199 IAC 19.4(15)“i”(2) and 20.4(15)“i”(2) currently provide that “[t]he disconnection of a residential customer may not take place on a weekend, a holiday or after 2 p.m., unless the utility is prepared to reconnect the same day.” The proposed amendments changed these rules to make them consistent with the customer notice forms contained in 199 IAC 19.4(15)“h”(3) and 20.4(15)“h”(3). The customer notice forms provided that disconnection cannot occur unless the utility is prepared to reconnect the same day. The language in the current rule emphasizing holidays, weekends, and after 2 p.m. may provide useful information to some customers but is likely confusing to most because it could cause customers to believe same–day reconnection is not available at other times. The proposed amendments made it clear that the utility must be prepared to reconnect on the same day disconnection occurs if payment or other arrangements are made.

The written comments from utilities and the municipal and electric cooperative associations highlighted some problems with the noticed rules. The utilities generally did not want to have to dispatch crews late at night for economic and safety reasons. The investor–owned utilities can now, in some instances, make payment arrangements by telephone or electronically 24 hours per day. This was not the case when the current rules were adopted. This additional customer convenience makes it necessary to reevaluate the requirement that, in all instances, same–day reconnection be required in the event of disconnection.

The municipal and electric cooperative associations noted that the Board should not mandate that payment arrangements be made 24 hours per day because their members’ office hours are generally in the 8 a.m. to 5 p.m. range and most do not have the capability of making after–hours payment arrangements. The associations noted that to mandate extended hours or the installation of new technology would be cost–prohibitive for their members.

Consumer Advocate and Iowa Legal Services wanted to avoid late–night disconnections and allow customers a reasonable opportunity to be reconnected on the same day of disconnection. At the oral presentation, it became apparent from the comments that utilities currently do not perform disconnections late at night or on weekends and holidays. After much debate, there was no serious objection to language proposed by Consumer Advocate that allowed disconnections only between 6 a.m. and 2 p.m., and not on weekends or holidays. There was also general agreement that if payment arrangements were made by a certain time, reconnection should be the same day. Finally, there was general agreement that, if payment arrangements were made after a certain time, reconnection would not have to occur until a certain time the next day.

The Board will adopt language generally agreed to by most participants. The participants disagreed whether the cut–off for payment arrangements should be 5 p.m., 6 p.m., or 7 p.m. The Board will adopt 7 p.m. because this would allow a customer to have some time after normal working hours to make payment arrangements and have service restored the same day, assuming that customer’s utility was able to make after–hours payment arrangements. The Board will not require utilities to extend office hours or install electronic technology to make late payment arrangements. For many small municipal and cooperative utilities, requiring extended office hours or installation of new technology would be cost–prohibitive.

There was also disagreement as to what time service should be restored the next day if there was a disconnection after the 7 p.m. cut–off time. Consumer Advocate proposed 10 a.m., some utilities proposed 12 noon. The Board will adopt 11 a.m. as a compromise.

Because the disconnection and reconnection rules have been changed from the amendments originally proposed, the customer notification rules also will have to be changed. However, no additional notice is required. The initial Notice of Intended Action stated the Board’s intent to make the disconnection and reconnection rules consistent with the customer notification rules. Changes from the amendments as originally noticed are consistent with and in response to the comments at the oral presentation.

The Board does not find it necessary to propose a separate waiver provision in this rule making. The Board’s general waiver provision in rule 199 IAC 1.3(17A,474,476,78GA, ch1176) is applicable to these rules.

The amendments will become effective on February 28, 2001.

These amendments are intended to implement Iowa Code sections 476.1 and 476.20.

The following amendments are adopted.

ITEM 1. Amend 19.4(15)“h”(3), fourth paragraph of the form “Customer Rights and Remedies to Avoid Disconnection,” as follows:

Disconnection may not take place unless we are prepared to reconnect your service that same day if payment or other arrangements are made. Disconnection of your service may take place only between the hours of 6 a.m. and 2 p.m. on a weekday and not on weekends or holidays. If you make payment or other arrangements during normal business hours, or by 7 p.m. for utilities permitting such payment or other arrangements after normal business hours, all reasonable efforts shall be made to reconnect your service that day. If you make payment or other arrangements after 7 p.m., all reasonable efforts shall be made to reconnect your service not later than 11 a.m. the next day. Between November 1 and April 1, we cannot require you to pay a deposit before service is reconnected or as part of an agreement for service to be continued.

ITEM 2. Amend subparagraph 19.4(15)“i”(2) as follows:

(2) The disconnection of a residential customer may not take place only between the hours of 6 a.m. and 2 p.m. on a weekday and not on weekends or holidays. on a weekend, a holiday or after 2 p.m., unless the utility is prepared to reconnect the same day, and If a disconnected customer makes payment or other arrangements during normal business hours, or by 7 p.m. for utilities permitting such payment or other arrangements after normal business hours, all reasonable efforts shall be made to reconnect the customer that day. If a disconnected customer makes payment or other arrangements after 7 p.m., all reasonable efforts shall be made to reconnect the customer not later than 11 a.m. the next day. A disconnection may not take place where gas is used as the only source of space heating or to control or operate the only space heating equipment at the residence, on any day when the National Weather Service forecast for the following 24 hours covering the area in which the residence is located includes a forecast that the temperature will go below 20 degrees Fahrenheit. In any case where the utility has posted a disconnect notice in compliance with 19.4(15)“h”(3) but is precluded from disconnecting service because of a National Weather Service forecast, the utility may immediately proceed with appropriate disconnection procedures, without further notice, when the temperature in the area where the residence is located rises to above 20 degrees, unless the customer has paid in full the past due amount or is entitled to postponement of disconnection under some other provision of this rule.

ITEM 3. Amend 20.4(15)“h”(3), fourth paragraph of the form “Customer Rights and Remedies to Avoid Disconnection,” as follows:

Disconnection may not take place unless we are prepared to reconnect your service that same day if payment or other arrangements are made. Disconnection of your service may take place only between the hours of 6 a.m. and 2 p.m. on a weekday and not on weekends or holidays. If you make payment or other arrangements during normal business hours, or by 7 p.m. for utilities permitting such payment or other arrangements after normal business hours, all reasonable efforts shall be made to reconnect your service that day. If you make payment or other arrangements after 7 p.m., all reasonable efforts shall be made to reconnect your service not later than 11 a.m. the next day. Between November 1 and April 1, we cannot require you to pay a deposit before service is reconnected or as part of an agreement for service to be continued.

ITEM 4. Amend subparagraph 20.4(15)“i”(2) as follows:

(2) The disconnection of a residential customer may not take place only between the hours of 6 a.m. and 2 p.m. on a weekday and not on weekends or holidays. on a weekend, a holiday or after 2 p.m., unless the utility is prepared to reconnect the same day, and If a disconnected customer makes payment or other arrangements during normal business hours, or by 7 p.m. for utilities permitting such payment or other arrangements after normal business hours, all reasonable efforts shall be made to reconnect the customer that day. If a disconnected customer makes payment or other arrangements after 7 p.m., all reasonable efforts shall be made to reconnect the customer not later than 11 a.m. the next day. A disconnection may not take place where electricity is used as the only source of space heating or to control or operate the only space heating equipment at the residence, on any day when the National Weather Service forecast for the following 24 hours covering the area in which the residence is located includes a forecast that the temperature will go below 20 degrees Fahrenheit. In any case where the utility has posted a disconnect notice in compliance with 20.4(15)“h”(5) but is precluded from disconnecting service because of a National Weather Service forecast, the utility may immediately proceed with appropriate disconnection procedures, without further notice, when the temperature in the area where the residence is located rises to above 20 degrees, unless the customer has paid in full the past due amount or is entitled to postponement of disconnection under some other provision of this rule.

[Filed 1/4/01, effective 2/28/01]

[Published 1/24/01]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/24/01.

At its January 2001 meeting the Administrative Rules Review Committee voted to object to the “emergency” implementation of ARC 0348B. This filing was adopted by the Environmental Protection Commission published in IAB Vol. XXIII, No. 12 (12/13/00).*

The Committee did not question the department’s authority to postpone the approval requirement, noting that Iowa Code §455B.203(2) does give the department discretion to waive the general requirement. Members felt that in this situation it was unreasonable to use the “emergency” rule–making provisions of Iowa Code §§17A.4 and 17A.5. This rule making further delays a requirement that manure management plans be approved by the department. The agency emergency adopted a similar postponement, for the year 2001, in 2000. Members felt that the use of the emergency provisions in this case was unnecessary because for months the EPC was aware that it would be unable to clear the existing backlog of manure management plans filed with the department. Because there was ample time to publish a Notice of Intended Action, members felt that it was unreasonable to wait until December to file an emergency rule.

The effect of this procedural objection is to terminate the filing 180 days following the filing of this objection. During that period the department may replace this emergency filing with a similar provision, adopted with notice and an opportunity for public participation.

*Objection filed 1/9/01