Pages 1609 to 1660 include ARC 0605B to ARC 0639B

Administrative rules review committee 1594

Filed Emergency After Notice, Women, infants,
and children/Iowa farmers market nutrition
program, 50.3 to 50.14 ARC 0632B 1644

Filed, Remediation of agrichemical sites,
ch 51 ARC 0630B 1648

Filed, Meat and poultry inspection,
rescind 76.5, 76.14 ARC 0631B 1648

Filed, Waivers from rules, 1.3, ch 19
ARC 0618B 1648

Schedule for rule making 1592

Publication procedures 1593

Administrative rules on CD–ROM 1593

Agency identification numbers 1607

Opinions summarized 1661

CITATION OF ADMINISTRATIVE RULES 1591

Filed, Accelerated career education grant
program, 19.1 ARC 0621B 1648

Filed, Waiver rules, ch 8 ARC 0619B 1649

Notice, Dental or dental hygiene licensure—
WREB examination option, 11.1, 11.2(2),
11.4, 11.5(2), 12.1, 12.2, 12.3(2), 12.4(5),
12.5 ARC 0637B 1609

Filed, Nitrous oxide inhalation analgesia—
equipment and use; CPR, 29.6 ARC 0636B 1649

Filed, Emergency shelter grants program,
24.12(4) ARC 0625B 1650

Filed, Homeless shelter operation grants
program, 29.11(4) ARC 0624B 1650

Filed, Community development fund, ch 41
ARC 0623B 1650

Notice, Access of allowable growth funds
for at–risk student programs, 12.2, 12.5(13)
ARC 0608B 1610

Notice, Schools, programs and support
services for dropouts and dropout
prevention, rescind ch 61 ARC 0609B 1612

Notice, Accreditation of area education
agency programs and services, 72.1 to
72.5, 72.7, 72.9 to 72.11 ARC 0605B 1612

Notice, Standards for practitioner
preparation programs, 79.1 to 79.10,
79.12, 79.13(4), 79.14 to 79.17
ARC 0606B 1617

Filed, Waivers or variances from administrative
rules, ch 4 ARC 0607B 1651

Filed, Solid waste comprehensive planning
requirements, ch 101; rescind ch 109
ARC 0634B 1651

Filed Emergency, OSHA training—regional
collection center operators; mobile unit
operators, 211.8(2) ARC 0633B 1644

Notice, Family investment program (FIP),
amendments to chs 40, 41, 46, 93
ARC 0610B 1621

HUMAN SERVICES DEPARTMENT[441](Cont’d)

Notice, Medicaid—sanctions for persons
who do not cooperate, 75.14, 75.52(5),
75.56(2), 75.57, 75.58(2), 75.59, 76.1(5)
ARC 0611B 1628

Notice, Medicaid reimbursement—ambulatory
surgical centers, 77.24, 78.26, 79.1(3)
ARC 0612B 1629

Notice, HCBS MR waiver—residential–based
supported community living, 77.37, 78.41(10),
79.1, 83.60, 83.61(1), 83.62(3), 83.70(3)
ARC 0616B 1630

Notice, Record check evaluations for health
care programs, ch 119, 176.10(3)
ARC 0617B 1635

Filed, Use of credit history in underwriting
and making of rates for personal automobile
and homeowners policies, 20.12
ARC 0622B 1658

Notice Terminated, General industry
safety and health, 10.20 ARC 0620B 1637

Filed, IPERS, 21.10(11), 21.10(18)
ARC 0613B 1659

Filed Emergency, IPERS, 21.10(18),
21.24(15) ARC 0614B 1644

Amended Notice, Notification and surveillance
of reportable diseases, 1.6(5) ARC 0639B 1637

Summarized list 1598

Filed Emergency, Fee schedule—building code
plan reviews, 16.131(2)“c” ARC 0615B 1645

Notice, Property rehabilitation tax credit; withholding
tax credit to workforce development fund; ACE
training program credits from withholding,
42.15, 46.6, 46.7, 52.18 ARC 0629B 1637

Filed, Multilevel marketer agreements—
effective date of termination, 4.1(5)
ARC 0628B 1659

Filed, Practice and procedure before the
department of revenue and finance, 7.37,
7.39, 7.42, 7.43, 7.44(1), 7.45 to 7.51
ARC 0627B 1660

Filed, Waiver rules, ch 10 ARC 0626B 1660

Notice—Public funds interest rates 1642

Notice 1642

Notice, Disconnection and reconnection,
19.4(15), 20.4(15) ARC 0635B 1642

Filed Emergency, Emergency extension
of winter moratorium for natural gas
and electric service customers, 19.4(17),
20.4(17) ARC 0638B 1646

CITATION of Administrative Rules

The Iowa Administrative Code shall be cited as (agency identification number) IAC
(chapter, rule, subrule, lettered paragraph, or numbered subparagraph).

441 IAC 79 (Chapter)

441 IAC 79.1(249A) (Rule)

441 IAC 79.1(1) (Subrule)

441 IAC 79.1(1)“a” (Paragraph)

441 IAC 79.1(1)“a”(1) (Subparagraph)

The Iowa Administrative Bulletin shall be cited as IAB (volume), (number), (publication
date), (page number), (ARC number).

IAB Vol. XII, No. 23 (5/16/90) p. 2050, ARC 872A

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

__________________________________

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

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

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

TO: Administrative Rules Coordinators and Text Processors of State Agencies

FROM: Kathleen K. Bates, Iowa Administrative Code Editor

SUBJECT: Publication of Rules in Iowa Administrative Bulletin

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

1. To facilitate the processing of rule–making documents, we request a 3.5” High Density (not Double Density) IBM PC–compatible diskette of the rule making. Please indicate on each diskette the following information: agency name, file name, format used for exporting, and chapter(s) amended. Diskettes may be delivered to the Administrative Code Division, First Floor South, Grimes State Office Building or included with the documents submitted to the Governor’s Administrative Rules Coordinator.

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Containing: Iowa Administrative Code (updated through December 2000)
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State Capitol
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The date, time and location of the Administrative Rules Review Committee’s May 2001 meeting will be announced in the
Supplemental Agenda appearing in the May 2, 2001, Iowa Administrative Bulletin. 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.

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

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

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

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

The following list will be updated as changes occur:

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]

Agricultural Development Authority[25]

Soil Conservation Division[27]

ATTORNEY GENERAL[61]

AUDITOR OF STATE[81]

CITIZENS’ AIDE[141]

CIVIL RIGHTS COMMISSION[161]

COMMERCE DEPARTMENT[181]

Alcoholic Beverages Division[185]

Banking Division[187]

Credit Union Division[189]

Insurance Division[191]

Professional Licensing and Regulation Division[193]

Accountancy Examining Board[193A]

Architectural Examining Board[193B]

Engineering and Land Surveying Examining Board[193C]

Landscape Architectural Examining Board[193D]

Real Estate Commission[193E]

Real Estate Appraiser Examining Board[193F]

Savings and Loan Division[197]

Utilities Division[199]

CORRECTIONS DEPARTMENT[201]

Parole Board[205]

CULTURAL AFFAIRS DEPARTMENT[221]

Arts Division[222]

Historical Division[223]

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

City Development Board[263]

Iowa Finance Authority[265]

EDUCATION DEPARTMENT[281]

Educational Examiners Board[282]

College Student Aid Commission[283]

Higher Education Loan Authority[284]

Iowa Advance Funding Authority[285]

Libraries and Information Services Division[286]

Public Broadcasting Division[288]

School Budget Review Committee[289]

ELDER AFFAIRS DEPARTMENT[321]

EXECUTIVE COUNCIL[361]

GENERAL SERVICES DEPARTMENT[401]

HUMAN RIGHTS DEPARTMENT[421]

Community Action Agencies Division[427]

Criminal and Juvenile Justice Planning Division[428]

Deaf Services Division[429]

Persons With Disabilities Division[431]

Latino Affairs Division[433]

Status of African–Americans, Division on the[434]

Status of Women Division[435]

HUMAN SERVICES DEPARTMENT[441]

INFORMATION TECHNOLOGY DEPARTMENT[471]

INSPECTIONS AND APPEALS DEPARTMENT[481]

Employment Appeal Board[486]

Foster Care Review Board[489]

Racing and Gaming Commission[491]

State Public Defender[493]

LAW ENFORCEMENT ACADEMY[501]

MANAGEMENT DEPARTMENT[541]

Appeal Board, State[543]

City Finance Committee[545]

County Finance Committee[547]

NATURAL RESOURCES DEPARTMENT[561]

Energy and Geological Resources Division[565]

Environmental Protection Commission[567]

Natural Resource Commission[571]

Preserves, State Advisory Board[575]

PERSONNEL DEPARTMENT[581]

PUBLIC DEFENSE DEPARTMENT[601]

Emergency Management Division[605]

Military Division[611]

PUBLIC EMPLOYMENT RELATIONS BOARD[621]

PUBLIC HEALTH DEPARTMENT[641]

Substance Abuse Commission[643]

Professional Licensure Division[645]

Dental Examiners Board[650]

Medical Examiners Board[653]

Nursing Board[655]

Pharmacy Examiners Board[657]

PUBLIC SAFETY DEPARTMENT[661]

REGENTS BOARD[681]

Archaeologist[685]

REVENUE AND FINANCE DEPARTMENT[701]

Lottery Division[705]

SECRETARY OF STATE[721]

TRANSPORTATION DEPARTMENT[761]

Railway Finance Authority[765]

TREASURER OF STATE[781]

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Labor Services Division[875]

Workers’ Compensation Division[876]

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

Pursuant to the authority of Iowa Code section 147.76, the Board of Dental Examiners hereby gives Notice of Intended Action to amend Chapter 11, “Applications,” and Chapter 12, “Examinations,” Iowa Administrative Code.

The purpose of the amendments is to allow applicants for dental or dental hygiene licensure to complete either the Central Regional Dental Testing Service, Inc. (CRDTS) examination or the Western Regional Examining Board, Inc. (WREB) examination, if taken after January 1, 2001. After ongoing study and research, the Steering Committee of CRDTS has recommended that its member states accept both CRDTS and WREB examinations as a qualification for licensure. This will allow applicants for licensure additional flexibility to meet the requirements for licensure by examination. In addition, the amendments require examinees who fail the CRDTS or WREB examination to retake the entire examination. In the past, examinees were required to retake only the portion of the examination in the area of the failure. However, beginning this year, CRDTS has changed the way examinations are scored and administered, so that examinees are now given an overall comprehensive score and can no longer retake only certain portions of the examination.

These amendments are subject to waiver or variance pursuant to 650—Chapter 7.

Any interested person may make written comments or suggestions on the proposed amendments on or before May 8, 2001. Such written comments should be directed toJennifer Hart, Executive Officer, Board of Dental Examiners, 400 SW 8th Street, Suite D, Des Moines, Iowa 50309– 4687. E–mail may also be sent to jhart@bon.state.ia.us.

Also, there will be a public hearing on May 8, 2001, from 3 to 4 p.m. in the Conference Room, 400 SW 8th Street, Suite D, Des Moines, Iowa. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments. Any person who plans to attend the public hearing and who may have special requirements, such as hearing or mobility impairments, should contact the Board and advise of specific needs.

These amendments were approved at the March 19, 2001, special meeting of the Board of Dental Examiners.

These amendments are intended to implement Iowa Code chapters 17A, 147 and 153.

The following amendments are proposed.

ITEM 1. Amend rule 650—11.1(153) as follows:

650—11.1(153) Examination required for licensure to practice dentistry. Any person desiring to take the examination to qualify for licensure to practice dentistry in this state must make application to the Central Regional Dental Testing Service, Inc. (CRDTS), 1725 Gage Blvd., Topeka, Kansas 66604, or the Western Regional Examining Board, Inc. (WREB), 9201 North 25th Avenue, Suite 185, Phoenix, Arizona 85021, and meet such other requirements as CRDTS or WREB may establish for purposes of the examination.

This rule is intended to implement Iowa Code sections 147.29 and 147.34.

ITEM 2. Amend subrule 11.2(2), paragraph “d,” as follows:

d. Evidence of successful completion of the examination, with resulting scores, administered by the Central Regional Dental Testing Service, Inc., or the Western Regional Examining Board, Inc., taken after January 1, 2001.

ITEM 3. Amend rule 650—11.4(153) as follows:

650—11.4(153) Examination required for licensure to practice dental hygiene. Any person desiring to take theexamination to qualify for licensure to practice dental hygiene in this state must make an application to the Central Regional Dental Testing Service, Inc. (CRDTS), 1725 Gage Blvd., Topeka, Kansas 66604, or the Western Regional Examining Board, Inc. (WREB), 9201 North 25th Avenue, Suite 185, Phoenix, Arizona 85021, and meet such other requirements as CRDTS or WREB may establish for purposes of the examination.

This rule is intended to implement Iowa Code sections 147.29 and 147.34.

ITEM 4. Amend subrule 11.5(2), paragraph “d,” as follows:

d. Evidence of successful completion of the examination, with resulting scores, administered by the Central Regional Dental Testing Service, Inc., or the Western Regional Examining Board, Inc., taken after January 1, 2001.

ITEM 5. Amend subrules 12.1(6) and 12.1(7) as follows:

12.1(6) The Prior to April 1, 1995, the examinee must attain an average grade of not less than 70 percent on each clinical portion of the examination and 70 percent on the written portion of the examination. Effective Between April 1, 1995, and December 31, 2000, the examinee must attain an average grade of not less than 75 percent on each clinical portion of the examination and 75 percent on the written portion of the examination. Effective April 1, 1997, the written portion of Central Regional Dental Testing Service will be (CRDTS) was eliminated from the examination. Effective January 1, 2001, the examinee must attain a comprehensive score that meets the standard for passing established by CRDTS or the Western Regional Examining Board, Inc. (WREB).

12.1(7) Each examinee shall be required to perform such clinical operations as may be required by the Central Regional Dental Testing Service, Inc. or the Western Regional Examining Board, Inc. (WREB) for the purpose of sufficiently evaluating and testing the fitness of the examinee to practice dentistry.

ITEM 6. Amend rule 650—12.2(153) as follows:

12.2(1) Second examination.

a. On the second examination attempt, a dental examinee shall be required to take only those sections of the examination in which the examinee did not achieve a score of at least 70 percent. If the second examination attempt was taken after April 1, 1995, the dental examinee shall be required to take only those sections of the examination in which the examinee did not achieve a score of at least 75 percent. Beginning January 1, 2001, a dental examinee who did not achieve a comprehensive passing score on the entire examination shall be required to retake the entire examination.

b. A dental examinee who fails the second examination will be required to complete remedial education requirements set forth in 12.2(2).

12.2(2) Third examination.

a. Prior to the third examination attempt, a dental examinee must submit proof of additional formal education or clinical experience approved in advance by the board.

b. At the third examination, prior to January 1, 2001, the dental examinee will be required to complete only those sections failed on the second attempt. After January 1, 2001, the dental examinee will be required to retake the entire examination.

12.2(3) Fourth examination.

a. Prior to the fourth examination, a dental examinee must submit proof of satisfactory completion of the equivalent of an additional senior year of an approved curriculum in dentistry at a university or school with an approved curriculum.

b. At the fourth examination, the dental examinee shall be required to retake all sections of the examination.

12.2(4) Subsequent failures. For the purposes of additional study prior to retakes, the fifth examination will be considered the same as the third.

12.2(5) Failures. If a dental examinee applies for the Central Regional Dental Testing Service, Inc. or the Western Regional Examining Board, Inc. examination after having failed any other state or regional examination, the failures shall be considered Central Regional Dental Testing Service, Inc. or Western Regional Examining Board, Inc. failures for the purposes of retakes.

ITEM 7. Amend subrules 12.3(2) and 12.4(5) as follows:

12.3(2) Each examinee shall be required to perform such practical demonstrations as may be required by the Central Regional Dental Testing Service, Inc. or the Western Regional Examining Board, Inc. for the purpose of sufficiently evaluating and testing the fitness of the examinee to practice dental hygiene.

12.4(5) Failures. If a dental hygiene examinee applies for the Central Regional Dental Testing Service, Inc. or the Western Regional Examining Board, Inc. examination after having failed any other state or regional examination, the failures shall be considered Central Regional Dental Testing Service, Inc. or Western Regional Examining Board, Inc. failures for the purposes of retakes.

_______________________________

ITEM 8. Amend rule 650—12.5(153) as follows:

650—12.5(153) Additional requirements. Examinees for dentistry or dental hygiene shall be required to meet such other requirements as may be imposed by the Central Regional Dental Testing Service, Inc. or the Western Regional Examining Board, Inc.

Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby gives Notice of Intended Action to amend Chapter 12, “General Accreditation Standards,” Iowa Administrative Code.

The proposed amendments incorporate the requirements of Chapter 61, “Schools, Programs and Support Services for Dropouts and Dropout Prevention,” into the comprehensive school improvement plans of school districts that access allowable growth funds for at–risk student programming. Notice of Intended Action to rescind Chapter 61 is published herein as ARC 0609B.

These amendments reflect program requirements for schools that access allowable growth funds for at–risk student programming; therefore, a waiver of these amendments is not required.

Any interested person may make written suggestions or comments on the proposed amendments on or before May 17, 2001. Written materials should be directed to Jeanette McGreevy, Chief, Bureau of Administration and School Improvement Services, Department of Education, Grimes State Office Building, Des Moines, Iowa 50319, or at the Bureau offices on the second floor of the Grimes State Office Building.

Persons may also present their views orally or in writing at one of the following public hearings. At the hearings, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.

A public hearing will be held on May 16, 2001, from 3:30 to 5:30 p.m. over the Iowa Communications Network (ICN) at the following sites:

A public hearing will also be held on May 17, 2001, from 9:30 to 11 a.m. over the ICN at the following sites:

Any person who intends to attend a public hearing and requires special accommodations for specific needs, such as a sign language interpreter, should contact the Bureau of Administration and School Improvement Services at (515) 281–3170, no later than May 11, 2001.

These amendments are intended to implement Iowa Code sections 257.38 to 257.41.

The following amendments are proposed.

ITEM 1. Amend rule 281—12.2(256) by adopting the following new definitions in alphabetical order:

“Alternative options education programs” means alternative programs or schools as identified in Iowa Code section 280.19A.

“Alternative program” means a class or environment established within the regular educational program and designed to accommodate specific student educational needs such as, but not limited to, work–related training; reading, mathematics or science skills; communication skills; social skills; physical skills; employability skills; study skills; or life skills.

“Alternative school” means an environment established apart from the regular educational program and that includes policies and rules, staff, and resources designed to accommodate student needs and to provide a comprehensive education consistent with the student learning goals and content standards established by the school district or by the school districts participating in a consortium. Students attend by choice.

“At–risk student” means any identified student who needs additional support and who is not meeting or not expected to meet the established goals of the educational program (academic, personal/social, career/vocational). At–risk students, other than students with disabilities, include but are not limited to students in the following groups: homeless children and youth, dropouts, returning dropouts, and potential dropouts.

“Dropout” means a school–age student who is served by a public school district and enrolled in any of grades seven through twelve and who does not attend school or withdraws from school for a reason other than death or transfer to another approved school or school district or has been expelled with no option to return.

“Potential dropouts” means resident pupils who are enrolled in a public or nonpublic school who demonstrate poor school adjustment as indicated by two or more of the following:

1. High rate of absenteeism, truancy, or frequent tardiness.

2. Limited or no extracurricular participation or lack of identification with school including, but not limited to, expressed feelings of not belonging.

3. Poor grades including, but not limited to, failing in one or more school subjects or grade levels.

4. Low achievement scores in reading or mathematics which reflect achievement at two years or more below grade level.

“Returning dropouts” means resident pupils who have been enrolled in a public or nonpublic school in any of grades seven through twelve who withdrew from school for a reason other than transfer to another school or school district and who subsequently enrolled in a public school in the district.

ITEM 2. Amend subrule 12.5(13) as follows:

12.5(13) Provisions for at–risk students. Each school district shall make provisions include in its comprehensive school improvement plan the following provisions for meeting the needs of at–risk students:. Valid valid and systematic procedures and criteria shall be used to identify at–risk students within throughout the school district’s school–age population,. Provisions for at–risk students shall include the following: modified instructional practices; specialized curriculum; parental involvement; and in–school and community–based support services as required in Iowa Code sections 256.11, 280.19, and 280.19A. determination of appropriate ongoing educational strategies for alternative options education programs as required in Iowa Code section 280.19A, and Each school district shall review and evaluate evaluation its at–risk program of the effectiveness of provisions for at–risk students. This subrule does not apply to accredited nonpublic schools.

For those Each school districts requesting to use district using additional allowable growth for its at–risk program provisions for at–risk students, the comprehensive school improvement plan shall incorporate the requirements specified in Iowa Code sections 257.38 to 257.40. educational program goals for at–risk students into its comprehensive school improvement plan. Provisions for at–risk students shall align with the student learning goals and the content standards established by the school district or by school districts participating in a consortium. The comprehensive school improvement plan shall also include objectives, activities, cooperative arrangements with other service agencies and service groups, and strategies for parental involvement to meet the needs of at–risk children. The incorporation of these requirements into a school district’s comprehensive school improvement plan shall serve as the annual application for additional allowable growth designated in Iowa Code section 257.38.

Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby gives Notice of Intended Action to rescind Chapter 61, “Schools, Programs and Support Services for Dropouts and Dropout Prevention,” Iowa Administrative Code.

The requirements of this chapter are being incorporated into 281—Chapter 12, “General Accreditation Standards.” The amendments to Chapter 12 are published herein under Notice of Intended Action as ARC 0608B.

No public hearings will be held. However, any interested party may make written suggestions or comments on the proposed amendment on or before May 8, 2001. Written materials should be directed to Jeanette McGreevy, Chief, Bureau of Administration and School Improvement Services, Department of Education, Grimes State Office Building, Des Moines, Iowa 50319, or at the Bureau offices on the second floor of the Grimes State Office Building.

This amendment is intended to implement Iowa Code sections 257.38 to 257.41.

The following amendment is proposed.

Rescind and reserve 281—Chapter 61.

Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby gives Notice of Intended Action to amend Chapter 72, “Accreditation of Area Education Agency Programs and Services,” Iowa Administrative Code.

The proposed amendments change the requirements for AEA comprehensive planning, annual progress reporting and accreditation site visits and create uniform language between the rules and the Iowa Code.

These amendments reflect statutory provisions. Therefore, a waiver of these rules or any portion of these rules would conflict with state law.

Any interested party may make written suggestions or comments on the proposed amendments on or before May 15, 2001. Written materials should be directed to Jeanette McGreevy, Chief, Bureau of Administration and School Improvement Services, Department of Education, Grimes State Office Building, Des Moines, Iowa 50319–0146, or by fax (515)281–7700, or can be sent by E–mail to jeanette. mcgreevy@ed.state.ia.us. Persons who wish to convey their views orally should contact the Bureau of Administration and School Improvement Services at (515)281–3170 or at the Bureau offices on the second floor of the Grimes State Office Building.

Persons may also present their views either orally or in writing at one of the following public hearings to be held over the ICN Network. At the hearings, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.

________________________________

The first hearing will be held over the ICN on May 9, 2001, from 9:30 to 11 a.m. The sites are as follows:

The second hearing will be held over the ICN on May 15, 2001, from 3:30 to 5 p.m. The sites are as follows:

Any person who intends to attend a public hearing and requires special accommodations for specific needs, such as a sign language interpreter, should contact the Bureau of Administration and School Improvement Services at (515) 281–3170 no later than May 4, 2001.

These amendments are intended to implement Iowa Code section 273.10.

The following amendments are proposed.

ITEM 1. Amend 281—Chapter 72, title, as follows:

CHAPTER 72

ACCREDITATION OF AREA EDUCATION AGENCY PROGRAMS AND SERVICES AGENCIES

ITEM 2. Amend rule 281—72.1(273) as follows:

281—72.1(273) Scope. The purpose of Iowa’s early childhood through twelfth grade educational system is to support learning for all students. Area education agencies, as part of that system, exist to provide leadership and equitable services for school improvement leadership and services to schools and school districts in order to enable every learner to perform at higher education levels. The programs and services of an area Area education agency agencies are subject to accreditation by the state board of education as specified in Iowa Code section 273.10. These rules apply to the accreditation of area education agency programs and services agencies.

ITEM 3. Amend rule 281—72.2(273) as follows:

Adopt the following new definitions in alphabetical order:

“Agencywide goals” means cross–divisional desired targets to be reached over an extended period of time, derived from agencywide needs assessment and state and local student learning needs, and upon which services are focused.

“Baseline data” means information gathered at a selected point in time and used thereafter as a basis from which to monitor change.

“Equitable” means that services provided by an AEA are accessible to all schools and school districts within the agency’s service region.

“External knowledge base” means what is known, such as research and student achievement data, from the state or the nation about how learners in other settings perform and respond in a content area such as reading, mathematics, or science, as well as what is known about developing a learning environment that will support the desired student performance and response in a content area such as reading, mathematics, or science.

“Inclusive schools” means schools which act to welcome, physically include, and provide supportive learning environments for all students regardless of their disability, marital status, gender, language, national origin, religion, creed, race, color, sexual orientation, or socioeconomic status.

“Indicators of improvement” means internal data the agency uses to determine how well its continuous improvement processes are implemented.

“Indicators of quality” means external data sources which measure the effectiveness of services.

“School” means an accredited nonpublic school.

“School district” means a public school district.

“State indicators” means the school and school district indicators defined in 281—paragraph 12.8(3)“a.”

Rescind the definition of “schools.”

ITEM 4. Amend rule 281—72.3(273) as follows:

281—72.3(273) Accreditation components. To be accredited by the board and maintain accreditation status, an AEA shall: have provide an approved three–year comprehensive plan, an approved annual budget and plan update, and approved programs and services following a comprehensive on–site review. services which meet the standards defined in 281—72.4(273), establish a comprehensive improvement plan as defined in 281—72.9(273), submit a board–approved annual budget as defined in 281—subrule 72.10(1), and annually provide a progress report as defined in 281—subrule 72.10(2).

ITEM 5. Rescind rule 281—72.4(273) and adopt the following new rule in lieu thereof:

281—72.4(273) Standards for services. An AEA shall provide services that meet these standards as evidenced by, but not limited to, the descriptors following each standard. These services shall be accessible to all schools and school districts within the agency’s service region.

72.4(1) The AEA shall deliver services for school–community planning. The AEA assists schools and school districts in assessing needs of all students, developing collaborative relationships among community agencies, establishing shared direction, implementing actions to meet goals, and reporting progress toward goals.

72.4(2) The AEA shall deliver professional development services for schools, school districts and AEA instructional, administrative, and support personnel. The AEA anticipates and responds to schools’ and school districts’ needs; supports proven and emerging educational practices; aligns with school and school district comprehensive long–range and annual improvement goals; uses adult learning theory; supports improved teaching; uses theory, demonstration, practice, feedback, and coaching; and addresses professional development activities as required by the Iowa Code or administrative rules.

72.4(3) The AEA shall deliver curriculum, instruction, and assessment services that address the areas of reading, language arts, mathematics, and science but may also be applied to other curriculum areas. These services support the development, implementation, and assessment of rigorous content standards in, but not limited to, reading, mathematics, and science. The AEA assists schools and school districts in gathering and analyzing student achievement data as well as data about the learning environment, compares those data to the external knowledge base, and uses that information to guide school and school district goal setting and implementation of actions to improve student learning.

72.4(4) The AEA shall address the diverse learning needs of all children and youth, including but not limited to services which address gifted and talented students and meet the unique needs of students with disabilities who require special education. Services provide support to schools and school districts and include special education compliance with Iowa administrative rules for special education.

72.4(5) The AEA shall provide services that support inclusive schools. These services assist schools and school districts to take actions that ensure all students are free from discriminatory acts and practices; to establish policies and take actions that ensure all students are free from harassment; to incorporate into the educational program instructional strategies and student activities related to responsibilities, rights, and the respect for diversity which are necessary for successful citizenship in a diverse community and a global economy; and to incorporate on an ongoing basis activities within professional development that prepare and assist all employees to work effectively with diverse learners and to implement multicultural, gender–fair approaches to the educational program.

72.4(6) The AEA shall deliver media services. These services align with school and school district needs, support effective instruction, and provide consultation, research and information services, instructional resources, and materials preparation and dissemination to assist schools and school districts to meet the learning needs of all students and support local district media services. These services support the implementation of content standards in, but not limited to, reading, mathematics, and science. These services also support and integrate emerging technology.

72.4(7) The AEA shall supplement and support effective instruction for all students through school technology services. These services provide technology planning, technical assistance, and professional development, and support the incorporation of instructional technologies to improve student achievement. These services support the implementation of content standards in, but not limited to, reading, mathematics, and science. These services support and integrate emerging technology.

72.4(8) The AEA shall deliver services that develop leadership based upon the Iowa Standards for School Administrators as adopted by the board of educational examiners. Leadership services assist with recruitment, induction, retention, and professional development of educational leaders. AEAs develop and deliver leadership programs based on local and state educational needs and best practices.

72.4(9) The AEA shall deliver management services if requested. If the AEA provides management services to school districts, the services shall conform to the provisions of Iowa Code section 273.7A.

ITEM 6. Rescind and reserve rule 281—72.5(273).

ITEM 7. Rescind and reserve rule 281—72.7(273).

ITEM 8. Amend rule 281—72.9(273), introductory paragraph, as follows:

281—72.9(273) Comprehensive improvement plan. Each AEA, using forms provided on a cycle established by the department, shall submit to the department a comprehensive improvement plan describing its programs and services. The plan shall be the basis for the improvement actions taken by the agency and shall also serve as a basis for the comprehensive site visit.

ITEM 9. Rescind subrule 72.9(1) and adopt the following new subrule in lieu thereof:

72.9(1) Comprehensive improvement plan contents. At a minimum, the comprehensive improvement plan for an AEA shall include the following:

a. Needs assessment. The plan shall contain a description of how the AEA conducts ongoing needs assessment.

b. Needs assessment summary. The plan shall contain a summary of the findings from agencywide needs assessment. The summary, at a minimum, shall include the following:

(1) Findings from AEA internal needs assessment which includes, at a minimum, four indicators of improvement:

1. Implementation of a continuous improvement model;

2. Implementation of services that respond to schools’ and school districts’ needs;

3. Demonstration of proactive leadership;

4. Use of data to implement actions to improve student learning;

(2) Findings from school and school district state indicator data;

(3) Findings from reviews of school and school district comprehensive school improvement plans;

(4) Findings from the department’s comprehensive site visit reports to schools and school districts;

(5) Findings from AEA comprehensive site visit reports; and

(6) Findings from the department’s statewide customer service survey.

c. Agencywide goals. The plan shall contain agencywide goals developed as a result of needs assessment findings. Agencywide goals shall be measurable and, at a minimum, focused on assisting schools and school districts with the school improvement process and improving teaching and learning as evidenced in the indicators of quality as prescribed in subrule 72.10(2).

d. Services. The plan shall describe the services developed to meet agencywide goals and to meet the standards defined in this chapter.

e. Action plans. The plan shall include agencywide actions to accomplish agencywide goals. Action plans shall include evidence of meeting all standards for services. Action plans shall include provisions for equitable availability of services. The agencywide action plans shall include, at a minimum, the following components:

(1) Agencywide data sources;

(2) Agencywide baseline data;

(3) Services to meet the agencywide goals;

(4) Agencywide resources, which include funding, staff allocation, and time and may be delivered directly, through contractual agreements, and through collaborative arrangements with other educational or community agencies;

(5) Agencywide responsible parties that will monitor the implementation of services in the action plan;

(6) A system for measuring the efficiency and effectiveness of services; and

(7) A process for reporting progress toward agencywide goals.

f. Provisions for management services. If the AEA provides management services to school districts, the plan shall include a description of how the agency provides those services as described in Iowa Code section 273.7A.

ITEM 10. Rescind and reserve subrule 72.9(2).

ITEM 11. Amend subrule 72.9(3) as follows:

72.9(3) Approval Comprehensive improvement plan review process.

a. The comprehensive improvement plan of an AEA shall be reviewed by a team of the department to determine if the plan meets the requirements of this chapter. An AEA will be provided reasonable time to correct any deficiencies. staff members appointed by the director. Following the review of an AEA’s plan, the team shall recommend to the director whether the plan meets the requirements of this chapter. The AEA shall be provided with the opportunity to respond to the review team’s report.

ITEM 12. Amend rule 281—72.10(273), introductory paragraph, as follows:

281—72.10(273) Annual budget and plan update annual progress report. Each AEA shall submit to the board an annual budget as required by Iowa Code section 273.3 and shall provide a an annual progress report on the agency’s three year plan. indicators of quality and the agencywide goals.

ITEM 13. Amend subrule 72.10(1) as follows:

72.10(1) Annual budget. An annual budget shall be submitted by an AEA accredited by the board or an AEA that has been given conditional accreditation by the board as described in Iowa Code section 273.3(12) and subrule 72.11(4) to the board, on forms provided by the department, no later than March 15 preceding the next fiscal year for approval. The board shall review the proposed budget and agency plan and shall, before April 1, either grant approval or return the budget without approval with comments of the board included. An unapproved budget shall be resubmitted to the board for final approval no later than April 15. For the fiscal year beginning July 1, 1999, and each succeeding fiscal year, the board shall give final approval only to budgets:

ITEM 14. Amend subrule 72.10(2) as follows:

72.10(2) Plan update. Annual progress report. An AEA shall annually submit with its annual budget a written progress report to its schools and school districts and the department and make the report available to the public. on the agency’s three–year plan on forms provided by the department. The report shall identify the agency’s progress on the plan’s intended results and any changes or modifications to the plan in response to the agency’s ongoing monitoring of progress. The report shall be reviewed by a team of department staff members appointed by the director of the department. The review team shall report to the director its findings and recommendation regarding approval of the report. The AEA shall be provided with the opportunity to respond to the review team’s report. The director shall present the review team’s findings to the board and recommend action by the board. The board shall determine whether an AEA’s annual report is approved. An annual report may be approved in part and subject to the remedying of deficiencies or omissions. The report shall include, but not be limited to, the following information:

(4) Resource management. An AEA assists schools and school districts:

ITEM 15. Amend rule 281—72.11(273), catchwords, as follows:

ITEM 16. Amend subrule 72.11(1) as follows:

72.11(1) On–site review. An accreditation team shall conduct one or more on–site reviews of the AEA for evaluation of its programs and services. AEA’s progress toward agencywide goals and shall determine if services meet the standards in this chapter. Prior to an on–site review of an AEA, the accreditation team shall have access to the AEA’s three–year comprehensive improvement plan, and annual plan updates progress report, and annual budget as well as any other information collected by the department relating to the AEA.

ITEM 17. Amend subrule 72.11(2) as follows:

72.11(2) Accreditation team. The membership of the accreditation team shall be determined by the director. Each team member should have appropriate competencies, background, and experiences to enable the member to contribute to the evaluation visit. The team shall include at least four members, but not more than seven members. The team shall include including, but is not limited to:

a. Department staff members.

b. Representatives from large and small schools various sizes of schools and school districts served by the AEA being evaluated.

c. AEA staff members from other AEAs. other than the AEA that is being evaluated for accreditation.

d. Other members Others with expertise as deemed appropriate by the director.

ITEM 18. Amend subrule 72.11(3) as follows:

72.11(3) Accreditation team action. After an on–site review of an AEA, the accreditation team shall determine whether the requirements of this chapter have been met and shall make a report to the director with a recommendation as to whether the AEA program should receive initial accreditation or remain accredited. identifying which standards and other accreditation requirements in this chapter an AEA has or has not met. The accreditation team shall report strengths and weaknesses, if any, for each accreditation standard or requirement, and shall advise the AEA of available resources and technical assistance to further enhance the strengths and improve areas of weakness. An AEA may respond to the accreditation team’s report by providing factual information concerning its services to the board.

ITEM 19. Amend subrule 72.11(4) as follows:

72.11(4) State board consideration of accreditation Accreditation. All AEAs shall be deemed accredited upon the date of implementation of these rules. The board shall determine whether an AEA’s programs and services shall remain accredited. Approval Accreditation of an AEA’s programs and services AEA by the board shall be based on the recommendation of the director after study of the factual and evaluative evidence on record about the standards and other requirements as described in this chapter and based upon the timely submission of information required by the department on forms provided by the department. If, at any time, the board determines that an AEA has not met all standards and other requirements, the board shall require the AEA to address the deficiencies.

a. Accreditation granted status. Continuation of accreditation, if granted, shall be for a term of three years; however, approval for a lesser term may be granted by the board if it determines conditions so warrant. After completion of the comprehensive site visit under rule 281—72.11(273), the board shall grant continuation of accreditation if all standards and other requirements are met. If the board determines that an AEA has not met all standards and other requirements, the board shall grant conditional accreditation to the agency.

b. Accreditation denied or conditional Conditional accreditation. If the board denies accreditation or grants conditional accreditation, the department shall notify the administrator of the AEA, and each member of the board of directors of the AEA, and the schools served by the AEA within 15 days. The notice shall contain a description of the accreditation deficiencies. areas in which improvement or changes are essential for approval. The AEA shall be given the opportunity to present factual information concerning its services at the next regularly scheduled meeting of the board.

c. Remediation plan. Upon denial of accreditation or the granting of conditional accreditation by the board, the director, in cooperation with the board of directors of the AEA, shall establish a remediation plan. The remediation plan shall describe how the AEA will correct deficiencies to meet accreditation standards and shall establish a timeline and deadline date for correction of the deficiencies. The remediation plan is subject to the approval of the board. Upon approval by the board, the AEA shall send copies of the remediation plan to the schools served by the AEA. The AEA shall remain conditionally accredited during the implementation of the remediation plan.

d. Implementation of remediation plan. At intervals prescribed in the remediation plan or at the request of the director, the accreditation team shall revisit the AEA and shall determine whether the deficiencies in the accreditation standards are being or have been corrected and shall make a report and recommendation to the director and the board. The board shall review this report and recommendations and shall determine whether the deficiencies have been corrected.

e. Failure to correct deficiencies. If the deficiencies have not been corrected within the time stipulated in the remediation plan, the board shall remove accreditation of the deficient programs and services agency. At the hearing before the board, the AEA may be represented by counsel and may present evidence. The board may provide for the hearing to be recorded or reported. If requested by the AEA at least 10 days before the hearing, the board shall provide for the hearing to be recorded or reported at the expense of the AEA. Within 30 days after the hearing, the board shall render a written decision approving or removing the accreditation. Action by the board at this time is final agency action for the purposes of Iowa Code chapter 17A. The department shall notify the administrator of the AEA, each member of the board of directors of the AEA, and the schools and school districts served by the AEA of the decision of the board.

f. Required response to removal of accreditation. After removal of accreditation of the agency, The the AEA board of directors shall take one of the following actions within 60 days after removal of accreditation: make provisions for the continuation of services to LEAs subject to approval by the state board of education.

Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby gives Notice of Intended Action to amend Chapter 79, “Standards for Practitioner Preparation Programs,” Iowa Administrative Code.

These amendments will separate the rules for teacher preparation programs from the rules for administrator preparation programs.

No waiver provision is included because the Board of Education has adopted agencywide waiver rules.

Any interested person may submit oral or written suggestions or comments on or before May 8, 2001, by addressing them to Sandra Renegar, Consultant, Department of Education, Grimes State Office Building, Des Moines, Iowa 50319–0146 or by telephoning (515)281–3427.

There will be a public hearing on May 8, 2001, at 1 p.m. in Conference Room 3 North, Grimes State Office Building, Des Moines, Iowa, at which time persons may present their views orally and in writing.

These amendments are intended to implement Iowa Code sections 256.7, 256.16 and 272.25(1).

The following amendments are proposed.

ITEM 1. Amend 281—Chapter 79, title, as follows:

CHAPTER 79
STANDARDS FOR PRACTITIONER AND ADMINISTRATOR PREPARATION PROGRAMS
(Effective August 31, 2001)

ITEM 2. Amend rule 281—79.1(256) as follows:

281—79.1(256) General statement. Programs of practitioner and administrator preparation leading to licensure in Iowa are subject to approval by the state board of education, as provided in Iowa Code chapter 256. All programs having accreditation on August 31, 2001, are presumed accredited unless or until the state board takes formal action to remove accreditation. All administrator preparation programs must submit program documentation between August 31, 2001, and August 31, 2002, for approval of administrator preparation programs under these rules. Commencing August 31, 2001, all program approval evaluations will be conducted under these rules.

ITEM 3. Amend rule 281—79.2(256) as follows:

281—79.2(256) Definitions. For purposes of clarity, the following definitions are used throughout the chapter:

“Administrator candidates” means individuals who are enrolled in preparation programs leading to administrator licensure.

“Cooperating teachers” means classroom teachers who provide guidance and supervision to teacher candidates during the candidates’ field experiences in the schools.

“Department” means department of education.

“Director” means director of education.

“Institution” means a college or university in Iowa offering practitioner or administrator preparation or an organization offering administrator preparation and seeking state board approval of its practitioner or administrator preparation program(s).

“INTASC” means Interstate New Teacher Assessment and Support Consortium, the source of national standards for beginning teachers.

“ISLLC” means Interstate School Leadership and Leaders and Licensure Consortium, the a source of national standards for school administrators.

“Practitioner candidates” means individuals who are enrolled in practitioner preparation programs leading to licensure as teachers, administrators or other professional school personnel that require a license issued by the board of educational examiners.

“Practitioner preparation programs” means the programs of practitioner preparation leading to licensure of teachers, administrators, and other professional school personnel.

“Program” means a specific field of specialization leading to a specific endorsement.

“State board” means Iowa state board of education.

“Teacher candidates” means individuals who are enrolled in practitioner preparation programs leading to teacher licensure.

“Unit” means the organizational entity within an institution with the responsibility of administering the practitioner or administrator preparation program(s) program, or both.

ITEM 4. Amend rule 281—79.3(256) as follows:

281—79.3(256) Institutions affected. All Iowa colleges and universities or organizations engaged in the preparation of practitioners or administrators and seeking state board approval of their programs (hereinafter institutions) shall meet the standards contained in this chapter.

ITEM 5. Amend rule 281—79.4(256) as follows:

281—79.4(256) Criteria for Iowa practitioner preparation programs. Each institution seeking approval of its programs of practitioner or administrator preparation shall file evidence of the extent to which it meets the standards contained in this chapter by means of a written self–evaluation report and an evaluation conducted by the department. After the state board has approved the practitioner or administrator preparation programs filed by an institution, students who complete the programs and are recommended by the authorized official of that institution will be issued the appropriate license and endorsement(s).

ITEM 6. Amend rule 281—79.5(256), introductory paragraph, as follows:

281—79.5(256) Approval of programs. Approval of institutions’ practitioner or administrator preparation programs by the state board shall be based on the recommendation of the director after study of the factual and evaluative evidence on record about each program in terms of the standards contained in this chapter.

ITEM 7. Amend rule 281—79.6(256) as follows:

281—79.6(256) Visiting teams. Upon application or reapplication for approval, a team shall visit each institution for evaluation of its practitioner or administrator preparation program. The membership of the team shall be selected by the practitioner preparation and licensure bureau with the concurrence of the institution being visited. The team may include faculty members of other practitioner or administrator preparation institutions within or outside the state; personnel from elementary and secondary schools, to include administrators or classroom practitioners; personnel of the state department of education; and representatives from professional education organizations. Each team member should have appropriate competencies, background, and experiences to enable the member to contribute to the evaluation visit. The expenses for the visiting team shall be borneby the institution.

ITEM 8. Amend rule 281—79.7(256) as follows:

281—79.7(256) Periodic reports. Institutions placed on the approved programs list may be asked to make periodic reports upon request of the department which shall provide basic information necessary to keep records of each practitioner or administrator preparation program up to date and to provide information necessary to carry out research studies relating to practitioner or administrator preparation.

ITEM 9. Amend rule 281—79.8(256) as follows:

281—79.8(256) Reevaluation of practitioner or administrator preparation programs. Every five years or at any time deemed necessary by the director, an institution shall file a written self–evaluation of its practitioner or administrator preparation programs to be followed by a team visit. Any action for continued approval or rescission of approval shall be approved by the state board.

ITEM 10. Amend rule 281—79.9(256) as follows:

281—79.9(256) Approval of program changes. Upon application by an institution, the director is authorized to approve minor additions to, or changes within, the curricula of an institution’s approved practitioner or administrator preparation program. When an institution proposes a revision which exceeds the primary scope of its programs, the revisions shall become operative only after having been approved by the state board.

ITEM 11. Amend subrule 79.10(1) as follows:

79.10(1) The professional education unit shall have primary responsibility for all programs offered at the institution for the initial and continuing preparation of teachers, administrators and other professional school personnel.

ITEM 12. Amend subrule 79.10(4) as follows:

79.10(4) Practitioner and administrator candidates’ and faculty’s access to books, journals, and electronic information shall support teaching and scholarship.

ITEM 13. Rescind subrule 79.10(8).

ITEM 14. Amend rule 281—79.12(256), catchwords, as follows:

ITEM 15. Amend subrule 79.13(4) as follows:

79.13(4) Clinical practice for teacher, administrator and other professional school personnel candidates shall support the development of knowledge, dispositions, and skills that are identified in the Iowa board of educational examiners’ licensure standards, the unit’s framework for preparation of effective practitioners, and standards from INTASC, ISLLC, or other national professional organizations as appropriate for the licenses sought by candidates.

ITEM 16. Amend subrule 79.14(1) as follows:

79.14(1) Candidate Practitioner candidate knowledge and competence.

a. Candidates for teacher, administrator and other professional education personnel roles in schools shall be expected to develop the knowledge, skills, and dispositions identified by the profession and reflected in the national guidelines for the appropriate field, including methods of teaching with an emphasis on the subject area and grade level endorsement sought.

b. Alignment shall exist between the unit’s expectations for content, performance, and dispositions, content and pedagogy identified by national professional organizations, Iowa board of educational examiners’ licensure standards, national advanced certification, educational leadership, and others other standards appropriate for specific areas.

c. to h. No change.

i. Administrator candidates shall develop the dispositions, knowledge, and performance expectations of the ISLLC standards embedded in the requirements for an Iowa administrator license at a level appropriate for a novice administrator.

j. Teacher, administrator, and other professional school personnel candidates shall demonstrate their dispositions and knowledge related to diversity as they work with student populations and communities.

k. and l. No change.

ITEM 17. Amend subrule 79.14(2) as follows:

79.14(2) Candidate Practitioner candidate assessment and unit planning and evaluation.

a. The performance assessment system for teacher, administrator and other professional school personnel candidates shall be an integral part of the unit’s planning and evaluation system.

b. Performance of teacher, administrator and other professional school personnel candidates shall be measured against national professional standards, state licensure standards, and the unit’s learning outcomes.

c. Multiple criteria and assessments shall be used for admission at both graduate and undergraduate levels to identify teacher, administrator and other professional school personnel candidates with potential for becoming education practitioners.

d. The teacher candidate performance system shall include the administration of a basic skills test with program admission denied to any applicants failing to achieve the institution’s designated criterion score.

e. Information on performance of teacher, administrator and other professional school personnel candidates shall be drawn from multiple assessments, including, but not limited to, institutional assessment of content knowledge, professional knowledge and its application, pedagogical knowledge and its application; teaching and other school personnel performance and the effect on student learning, as candidates work with students, teachers, parents, and professional colleagues in school settings; and follow–up studies of graduates and employers.

f. The design and implementation of the assessment system shall include all stakeholders associated with the unit and its practitioner preparation activities.

g. The unit’s assessment system shall:

(1) Provide description of stakeholders’ involvement in system development.

(2) Provide evidence that the assessment system reflects both the institution’s mission and the unit’s framework for preparation of effective teachers, administrators and other professional school personnel.

(3) Include a coherent, sequential assessment system for individual practitioner candidates that shall:

1. Provide evidence that the unit and Iowa licensure standards are shared with teacher, administrator and other professional school personnel candidates.

2. Utilize, for both formative and summative purposes, a range of performance–based assessment strategies throughout the program that shall provide teacher, administrator and other professional school personnel candidates with ongoing feedback about:

• What performance of teacher, administrator and other professional school personnel candidates is being assessed/measured. Examples include preentry understandings, skills and dispositions, including professional and pedagogical and content knowledge, teaching abilities and dispositions, leadership abilities and dispositions, and effect on student learning.

• How performance of teacher, administrator and other professional school personnel candidates is being assessed/measured. Examples include a specified grade point average at preentry, standardized test scores, authentic assessments of content and professional studies, and authentic assessments of teaching and leadership abilities.

3. Have multiple summative decision points. Examples include admission to professional education, after completing introductory courses; prior to, during, and upon completion of student teaching/internship; and beginning performance on the job.

4. Clearly document teacher, administrator and other professional school personnel candidates’ attainment of the unit and the board of educational examiners’ licensure standards by providing evidence of:

• Content knowledge via multiple measures. Examples include content tests, lesson plans showing representation of knowledge structures, ability to apply principles of the discipline to problem solving in the classroom, written essays on content, evidence of being able to represent classroom/school problems in terms of abstract principles of the discipline.

• Professional and pedagogical knowledge via multiple measures. Examples include core performance tasks such as analyzing a child’s progress on learning and development and instruction using a case study of a child; designing a curriculum unit; analyzing a curriculum case study; analyzing an example of teaching as presented on video clip or teacher candidate’s own teaching, including an assessment on student learning; evaluating examples of performance of a range of school district and area education agency personnel; analyzing student work and learning over time; assessing feedback given by teachers to students; communicating with parents and the community; developing a school vision based on assessment data related to student learning; analyzing a budget plan; and other measures appropriate to a given task.

• Effect on student learning and achievement via multiple measures. Examples include student work, lesson plans, scores on achievement tasks, feedback from cooperating teachers and administrators, scoring rubrics for determining levels of student accomplishment, and other measures appropriate to a given task.

5. Include scoring rubrics or criteria for determining levels or benchmarks of teacher, administrator and other professional school personnel candidate accomplishment.

6. Demonstrate credibility such as reliability and validity of both the overall assessment system and the instruments being used.

(4) Document the quality of programs through the collective presentation of assessment data related to performance of teacher, administrator and other professional school personnel candidates and demonstrate how the data are used for continuous program improvement. This shall include:

1. Evidence of evaluative data collected by the department from teachers, administrators and other professional school personnel who work with the unit’s candidates. The department shall report this data to the unit.

2. Evidence of evaluative data collected by the unit through follow–up studies of graduates and their employers.

(5) Demonstrate how the information gathered via the individual practitioner candidate assessment system is utilized to refine and revise the unit’s framework and programs’ goals, content and delivery strategies.

(6) Describe how the assessment system is managed.

(7) Explain the process for reviewing and revising the assessment system.

h. An annual report including a composite of evaluative data collected by the unit shall be submitted to the bureau of practitioner preparation and licensure by September 30 of each year.

ITEM 18. Adopt the following new rules:

79.15(1) The collective competence and background of the total administrator preparation faculty shall reflect a balance of theory, experience, and knowledge appropriate to the administrator preparation programs being offered.

79.15(2) Faculty members shall provide evidence of continuing and significant involvement with PK–12 schools.

79.15(3) Faculty members shall provide evidence of regular and significant collaboration with colleagues in the professional education unit and other units in the institution, Iowa department of education, area education agencies, and professional associations as well as community representatives.

79.15(4) The work climate within the unit shall promote intellectual vitality, including best teaching practice, scholarship and service among faculty.

79.15(5) Faculty shall be engaged in scholarly activities that relate to teaching, learning, leadership or administrator preparation.

79.15(6) Policies and assignments shall allow faculty to be involved effectively in teaching, scholarship, and service.

79.15(7) Part–time faculty, when employed, shall be identified and shall meet the requirements for appointment as full–time faculty or be employed to fill a need for staff to support instruction.

79.15(8) Full– and part–time faculty shall provide evidence of professional growth toward remaining current with research, issues, and trends.

79.15(9) The unit shall administer a systematic and comprehensive evaluation system and professional development activities to enhance the teaching competence and intellectual vitality of the professional education unit.

79.16(1) Administrator candidates shall study about and practice in settings that include diverse populations, students with disabilities, and students of different ages.

79.16(2) Clinical practice for administrator candidates shall support dispositions and the development of knowledge and skills that are identified in the Iowa board of educational examiners’ licensure standards, the unit’s framework for preparation of effective administrators, and standards from ISLLC or other national professional organizations as appropriate for the licenses sought by candidates.

79.16(3) Clinical practice for candidates shall include clearly stated expectations that tie the experiences to coursework.

79.16(4) Environments for clinical practice shall support learning in context, including:

a. Scheduling and use of time and resources to allow candidates to participate with administrators and other practitioners and learners in the school setting.

b. Administrator candidate learning that takes place in the context of providing high quality instructional programs for children.

c. Opportunities for administrator candidates to observe and be observed by others and to engage in discussion and reflection on practice.

d. The involvement of administrator candidates in activities directed at the improvement of teaching and learning.

79.16(5) School administrators and institution faculty shall share responsibility for administrator candidate learning, including, but not limited to, planning and implementing curriculum and teaching and supervision of the clinical program.

79.16(6) School administrators and institution faculty shall jointly provide quality clinical experiences for administrator candidates. Accountability for these experiences shall be demonstrated through:

a. Jointly defined qualifications for administrator candidates entering clinical practice.

b. Selection of institution faculty and school administration members who demonstrate skills, knowledge, and dispositions of highly accomplished practitioners.

c. Selection of school administrators and institution faculty members who are prepared to mentor and supervise administrator candidates.

d. Training and support for school administrators who mentor and supervise administrator candidates.

e. Joint evaluation of administrator candidates by the cooperating administrator(s) and institution supervisor.

79.16(7) The institution shall enter into a written contract with the cooperating school districts that provide field experiences, including administrator internships.

79.17(1) Candidate knowledge and competence.

a. Candidates for administrator roles in schools shall be expected to support dispositions and develop the knowledge and skills identified by the profession and reflected in the Iowa Standards for School Leaders embedded in the requirements for an Iowa administrator license at a level appropriate for a novice administrator.

b. Alignment shall exist between the administrator preparation program’s expectations for content, performance, and dispositions, Iowa board of educational examiners’ licensure standards, Iowa Standards for School Leaders, educational leadership, and other standards appropriate for specific areas.

c. Administrator candidates shall demonstrate their knowledge of:

(1) Administration, supervision, and evaluation for appropriate levels of schools.

(2) Curriculum development and management for appropriate levels of schools.

(3) Adult learning theory and its impact on professional development.

(4) Human growth and development for children in appropriate levels of schools.

(5) Family support systems, factors which place families at risk, child care issues, and home–school relationships and interactions designed to promote parent education, family involvement, and interagency collaboration for appropriate levels of schools.

(6) School law and legislative and public policy issues affecting children and families for appropriate levels of schools.

(7) Evaluator approval requirements.

d. Administrator candidates shall demonstrate their dispositions and knowledge related to diversity as they work with faculty, student populations and communities.

e. Administrator candidates shall demonstrate competency in:

(1) Facilitating the development, articulation, implementation, and stewardship of a vision of learning that is shared and supported by the school community.

(2) Advocating, nurturing, and sustaining a school culture and instructional program conducive to student learning and staff professional growth.

(3) Ensuring management of the organization, operations, and resources for a safe, efficient, and effective learning environment.

(4) Collaborating with families and community members, responding to diverse community interests and needs, and mobilizing community resources.

(5) Acting in an ethical manner with integrity and fairness.

(6) Understanding, responding to, and influencing the larger political, social, economic, legal and cultural context.

f. Administrator candidates shall understand what elements are needed to effectively integrate technology to enhance learning.

79.17(2) Administrator candidate assessment and administrator preparation program planning and evaluation.

a. The performance assessment system for administrator candidates shall be an integral part of the administrator preparation program’s planning and evaluation system.

b. Multiple criteria and assessments shall be used for admission to identify administrator candidates with potential for becoming school leaders.

c. Assessments of administrator candidates’ performance shall be aligned with ISLLC standards, ISSL, state licensure standards, and the administrator preparation program’s learning outcomes.

d. Information on performance of administrator candidates shall be drawn from multiple assessments, including, but not limited to, institutional assessment of content knowledge, professional knowledge and its application, pedagogical knowledge and its application; teaching and other school personnel performance and the effect on student learning, as candidates work with students, teachers, parents, and professional colleagues in school settings; and follow–up studies of graduates and employers.

e. The design and implementation of the assessment system shall include all stakeholders associated with the administrator preparation program’s activities.

f. The administrator preparation program’s assessment system shall:

(1) Provide description of stakeholders’ involvement in system development.

(2) Provide evidence that the assessment system reflects both the institution’s mission and the administrator preparation program’s framework for preparation of effective administrators.

(3) Include a coherent, sequential assessment system for individual administrator candidates that shall:

1. Provide evidence that the unit and Iowa licensure standards are shared with administrator candidates.

2. Utilize, for both formative and summative purposes, a range of performance–based assessment strategies throughout the program that shall provide administrator candidates with ongoing feedback about:

• What performance of administrator candidates is being assessed or measured.

• How performance of administrator candidates is being assessed or measured.

3. Require administrator candidates to demonstrate and provide evidence of what they have learned.

4. Have multiple summative decision points.

5. Clearly document administrator candidates’ attainment of the unit and the board of educational examiners’ licensure standards by providing evidence of:

• Content knowledge via multiple measures.

• Professional and pedagogical knowledge via multiple measures.

• Collection and analysis of data related to student achievement via multiple measures.

6. Include scoring rubrics or criteria for determining levels or benchmarks of administrator candidate accomplishment.

7. Demonstrate credibility of both the overall assessment system and the instruments being used.

(4) Document the quality of programs through the collective presentation of assessment data related to performance of administrator candidates and demonstrate how the data are used for continuous program improvement. This shall include:

1. Evidence of evaluative data collected by the department from teachers, administrators and other professional school personnel who work with the administrator preparation program’s candidates. The department shall report this data to the unit.

2. Evidence of evaluative data collected by the unit through follow–up studies of graduates and their employers.

(5) Demonstrate how the information gathered via the individual administrator candidate assessment system is utilized to refine and revise the unit’s framework and programs’ goals, content and delivery strategies.

(6) Describe how the assessment system is managed.

(7) Explain the process for reviewing and revising the assessment system.

g. An annual report including a composite of evaluative data collected by the administrator preparation program shall be submitted to the bureau of practitioner preparation and licensure by September 30 of each year.

Pursuant to the authority of Iowa Code subsection 239B.4(4), the Department of Human Services proposes to amend Chapter 40, “Application for Aid,” Chapter 41, “Granting Assistance,” Chapter 46, “Overpayment Recovery,” and Chapter 93, “PROMISE JOBS Program,” appearing in the Iowa Administrative Code.

These amendments:

1. Implement hardship exemption criteria that allow for Family Investment Program (FIP) assistance beyond the 60–month lifetime limit for families with hardship circumstances. “Hardship” is defined as the circumstance that is preventing the family from being self–supporting. Current rules regarding the 60–month FIP limit currently at 441— subrule 41.25(7) are rescinded and replaced with the new hardship exemption rule 441—41.30(239B) to allow for a better understanding of the rules’ interrelationship.

On August 22, 1996, President Clinton signed into law Public Law 104–193, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. The new law replaced the Aid to Families with Dependent Children (AFDC) program with a new block grant program to states, called Temporary Assistance for Needy Families (TANF). TANF provides federal funding to states for a number of assistance programs, including Iowa’s Family Investment Program (FIP) and the PROMISE JOBS work and training program.

As a result of Public Law 104–193, all states must limit TANF–funded cash assistance to a 60–month lifetime limit beginning with the date that states implement TANF. However, federal law and regulations allow states the option of extending TANF–funded assistance beyond 60 months for families with hardship circumstances.

Only TANF funding for the Family Investment Program meets the federal definition of “assistance” subject to the 60–month limit. Therefore, in Iowa the 60–month limit applies only to assistance from the Family Investment Program (FIP).

When the adult or minor parent head of household has received FIP for the family for 60 months, the entire family is ineligible even if the parent is not included in the FIP grant. The same is true when the family includes a stepparent who is on the FIP grant.

EXCEPTIONS: The 60–month limit does not apply to families headed by parents who receive Supplemental Security Income (SSI). Also, FIP assistance received by a nonparental specified relative who is not on the grant with the child is not counted. When the child lives with a nonparental specified relative and the latter is on the FIP grant with the child, only the relative becomes ineligible at the end of the 60–month period. FIP may continue for the child.

Iowa implemented TANF in January 1997. Thus, families who have received FIP assistance continuously since January 1997 can no longer receive FIP after December 2001 unless they meet the criteria for a hardship exemption and are earnestly working toward becoming self–supporting as described in these rules.

The goal of TANF is that families become self–sufficient within the 60–month lifetime limit. Realizing that this goal is not attainable for all families, TANF allows states the option of providing cash assistance beyond 60 months to families in hardship conditions. This assistance is not intended as an automatic extension of the 60–month limit but is intended for families that are faced with barriers beyond their control that impact their ability to become self–sufficient.

In accordance with federal TANF regulations, a hardship exemption does not begin until after a family’s 60–month FIP period has ended. A hardship exemption is limited to six consecutive calendar months. Families may apply for and be granted more than one hardship exemption if so warranted by their circumstances.

A constant family support team appointed by the regional administrator and consisting of income maintenance, PROMISE JOBS, service and, when indicated, Family Development and Self–Sufficiency (FaDSS) program staff is responsible for determining eligibility of a family’s request for a hardship exemption. Prior to approval of the request, the family is required to meet with the team and provide supporting evidence of the particular hardship.

Families granted a hardship exemption are required to participate in PROMISE JOBS and develop a six–month Family Investment Agreement (FIA) that directly addresses their particular hardship barriers. The six–month FIA will outline specific steps to enable the family to make incremental progress toward overcoming the particular barrier. The family must participate to its maximum potential in activities that are expected to result in self–sufficiency. When the family fails to sign the six–month FIA, or fails to follow the terms of the FIA, a limited benefit plan shall result as in any other situation when a family fails to sign or follow the terms of a required FIA.

NOTE: Use of TANF funds for cash assistance orPROMISE JOBS services for nonqualified aliens whose classification is not listed at 8 United States Code (U.S.C.) Section 1641 is prohibited. As a result, nonqualified aliens cannot participate in PROMISE JOBS. Therefore, families headed by parents whose alien classification is not listed at8 U.S.C. Section 1641 are not eligible for FIP beyond the 60–month limit.

2. Remove language that makes FIP reinstatement without a new application optional when necessary information is not received by the third working day before the effective date of cancellation. These amendments require reinstatement of FIP assistance without a new application so long as all necessary information is provided before the effective date of cancellation and eligibility can be reestablished.

The FIP reinstatement rules are changed to match food stamp policy. This change will result in reduced program complexity, improved program error rates, and less confusion for assistance families. This change also prevents interruption in FIP assistance and eliminates cumbersome reapplication procedures for families who provide necessary eligibility information before the cancellation date.

3. Specify the date of application and the effective date of FIP assistance for qualified alien family members after their five–year period of ineligibility required by federal law has ended.

4. Remove obsolete references to Job Training Partnership Act (JTPA) and replace the references with Workforce Investment Act (WIA) as appropriate. As a result of the Workforce Investment Act which was signed into law August 7, 1998, JTPA was closed out and transitioned to WIA.

These amendments do not provide for waivers in specific situations. Eligibility for a hardship exemption is determined based on the individual family’s circumstances and the decision is appealable.

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 May 9, 2001.

Oral presentations may be made by persons appearing at the following meetings. Written comments will also be accepted at these times.

Cedar Rapids – May 10, 2001 10 a.m.

Cedar Rapids Regional Office

Iowa Building – Seventh Floor Conference Room

411 Third Street S.E.

Cedar Rapids, Iowa 52401

Council Bluffs – May 10, 2001 9 a.m.

Administrative Conference Room

Council Bluffs Regional Office

417 E. Kanesville Boulevard

Council Bluffs, Iowa 51501

Davenport – May 10, 2001 10 a.m.

Davenport Area Office

Bicentennial Building – Fifth Floor Conference Room

428 Western

Davenport, Iowa 52801

Des Moines – May 10, 2001 10 a.m.

Des Moines Regional Office

City View Plaza

Conference Room 104

1200 University

Des Moines, Iowa 50314

Mason City – May 10, 2001 10 a.m.

Mason City Area Office

Mohawk Square, Liberty Room

22 North Georgia Avenue

Mason City, Iowa 50401

Ottumwa – May 10, 2001 10 a.m.

Ottumwa Area Office

Conference Room 3

120 East Main

Ottumwa, Iowa 52501

Sioux City – May 10, 2001 1 p.m.

Sioux City Regional Office

Fifth Floor

520 Nebraska Street

Sioux City, Iowa 51101

Waterloo – May 10, 2001 10 a.m.

Waterloo Regional Office

Pinecrest Office Building – Conference Room 420

1407 Independence Avenue

Waterloo, Iowa 50703

Any persons who intend to attend a public hearing and have special requirements such as hearing or vision impairments should contact the Bureau of Policy Analysis at (515) 281–8440 and advise of special needs.

These amendments are intended to implement Iowa Code chapter 239B and 45 CFR Section 264.1.

The following amendments are proposed.

ITEM 1. Amend subrule 40.22(5) as follows:

Amend paragraph “a” as follows:

a. Assistance shall be reinstated without a new application when all necessary information is provided at least three working days before the effective date of cancellation and eligibility can be reestablished, or the family meets the conditions described at 441—subparagraph 41.30(3)“d”(9).

Rescind and reserve paragraph “b.”

ITEM 2. Amend rule 441—40.23(239B) as follows:

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

A new application is not required when adding a person to an existing eligible group. This person is considered to be included in the application that established the existing eligible group. However, in these instances, the date of application to add a person is the date the change is reported. When it is reported that a person is anticipated to enter the home, the date of application to add the person shall be the date of the report.

In those instances where a person previously excluded from the eligible group as described at 441—subrule 41.27(11) is to be added to the eligible group, the date of application to add the person is the date the person indicated willingness to cooperate.

EXCEPTIONS: When adding a person who was previously excluded from the eligible group for failing to comply with 441—subrule 41.22(13), the date of application to add the person is the date the social security number or proof of application for a social security number is provided.

When adding a person who was previously excluded from the eligible group as described at 441—subrules 41.23(5), 41.25(5) and 46.28(2) and rule 441—46.29(239B), the date of application to add the person is the first day after the period of ineligibility has ended.

When adding a person who was previously excluded from the eligible group as described at 441—subrule 41.24(8), the date of application to add the person is the date the person signs a family investment agreement.

This rule is intended to implement Iowa Code section 239B.2.

ITEM 3. Amend rule 441—40.26(239B) as follows:

441—40.26(239B) Effective date of grant. New approvals shall be effective as of the date the applicant becomes eligible for assistance, but in no case shall the effective date be earlier than seven days following the date of application. When an individual is added to an existing eligible group, the individual shall be added effective as of the date the individual becomes eligible for assistance, but in no case shall the effective date be earlier than seven days following the date the change is reported. When it is reported that a person is anticipated to enter the home, the effective date of assistance shall be no earlier than the date of entry or seven days following the date of report, whichever is later.

When the change is timely reported as described at subrule 40.27(4), a payment adjustment shall be made when indicated. When the individual’s presence is not timely reported as described at subrule 40.27(4), excess assistance issued is subject to recovery.

In those instances where a person previously excluded from the eligible group as described at 441—subrule 41.27(11) is to be added to the eligible group, the effective date of eligibility shall be seven days following the date the person indicated willingness to cooperate. However, in no instance shall the person be added until cooperation has actually occurred.

EXCEPTIONS: When adding a person who was previously excluded from the eligible group for failing to comply with 441—subrule 41.22(13), the effective date of eligibility shall be seven days following the date that the social security number or proof of application for a social security number is provided.

When adding a person who was previously excluded from the eligible group as described at 441—subrules 41.23(5), 41.25(5) and 46.28(2) and rule 441—46.29(239B), the effective date of eligibility shall be seven days following the date that the period of ineligibility ended.

When adding a person who was previously excluded from the eligible group as described at 441—subrule 41.24(8), the effective date of eligibility shall be seven days following the date the person signs a family investment agreement. In no case shall the effective date be within the six–month ineligibility period of a subsequent limited benefit plan as described at 441—paragraph 41.24(8)“a.”

This rule is intended to implement Iowa Code section 239B.3.

ITEM 4. Amend rule 441—41.24(239B) as follows:

Amend subrule 41.24(4) by relettering paragraph “b” as paragraph “c,” and adopting the following new paragraph “b”:

b. While the eligibility decision is pending, applicants who must qualify for a hardship exemption before approval of FIP shall be treated in accordance with subrule 41.30(3).

Amend subrule 41.24(9), paragraph “b,” introductory paragraph, as follows:

b. Conciliation for volunteers shall be provided by a A conciliation unit established by the PROMISE JOBS local service delivery area shall provide conciliation for volunteers. PROMISE JOBS staff from DWD shall conciliate in cases decided by JTPA workers and PROMISE JOBS staff from JTPA shall conciliate in cases decided by DWD workers. The bureau of refugee services shall arrange with PROMISE JOBS staff of DWD and JTPA to provide conciliation services when the need arises. If the local service delivery area has developed interagency teams of PROMISE JOBS staff, teams shall be assigned to conciliate in cases decided by other teams.

ITEM 5. Rescind and reserve subrule 41.25(7).

ITEM 6. Amend subrule 41.27(9), paragraph “a,” subparagraph (4), as follows:

(4) Eligibility for the family investment program for any month or partial month before the month of decision shall be determined only when there is eligibility in the month of decision. The family composition for any month or partial month before the month of decision shall be considered the same as on the date of decision. In determining eligibility and the amount of the assistance payment for any month or partial month preceding the month of decision, income and all circumstances except family composition in that month shall be considered in the same manner as in the month of decision. When the eligibility determination is delayed until the third initial month or later and payment is being made for the preceding months, the payment for the month following the initial two months shall be based, retrospectively, on income and all circumstances except family composition in the corresponding budget month. When the applicant is eligible for some, but not all, months of the application period due to the time limit described at subrule 41.30(1), family investment program eligibility shall be determined for the month of decision first, then the immediately preceding month, and so on until the time limit has been reached.

ITEM 7. Adopt the following new rule 441— 41.30(239B):

41.30(1) Sixty–month limit. Assistance shall not be provided to a FIP applicant or recipient family that includes an adult who has received assistance for 60 calendar months under any state program in Iowa or in another state that is funded by the Temporary Assistance for Needy Families (TANF) block grant. The 60–month period need not be consecutive. An “adult” is any person who is a parent of the FIP child in the home, or included as an optional member under subparagraphs 41.28(1)“b”(1), (2) and (3). In two–parent households, the 60–month limit is determined when either parent has received assistance for 60 months. “Assistance” shall include any month for which the adult receives a FIP grant. Assistance received for a partial month shall count as a full month.

41.30(2) Determining number of months.

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

(1) Assistance received even when the parent is excluded from the grant unless the parent, or both parents in a two–parent household, are supplemental security income (SSI) recipients.

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

b. When the parent, or both parents in a two–parent household, have received 60 months of FIP assistance and are subsequently approved for supplemental security income, FIP assistance for the children may be granted, if all other eligibility requirements are met.

c. When a minor parent and child receive FIP on the adult parent’s case and the adult parent is no longer eligible due to the 60–month limit on FIP assistance, the minor parent may reapply for FIP as a minor parent living with a self–supporting parent.

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

(1) A month of suspension.

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

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

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

e. The department shall not consider toward the 60–month limit months of assistance a parent or pregnant person received as a minor child and not as the head of a household or married to the head of a household. This includes assistance received for a minor parent for any month in which the minor parent was a child on the adult parent’s or the specified relative’s FIP case.

f. The department shall not consider toward the 60–month limit months of assistance received by an adult while living in Indian country (as defined in 18 United States Code Section 1151) or a Native Alaskan village where at least 50 percent of the adults were not employed.

41.30(3) Exception to the 60–month limit. A family may receive FIP assistance for more than 60 months as defined in subrule 41.30(1) if the family qualifies for a hardship exemption as described in this subrule. “Hardship” is defined as a circumstance that is preventing the family from being self–supporting. EXCEPTION: Families with an adult as defined in subrule 41.30(1) who is not a U.S. citizen or is not a qualified alien under 8 United States Code Section 1641 as described in subrule 41.23(5) are prohibited from receiving more than 60 months of FIP assistance.

Eligibility for the hardship exemption shall be determined on an individual family basis. A hardship exemption shall not begin until the adult in the family has received at least 60 months of FIP assistance.

a. Hardship exemption criteria. Circumstances that may lead to a hardship exemption may include, but are not limited to, the following:

(1) Domestic violence.

(2) Lack of employability.

(3) Lack of suitable child care as defined in 441—subrule 93.134(1).

(4) Chronic or recurring medical conditions or mental health issues, or a catastrophic accident or disease, when verified by a professional. The applicant or recipient shall follow a treatment plan to address the condition or issue.

(5) Housing situations that make it difficult or impossible to work.

(6) Substance abuse issues. A family requesting a hardship exemption due to substance abuse shall be required to obtain clinical assessment and follow an intensive treatment plan.

(7) Having a child whose circumstances require the parent to be in the home. This may include, but is not limited to, a child as defined in rule 441—170.1(234) or a child receiving child welfare, juvenile court or juvenile justice services. The safety of the child shall take precedence over the goal of self–sufficiency.

(8) Actively pursuing verification of a disability through the Social Security Administration.

(9) Other circumstances which prevent the family from being self–supporting.

b. Eligibility for a hardship exemption.

(1) Families may be eligible for a hardship exemption when circumstances prevent the family from being self–supporting. The hardship condition shall be a result of a past or current experience that is affecting the family’s current functioning. Current experience may include fear of an event that is likely to occur in the future. The definition of the hardship barrier relies upon the impact of the circumstances upon the family’s ability to leave FIP rather than the type of circumstances.

(2) Families determined eligible for more than 60 months of FIP shall make incremental steps toward overcoming the hardship and participate to their maximum potential in activities reasonably expected to result in self–sufficiency.

c. Requesting a hardship exemption.

(1) Families with adults as defined in subrule 41.30(1) who have or are close to having received 60 months of FIP assistance may request a hardship exemption. Requests for the hardship exemption shall be made on Form 470–3826, Request for FIP Beyond 60 Months. In addition, families that have received FIP for 60 months shall complete Form 470–0462 or Form 470–0466 (Spanish), Public Assistance Application, as described at rule 441—40.22(239B) as a condition for regaining FIP eligibility. Failure to provide the required application within ten days from the date of the county office’s request shall result in denial of the hardship request.

(2) In families that request FIP beyond 60 months, all adults as defined in subrule 41.30(1) shall sign the request. When the adult is incompetent or incapacitated, someone acting responsibly on the adult’s behalf may sign the request.

(3) Requests for a hardship exemption shall not be accepted prior to the first day of the family’s fifty–ninth month of FIP assistance. The date of the request shall be the date Form 470–3826 is received in any department of human services, PROMISE JOBS or family development and self–sufficiency (FaDSS) office.

(4) To receive more than 60 months of FIP assistance, families must be eligible for a hardship exemption and meet all other FIP eligibility requirements.

(5) When an adult as defined in subrule 41.30(1) who has received FIP for 60 months joins a recipient family that has not received 60 months of FIP assistance, eligibility shall continue only if the recipient family submits Form 470–3826 and is approved for a hardship exemption as described in subrule 41.30(3) and meets all other FIP eligibility requirements.

(6) When an adult as defined in subrule 41.30(1) joins a recipient family that is in an exemption period, the current exemption period shall continue, if the recipient family continues to meet all other eligibility requirements, regardless of whether the joining adult has received FIP for 60 months.

(7) When two parents who are in a hardship exemption period separate, the remainder of the exemption period, if there is a need, shall follow the parent who retains the current FIP case.

d. Determination of hardship exemption.

(1) A determination on the request shall be made as soon as possible, but no later than 30 days following the date Form 470–3826 is received in any department of human services, PROMISE JOBS or FaDSS office. A written notice of decision shall be issued to the family the next working day following a determination of eligibility or ineligibility for a hardship exemption.

The 30–day time standard shall apply except in unusual circumstances, such as when the county office and the family have made every reasonable effort to secure necessary information which has not been supplied by the date the time limit expired; or because of emergency situations, such as fire, flood or other conditions beyond the administrative control of the county office.

(2) When a Public Assistance Application is required to regain FIP eligibility, the 30–day time frame in rule 441— 40.25(239B) shall apply.

(3) A family support team appointed by the regionaladministrator shall determine eligibility for a hardshipexemption. The members of the family support team shallbe constant and shall consist of income maintenance, PROMISE JOBS, and service staff. When the family isparticipating in the FaDSS program, then FaDSS staff shall also be a part of the team.

(4) The family shall provide supporting evidence of the hardship barrier and the impact of the barrier upon their ability to leave FIP. The county office shall advise the applicant or recipient about how to obtain necessary documents. Upon request, the county office shall provide reasonable assistance in obtaining supporting documents when the family is not reasonably able to obtain the documents. The type of supporting evidence is dependent upon the circumstance that creates the hardship barrier.

(5) Examples of types of supporting evidence may include:

1. Court, medical, criminal, child protective services, social services, psychological, or law enforcement records.

2. Statements from professionals or other individuals with knowledge of the hardship barrier.

3. Statements from vocational rehabilitation or other job training professionals.

4. Statements from individuals other than the applicant or recipient with knowledge of the hardship circumstances. Written statements from friends and relatives alone are not sufficient to grant hardship status, but may be used to support other evidence.

5. Court, criminal, police records or statements from domestic violence counselors may be used to substantiate hardship. Living in a domestic violence shelter shall not automatically qualify an individual for a hardship exemption, but would be considered strong evidence.

(6) The county office shall notify the family in writing of additional information or verification that is required to verify the barrier and its impact upon the family’s ability to leave FIP. The family shall be allowed ten days to supplythe required information or verification. The ten–day period may be extended under the circumstances described in 441—subrule 40.24(1) or 441—paragraph 40.27(4)“c.” Failure to supply the required information or verification, or refusal by the family to authorize the county office to secure the information or verification from other sources, shall result in denial of the family’s request for a hardship exemption.

(7) Before approving a family’s hardship exemption request, the family support team shall meet face to face with the adult as defined in subrule 41.30(1). In two–parent families, both parents shall attend the meeting. When the adult is incompetent or incapacitated, someone acting responsibly on the adult’s behalf may attend for the adult. If the family has not already provided evidence supporting the hardship exemption request, the family shall bring the supporting evidence to the meeting.

(8) A decision on the hardship exemption shall be made when all supporting evidence is available and the team is able to reach consensus. If the team cannot reach consensus on the hardship exemption, income maintenance staff shall make the final decision.

(9) Recipients whose FIP assistance is canceled at the end of the sixtieth month shall be eligible for reinstatement as described at 441—subrule 40.22(5) when Form 470–3826 and all supporting evidence are received before the effective date of cancellation even if eligibility for a hardship exemption is not determined until after the effective date of cancellation.

(10) When Form 470–3826 and all supporting evidence are not received before the effective date of the FIP cancellation and a Public Assistance Application is required for the family to regain FIP eligibility, the effective date of assistance shall be no earlier than seven days from the date of application as described at rule 441—40.26(239B).

(11) Eligibility for a hardship exemption shall last for six consecutive calendar months. EXCEPTION: The six–month hardship exemption ends when FIP for the family is canceled for any reason and a public assistance application is required for the family to regain FIP eligibility. In addition, when FIP eligibility depends on receiving a hardship exemption, the family shall submit a new Form 470–3826. A new hardship exemption determination shall be required prior to FIP approval.

(12) FIP received for a partial month of the six–month hardship exemption period shall count as a full month.

(13) There is no limit on the number of hardship exemptions a family may receive over time.

e. Six–month family investment agreement (FIA). With the help of the family support team, families who receive a hardship exemption shall develop a six–month family investment agreement (FIA) as defined at rule 441—93.109(239B) to address the circumstances that are creating the barrier. Whenever possible, the FIA shall be developed at the time of the required face–to–face meeting described at subparagraph 41.30(3)“d”(7). The six–month FIA shall contain specific steps to enable the family to make incremental progress toward overcoming the barrier. Each subsequent hardship exemption shall require a new six–month FIA.

(1) PROMISE JOBS staff shall provide necessary supportive services as described in 441—Chapter 93 and shall monitor the six–month FIA. The family support team shall determine the methodology of monitoring the incremental steps toward progress. Periodic contacts by a member of the team shall be made with the family at least once a month. These contacts need not be in person. Time and attendance reports shall be required as specified at rule 441— 93.135(239B).

(2) The six–month FIA shall be renegotiated and amended under the circumstances described at 441—subrule 93.109(2).

(3) Any family that has been granted a hardship exemption and that does not sign the six–month FIA or does not follow the family’s six–month FIA will have chosen a limited benefit plan in accordance with 441—Chapters 41 and 93.

f. Any family that is denied a hardship exemption may appeal the decision as described in 441—Chapter 7.

This rule is intended to implement Iowa Code chapter 239B.

ITEM 8. Amend rule 441—46.21(239B), definition of “procedural error,” as follows:

“Procedural error” means a technical error which that does not in and of itself result in an overpayment. Procedural errors include:

Failure to secure a properly signed application at the time of initial application or reapplication.

Failure of the county office to conduct the face–to–face interviews described in 441—subrules 40.24(2), and 40.27(1), and 41.30(3).

Failure to request a Public Assistance Eligibility Report or a Review/Recertification Eligibility Document at the time of a monthly, semiannual, or annual review.

Failure of county office staff to cancel the family investment program when the client submits a Public Assistance Eligibility Report or a Review/Recertification Eligibility Document which is not complete as defined in 441—paragraph 40.27(4)“b.” However, overpayments of grants as defined above based on incomplete reports are subject to recoupment.

ITEM 9. Amend rule 441—93.103(239B) as follows:

441—93.103(239B) Contracts with provider agencies for provision of services. The department of human services shall contract with the department of workforce development to provide PROMISE JOBS and FIA services to FIP recipients. Services shall include orientation, assessment, job–seeking skills training, group and individual job search, job placement and job development, high school completion, adult basic education (ABE), general educational development (GED), and English as second language (ESL), vocational classroom training, postsecondary education including entrepreneurial training, PROMISE JOBS on–the–job training (OJT), work experience, unpaid community service, parenting skills training, life skills training, monitored employment, volunteer mentoring, FaDSS or other family development services, and referral for family planning counseling.

The bureau of refugee services shall provide the above services, to the extent compatible with resources available, to persons who entered the United States with refugee status.

ITEM 10. Amend rule 441—93.104(239B) as follows:

Amend subrule 93.104(3) as follows:

93.104(3) Applicants in a limited benefit plan who must complete significant contact with or action in regard to PROMISE JOBS for FIP eligibility to be considered, as described at 441—paragraphs 41.24(8)“a” and “d,” are eligible for expense allowances for the 20 hours of activity. Applicants are eligible for PROMISE JOBS services and allowances under the circumstances described at 441—subrule 41.30(3). However, PROMISE JOBS services and allowances are only available when it appears the applicant will otherwise be eligible for FIP.

Rescind and reserve subrule 93.104(6).

ITEM 11. Amend subrule 93.105(2) as follows:

93.105(2) Service upon referral. FIP applicants and participants who are referred to PROMISE JOBS shall initiate service for PROMISE JOBS orientation by contacting the appropriate PROMISE JOBS office within ten calendar days of the mailing date of the notice of FIP approval or within ten calendar days of notice that exempt status has been lostand FIA responsibility has begun, as required under 441— subrule 41.24(5).

PROMISE JOBS provider agencies shall schedule FIA orientation appointments at the earliest available times for FIP participants who contact the appropriate PROMISE JOBS office within the ten days except when the department exercises administrative authority to require prioritization of orientation services to ensure that specific groups receive services in order to achieve self–sufficiency in the shortest possible time, to meet federal minimum participation rate requirements and other TANF requirements. PROMISE JOBS staff may waive orientation services before writing an FIA when developing an FIA that meets the conditions of 441— paragraph 41.30(3)“e.”

Applicants who have chosen and are in a limited benefit plan are referred to PROMISE JOBS and must initiateservice by contacting the department or the appropriate PROMISE JOBS office as described at 441—subrule 41.24(1). The applicants who communicate the desire to engage in PROMISE JOBS activities shall be scheduled at the earliest available time to begin or resume the family investment agreement process.

ITEM 12. Amend rule 441—93.106(239B) as follows:

441—93.106(239B) Orientation for PROMISE JOBS and the FIA. Every FIP participant person who schedules and keeps an orientation appointment as described at subrule 93.105(2) shall receive orientation services.

93.106(1) Requirements of orientation. During orientation, each participant person shall receive a full explanation of the advantages of employment under the family investment program (FIP), services available under PROMISE JOBS, a review of participant rights and responsibilities under the FIA and PROMISE JOBS, a review of the LBP as described at 441—subrule 41.24(8), an explanation of the benefits of cooperation with the child support recovery unit, and an explanation of the other programs available through PROMISE JOBS, specifically the transitional Medicaid and child care assistance programs.

a. Each participant person shall sign Form WI–3305, Your Rights and Responsibilities, acknowledging that information described above has been provided.

b. Participants Orientation participants are required to complete a current workforce development registration, Form 60–0330, Application for Job Placement and/or Job Insurance, when requested by PROMISE JOBS staff.

c. No change.

d. The PROMISE JOBS worker shall meet with each orientation participant, or family if appropriate when two parents or children who are mandatory PROMISE JOBS participants are involved, to determine readiness to participate, establish expenses and a payment schedule and to discuss child care needs.

93.106(2) No change.

ITEM 13. Amend subrule 93.109(2), introductory paragraph, as follows:

93.109(2) FIA requirements. The Except when developing the six–month FIA described at 441—paragraph 41.30(3)“e,” the FIA shall be developed during the orientation and assessment process through discussion between the FIP participants and PROMISE JOBS staff of coordinating PROMISE JOBS provider agencies, using Form 470–3095, Family Investment Agreement, and Form 470–3096, FIA Steps to Achieve Self–sufficiency. The FIAs described at 441—paragraph 41.30(3)“e” may include orientation and assessment services.

ITEM 14. Amend rule 441—93.110(239B), introductory paragraph and first unnumbered paragraph, as follows:

441—93.110(239B) Arranging for services. Staff is responsible for providing or helping the participant to arrange for employment–oriented services, as required, to facilitate the registrants’ successful participation, including client assessment or case management, employment education, transportation, child care, referral for medical examination, and supportive services under the family development and self–sufficiency program described in 441—Chapter 165 or other family development programs, described in rule 441— 93.119(239B). PROMISE JOBS funds shall be used to pay costs of obtaining a birth certificate when the birth certificate is needed in order for the registrant to complete the employment service registration process described in rule 441— 93.106(239B). PROMISE JOBS funds may also be used to pay expenses for clients enrolled in JTPA Workforce Investment Act (WIA)–funded components when those expensesare allowable under these rules. Clients shall submit Form 470–0510, Estimate of Cost, to initiate allowances or change the amount of payment for expenses other than child care. Clients shall submit Form 470–2959, Child Care Certificate, to initiate child care payments or change the amount of child care payments. The caretaker, the provider and the worker shall sign Form 470–2959 before the provider is paid.

Payment for child care, if required for participation in any PROMISE JOBS component other than orientation, not specifically prohibited elsewhere in these rules, and not available from any other source, shall be provided for participants after service has been received as described at 441—Chapter 170.

ITEM 15. Amend subrule 93.111(1), paragraph “a,” subparagraph (4), as follows:

(4) Participants shall have the option of substituting for assessment I assessment information which they have completed with another agency or person such as, but not limited to, JTPA, WIA, Head Start, public housing authorities, child welfare workers, and family development services. Participants shall authorize PROMISE JOBS to obtain these assessment results by signing Form MH–2201–0 470–0429, Consent to Release or Obtain Information. To be used in place of assessment I, the assessment results must contain all or nearly all of the items from paragraph “a” above and must have been completed within the past 12 months.

ITEM 16. Amend subrule 93.129(2), introductory paragraph, as follows:

93.129(2) Conciliation period for volunteers. The purpose of the conciliation period is to identify and remove or resolve barriers to participation, to ensure that volunteer participants do not unknowingly lose their right to priority service, and to identify the steps that the participant and the PROMISE JOBS staff will take to ensure successful participation. Conciliation for volunteers shall be provided by a conciliation unit established by the PROMISE JOBS provider agencies in each local service delivery area. PROMISE JOBS staff from DWD shall conciliate decisions made by JTPA workers. PROMISE JOBS staff from JTPA shall conciliate DWD decisions. The bureau of refugee services shall arrange with PROMISE JOBS staff of DWD and JTPA to provide conciliation services when the need arises. If the local service delivery area assigns interagency teams, decisions by a team shall be conciliated by the other teams.

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

These amendments revise Medicaid policy regarding sanctions of persons who do not cooperate. The Health Care Financing Administration (HCFA) has informed the Department that the removal of a sanctioned individual from the household size is a Temporary Assistance for Needy Families (TANF) regulation and not a Medicaid regulation. These changes are necessary to bring the Department into compliance with HCFA regulations. The changes allow sanctioned individuals to remain a part of the Medicaid household for purposes of determining the eligibility of the other household members.

Currently, a client who does not cooperate with the Department (i.e., the Child Support Recovery Unit, Third Party Liability unit, or HIPP unit) is not eligible for Medicaid and is removed from the household size. However, the sanctioned individual’s income is still considered when determining eligibility of the remaining eligible group. This is also true for undocumented aliens and those individuals who do not have a social security number.

These amendments will allow the sanctioned adult, the undocumented adult alien and those adults who are ineligible because they do not have a social security number to remain a part of the household size for purposes of determining the eligibility of the other household members. Ineligible children will not be included in the household size and their income and resources will not be used in determining eligibility of the eligible group.

The word “voluntarily” is being inserted when referencing a person who is “voluntarily excluded” from the eligible group to clarify the meaning.

Currently, earnings of a full–time student are exempt only if that student is an applicant or recipient. There are times when a student is excluded from Medicaid, and therefore not an applicant or recipient when the Department has to count the student’s income in determining the eligibility of the student’s child. This can make the child ineligible. Therefore, the rule is being changed to not count earnings of any person 19 years of age or younger who is a full–time student.

These amendments do not provide for waivers in specified situations because the changes confer a benefit.

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 May 9, 2001.

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

The following amendments are proposed.

ITEM 1. Amend rule 441—75.14(249A) as follows:

Amend subrule 75.14(2) as follows:

75.14(2) Failure of the applicant or recipient to cooperate shall result in denial or cancellation of the person’s Medicaid benefits. In family medical assistance program (FMAP)–related Medicaid cases, all deductions and disregards described at paragraphs 75.57(2)“a,” “b,” and “c” shall be allowed when otherwise applicable. but income shall not be diverted to meet the needs of the parent who refuses to cooperate without good cause when establishing eligibility for the children as described at paragraph 75.57(8)“a.”

Amend subrule 75.14(10), paragraph “c,” subparagraph (2), as follows:

(2) Continued refusal to cooperate will result in the imposition of sanctions loss of Medicaid for the person who refuses to cooperate.

ITEM 2. Amend subrule 75.52(5), paragraph “c,” as follows:

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

ITEM 3. Amend subrule 75.56(2), paragraph “b,” as follows:

b. Resources of the parent who is living in the home with the eligible children but whose needs are excluded from the eligible group who is not eligible for Medicaid shall be considered in the same manner as if the parent were included in the eligible group eligible for Medicaid.

ITEM 4. Amend rule 441—75.57(249A) as follows:

Amend subrule 75.57(2), paragraph “c,” as follows:

c. After deducting the allowable work expenses as defined at paragraphs 75.57(2)“a” and “b” and income diversions as defined at subrules 75.57(4) and 75.57(8), 50 percent of the total of the remaining monthly nonexempt earnedincome, earned as an employee or the net profit from self–employment, of each individual whose income must be considered is deducted in determining eligibility for the family medical assistance program (FMAP) and those FMAP–related coverage groups subject to the three–step process for determining initial eligibility as described at rule 441— 75.57(249A). The 50 percent work incentive deduction is not time–limited. Initial eligibility under the first two steps of the three–step process is determined without the application of the 50 percent work incentive deduction as described at subparagraphs 75.57(9)“a”(2) and (3).

Individuals whose needs have been removed from the eligible group for refusing who are not eligible for Medicaid because they have refused to cooperate in applying for or accepting benefits from other sources, in accordance with the provisions of rule 441—75.2(249A), 441—75.3(249A), or 441— 75.21(249A), are eligible for the 50 percent work incentive deduction but the individual is not eligible for Medicaid.

Amend subrule 75.57(7), paragraph “u,” as follows:

u. Earnings of an applicant or recipient a person aged 19 or younger who is a full–time student as defined at subparagraphs 75.54(1)“b”(1) and (2). The exemption applies through the entire month of the person’s twentieth birthday.

Amend subrule 75.57(8), paragraph “a,” as follows:

a. Treatment of income in excluded parent cases. A parent who is living in the home with the eligible children but whose needs are excluded from the eligible group who is not eligible for Medicaid is eligible for the 20 percent earned income deduction, child care expenses for children in the eligible group, the 50 percent work incentive deduction described at paragraphs 75.57(2)“a,” “b,” and “c,” and diversions described at subrule 75.57(4), and shall be permitted to retain that part of the parent’s income to meet the parent’s needs as determined by the difference between the needs of the eligible group with the parent included and the needs of the eligible group with the parent excluded except as described at subrule 75.57(10). All remaining nonexempt income of the parent shall be applied against the needs of the eligible group.

Amend subrule 75.57(9), paragraph “e,” as follows:

e. In any month for which an individual is determined eligible to be added to a currently active family medicalassistance (FMAP) or FMAP–related Medicaid case, the individual’s needs, income, and resources shall be included. The needs, income, and resources of an An individual determined to be ineligible to remain who is a member of the eligible group and who is determined to be ineligible for Medicaid shall be removed canceled prospectively effective the first of the following month if the timely notice of adverse action requirements as provided at 441—subrule 76.4(1) can be met.

Rescind and reserve subrule 75.57(10).

ITEM 5. Amend subrule 75.58(2), paragraph “b,” by adopting the following new subparagraph (5):

(5) When a child is ineligible for Medicaid, the income and resources of that child are not used in determining eligibility of the eligible group and the ineligible child is not a part of the household size. However, the income and resources of a parent who is ineligible for Medicaid are used in determining eligibility of the eligible group and the ineligible parent is counted when determining household size.

ITEM 6. Amend rule 441—75.59(249A) as follows:

Amend the catchwords as follows:

Amend subrules 75.59(2) and 75.59(3) as follows:

75.59(2) Needs, income, and resource exclusions. The needs, income, and resources of persons who are voluntarily excluded shall also be excluded. If the income of the a self–supporting parents parent of a minor unmarried parent is voluntarily excluded, then the needs of the minor unmarried parent shall also not be excluded counted in the household size when determining eligibility for the minor unmarried parent’s child. However, the income and resources of the minor unmarried parent shall not be excluded used in determining eligibility for the unmarried minor parent’s child. If the income of the a stepparent is voluntarily excluded, the needs of the natural or adoptive parent shall also not be excluded counted in the household size when determining eligibility for the natural or adoptive parent’s children. However, the income and resources of the natural or adoptive parent shall be used in determining eligibility for the natural or adoptive parent’s children.

75.59(3) Medicaid entitlement. Persons whose needs are voluntarily excluded from the eligibility determination shall not be entitled to Medicaid under this or any other coverage group.

ITEM 7. Amend subrule 76.1(5), paragraphs “a,” “b,” and “c,” as follows:

a. In those instances where a person previously excluded from the eligible group ineligible for Medicaid for failure to cooperate in obtaining medical support or establishing paternity as described at 441—subrule 75.14(2) is to be added to the eligible group granted Medicaid benefits, the date of application to add the person is the date the person cooperates the person shall be granted Medicaid benefits effective the first of the month in which the person becomes eligible by cooperating in obtaining medical support or establishing paternity.

b. When adding a person who was previously excluded from the eligible group for failing to comply with rule 441—75.7(249A), the date of application to add the person is the date the social security number or proof of application for a social security number is provided. In those instances where a person previously ineligible for Medicaid for failure to provide a social security number or proof of application for a social security number as described at rule 441— 75.7(249A) is to be granted Medicaid benefits, the person shall be granted Medicaid benefits effective the first of the month in which the person becomes eligible by providing a social security number or proof of application for a social security number.

c. In those instances where a person who has been voluntarily excluded from the eligible group in accordance with the provisions of rule 441—75.59(249A) is being added to the eligible group, the date of application to add the person is the date the person shall be added effective the first of the month after the month in which the household requests that the person no longer be voluntarily excluded.

Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services proposes to amend Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” and Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” appearing in the Iowa Administrative Code.

These amendments allow Medicaid reimbursement to ambulatory surgical centers currently participating in the Medicaid program for providing dental services and clarify criteria governing covered surgical procedures. Freestanding ambulatory surgical centers providing only dental services are also made eligible to participate in the medical assistance program if the Board of Dental Examiners has issued a current permit pursuant to 650—Chapter 29 for any dentist to administer deep sedation or general anesthesia at the facility.

Medicare certification requirements for ambulatory surgical centers are excessive when only dental services are provided. These amendments will create a less costly alternative to hospital care for Medicaid recipients who require deep sedation or general anesthesia to receive dental care.

These amendments do not provide for waivers in specified situations because a waiver is not appropriate as these amendments confer a benefit by providing an additional dental service setting.

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 May 9, 2001.

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

The following amendments are proposed.

ITEM 1. Amend rule 441—77.24(249A) as follows:

441—77.24(249A) Ambulatory surgical centers. Ambulatory surgical centers which that are not part of hospitals are eligible to participate in the medical assistance program if they are certified to participate in the Medicare program (Title XVIII of the Social Security Act). Freestanding ambulatory surgical centers providing only dental services are also eligible to participate in the medical assistance program if the Iowa board of dental examiners has issued a current permit pursuant to 650—Chapter 29 for any dentist to administer deep sedation or general anesthesia at the facility.

ITEM 2. Amend rule 441—78.26(249A), introductory paragraphs, as follows:

441—78.26(249A) Ambulatory surgical center services. Ambulatory surgical center services are those services furnished by an ambulatory surgical center in connection with a covered surgical procedure or a covered dental procedure.

Covered surgical procedures shall be those medically necessary procedures that are eligible for payment and under the same circumstances as physicians’ services, under the circumstances specified in rule 441—78.1(249A) and performed on an eligible recipient, that can safely be performed in an outpatient setting as determined by the department upon advice from the Iowa Foundation for Medical Care.

ITEM 3. Amend subrule 79.1(3) as follows:

79.1(3) Ambulatory surgical centers. Payment is made for facility services on a fee schedule which is determined by Medicare. These fees are grouped into eight categories corresponding to the difficulty or complexity of the surgical procedure involved. Procedures not classified by Medicare shall be included in the category with comparable procedures.

Services of the physician or the dentist are reimbursed on the basis of a fee schedule (see subrule paragraph 79.1(1)“c”). This payment is made directly to the physician or dentist.

Pursuant to the authority of Iowa Code section 249A.4, the Department of Human Services proposes to amend Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” Chapter 79, “Other Policies Relating to Providers of Medical and Remedial Care,” and Chapter 83, “Medicaid Waiver Services,” appearing in the Iowa Administrative Code.

These amendments add a new service, residential–based supported community living, to the Home– and Community–Based Services Mental Retardation (HCBS MR) waiver. These amendments specify who may provide the services, certification procedures, services to be provided and service requirements, and eligibility criteria for the services.

This service was developed to provide placement outside the home for children with mental retardation or related conditions in a residential setting. Initially, only children under the age of 18 who are currently in Rehabilitative Treatment and Supportive Services group home placements will be eligible for the service. The Department’s intent is to expand this service to other children in the future as funding becomes available.

The Department will contract only with public or private agencies to provide this service. Providers must be licensed as group living foster care facilities under 441—Chapter 114 or as residential facilities for mentally retarded children under 441—Chapter 116 or meet other specified conditions.

Living units are limited to four beds unless the Division of Medical Services gives approval for living units of up to eight beds. The Division of Medical Services shall approve five– to eight–bed living units only if all of the following conditions are met:

• The living unit is an existing residential facility structure owned or operated by the service provider as of July 1, 1998.

• There is a need for the service to be provided in a five– to eight–person living unit instead of a smaller living unit, considering the location of the programs in an area.

• The provider supplies the Division of Medical Services with a written plan acceptable to the Department that addresses how the provider will reduce its living units to four–bed units within a two–year period of time.

Allowable service components are the following:

• Daily living skills development. These are services to develop the child’s ability to function independently in the community on a daily basis, including training in food preparation, maintenance of living environment, time and money management, personal hygiene, and self–care.

• Social skills development. These are services to develop a child’s communication and socialization skills, including interventions to develop a child’s ability to solve problems, resolve conflicts, develop appropriate relationships with others, and develop techniques for controlling behavior.

• Family support development. These are services necessary to allow a child to return to the child’s family or another less restrictive service environment. These services must include counseling and therapy sessions that involve both the child and the child’s family at least 50 percent of the time and that focus on techniques for dealing with the special care needs of the child and interventions needed to alleviate behaviors that are disruptive to the family or other group–living unit.

• Counseling and behavior intervention services. These are services to halt, control, or reverse stress and social, emotional, or behavioral problems that threaten or have negatively affected the child’s stability. Activities under these services include counseling and behavior intervention with the child, including interventions to ameliorate problem behaviors.

To be eligible for residential–based supported community living service, a child must have a diagnosis of mental retardation or have a related condition as defined in the rules, be under the age of 18, have been placed on June 30, 2001, in a group care program that the department contracted with to provide rehabilitative treatment and supportive services for children with mental retardation or a related conditionand that is licensed under 441—Chapter 116, and residein a residential–based living environment furnished by aresidential–based supported community living provider.

The Seventy–seventh General Assembly in 1997 Iowa Acts, chapter 208, section 33, directed the Department to convene a work group to make recommendations for a combined funding pool (Mental Retardation—Most Appropriate Groupcare Initiative for Children or MR–MAGIC) for children with mental retardation. Based on the results from this work group, the Seventy–eighth General Assembly in 2000 Iowa Acts, chapter 1228, section 8, subsection 9, directed the Department to pursue federal approval of a medical assistance home– and community–based services waiver to allow children with mental retardation who would otherwise require ICF/MR care to be served in out–of–home settings of up to eight beds which meet the standards established by the Department.

Rather than seek approval of an additional waiver, the Department is seeking approval of an additional service to the HCBS MR waiver. This service is seen as an efficient use of funds and will allow flexibility in funding. This service will allow federal participation to be claimed for services that are currently either being paid with 100 percent state dollars or that are subject to dispute with the Health Care Financing Administration under the Rehabilitative Treatment and Supportive Services program.

This service could reduce the need for ICF/MR placement of children and reduce the cost of serving these children. Children in placement could be closer to home. The Department will grandfather the existing group foster care beds and will require the provider to transition down to four beds over the next two years.

These amendments also remove the requirement forthe county to maintain continuity of services for an ill and handicapped waiver consumer on the MR waiver when the consumer turns 18. The county has responsibility for services, but does not necessarily have to provide those services through the MR waiver.

These amendments do not provide for waivers in specified situations because this service is a benefit and an alternative to institutional care.

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 May 9, 2001.

Oral presentations may be made by persons appearing at the following meetings. Written comments will also be accepted at these times.

Cedar Rapids – May 10, 2001 8 a.m.

Cedar Rapids Regional Office

Iowa Building – Seventh Floor Conference Room

411 Third Street S.E.

Cedar Rapids, Iowa 52401

Council Bluffs – May 9, 2001 8:30 a.m.

Administrative Conference Room

Council Bluffs Regional Office

417 E. Kanesville Boulevard

Council Bluffs, Iowa 51503

Davenport – May 10, 2001 1:30 p.m.

Davenport Area Office

Bicentennial Building – Third Floor Conference Room

428 Western

Davenport, Iowa 52801

Des Moines – May 9, 2001 10 a.m.

Des Moines Regional Office

City View Plaza – Conference Room 104

1200 University

Des Moines, Iowa 50314

Mason City – May 9, 2001 10 a.m.

Mason City Area Office

Mohawk Square, Liberty Room

22 North Georgia Avenue

Mason City, Iowa 50401

Ottumwa – May 9, 2001 10 a.m.

Ottumwa Area Office – Conference Room 3

120 East Main

Ottumwa, Iowa 52501

Sioux City – May 9, 2001 2 p.m.

Sioux City Regional Office – Fifth Floor

520 Nebraska Street

Sioux City, Iowa 51101

Waterloo – May 9, 2001 10 a.m.

Waterloo Regional Office

Pinecrest Office Building – Conference Rooms 443–445

1407 Independence Avenue

Waterloo, Iowa 50703

Any persons who intend to attend a public hearing and have special requirements such as hearing or vision impairments should contact the Bureau of Policy Analysis at (515)281–8440 and advise of special needs.

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

The following amendments are proposed.

ITEM 1. Amend rule 441—77.37(249A) as follows:

Amend the introductory paragraph as follows:

441—77.37(249A) HCBS MR waiver service providers. Supported community living providers (except forresidential–based supported community living providers) and supported employment providers shall be eligible to participate as approved HCBS MR service providers in theMedicaid program based on the outcome–based standards set forth below in subrules 77.37(1) and 77.37(2) evaluated according to subrules 77.37(10) to 77.37(12), the requirements of subrules 77.37(3) to 77.37(9), and the applicable subrules pertaining to the individual service. Residential–based supported community living providers shall meet the conditions set forth in subrule 77.37(23). Respite providers shall meet the conditions set forth in subrules 77.37(1) and 77.37(15). Home and vehicle modification shall meet the conditions set forth in subrule 77.37(17). Personal emergency responsesystem providers shall meet the conditions set forth insubrule 77.37(18). Nursing providers shall meet the conditions set forth in subrule 77.37(19). Home health aide providers shall meet the conditions set forth in subrule 77.37(20). Consumer–directed attendant care providers shall meet the conditions set forth in subrule 77.37(21). Interim medical monitoring and treatment providers shall meet the conditions set forth in subrule 77.37(22).

Adopt the following new subrule 77.37(23):

77.37(23) Residential–based supported community living service providers.

a. The department shall contract only with public or private agencies to provide residential–based supported community living services.

b. Subject to the requirements of this rule, the following agencies may provide residential–based supported community living services:

(1) Agencies licensed as group living foster care facilities under 441—Chapter 114.

(2) Agencies licensed as residential facilities for mentally retarded children under 441—Chapter 116.

(3) Other agencies providing residential–based supported community living services that meet the following conditions:

1. The agency must provide orientation training on the agency’s purpose, policies, and procedures within one month of hire or contracting for all employed and contracted treatment staff and must provide 24 hours of training during the first year of employment or contracting. The agency must also provide at least 12 hours of training per year after the first year of employment for all employed and contracted treatment staff. Annual training shall include, at a minimum, training on children’s mental retardation and developmental disabilities services and children’s mental health issues.

Identification and reporting of child abuse shall be covered in training at least every five years, in accordance with Iowa Code section 232.69.

2. The agency must have standards for the rights and dignity of children that include the following:

• Children, their families, and their legal representatives decide what personal information is shared and with whom.

• Children are a part of family and community life and perform varied social roles.

• Children have family connections, a social network, and varied relationships.

• Children develop and accomplish personal goals.

• Children are valued.

• Children live in positive environments.

• Children exercise their rights and responsibilities.

• Children make informed choices about how they spend their free time.

• Children choose their daily routine.

3. The agency must use methods of self–evaluation by which:

• Past performance is reviewed.

• Current functioning is evaluated.

• Plans are made for the future based on the review and evaluation.

4. The agency must have a governing body that receives and uses input from a wide range of local community interests and consumer representatives and provides oversight that ensures the provision of high–quality supports and services to children.

5. Children, their parents, and their legal representatives must have the right to appeal the service provider’s application of policies or procedures or any staff person’s action that affects the consumer. The service provider shall distribute the policies for consumer appeals and procedures to children, their parents, and their legal representatives.

c. As a condition of participation, all providers ofresidential–based supported community living services must have the following on file:

(1) Current accreditations, evaluations, inspections, and reviews by applicable regulatory and licensing agencies and associations.

(2) Documentation of the fiscal capacity of the provider to initiate and operate the specified programs on an ongoing basis.

(3) The provider’s written agreement to work cooperatively with the department.

d. As a condition of participation, all providers ofresidential–based supported community living services must develop, review, and revise service plans for each child, as follows:

(1) The service plan shall be developed in collaboration with the social worker or case manager, child, family, and, if applicable, the foster parents, unless a treatment rationale for the lack of involvement of one of these parties is documented in the plan. The service provider shall document the dates and content of the collaboration on the service plan. The service provider shall provide a copy of the service plan to the family and the case manager, unless otherwise ordered by a court of competent jurisdiction.

(2) Initial service plans shall be developed after services have been authorized and within 30 calendar days of initiating services.

(3) The service plan shall identify the following:

1. Strengths and needs of the child.

2. Goals to be achieved to meet the needs of the child.

3. Objectives for each goal that are specific, measurable, and time–limited and include indicators of progress toward each goal.

4. Specific service activities to be provided to achieve the objectives.

5. The persons responsible for providing the services. When daily living and social skills development is provided in a group care setting, designation may be by job title.

6. Date of service initiation and date of individual service plan development.

7. Service goals describing how the child will be reunited with the child’s family and community.

(4) Individuals qualified to provide all services identified in the service plan shall review the services identified in the service plan to ensure that the services are necessary, appropriate, and consistent with the identified needs of the child, as listed on Form 470–3273, Mental Retardation Functional Assessment Tool.

(5) The service worker or case manager shall review all service plans to determine progress toward goals and objectives 90 calendar days from the initiation of services and every 90 calendar days thereafter for the duration of the services.

At a minimum, the provider shall submit written reports to the service worker or case manager at six–month intervals and when changes to the service plan are needed.

(6) The individual service plan shall be revised when any of the following occur:

1. Service goals or objectives have been achieved.

2. Progress toward goals and objectives is not being made.

3. Changes have occurred in the identified service needs of the child, as listed on Form 470–3273, Mental Retardation Functional Assessment Tool.

4. The service plan is not consistent with the identified service needs of the child, as listed in the service plan.

(7) The service plan shall be signed and dated by qualified staff of each reviewing provider after each review and revision.

(8) Any revisions of the service plan shall be made in collaboration with the child, family, case manager, and, if applicable, the foster parents and shall reflect the needs of the child. The service provider shall provide a copy of the revised service plan to the family and case manager, unless otherwise ordered by a court of competent jurisdiction.

e. The residential–based supportive community living service provider shall also furnish residential–based living units for all recipients of the residential–based supported community living services. Except as provided herein, living units provided may be of no more than four beds. Service providers who receive division of medical services’ approval may provide living units of up to eight beds. The division of medical services shall approve five– to eight–bed living units only if all of the following conditions are met:

(1) The living unit is an existing residential facility structure owned or operated by the service provider as of July 1, 1998.

(2) There is a need for the service to be provided in a five– to eight–person living unit instead of a smaller living unit, considering the location of the programs in an area.

(3) The provider supplies the division of medical services with a written plan acceptable to the department that addresses how the provider will reduce its living units to four–bed units within a two–year period of time. This written plan shall include the following:

1. How the transition will occur.

2. What physical change will need to take place in the living units.

3. How children and their families will be involved in the transitioning process.

4. How this transition will affect children’s social and educational environment.

f. Certification process and review of service providers.

(1) The certification process for providers of residential–based supported community living services shall be pursuant to subrule 77.37(10).

(2) The initial certification of residential–based supported community living services shall be pursuant to subrule 77.37(11).

(3) Period and conditions of certification.

1. Initial certification. Providers eligible for initial certification by the department shall be issued an initial certification for 270 calendar days, effective on the date identified on the certificate of approval, based on documentation provided.

2. Recertification. After the initial certification, recertification shall be based on an on–site review and shall be contingent upon demonstration of compliance with certification requirements.

An exit conference shall be held with the provider to share preliminary findings of the recertification review. A review report shall be written and sent to the provider within 30 calendar days unless the parties mutually agree to extend that time frame.

Recertification shall become effective on the date identified on the Certificate of Approval, Form 470–3410, and shall terminate one year from the month of issuance.

Corrective actions may be required in connection with recertification and may be monitored through the assignment of follow–up monitoring either by written report, a plan of corrective actions and improvements, an on–site review, or the provision of technical assistance.

3. Probational certification. Probational certification for 270 calendar days may be issued to a provider who cannot demonstrate compliance with all certification requirements on recertification review to give the provider time to establish and implement corrective actions and improvement activities.

During the probational certification period, the department may require monitoring of the implementation of the corrective actions through on–site visits, written reports, or technical assistance.

Probational certification shall not be renewed or extended and shall require a full on–site follow–up review to be completed. The provider must demonstrate compliance with all certification requirements at the time of the follow–up review in order to maintain certification.

4. Immediate jeopardy. If, during the course of any review, a review team member encounters a situation that places a consumer in immediate jeopardy, the team member shall immediately notify the provider, the department, and other team members. “Immediate jeopardy” refers to circumstances where the life, health, or safety of a consumer will be severely jeopardized if the circumstances are not immediately corrected.

The provider shall correct the situation within 24 to 48 hours. If the situation is not corrected within the prescribed time frame, the provider shall not be certified. The department, the county of residence, and the central point of coordination shall be notified immediately to discontinue funding for that provider’s service. If this action is appealed and the consumer or legal guardian wants to maintain the provider’s services, funding can be reinstated. At that time the provider shall take appropriate action to ensure the life, health, and safety of the consumers deemed to be at risk.

5. Abuse reporting. As a mandatory reporter, each review team member shall follow appropriate procedure in all cases where a condition reportable to child and adult protective services is observed.

6. Extensions. The department shall establish the length of extensions on a case–by–case basis. The department may grant an extension to the period of certification for the following reasons:

• A delay in the department’s approval decision exists which is beyond the control of the provider or department.

• A request for an extension is received from a provider to permit the provider to prepare and obtain department approval of corrective actions.

7. Revocation. The department may revoke the provider’s approval at any time for any of the following reasons:

• The findings of a site visit indicate that the provider has failed to implement the corrective actions submitted pursuant to paragraph 77.37(13)“e” and numbered paragraph 77.37(23)“f”(3)“4.”

• The provider has failed to provide information requested pursuant to paragraph 77.37(13)“f” and numbered paragraph 77.37(23)“f”(3)“4.”

• The provider refuses to allow the department to conduct a site visit pursuant to paragraph 77.37(13)“h” and subparagraph 77.37(23)“f”(3).

• There are instances of noncompliance with the standards that were not identified from information submitted on the application.

8. Notice of intent to withdraw. An approved provider shall immediately notify the department, applicable county, the applicable mental health and developmental disabilities planning council, and other interested parties of a decision to withdraw as a provider of residential–based supported community living services.

9. Technical assistance. Following certification, any provider may request technical assistance from the department regarding compliance with program requirements. The department may require that technical assistance be provided to a provider to assist in the implementation of any corrective action plan.

10. Appeals. The provider may appeal any adverse action under 441—Chapter 7.00

(4) Providers of residential–based supported community living services shall be subject to reviews of compliance with program requirements pursuant to subrule 77.37(13).

ITEM 2. Amend rule 441—78.41(249A) by adopting the following new subrule 78.41(10):

78.41(10) Residential–based supported community living services. Residential–based supported community living services are medical or remedial services provided to children under the age of 18 while living outside of their home in a residential–based living environment furnished by theresidential–based supported community living service provider. The services eliminate barriers to family reunification or develop self–help skills for maximum independence.

a. Allowable service components are the following:

(1) Daily living skills development. These are services to develop the child’s ability to function independently in the community on a daily basis, including training in food preparation, maintenance of living environment, time and money management, personal hygiene, and self–care.

(2) Social skills development. These are services to develop a child’s communication and socialization skills, including interventions to develop a child’s ability to solve problems, resolve conflicts, develop appropriate relationships with others, and develop techniques for controlling behavior.

(3) Family support development. These are services necessary to allow a child to return to the child’s family or another less restrictive service environment. These services must include counseling and therapy sessions that involve both the child and the child’s family at least 50 percent of the time and that focus on techniques for dealing with the special care needs of the child and interventions needed to alleviate behaviors that are disruptive to the family or other group living unit.

(4) Counseling and behavior intervention services. These are services to halt, control, or reverse stress and social, emotional, or behavioral problems that threaten or have negatively affected the child’s stability. Activities under this service include counseling and behavior intervention with the child, including interventions to ameliorate problem behaviors.

b. Residential–based supported community living services must also address the ordinary daily–living needs of the child, excluding room and board, such as needs for safety and security, social functioning, and other medical care.

c. Residential–based supported community living services do not include services associated with vocational needs, academics, day care, Medicaid case management, other case management, or any other services that the child can otherwise obtain through Medicaid.

d. Room and board costs are not reimbursable asresidential–based supported community living services.

e. The scope of service shall be identified in the child’s service plan pursuant to 441—paragraph 77.37(23)“d.”

f. Residential–based supported community living services shall not be simultaneously reimbursed with other residential services provided under an HCBS waiver or otherwise provided under the Medicaid program.

g. A unit of service is a day.

h. The maximum number of units of residential–based supported community living services available per child is 365 daily units per state fiscal year, except in a leap year when 366 daily units are available.

ITEM 3. Amend rule 441—79.1(249A) as follows:

Amend subrule 79.1(2), basis of reimbursement provider category of “HCBS MR waiver service providers,” byadopting the following new provider grouping number “10,” as follows:

Amend subrule 79.1(15), introductory paragraph, as follows:

79.1(15) Reimbursement for HCBS MR and BI supported community living and supported employment and HCBS AIDS/HIV, BI, elderly, ill and handicapped, and MR respite when basis of reimbursement is retrospectively limited prospective rate. This includes home health agencies providing group respite; nonfacility providers of specialized, basic individual, and group respite; camps; and home care agencies providing specialized, basic individual, and group respite; and providers of residential–based supported community living.

ITEM 4. Amend rule 441—83.60(249A) as follows:

Amend the definition of “intermediate care facility for the mentally retarded (ICF/MR)” as follows:

“Intermediate care facility for the mentally retarded (ICF/MR)” means an institution that is primarily for the diagnosis, treatment, or rehabilitation of persons who are mentally retarded or persons with related conditions and that provides, in a protected residential setting, ongoing evaluation, planning, 24–hour supervision, coordination and integration of health or related services to help each individual person function at the greatest ability and is an approved Medicaid vendor.

Adopt the following new definitions in alphabetical order:

“Counseling” means face–to–face mental health services provided to the consumer and caregiver by a qualified mental retardation professional (QMRP) to facilitate home management of the consumer and prevent institutionalization.

“Person with a related condition” means an individual who has a severe, chronic disability that meets all the following conditions:

1. It is attributable to cerebral palsy, epilepsy, or any other condition, other than mental illness, found to be closely related to mental retardation because the condition results in impairment of general intellectual functioning or adaptive behavior similar to that of a mentally retarded person and requires treatment or services similar to those required for a mentally retarded person.

2. It is manifested before the age of 22.

3. It is likely to continue indefinitely.

4. It results in substantial functional limitations in three or more of the following areas of major life activity:

• Self–care.

• Understanding and use of language.

• Learning.

• Mobility.

• Self–direction.

• Capacity for independent living.

ITEM 5. Amend subrule 83.61(1) as follows:

Amend paragraph “a,” introductory paragraph, as follows:

a. Have a diagnosis of mental retardation updated based on the following time lines: or, for residential–based supported community living services only, be a person with a related condition as defined in rule 441—83.60(249A). Those eligible based on a primary diagnosis of mental retardation must have the diagnosis initially established and recertified as follows:

Adopt the following new paragraph “k”:

k. For residential–based supported community living services, meet all of the following additional criteria:

(1) Be less than 18 years of age.

(2) Have been placed on June 30, 2001, in a group care program that the department contracted with to provide rehabilitative treatment and supportive services for children with mental retardation or a related condition pursuant to 441— Chapter 152 and licensed under 441—Chapter 116.

(3) Be residing outside the home in a residential–based living environment furnished by the residential–based supported community living service provider.

ITEM 6. Amend subrule 83.62(3) by adopting the following new paragraph “g”:

g. Children who were receiving rehabilitative treatment and supportive services under the group care program pursuant to 441—Chapter 185, division V, who were placed with a rehabilitative treatment and supportive service provider as a result of a delinquency or CINA adjudication will be ineligible unless a regional administrator of one of the department’s five regions or the regional administrator’s designee determines that the child would have been eligible and the services covered aside from the adjudication. The regional administrator or designee shall base an approval or denial on documentation regarding the child’s individual situation. This documentation shall include, but is not limited to, the following:

(1) The reason for the adjudication.

(2) The existence of mental retardation or a related condition and the role of the child’s mental retardation or related condition in the adjudication.

(3) Other possible placements suitable for the child that would meet the child’s needs.

ITEM 7. Rescind subrule 83.70(3) and adopt the following new subrule in lieu thereof:

83.70(3) Continuation of services for children receiving residential–based supported community living services. The county of legal settlement shall be given the option to continue to provide funding for appropriate services to a child 18 to 21 years of age who is receiving residential–based supported community living services after the child turns 18. The case manager shall notify the county of legal settlement when the child in placement turns 16. For children placed after the age of 16, the case manager shall notify the county of legal settlement at the time of placement.

Pursuant to the authority of Iowa Code section 234.6, the Department of Human Services proposes to adopt Chapter 119, “Record Check Evaluations for Health Care Programs,” and to amend Chapter 176, “Dependent Adult Abuse,” appearing in the Iowa Administrative Code.

Iowa Code subsection 135C.33 requires health care facilities to request criminal and dependent adult abuse record checks on a person prior to employment of that person. The facilities may also request that the Department of Human Services perform child abuse record checks in the state. Health care facilities include residential care facilities, nursing facilities, intermediate care facilities for persons with mental illness, and intermediate care facilities for persons with mental retardation. These requirements also apply to the following providers if they are regulated by the state or receive any state or federal funding for prospective employees providing direct services to consumers:

• Homemaker, home–health aide, home–care aide, and adult day care providers, or other providers of in–home services.

• Hospices.

• Federal home– and community–based waiver providers.

• Elder group homes.

• Assisted living facilities.

If the Department of Public Safety determines that a person has committed a crime or the Department of Human Services determines that the person has a record of founded child or dependent adult abuse, the employer may request that the Department of Human Services conduct an evaluation to determine whether prohibition of the person’s employment is warranted.

These amendments establish the procedures for the record check evaluations by the Department and update policy regarding who may request an employment background check to conform policy with a change passed by the Seventy–ninth General Assembly in 2001 Iowa Acts, House File 192.

The Department completed approximately 3,500 evaluations in calendar year 2000 for current and prospective employees of health care facilities and other health care programs.

These amendments do not provide for waivers in specified situations because Iowa law does not provide for exceptions.

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 May 9, 2001.

These amendments are intended to implement Iowa Code section 135C.33 as amended by 2001 Iowa Acts, House File 192, section 1, and section 235B.6 as amended by 2001 Iowa Acts, House File 192, section 3.

The following amendments are proposed.

ITEM 1. Adopt the following new 441—Chapter 119:

CHAPTER 119
RECORD CHECK EVALUATIONS FOR
HEALTH CARE PROGRAMS

PREAMBLE

These rules establish procedures for the performance of record check evaluations by the department of human services for personnel employed by health care facilities and other health care programs listed in Iowa Code section 135C.33. Record check evaluations are performed, at the request of a prospective employer, on persons who have been found to have been convicted of a crime under a law of any state or have a record of founded child or dependent adult abuse, to determine whether the crimes or founded abuses warrant prohibition of employment.

“Department” means the department of human services.

“Health care program” means any of the facilities and programs listed in Iowa Code chapter 135C that are subject to record check evaluations.

119.2(1) Record check evaluations on prospective employees. Health care programs shall request a record check evaluation when they decide to consider for employment a person who meets any of the following conditions:

a. The prospective employee’s background check indicates a criminal or dependent adult abuse or child abuse record.

b. The prospective employee has indicated on the application for employment that the prosepctive employee has a criminal or dependent adult or child abuse record.

c. The employer learns from any source that a prospective employee has a criminal or dependent adult or child abuse record.

119.2(2) Record check evaluations on current employees. Employers shall request a record check evaluation on current employees when:

a. The employer learns from any source that a current employee has a criminal or dependent adult or child abuse record that has not been previously evaluated for employment at this health care program.

b. An employee with a criminal or abuse history terminates employment for any reason or any length of time and wishes to return to the same health care program.

119.2(3) Transfer of employment. If a person owns or operates more than one facility, and an employee of one of the facilities is transferred to another facility without a lapse in employment, the facility is not required to request additional criminal or abuse checks of the employee or obtain a new record check evaluation.

119.3(1) Required documentation. The employer and the prospective employee shall complete and the employer shall submit Form 470–2310, Record Check Evaluation, to the department to request an evaluation. The employer shall submit the form and required documentation to the Department of Human Services, Central Abuse Registry, 1305 East Walnut, Des Moines, Iowa 50319–0114. The department shall not process evaluations that are not signed by the prospective employee. The position sought or held must be clearly written on the first page of Form 470–2310, Record Check Evaluation. Form 470–2310 shall be accompanied by the following documents:

a. A copy of the documentation of the applicant’s status on the DCI criminal history data base generated within 30 days of the time that the request for evaluation is submitted to the department.

b. A copy of the Iowa Criminal History, if there is a history, as provided to the employer by the department of criminal investigations.

c. A copy of the documentation of the applicant’s status on the dependent adult abuse registry generated within 30 days of the time that the request for evaluation is submitted to the department.

119.3(2) Additional documentation.

a. The employer may provide or the department may request from the prospective employee or employer information to assist in performance of the evaluation that includes, but is not limited to, the following:

(1) Documentation of criminal justice proceedings.

(2) Documentation of rehabilitation.

(3) Written employment references or applications.

(4) Documentation of substance abuse education or treatment.

(5) Criminal history records, child abuse information, and dependent adult abuse information from other states.

(6) Documentation of the applicant’s prior residences.

b. Any person or agency may be contacted who might have pertinent information regarding the criminal or abuse history and rehabilitation of a prospective employee.

c. The department may check the child abuse registry during a record check evaluation. If there is a record of child abuse, the department shall consider the information in the child abuse record in reaching a decision regarding employability.

119.4(1) Considerations. The department shall consider the following when conducting a record check evaluation:

a. The nature and seriousness of the crime or founded child or dependent adult abuse in relation to the position sought or held.

b. The time elapsed since the commission of the crime or founded child or dependent adult abuse.

c. The circumstances under which the crime or founded abuse was committed.

d. The degree of rehabilitation.

e. The likelihood that the person will commit a crime or founded child or dependent adult abuse again.

f. The number of crimes or instances of founded child or dependent adult abuse committed by the person involved.

119.4(2) Notice of decision. The department shall issue a notice of decision in writing to the employer that requested the record check evaluation. The department shall send a copy of the notice of decision to the person who has applied for employment, if the person’s address is available. If the address is not available, the department shall send the prospective employee’s copy of the notice to the employer.

a. The notice shall be valid only for employment with the employer that requested the record check evaluation.

b. The notice shall not be valid for employment with any other prospective employer.

c. Record check evaluations are valid for employment that commences within 30 days from the date of notice of decision.

d. The notice of decision shall contain the notice of right to appeal.

441—119.5(135C) Appeal rights. Any person or the person’s attorney may file a written statement with the department requesting an appeal of the record check evaluationdecision within 30 days of the date of the notice of the results of the record check evaluation in accordance with 441— Chapter 7.

These rules are intended to implement Iowa Code section 135C.33.

ITEM 2. Amend subrule 176.10(3), paragraph “e,” by adopting the following new subparagraph (10):

(10) The department of inspections and appeals for purposes of record checks of applicants for employment with the department of inspections and appeals.

Pursuant to the authority of Iowa Code section 88.5, the Labor Commissioner hereby terminates the rule making initiated by the Notice of Intended Action published in the Iowa Administrative Bulletin on February 7, 2001, as ARC 0455B, amending Chapter 10, “General Industry Safety and Health Rules.” Termination of this rule making is mandated by Iowa Code subsection 88.5(1)“a.”

The Notice of Intended Action proposed adoption of the federal ergonomics standard that has since been nullified. A new rule making will be initiated if actions at the federal level require it.

Pursuant to the authority of Iowa Code section 139A.3, the Department of Public Health hereby amends proposed Chapter 1, “Notification and Surveillance of Reportable Diseases,” which was published under Notice of Intended Action in the April 4, 2001, Iowa Administrative Bulletin as ARC 0595B.

Any interested person may make written suggestions or comments on this proposed amendment on or before May 8, 2001. Such written materials should be directed to the Iowa Department of Public Health, Center for Acute Disease Epidemiology, Lucas State Office Building, 321 E. 12th Street, Des Moines, Iowa 50319–0075.

This amendment is intended to implement Iowa Code chapter 139A.

The following amendment is proposed.

Replace proposed subrule 1.6(5) with the following new language:

1.6(5) Laboratories are required to report cases of reportable diseases and results obtained in the examination of all specimens which yield evidence of or are reactive for sexually transmitted diseases.

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 42, “Adjustments to Computed Tax,” Chapter 46, “Withholding,” and Chapter 52, “Filing Returns, Payment of Tax and Penalty and Interest,” Iowa Administrative Code.

A number of changes in the individual income tax, corporate income tax and the income tax withholding laws were made by 2000 Iowa Acts, chapters 1194, 1196, and 1230. Most of the changes are applicable to July 1, 2000, for tax years or for expenditures made on or after that date.

Item 1 adopts new rule 42.15(422), which describes the property rehabilitation tax credit that is partially administered by the Historical Division of the Department of Cultural Affairs. The property rehabilitation tax credit is a new individual income tax credit for rehabilitating eligible property in Iowa that has historical significance, including barns that were constructed prior to 1937. This rule describes how taxpayers may apply for the credit, how the credit may be computed and how the refunds for the credit are calculated in sit–uations where the credit exceeds the taxpayer’s income tax liability.

Item 2 is an amendment of a rule for the withholding tax credit to the workforce development fund which shows a decrease in the aggregate amount to be transferred to the fund for fiscal years beginning in the year starting on July 1, 2000.

Item 3 adopts new rule 46.7(422), which describes the Accelerated Career Education Program (ACE) credits from withholding. The ACE program is a training program administered by the Department of Economic Development in conjunction with the community colleges and is primarily funded through credits from withholding of employers that have employees in the program. The rule sets out how the amount of funding is determined and how the credits from withholding are claimed by the employers.

Item 4 adopts new rule 52.18(422) that is the rule for the property rehabilitation tax credit for corporate income tax purposes. This rule is almost identical to the rule in Item 1.

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

There are no waiver provisions reflected in these amendments because the Department lacks the statutory authority to grant waivers where rules are mainly an interpretation of statutes.

The Department has determined that these proposed amendments may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A if a written request is filed by delivery or by mailing postmarked no later than May 21, 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 qualify as a small business, or an organization representing at least 25 such persons.

Any interested person may make written suggestions or comments on these proposed amendments on or before May 18, 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 orally convey their views 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 May 11, 2001.

These amendments are intended to implement Iowa Code chapter 404A and sections 15.342A, 260G.3, 260G.4A, 422.11D, 422.16A, and 422.33 as amended by 2000 Iowa Acts, chapters 1194, 1196, and 1230.

The following amendments are proposed.

ITEM 1. Amend 701—Chapter 42 by adopting the following new rule:

701—42.15(422) Property rehabilitation tax credit. A property rehabilitation credit, subject to the availability of the credit, may be claimed against a taxpayer’s Iowa individual income tax liability for 25 percent of the qualified costs of rehabilitation of property to the extent the costs were incurred on or after July 1, 2000, for approved rehabilitation projects of eligible property in Iowa. The administrative rules for the property rehabilitation credit for the historical division of the department of cultural affairs may be found under 223— Chapter 48.

42.15(1) Eligible properties for the rehabilitation credit. The following types of property are eligible for the property rehabilitation credit:

a. Property verified as listed on the National Register of Historic Places or eligible for such listing through the state historic preservation office (SHPO).

b. Property designated as of historic significance to a district listed in the National Register of Historic Places or eligible for such designation by being located in an area previously surveyed and evaluated as eligible for the National Register of Historic Places.

c. Property or district designated as a local landmark by a city or county ordinance.

d. Any barn constructed prior to 1937.

42.15(2) Application and review process for the property rehabilitation credit. Taxpayers who want to claim an income tax credit for completing a property rehabilitation project must submit an application for approval of the project. The application forms for the property rehabilitation credit may be requested from the State Tax Credit Program Manager, State Historic Preservation Office, Department of Cultural Affairs, 600 E. Locust, Des Moines, Iowa 50319–0290. The telephone number for this office is (515)281–4137. Applications for the credit will be accepted by the state historic preservation office on or after July 1, 2000, until such time as all the available credits allocated for each fiscal year are encumbered. For the fiscal year beginning on July 1, 2000, and ending June 30, 2001, $2.4 million was appropriated for property rehabilitation tax credits for that year.

Applicants for the property rehabilitation credit must include all information and documentation requested on the application forms for the credit in order for the application to be processed.

The state historic preservation office (SHPO) is to establish selection criteria and standards for rehabilitation proj–ects involving eligible property. The approval process is not to exceed 90 days from the date the application is received by SHPO. To the extent possible, the standards used by SHPO are to be consistent with the standards of the United States Secretary of the Interior for rehabilitation of eligible property that is listed on the National Register of Historic Places or is designated as of historic significance to a district listed in the National Register of Historic Places.

The selection standards are to provide that a taxpayer who qualifies for the rehabilitation investment credit under Section 47 of the Internal Revenue Code shall automatically qualify for the state property rehabilitation credit to the extent that all the property rehabilitation credits appropriated for the fiscal year have not already been awarded.

Once SHPO approves a particular rehabilitation credit project application, the office will encumber an estimated rehabilitation credit under the name of the applicant(s) for the year the project is approved.

42.15(3) Computation of the amount of the property rehabilitation credit. The amount of the property rehabilitation credit is 25 percent of the qualified rehabilitation costs made to an eligible property in a project. Qualified rehabilitation costs are those rehabilitation costs approved by SHPO for a project for a particular taxpayer to the extent those rehabil–itation costs are actually expended by that taxpayer.

In the case of commercial property, rehabilitation costs must equal at least 50 percent of the assessed value of the property, excluding the value of the land, prior to rehabilitation. In the case of residential property or barns, the rehabil–itation costs must equal at least $25,000 or 25 percent of the fair market value, excluding the value of the land, prior to the rehabilitation, whichever amount is less. In computing the tax credit for eligible property that is classified as residential or as commercial with multifamily residential units, the rehabilitation costs are not to exceed $100,000 per residential unit. In computing the tax credit, the only costs which may be included are the rehabilitation costs incurred between the period ending on the project completion date and beginning on the later of either the date of issuance of approval of the project or two years prior to the project completion date.

For purposes of the property rehabilitation credit, qualified rehabilitation costs include those costs properly included in the basis of the eligible property for income tax purposes. Costs treated as expenses and deducted in the year paid or incurred and amounts that are otherwise not added to the basis of the property for income tax purposes are not qualified rehabilitation costs. Amounts incurred for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, development fees, and other construction–related costs are qualified rehabilitation costs to the extent they are added to the basis of the eligible property for tax purposes. Costs of sidewalks, parking lots, and landscaping do not constitute qualified rehabilitation costs. Any rehabilitation costs used in the computation of the property rehabilitation credit are not deductible for Iowa income tax purposes.

For example, the basis of a commercial building in a historic district was $500,000, excluding the value of the land, before the rehabilitation project. During a project to rehabilitate this building, $600,000 in rehabilitation costs were expended to complete the project and $500,000 of those reha–bilitation costs were qualified rehabilitation costs which were eligible for the rehabilitation credit of $125,000. Therefore, the basis of the building for Iowa income tax purposes was $600,000 and the basis of the building for federal income tax purposes was $1,100,000. The $500,000 in qualified rehabilitation costs that were used to compute the reha–bilitation credit are not deductible on the Iowa income tax return as a current expense in the year expended or through depreciation of the property that was rehabilitated. It should be noted that this example does not consider any possible reduced basis for the building for federal income tax purposes due to the rehabilitation investment credit provided in Section 47 of the Internal Revenue Code.

42.15(4) Completion of the property rehabilitation project and claiming the property rehabilitation tax credit on the Iowa return. After the taxpayer completes an authorized rehabilitation project, the taxpayer must get a certificate of completion of the project from the state historical preservation office of the department of cultural affairs. After verifying the taxpayer’s eligibility for the rehabilitation credit, the state historical preservation office, in consultation with the department of economic development, is to issue a property rehabilitation tax credit certificate which is to be attached to the taxpayer’s income tax return for the tax year in which the rehabilitation project is completed. The tax credit certificate is to include the taxpayer’s name, the taxpayer’s address, the taxpayer’s tax identification number, the address or location of the rehabilitation project, the date the project was completed and the amount of the property rehabilitation credit. In addition, if the taxpayer is a partnership, limited liability company, estate or trust, where the tax credit is allocated to the owners or beneficiaries of the entity, a list of the owners or beneficiaries and the amount of credit allocated to each owner or beneficiary should be provided with the certificate. The tax credit certificate should be attached to the income tax return for the period in which the project was completed. If the amount of the property rehabilitation tax credit exceeds the taxpayer’s income tax liability for the tax year for which the credit applies, the taxpayer is entitled to a refund of the excess portion of the credit at a discounted value. However, the refund cannot exceed 75 percent of the allowable tax credit. The refund of the tax credit is to be computed on the basis of the following table:

EXAMPLE: The following is an example to show how the table can be used to compute a refund for a taxpayer. An individual has a rehabilitation credit of $800,000 for a project completed in 2001. The individual had an income tax liability prior to the credit of $300,000 on the 2001 return, which leaves an excess credit of $500,000. We will assume that the annual interest rate for tax refunds issued by the department of revenue and finance in the 2001 calendar year is 11 percent. Therefore, to compute the five–year present value of the $500,000 excess credit, $500,000 is multiplied by the compound factor for 11 percent of .594 in the table, which results in a refund of $297,000.

42.15(5) Allocation of property rehabilitation credits to the individual owners of the entity. When the taxpayer that has earned a property rehabilitation credit is a partnership, limited liability company, estate or trust where the individual owners of the business entity are taxed on the income of the entity, the property rehabilitation credit is to be allocated to the individual owners. The business entity is to allocate the property rehabilitation credit to each individual owner on the same pro–rata basis as the earnings of the business are allocated to the owners. For example, if a partner of a partnership received 25 percent of the earnings or income of the partnership for the tax year in which the partnership had earned a property rehabilitation credit, 25 percent of the credit would be allocated to this partner.

This rule is intended to implement Iowa Code chapter 404A and section 422.11D as amended by 2000 Iowa Acts, chapter 1194.

ITEM 2. Amend rule 701—46.6(422) to read as follows:

701—46.6(422) Withholding tax credit to workforce development fund. Upon payment in full of a certificate of participation or other obligation issued to fund a job training program under Iowa Code chapter 260E which occurs on or after July 1, 1995, the community college which provided the training is to notify the department of economic development of the amount paid by the employer or business to the community college during the previous 12 months. The department of economic development is to notify the department of revenue and finance of this amount. The department is to credit 25 percent of this amount to the workforce development fund in each quarter for the next ten years from the withholding tax paid by the employer or business. If the withholding tax paid by the employer or business for a quarter is not sufficient to cover the sum to be credited to the workforce development fund, the sum to be credited is to be reduced accordingly. The aggregate amount from all employers to be transferred to the workforce development fund in a year is not to exceed $10 8 million for fiscal years beginning on or after July 1, 2000. For purposes of this rule, “year” means the period from July 1, 1995, through June 30, 1996, the period from July 1, 1996, through June 30, 1997, and subsequent fiscal year periods.

This rule is intended to implement Iowa Code Supplement section 422.16A as amended by 1996 2000 Iowa Acts, Senate File 2351 chapter 1230.

ITEM 3. Amend 701—Chapter 46 by adopting the following new rule:

701—46.7(422) ACE training program credits from withholding. The accelerated career education (ACE) program is a training program administered by the Iowa department of economic development to provide technical training in state community colleges for employees in highly skilled jobs in the state to the extent the training is authorized in an agreement between an employer or group of employers and a community college for the training of certain employees of the employer or group of employers. If a community college and an employer or group of employers enters into a program agreement for ACE training, a copy of the agreement is to be sent to the department of revenue and finance. No costs incurred prior to the date of the signing between a community college and an employer or group of employers may be reimbursed or are eligible for program job credits, including job credits from withholding.

46.7(1) The costs of the ACE training program may be paid from the following sources: (a) program job credits which the employer receives on the basis of the number of program job positions agreed to by the employer for the training program, (b) cash or in–kind contributions by the employer toward the costs of the program which must be at least 20 percent of the total cost of the program, (c) tuition, student fees, or special charges fixed by the board of directors of the community college to defray costs of the program,(d) guarantee by the employer of payments to be received under “a” and “b” of this subrule. This rule pertains only to the program job credits from withholding described in “a.”

46.7(2) ACE training programs financed by job credits from withholding. In situations when an employer and a community college have entered into an agreement for training under the ACE program and the agreement provides that the training will be financed by credits from withholding, the amount of funding will be determined by the program jobs credits identified in the agreement. Eligibility for the program job credits is based on certification of program job positions and program job wages by the employer at the time established in the agreement with the community college. An amount of up to 10 percent of the gross program job wage as certified by the employer in the agreement shall be credited from the total amount of Iowa income tax withheld by the employer. For example, if there were 20 employees designated to be trained in the agreement and their gross wages were $600,000, the gross program job wage would be $600,000. Therefore, 10 percent of the gross program job wage in this case would be $60,000, and this amount would be credited against Iowa income tax which would ordinarily be withheld from the wages of all employees of the employer and remitted to the department of revenue and finance on a quarterly basis. The amount credited against the withholding tax liability of the employer would be paid to the community college training the employer’s employees under the ACE program. The employer may take the credits against withholding tax on returns filed with the department of revenue and finance until such time as the program costs of the ACE program are considered to be satisfied.

This rule is intended to implement Iowa Code sections 260G.4A and 422.16 as amended by 2000 Iowa Acts, chapter 1196.

ITEM 4. Amend 701—Chapter 52 by adopting the following new rule:

701—52.18(422) Property rehabilitation tax credit. A property rehabilitation credit, subject to the availability of the credit, may be claimed against a taxpayer’s Iowa corporate income tax liability for 25 percent of the qualified costs of rehabilitation of property to the extent the costs were incurred on or after July 1, 2000, for the rehabilitation of eligible property in Iowa. The administrative rules for the property rehabilitation credit for the historical division of the department of cultural affairs may be found under 223—Chapter 48.

52.18(1) Eligible property for the rehabilitation credit. The following types of property are eligible for the property rehabilitation credit:

a. Property verified as listed on the National Register of Historic Places or eligible for such listing through the state historic preservation office (SHPO).

b. Property designated as of historic significance to a district listed in the National Register of Historic Places or eligible for such designation by being located in an area previously surveyed and evaluated as eligible for the National Register of Historic Places.

c. Property or district designated as a local landmark by a city or county ordinance.

d. Any barn constructed prior to 1937.

52.18(2) Application and review process for the property rehabilitation credit. Taxpayers who want to claim an income tax credit for completing a property rehabilitation project must submit an application for approval of the project. The application forms for the property rehabilitation credit may be requested from the State Tax Credit Program Manager, State Historic Preservation Office, Department of Cultural Affairs, 600 E. Locust, Des Moines, Iowa 50319–0290. The telephone number for this office is (515)281–4137. Applications for the credit will be accepted by the state historic preservation office on or after July 1, 2000, until such time as all the available credits allocated for each fiscal year are encumbered. For the fiscal year beginning on July 1, 2000, and ending June 30, 2001, $2.4 million was appropriated for property rehabilitation tax credits for that year.

Applicants for the property rehabilitation credit must include all information and documentation requested on the application forms for the credit in order for the applications to be processed.

The state historic preservation office (SHPO) is to establish selection criteria and standards for rehabilitation proj–ects involving eligible property. The approval process is not to exceed 90 days from the date the application is received by SHPO. To the extent possible, the standards are to be consistent with the standards of the United States Secretary of the Interior for rehabilitation of eligible property that is listed on the National Register of Historic Places or is designated as of historic significance to a district listed in the National Register of Historic Places.

The selection standards are to provide that a taxpayer who qualifies for the rehabilitation investment credit under Section 47 of the Internal Revenue Code shall automatically qualify for the state property rehabilitation credit to the extent that all the property rehabilitation credits appropriated for the fiscal year have not already been awarded.

Once SHPO approves a particular rehabilitation credit project application, the office will encumber an estimated rehabilitation credit under the name of the applicant(s) for the year the project is approved.

52.18(3) Computation of the amount of the property rehabilitation credit. The amount of the property rehabilitation credit is 25 percent of the qualified rehabilitation costs made to eligible property in a project. Qualified rehabilitation costs are those rehabilitation costs approved by SHPO for a project for a particular taxpayer to the extent those rehabil–itation costs are actually expended by that taxpayer.

In the case of commercial property, rehabilitation costs must equal at least 50 percent of the assessed value of the property, excluding the value of the land, prior to rehabilitation. In the case of residential property or barns, the rehabil–itation costs must equal at least $25,000 or 25 percent of the fair market value, excluding the value of the land, prior to the rehabilitation, whichever amount is less. In computing the tax credit for eligible property that is classified as residential or as commercial with multifamily residential units, the rehabilitation costs are not to exceed $100,000 per residential unit. In computing the tax credit, the only costs which may be included are the rehabilitation costs incurred between the period ending on the project completion date and beginning on the later of either the date of issuance of approval of the project or two years prior to the project completion date.

For purposes of the property rehabilitation credit, qualified rehabilitation costs include those costs properly included in the basis of the eligible property for income tax purposes. Costs treated as expenses and deducted in the year paid or incurred and amounts that are otherwise not added to the basis of the property for income tax purposes are not qualified rehabilitation costs. Amounts incurred for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, development fees, and other construction–related costs are qualified rehabilitation costs to the extent they are added to the basis of the eligible property for tax purposes. Costs of sidewalks, parking lots, and landscaping do not constitute qualified rehabilitation costs. Any rehabilitation costs used in the computation of the property rehabilitation credit are not deductible for Iowa income tax purposes.

For example, the basis of a commercial building in a historic district was $500,000, excluding the value of the land, before the rehabilitation project. During a project to rehabilitate this building, $600,000 in rehabilitation costs were expended to complete the project and $500,000 of those reha–bilitation costs were qualified rehabilitation costs which were eligible for a rehabilitation credit of $125,000. Therefore, the basis of the building for Iowa income tax purposes was $600,000 and the basis of the building for federal income tax purposes was $1,100,000. The $500,000 in qualified rehabilitation costs that were used to compute the rehabilitation credit are not deductible on the Iowa income tax return as a current expense in the year expended or through depreciation of the property that was rehabilitated. It should be noted that this example does not consider any possible reduced basis for the building for federal income tax purposes due to the rehabilitation investment credit provided in Section 47 of the Internal Revenue Code.

52.18(4) Completion of the property rehabilitation project and claiming the property rehabilitation tax credit on the Iowa return. After the taxpayer completes an authorized rehabilitation project, the taxpayer must get a certificate of completion of the project from the state historical preservation office of the department of cultural affairs. After verifying the taxpayer’s eligibility for the rehabilitation credit, the state historical preservation office, in consultation with the department of economic development, is to issue a property rehabilitation tax credit certificate which is to be attached to the taxpayer’s income tax return for the tax year in which the rehabilitation project is completed. The tax credit certificate is to include the taxpayer’s name, the taxpayer’s address, the taxpayer’s tax identification number, the address or location of the rehabilitation project, the date the project was completed, and the amount of the property rehabilitation credit. In addition, if the taxpayer is an S corporation, where the tax credit is allocated to the shareholders of the corporation, a list of the shareholders and the amount of credit allocated to each shareholder should be provided with the certificate. The tax credit certificate should be attached to the income tax return for the period in which the project was completed. If the amount of the property rehabilitation tax credit exceeds the taxpayer’s income tax liability for the tax year for which the credit applies, the taxpayer is entitled to a refund of the excess portion of the credit at a discounted value. However, the refund cannot exceed 75 percent of the allowable tax credit. The refund of the tax credit is to be computed on the basis of the following table:

EXAMPLE: The following is an example to show how the table can be used to compute a refund for a taxpayer. An Iowa corporation has a rehabilitation credit of $800,000 for a project completed in 2001. The corporation had an income tax liability prior to the credit of $300,000 on the 2001 return, which leaves an excess credit of $500,000. We will assume that the annual interest rate for tax refunds issued by the department of revenue and finance in the 2001 calendar year is 11 percent. Therefore, to compute the five–year present value of the $500,000 excess credit, $500,000 is multiplied by the compound factor for 2001 which is 11 percent or .594 which results in a refund of $297,000.

52.18(5) Allocation of the property rehabilitation credit to the shareholders of the corporation. When the corporation that has earned a property rehabilitation credit is an S corporation where the shareholders are taxed on the income of the corporation, the property rehabilitation credit is to be allocated to the shareholders. The corporation is to allocate the property rehabilitation credit to each individual shareholder in the same pro–rata basis that the earnings or profits of the corporation are allocated to the shareholders. For example, if a shareholder of an S corporation received 25 percent of the earnings of the corporation and the corporation had earned a property rehabilitation credit, 25 percent of the credit would be allocated to the shareholder.

This rule is intended to implement Iowa Code chapter 404A and section 422.33 as amended by 2000 Iowa Acts, chapter 1194.

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 April is 7.00%.

INTEREST RATES FOR PUBLIC

OBLIGATIONS AND ASSESSMENTS

74A.2 Unpaid Warrants Maximum 6.0%

74A.4 Special Assessments Maximum 9.0%

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

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

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

TIME DEPOSITS

7–31 days Minimum 4.30%

32–89 days Minimum 4.00%

90–179 days Minimum 4.00%

180–364 days Minimum 4.10%

One year to 397 days Minimum 4.10%

More than 397 days Minimum 4.30%

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

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

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

March 1, 2000 — March 31, 2000 8.75%

April 1, 2000 — April 30, 2000 8.50%

May 1, 2000 — May 31, 2000 8.25%

June 1, 2000 — June 30, 2000 8.00%

July 1, 2000 — July 31, 2000 8.50%

August 1, 2000 — August 31, 2000 8.00%

September 1, 2000 — September 30, 2000 8.00%

October 1, 2000 — October 31, 2000 7.75%

November 1, 2000 — November 30, 2000 7.75%

December 1, 2000 — December 31, 2000 7.75%

January 1, 2001 — January 31, 2001 7.75%

February 1, 2001 — February 28, 2001 8.00%

March 1, 2001 — March 31, 2001 7.25%