Pages 1120 to 1162 include ARC 1285B to ARC 1309B

Administrative rules review committee 1110

Schedule for rule making 1108

Publication procedures 1109

Administrative rules on CD–ROM 1109

Agency identification numbers 1118

Opinions summarized 1163

CITATION OF ADMINISTRATIVE RULES 1107

Filed Emergency, Local housing assistance
program, 28.1 to 28.9 ARC 1291B 1149

Filed, New jobs and income program,
58.1 to 58.4 ARC 1290B 1152

Filed, Enterprise zone program, 59.1, 59.2,
59.3(4), 59.5, 59.6, 59.8 to 59.14
ARC 1289B 1152

Notice, Talented and gifted endorsement—
graduate and undergraduate coursework,
14.140(13) ARC 1292B 1120

Notice, Adult day care and facility–based
respite care; non–facility–based respite care,
rescind chs 24, 25 ARC 1305B 1120

Notice, Medicaid for employed people with
disabilities coverage group—payment policy
and procedures for recipients who are assessed
premiums, 75.1(39)“b” ARC 1299B 1121

Notice, Medicaid—eligibility, 75.1(40),
75.2 to 75.4, 75.5(3), 75.7, 75.11(1),
75.13(2), 75.14, 75.23, 75.57 ARC 1300B 1123

Notice, Enrollment of psychiatric nurse
practitioners as Medicaid independent
providers, 77.36, 78.1(21), 78.21(1),
78.23, 78.31(5), 78.40, 79.1(2), 79.14(1),
80.2(2) ARC 1301B 1127

Notice of proposed workers’ compensation rate
filing—catastrophe provision of 4% 1128

Notice of proposed workers’ compensation rate
filing—claims directly attributable to terrorist
acts of September 11, 2001 1128

Filed, Audit procedures for medical claims;
prompt payment of claims, 15.16, 15.17
ARC 1303B 1158

Filed Emergency After Notice, OSHA
record–keeping regulations, 4.1 to 4.19
ARC 1293B 1149

Notice Terminated, International medical
graduates—passing score on TOEFL for
special license, 10.4(3)“a”(4) ARC 1309B 1129

Notice, International medical graduates—
test of spoken English (TSE) as substitute
for test of English as a foreign language
(TOEFL) for special license, 10.4(3)“a”(4)
ARC 1306B 1129

Notice Terminated, Acupuncturists—English
proficiency test, 17.3, 17.4(1)“c”(2)
ARC 1308B 1129

Notice, Acupuncturists—English proficiency
test requirements, 17.3, 17.4(1)“c”(2)
ARC 1307B 1129

Notice, Peace officers’ retirement, accident and
disability system, 24.26 ARC 1288B 1130

Notice and Notice Terminated, Automated
medication distribution systems, ch 9
ARC 1304B 1131

Notice, Massage therapists, 130.4 to 130.8;
renumber ch 131 as ch 134; adopt ch 131;
renumber ch 132 as ch 133; adopt ch 132;
133.3(2), 133.6, 133.9, 133.10; adopt ch 135
ARC 1286B 1134

Notice, Respiratory care practitioners, rescind
ch 260 and adopt new ch 260; renumber
ch 261 as ch 262; adopt ch 261; 262.6, 262.9,
262.10(1); adopt chs 263, 264 ARC 1285B 1139

Summarized list 1114

Notice, Fire safety—bed and breakfast inns,
5.820 ARC 1287B 1144

Filed Emergency, Fire safety—bed and
breakfast inns, 5.820 ARC 1297B 1150

Notice, Individual income tax, income tax
withholding, corporate income tax,
7.5(3), 39.1, 40.21, 40.38(1), 40.56, 40.57,
41.3(3), 41.5(9), 42.2(11), 43.4(7), 46.7,
52.7, 53.11(8) ARC 1302B 1145

Filed, Salvage; weight equalizing hitch
and sway control devices for trailers;
transport of wrecked or disabled vehicles
by flatbeds, 405.2, 405.3, 405.6(1),
405.15; rescind ch 453; 454.1 ARC 1294B 1160

Filed, Annual oversize/overweight permit—
increase in width, 511.7(4), 511.8(1)“a,”
511.9(4) ARC 1295B 1161

Filed, Motor carrier regulations, 529.1
ARC 1296B 1161

Filed Emergency, Iowa educational savings
plan trust—penalty eliminated, 16.10,
16.11, 16.13(2) ARC 1298B 1151

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.

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

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

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

Fax: (515)281–4424

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

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

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

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

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

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

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Department of General Services

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

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

TO: Administrative Rules Coordinators and Text Processors of State Agencies

FROM: Kathleen K. Bates, Iowa Administrative Code Editor

SUBJECT: Publication of Rules in Iowa Administrative Bulletin

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

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

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

kathleen.bates@legis.state.ia.us

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

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

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

Containing: Iowa Administrative Code (updated through June 2001)
Iowa Administrative Bulletins (January 2001 through June 2001)
Iowa Court Rules (updated through June 2001)

For free brochures and order forms contact:

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

The Administrative Rules Review Committee will hold a special meeting on Friday, February 8, 2002, at 9 a.m. in Room 116, State Capitol, Des Moines, Iowa. The following rules will be reviewed:

HUMAN SERVICES DEPARTMENT[441] (Cont’d)

NATURAL RESOURCE COMMISSION[571] (Cont’d)

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 for[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 272.2, the Board of Educational Examiners hereby gives Notice of Intended Action to amend Chapter 14, “Issuance of Practitioner’s Licenses and Endorsements,” Iowa Administrative Code.

The proposed amendment allows teacher preparation institutions the opportunity to offer undergraduate as well as graduate coursework for the talented and gifted endorsement. The proposed amendment also allows a teacher education candidate to earn the talented and gifted endorsement as an undergraduate.

A waiver provision is not included. The Board has adopted a uniform waiver rule.

Any interested party or persons may present their views orally or in writing at the public hearing on Tuesday, February 12, 2002, at 1 p.m. in Room 3 South, Grimes State Office Building, 400 East 14th Street, Des Moines, Iowa 50319. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendment.

Persons who wish to make oral presentations at the public hearing may contact the Executive Director, Board of Educational Examiners, Grimes State Office Building, 400 East 14th Street, Des Moines, Iowa 50319, or at (515)281–5849 prior to the date of the public hearing.

Any person who intends to attend the public hearing and requires special accommodations for specific needs, such as a sign language interpreter, should contact the office of the Executive Director at (515)281–5849.

Any interested person may make written comments or suggestions on the proposed amendment before 4:30 p.m. on Friday, February 15, 2002. Written comments and suggestions should be addressed to Dr. Anne E. Kruse, Executive Director, Board of Educational Examiners, at the above address or E–mailed to anne.kruse@ed.state.ia.us.

This amendment is intended to implement Iowa Code chapter 272.

The following amendment is proposed.

Amend subrule 14.140(13) as follows:

14.140(13) Talented and gifted teacher–coordinator.

a. Authorization. The holder of this endorsement is authorized to serve as a teacher or a coordinator of programs for the gifted and talented from the prekindergarten level through grade twelve. This authorization does not permit general classroom teaching at any level except that level or

area for which the holder is eligible or holds the specific endorsement.

b. Program requirements—content. Completion of 12 undergraduate or graduate semester hours of coursework in the area of the gifted and talented to include the following:

(1) Psychology of the gifted.

(2) Programming for the gifted.

(3) Administration and supervision of gifted programs.

(4) Practicum experience in gifted programs.

NOTE: Teachers in specific subject areas will not be required to hold this endorsement if they teach gifted students in their respective endorsement areas.

Practitioners licensed and employed after August 31, 1995, and assigned as teachers or coordinators in programs for the talented and gifted will be required to hold this endorsement.

Pursuant to the authority of Iowa Code section 231.23 and 2001 Iowa Acts, chapter 64, the Iowa Department of Elder Affairs hereby proposes to rescind Chapter 24, “Adult Day Care and Facility–Based Respite Care,” and Chapter 25, “Non–Facility–Based Respite Care,” Iowa Administrative Code.

This amendment rescinds chapters dealing with adult day care, facility–based respite care and non–facility–based res– pite care. These rules are not needed as the Department does not provide oversight to the adult day service or respite industries, and the General Assembly has not appropriated necessary resources to establish systems of oversight and consumer complaint investigation.

These needed rescissions were identified while the Department was completing the rule assessment mandated by Executive Order Number 8.

This amendment does not provide for waivers because the amendment is merely meant to remove policy which is no longer used.

Consideration will be given to all written data, views, and arguments thereto received by the Department of Elder Affairs, 200 10th Street, Third Floor, Des Moines, Iowa 50309, on or before February 12, 2002.

This amendment is intended to implement Iowa Code section 231.23 and 2001 Iowa Acts, chapter 64.

The following amendment is proposed.

Rescind and reserve 321—Chapter 24 and 321—Chapter 25.

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

This amendment changes premium payment policy and procedures for recipients who are assessed premiums for coverage under the Medicaid for Employed People with Disabilities coverage group.

Under current policy, the approval month’s and all back months’ premiums are due within 60 days of the date billed. Premiums for the two months following the month of approval are due the fourteenth day of the month following the month of approval. Each subsequent month’s premium is due the fourteenth day of the month prior to the month the premium is to cover. A client may choose to pay or not to pay any premiums due during or after the month of coverage, without loss of ongoing eligibility. A client may also designate the month a payment is to cover.

Under this amendment, premiums will ordinarily be due the fourteenth day of the month the premium is to cover. The premium for the month when the case is approved is due on the fourteenth day of the following month. Premiums for the months before the month of billing will be due the fourteenth day of the third month following the month of billing. Premium payments will be applied in a specified order.

As ongoing payments will be due in the month they are to cover, the option to pay or not to pay premiums without loss of ongoing eligibility is limited to premiums due after the month they are to cover. Clients will no longer be able to designate the month a payment is to cover.

The Department shall apply premium payments in the following specified order:

1. To the current calendar month in which the payment is received if the premium for the current calendar month is unpaid.

2. To the following month if payment is received in the last five working days of the month and the premium for the following month is unpaid.

3. To prior months when full payment has not been received. Payments will be applied beginning with the most recent unpaid month before the current calendar month, then the oldest unpaid prior month and forward until all prior months have been paid.

4. When premiums for all months above have been paid, any excess shall be held and applied to any months for which eligibility is subsequently established, as specified in paragraphs “1,” “2,” and “3” above, and then to future months when a premium becomes due.

The Medicaid for Employed People with Disabilities (MEPD) coverage group is the only Medicaid coverage group that provides that a premium be assessed. No billing

system was in existence to use for the billing of premiums for this coverage group and, therefore, a billing system had to be developed based on rules for billing and collection of premiums.

Programming is required in three separate but interrelated computer systems to accurately issue correct medical benefits for this coverage group: the ABC system for determination of eligibility, the SSNI system to issue a medical card, and a billing system to issue a billing statement.

After implementation of this coverage group, the Department encountered significant problems running the billing system, and it became necessary to routinely require manual intervention to issue correct billing statements. It was determined that current policy relating to premiums cannot be programmed in all systems in a way that allows the billing system to operate without regular manual intervention.

There was no way to correct the system problems without changing premium policy. Policy staff and systems staff worked together to develop rules on premiums that could reasonably be programmed into the three interrelated systems.

This amendment does not provide for waivers in specific situations because all recipients should be subject to the same premium payment policies.

Consideration will be given to all written data, views, and arguments thereto received by the Office of Policy Analysis, Department of Human Services, Hoover State Office Building, 1305 East Walnut, Des Moines, Iowa 50319–0114, on or before February 13, 2002.

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

Ames – February 13, 2002 10 a.m.

Story County Office

Second Floor Conference Room

126 South Kellogg Street

Ames, Iowa 50010

Cedar Rapids – February 13, 2002 10 a.m.

Iowa Building

Seventh Floor Conference Room

411 Third Street S.E.

Cedar Rapids, Iowa 52401

Council Bluffs – February 13, 2002 10 a.m.

Administrative Conference Room

417 East Kanesville Boulevard

Council Bluffs, Iowa 51503

Davenport – February 13, 2002 10 a.m.

Bicentennial Building

Fifth Floor Conference Room

428 Western Avenue

Davenport, Iowa 52801

Des Moines – February 13, 2002 9 a.m.

City View Plaza

Conference Room 104

1200 University

Des Moines, Iowa 50314

Dubuque – February 13, 2002 9 a.m.

Dubuque County DHS Office

Town Clock Plaza

Nesler Center, Third Floor Conference Room

Dubuque, Iowa 52001

Sioux City – February 13, 2002 1:30 p.m.

Woodbury County DHS Office

Fourth Floor ICN Room

822 Douglas

Sioux City, Iowa 51101

Waterloo – February 13, 2002 10 a.m.

Black Hawk County Office

Pinecrest Office Building

Conference Room 443

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 Office of Policy Analysis at (515) 281–8440 and advise of special needs.

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

The following amendment is proposed.

Amend subrule 75.1(39), paragraph “b,” as follows:

b. A monthly premium shall be assessed when gross income of the eligible individual is greater than 150 percent of the federal poverty level for an individual. Gross income includes all earned and unearned income of the eligible individual.

Beginning with the month of application, the monthly premium amount shall be established for a six–month period based on projected average monthly income for the six–month period. The monthly premium established for a six–month period shall not be increased due to an increase in income during the six–month period but may be reduced or eliminated prospectively during the period if a reduction in projected average monthly income is documented.

Eligible persons with income above 150 percent of the federal poverty level are required to complete and return Form 470–3693, Earned Income Statement for Premium, with income information to determine premium amount.

(1) No change.

(2) Eligibility for a month is contingent upon the payment of any assessed premium for the month. Except as provided in subparagraph (3), continued eligibility is contingent upon the payment of all assessed premiums. Eligibility is contingent upon the payment of any assessed premiums. A medical card shall not be issued for a month until the premium for the month is received. The premium must be paid within three months of the month of eligibility or the month of initial billing, whichever is later, for the person to receive a medical card.

(3) When the department notifies the applicant of the amount of the premiums, the applicant shall pay any premiums due as follows:

1. Payment of the premium for the two months following the month of approval must be received by the fourteenth day of the month following the month of approval. The premium for each month is due the fourteenth day of the month the premium is to cover. EXCEPTIONS: The premium for the month of initial billing is due the fourteenth day of the following month; premiums for any months prior to the month of initial billing are due on the fourteenth day of the third month following the month of billing.

2. Payments for retroactive months, months prior to the month of approval, and approval month must be paid within 60 days of notice by the department to receive coverage for

those months of eligibility. If the fourteenth day falls on a weekend or a state holiday, payment is due the first working day following the holiday or weekend.

3. After the month following the month of approval, premiums must be received no later than the fourteenth day of the month prior to the month of coverage.

At the request of the client, premiums may be paid in advance (e.g., on a quarterly or semiannual basis) rather than a monthly basis. When any premium payment due in the month it is to cover is not received by the due date, Medicaid eligibility shall be canceled.

(4) (5) An individual’s case may be reopened no more than once every six months when a premium due is not received as described within this subparagraph, Medicaid eligibility is canceled for nonpayment of premium. However, the premium must be paid in full within the calendar month following the month the payment was due for reopening.

(5) (6) Premiums may be submitted in the form of cash, money orders, or personal checks to the department at the following address: Department of Human Services, Supply Unit A–Level, Room 77, Hoover State Office Building, 1305 East Walnut, Des Moines, Iowa 50319.

(6) (7) Except as provided in subparagraph (3), failure to pay the premium in accordance with policy established under this paragraph shall result in cancellation of Medicaid. Once an individual is canceled from Medicaid due to nonpayment of premiums, the individual must reapply to establish Medicaid eligibility unless the reopening provisions of this subrule apply.

(7) (8) A medical card shall not be issued for a month until any premium due has been received. When a premium due in the month it is to cover is not received by the due date, a notice of decision will be issued to cancel Medicaid, except as provided in subparagraph (3). The notice will include reopening provisions that apply if payment is received and appeal rights.

(8) (9) Form 470–3694, Billing Statement, and Form 470–3695, Reminder of Nonpayment, shall be used for billing and collection.

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

These amendments make the following changes to Medicaid policy governing eligibility that were identified while the Department was completing the rule assessment mandated by Executive Order Number 8. These amendments:

• Change the terms “women,” “woman,” and “her” to the gender–neutral terms “people,” “person,” and “the person” in the description of the coverage group for individuals who have been screened and found to need treatment for breast or cervical cancer. This is consistent with the language of the Federal Social Security Act, which does not limit the coverage group to women. At the present time, only women are being screened for breast or cervical cancer under the Centers for Disease Control and Prevention Breast and Cervical Cancer Early Detection Program established under Title XV of the Public Health Service Act, as required for eligibility under this coverage group. However, it has come to the Department’s attention that men can also get breast cancer.

• Remove the word “contributions” from the list of examples of the types of benefits for which a person applying for or receiving Medicaid must also apply. A constituent group commented that it knew of no benefit for which aperson could apply that would be defined as a contribution.

• Lengthen the time period from five working days to ten calendar days within which an applicant or recipient must express an intent to apply or refuse to apply for other benefits. A constituent group commented that five working days was an unreasonably short time period. In February of 1999, the Department standardized, to the extent possible, the minimum time an applicant or recipient should be given in which to provide information necessary to determine initial or ongoing eligibility at ten calendar days. This policy was overlooked in that effort.

• Clarify that social security numbers are required as a condition of eligibility only for those people for whom Medicaid is being requested. Social security numbers are not required for other people in the eligible group for whom Medicaid is not being requested.

• Clarify, in response to a comment from a constituent group, that references to the attorney general in the definition of “federal means–tested program” mean the United States Attorney General.

• Add the name of a social security office where the Program Operations Manual System is available. The name of this office was inadvertently omitted from the subrule at the time the rule was adopted.

• Clarify that pregnant women eligible for Medicaidin groups other than the Mothers and Children (MAC) group who are required to cooperate in establishing paternity and obtaining medical support will be automatically redeter– mined eligible under MAC when they fail to cooperate. Pregnant women in the MAC group are exempt from cooperation. This change is being made in response to a State Medicaid Director letter issued by the Centers for Medicare and Medicaid Services (CMS) dated December 19, 2000, and clarification from the Kansas City Regional CMS office.

• Clarify the intent to exempt as income only retroactive corrective payments issued by the Family Investment Program.

• Delete references to retrospective budgeting that were overlooked when monthly reporting was eliminated.

• Delete references to the X–PERT system.

• Update form numbers and names, organizational references, and Iowa Code references.

These amendments do not provide for waivers in specified situations because these amendments either confer a benefit or clarify existing language. Individuals may request a waiver of eligibility conditions under the Department’s general rule on exceptions at rule 441—1.8(17A,217).

Consideration will be given to all written data, views, and arguments thereto received by the Office of Policy Analysis, Department of Human Services, Hoover State Office Building, 1305 East Walnut, Des Moines, Iowa 50319–0114, on or before February 13, 2002.

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

The following amendments are proposed.

ITEM 1. Amend subrule 75.1(40) as follows:

75.1(40) Women People who have been screened and found to need treatment for breast or cervical cancer.

a. Medical assistance shall be available to women people who:

(1) to (3) No change.

b. Eligibility established under paragraph “a” continues until the woman person is:

(1) to (3) No change.

c. Presumptive eligibility. A woman person who has been screened for breast or cervical cancer under the Centers for Disease Control and Prevention Breast and Cervical Cancer Early Detection Program established under Title XV of the Public Health Service Act, who has been found to need treatment for either breast or cervical cancer (including a precancerous condition), and who is determined by a qualified provider to be presumptively eligible for medical assistance under paragraph “a” shall be eligible for medical assistance until the last day of the month following the month of the presumptive eligibility determination if no Medicaid application is filed in accordance with rule 441—76.1(249A) by that day or until the date of a decision on a Medicaid application filed in accordance with rule 441—76.1(249A) by the last day of the month following the month of the presumptive eligibility determination, whichever is earlier.

The woman person shall complete Form 470–2927, Health Services Application, in order for the qualified provider to make the presumptive eligibility determination. Presumptive eligibility shall begin no earlier than the date the qualified Medicaid provider determines eligibility.

Payment of claims for services provided to a woman person under this paragraph is not dependent upon a finding of Medicaid eligibility for the woman person.

(1) No change.

(2) The provider shall complete Form 470–3864, Application for Authorization to Make Presumptive Medicaid Eligibility Determinations (BCCT), and submit it to the department for approval in order to be designated as a provider qualified to make presumptive eligibility determinations. Once the department has approved the provider’s application, the provider and the department shall sign Form 470–3865, Memorandum of Understanding with a Qualified Provider for Women People with Breast or Cervical Cancer Treatment. When both parties have signed the memorandum, the department shall designate the provider as a qualified provider and notify the provider.

(3) When a qualified provider has made a presumptive eligibility determination for a woman person, the provider shall:

1. Contact the department to obtain a state identification number for the woman person who has been determined presumptively eligible.

2. No change.

3. Inform the woman person in writing, at the time the determination is made, that if she the person has not applied for Medicaid on Form 470–2927, Health Services Application, she the person has until the last day of the month following the month of the preliminary determination to file the application with the department. The qualified provider shall use Form 470–2580, Presumptive Medicaid Eligibility Notice of Decision, for this purpose.

4. Forward copies of Form 470–2927, Health Services Application, to the appropriate department office for eligibility determination if the woman person indicated on the application that she the person was applying for any of the other programs. The provider shall forward these copies and proof of screening for breast or cervical cancer under the Centers for Disease Control and Prevention Breast and Cervical Cancer Early Detection Program within two working days from the date of the presumptive eligibility determination.

(4) In the event that a woman person needing care does not appear to be presumptively eligible, the qualified provider shall inform the woman person that she the person may file an application at the county department office if she the person wishes to have an eligibility determination made by the department.

(5) Presumptive eligibility shall end under either of the following conditions:

1. The woman person fails to file an application for Medicaid in accordance with rule 441—76.1(249A) by the last day of the month following the month of the presumptive eligibility determination.

2. The woman person files a Medicaid application by the last day of the month following the month of the presumptive eligibility determination and is found ineligible for Medicaid.

(6) Adequate and timely notice requirements and appeal rights shall apply to an eligibility determination made on a Medicaid application filed pursuant to rule 441— 76.1(249A). However, notice requirements and appeal rights of the Medicaid program shall not apply to a woman person who is:

1. Denied presumptive eligibility by a qualified provider.

2. Determined to be presumptively eligible by a qualified provider and whose presumptive eligibility ends because the woman person fails to file an application by the last day of the month following the month of the presumptive eligibility determination.

(7) A new period of presumptive eligibility shall begin each time a woman person is screened for breast or cervical cancer under the Centers for Disease Control and Prevention Breast and Cervical Cancer Early Detection Program established under Title XV of the Public Health Service Act, is found to need treatment for breast or cervical cancer, and files Form 470–2927, Health Services Application, with a qualified provider.

ITEM 2. Amend rule 441—75.2(249A) as follows:

Amend the introductory paragraph and the first and second unnumbered paragraphs, as follows:

441—75.2(249A) Medical resources. Medical resources include health and accident insurance, eligibility for care through Veterans’ Administration, specialized child health services, Title XVIII of the Social Security Act (Medicare) and other resources for meeting the cost of medical care which may be available to the recipient. These resources must be used when reasonably available.

When a medical resource may be obtained by filing a claim or an application, and cooperating in the processing of that claim or application, that resource shall be considered to be reasonably available, unless good cause for failure to obtain that resource is determined to exist.

Payment will be approved The department shall approve payment only for those services or that part of the cost of a given service for which no medical resources exist unless pay and chase provisions as defined in rule 441— 75.25(249A) are applicable. Persons who have been approved by the Social Security Administration for supplemental security income shall complete Form MA–2124–0 470–2304, Supplementary Information—Medicaid Application—Retroactive Medicaid Eligibility Medicaid Information Questionnaire for SSI Persons, and return it to the local office of the department of human services. Persons eligible for Part B of the Medicare program shall make assignment to the department on Form MA–2124–0 470–2304, Supplementary Information—Medicaid Application—Retroactive Medicaid Eligibility Medicaid Information Questionnaire for SSI Persons.

Amend subrule 75.2(4) as follows:

75.2(4) The department shall make the determination of good cause shall be made by the Utilization Review Section of the Bureau of Medical Services. This determination shall be based on information and evidence provided by the recipient, or by one acting on the recipient’s behalf.

ITEM 3. Amend rule 441—75.3(249A), introductory paragraph and subrules 75.3(1) and 75.3(2), as follows:

441—75.3(249A) Acceptance of other financial benefits. An applicant or recipient shall take all steps necessary to apply for and, if entitled, accept any income or resources for which the applicant or recipient may qualify, unless the applicant or recipient can show an incapacity to do so. Sources of benefits may be, but are not limited to, contributions, annuities, pensions, retirement or disability benefits, veterans’ compensation and pensions, old–age, survivors, and disability insurance, railroad retirement benefits, black lung benefits, or unemployment compensation.

75.3(1) When it is determined that the supplemental security income (SSI)–related applicant or recipient may be entitled to other cash benefits, the department shall send a Notice Regarding Acceptance of Other Cash Benefit Benefits, Form MA–3017–0 470–0383, shall be sent to the applicant or recipient.

75.3(2) The SSI–related applicant or recipient must express an intent to apply or refuse to apply for other benefits within five working ten calendar days from the date the notice is issued. A signed refusal to apply or failure to return the form shall result in denial of the application or cancellation of Medicaid unless the applicant or recipient is mentally or physically incapable of filing the claim for other cash benefits.

ITEM 4. Amend rule 441—75.4(249A) as follows:

Amend subrule 75.4(1) as follows:

75.4(1) The agency within the department of human services responsible for administration of the department’s lien is the division of medical services. When payment is made by the department for medical care or expenses through the medical assistance program on behalf of a recipient, the department shall have a lien, to the extent of those payments, to all monetary claims which the recipient may have against third parties. A lien under this section is not effective unless the department files a notice of lien with the clerk of the district court in the county where the recipient resides and with the recipient’s attorney when the recipient’s eligibility for medical assistance is established. The notice of lien shall be filed before the third party has concluded a final settlement with the recipient, the recipient’s attorney, or other representative. The third party shall obtain a written determination from the department concerning the amount of the lien before a settlement is deemed final for purposes of this section. A compromise, including, but not limited to, notification, settlement, waiver or release, of a claim, under this section does not defeat the department’s lien except pursuant to the written agreement of the director or the director’s designee under which the department would receive less than full reimbursement of the amounts it expended. A settlement, award, or judgment structured in any manner not to include medical expenses or an action brought by a recipient or on behalf of a recipient which fails to state a claim for recovery of medical expenses does not defeat the department’s lien if there is any recovery on the recipient’s claim.

All notifications to the department required by law shall be directed to the Division of Medical Services—Third Party Liability, Fifth Floor, Hoover State Office Building, 1305 East Walnut, Des Moines, Iowa 50319–0114. Notification shall be considered made as of the time the notification is deposited so addressed, postage prepaid in the United States Postal Service system.

Amend subrule 75.4(3) as follows:

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

(5) The date that the recipient, or one acting on the recipient’s behalf, receives a partial or total settlement for the payment of medical expenses that would otherwise be paid by Medicaid.

The recipient may report the change in person, by telephone, by mail or by using the Ten Day Report of Change, Form PA–4106–0 470–0499, which is mailed with the Aid to Dependent Children Assistance Family Investment Program warrants and is issued to the client when Medicaid applications are approved, when annual reviews are completed, when a completed Ten Day Report of Change is submitted, and when the client requests a form.

Amend paragraphs “d” and “e” as follows:

d. The recipient, or one acting on the recipient’s behalf, shall complete the Recipient Inquiry, Form MA–4047–0 470–0398, when the department has reason to believe that the recipient has received an accident–related injury. Failure to cooperate in completing and returning this form, or in giving complete and accurate information, shall result in the termination of Medicaid benefits.

e. In those instances where the recovery rights of the department are adversely affected by the actions of a parent or payee, acting on the behalf of a minor, or legally incompetent adult recipient, the Medicaid benefits of the parent or payee shall be terminated. In those instances where a parent or payee fails to cooperate in completing or returning the Recipient Inquiry, Form MA–4047–0 470–0398, or the Supplemental Insurance Questionnaire, Form 470–2826, or fails to give complete and accurate information concerning theaccident–related injuries of a minor or legally incompetent adult recipient, the department shall terminate the Medicaid benefits of the parent or payee shall be terminated.

ITEM 5. Amend subrule 75.5(3), paragraph “a,” subparagraph (2), as follows:

(2) When the institutionalized spouse or someone acting on that person’s behalf applies for Medicaid benefits. If the application is not made in the month of entry, or if the application is processed through the X–PERT system, the applicant shall also complete Form 470–2577 and provide necessary documentation.

ITEM 6. Amend rule 441—75.7(249A) as follows:

Amend the introductory paragraph as follows:

441—75.7(249A) Furnishing of social security number. As a condition of eligibility applicants or recipients of people for whom Medicaid is being requested or received must furnish their social security account numbers or proof of application for the numbers if they have not been issued or are not known and provide their numbers upon receipt.

Adopt the following new subrule 75.7(3) as follows:

75.7(3) Social security account numbers may be requested for people in the eligible group for whom Medicaid is not being requested or received, but provision of the number shall not be a condition of eligibility for the people in the eligible group for whom Medicaid is being requested or received.

ITEM 7. Amend subrule 75.11(1), definition of “federal means–tested program,” numbered paragraph “7,” as follows:

7. Programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short–term shelter) specified by the attorney general of the United States in the attorney general’s sole and unreviewable discretion after consultation with appropriate federal agencies and departments, which that:

• Deliver in–kind services at the community level, including through public or private nonprofit agencies. ;

• Do not condition the provision of assistance, the amount of assistance provided, or the cost of assistance provided on the individual recipient’s income or resources; and

• Are necessary for the protection of life or safety.

ITEM 8. Amend subrule 75.13(2), introductory paragraph, as follows:

75.13(2) SSI–related Medicaid. Except as otherwise provided in subrule 75.13(3) and in 441—Chapters 75 and 76, persons who are 65 years of age or older, blind, or disabled are eligible for Medicaid only if eligible for the Supplemental Security Income (SSI) program administered by the United States Social Security Administration. The statutes, regulations, and policy governing eligibility for SSI are found in Title XVI of the Social Security Act (42 U.S.C. Sections 1381 to 1383f), in the federal regulations promulgated pursuant to Title XVI (20 CFR Sections 416.101 to 416.2227), and in Part 5 of the Program Operations Manual System published by the United States Social Security Administration. The Program Operations Manual System is available at Social Security Administration offices in Ames, Burlington, Carroll, Cedar Rapids, Clinton, Council Bluffs, Creston, Davenport, Decorah, Des Moines, Dubuque, Fort Dodge, Iowa City, Marshalltown, Mason City, Oskaloosa, Ottumwa, Sioux City, Spencer, Storm Lake, and Waterloo, or through the Department of Human Services, Division of Medical Services, Hoover State Office Building, 1305 East Walnut, Des Moines, Iowa 50319–0114.

ITEM 9. Amend rule 441—75.14(249A) as follows:

Amend subrules 75.14(4) and 75.14(6) as follows:

75.14(4) Each applicant for or recipient of Medicaid shall assign to the department any rights to medical support and payments for medical care from any other person for which the person can legally make assignment. This shall include rights to medical support and payments for medical care on the applicant’s or recipient’s own behalf or on behalf of any other family member for whom the applicant or recipient is applying. An assignment is effective the same date the county office enters the eligibility information into the automated benefit calculation system or into the X–PERT system and is effective for the entire period for which eligibility is granted. Support payments not intended for medical support shall not be assigned to the department.

75.14(6) Pregnant women establishing eligibility under the mothers and children (MAC) coverage group as provided at subrule 75.1(28) shall be exempt from the provisions in this rule for any born child for whom the pregnant woman applies for or receives Medicaid. Additionally, any previously pregnant woman eligible for postpartum coverage under the provision of subrule 75.1(24) shall not be subject to the provisions in this rule until after the end of the month in which the 60–day postpartum period expires. Pregnant women establishing eligibility under any other coverage groups except those set forth in subrule 75.1(24) or 75.1(28) shall be subject to the provisions in this rule when establishing eligibility for born children. A pregnant woman applying for or receiving Medicaid under any coverage group which requires her cooperation in establishing paternity and obtaining medical support for born children shall not be eligible under any other coverage group if she fails to cooperate without good cause. However, when a pregnant woman who is subject to these provisions fails to cooperate, the woman shall lose eligibility under her current coverage group and her eligibility for Medicaid shall be automatically redetermined under subrule 75.1(28).

Amend subrule 75.14(9), paragraph “a” and paragraph “c,” introductory paragraph, as follows:

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

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

ITEM 10. Amend rule 441—75.23(249A) as follows:

Amend the introductory paragraph as follows:

441—75.23(249A) Disposal of assets for less than fair market value after August 10, 1993. In determining Medicaid eligibility for persons described in 441—Chapters 75, and 83, and 86, a transfer of assets occurring after August 10, 1993, will affect Medicaid payment for medical services as provided in this rule.

Amend subrule 75.23(8), definition of “transfer or disposal of assets,” numbered paragraphs “4” and “5,” as follows:

4. Disclaiming an inheritance of any property, interest, or right pursuant to Iowa Code section 633.704 on or after July 1, 2000 (see Iowa Code Supplement section 249A.3(11)“c” as amended by 2000 Iowa Acts, chapter 1060, section 3);

5. Failure to take a share of an estate as a surviving spouse (also known as “taking against a will”) on or after July 1, 2000, to the extent that the value received by taking against the will would have exceeded the value of the inheritance received under the will (see Iowa Code Supplement section 249A.3(11)“d” as amended by 2000 Iowa Acts, chapter 1060, section 3); or

ITEM 11. Amend rule 441—75.57(249A) as follows:

Amend subrule 75.57(1) as follows:

Amend paragraph “e,” subparagraph (3), as follows:

(3) Support payment payments reported by child support recovery during the budget month a past month for which eligibility is being determined shall be used to determine prospective and retrospective eligibility for the corresponding eligibility month. Support payments anticipated to be received in future months shall be used to determine eligibility for future months. When support payments terminate in the month of decision of an FMAP–related Medicaid application, both support payments already received and support payments anticipated to be received in the month of decision shall be used to determine eligibility for that month.

Amend paragraph “f” as follows:

f. The applicant or recipient shall cooperate in supplying verification of all unearned income and of any change in income, as defined at rule 441—75.50(249A). When the information is available, the county office shall verify job insurance benefits by using information supplied to the department by Iowa workforce development. When the county office uses this information as verification, job insurance benefits shall be considered received the second day after the date that the check was mailed by Iowa workforce development. When the second day falls on a Sunday or federal legal holiday, the time shall be extended to the next mail delivery day. When the client notifies the county office that the amount of job insurance benefits used is incorrect, the client shall be allowed to verify the discrepancy. The client must report the discrepancy prior to the eligibility month or within ten days of the date on the Notice of Decision, Form PA–3102–0 470–0485, 470–0486, or 470–0486(S), applicable to the eligibility month, whichever is later.

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

i. A retroactive corrective family investment program (FIP) payment.

Amend subrule 75.57(9), paragraph “c,” subparagraph (2), introductory paragraph, as follows:

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

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 80, “Procedure and Method of Payment,” appearing in the Iowa Administrative Code.

These amendments allow advanced registered nurse practitioners with psychiatric certification to enroll as Iowa Medicaid independent providers for covered services.

Psychiatric nurse practitioners are already able to be credentialed as independent practitioners by the Iowa Plan for Behavioral Health (i.e., “Iowa Plan”) for the provision of services allowed under their scope of practice for Iowa Medicaid recipients enrolled in the Iowa Plan. The addition of this independent status will have little or no impact upon the Medicaid population as a whole, because relative to mental and behavioral health services, most Medicaid recipients are enrolled in the Iowa Plan. Medicaid recipients that would benefit from this proposed change would be those not covered under the Iowa Plan: (1) dual coverage recipients (i.e., those covered by both Medicare and Medicaid) so that their “crossover” claims from the Medicare program would be payable by Medicaid, where applicable; and (2) recipients in the Medically Needy with spenddown eligibility category.

It is not expected that there would be a significant or discernable dollar impact related to this proposed change. Although Iowa Medicaid would now be able to pay Medicare crossover claims currently not being paid for services rendered by these providers, the amount is not anticipated to be significant. For other services rendered by these providers under fee–for–service Medicaid, there would be an offset, to the extent that services rendered by advanced registered nurse practitioners are payable at 85 percent of physician rates. Therefore, any increase in the claims volume would be offset by these savings.

These amendments do not provide for waivers in specified situations because they confer a benefit by allowing this provider group to provide treatment to their patients by allowing independent participation in Iowa Medicaid.

Consideration will be given to all written data, views, and arguments thereto received by the Office of Policy Analysis, Department of Human Services, Hoover State Office Building, 1305 East Walnut, Des Moines, Iowa 50319–0114, on or before February 13, 2002.

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

The following amendments are proposed.

ITEM 1. Amend rule 441—77.36(249A) as follows:

441—77.36(249A) Family, or pediatric, or psychiatric nurse practitioner. Advanced registered nurse practitioners are eligible to participate in the Medicaid program if they are duly licensed by the state of Iowa and they possess evidence of certification as a certified family nurse practitioner, or certified pediatric nurse practitioner, or certified psychiatric nurse practitioner as set forth in board of nursing rules 655— Chapter 7. Advanced registered nurse practitioners in other states shall be eligible to participate if they are duly licensed in that state and are certified as a family nurse practitioner, or a pediatric nurse practitioner, or a psychiatric nurse practitioner. Family, or pediatric, or psychiatric nurse practitioners who have been certified eligible to participate in Medicare shall be considered as having met the above–stated guidelines.

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

ITEM 2. Amend subrule 78.1(21) as follows:

78.1(21) Utilization review. Utilization review shall be conducted of Medicaid recipients who access more than 24 outpatient visits in any 12–month period from physicians, ; family, or pediatric, or psychiatric nurse practitioners, ; federally qualified health centers, ; other clinics, ; and emergency rooms. For the purposes of utilization review, the term “physician” does not include a psychiatrist. Refer to rule 441—76.9(249A) for further information concerning the recipient lock–in program.

ITEM 3. Amend subrule 78.21(1) as follows:

78.21(1) Utilization review. Utilization review shall be conducted of Medicaid recipients who access more than 24 outpatient visits in any 12–month period from physicians, ; family, or pediatric, or psychiatric nurse practitioners, ; federally qualified health centers, ; other clinics, ; and emergency rooms. Refer to rule 441—76.9(249A) for further information concerning the recipient lock–in program.

ITEM 4. Amend rule 441—78.23(249A) as follows:

441—78.23(249A) Other clinic services. Payment will be made on a fee schedule basis to facilities not part of a hospital, funded publicly or by private contributions, which provide medically necessary treatment by or under the direct supervision of a physician or dentist to outpatients. Payment will be made for sterilization in accordance with 78.1(16).

Utilization review shall be conducted of Medicaid recipients who access more than 24 outpatient visits in any 12–month period from physicians, ; family, or pediatric, or psychiatric nurse practitioners, ; federally qualified health centers, ; other clinics, ; and emergency rooms. Refer to rule 441—76.9(249A) for further information concerning the recipient lock–in program.

Risk assessments, using Form 470–2942, Medicaid Prenatal Risk Assessment, shall be completed twice during a Medicaid recipient’s pregnancy. If the risk assessment reflects a high–risk pregnancy, referral shall be made for enhanced services. See description of enhanced services at subrule 78.25(3).

Clinics which that wish to administer vaccines which are available through the vaccines for children program to Medicaid recipients shall enroll in the vaccines for children program. In lieu of payment, vaccines available through the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. Clinics shall receive reimbursement for the administration of vaccines to Medicaid recipients.

ITEM 5. Amend subrule 78.31(5) as follows:

78.31(5) Services rendered by family, or pediatric, or psychiatric nurse practitioners employed by a hospital. Hospitals may be reimbursed for services rendered by family, or pediatric, or psychiatric nurse practitioners who are employed by the hospital and providing services in a facility or other location that is owned by the hospital, but is not on or part of the hospital’s licensed premises, if reimbursement is not otherwise available for the services rendered by these employed nurse practitioners. As a condition of reimbursement, employed family, or pediatric, or psychiatric nurse practitioners rendering these services must enroll with the Medicaid program, receive a provider number, and designate the employing hospital to receive payment. Claims for services shall be submitted by the employed family, or pediatric, or psychiatric nurse practitioner. Payment shall be at the same fee–schedule rates as those in effect for independently practicing family, or pediatric, or psychiatric nurse practitioners under 441—subrule 79.1(2).

ITEM 6. Amend rule 441—78.40(249A) as follows:

441—78.40(249A) Independently practicing family, or pediatric, or psychiatric nurse practitioners. Payment shall be approved for services provided by independently practicing family, or pediatric, or psychiatric nurse practitioners within their scope of practice, including advanced nursing and physician–delegated functions under a protocol with a collaborating physician, with the exception of services not payable to physicians under rule 441—78.1(249A).

Family, or pediatric, or psychiatric nurse practitioners are not considered to be independently practicing when they are auxiliary personnel of a physician as defined in 78.1(13)“b,” or when they are employees of a hospital or clinic. An established protocol between a physician and the family, or pediatric, or psychiatric nurse practitioner shall not cause a family, or pediatric, or psychiatric nurse practitioner to be considered auxiliary personnel of a physician, or an employee of a hospital or clinic. The family, or pediatric, or psychiatric nurse practitioner shall have promptly available the necessary equipment and personnel to handle emergencies.

Utilization review shall be conducted of Medicaid recipients who access more than 24 outpatient visits in any 12–month period from physicians, ; family, or pediatric, or psychiatric nurse practitioners, ; federally qualified health centers, ; other clinics, ; and emergency rooms. Refer to rule 441—76.9(249A) for further information concerning the recipient lock–in program.

Independently practicing family, or pediatric, or psychiatric nurse practitioners who wish to administer vaccines which are available through the vaccines for children program to Medicaid recipients shall enroll in the vaccines for children program. In lieu of payment, vaccines available through the vaccines for children program shall be accessed from the department of public health for Medicaid recipients. Independently practicing family, or pediatric, or psychiatric nurse practitioners shall receive reimbursement for the administration of vaccines to Medicaid recipients.

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

ITEM 7. Amend subrule 79.1(2), basis of reimbursement provider category “family or pediatric nurse practitioners,” as follows:

ITEM 8. Amend subrule 79.14(1), paragraph “b,” subparagraph (11), as follows:

(11) Family, or pediatric, or psychiatric nurse practitioners.

ITEM 9. Amend subrule 80.2(2), paragraph “ak,” as follows:

ak. Independently practicing family, or pediatric, or psychiatric nurse practitioners shall submit claims on Form HCFA–1500, Health Insurance Claim Form.

Pursuant to Iowa Code section 515A.6(7), notice is hereby given that the National Council on Compensation Insurance has made a rate filing which affects the premium rates for workers’ compensation insurance.

The rate filing proposes that a catastrophe provision of 4% be applied to the rates for all class codes. The filing has a proposed effective date of January 1, 2002, applicable to new and renewal and outstanding policies.

A workers’ compensation policyholder or an established organization with one or more workers’ compensation policyholders among its members may request a hearing before the Commissioner of Insurance regarding this rate filing. Such a request must be filed within 15 days of the date of this publication, that is, by February 7, 2002, and shall be made to the Commissioner of Insurance at the Insurance Division of the State of Iowa, 330 Maple, Des Moines, Iowa 50319. Absent such a request, the Commissioner will issue an order concerning the rates within another 10 days, that is, by February 18, 2002.

Pursuant to Iowa Code section 515A.6(7), notice is hereby given that the National Council on Compensation Insurance has made a rate filing which affects the premium rates for workers’ compensation insurance.

The rate filing proposes that claims directly attributable to the terrorist acts of September 11, 2001, be excluded from experience rating calculations. The filing has a proposed effective date of May 27, 2002.

A workers’ compensation policyholder or an established organization with one or more workers’ compensation policyholders among its members may request a hearing before the Commissioner of Insurance regarding this rate filing. Such a request must be filed within 15 days of the date of this publication, that is, by February 7, 2002, and shall be made to the Commissioner of Insurance at the Insurance Division of the State of Iowa, 330 Maple, Des Moines, Iowa 50319. Absent such a request, the Commissioner will issue an order concerning the rates within another 10 days, that is, by February 18, 2002.

Pursuant to the authority of Iowa Code section 147.76, the Medical Examiners Board hereby terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on November 14, 2001, as ARC 1091B, amending Chapter 10, “Resident, Special and Temporary Licensure,” Iowa Administrative Code.

The Board approved the termination in a regularly scheduled meeting on December 13, 2001.

The Notice proposed to amend Chapter 10 by establishing a passing score on TOEFL for international medical graduates who are seeking special licensure.

The Board is terminating the rule making commenced in ARC 1091B and filing a revised Notice of Intended Action to address the issue of testing for English fluency.

Pursuant to the authority of Iowa Code sections 147.76 and 272C.3, the Board of Medical Examiners hereby gives Notice of Intended Action to amend Chapter 10, “Resident, Special and Temporary Licensure,” Iowa Administrative Code.

The Board approved the proposed amendment to Chapter 10 during its regularly held meeting on December 13, 2001.

The proposed amendment substitutes the Test of Spoken English (TSE) for the Test of English as a Foreign Language (TOEFL) as the measure used to test the English proficiency of international medical graduates who are seeking a special license to serve on the faculty of a college of medicine in Iowa. Fifty is the passing score on the TSE.

Any interested person may present written comments on this proposed amendment not later than February 12, 2002, at 4 p.m. Such written materials should be sent to Ann E. Mowery, Executive Director, Board of Medical Examiners, 400 S.W. Eighth Street, Suite C, Des Moines, Iowa 50309– 4686, or by E–mail to ann.mowery@ibme.state.ia.us.

There will be a public hearing on February 12, 2002, at4 p.m. in the Board office, at which time persons may present their views either orally or in writing. The Board of Medical Examiners office is located at 400 S.W. Eighth Street, Suite C, Des Moines, Iowa.

This amendment is intended to implement Iowa Code section 148.11(2)“f.”

The following amendment is proposed.

Amend subparagraph 10.4(3)“a”(4) as follows:

(4) Demonstrate proficiency in English by providing a valid ECFMG certificate or verification of a passing minimum score of 50 on TOEFL, the Test of English as a Foreign Language the TSE, the Test of Spoken English administered by the Educational Testing Service;

Pursuant to the authority of Iowa Code section 147.76, the Medical Examiners Board hereby terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on November 14, 2001, as ARC 1092B, amending Chapter 17, “Licensure of Acupuncturists,” Iowa Administrative Code.

The Board approved the termination in a regularly scheduled meeting on December 13, 2001.

The Notice proposed to amend Chapter 17 by establishing English proficiency test requirements for those acupunctur–ists who have taken one or both parts of the certifying examination in a language other than English.

The Board is terminating the rule making commenced in ARC 1092B and filing a revised Notice of Intended Action to address the issue of testing for English fluency.

Pursuant to the authority of Iowa Code sections 147.76 and 272C.3, the Board of Medical Examiners hereby gives Notice of Intended Action to amend Chapter 17, “Licensure of Acupuncturists,” Iowa Administrative Code.

The Board approved the proposed amendments to Chapter 17 during its regularly held meeting on December 13, 2001.

The proposed amendments clarify the English proficiency test requirements for those acupuncturists who have taken one or both parts of the certifying examination in a language other than English.

Any interested person may present written comments on these proposed amendments not later than February 12, 2002, at 4 p.m. Such written materials should be sent to Ann E. Mowery, Executive Director, Board of Medical Examiners, 400 S.W. Eighth Street, Suite C, Des Moines, Iowa 50309–4686, or by E–mail to ann.mowery@ibme.state.ia.us.

There will be a public hearing on February 12, 2002, at 4:15 p.m. in the Board office, at which time persons may present their views either orally or in writing. The Board of Medical Examiners office is located at 400 S.W. Eighth Street, Suite C, Des Moines, Iowa.

These amendments are intended to implement Iowa Code section 147E.7 and chapter 148E.

The following amendments are proposed.

ITEM 1. Amend rule 653—17.3(148E) by rescinding the definition of “English proficiency.”

ITEM 2. Amend subparagraph 17.4(1)“c”(2) as follows:

(2) The board may, at the recommendation of the committee, choose any of the following examinations to test the English proficiency of any applicant: TOEFL, TOEIC, or TSE. An applicant who passed NCCAOM written or practical examination components in a language other than English shall achieve a minimum score of 50 on the Test of Spoken English (TSE) administered by the Educational Testing Service.

Pursuant to the authority of Iowa Code section 97A.5, the Board of Trustees of the Iowa Department of Public Safety Peace Officers’ Retirement, Accident, and Disability System hereby gives Notice of Intended Action to amend Chapter 24, “Peace Officers’ Retirement, Accident and Disability System,” Iowa Administrative Code.

The proposed amendment clarifies the options available to members of the system who terminate employment from positions covered by the system prior to retirement.

A public hearing on this proposed amendment will be held on March 1, 2002, at 10 a.m. in the Third Floor Conference Room of the Wallace State Office Building, East 9th and Grand, Des Moines, Iowa 50319. Persons may present their views either orally or in writing at the public hearing. Persons who wish to make oral presentations should contactthe Agency Rules Administrator, Department of Public Safety, Wallace State Office Building, Des Moines, Iowa 50319, by mail, by telephone at (515)281–5524, or by E–mail to admrule@ dps.state.ia.us, at least one day prior to the public hearing.

Any written comments or information regarding the amendment may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated above on or before February 28, 2002, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Department office at least one day prior to the public hearing. Please note that the point of contact for comments or inquiries regarding the amendment is the Department of Public Safety, not the Department of Personnel.

This amendment is intended to implement Iowa Code chapter 97A.

The following amendment is proposed.

Amend rule 581—24.26(97A), catchwords and subrule 24.26(1), as follows:

24.26(1) Members who terminate employment may, in lieu of vesting, withdraw their contributions together with interest thereon. Members who terminate covered employment prior to age 55 other than by death or disability have certain rights to their accumulated contributions.

Pursuant to the authority of Iowa Code sections 124.301 and 147.76, the Board of Pharmacy Examiners hereby terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on July 11, 2001, as ARC 0801B, proposing to adopt new Chapter 9, “Automated Medication Distribution Systems,” Iowa Administrative Code.

The Notice proposed to establish standards for the verification and accuracy of automated medication distribution systems (AMDS) in the practice of pharmacy.

The Board is terminating the rule making commenced in ARC 0801B based on comments received from numerous interested parties. The Board incorporated numerous changes and clarifications to the requirements and responsibilities proposed in this chapter. The amended rules will be Noticed to solicit public comment on the proposed changes.

Pursuant to the authority of Iowa Code section 147.76 and 2001 Iowa Acts, House File 726, section 5(10), paragraph “i,” the Board of Pharmacy Examiners hereby gives Notice of Intended Action to adopt new Chapter 9, “Automated Medication Distribution Systems,” Iowa Administrative Code.

The proposed rules were approved at the December 20, 2001, teleconference meeting of the Board of Pharmacy Examiners.

The new chapter establishes standards for the verification and accuracy of AMDS in the practice of pharmacy as required by 2001 Iowa Acts, House File 726, section 5(10), paragraph “i,” enacted by the Seventy–ninth General Assembly. The rules define various terms relating to AMDS and assign responsibility for medication distribution and other functions relating to AMDS. The rules establish requirements for policies and procedures and for record keeping regarding utilization of AMDS and establish continuous quality assurance, monitoring, and performance improvement requirements to be implemented by any pharmacy utilizing AMDS in pharmacy practice.

Requests for waiver or variance of the discretionary provisions of these rules will be considered pursuant to 657— Chapter 34.

Any interested person may present written comments, data, views, and arguments on the proposed amendments not later than 4:30 p.m. on February 12, 2002. Such written materials should be sent to Terry Witkowski, Administrative Assistant, Board of Pharmacy Examiners, 400 S.W. Eighth Street, Suite E, Des Moines, Iowa 50309–4688, or by E–mail to terry.witkowski@ibpe.state.ia.us.

These rules are intended to implement 2001 Iowa Acts, House File 726, section 5(10), paragraph “i.”

The following new chapter is proposed.

CHAPTER 9
AUTOMATED MEDICATION
DISTRIBUTION SYSTEMS

657—9.1(79GA,HF726) Definitions. For the purposes of this chapter, the following definitions shall apply:

“Automated medication distribution system” or “AMDS” includes, but is not limited to, mechanical or electronic systems that perform operations or activities relative to thestoring, packaging, compounding, labeling, dispensing, ad– ministering, or distributing of medications and which collect, control, and maintain all transaction information.

“Board” means the board of pharmacy examiners.

“Centralized unit dose AMDS” means an AMDS located in the pharmacy where automated technology is utilized in the dispensing of patient–specific unit dose medications.

“Component” means any single physical or electronic storage or access device that, in combination with other devices, makes up the AMDS.

“Decentralized unit dose AMDS” means an AMDS where automated technology is utilized in the dispensing of unit dose medications and medication–dispensing components are maintained in remote locations such as patient care areas or medication rooms in a hospital or nursing facility.

“Emergency medications” means those medications critical for patient care and approved by the institution’s pharmacy and therapeutics committee or equivalent committee. Medications critical for patient care include medicationsrequiring administration within minutes or within less time than the pharmacy can be practically expected to respond, such as the administration of naloxone for treatment of anopioid overdose.

“Floor–stock medications” means those medications consisting of emergency medications and controlled substances which are routinely maintained on patient care units and accessible by nursing staff for patient administration.

“Information access” means the entry into a record–keeping component of the AMDS, by electronic or other means, for the purpose of adding, updating, or retrieving any patient record or medication record or data.

“Medication access” means the physical entry into any component of the AMDS for the purpose of stocking or removing medications.

“Medication bin” means a compartment in an AMDS component that is designed to contain one specific medication.

“Outpatient AMDS” means an AMDS where automated technology is utilized in the dispensing of prescriptions for ambulatory patients.

“Remote location” means any location outside the licensed pharmacy where any component of an AMDS is located and includes the following:

1. Patient care areas or medication rooms in a hospital, skilled nursing facility, or long–term care facility.

2. Ambulatory care or surgery centers.

3. Clinics and health practitioners’ offices.

4. Other locations approved by the board.

657—9.2(79GA,HF726) Pharmacist in charge responsibilities. The pharmacist in charge shall be responsible for the following:

1. Implementing an ongoing quality assurance program that monitors and strives to improve performance of each AMDS.

2. Establishing and ensuring compliance with all policies and procedures relating to the AMDS.

3. Assigning, discontinuing, or changing medication and information access to the AMDS.

4. Ensuring that medication access, including access to controlled substances, complies with state and federal regulations.

5. Ensuring that each AMDS is filled or stocked accurately and in accordance with established, written policies and procedures.

6. Ensuring that each AMDS is in good working order and performs its designated tasks, including ensuring the correct strength, dosage form, and quantity of the prescribed medication.

7. Ensuring that the AMDS has adequate security safeguards regarding medication access and information access.

8. Ensuring that confidentiality of patient–specific information is maintained.

9. Ensuring that all personnel utilizing or accessing the AMDS have been appropriately trained.

10. Ensuring that the board is provided with written notice at least 30 days prior to an installation, removal, or upgrade that significantly changes the operation of an AMDS. The notice shall include:

• The name, address, and license number of the pharmacy;

• The location of the automated equipment;

• Identification of the pharmacist in charge;

• The name, manufacturer, and model of the system;

• A description of the change or upgrade, if applicable; and

• If installing a new or significantly changed AMDS, a copy of the quality assurance plan when applicable.

657—9.3(79GA,HF726) Quality assurance and performance improvement. The goal of AMDS is the accurate dispensing of medications. In all dispensing activities, the pharmacy shall strive for 100 percent accuracy.

9.3(1) Quality assurance. Pharmacies shall develop a quality assurance and monitoring plan prior to implementation of the AMDS. The quality assurance plan shall target the preparation, delivery, and verification of AMDS unit contents during fill and refill processes.

9.3(2) Performance improvement. Performance improvement projects shall utilize quality assurance data to monitor and improve systems.

9.3(3) Records. All records and documentation of quality assurance and monitoring and performance improvement projects shall be maintained by the pharmacy and be available for inspection and copying by the board or its representative for a minimum of two years from the date of the rec– ord.

657—9.4(79GA,HF726) Policies and procedures. All policies and procedures shall be written and shall be maintained in the pharmacy responsible for the AMDS. All pharmacies utilizing AMDS shall develop, implement, and adhere to policies and procedures that address, at a minimum, the following:

1. Type of equipment, system components, and location including:

• Name and address of the pharmacy or remote location where any component of the AMDS is being used, and

• Manufacturer’s name and model of each system component.

2. Medication access and information access procedures.

3. Security and confidentiality of records in compliance with 657—21.1(124,155A) and 21.2(124,155A).

4. Description of how the component is being utilized including processes for dispensing and distributing medications.

5. Staff education and training.

6. Review, including prospective drug use review, of medication orders and prescriptions in accordance with federal and state laws and regulations.

7. Patient counseling on outpatient prescriptions.

8. Quality assurance and quality improvement.

9. Downtime procedures.

10. Periodic system maintenance.

11. Medication security and control including:

• Medication loading, storage, and records.

• Medications removed but not used.

• Inventory.

• Cross contamination.

• Lot number control.

• Wasted or discarded medications.

• Controlled substances.

657—9.5(79GA,HF726) System, site, and process requirements. An AMDS may be utilized on site by licensed pharmacies or in remote locations as defined in rule 9.1(79GA,HF726). Each AMDS shall comply with the following minimum requirements:

9.5(1) System access.

a. The AMDS shall automatically and electronically record medication access.

b. Medication access and information access records shall include, at a minimum, the date the AMDS was accessed, the identity of the individual who accessed the system, the type of transaction completed, and the identity of the accessed component.

c. Information access for the purpose of retrieving or reviewing any patient or medication record or data, when the access does not permit change or addition to the record or data, shall be exempt from the access record requirements of paragraph “b” of this subrule.

d. The AMDS shall include the ability to assign, discontinue, and change medication access and information access to the AMDS.

e. A licensed pharmacist or appropriately trained pharmacy technician under the oversight of a licensed pharmacist shall fill and stock medications in the AMDS.

f. A record of medications filled or stocked into an AMDS shall be maintained and shall include identification of the person filling or stocking the system and, if applicable, the person checking for accuracy.

9.5(2) Dispensing and distributing.

a. All containers of medications stored in each AMDS shall be packaged and labeled in compliance with federal and state laws and regulations.

b. All aspects of handling controlled substances shall comply with the requirements of all state and federal laws and regulations.

c. Each AMDS shall provide a mechanism for securing and accounting for medications removed from and subsequently returned to the system. Medications removed from a system component but not administered to a patient shall be returned to the pharmacy or placed in the component in a manner that would prevent access to the returned medications except for the purpose of returning the medication to the pharmacy. The provisions of this paragraph regarding preventing access to returned medications except for return to the pharmacy shall not apply to items that are too large or bulky to be inserted into the system’s return bin, to items requiring refrigeration, nor to limited critical care items whose inaccessibility would compromise patient care.

d. Each AMDS shall provide a mechanism for securing and accounting for wasted or discarded medications in compliance with federal and state laws and regulations.

9.5(3) Security and confidentiality. An AMDS shall include system safeguards designed to prevent and detect unauthorized medication access, including access to controlled substances. System safeguards shall also be designed to prevent and detect unauthorized information access for the purpose of modification or manipulation of patient records and prescription drug orders.

a. An AMDS shall be capable of generating reports of all medication access activity. Reports shall include, at a minimum for each medication access record, the following:

(1) Identification of the person.

(2) The date and, preferably, the time.

(3) Identification of the medication.

(4) Whether the medication access involved stocking, dispensing, wasting, or returning the medication.

(5) The quantity of the medication.

(6) The accessed component.

b. An AMDS shall maintain confidential patient rec–ords and information in compliance with rules 657— 21.1(124,155A) and 21.2(124,155A).

657—9.6(79GA,HF726) Records. All records required pursuant to these rules shall be available to the board or its authorized agents for two years following the recorded activity.

657—9.7(79GA,HF726) Decentralized unit dose AMDS. Decentralized unit dose AMDS may be utilized in two ways. Either subrule 9.7(1) or subrule 9.7(2) shall apply, based on the utilization of the decentralized unit dose AMDS.

9.7(1) Floor–stock distribution. If the decentralized unit dose AMDS is utilized for the storage and dispensing of floor–stock medications only, medications may be restocked into components by an appropriately trained pharmacy technician following pharmacist verification in the pharmacy of medications to be restocked.

9.7(2) Other than floor–stock distribution. If the decentralized unit dose AMDS is utilized for medications other than floor–stock medications, including but not limited to medications intended for first–dose administration or medications otherwise dispensed in unit dose cassettes, the following shall apply:

a. Pharmacist verification. When bar coding or other technology–based verification is not utilized to check the accuracy of medication doses stocked in dispensing components, a pharmacist shall verify that 100 percent of all medication doses are accurately placed in each medication bin of each dispensing component. Policies, procedures, and safeguards shall be developed and implemented that control, while ensuring availability and access to needed medications, utilization of medications added to the dispensing component prior to pharmacist verification of the addition.

b. Bar coding or technology–based verification. When bar coding or other technology–based verification is utilized and a pharmacist is not filling the dispensing component, the quality assurance plan shall provide for random verification by a pharmacist. The plan shall provide that, one day each month, all medication doses or bins contained in 5 percent of the components utilized within the system be verified by a pharmacist. Or the plan shall provide that, one day each month, 5 percent of the medication doses or bins contained in each component utilized within the system be verified by a pharmacist. If, however, the system includes fewer than five components, a pharmacist shall, one day each month, verify all medication doses or bins contained in one component utilized within the system. A pharmacy may request prior approval from the board for an alternate pharmacist verification process.

9.7(3) Errors identified. All identified errors shall be logged as provided by the quality assurance and monitoring plan developed pursuant to rule 9.3(79GA,HF726) and shall be categorized as follows:

1. Incorrect medication;

2. Incorrect dose;

3. Incorrect dosage form;

4. Other errors. All errors categorized as “other errors” shall include additional notation identifying the error.

657—9.8(79GA,HF726) Centralized unit dose AMDS. The quality assurance plan shall provide for pharmacist verification of all medication doses dispensed for a minimum of 60 days following implementation of the AMDS.

9.8(1) Errors logged. All identified errors shall be logged as provided by the quality assurance and monitoring plan developed pursuant to rule 9.3(79GA,HF726) and shall be categorized as follows:

1. Computer order entry error;

2. Incorrect medication;

3. Incorrect dose;

4. Incorrect quantity—extra dose(s);

5. Incorrect quantity—short dose(s);

6. Incorrect dosage form;

7. Other errors. All errors categorized as “other errors” shall include additional notation identifying the error.

9.8(2) Initial report to the board. The first quarterly report to the board shall summarize identified errors by category and shall include the total number of errors identified, the reasons for the errors, the corrective actions taken to prevent the recurrence of those errors, and the average accuracy (correct doses over total doses) determined for all AMDS–dispensed medications during the first quarter following implementation.

9.8(3) Random verification. If the average accuracy of the AMDS during the initial 60–day period is at least 99.7 percent for all medication doses dispensed, the quality assurance plan shall provide for random verification by a pharmacist. The plan shall provide that 5 percent of all medication doses daily dispensed utilizing the AMDS be verified by a pharmacist or it shall provide that 100 percent of all medication doses dispensed on a specific day each month be verified by a pharmacist; or a pharmacy may request prior approval from the board for an alternate pharmacist verification process. Errors shall continue to be identified and logged as provided by the quality assurance and monitoring plan developed pursuant to rule 9.3(79GA,HF726) and shall be categorized as provided in subrule 9.8(1).

If the average accuracy of the AMDS during the initial 60–day period is not at least 99.7 percent for all medication doses dispensed, the pharmacy shall continue pharmacist verification of all medication doses dispensed utilizing the AMDS until the average accuracy for 60 consecutive days is at least 99.7 percent.

9.8(4) Reports during first year. For a minimum of one year following implementation of the AMDS, written quarterly reports shall be submitted to the board. Reports shall summarize identified errors by category and shall include the total number of errors identified, the reasons for the errors, the corrective actions taken to prevent the recurrence of those errors, and the average accuracy (correct doses over total verified doses) for all medication doses verified during the preceding quarter.

9.8(5) Accuracy. Any random verification disclosing accuracy of less than 99.7 percent for all medication doses verified shall require that a pharmacist again verify all medication doses dispensed utilizing the AMDS until the average accuracy meets or exceeds 99.7 percent for all medication doses dispensed for three consecutive days.

9.8(6) Continued verification. The quality assurance plan shall provide for continuation, as long as the pharmacy utilizes the AMDS, of random verification by the pharmacist of AMDS–dispensed medication doses as provided in subrules 9.8(3) and 9.8(5).

9.8(7) Reports after one year. Following the one–year period and within 30 days of determining by random verification that the accuracy of AMDS medication fills is less than 99.7 percent for all medication doses verified, a written report shall be submitted to the board. The report shall summarize the identified errors by category and shall include the reasons for the errors, the corrective actions taken to prevent the recurrence of those errors, and the low accuracy rate prompting the report.

9.9(1) Verification. Prior to dispensing, all outpatient prescriptions dispensed utilizing an AMDS shall be verified by a pharmacist in the pharmacist’s physical presence unless a waiver is approved pursuant to subrule 9.9(2).

9.9(2) Waiver. A pharmacy may request waiver or variance from subrule 9.9(1) pursuant to the procedures and requirements of 657—Chapter 34. In addition, applications for waiver shall specify and include justification for the requested waiver, the methods to be used to ensure patient counseling is provided on new prescriptions pursuant to 657—8.20(155A), a quality assurance plan, and written policies and procedures for utilization of the AMDS.

a. Quarterly reports. The quality assurance plan shall provide for submission of written quarterly reports to the board. All reports shall summarize identified errors by category and shall include reasons for the errors, the corrective actions taken to resolve and prevent recurrence of the errors, and average accuracy for the specified period.

b. Verification. The quality assurance plan shall provide for verification processes for all AMDS–dispensed prescriptions.

c. Identification of errors. The quality assurance plan shall require that all identified errors be logged as provided by the quality assurance and monitoring plan developed pursuant to rule 9.3(79GA,HF726) and shall be categorized as follows:

1. Incorrect medication;

2. Incorrect quantity;

3. Incorrect dose;

4. Incorrect dosage form;

5. Incorrect directions for use;

6. Incorrect patient name;

7. Other incorrect label information;

8. Computer order entry error;

9. Other errors. All errors categorized as “other errors” shall include additional notation identifying the error.

d. Accuracy. The performance improvement plan shall identify actions to be taken in the event that any medication error is identified.

These rules are intended to implement 2001 Iowa Acts, House File 726, section 5(10), paragraph “i.”

Pursuant to the authority of Iowa Code section 147.76, the Board of Examiners for Massage Therapy hereby gives Notice of Intended Action to amend Chapter 130, “Massage Therapy”; renumber Chapter 131, “Disciplinary Procedures for Massage Therapists,” as Chapter 134 and adopt new Chapter 131, “Licensure of Massage Therapists”; renumber Chapter 132, “Continuing Education for Massage Therapists,” as Chapter 133 and adopt new Chapter 132, “Massage Therapy Education Curriculum”; amend renumbered Chapter 133, “Continuing Education for Massage Therapists”; and adopt new Chapter 135, “Fees,” Iowa Administrative Code.

The proposed amendments rescind the current licensure rules, adopt new chapters for licensure, education curriculum, and fees, and renumber and amend the chapter on continuing education.

Any interested person may make written comments on the proposed amendments no later than February 12, 2002, addressed to Ella Mae Baird, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075.

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

A public hearing will be held on February 12, 2002, from 9 to 11 a.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.

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

The following amendments are proposed.

ITEM 1. Rescind rules 645—130.4(152C) through 645—130.8(152C).

ITEM 2. Renumber 645—Chapter 131 as 645—Chapter 134 and adopt new 645—Chapter 131 as follows:

CHAPTER 131
LICENSURE OF MASSAGE THERAPISTS

645—131.1(152C) Definitions. For purposes of these rules, the following definitions shall apply:

“Board” means the Iowa board of examiners for massage therapy.

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

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

“License expiration date” means the fifteenth day of the anniversary month every two years.

“Licensure by endorsement” means the issuance of an Iowa license to practice massage therapy to an applicant who is currently licensed in another state.

“Reciprocal license” means the issuance of an Iowa license to practice massage therapy to an applicant who is currently licensed in another state that has a mutual agreement with the Iowa board of examiners for massage therapy to license persons who have the same or similar qualifications to those required in Iowa.

645—131.2(152C) Requirements for licensure. All persons acting or serving in the capacity of a massage therapist shall hold a massage therapist’s license issued by the board. The following criteria shall apply to licensure:

131.2(1) The applicant shall complete a board–approved application packet. Application forms may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensure) or directly from the board office. All applications shall be sent to Board of Examiners for Massage Therapy, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319–0075.

131.2(2) The applicant shall complete the application form according to the instructions contained in the application. If the application is not completed according to the instructions, the application will not be reviewed by the board.

131.2(3) Each application shall be accompanied by the appropriate fees payable by check or money order to the Board of Examiners for Massage Therapy. The fees are nonrefundable.

131.2(4) The applicant shall have official copies of academic transcripts sent directly from the board–approved school to the board of examiners for massage therapy.

131.2(5) The board may consider applications on a case–by–case basis which do not appear on their face to meet requirements if the requirements may be alternatively satisfied by demonstrated equivalency. The burden shall be on the applicant to document that the applicant’s education and experience are substantially equivalent to the requirements which may be alternatively satisfied.

131.2(6) The applicant shall submit evidence of passing a cardiopulmonary resuscitation (CPR) course and first aid course by providing copies of the current certification card(s) or renewal card(s).

131.2(7) The applicant shall provide proof of passing the National Certification Examination for Therapeutic Massage and Bodywork administered by the testing service contracting with the National Certification Board for Therapeutic Massage and Bodywork. Proof of passing shall be sent directly from the testing service to the board of examiners for massage therapy. The passing score on the written examination shall be the passing point criterion established by the national testing authority at the time the test was administered.

131.2(8) Licensees who were issued their licenses within six months prior to the renewal shall not be required to renew their licenses until the renewal month two years later.

131.2(9) Incomplete applications that have been on file in the board office for more than two years shall be considered invalid and shall be destroyed.

131.3(1) The applicant shall have graduated from a board–approved school that has a minimum of 500 hours of massage therapy education.

131.3(2) Foreign–trained massage therapists shall:

a. Provide an equivalency evaluation of their educational credentials by one of the following: International Educational Research Foundations, Inc., Credentials Evaluation Service, P.O. Box 3665, Culver City, CA 90231–3665, telephone (310)258–9451, Web site www.ierf.org or E–mail at info@ierf.org; International Credentialing Associates, Inc., 7245 Bryan Dairy Road, Bryan Dairy Business Park II,Largo, FL 33777, telephone (727)549–8555. The professional curriculum must be equivalent to that stated in these rules. A candidate shall bear the expense of the curriculum evaluation.

b. Provide a notarized copy of the certificate or diploma awarded to the applicant from a massage therapy program in the country in which the applicant was educated.

c. Receive a final determination from the board regarding the application for licensure.

645—131.4(152C) Examination requirements. The examination required by the board shall be the National Certification Examination for Therapeutic Massage and Bodywork.

131.4(1) The applicant shall apply to the National Certification Board for Therapeutic Massage and Bodywork.

131.4(2) Results of the examination are mailed directly from the examination service to the board of examiners for massage therapy after the applicant takes the examination.

131.5(1) An applicant from another state with license requirements less stringent than those in Iowa shall:

a. Submit to the board a completed application;

b. Pay the licensure fee;

c. Provide an official copy of the academic transcript sent directly from the board–approved school to the board of examiners for massage therapy;

d. Submit a certified copy of the scores from the appropriate professional examination sent directly from the examination service to the board, if applicable; and

e. Provide verification of license(s) from every state in which the applicant has been licensed, sent directly from the state(s) to the board office.

131.5(2) A temporary license shall be valid for a period of up to one year and shall not be renewed.

645—131.6(152C) Licensure by endorsement. An applicant who has been a licensed massage therapist under the laws of another jurisdiction shall file an application for licensure by endorsement with the board office. The board may receive by endorsement any applicant from the District of Columbia or another state, territory, province or foreign country who:

1. Submits to the board a completed application;

2. Pays the licensure fee;

3. Shows evidence of licensure requirements that are similar to those required in Iowa;

4. Provides official copies of the academic transcripts sent directly from the school to the board;

5. Submits a certified copy of the scores from the appropriate professional examination to be sent to the board, if applicable; and

6. Provides verification of license(s) from every state in which the applicant has been licensed, sent directly from the state(s) to the board office.

645—131.7(152C) Licensure by reciprocal agreement. The board may enter into a reciprocal agreement with the District of Columbia or any state, territory, province or foreign country with equal or similar requirements for licensure of massage therapists.

131.8(1) The biennial license renewal period for a license to practice massage therapy shall begin on the sixteenth day of the anniversary month and end on the fifteenth day of the anniversary month two years later. All licensees shall renew on a biennial basis.

131.8(2) A renewal of license application and continuing education report form to practice massage therapy shall be mailed to the licensee at least 60 days prior to the expiration of the license. Failure to receive the renewal application shall not relieve the license holder of the obligation to pay the biennial renewal fees on or before the renewal date.

a. The licensee shall submit the completed application and continuing education report form with the renewal fee to the board office before the license expiration date.

b. Those persons licensed for the first time shall not be required to complete continuing education as a prerequisite for the first renewal of their licenses.

c. Persons licensed to practice massage therapy shall keep their renewal licenses displayed in a conspicuous public place at the primary site of practice.

131.8(3) Late renewal. If the renewal fees, continuing education report and renewal application are received within 30 days after the license expiration date, the late fee for failure to renew before expiration is charged.

131.8(4) When all requirements for license renewal are met, the licensee shall be sent a license renewal card by regular mail.

131.9(1) A licensee who is not engaged in practice in the state of Iowa may be granted a waiver of compliance and obtain a certificate of exemption upon written application to the board. The application shall contain a statement that the applicant will not engage in practice in the state of Iowa without first complying with all regulations governing reinstatement after exemption. The application for a certificate of exemption shall be submitted upon the form provided by the board. A licensee must hold a current license to apply for exempt status. The licensee shall apply for inactive status prior to the license expiration date.

131.9(2) Reinstatement of exempted, inactive practitioners. Inactive practitioners who have requested and been granted a waiver of compliance with the renewal requirements and who have obtained a certificate of exemption shall, prior to engaging in the practice of the profession in Iowa, satisfy the requirements for reinstatement as outlined in 645—133.10(152C,272C).

131.9(3) Licensees shall renew at the scheduled renewal. Licensees whose licenses were reinstated within six months prior to the renewal shall not be required to renew their licenses until the renewal date two years later.

131.9(4) A new licensee who is on inactive status during the initial license renewal time period and reinstates before the first license expiration date will not be required to complete continuing education for that first license renewal time period only. Twelve hours of continuing education will be required for every renewal thereafter.

131.9(5) Verification of license(s) is required from every state in which the licensee has practiced since the Iowa license became inactive.

131.9(6) Reinstatement of inactive license after exemption. The following chart illustrates the requirements for reinstatement based on the length of time a license has been considered inactive.

131.10(1) If the renewal fees and continuing education report are received more than 30 days after the license expiration date, the license is lapsed. An application for reinstatement must be filed with the board accompanied by the reinstatement fee, the renewal fee(s) for each biennium the license is lapsed and the late fee for failure to renew before expiration. The licensee may be subject to an audit of the licensee’s continuing education report.

131.10(2) Licensees who have not fulfilled the requirements for license renewal or for an exemption in the required

time frame will have a lapsed license and shall not engage in the practice of massage therapy. Practicing without a license may be cause for disciplinary action.

131.10(3) To reinstate a lapsed license, licensees shall comply with all requirements for reinstatement as outlined in 645—133.6(152C).

131.10(4) After the reinstatement of a lapsed license, the licensee shall renew at the next scheduled renewal cycle and complete the continuing education required for the biennium.

131.10(5) Verification of license(s) is required from every state in which the licensee has practiced since the Iowa licensed lapsed.

131.10(6) Reinstatement of a lapsed license. The following chart illustrates the requirements for reinstatement based on the length of time a license has lapsed.

131.11(1) An applicant who has been denied licensure by the board may appeal the denial and request a hearing on the issues related to the licensure denial by serving a notice of appeal and request for hearing upon the board not more than 30 days following the date of mailing of the notification of licensure denial to the applicant. The request for hearing as outlined in these rules shall specifically describe the facts to be contested and determined at the hearing.

131.11(2) If an applicant who has been denied licensure by the board appeals the licensure denial and requests a hearing pursuant to this rule, the hearing and subsequent procedures shall be held pursuant to the process outlined in Iowa Code chapters 17A and 272C.

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

ITEM 3. Renumber 645—Chapter 132 as 645—Chapter 133 and adopt new 645—Chapter 132 as follows:

CHAPTER 132
MASSAGE THERAPY EDUCATION CURRICULUM

132.1(1) An application for schools providing massage therapy education curriculum shall be made in writing to the Board of Examiners for Massage Therapy, Lucas State Office Building, Des Moines, Iowa 50319–0075. Application forms shall be obtained from the board office.

132.1(2) Approval shall be granted by the board if the curriculum satisfies the following:

a. It requires completion of at least 500 hours of in–classroom academic instruction. The curriculum must include 100 hours of anatomy and physiology and 400 hours of other subjects relating directly to the development of skills, knowledge and attitudes necessary to render competent professional massage therapy to the public including first aid and cardiopulmonary resuscitation (CPR).

b. All student clinic hours shall be directly supervised by a qualified instructor on site.

c. Student clinic hours shall not exceed 20 percent of the actual curriculum hours.

d. Field experience hours, if required by the school, shall be documented, but shall not be included as part of the 500 hours of instructor–supervised, in–classroom academic instruction.

e. All course instructors, their credentials and professional training must be listed in an attachment to the application. The attachment must also show proof of at least one year’s experience in the subject(s) each instructor is to teach.

132.1(3) The entire school curriculum and class schedule must be submitted with the application and shall document the hours of each subject taught. Each course offering shall be described in the submitted catalog or syllabus or both. The curriculum required for students who graduated prior to July 1, 1993, shall require only 100 hours of anatomy and physiology and 400 hours of other subjects.

132.1(4) A school’s curriculum shall be approved if it met the above requirements at the time that the applicant for license graduated.

132.1(5) If an approved school alters its curriculum from that submitted and approved by more than 25 percent of total course hours, the school must submit those changes to the board for approval prior to implementation.

132.1(6) Course content of an approved curriculum must be accurately stated in all promotional materials.

132.1(7) If an approved curriculum of the school is not providing the courses and hours submitted on its application, the board may revoke, suspend or put on probation approval of the school’s curriculum. Revocation shall be for a minimum of six consecutive months from the date of determined noncompliance. At the end of the revocation period, the school may reapply for approval of a massage therapy program according to the rules in effect at the time of the reapplication.

This rule is intended to implement Iowa code chapter 152C.

ITEM 4. Amend renumbered subrule 133.3(2), paragraphs “a” and “c,” as follows:

a. A licensee may obtain continuing education hours of credit by attending:

(1) Programs listed but not limited to hydrotherapy; superficial hot and cold applications; vibration and topical applications; contraindications; pathology; HIV/AIDS education. Also included is therapy which involves manipulation of the muscle and connective tissue of the body to treat the muscle tonus system for the purpose of enhancing health, providing muscle relaxation, increasing range of motion, reducing stress, relieving pain, or improving circulation.

(2) Courses on aromatherapy, herbalism, herbology, aromatherapy, homeopathy and other similar areas are eligible for approval only if they specifically teach include topical application techniques for professional practitioners. Only the number of hours spent on teaching, explaining or demonstrating topical application are eligible for continuing education credit and must be specifically described and scheduled in the continuing education program application.

(3) Continuing education activities of an approved sponsor. Courses on applied kinesiology, hellerwork, ortho–bionomy, polarity therapy, touch for health, visceral manipulation, and other similar areas are eligible for approval only if they specifically include massage therapy techniques for professional practitioners. Only the number of hours spent on teaching, explaining, or demonstrating massage therapy techniques are eligible for continuing education credit and must be specifically described and scheduled in the continuing education program application.

c. Unacceptable subject matter may include but is not limited to: meditation, feng shui, personal development, practice management, communication, government regulation, insurance, collective bargaining, community service presentations or courses that do not deal with manipulation. Courses about energy–based techniques performed without physical manipulation of tissue are not eligible for approval. Excluded from approval are programs involving modalities listed but not limited to: alexander techniques, barbara brennan healing sciences, breema bodywork, feldenkrais, healing touch, jin shin jyutsu, reiki, rosen method, therapeutic touch, trager approach and zero balancing. Also excluded are other modalities which involve emotions or energy.

ITEM 5. Amend renumbered rule 645—133.6(152C) by rescinding numbered paragraphs “3” to “6” and adopting the following new numbered paragraphs “3” to “7” in lieu thereof:

3. Pays the late fee which has been assessed by the board for failure to renew;

4. Pays the reinstatement fee;

5. Provides verification of license(s) from every state in which the licensee has practiced since the Iowa license lapsed;

6. Provides evidence of satisfactory completion of continuing education requirements during the period since the license lapsed. The total number of continuing education hours required for license reinstatement is computed by multiplying 12 by the number of bienniums since the license lapsed to a maximum of three bienniums or 36 continuing education hours; and

7. If the license has lapsed for four or more bienniums, the licensee shall successfully complete the National Certification Examination for Therapeutic Massage and Bodywork within one year immediately prior to the submission of such application for reinstatement.

ITEM 6. Amend renumbered rule 645—133.9(152C, 272C) as follows:

645—133.9(152C,272C) Continuing education exemption for disability or illness. The board may, in individual cases involving disability or illness, grant waivers exemptions of the minimum educational requirements or extension of time within which to fulfill the same or make the required reports. No waiver exemption or extension of time shall be granted unless written application therefor is made on forms provided by the board and signed by the licensee and appropriate licensed health care practitioners. The board may grant waiver exemption of the minimum educational continuing education requirements for any period of time not to exceed one calendar year from the onset of disability or illness. In the event that the disability or illness upon which a waiver an exemption has been granted continues beyond the period of waiver exemption, the licensee must reapply for an extension of the waiver exemption. The board may, as a condition of any waiver exemption granted, require the applicant to make up a certain portion or all of the minimum educational continuing education requirements waived exempted by such methods as may be prescribed by the board.

ITEM 7. Rescind renumbered subrules 133.10(1) and 133.10(2) and adopt the following new subrules in lieu thereof:

133.10(1) Submit written application for reinstatement to the board upon forms provided by the board;

133.10(2) Pay the current renewal fee;

133.10(3) Pay the reinstatement fee;

133.10(4) Provide verification of license(s) from every state in which the licensee has practiced since the Iowa license lapsed; and

133.10(5) Furnish in the application evidence of one of the following:

a. Satisfactory completion of continuing educationrequirements during the period since the license became inactive. The total number of continuing education hours required for license reinstatement is computed by multiplying 12 by the number of bienniums since the license lapsed to a maximum of three bienniums or 36 continuing education hours; or

b. Successful completion of the National Certification Examination for Therapeutic Massage and Bodywork within one year immediately prior to the submission of such application for reinstatement.

ITEM 8. Adopt new 645—Chapter 135 as follows:

CHAPTER 135
FEES

645—135.1(147) License fees. All fees are nonrefundable.

135.1(1) Licensure fee for license to practice massage therapy is $100.

135.1(2) Biennial license renewal fee for each biennium is $50.

135.1(3) Temporary license fee for up to one year is $100.

135.1(4) Late fee for failure to renew before expiration is $50.

135.1(5) Reinstatement fee for a lapsed license or an inactive license is $50.

135.1(6) Duplicate license fee is $10.

135.1(7) Verification of license fee is $10.

135.1(8) Returned check fee is $15.

135.1(9) Disciplinary hearing fee is a maximum of $75.

This rule is intended to implement Iowa Code section 147.8 and Iowa Code chapters 17A, 147 and 272C.

Pursuant to the authority of Iowa Code section 147.76, the Board of Respiratory Care Examiners hereby gives Notice of Intended Action to rescind Chapter 260, “Respiratory Care Practitioners,” and adopt new Chapter 260, “Board of Respiratory Care Examiners”; renumber Chapter 261, “Continuing Education for Respiratory Care Practitioners,” as Chapter 262 and adopt new Chapter 261, “Licensure of Respiratory Care Practitioners”; amend renumbered Chapter 262, “Continuing Education for Respiratory Care Practitioners”; and adopt new Chapter 263, “Discipline for Respiratory Care Practitioners,” and new Chapter 264, “Fees,” Iowa Administrative Code.

The proposed amendments rescind the current licensure rules and fees and adopt new chapters for the board and for licensure, discipline and fees and amend the chapter on continuing education.

Any interested person may make written comments on the proposed amendments no later than February 12, 2002, addressed to Ella Mae Baird, Professional Licensure Division, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075.

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

A public hearing will be held on February 12, 2002, from 1 to 3 p.m. in the Fifth Floor Board Conference Room, Lucas State Office Building, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the proposed amendments.

These amendments are intended to implement Iowa Code section 147.76 and chapters 17A, 152B and 272C.

The following amendments are proposed.

ITEM 1. Rescind 645—Chapter 260 and adopt the following new chapter in lieu thereof:

CHAPTER 260

BOARD OF RESPIRATORY CARE EXAMINERS

“Administrator” means the administrator of the board of respiratory care examiners.

“Board” means the board of respiratory care examiners.

“Department” means the department of public health.

260.2(1) All information regarding rules, forms, time and place of meetings, minutes of meetings, record of hearings, and examination results are available to the public between the hours of 8 a.m. and 4:30 p.m., Monday to Friday, except holidays.

260.2(2) Information may be obtained by writing to the Board of Respiratory Care Examiners, Department of Public Health, Lucas State Office Building, Des Moines, Iowa 50319–0075. All official correspondence shall be in writing and directed to the board at this address.

260.3(1) The board consists of five members appointed by the governor and confirmed by the senate. The board shall include one licensed physician with training in respiratory care, three respiratory care practitioners who have practiced respiratory care for a minimum of six years immediately preceding their appointment to the board and who are recommended by the society for respiratory care, and one member who is not licensed to practice medicine or respiratory care and who shall represent the general public. A majority of the members of the board shall constitute a quorum.

260.3(2) A chairperson, vice chairperson, and secretary shall be elected at the first meeting after April 30 of each year.

260.3(3) The board shall hold at least an annual meeting and may hold additional meetings called by the chairperson or by a majority of board members. The chairperson shall designate the date, place, and time prior to each meeting of the board. The board shall follow the latest edition of Robert’s Rules of Order, Revised, at its meeting whenever any objection is made as to the manner in which it proceeds at a meeting.

260.4(1) The respiratory care practitioner shall practice acceptable methods of treatment, and shall not practice beyond the competence or exceed the authority vested in the practitioner by physicians.

260.4(2) The respiratory care practitioner shall continually strive to increase and improve knowledge and skill, and render to each patient the full measure of the practitioner’s ability. All services shall be provided with respect to the dignity of the patient, regardless of social or economic status, personal attributes or the nature of the patient’s health problems.

260.4(3) The respiratory care practitioner shall be responsible for the competent and efficient performance of assigned duties, and shall expose incompetent, illegal or unethical conduct of members of the profession.

260.4(4) The respiratory care practitioner shall hold in confidence all privileged information concerning the patient and refer all inquiries regarding the patient to the patient’s physician.

260.4(5) The respiratory care practitioner shall not accept gratuities and shall guard against conflict of interest.

260.4(6) The respiratory care practitioner shall uphold the dignity and honor of the profession and abide by its ethical principles.

260.4(7) The respiratory care practitioner shall have knowledge of existing state and federal laws governing the practice of respiratory therapy and shall comply with those laws.

260.4(8) The respiratory care practitioner shall cooperate with other health care professionals and participate in activities to promote community, state, and national efforts to meet the health needs of the public.

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

ITEM 2. Renumber 645—Chapter 261 as 645—Chapter 262 and adopt the following new chapter in lieu thereof:

CHAPTER 261

LICENSURE OF RESPIRATORY CARE PRACTITIONERS

645—261.1(152B) Definitions. For purposes of these rules, the following definitions shall apply:

“Board” means the board of respiratory care examiners.

“CoARC” means the Committee on Accreditation of Respiratory Care.

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

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

“License expiration date” means March 31 of even–numbered years.

“Licensure by endorsement” means the issuance of an Iowa license to practice respiratory care to an applicant who is currently licensed in another state.

“NBRC” means the National Board of Respiratory Care.

“Reciprocal license” means the issuance of an Iowa license to practice respiratory care to an applicant who is currently licensed in another state that has a mutual agreement with the Iowa board of examiners for respiratory care to license persons who have the same or similar qualifications to those required in Iowa.

261.2(1) The following criteria shall apply to licensure:

a. The applicant shall complete a board–approved application packet. Application forms may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensure) or directly from the board office. All applications shall be sent to Board of Respiratory Care Examiners, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319–0075.

b. The applicant shall complete the application form according to the instructions contained in the application. If the application is not completed according to the instructions, the application will not be reviewed by the board until properly completed.

c. Each application shall be accompanied by the appropriate fees payable by check or money order to the Board of Respiratory Care Examiners. The fees are nonrefundable.

d. No application will be considered by the board until:

(1) Official copies of academic transcripts sent directly from the school to the board of respiratory care examiners have been received by the board; and

(2) The applicant satisfactorily completes the certification or registration examination for respiratory therapists administered by the National Board for Respiratory Care.

e. Licensees who were issued their licenses within six months prior to the renewal shall not be required to renew their licenses until the renewal month two years later.

261.2(2) Incomplete applications that have been on file in the board office for more than two years shall be considered invalid and shall be destroyed.

261.3(1) The applicant shall have successfully completed a respiratory care education program from an accredited school/program for training respiratory therapists.

261.3(2) Foreign–trained respiratory care practitioners shall:

a. Provide an equivalency evaluation of their educational credentials by one of the following: International Educational Research Foundations, Inc., Credentials Evaluation Service, P.O. Box 3665, Culver City, CA 90231–3665, telephone (310)258–9451, Web site www.ierf.org or E–mail at info@ierf.org; or International Credentialing Associates, Inc., 7245 Bryan Dairy Road, Bryan Dairy Business Park II, Largo, FL 33777, telephone (727)549–8555. The professional curriculum must be equivalent to that stated in these rules. A candidate shall bear the expense of the curriculum evaluation.

b. Provide a notarized copy of the certificate or diploma awarded to the applicant from a respiratory care program in the country in which the applicant was educated.

c. Receive a final determination from the board regarding the application for licensure.

645—261.4(152B) Examination requirements. The examination required by the board shall be the National Board of Respiratory Care Examination or the State Clinical Examination administered by the NBRC.

261.4(1) The applicant shall apply directly to the National Board of Respiratory Care.

261.4(2) Results of the examination must be received by the board of respiratory care examiners by one of the following methods:

a. Scores shall be sent directly from the examination service to the board of respiratory care examiners, or

b. A notarized certificate shall be submitted showing proof of the successful completion of the examination for respiratory therapists or respiratory therapy technicians administered by the National Board of Respiratory Care.

261.5(1) A student enrolled in an approved respiratory care training program who is employed in an organized training program in an organized health care system may render services defined in Iowa Code sections 152B.2 and 152B.3 under the direct and immediate supervision of a respiratory care practitioner for the duration of the respiratory care practitioner program, not to exceed the duration of the respiratory care program or more than two years after the four–year program.

261.5(2) A graduate of an approved respiratory care training program employed in an organized health care system may render services as defined in Iowa Code sections 152B.2 and 152B.3 under the direct and immediate supervision of a respiratory care practitioner for one year from the date of the successful completion of the program. The graduate shall be identified as a “respiratory care practitioner–license applicant.”

261.5(3) Direct and immediate supervision of a respiratory care student or graduate practitioner means that the licensed respiratory care practitioner shall:

a. Be continuously on site and present in the department or facility where the student or graduate is performing care;

b. Be immediately available to assist the person being supervised in the care being performed; and

c. Be responsible for care provided by students and graduates.

645—261.6(152B) Licensure by endorsement. An applicant who has been a licensed respiratory care practitioner under the laws of another jurisdiction shall file an application for licensure by endorsement with the board office. The board may receive by endorsement any applicant from the District of Columbia or another state, territory, province or foreign country who:

1. Submits to the board a completed application;

2. Pays the licensure fee;

3. Shows evidence of licensure requirements that are similar to those required in Iowa;

4. Provides official copies of the academic transcripts sent directly from the school to the board;

5. Provides an equivalency evaluation of foreign educational credentials sent directly from the equivalency service to the board;

6. Provides the examination scores:

• Scores shall be sent directly from the examination service to the board of respiratory care examiners; or

• A notarized certificate shall be submitted showing proof of the successful completion of the examination for respiratory therapists or respiratory therapy technicians administered by the National Board for Respiratory Care; and

7. Provides verification of license(s) from every state in which the applicant has been licensed, sent directly from the state(s) to the board office.

645—261.7(147) Licensure by reciprocal agreement. The board may enter into a reciprocal agreement with the District of Columbia or any state, territory, province or foreign country with equal or similar requirements for licensure of respiratory care practitioners.

261.8(1) The biennial license renewal period for a license to practice respiratory care shall begin on April 1 of even–numbered years and end on March 31 of the next even–numbered year. All licensees shall renew on a biennial basis.

261.8(2) A renewal of license application and continuing education report form to practice respiratory care shall be mailed to the licensee at least 60 days prior to the expiration of the license. Failure to receive the renewal application shall not relieve the license holder of the obligation to pay the biennial renewal fees on or before the renewal date.

a. The licensee shall submit the completed application and continuing education report form with the renewal fee to the board office before the license expiration date.

b. Those persons licensed for the first time shall not be required to complete continuing education as a prerequisite for the first renewal of their licenses. Continuing education hours acquired anytime from the initial licensing until the second license renewal may be used. The new licensee will be required to complete a minimum of 30 hours of continuing education per biennium for each subsequent license renewal.

c. Persons licensed to practice respiratory care shall keep their renewal licenses displayed in a conspicuous public place at the primary site of practice.

261.8(3) Late renewal. If the renewal fees, continuing education report and renewal application are received within 30 days after the license renewal expiration date, the late fee for failure to renew before expiration is charged.

261.8(4) When all requirements for license renewal are met, the licensee shall be sent a license renewal card by regular mail.

261.9(1) A licensee who is not engaged in practice in the state of Iowa may be granted a waiver of compliance and obtain a certificate of exemption upon written application to the board. The application shall contain a statement that the applicant will not engage in practice in the state of Iowa with–

out first complying with all regulations governing reinstatement after exemption. The application for a certificate of exemption shall be submitted upon the form provided by the board. A licensee must hold a current license to apply for exempt status. The licensee shall apply for inactive status prior to the license expiration date.

261.9(2) Reinstatement of exempted, inactive practitioners. Inactive practitioners who have requested and been granted a waiver of compliance with the renewal requirements and who have obtained a certificate of exemption shall, prior to engaging in the practice of the profession in Iowa, satisfy the requirements for reinstatement as outlined in 645—262.10(152B,272C).

261.9(3) Licensees shall renew at the next scheduled renewal. Licensees whose licenses were reinstated within six months prior to the renewal shall not be required to renew their licenses until the renewal date two years later.

261.9(4) A new licensee who is on inactive status during the initial license renewal time period and reinstates before the first license expiration date will not be required to complete continuing education for that first license renewal time period only. Thirty hours of continuing education will be required for every renewal thereafter.

261.9(5) Verification of license(s) is required from every state in which the licensee has practiced since the Iowa license became inactive.

261.9(6) Reinstatement of inactive license after exemption. The following chart illustrates the requirements for reinstatement based on the length of time a license has been considered inactive.

261.10(1) If the renewal fees and continuing education report are received more than 30 days after the license expiration date, the license is lapsed. An application for reinstatement must be filed with the board accompanied by the reinstatement fee, the renewal fees for each biennium the license is lapsed and the late fee for failure to renew before expiration. The licensee may be subject to an audit of the licensee’s continuing education report.

261.10(2) Licensees who have not fulfilled the requirements for license renewal or for an exemption in the required time frame will have a lapsed license and shall not engage in the practice of respiratory care. Practicing without a license may be cause for disciplinary action.

261.10(3) To reinstate, licensees shall comply with all requirements for reinstatement as outlined in 645— 262.6(152B,272C).

261.10(4) After reinstatement of the lapsed license, the licensee shall renew at the next scheduled renewal cycle and complete the continuing education required for the biennium.

261.10(5) Verification of license(s) is required from every state in which the licensee has practiced since the Iowa license lapsed.

261.10(6) Reinstatement of a lapsed license. The following chart illustrates the requirements for reinstatement based on the length of time a license has lapsed.

261.11(1) An applicant who has been denied licensure by the board may appeal the denial and request a hearing on the issues related to the licensure denial by serving a notice of appeal and request for hearing upon the board not more than 30 days following the date of mailing of the notification of licensure denial to the applicant. The request for hearing as outlined in these rules shall specifically describe the facts to be contested and determined at the hearing.

261.11(2) If an applicant who has been denied licensure by the board appeals the licensure denial and requests a hearing pursuant to this rule, the hearing and subsequent procedures shall be held pursuant to the process outlined in Iowa Code chapters 17A and 272C.

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

ITEM 3. Amend renumbered rule 645— 262.6(152B,272C) by rescinding numbered paragraphs “3” to “6” and adopting the following new paragraphs in lieu thereof:

3. Pays the late fee which has been assessed by the board for failure to renew;

4. Pays the reinstatement fee;

5. Provides verification of license(s) from every state in which the licensee has practiced since the Iowa license lapsed; and

6. Furnishes evidence of one of the following:

• Satisfactory completion of continuing education requirements during the period since the license lapsed. The total number of continuing education hours required for license reinstatement is computed by multiplying 30 by the number of bienniums since the license lapsed to a maximum of two bienniums or 60 hours of continuing education credit;

• Evidence of current full–time practice in another state of the United States or District of Columbia and completion of substantially equivalent continuing education;

• Successful completion of the approved entry level examination conducted within one year prior to filing of the application for reinstatement; or

• Evidence of completion of a minimum course from a CoARC school within one year prior to reinstatement.

ITEM 4. Amend renumbered rule 645—262.9 (152B,272C) as follows:

645—262.9(152B,272C) Continuing education waiver exemption for disability or illness. The board may, in individual cases involving disability or illness, grant waivers exemptions of the minimum educational continuing education requirements or extension of time within which to fulfill the same or make the required reports. No waiver exemption or extension of time shall be granted unless written application therefor is made on forms provided by the board and signed by the licensee and appropriate licensed health care practitioners. The board may grant waiver exemption of the minimum educational continuing education requirements for any period of time not to exceed one calendar year from the onset of disability or illness. In the event that the disability or illness upon which a waiver an exemption has been granted continues beyond the period of waiver exemption, the licensee must reapply for an extension of the waiver exemption. The board may, as a condition of any waiver exemption granted, require the applicant to make up a certain portion or all of the minimum educational continuing education requirements exempted by such methods as may be prescribed by the board.

ITEM 5. Amend renumbered subrule 262.10(1) as follows:

262.10(1) Reinstatement of the inactive license may be granted by the board if the applicant:

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

b. Pays the current renewal fee then due; and

c. Pays the reinstatement fee. ; and

ITEM 6. Adopt new 645—Chapter 263 as follows:

CHAPTER 263
DISCIPLINE FOR RESPIRATORY CARE PRACTITIONERS

645—263.1(152B,272C) Grounds for discipline. The board may impose any of the disciplinary sanctions set forth in rule 645—13.1(272C), including civil penalties in an amount not to exceed $1000, when the board determines that the licensee is guilty of any of the following acts or offenses:

1. The grounds listed in Iowa Code section 272C.10.

2. Violations of 645—Chapter 261.

3. Fraud in procuring a license. Fraud in procuring a license includes, but is not limited to, false representations of a material fact, whether by word or conduct, false or misleading allegations, or concealment of that which should have been disclosed when making application for a license in this state, or attempting to file or filing with the board any false or forged diploma, or certificate, affidavit, identification, or qualification in making application for licensure in this state.

4. Fraud in representations as to skill or ability. Fraud in representations as to skill or ability includes, but is not limited to, a respiratory care practitioner’s having made misleading, deceptive, or untrue representations as to the practitioner’s competency to perform professional services which the respiratory care practitioner is not qualified to perform.

5. Professional incompetence. Professional incompetence includes but is not limited to:

• A substantial lack of knowledge or ability to discharge professional obligations within the scope of practice;

• A substantial deviation from the standards of learning or skill ordinarily possessed and applied by other respiratory care practitioners in the state of Iowa acting in the same or similar circumstances;

• A failure by a respiratory care practitioner to exercise in a substantial respect that degree of care which is ordinarily exercised by the average respiratory care practitioner acting in the same or similar circumstances;

• A willful or repeated departure from or the failure to conform to the minimal standard of acceptable and prevailing practice of respiratory care in the state of Iowa.

6. Knowingly making misleading, deceptive, untrue or fraudulent representations in the practice of the profession or engaging in unethical conduct or practice harmful to the public. Proof of actual injury need not be established.

7. Habitual intoxication or addiction to the use of drugs. The inability of a respiratory care practitioner to practice respiratory care with reasonable skill and safety by reason of the excessive use of alcohol, drugs, narcotics, chemicals, or other material on a continuing basis, or the excessive use of alcohol, drugs, narcotics, chemicals, or other material which may impair a respiratory care practitioner’s ability to practice the profession with reasonable skill and safety.

8. Involuntary commitment for treatment of mental illness, drug addiction, or alcoholism.

9. Being adjudged mentally incompetent by a court of competent jurisdiction.

10. Making suggestive, lewd, lascivious, or improper remarks or advances to a patient.

11. Verbally, physically, or sexually abusing a patient.

12. Any sexual intimidation or sexual relationship between a respiratory care practitioner and a patient.

13. Unethical practices, including:

• Betraying a professional confidence;

• Falsifying patient records;

• Engaging in a professional conflict of interest;

• Misappropriation of funds.

14. Use of untruthful or improbable statements in advertising. Use of untruthful or improbable statements in advertising includes, but is not limited to, an action by a respiratory care practitioner in making information or intention known to the public which is false, deceptive, misleading, or promoted through fraud or misrepresentation and includes statements which may consist of, but are not limited to, the following:

• Inflated or unjustified expectations of favorable results.

• Self–laudatory claims that imply that the respiratory care practitioner is skilled in a field or specialty of practice for which the practitioner is not qualified.

• Extravagant claims or proclaiming extraordinary skills not recognized by the respiratory care profession.

15. Knowingly aiding, assisting, procuring, or advising a person to unlawfully practice respiratory care.

16. Failing to exercise due care in the delegation of respiratory care services to or supervision of assistants, employees, or other individuals, whether or not injury results.

17. Permitting another person to use one’s license.

18. Practicing outside the scope of the license.

19. Obtaining any fee by fraud or misrepresentation.

20. Willful or repeated gross malpractice or willful or gross negligence.

21. Obtaining, possessing, attempting to obtain or possess, or administering controlled substances without lawful authority; or selling, prescribing, or giving away controlled substances.

22. Violating a lawful order of the board, previously entered into by the board in a disciplinary or licensure hearing, or violating the terms and provisions of a consent agreement or informal settlement between a licensee and the board.

23. Violating a statute or law of this state, another state, or the United States, without regard to its designation as either felony or misdemeanor, which statute or law relates to the practice of respiratory care.

24. Conviction of a felony related to the profession, or the conviction of any felony which would affect the licensee’s ability to practice within the profession. A copy of the record of conviction or plea of guilty shall be conclusive evidence.

25. Revocation, suspension, or other disciplinary action taken by a licensing authority of another state, territory, or country.

26. Failure to report a license revocation, suspension, or other disciplinary action taken by a licensing authority of another state, territory, or country within 30 days of the final action by the licensing authority. A stay by an appellate court shall not negate this requirement; however, if such disciplinary action is overturned or reversed by a court of last resort, such report shall be expunged from the records of the board.

27. Failure of a licensee or an applicant for licensure in this state to report any voluntary agreement to restrict the practice of respiratory care entered into in another state, district, territory, or country.

28. Knowingly submitting a false report of continuing education or failure to submit the annual report of continuing education.

29. Failure to notify the board within 30 days after occurrence of any judgment or settlement of a malpractice claim or action.

30. Failure to report a change of name or address to the office of the board within 30 days after occurrence.

31. Failure to comply with a subpoena issued by the board.

32. Noncompliance with a support order or with a written agreement for payment of support as evidenced by a certificate of noncompliance issued pursuant to Iowa Code chapter 252J. Disciplinary proceedings initiated under this rule shall follow the procedures set forth in Iowa Code chapter 252J.

This rule is intended to implement Iowa Code chapters 147 and 272C.

ITEM 7. Adopt new 645—Chapter 264 as follows:

CHAPTER 264
FEES

645—264.1(147,152B) License fees. All fees are nonrefundable.

264.1(1) Initial and endorsement licensure fee to practice respiratory care is $100.

264.1(2) Biennial license renewal fee for each biennium is $50.

264.1(3) Late fee for failure to renew before expiration is $50.

264.1(4) Reinstatement fee for a lapsed license or an inactive license is $50.

264.1(5) Duplicate license fee is $10.

264.1(6) Verification of license fee is $10.

264.1(7) Returned check fee is $15.

264.1(8) Disciplinary hearing fee is a maximum of $75.

This rule is intended to implement Iowa Code section 147.8 and Iowa Code chapters 17A, 152B and 272C.

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

Iowa Code section 137C.35 exempts bed and breakfast inns from the fire safety rules that apply generally to hotels and requires the Fire Marshal to adopt rules that apply specifically to bed and breakfast inns. Fire safety requirements for bed and breakfast inns (rule 661—5.820(100)) were adopted earlier this year and published in the Iowa Administrative Bulletin on March 21, 2001, as ARC 0566B. After concerns were raised regarding some of the requirements in the rule affecting bed and breakfast inns, the Administrative Rules Review Committee at its meeting on April 6, 2001, imposed a 70–day delay on the May 1, 2001, effective date of the rule and other coordinating amendments contained in ARC 0566B. At the meeting of the Administrative Rules Review Committee held June 5, 2001, representatives of the Department reported that differences regarding provisions of the adopted rule would not be settled prior to the expiration of the 70–day delay. At the request of the Department, the Committee then delayed the May 1, 2001, effective date until the end of the 2002 regular session of the Iowa General Assembly.

Representatives of the Department and the bed and breakfast inn industry have since met and discussed the differences over provisions in the adopted rule. While some points of disagreement remain, most of the differences have been resolved, and the Department is now undertaking to amend rule 661—5.820(100) to reflect changes agreed to by the Department and the industry. In order to expedite what has been a lengthy process, and in light of the fact that as long as the effective date of the adopted rule is delayed bed and breakfast inns are not subject to any fire safety regulations, these proposed amendments are also being adopted through emergency procedures and will become effective on February 1, 2002. The Department will also request that the Administrative Rules Review Committee lift its delay imposed at the June 5, 2001, meeting effective February 1, 2002. This Notice of Intended Action is intended to provide an opportunity for public comment and participation and consideration by the Department of any concerns raised during that process.

A public hearing on these proposed amendments will be held on March 1, 2002, at 9:30 a.m. in the Third Floor Conference Room of the Wallace State Office Building, East 9th and Grand, Des Moines, Iowa 50319. Persons may present their views orally or in writing at the public hearing. Persons who wish to make oral presentations should contact the Agency Rules Administrator, Department of Public Safety, Wallace State Office Building, Des Moines, Iowa 50319,by mail, by telephone at (515)281–5524, or by E–mail toadmrule@dps.state.ia.us, at least one day prior to the public hearing.

Any written comments or information regarding these proposed amendments may be directed to the Agency Rules Administrator by mail or electronic mail at the addresses indicated on or before February 28, 2002, or submitted at the public hearing. Persons who wish to convey their views orally other than at the public hearing may contact the Agency Rules Administrator by telephone or in person at the Department office at least one day prior to the public hearing.

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

These amendments were also Adopted and Filed Emergency and are published herein as ARC 1297B. The content of that submission is incorporated by reference.

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 7, “Practice and Procedure Before the Department of Revenue and Finance,” Chapter 39, “Filing Return and Payment of Tax,” Chapter 40, “Determination of Net Income,” Chapter 41, “Determination of Taxable Income,” Chapter 42, “Adjustments to Computed Tax,” Chapter 43, “Assessments and Refunds,” Chapter 46, “Withholding,” Chapter 52, “Filing Returns, Payment of Tax and Penalty and Interest,” and Chapter 53, “Determination of Net Income,” Iowa Administrative Code.

A number of changes in the individual income tax laws, the income tax withholding laws, and the corporate income tax laws were made by 2001 Iowa Acts, House File 715, House File 737, House File 757, House File 759, Senate File 140, Senate File 141 and Senate File 350. Most of the changes are applicable to January 1, 2000, for tax years or for expenditures made on or after that date, but there are other effective dates for some provisions.

Item 1 adds two new unnumbered paragraphs to subrule 7.5(3) to cover the E–mailing of returns and other documents to the Department as well as to authorize electronic signatures in lieu of handwritten signatures for documents filed by E–mail and other electronic means. This amendment is not the result of a 2001 legislative change but is supported by previously enacted statutes.

Item 2 amends paragraph “b” of subrule 39.1(1) and paragraph “c” of subrule 39.1(2) to describe a new higher income threshold for the requirement for filing of returns by individuals who are claimed as dependents on other taxpayers’ returns.

Item 3 revises rule 701—40.21(422) for the additional deduction for the hiring of an individual on parole or probation to correct references to the Iowa Code that pertain to adult offenders.

Item 4 revises numbered paragraph “7” of paragraph 40.38(1)“c” to reflect a change in the Department’s administration of capital gains from the sale of rental properties so that a taxpayer who has actively participated in a rental business would now meet the material participation requirement for purposes of the capital gain deduction. This revision is not due to legislation but is the result of resolution of a protested case.

Item 5 adopts new rule 701—40.56(422) that describes the taxation of gains or losses from the sale or other disposition of bonds of the state of Iowa or its political subdivisions.

Also under Item 5 is new rule 701—40.57(422) that describes the taxation of capital gains from sales or exchanges of property for taxpayers using the accrual method of accounting who used the installment method to report the capital gains from the transactions on their federal income tax returns.

Item 6 adopts new subrule 41.3(3) for dealing with possible federal refunds in 2001 that are from the federal rebate. The subrule provides that, to the extent that federal income tax refunds are attributable to the federal rebate, those refunds are not taxable for Iowa income tax purposes.

Item 7 adopts new subrule 41.5(9), which supports the Iowa itemized deduction for a portion of the annual registration fee for older motor vehicles. This item is applicable for tax years beginning on or after January 1, 2002.

Item 8 amends individual income tax subrule 42.2(11) for the research activities credit to include possible federal revisions in that credit which were made in 2001.

Item 9 adopts new subrule 43.4(7) for the Keep Iowa Beautiful fund checkoff. The subrule provides that the amount of checkoff of $1 or more will be reduced accordingly if the refund due or amount paid with the return is insufficient to pay the checkoff. The subrule provides that once an individual’s return has been filed with the checkoff, the individual cannot amend the designation to the checkoff. The subrule describes how the Keep Iowa Beautiful checkoff is allowed only after certain other obligations of the individual are satisfied and that previously enacted checkoffs have a higher priority than this checkoff.

Item 10 amends rule 701—46.7(422) for the Accelerated Career Education (ACE) Program, which is a training program administered by the Department of Economic Development. The amendment provides that program costs incurred prior to the signing of an agreement are now eligible for the credit from withholding to the extent the costs were incurred on or after July 1, 2000.

Item 11 amends subrules 52.7(3) and 52.7(5) for the research activities credit for corporations and the research activities credit for increasing research activities in a quality jobs enterprise zone. The amendments show that the Department has adopted possible 2000 federal income tax changes which might impact the calculation of the Iowa research activities credits.

Items 12 and 13 amend the implementation clauses for rules 701—52.10(15) and 701—52.14(422) for the research activities credits for research activities conducted by an eligible business and for research activities conducted in an enterprise zone. The amendments show that those research activities credits are to be computed with possible changes in the federal research activities credit that occurred in the 2000 calendar year.

Item 14 adopts new subrule 53.11(8) for the additional deduction for hiring individuals on parole or probation and corrects some Iowa Code references relating to adult offenders.

Implementation clauses for many of the revised rules were also amended to show the specific legislative acts that resulted in the revisions.

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 rules 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 February 25, 2002, 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 February 12, 2002. 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)281–8036 or at the Department of Revenue and Finance offices on the fourth floor of the Hoover State Office Building.

Requests for a public hearing must be received by February 12, 2002.

These amendments are intended to implement Iowa Code sections 15.333, 15.335, 15A.9, 260G.4A, 314.28, 421.17, 422.5, 422.7, 422.9, 422.10, 422.12A, 422.13, 422.16, 422.33 and 422.35 and 2001 Iowa Acts, House File 715, House File 737, House File 757, House File 759, Senate File 140, Senate File 141 and Senate File 350.

The following amendments are proposed.

ITEM 1. Amend rule 701—7.5(17A) as follows:

Amend subrule 7.5(3) by adopting the following new first and second unnumbered paragraphs:

A taxpayer or the taxpayer’s representative using E–mail or other electronic means to submit an income tax return, a sales tax or use tax return, a return for any other tax administered by the department, an application for a sales tax permit or other permit, a deposit form for remitting withholding tax or other taxes administered by the department, or any other document to the department may use an electronic signature or a signature designated by the department in lieu of a handwritten signature. To the extent that a taxpayer or the taxpayer’s representative submits a tax return, deposit document, application or other document by E–mail or other electronic means to the department with an electronic signature or signature designated by the department, the taxpayer should include in the record of the document the taxpayer’s federal identification number so that the taxpayer’s identity is established. For purposes of this rule, “electronic signature” means an electronic sound, symbol, or process attached to or logically associated with a tax return, deposit document, or other document filed with the department and executed or adopted by a person with the intent to sign the return, deposit document, or other document filed with the department. For purposes of this rule, “signature designated by the department” means a symbol or other information provided by the department to the taxpayer or the taxpayer’s representative that is to serve instead of the handwritten signature of the taxpayer.

In a situation where the taxpayer or the taxpayer’s representative has submitted a return or other document to the department by E–mail, the taxpayer should include the taxpayer’s E–mail address in the record of the document. However, notwithstanding the above information, a taxpayer may not submit a tax return or other document to the department with an electronic signature when a handwritten signature is required with the return or document by federal or state law.

Adopt the following new implementation clause:

This rule is intended to implement Iowa Code chapters 17A and 554D and section 421.17.

ITEM 2. Amend rule 701—39.1(422) as follows:

Amend subrule 39.1(1), paragraph “b,” as follows:

b. For tax years beginning on or after January 1, 1993. For each taxable year every resident of Iowa, except any resident claimed as a dependent on another person’s return, whose net income is greater than $13,500 in the case of married persons filing jointly, filing separately on a combined return or filing separate returns, unmarried heads of household and surviving spouses or greater than $9,000 in the case of single persons must make, sign, and file a return. Each resident who is claimed as a dependent on another person’s return and whose net income is $4,000 or more, or whose net income is $5,000 or more for tax years beginning on or after January 1, 2001, must make, sign, and file a return. For purposes of this paragraph, the portion of a lump sum distribution subject to separate federal tax is included in net income to determine if a person has to file a return.

Amend subrule 39.1(2), paragraph “c,” as follows:

c. Tax years beginning on or after January 1, 1993. For each taxable year, every nonresident of Iowa must make, sign, and file an Iowa return if the nonresident has a net income of $1,000 or more from Iowa sources and meets one or more of the following conditions: (1) has a net income from all sources that is greater than $13,500 in the case of married persons filing jointly, filing separately on a combined return or filing separate returns, unmarried heads of household and surviving spouses, (2) has a net income from all sources greater than $9,000 in the case of single persons, (3) is claimed as a dependent on another person’s return and has a net income from all sources of $4,000 or more or has a net income from all sources of $5,000 or more if the tax year begins on or after January 1, 2001. For purposes of this paragraph, the portion of a lump sum distribution subject to separate federal tax that is allocable to Iowa is included in net income to determine if the nonresident has sufficient net income to make and file a return.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code sections 422.5 and 422.13 as amended by 2001 Iowa Acts, Senate File 140.

ITEM 3. Amend rule 701—40.21(422) as follows:

Adopt the following new seventh unnumbered paragraph:

The additional deduction applies to any individual hired on or after July 1, 2001, whether or not domiciled in Iowa at the time of hiring, who is on parole or probation and to whom either the interstate probation and parole compact under Iowa Code section 907A.1 or the compact for adult offenders under Iowa Code chapter 907B applies. The amount of additional deduction for hiring this individual is equal to 65 percent of the wages paid, but the additional deduction is not to exceed $20,000 for the first 12 months of wages paid for work done in Iowa.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code section 422.7 as amended by 1998 2001 Iowa Acts, House File 2162 Files 287 and 759.

ITEM 4. Amend subrule 40.38(1) paragraph “c,” final numbered paragraph “7,” as follows:

7. Rental activities or businesses. For purposes of this subrule subrules 40.38(1) and 40.38(7), the general rule is that a taxpayer who actively participates in a rental activity or business which would be considered to have been material participation in another business or activity would not be deemed to have had material participation in the rental activity unless covered by a specific exception in this subrule (for example, the exceptions for farm rental activities in numbered paragraphs “4,” “5,” and “6” immediately above). Rental activity or rental business is as the term is used in Section 469(c) of the Internal Revenue Code.

ITEM 5. Amend 701—Chapter 40 by adopting the following new rules:

701—40.56(422) Taxation of income from the sale of obligations of the state of Iowa and its political subdivisions. For tax years beginning on or after January 1, 2001, income from the sale of obligations of the state of Iowa and its political subdivisions shall be added to Iowa net income to the extent not already included. Gains or losses from the sale orother disposition of bonds issued by the state of Iowa or its political subdivisions shall be included in Iowa net income unless the law authorizing these obligations specifically exempts the income from the sale or other disposition of the bonds from the Iowa individual income tax.

This rule is intended to implement Iowa Code section 422.7 as amended by 2001 Iowa Acts, House File 715.

701—40.57(422) Installment sales by taxpayers using the accrual method of accounting. For tax years beginning on or after January 1, 2000, taxpayers who use the accrual method of accounting and who have sales or exchanges of property that they reported on the installment method for federal income tax purposes must report the total amount of the gain or loss from the transaction in the tax year of the sale or exchange pursuant to Section 453 of the Internal Revenue Code as amended up to and including January 1, 2000.

EXAMPLE. Taxpayer Jones uses the accrual method of accounting. In 2001, Mr. Jones sold farmland he had held for eight years for $200,000 which resulted in a capital gain of $50,000. For federal income tax purposes, Mr. Jones elected to report the transaction on the installment basis, where he reported $12,500 of the gain on his 2001 federal return and would report capital gains of $12,500 on each of his federal returns for the 2002, 2003 and 2004 tax years.

However, for Iowa income tax purposes, Mr. Jones must report on his 2001 Iowa return the entire capital gain of $50,000 from the land sale.

This rule is intended to implement Iowa Code section 422.7 as amended by 2001 Iowa Acts, Senate File 140.

ITEM 6. Amend rule 701—41.3(422) as follows:

Adopt the following new subrule:

41.3(3) Federal rebate received in 2001. For tax years beginning in the 2001 calendar year, the federal tax rebate or advanced refund of federal income tax provided to certain individuals in 2001 pursuant to the federal Economic Growth and Tax Relief Reconciliation Act of 2001 is not to be included as part of an individual’s federal income tax refund for the individual’s federal tax deduction for Iowa individual income tax purposes. The federal rebate is also referred to as the tax reduction credit.

EXAMPLE. John and Betty Smith received a federal refund of $1,200 in March 2001 from federal income tax that had been deducted on their 2000 Iowa individual income tax return. The Smiths also received a refund of federal income tax of $500 in June 2001 from an amended 1999 federal return. The federal income tax refunded had been deducted on the Smiths’ 1999 Iowa income tax return. Finally, the Smiths received a $600 federal rebate in August 2001. When the Smiths file their 2001 Iowa return, they must report an aggregate federal income tax refund of $1,700. This is $1,200 from the refund from their 2000 federal return and $500 from the refund from their amended 1999 federal return. However, the Smiths are not to include as part of the federal income tax refund shown on their 2001 Iowa return the $600 federal rebate they received in August 2001.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code section 422.9 as amended by 2001 Iowa Acts, House File 757.

ITEM 7. Amend rule 701—41.5(422) as follows:

Adopt the following new subrule:

41.5(9) Deduction of older motor vehicle registration fee. For tax years beginning on or after January 1, 2002, individuals who itemize deductions for Iowa income tax purposes may claim a deduction for 60 percent of the annual registration fee paid for certain older motor vehicles. This deduction applies to a 1994 model year vehicle or a newer model year vehicle that is nine model years old or older. This deduction also applies to a 1993 or older motor vehicle which has been transferred to a new owner or to a 1993 or older model vehicle that was brought into Iowa on or after January 1, 2002. However, the deduction otherwise allowed pursuant to this subrule is not allowed to the extent that the vehicle was used in the taxpayer’s trade or business so that the deduction for the registration of the vehicle has already been allowed in the computation of Iowa net income.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code section 422.9 as amended by 1996 2001 Iowa Acts, Senate File 2467 350.

ITEM 8. Amend rule 701—42.2(422) as follows:

Amend subrule 42.2(11), paragraph “b,” first unnumbered paragraph, as follows:

For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that for purposes of the alternative incremental credit described in paragraph “b” of this subrule, such

amounts are limited to research activities conducted within this state. For purposes of this subrule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2000 2001.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code sections 15.333, 422.10 as amended by 2001 Iowa Acts, Senate File 140, 422.11A, 422.12 and 422.12B.

ITEM 9. Amend rule 701—43.4(56,422,456A) as follows:

Adopt the following new subrule:

43.4(7) Keep Iowa beautiful fund checkoff. For tax years beginning on or after January 1, 2001, a taxpayer filing an individual income tax return can designate a checkoff of $1 or more to the keep Iowa beautiful fund. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the keep Iowa beautiful fund, the amount credited to the keep Iowa beautiful fund will be reduced accordingly. Once the taxpayer has designated a contribution to the keep Iowa beautiful fund on an individual income tax return filed with the department of revenue and finance, the taxpayer cannot amend the designation.

A designation to the keep Iowa beautiful checkoff may be allowed only after obligations of the taxpayer to the department of revenue and finance, the child support recovery unit of the department of human services, the foster care recovery unit of the department of human services, the college student aid commission, the office of investigations of the department of human services, the district courts, other state agencies, the Iowa election campaign checkoff, the Iowa fish and game protection fund checkoff and the state fair foundation checkoff are satisfied.

On or before January 31 of the year following the year in which Iowa income tax returns with contributions to the keep Iowa beautiful fund are due, the department of revenue and finance is to certify to the state treasurer the amount designated to the keep Iowa beautiful fund on those returns.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code sections 56.18, 236.15A, 236.15B, 422.12D, and 422.12E as amended by 1997 and 2001 Iowa Acts, Senate File 542, House File 737, sections 1 and 2 and 456A.16.

ITEM 10. Amend rule 701—46.7(422) as follows:

Amend the introductory paragraph as follows:

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 that 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 enter 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 unless the costs are incurred on or after July 1, 2000.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code sections 260G.4A as amended by 2001 Iowa Acts, Senate File 141, and 422.16 as amended by 2000 Iowa Acts, chapter 1196.

ITEM 11. Amend rule 701—52.7(422) as follows:

Amend subrule 52.7(3), paragraph “c,” as follows:

c. For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in paragraph “b” of this subrule, such amounts are limited to research activities conducted within this state. For purposes of this rule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2000 2001.

Amend subrule 52.7(5), paragraph “c,” as follows:

c. For purposes of this subrule, the terms “base amount,” “basic research payment,” and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under Section 41 of the Internal Revenue Code, except that, for purposes of the alternative incremental credit described in subrule 52.7(3) of this rule, such amounts are limited to research activities conducted within the quality jobs enterprise zone. For purposes of this rule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2000 2001.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code section 422.33 as amended by 2000 2001 Iowa Acts, chapter 1194 Senate File 140.

ITEM 12. Amend the implementation clause for rule 701—52.10(15) as follows:

This rule is intended to implement Iowa Code section 15.333 as amended by 2000 Iowa Acts, chapter 1213, section 1, and 2001 Iowa Acts, House File 349, section 1, and Iowa Code section 15.335 as amended by 2001 Iowa Acts, Senate File 140.

ITEM 13. Amend the implementation clause for rule 701—52.14(422) as follows:

This rule is intended to implement Iowa Code sections 15A.9(8) as amended by 2001 Iowa Acts, Senate File 140, and 15E.186.

ITEM 14. Amend rule 701—53.11(422) as follows:

Adopt the following new subrule:

53.11(8) The additional deduction applies to any individual hired on or after July 1, 2001, whether or not domiciled in Iowa at the time of hiring, who is on parole or probation and to whom either the interstate probation and parole compact under Iowa Code section 907A.1 or the compact for adult offenders under Iowa Code chapter 907B applies. The amount of additional deduction for hiring this individual is equal to 65 percent of the wages paid, but the additional deduction is not to exceed $20,000 for the first 12 months of wages paid for work done in Iowa. The conditions set out in the unnumbered paragraphs under paragraph “b” of subrule 53.11(7) also apply to the deduction for the hiring of certain individuals in this subrule.

Amend the implementation clause as follows:

This rule is intended to implement Iowa Code sections 16.1 and 422.35 as amended by 2001 Iowa Acts, House Files 287 and 759.

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development hereby amends Chapter 28, “Local Housing Assistance Program,” Iowa Administrative Code.

The amendments remove all references to the need for a preapplication for the Local Housing Assistance Program. In addition, the amendments remove the requirement for a housing needs assessment in order to apply for funds.

In compliance with Iowa Code section 17A.4(2), the Department finds that notice and public participation are impracticable and contrary to the public interest because the amendments eliminate a step in the application process, thereby making it easier for potential applicants to apply for funds. By shortening the application process, funds may be made available to program recipients in a more timely manner.

The Department finds, pursuant to Iowa Code section 17A.5(2)“b”(2), that the normal effective date of the amendments, 35 days after publication, should be waived and the amendments be made effective on December 21, 2001. These amendments confer a benefit on the public by easing the requirements for application for funds and shortening the time frame for award of funds.

The Department is taking the following steps to notify potentially affected parties of the effective date of the amendments: publishing the amendments in the Iowa Administrative Bulletin, providing free copies on request, having the amendments available at the Department’s Web site, and having copies available wherever requests for information about the program are likely to be made.

These amendments are intended to implement Iowa Code section 15.353.

These amendments became effective on December 21, 2001.

The following amendments are adopted.

ITEM 1. Amend 261—Chapter 28, parenthetical implementation statutes in each rule number, by striking “(77GA,HF732)” and inserting “(15)”.

ITEM 2. Amend rule 261—28.2(15) by rescinding the definition of “housing needs assessment.”

ITEM 3. Amend rule 261—28.5(15) by rescinding subrules 28.5(4) to 28.5(7).

ITEM 4. Rescind and reserve subrule 28.6(1).

ITEM 5. Amend rule 261—28.7(15) by rescinding “1” and renumbering “2” to “13” as “1” to “12.”

[Filed Emergency 12/21/01, effective 12/21/01]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of Iowa Code sections 88.5 and 17A.3(1), the Labor Commissioner adopts amendments to Chapter 4, “Recording and Reporting Occupational Injuries and Illnesses,” Iowa Administrative Code.

These amendments adopt by reference new federal occupational safety and health record–keeping regulations.

Pursuant to Iowa Code section 17A.5(2)“b”(1) and (2), these amendments became effective January 1, 2002. Adoption confers a benefit, removes a restriction and is required by statute. Language contained within the federal standard implements some changes in record keeping on January 1, 2002, and other changes in record keeping on January 1, 2003.

The principal reasons for adoption of these amendments are to implement Iowa Code chapter 88 and to protect the safety and health of Iowa’s workers. Adoption of these amendments is required by 29 Code of Federal Regulations Subsection 1952.4 and Iowa Code subsection 88.5(1)“a.”

Notice of Intended Action was published in the Iowa Administrative Bulletin on November 14, 2001, as ARC 1099B. These amendments are identical to the Notice of Intended Action. In compliance with Iowa Code section 88.5(1)“b,” a public hearing was scheduled for December 4, 2001. No comments were received.

These amendments are intended to implement Iowa Code section 88.5.

These amendments became effective January 1, 2002.

The following amendments are adopted.

ITEM 1. Amend rule 875—4.1(88) as follows:

875—4.1(88) Purpose and scope. These rules provide for record keeping and reporting by employers covered under Iowa Code chapter 88 as necessary or appropriate for enforcement of the Act, for developing information regarding the causes and prevention of occupational accidents and illnesses, and for maintaining a program of collection, compilation and analysis of occupational safety and health statistics. This chapter applies to public and private employers, andthe use of the word “company” or “companies” in the standard adopted by reference herein shall not limit the scope or application of this chapter to private employers.

ITEM 2. Rescind rules 875—4.2(88) to 875—4.19(88) and adopt the following new rules in lieu thereof:

875—4.2(88) First reports of injury. All employers shall report to the Iowa division of workers’ compensation any occupational injury or illness which temporarily disables an employee for more than three days or which results in permanent total disability, permanent partial disability or death. This report shall be made within four days from such event when such injury or illness is alleged by the employee to have been sustained in the course of the employee’s employment. First reports of injury are to be filed in the form and manner required by the division of workers’ compensation. A report to the division of workers’ compensation is considered to be a report to the division of labor services. The division of workers’ compensation shall forward all reports to the division of labor services. This rule does not excuse employers from notifying the division of labor services of fatalities or multiple hospitalization incidents.

875—4.3(88) Record–keeping regulations. Federal Occupational Safety and Health Administration regulations of 29 CFR Sections 1904.0 through 1904.46 as published at 66 Fed. Reg. 6122 to 6135 (January 19, 2001) are adopted, except that reporting of fatalities and multiple hospitalization incidents required by 29 CFR 1904.39 must be made to the IOSH Administrator by visiting 1000 E. Grand Avenue, Des Moines, Iowa, or by calling 1–800–JOB–IOWA. The number for reporting fatalities and multiple hospitalization incidents outside of normal business hours is (877)242–6742. Amendments to this federal standard published at the following locations are also adopted:

66 Fed. Reg. 52031–52034 (October 12, 2001)

ITEM 3. Amend 875—Chapter 4, implementation clause, as follows:

These rules are intended to implement Iowa Code sections 17A.3, 84A.1, 84A.2, 88.2, 88.6(3), and 88.18 chapter 88.

[Filed Emergency After Notice 12/19/01, effective 1/1/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of Iowa Code section 100.35, the Department of Public Safety hereby amends Chapter 5, “Fire Marshal,” Iowa Administrative Code.

Iowa Code section 137C.35 exempts bed and breakfast inns from the fire safety rules that apply generally to hotels and requires the Fire Marshal to adopt rules that apply specifically to bed and breakfast inns. Fire safety requirements for bed and breakfast inns (rule 661—5.820(100)) were adopted earlier this year and published in the Iowa Administrative Bulletin on March 21, 2001, as ARC 0566B. After concerns were raised regarding some of the requirements in the rule affecting bed and breakfast inns, the Administrative Rules Review Committee at its meeting on April 6, 2001, imposed a 70–day delay on the May 1, 2001, effective date of the rule and other coordinating amendments contained in ARC 0566B. At the meeting of the Administrative Rules Review Committee held June 5, 2001, representatives of the Department reported that differences regarding provisions of the adopted rule would not be settled prior to the expiration of the 70–day delay. At the request of the Department, the Committee then delayed the May 1, 2001, effective date until the end of the 2002 regular session of the Iowa General Assembly.

Representatives of the Department and the bed and breakfast inn industry have since met and discussed the differences over provisions in the adopted rule. While some points of disagreement remain, most of the differences have been resolved, and the Department is now undertaking to amend rule 661—5.820(100) to reflect changes agreed to by the Department and the industry. In order to expedite what has been a lengthy process, and in light of the fact that as long as the effective date of the adopted rule is delayed bed and break–

fast inns are not subject to any fire safety regulations, these amendments are Adopted and Filed Emergency and will become effective on February 1, 2002. The Department will also request that the Administrative Rules Review Committee lift its delay imposed at the June 5, 2001, meeting effective February 1, 2002.

Pursuant to Iowa Code section 17A.4(2), the Department finds that notice and public participation prior to the adoption of these amendments are impracticable. Since bed and breakfast inns are exempted by statute from compliance with fire safety rules that apply generally to hotels and because rule 661—5.820(100) is under a session delay, there are currently no fire safety regulations in force for bed and breakfast inns. Therefore, expediting the implementation of fire safety requirements for bed and breakfast inns is essential.

Pursuant to Iowa Code section 17A.5(2)“b”(2), the Department further finds that the normal effective date of these amendments, 35 days after publication, should be waived and these amendments made effective February 1, 2002, after filing with the Administrative Rules Coordinator. These amendments confer a benefit upon the public by establishing fire safety standards for bed and breakfast inns.

These amendments are also published herein under Notice of Intended Action as ARC 1287B to allow for public participation and comment.

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

These amendments will become effective on February 1, 2002.

The following amendments are adopted.

ITEM 1. Amend rule 661—5.820(100), parenthetical implementation, as follows:

ITEM 2. Amend subrule 5.820(1) as follows:

5.820(1) Appliances. Heating, cooking and gas and electrical equipment and appliances must conform with nationally recognized codes and standards and be installed and maintained in accordance with manufacturer’s recommendations. If the building has an operable solid fuel fireplace, all components must be cleaned and maintained in accordance with NFPA 211, 1996 2000 edition.

ITEM 3. Rescind subrule 5.820(2) and adopt in lieu thereof the following new subrule:

5.820(2) Smoke detectors. Each bed and breakfast inn shall have an operable smoke detector in each guest room, at the top of each stairwell, and at intervals not to exceed 30 feet in each exit corridor. Detectors shall be installed and maintained in accordance with NFPA 72, 1999 edition.

a. Existing facilities. In bed and breakfast inns which begin operation or are constructed or remodeled prior to February 1, 2002, required smoke detectors may be battery operated.

b. New facilities. Each bed and breakfast inn which begins operation or is constructed or remodeled on or after February 1, 2002, shall be equipped with a system of interconnected smoke detectors with detectors at the top of each stairwell and at intervals not to exceed 30 feet in each exit corridor. These smoke detectors shall receive primary power from the building’s electrical wiring and shall include battery backup. Each guest room shall be equipped with a smoke detector which may be a single station detector that complies with subrule 5.807(6).

ITEM 4. Amend subrule 5.820(9) as follows:

5.820(9) Additional prohibitions. Candles, lamps with power sources other than electricity or solid fuel fireplaces shall not be used in guest sleeping rooms.

[Filed Emergency 1/2/02, effective 2/1/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of Iowa Code section 12D.2(17), the Treasurer of State hereby amends Chapter 16, “Iowa Educational Savings Plan Trust,” Iowa Administrative Code.

The purpose of these amendments is to eliminate the references to the penalty set out in subrules 16.10(8) and 16.13(2) and rule 16.11(12D). Due to a change in federal tax code and IRS rules, the penalty is no longer required. The new federal law and rules became effective January 1, 2002.

In compliance with Iowa Code section 17A.4(2), the Treasurer finds that notice and public participation are unnecessary because these amendments simply ensure that the program is in compliance with the federal law and IRS rules.

The Treasurer also finds, pursuant to Iowa Code section 17A.5(2)“b”(2), that the normal effective date of these amendments should be waived and these amendments should be made effective upon filing on January 2, 2002, as they confer an immediate benefit to the participants in the program by eliminating a potential double penalty and to the program administrator by reducing the paperwork required to administer the program.

These amendments became effective on January 2, 2002.

These amendments are intended to implement Iowa Code chapter 12D.

The following amendments are adopted.

ITEM 1. Rescind subrule 16.10(8) and renumber subrule 16.10(9) as 16.10(8).

ITEM 2. Amend rule 781—16.11(12D), first and second unnumbered paragraphs, as follows:

The participant shall receive the account balance less a penalty fee equal to 10 percent of the net earnings credited to the account. Also, any Any undistributed endowment fund earnings credited or earmarked to the account revert back to the endowment fund. For federal income tax purposes, that portion of a nonqualified distribution that constitutes earnings must be included in the participant’s taxable income in the year in which it is distributed.

A participant may, however, transfer any remaining balance in one account to an existing or new account for another designated beneficiary by completing a new participation agreement with the program administrator. If the new beneficiary is a member of the family of the former beneficiary, no penalty fee will be imposed.

ITEM 3. Amend subrule 16.13(2), first unnumbered paragraph, as follows:

The participant shall receive the account balance less a penalty fee equal to 10 percent of the net earnings credited to the account and less any endowment fund earnings earmarked to the account. The penalty fee shall be placed in the administrative fund. Any endowment fund earnings earmarked to the account shall revert back to the endowment fund.

[Filed Emergency 1/2/02, effective 1/2/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts amendments to Chapter 58, “New Jobs and Income Program,” Iowa Administrative Code.

The amendments are intended to balance two important policies: maintaining program flexibility to meet the needs of new and expanding businesses and ensuring that the state’s financial assistance resources promote fiscal responsibility. Comments about how the Department can best meet the stated objectives were actively sought from interested parties, particularly with regard to negotiation of certain program benefits, proposed negotiation criteria, and procedures for applying these criteria.

Notice of Intended Action was published in the Iowa Administrative Bulletin on November 14, 2001, as ARC 1079B.

A public hearing was held on December 4, 2001. One comment from the Greater Des Moines Partnership was received. The Partnership submitted written comments objecting to the negotiated benefits provisions of the proposed amendments. The Partnership’s concern is that the negotiation concept might limit local developers’ ability to quantify in advance and communicate the benefits that would be available to a company. In addition, the Partnership questioned the use of “number and quality of jobs to be created” as an evaluation factor. They stated that while job growth is important, using job creation as a measurement of economic growth was viewed as an outdated concept.

The Department and the IDED Board considered the Partnership’s comments, but elected not to change the proposed negotiation criteria or negotiation process. The Department and the Board are of the opinion that the criteria provide an effective framework for negotiating project benefit levels to encourage quality projects. The adopted amendments are identical to the proposed amendments.

Item 1 clarifies the policy that projects that have been initiated before receiving application approval from the Department are not eligible for assistance.

Item 2 amends the definition of “project completion” to specify that completion will be considered as occurring on the date when all improvements included in the economic development area have been made. New definitions for “project” and “project initiation” are adopted. “Project” is defined as a set of activities proposed in the application and which will accomplish New Jobs and Income Program goals. The definition for “project initiation” more clearly delineates when a project will be considered ineligible for assistance due to lack of demonstrated need.

In Item 3, the rule concerning application prerequisites is amended to notify applicants that the Department will negotiate with an eligible business to determine the amount of certain tax incentives and assistance available for a project. The criteria used to establish the amount of benefits available are described.

The amendments in Item 4 clarify that the amount of program benefits available to a business will be reflected in an agreement executed between the Department and the business. The amendments also update statutory references, incorporate legislative changes, and describe administrative requirements that must be met for the processing of tax credit certificates to cooperatives.

Item 5 extends from six months to one year the time period a business has to file with the Department of Revenue and Finance for a refund of sales, service and use taxes paid to contractors or subcontractors.

The Board adopted these amendments on December 20, 2001.

These amendments are intended to implement 2001 Iowa Acts, chapter 123.

These amendments will become effective on February 27, 2002.

EDITOR’S NOTE: Pursuant to recommendation of the Administrative Rules Review Committee published in the Iowa Administrative Bulletin, September 10, 1986, the text of these amendments [58.1 to 58.4] is being omitted. These amendments are identical to those published under Notice as ARC 1079B, IAB 11/14/01.

[Filed 12/21/01, effective 2/27/02]
[Published 1/23/02]

[For replacement pages for IAC, see IAC Supplement 1/23/02.]

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts amendments to Chapter 59, “Enterprise Zone Program,” Iowa Administrative Code.

The amendments are intended to balance two important policies: maintaining program flexibility to meet the needs of new and expanding businesses and ensuring that the state’s financial assistance resources promote fiscal responsibility. Comments about how the Department can best meet the stated objectives were actively sought from interested parties, particularly with regard to negotiation of certain program benefits, proposed negotiation criteria, and procedures for applying these criteria.

Notice of Intended Action was published in the Iowa Administrative Bulletin on November 14, 2001, as ARC 1080B.

A public hearing was held on December 4, 2001. The Department received comments from the Professional Developers of Iowa and three cities: Davenport, Des Moines, and Sioux City. The comments from Des Moines were presented in person at the public hearing by representatives from the Greater Des Moines Partnership and the City of Des Moines. Written comments were also received from the Professional Developers of Iowa, the Davenport Enterprise Zone Commission, the City of Sioux City and the Siouxland Chamber of Commerce/The Siouxland Initiative.

With regard to the amendments dealing with negotiations on Enterprise Zone benefits, each community expressed concern about negotiating the investment tax credit (ITC) and the research and development (R&D) tax credit under the Enterprise Zone program. The general opinion of those commenting was that the Enterprise Zone program was intended to assist projects in blighted or economically distressed areas and the benefits offset the additional costs associated with redeveloping these areas. If benefits were negotiated, it might deter redevelopment in these areas. The City of Des Moines proposed that the Department reserve the right to negotiate only with Enterprise Zone applicants that plan to invest more than $10 million in the Enterprise Zone. This proposal was incorporated in Item 4 of the final amendments. In addition, there was concern about the uncertainty associated with negotiations and how this might hinder local developers in their efforts to encourage businesses to locate within an Enterprise Zone.

The Department received mixed comments from the communities about the proposed definition of “project initiation.” One community was very supportive and had planned to adopt this definition as a local requirement until the state proposed the rule change. One community asked for clarification of the definition. The remaining community opposed the change on the basis that there are other more pressing factors that need to be addressed with respect to relocation or expansion projects and the state should continue to be lenient with respect to allowing companies to apply after their proj– ects have started.

There was much confusion associated with the proposed change in Item 5. The proposed change in the following sentence in paragraph 59.6(1)“d” was interpreted by some as establishing a new wage standard: “However, in any circumstance, the wage paid by the business for the project jobs shall not be less than $7.50 per hour the statutory minimum.” This was not the intent of the proposed amendment, and this change is not adopted in the final amendments.

Item 1 clarifies the policy that projects that have been initiated before receiving application approval from the Department are not eligible for Enterprise Zone assistance.

Item 2 adopts three new definitions: “development business,” “project” and “project initiation.” “Development business” is a new category of eligible applicants, as authorized by 2001 Iowa Acts, chapter 141. “Project” is defined as a set of activities proposed in the application which will accomplish Enterprise Zone program goals. A definition for “project initiation” is adopted to more clearly delineate when a project will be considered ineligible for assistance due to lack of demonstrated need.

Item 3 rescinds an outdated rule concerning county zone designation.

Item 4 adds a reference to the fourth way a business may apply for assistance: as an eligible development business. This rule is further amended to add a new subrule concerning the ability of the Department to negotiate certain program benefits using the criteria outlined. In response to public comments, the final amendments include a new subrule, 59.5(3), that specifies that the Department reserves the right to negotiate benefits for projects that invest over $10 million. Projects investing $10 million or less in an Enterprise Zone will be eligible to receive the maximum 10 percent investment tax credit and the 13 percent research activities credit.

Item 5 amends the rule concerning program requirements to notify applicants that the Department will negotiate with an eligible business to determine the amount of certain tax incentives and assistance available for a project. In Item 5, the rule that a company will be deemed eligible if it pays an hourly wage of $9.50 or greater is rescinded. Additional amendments clarify that the amount of program benefits available to a business will be reflected in an agreement executed between the Department and the business. The revisions update statutory references, incorporate legislative changes, describe administrative requirements that must be met for the processing of tax credit certificates to cooperatives, and provide that the Department will issue tax credits within a reasonable period of time rather than a stated date.

Item 6 rescinds the rule that, in order to be an eligible housing business, the per–house or per–unit valuation may not exceed $120,000. There is now no limit on the per–house or per–unit valuations. Item 6 also amends the rule so that the investment tax credit to be taken by the eligible housing business is now limited to the first $140,000 of value for each single–family house or for each multifamily unit.

Item 7 adds new rule 261—59.9(79GA,ch141) concerning eligible development businesses, a new category of eligible applicants authorized by 2001 Iowa Acts, chapter 141. During the comment period, IDED staff identified a criterion carried over from another rule within the chapter that would not be applicable to development businesses. Subparagraph 59.9(1)“e”(4) would have required “information on the impact the development business’s project will have on other Iowa businesses in competition with it.” In the final rule this requirement was not adopted.

Item 8 amends the rule applicable to Commission review of applications by adding references to “eligible development business.”

Items 9 and 10 add language to indicate that the level of certain benefits available to an eligible business will be as negotiated with the Department.

Item 11 amends the rule dealing with the calculation of repayment by a development business in the event of noncompliance.

These amendments were adopted by the IDED Board on December 20, 2001.

These amendments will become effective on February 27, 2002.

These amendments are intended to implement 2001 Iowa Acts, chapter 141.

The following amendments are adopted.

ITEM 1. Amend rule 261—59.1(15E) as follows:

261—59.1(15E) Purpose. The purpose of the establishment of an enterprise zone in a county or city is to promote new economic development in economically distressed areas. Eligible businesses (including eligible housing businesses) Businesses that are eligible and locating or located in an enterprise zone and approved by the department are authorized under this program to receive certain tax incentives and assistance. The intent of the program is to encourage communities to target resources in ways that attract productive private investment in economically distressed areas within a county or city. Projects, except for those of development businesses, that have already been initiated before receiving formal application approval by the department shall not be eligible for tax incentives and assistance under this program.

ITEM 2. Amend rule 261—59.2(15E) by adopting the following new definitions in alphabetical order:

“Development business” means a developer or development contractor that constructs, expands or rehabilitates a building space with a minimum capital expenditure of $500,000.

“Project” means the activity, or set of activities, proposed in the application by the business, which will result in accomplishing the goals of the enterprise zone program, and for which the business requests the benefits of the enterprise zone program.

“Project initiation” means any one of the following: the start of construction of new or expanded buildings; the start of rehabilitation of existing buildings; the purchase or leasing of existing buildings; or the installation of new machinery and equipment or new computers to be used in the operation of the business’s project. The purchase of land or signing an option to purchase land or earth moving or other site development activities not involving actual building construction, expansion or rehabilitation shall not constitute project initiation. This definition does not apply to eligible development businesses.

ITEM 3. Rescind subrule 59.3(4).

ITEM 4. Amend rule 261—59.5(15E) as follows:

59.5(1) Program categories. To participate in the enterprise zone program, a business must qualify under one of three four categories: as an eligible business, an alternative eligible business, or an eligible housing business, or an eligible development business. Refer to rule 261—59.6(15E) for a description of the eligibility requirements and benefits available to a qualified “eligible business.” Refer to rule 261—59.7(15E) for a description of the eligibility requirements and benefits available to a qualified “alternative eligible business.” Refer to rule 261—59.8(15E) for a description of the eligibility requirements and benefits available to a qualified “eligible housing business.” Refer to rule 261— 59.9(15E) for a description of the eligibility requirements and benefits available to a qualified “eligible development business.”

ITEM 5. Amend rule 261—59.6(15E) as follows:

59.6(1) Requirements. A business which is or will be located in an enterprise zone is eligible to receive incentives and assistance under the Act if the business meets all of the following:

a. to c. No change.

d. Wage levels. The business pays an average wage that is at or greater than 90 percent of the lesser of the average county wage or average regional wage, as determined by the department. However, in any circumstance, the wage paid by the business for the project jobs shall not be less than $7.50 per hour. The department will periodically calculate, revise and issue the “average county wage” and the “average regional wage” figures that will be used for determining business eligibility in the program. However, in any circumstance, a company will be deemed eligible for participation in the enterprise zone if it pays an hourly wage of $9.50 or greater. The local enterprise zone commission may establish higher company eligibility wage thresholds if it so desires.

e. and f. No change.

59.6(2) No change.

59.6(3) Benefits. The department reserves the right to negotiate the amount of all program benefits except the following benefits: the new jobs supplemental credit; the value–added property tax exemption; and the refund of sales, service and use taxes paid to contractors and subcontractors.

The following incentives and assistance are may be available to an eligible business within a certified enterprise zone, subject to the amount of incentives and assistance negotiated by the department with the eligible business and agreed upon as described in an executed agreement, only when the average wage of all the new project jobs meets the minimum wage requirements of 59.6(1)“d”:

a. and b. No change.

c. Investment tax credit and insurance premium tax credit.

(1) Investment tax credit. An eligible business may claim an investment tax credit as provided in Iowa Code section 15.333. A corporate income tax credit may be claimed of up to a maximum of 10 percent of the new investment which is directly related to new jobs created by the location or expansion of the business in the enterprise zone. If the business is a partnership, subchapter S corporation, limited liability company, or an estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. Any credit in excess of tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first. Subject to prior approval by the department in consultation with DRF, an eligible business whose project primarily involves the production of value–added agricultural products may elect to apply for a refund for all or a portion of an unused tax credit. For purposes of this paragraph, an eligible business includes a cooperative as described in Section 521 of the United States Internal Revenue Code which is not required to file an Iowa corporate income tax return, and whose approved project primarily involves the production of ethanol. The refund may be used against a tax liability imposed for individual income tax, corporate income tax, or franchise tax. The business participating in the enterprise zone may not claim an investment tax credit for capital expenditures above the amount stated in the agreement described in 261— 59.12(15E). An eligible business may instead seek to amend the contract, allowing the business to receive an investment tax credit for additional capital expenditures, or may elect to submit a new application within the enterprise zone.

(2) No change.

(3) Eligible capital expenditures. For purposes of this rule, the capital expenditures eligible for the investment tax credit or the insurance premium tax credit under the enterprise zone program are the costs of machinery and equipment as defined in Iowa Code section 427A.1(1)“e” and “j” purchased for use in the operation of the eligible business, the purchase prices of which have been depreciated in accordance with generally accepted accounting principles. For the investment tax credit and for the insurance premium tax credit, the cost of improvements made to real property which is used in the operation of the eligible business and which receives a partial property tax exemption for the actual value added as described in Iowa Code section 15.332 is an eligible capital expenditure. For the insurance premium tax credit, the cost of improvements made to real property which is used in the operation of the eligible business is an eligible capital expenditure.

(4) No change.

(5) Refunds. An eligible business whose project primarily involves the production of value–added agricultural products and whose application was approved by the department on or after May 26, 2000, may elect to receive as a refund all or a portion of an unused investment tax credit.

1. The department will determine whether a business’s project primarily involves the production of value–added agricultural products. Effective July 1, 2001, an eligible business that elects to receive a refund shall apply to the department for a tax credit certificate.

2. The business shall apply for a tax credit certificate using the form provided by the department. Requests for tax credit certificates will be accepted between May 1 and May 15 of each fiscal year. Only those eligible businesses that have completed projects before the May 1 filing date may apply for a tax credit certificate. For a cooperative described in Section 521 of the United States Internal Revenue Code that is not required to file an Iowa corporate income tax return, the department shall require the cooperative to submit a list of members whom the cooperative wishes to receive a tax credit certificate for their prorated share of ownership. The cooperative shall submit its list in a computerized electronic format that is compatible with the system used or designated by the department. The computerized list shall, at a minimum, include the name, address, social security number or taxpayer identification number, business telephone number and ownership percentage, carried out to six decimal places, of each cooperative member eligible for a tax credit certificate. The cooperative shall also submit a total dollar amount of the unused investment tax credits for which the cooperative’s members are requesting a tax credit certificate.

3. The department will make public by June 1 of each year the total number of requests for tax credit certificates and the total amount of requested tax credit certificates that have been submitted. By June 15 of each year any business that has submitted a request for a tax credit certificate for that year may be allowed to amend or withdraw any such request. The department will issue tax credit certificates by June 30 of each fiscal year within a reasonable period of time.

4. No change.

5. Tax credit certificates shall not be valid until the tax year following project completion. The tax credit certificates shall not be transferred except in the case of a cooperative as described in Section 521 of the United States Internal Revenue Code and which is not required to file an Iowa corporate income tax return, and whose approved project primarily involves the production of ethanol. For such a cooperative, the individual members of the cooperative are eligible to receive the tax credit certificates. Tax credit certificates shall be used in tax years beginning on or after July 1, 2001. A business shall not claim a refund of unused investment tax credit unless a tax credit certificate issued by the department is attached to the taxpayer’s tax return for the tax year during which the tax credit is claimed. Any unused investment tax credit in excess of the amount of the tax credit certificate issued by the department may be carried forward for up to seven years after the qualifying asset is placed in service or until depleted, whichever occurs first. An eligible business may apply for tax credit certificates once each year for up to seven years after the qualifying asset is placed in service or until the eligible business’s unused investment tax credit is depleted, whichever occurs first. For example, an eligible business which completes a project in October 2001 and has an investment tax credit of $1 million may apply for a tax credit certificate in May 2002. If, because of the proration of the $4 million of available credits for the fiscal year, the business is awarded a tax credit certificate in the amount of $300,000, the business may claim the $300,000 refund and carry forward the unused investment tax credit of $700,000 for up to seven years or until the credit is depleted, whichever occurs first.

d. No change.

e. Refund of sales, service and use taxes paid to contractors or subcontractors. A business is eligible for a refund of sales, service and use taxes paid to contractors and subcontractors as authorized in Iowa Code section 15.331A.

(1) An eligible business may apply for a refund of the sales and use taxes paid under Iowa Code chapters 422 and 423 for gas, electricity, water or sewer utility services, goods, wares, or merchandise, or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or equipping of a facility within the enterprise zone.

(2) Taxes attributable to intangible property and furniture and furnishings shall not be refunded. To receive a refund of the sales, service and use taxes paid to contractors or subcontractors, the eligible business must, within six months one year after project completion, make an application to DRF. For new manufacturing facilities, “project completion” means the first date upon which the average annualized production of finished product for the preceding 90–day period at the manufacturing facility operated by the eligible business within the enterprise zone is at least 50 percent of the initial design capacity of the facility. For existing facilities, “project completion” means the date of completion of all improvements included in the enterprise zone project.

f. No change.

(1) An investment tax credit received for the purchase price of land or improvements to real property. An eligible business that is not a development business may only claim an investment tax credit on additional, new improvements made to real property provided that these improvements were not included in the development business’s approved application for benefits.

(2) The refund of sales, service, and use taxes paid to contractors or subcontractors as described in paragraph 59.6(3)“e.” An eligible business that is not a development business may only claim a refund of sales, service and use taxes paid to contractors or subcontractors for new buildings or additions to existing buildings for improvements made to real property provided that these improvements were not included in the development business’s approved application for benefits.

(3) Value–added property tax exemptions. An eligible business that is not a development business may not claim a value–added property tax exemption for improvements to real property if the development business has received a property tax exemption due to those improvements to the real property.

59.6(4) and 59.6(5) No change.

ITEM 6. Amend rule 261—59.8(15E) as follows:

261—59.8(15E) Eligible housing business. An eligible housing business includes a housing developer or housing contractor.

59.8(1) Requirements. A housing business shall satisfy all of the following as conditions to receiving the benefits described in this rule.

a. The housing business must build or rehabilitate either:

(1) A minimum of four single–family homes with a value, after completion of the building or rehabilitation, not exceeding $120,000 for each home located in that part of a city or county in which there is a designated enterprise zone, or

(2) One multiple dwelling unit building containing three or more individual dwelling units with a total value per unit, after completion of the building or rehabilitation, not exceeding $120,000 located in that part of a city or county in which there is a designated enterprise zone.

b. to d. No change.

59.8(2) Benefits. A business that qualifies under the “eligible housing business” category is may be eligible to receive the following benefits for a period of ten years:

a. Income Investment tax credit. An eligible housing business, subject to negotiations with the department, may claim an income investment tax credit up to a maximum of10 percent of the new investment which is directly related to the building or rehabilitating of a minimum of four single–family homes located in that part of a city or county in which there is a designated enterprise zone or one multiple dwelling unit building containing three or more individual dwelling units located in that part of a city or county in which there is a designated enterprise zone. The new investment that may be used to compute the tax credit shall not exceed the new investment used for the first $140,000 of value for each single–family home or for the first $140,000 of value for each unit of a multiple dwelling unit building containing three or more units. The tax credit may be used to reduce tax liabilities imposed under Iowa Code chapter 422, Division II—personal net income tax; Division III—income taxes on corporations; or Division V—franchise tax on financial institutions. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs earlier. If the business is a partnership, subchapter S corporation, limited liability company, or estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The amount claimed by the individual shall be based upon the pro–rata share of the individual’s earnings of the partnership, subchapter S corporation, limited liability company, or estate or trust.

b. No change.

59.8(3) No change.

ITEM 7. Adopt new rule 261—59.9(79GA,ch141) as follows and renumber rules 261—59.9(15E) to 261— 59.13(15E) as 261—59.10(15E) to 261— 59.14(15E):

261—59.9(79GA,ch141) Eligible development business. An eligible development business includes a developer or development contractor.

59.9(1) Requirements. A development business shall satisfy all of the following conditions to receive the benefits described in this rule.

a. The development business must construct, expand or rehabilitate a building space with a minimum capital investment of at least $500,000. There are two partial exemptions to the $500,000 investment requirement:

(1) If the development business will be buying a vacant building suitable for industrial use, the fair market value of the building and land, not to exceed $250,000 as determined by the local enterprise zone commission, shall be counted toward the minimum $500,000 capital investment requirement.

(2) If the development business will be rehabilitating an existing building space that has been located within an area for at least five years and that area has been certified as an enterprise zone, the fair market value as established by an appraisal of the building, not to exceed $250,000, shall be counted toward the minimum $500,000 capital investment requirement.

Only one of these two exemptions may be used as an exemption by the development business in meeting the minimum capital investment requirement of at least $500,000.

b. Upon completion of the project, an approved development business shall not allow a retail business to occupy space within the building space described in the development business’s application.

c. The eligible development business shall complete its construction, expansion or rehabilitation within three years from the time the business receives approval from the department. The failure to complete construction, expansion or rehabilitation within three years shall result in the eligible development business’s becoming ineligible and subject to the repayment requirements and penalties in rule 261— 59.14(15E).

d. Prior to applying for assistance under this rule, an eligible development business shall enter into an agreement with at least one nondevelopment business for purposes of locating the business in all or a portion of the building space for a period of at least five years.

e. An eligible development business shall provide the local enterprise zone commission with all of the following information:

(1) The long–term strategic plan for the proposed development project, including infrastructure needs, and a copy of any agreement entered into by the eligible business as required under paragraph 59.9(1)“d.”

(2) Information describing the benefits the development project will bring to the area.

(3) Examples to illustrate why the proposed development project should be considered a good business enterprise.

(4) An affidavit that the business has not, within the last five years, violated state or federal environmental and worker safety statutes, rules, and regulations, or if such violations have occurred, that there were mitigating circumstances or such violations did not seriously affect public health or safety or the environment.

59.9(2) Benefits. A business that qualifies under the eligible development business category may be eligible to receive the following benefits for a period of up to ten years:

a. Investment tax credit. An eligible development business, subject to negotiations with the department, may claim a tax credit up to a maximum of 10 percent of the new investment which is directly related to the construction, expansion or rehabilitation of building space to be used for manufacturing, processing, cold storage, distribution, or office facilities. For purposes of this paragraph, “new investment” means the purchase price of land and the cost of improvements made to real property. This tax credit may be claimed by an eligible development business beginning in the tax year in which the construction, expansion or rehabilitation is completed. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs earlier. The tax credit may be used to reduce tax liabilities imposed under Iowa Code chapter 422, Division II—personal net income tax; Division III—income taxes on corporations; Division V—franchise tax on financial institutions; or the tax credit may instead be used to offset the tax liability imposed under Iowa Code chapter 432, premium taxes on insurance companies. If the business is a partnership, subchapter S corporation, limited liability company, or estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The amount claimed by the individual shall be based upon the pro–rata share of the individual’s earnings of the partnership, subchapter S corporation, limited liability company, or estate or trust.

b. Sales, service, and use tax refund. An approved development business shall receive a sales, service, and use tax refund as described in paragraph 59.6(3)“e.”

c. Value–added property tax exemption. The county or city for which an eligible enterprise zone is certified may exempt from all property taxation all or a portion of the value added to the property upon which an eligible development business constructs, expands or rehabilitates property in an enterprise zone. This exemption shall be authorized by the city or county that would have been entitled to receive the property taxes, but is electing to forego the tax revenue for an eligible development business under this program. The amount of value added for purposes of Iowa Code section 15E.196 shall be the amount of the increase in assessed valuation of the property following the construction, expansion or rehabilitation of the development business in the enterprise zone. If an exemption is made applicable only to a portion of the property within an enterprise zone, there must be approved uniform criteria which further some planning objective established by the city or county enterprise zone commission. These uniform criteria must also be approved by the eligible city or county. Examples of acceptable uniform criteria that may be adopted include, but are not limited to, wage rates, capital investment levels, types and levels of employee benefits offered, job creation requirements, and specific targeted industries. Planning objectives may include, but are not limited to, land use, rehabilitation of distressed property, or brownfield remediation. The exemption may be allowed for a period not to exceed ten years beginning in the year in which value added by improvements to real estate is first assessed for taxation in an enterprise zone. The exemption is allowed for the development business only. Any succeeding owner of the building space is not eligible to receive the value–added property tax exemption.

59.9(3) Limitation on receiving incentives. A business which is not a development business that is eligible to receive incentives and assistance under subrule 59.6(1) is not eligible to receive the following incentives and assistance if these incentives and assistance were previously approved for a development business:

a. An investment tax credit received for the purchase price of land or improvements to real property. An eligible business that is not a development business may only claim an investment tax credit on additional new improvements made to real property provided that these improvements were not included in the development business’s approved application for benefits.

b. The refund of sales, service, and use taxes paid tocontractors or subcontractors as described in paragraph 59.6(3)“e.” An eligible business that is not a development business may only claim a refund of sales, service and use taxes paid to contractors or subcontractors for new buildings or additions to existing buildings for improvements made to real property provided that these improvements were not included in the development business’s approved application for benefits.

c. Value–added property tax exemptions. An eligible business that is not a development business may not claim a value–added property tax exemption for improvements to real property if the development business has received a property tax exemption due to those improvements to the real property.

59.9(4) Application submittal and review. An eligible development business shall first submit an application to the commission for approval. The commission shall forward applications that it has approved to receive benefits and assistance to the department for final review and approval.

ITEM 8. Amend renumbered rule 261—59.10(15E) as follows:

59.10(1) No change.

59.10(2) Application. The department will develop a standardized application that it will make available for use by a business applying for benefits and assistance as an eligible business, an alternative eligible business, or an eligible housing business or an eligible development business. The commission may add any additional information to the application that it deems appropriate for a business to qualify as an eligible business, or an eligible housing business or an eligible development business. If the commission determines that a business qualifies for inclusion in an enterprise zone and that it is eligible for benefits under the Act, the commission shall submit an application for incentives or assistance to the department.

ITEM 9. Amend renumbered rule 261—59.12(15E) by adopting new subrule 59.12(7) as follows:

59.12(7) Negotiations. The department may enter into negotiations regarding the amount of tax incentives and assistance the business may be eligible to receive. The department reserves the right to negotiate the amount of all program benefits except the following benefits: the new jobs supplemental credit; the value–added property tax exemption; and the refund of sales, service and use taxes paid to contractors and subcontractors. The criteria to be used in the negotiations to determine the amount of tax incentives and assistance are as described in subrule 59.5(2) and are subject to the limitations stated in subrule 59.5(3).

ITEM 10. Amend renumbered rule 261—59.13(15E) as follows:

261—59.13(15E) Agreement. The After the department negotiates and approves the application and the amount of incentives and assistance that the business shall receive, the department and the city or county, as applicable, shall enter into an agreement with the business. The term of the agreement shall be ten years from the agreement effective date plus any additional time necessary for the business to satisfy the job maintenance requirement. This three–party agreement shall include, but is not limited to, provisions governing the number of jobs to be created, representations by the business that it will pay the wage and benefit levels pledged and meet the other requirements of the Act as described in the approved application, reporting requirements such as an annual certification by the business that it is in compliance with the Act, the amount or level of tax incentives and assistance that the business shall receive as negotiated by the department, and the method for determining the amount of incentives or assistance paid received by the business which will be repaid in the event of failure to maintain the requirements of the Act and these rules. In addition, the agreement will specify that a business that fails to maintain the requirements of the Act and these rules shall not receive incentives or assistance for each year during which the business is not in compliance.

ITEM 11. Amend renumbered rule 261—59.14(15E) as follows:

59.14(1) and 59.14(2) No change.

59.14(3) Calculation of repayment due. If a business fails in any year to meet any one of the requirements of the Act or these rules to be an eligible business, it is subject to repayment of all or a portion of the amount of incentives received.

a. Failure to meet/maintain requirements. If a business fails in any year to meet or maintain any one of the requirements of the Act or these rules, except its job creation requirement which shall be calculated as outlined in paragraph “b” below, the business shall repay the value of the incentives received for each year during which it was not in compliance. If a development business, within five years of project completion, or its successor, sells or leases any space to any retail business, the development business shall proportionally refund the value of any tax credits, refunds or property tax exemptions that were claimed under this program.

b. Job creation shortfall. If a business does not meet its job creation requirement, repayment shall be calculated as follows:

(1) If the business has met 50 percent or less of the requirement, the business shall pay the same percentage in benefits as the business failed to create in jobs.

(2) More than 50 percent, less than 75 percent. If the business has met more than 50 percent but not more than 75 percent of the requirement, the business shall pay one–half of the percentage in benefits as the business failed to create in jobs.

(3) More than 75 percent, less than 90 percent. If the business has met more than 75 percent but not more than90 percent of the requirement, the business shall pay one–quarter of the percentage in benefits as the business failed to create in jobs.

59.14(4) 59.14(5) DRF; county/city recovery. Once it has been established, through the business’s annual certifi–cation, monitoring, audit or otherwise, that the business is required to repay all or a portion of the incentives received, the department of revenue and finance and the city or county, as appropriate, shall collect the amount owed. The city or county, as applicable, shall have the authority to take action to recover the value of taxes not collected as a result of the exemption provided by the community to the business. The department of revenue and finance shall have the authority to recover the value of state taxes or incentives provided under 1998 Iowa Acts, House Files 2164 and 2538, or Iowa Code Supplement section 15E.193A or 15E.196. The value of state incentives provided under 1998 Iowa Acts, House Files 2164 and 2538, or Iowa Code Supplement section 15E.193A or 15E.196 includes applicable interest and penalties.

ITEM 12. Amend 261—Chapter 59, implementation clause, as follows:

These rules are intended to implement Iowa Code sections 15.333, 15.333A, and 15E.191 to 15E.196 and 2001 Iowa Acts, chapter 141.

[Filed 12/21/01, effective 2/27/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of 2001 Iowa Acts, chapter 165, section 8(2c) and section 11, the Insurance Division amends Chapter 15, “Unfair Trade Practices,” Iowa Administrative Code.

The Commissioner was directed by 2001 Iowa Acts, chapter 165, to adopt rules on audit of medical claims by insurers and prompt payment by insurers of clean claims for health care benefits. These rules contain definitions and guidelines for insurers and health care providers for compliance with these two new requirements.

Notice of Intended Action was published in the Iowa Administrative Bulletin on October 17, 2001, as ARC 1041B. A public hearing was held and, as a result of the comments received, several changes and clarifications were made to the rules. Subrule 15.16(3) was amended to require insurers to state the purpose of an audit. The effective date of rule 15.17(507B) was delayed until July 1, 2002, to allow insurers time for development of compliance systems. New paragraph 15.7(2)“d” was added regarding prompt payment of claims that involve coordination of benefits. This paragraph will become effective January 1, 2003, to allow time for insurers to develop compliance systems.

These rules will become effective February 27, 2002.

These rules are intended to implement Iowa Code chapter 507B.

The following rules are adopted.

ITEM 1. Adopt the following new rule:

15.16(1) Prohibitions. This rule applies to all claims paid on or after January 1, 2002:

a. Absent a reasonable basis to suspect fraud, an insurer may not audit a claim more than two years after the submission of the claim to the insurer. Nothing in this rule prohibits an insurer from requesting all records associated with the claim.

b. Absent a reasonable basis to suspect fraud, an insurer may not audit a claim with a billed charge of less than $25.

15.16(2) Standards.

a. In auditing a claim, the insurer must make a reasonable effort to ensure that the audit is performed by a person or persons with appropriate qualifications for the type of audit being performed.

b. In auditing a claim, the auditor must use the coding guidelines and instructions that were in effect on the date the medical service was provided.

15.16(3) Contents of audit request. All correspondence regarding the audit of a claim must include the following information:

a. The name, address, telephone number and contact person of the insurer conducting the audit,

b. The name of the entity performing the audit if not the insurer,

c. The purpose of the audit, and

d. If included in the audit, the specific coding or billing procedure that is under review.

This rule is intended to implement Iowa Code section 507B.4, subsection 9, as amended by 2001 Iowa Acts, chapter 165.

ITEM 2. Adopt the following new rule:

191—15.17(507B) Prompt payment of claims. Effective July 1, 2002, the following provisions apply:

15.17(1) Definitions and scope.

a. For purposes of this rule, the following definitions apply:

“Circumstance requiring special treatment” means:

1. A claim that an insurer has a reasonable basis to suspect may be fraudulent or that fraud or a material misrepresentation may have occurred under the benefit certificate or policy or in obtaining such certificate or policy; or

2. A matter beyond the insurer’s control, such as an act of God, insurrection, strike or other similar labor dispute, fire or power outage or, for a group–sponsored health plan, the failure of the sponsoring group to pay premiums to the insurer in a timely manner; or

3. Similar unique or special circumstances which would reasonably prevent an insurer from paying an otherwise clean claim within 30 days.

“Clean claim” means clean claim as defined in 2001 Iowa Acts, chapter 165, section 8(2b).

“Coordination of benefits for third–party liability” means a claim for benefits by a covered person who has coverage under more than one health benefit plan.

“Insurer” means insurer as defined in 2001 Iowa Acts, chapter 165, section 7.

“Properly completed billing instrument” means:

1. In the case of a health care provider that is not a health care professional:

• The Health Care Finance Administration (HCFA) Form 1450, also known as Form UB–92, or similar form adopted by its successor Centers for Medicare/Medicaid Services (CMS) as adopted by the National Uniform Billing Committee (NUBC) with data element usage prescribed in the UB–92 National Uniform Billing Data Elements Specification Manual, or

• The electronic format for institutional claims adopted as a standard by the Secretary of Health and Human Services pursuant to Section 1173 of the Social Security Act; or

2. In the case of a health care provider that is a health care professional:

• The HCFA Form 1500 paper form or its successor as adopted by the National Uniform Claim Committee (NUCC) and further defined by the NUCC in its implementation guide; or

• The electronic format for professional claims adopted as a standard by the Secretary of Health and Human Services pursuant to Section 1173 of the Social Security Act; and

3. Any other information reasonably necessary for an insurer to process a claim for benefits under the benefit certificate or policy with the insured contract.

b. Scope. This subrule applies to claims submitted to an insurer as defined above on or after July 1, 2002, and is limited to policies issued, issued for delivery, or renewed in this state.

15.17(2) Insurer duty to promptly pay claims and pay interest.

a. Insurers subject to this subrule shall either accept and pay or deny a clean claim for health care benefits under a benefit certificate or policy issued by the insurer within 30 days after the insurer’s receipt of such claim. A clean claim is considered to be paid on the date upon which a check, draft, or other valid negotiable instrument is written. Insurers shall implement procedures to ensure that these payments are promptly delivered.

b. Insurers or entities that administer or process claims on behalf of an insurer who fail to pay a clean claim within 30 days after the insurer’s receipt of a properly completed billing instrument shall pay interest. Interest shall accrue at the rate of 10 percent per annum commencing on the thirty–first day after the insurer’s receipt of all information necessary to establish a clean claim. Interest will be paid to the claimant or provider based upon who is entitled to the benefit payment.

c. Insurers shall have 30 days from the receipt of a claim to request additional information to establish a clean claim. An insurer shall provide a written or electronic notice to the claimant or health care provider if additional information is needed to establish a clean claim. The notice shall include a full explanation of the information necessary to establish a clean claim.

d. Effective January 1, 2003, when a claim involves coordination of benefits, an insurer is required to comply with the requirements of this subrule when that insurer’s liability has been determined.

15.17(3) Certain insurance products exempt. Claims paid under the following insurance products are exempt from the provisions of this subrule: liability insurance, workers’ compensation or similar insurance, automobile or homeowners insurance, medical payment insurance, disability income insurance, or long–term care insurance.

This rule is intended to implement 2001 Iowa Acts, chapter 165, section 8, and Iowa Code section 507B.4 as amended by 2001 Iowa Acts, chapter 165.

[Filed 1/4/02, effective 2/27/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of Iowa Code sections 307.10, 307.12 and 321.52, the Department of Transportation, on December 19, 2001, adopted amendments to Chapter 405, “Salvage,” rescinded Chapter 453, “Weight Equalizing Hitch and Sway Control Devices for Trailers,” and adopted amendments to Chapter 454, “Towing Wrecked or Disabled Vehicles,” Iowa Administrative Code.

Notice of Intended Action for these amendments was published in the November 14, 2001, Iowa Administrative Bulletin as ARC 1084B.

The amendments to Chapter 405 delete an obsolete form number, delete unnecessary language, delete language that repeats the statute, correct office names and addresses and simplify the process for obtaining a permit to drive the vehicle to and from the examination location.

Chapter 453 is being rescinded because the Department of Transportation no longer has statutory authority to promulgate these rules. 1997 Iowa Acts, chapter 108, section 24, amended Iowa Code section 321.430 to remove the DOT Director’s authority to approve these devices.

Chapter 454 makes the distinction between tow trucks and flatbed vehicles used to transport wrecked or disabled vehicles by requiring all or some of the wheels of the wrecked or disabled vehicle to be on the roadway. Many wrecker services use flatbeds as well as conventional wreckers. The proposed amendments allow flatbeds to transport wrecked or disabled vehicles. Other changes are made for clarifica–tion.

These rules do not provide for waivers. Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11.

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

These amendments are intended to implement Iowa Code chapter 321.

These amendments will become effective February 27, 2002.

Rule–making actions:

ITEM 1. Amend rule 761—405.2(321), definition of “junking certificate,” as follows:

“Junking certificate” means an Iowa junking certificate, Form 411123.

ITEM 2. Amend rule 761—405.3(321), introductory paragraph, as follows:

761—405.3(321) Salvage title. The following applies to an Iowa salvage certificate of title.

ITEM 3. Amend subrule 405.3(2) as follows:

405.3(2) Assignment. A salvage title may be assigned only as provided in Iowa Code subsection 321.52(4).

c. Upon assignment, the transferee shall apply for a new salvage title within 30 days after the date of assignment unless, within this time period, application for a regular title is made or a junking certificate is obtained.

ITEM 4. Amend paragraph 405.6(1)“b” as follows:

b. Fair market value is the average retail value found in the “National Automobile Dealers Association (NADA) Official Used Car Guide.” If there is no value available, the office of vehicle registration services in Des Moines shall determine the fair market value upon request. The Des Moines address is: Office of Vehicle Services, Department of Transportation, Park Fair Mall, 100 Euclid Avenue, P.O. Box 9278, Des Moines, Iowa 50306–9278; telephone (515) 237–3148.

ITEM 5. Amend subparagraph 405.15(1)“a”(1) as follows:

(1) To arrange for a salvage theft examination by an investigator from the department of transportation, the applicant shall contact the local county treasurer’s auto department, the district enforcement office, or the office of motor vehicle enforcement in Des Moines. The Des Moines address is: Office of Motor Vehicle Enforcement, Department of Transportation, Park Fair Mall, 100 Euclid Avenue, P.O. Box 10382 10473, Des Moines, Iowa 50306–0382 50306– 0473; telephone (515)237–3247 237–3214.

ITEM 6. Amend paragraph 405.15(1)“b,” introductory paragraph, as follows:

b. The owner of the vehicle may obtain a permit to drive the vehicle to and from the examination location by submitting an affidavit of salvage vehicle repairs to the agency performing the examination completing the permit section located on the affidavit of salvage vehicle repairs form.

ITEM 7. Amend subparagraph 405.15(1)“b”(2) as follows:

(2) To be valid, the permit to drive the vehicle to and from the examination location must be signed by an authorized officer of the agency conducting the examination the owner or owner’s authorized agent.

ITEM 8. Amend paragraph 405.15(1)“e” as follows:

e. A $30 fee paid by check or money order made payable to the agency conducting the salvage theft examination shall be collected. The agency shall retain $20 and forward $10 to the office of motor vehicle enforcement services at the Des Moines address. The department shall deposit the $10 into the funds specified by law.

ITEM 9. Amend subparagraph 405.15(1)“f”(1) as follows:

(1) The white copy shall be mailed with the $10 to the office of motor vehicle enforcement services at the Des Moines address.

ITEM 10. Amend paragraph 405.15(1)“h” as follows:

h. The peace officer shall return the salvage title or the certified copy of the salvage title, the permit to drive section, if applicable, on the affidavit of salvage vehicle repairs, and the bills of sale to the owner or the owner’s representative.

ITEM 11. Amend subrule 405.15(2) as follows:

405.15(2) Permit Affidavit of salvage vehicle repairs form and salvage theft examination certificate.

a. The permit affidavit of salvage vehicle repairs form may be obtained from the office of motor vehicle enforcement at the Des Moines address, any local enforcement agency with officers certified to conduct salvage theft examinations or any local county treasurer’s office and salvage theft examination certificate shall be controlled forms furnished by the department.

b c. The owner of the vehicle may obtain a duplicate copy of the salvage theft examination certificate upon written request and payment of a $10 fee to the office of motor vehicle enforcement at the Des Moines address.

c d. The salvage theft examination certificate is not transferable.

ITEM 12. Rescind and reserve 761—Chapter 453.

ITEM 13. Amend rule 761—454.1(321) as follows:

761—454.1(321) Definitions. For the purpose of Iowa Code section 321.463, the following definitions are established:

“Tow” means the transportation by a vehicle designed to tow or transport wrecked or disabled vehicles directly from the scene of an accident a crash, disablement, or impoundment to any place of repair, storage, or safekeeping.

“Wrecked or disabled vehicle” means a vehicle upon a highway involved in an accident a crash or having mechanical failure, broken parts, or other defects, any of which prevent the vehicle from moving safely under its own power, or any vehicle impounded by the order of a police authority peace officer.

This rule is intended to implement Iowa Code section 321.463.

[Filed 12/19/01, effective 2/27/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of Iowa Code sections 307.10, 307.12 and 321E.15, the Department of Transportation, on December 19, 2001, adopted amendments to Chapter 511, “Special Permits for Operation and Movement of Vehicles and Loads of Excess Size and Weight,” Iowa Administrative Code.

Notice of Intended Action for these amendments was published in the November 14, 2001, Iowa Administrative Bulletin as ARC 1095B.

2001 Iowa Acts, chapter 32, section 26, increases the width allowed under the annual oversize/overweight permit to 13 feet 5 inches. Item 2 makes this change in the rules. 2001 Iowa Acts, chapter 32, section 27, strikes Iowa Code language concerning annual permits. Items 1 and 3 rescind subrules concerning annual permits and all–system permits. These permit provisions are covered under other permits that are less restrictive.

These rules do not provide for waivers. Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11.

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

These amendments are intended to implement Iowa Code chapter 321E as amended by 2001 Iowa Acts, chapter 32.

These amendments will become effective February 27, 2002.

Rule–making actions:

ITEM 1. Rescind and reserve subrule 511.7(4).

ITEM 2. Amend paragraph 511.8(1)“a” as follows:

a. Width. 12 feet 5 inches 13 feet 5 inches.

ITEM 3. Rescind and reserve subrule 511.9(4).

[Filed 12/19/01, effective 2/27/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.

Pursuant to the authority of Iowa Code sections 307.10 and 307.12, the Department of Transportation, on December 19, 2001, adopted an amendment to Chapter 529, “For–Hire Interstate Motor Carrier Authority,” Iowa Administrative Code.

Notice of Intended Action for this amendment was published in the November 14, 2001, Iowa Administrative Bulletin as ARC 1096B.

The Code of Federal Regulations was updated in October 2000, and the Department needs to cite the current version in this rule. No changes to the federal regulations have occurred; however, Part 369 is excluded. This part was eliminated in 1997. Also, an Internet address is added as a source for reviewing a copy of the regulations.

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

This amendment is intended to implement Iowa Code chapter 327B.

This amendment will become effective February 27, 2002.

Rule–making action:

Amend rule 761—529.1(327B) as follows:

761—529.1(327B) Motor carrier regulations. The Iowa department of transportation adopts the Code of Federal Regulations, 49 CFR Parts 365–379 365–368 and 370–379, dated October 1, 1999 2000, for regulating interstate for–hire carriers.

Copies of this publication are available from the state law library or through the Internet at http://www.fmcsa.dot.gov.

[Filed 12/19/01, effective 2/27/02]

[Published 1/23/02]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 1/23/02.