ADMINISTRATIVE RULES REVIEW COMMITTEE Rules Digest -- September 1998 Scheduled for committee review - Oc tober 13-14, 1998 - Room #19 For further information, please contact Joe Royce, Legal Counsel, Administrative Rules Review Committee

HIGHLIGHTS IN THIS ISSUE:

COMMUNITY ACTION AGENCIES Community food & nutrition

ECONOMIC DEVELOPMENT DEPARTMENT School to career

EMERGENCY MANAGEMENT DIVISION Enhanced 911 telephone systems

HUMAN SERVICES DEPARTMENT Incentive & efficiency pool funding

HUMAN SERVICES DEPARTMENT Empowerment areas

LIBRARY DIVISION General revisions

NATURAL RESOURCES COMMISSION Use of motor vehicles by handicapped

NATURAL RESOURCES COMMISSION Local recreation infrastructure grants

PUBLIC HEALTH DEPARTMENT Domestic abuse death review team

RACING & GAMING COMMISSION

REVENUE AND FINANCE DEPARTMENT Sales tax exemption for Iowa product promotions

REVENUE AND FINANCE DEPARTMENT Local option school sales tax

TRANSPORTATION DEPARTMENT Driver's licenses

TRANSPORTATION DEPARTMENT Scenic byways designation

This program, created by federal law, coordinates existing private and public food assistance resources to better serve low-income Iowans; assists low-income communities to identify potential sponsors of child nutrition programs and to initiate new programs in areas where such service is needed; and develops innovative approaches at the state and local levels to meet the nutrition needs of low-income people. Any public or non-profit private agency may apply for funding under this program.

The proposed rules are skeletal, simply establishing the existence of the overall program. The actual detail is to be set out in the request for proposal. This includes the notice of availability, application procedures and the purposes for which grants will be made. Note particularly subrule 25.3(4) stating that a ranking system is used based on criteria set out in the request for proposal. As provided in the ARRC's own procedures, these criteria should be set out in the administrative rules, as well as the ranking system itself.

The proposed rules implement a new program created in Senate File 2296. The Certified School to Career Program is designed to provide a workplace context for classroom training at the postsecondary level by bringing educators and employers together to design an educational program that includes classroom training that is reinforced with on-the-job training; resulting in a diploma, associate's degree, or other credential and utilizing paid work site internships in partnership with an employer to prepare students for specific employment. Additionally, the program assists participants in determining a career field, and financing postsecondary education.

The proposed new chapter describes eligibility requirements, sets minimum agreement terms, establishes procedures for accessing funds, and explains how participating businesses can claim the payroll expenditure refund, which is authorized by the statute.

Under this program the student, the educational institution and the employer enter into an agreement The employer provides a mentor for the student and agrees to pay a base wage. The employer also agrees to provide paid employment, at a base wage, for the participant during the summer months after the participant's junior and senior years in high school and after the participant's first year of postsecondary education. The participant and employer set minimum academic standards that must be maintained through the participant's secondary and postsecondary education.

The base wage paid to the participant for hours worked is at least the minimum wage prescribed by law. The program adds an additional sum to be held in trust and applied toward the student's education required for completion of the certified program. This sum must be sufficient to provide payment of tuition expenses toward completion of not more than two academic years of the required postsecondary education component of the certified program at an Iowa community college or an Iowa public or private college or university. The student must agree to work for the employer for at least two years following the completion of the participant's postsecondary education as required by the certified program.

The non-entitlement program provides housing and job assistance to smaller counties and communities. The rules have been in place for years and are periodically updated. Maximum grants are $1000 per capita and vary from $250,000 for a community less that 1000 to $800,000 for a community under 50,000.

The funds are divided as follows:

• 25% for low & middle income housing;
• 20% for job creation & enhancement;
• Up to $100,000 as an emergency fund;
• 2% plus $100,000 for overhead;
• 1% for technical assistance;
• The remainder to water, sewer and community services.

The CEBA program administers a number of funds, each with its own criteria. The economic development set-aside fund provides in part:

• Only direct loans or forgivable loans to private businesses are provided, for the creation of new jobs or the retention of existing jobs that would otherwise be lost.
• The maximum grant award is $500,000 per application.
• The average starting wage of jobs to be created or retained by a proposed project must meet or exceed 75 percent of the average county wage scale or $7 an hour, unless evidence exists of a negative condition that has the potential to cause severe economic distress on the community.
• At least 51 percent of the permanent jobs must be taken by or first made to persons from low- and moderate-income families.
• Projects must maintain a minimum ratio of one permanent job created or retained for every $10,000 in CDBG funds awarded.
• State funds are necessary to make the proposed project feasible.

The public facilities set aside established similar standards, but goes on to require a 50% match from the applicant. The career link program assists the working poor and underemployed acquire new job skills. Training under this program cannot exceed 12 months--two years for the entire project. Jobs must pay $10 per hour.

The imminent threat fund is available only for unforeseen threats to the public health, safety or welfare. The flood recovery program is reserved to those communities suffering damage from the flood of 1993. It is a program of last resort, providing funding for immediate threats to the public health, safety or welfare, but only when no other source is available.

The Division is rescinding current rules and adopting a new chapter relating to enhanced 911 service. These rules provide uniform procedures regarding the establishment of joint E911 service boards, submittal of E911 service plans, the establishment of an E911 surcharge, and minimum standards for E911 operations. Also, they implement Senate File 530, which provides for the establishment of an enhanced wireless 911 service and surcharge.

Each local board, the Department of Public Safety and the E911 Communications Council will cooperate in the development of a state-wide E-911 wireless plan which shall include:

• Maps showing geographic area to be served by each public safety answering point receiving enhanced wireless calls.
• A list of all public and private safety agencies within the service area.
• The geographic location of each public safety answering point receiving wireless 911 calls.
• A statement of estimated charges for the implementation and operation of enhanced wireless 911 service, detailing the equipment operated or needed to operate the system.
• A schedule for the implementation.

An E911 surcharge will be added to each wireless service in this state, up to fifty cents per month. Income from this charge will be deposited with the State Treasurer, for use in meeting the costs of E911 wireless service.

These rules were initially published as emergency rules in July. Senate File 2545, §8 establishes an incentive and efficiency fund as part of the states overall efforts to control property tax growth. The fund makes incentive payments to those counties which achieve the desired results and efficiently provide needed services. These "desired results" are established by the state-county management committee on an annual basis; with the goal being to transform the service system to best meet the needs of persons with mental illness, mental retardation, or developmental disabilities in a cost-effective manner. The committee must also identify objective performance measures for the desired results, including:

• úrates of service provision among eligible populations,
• access to a range of services,
• movement toward less facility-based services,
• and medical loss ratio.

Moneys shall be distributed from the incentive and efficiency pool to eligible counties based upon a percentage score for the degree of a county's attainment of the desired results and performance measures. The maximum amount which may be distributed to an eligible county is the county's percentage share of the state's general population applied to the amount available for distribution from the pool. The amount actually paid to an eligible county shall be the product of the county's percentage score and the county's maximum amount.

These rules were initially put into emergency effect in July, 1998; the Department now completes action on a "regular" rulemaking to supplant those emergency rules. Senate File 2406 created a new government agency and program. The Iowa Empowerment Board is a free standing agency which will oversee the operation of local empowerment areas. The self-stated purpose of the Act is to create a statewide system of community empowerment areas, with an initial emphasis to improve the well-being of families with young children. As part of this goal, the program aims to reduce duplicative bureaucratic requirements that are barriers to community efforts to improve the efficiency and effectiveness of local education, health, and human services programs.

The department rules implement this mandate. They define and structure the Department's child care funding for these local areas; $3,800,000 has been appropriated for this purpose. Language has been removed which created the impression that a reduction in federal funds might automatically curtail this program.

Funds are provided to community empowerment areas receiving a school--ready children grant under the Act, in order to develop and improve local child care capacity to better enable low--income parents to obtain or retain employment. These rules establish conditions and procedures for the disbursement, use, and administration of funds. This grants program is administered by the Department in conjunction with the Iowa Empowerment Board.

Funds can be used only for enhancing quality child care capacity in support of parent capability to obtain or retain employment; with a primary emphasis on low--income families with children from birth to age five. Eligible activities include:

• Developing capacity for regular child care, sick child care, night shift child care, and emergency child care.
• Enhancing linkages between the Head Start program, the Early Head Start program, early childhood development programs, and child care assistance programs.
• Implementing other strategies that enhance access to child care.

An area's maximum eligible funding is the percentage of the total equal to the area's percentage of average monthly statewide family investment program cases in the preceding state fiscal year.

The division proposes a update of the state library rules. The first item, in response to a statutory change, raises the number of board members to eight members, with five members specified as the quorum to conduct business. The current library services program is being replaced with a "Library Services and Technology Program", which is part of federal law. The state library administers these LSTA funds directly, or through subgrants, or through cooperative agreements for:

• Establishing or enhancing electronic linkage among or between libraries;
• Electronically linking libraries with educational, social, or information services;
• Assisting libraries in accessing information through electronic networks;
• Encouraging libraries in different areas, and encouraging different types of libraries to establish consortia and share resources; and
• Paying costs for libraries to acquire or share computer systems and telecommunications technologies.

The proposal also establishes a formal internet use policy. Internet service is available in one hour increments on a first-come-first-served basis. No E-mail service is available. Patrons may gain access to any part of the internet, but assess to child pornography or the display of pornography to children is prohibited.

Generally motor vehicles are prohibited on state parks, recreation areas and preserves except on constructed and designated roads, lots and campgrounds. However, the Commission proposes that persons with physical disabilities may use certain motor vehicles on state parks, recreation areas and preserves, to accord them fair access to these areas. The rules define a disability as a: "paraplegic or quadriplegic, with paralysis or a physical condition of the lower half of the body with the involvement of both legs, usually due to disease or injury to the spinal cord; a person who is a single or double amputee of the legs; or a person with any other physical affliction which makes it impossible to ambulate successfully in park or recreation area natural surroundings without the use of a motorized conveyance."

This filing does not include the use of automobiles; instead it authorizes the use of small-engined vehicles with a total dry weight of less than 1,450 pounds. Each person with a physical disability must have a permit issued by the director in order to use motor vehicles on state parks, recreation areas, and preserves. Such permits will be issued without charge. Applicants must submit certificates from their doctors stating that the applicants meet the criteria describing a person with physical disabilities. One nonhandicapped companion is permitted.

Each park ranger or technician will determine which areas or portions of areas will not be open to use by permittees, in order to protect the permittee from hazards or to protect certain natural resources of the area. The park ranger or technician may assist by arranging access to the areas within their jurisdiction and by designating specific sites or trails on the area where the motor vehicle may be used and where it may not be used. The park ranger or technician will provide a map of the park or recreation area showing sites where use is permitted.

The recreation infrastructure grants program provides state cost sharing to local governments and associations for the restoration or construction of recreational complexes or facilities. Grants are available to local political subdivisions of the state and to any other established organization or association which is responsible for construction, maintenance and operation of public recreation complexes and facilities.

Grants under this program are directed toward "vertical infrastructure"; defined in Iowa Code §8.57(5c) as including only land acquisition and construction, major renovation and major repair of buildings, all adjacent structures, utilities, site developments, and recreational trails. Grants to any individual project must be at least $2500 and cannot exceed $100,000, with a 2:1 local match. Up to 50 percent of the local share may be a "soft match" in the form of donated labor, materials or land value.

The review and rating committee will apply specified criteria, with a weight factor; each criterion is given a score from 1 to 10, which is then multiplied by the weight factor. The criteria and weight include:

1. Public demand or need--2.
2. Quality of site or project--3.
3. Urgency of proposed project--2.
4. Multiple benefits provided--2.
5. Relationship to statewide plans/priorities--2.
6. Conformance with local/regional plans--2.
7. Economic benefits to local economies--1.
8. Geographic distribution--1.

Senate File 2280 has created a domestic abuse review program, within the Department of Public Health; the purpose of the review team is to aid in the reduction of the incidence of domestic abuse deaths by accurately identifying the cause and manner of deaths occurring from domestic violence and by making recommendations for changes in policy and practice to improve community interventions for preventing domestic abuse deaths. The team is made up of medical, legal and advocacy professionals.

Among its duties the team will collect and analyze death certificates, death data, including investigative reports, medical and counseling records, victim service records, child abuse reports, or other confidential information concerning domestic abuse deaths, survivor interviews and surveys, and other information concerning the causes and manner of domestic abuse deaths.

The Commission proposes the latest in a series of changes relating to gambling regulations. At its July meeting the committee felt that a proposal freezing the number of slot machines at existing levels was inappropriate--since that same proposal had been placed in legislation vetoed by the Governor. In response the commission has redrafted that proposal as a series of standards the commission will use in deciding whether to approve applications for additional slots. This new proposal is not a freeze and for that reason does not simply redraft failed legislation as an administrative rule. The concept of standards has long been supported by the committee; its own rules of procedure state in part:

1.3(3) Criteria for awards or grants. Numerous state programs provide grants, loans or other types of awards. To ensure impartial evaluation for all applicants, the committee insists that the criteria for making the awards be set out in administrative rules in full detail In an agency chooses to use a point system to award different weights to different criteria, that point system must also be set out as part of the rules."

While these rules do not involve a grant, they are analogous to an award process in that a privilege is being given out; thus it is appropriate that standards be developed to detail the evaluation process for these applications. The proposed standards require that an applicant show an increased number of machines will:

(1) Will have a positive economic impact on the community in which the licensee operates;
(2) Will benefit the residents of Iowa;
(3) Will result in increased distributions to qualified organizations entitled to distributions under Iowa Code section 99F.6(4)"a";
(4) Are necessary to satisfy overall excess demand in the particular market in which the licensee is located;
(5) Will result in permanent improvements and land-based development in Iowa;
(6) Are supported within the broader community in which the licensee operates;
(7) Will not have a detrimental financial impact on other licensees operating in the market in which the licensee operates;
(8) Are consistent with legislative intent concerning the definition of "racetrack enclosure" and the purpose of gambling games at racetrack enclosures; and
(9) Will benefit the horse or greyhound industries in Iowa.
The various criteria set forth may not have the same importance in each instance and other factors may present themselves in the consideration of the increase. The criteria are not listed in any order of priority.
In addition to the foregoing criteria, a licensee requesting additional gaming machines shall demonstrate to the commission's satisfaction that (1) the licensee is in compliance with applicable statutes, rules and orders and has not had any material violation of any statutes, rules or orders in the previous 12 months; and (2) the licensee has taken sufficient steps to address the social and economic burdens of problem gambling.

Opponents of these standards contend they will impose too high of a threshold in applying for increased numbers of slot machines.

In 1998 the legislature has enacted Senate File 2364, a new sales tax exemption for:

"[t]he gross receipts from the sales of food and beverages for human consumption by a nonprofit organization which principally promotes a food or beverage product for human consumption produced, grown, or raised in this state_"

The Act went on to make the exemption retroactive to 1988, allowing refund claims for sales taxes already paid. The statute did not specifically identify who was entitled to a refund.

The exemption relates to food sales by Iowa's various product promotion organizations, such as the Iowa Cattlemen's Association or the Iowa Honey Association, which occasionally sell food products as a means to promote Iowa foodstuffs. The intent of the legislature was to free those associations from the trouble of collecting and remitting sales tax, and return some of the money collected under the previous law. The Department of Revenue and Finance has broad rule-making authority under Iowa Code §422.68, and has interpreted this provision to allow an association to apply for the refund only if the association did not collect sales tax from the consumer of the product--in other words, unless tax was not collected at all, the only people who may apply for the refund are the consumers of the product. The department's position is that the associations have not "paid" the tax, they have merely remitted the money paid as tax by the consumer.

House File 2282, authorizes a county or a school district to impose a local option sales and service tax of up to 1 percent solely for school infrastructure needs. This tax may be imposed by the county of by a school district or districts that embrace at least 50% of the county population. The proposition is then submitted to the electorate at a general or special election. The tax may be imposed for a period up to ten years.

The local option school tax is to be imposed on the gross receipts of sales of tangible personal property sold within the local option jurisdiction and upon the gross receipts from services rendered, furnished, or performed within the local option jurisdiction. The tax may not be imposed on any transaction not subject to state sales tax. There is no local option use tax.

Income derived from the tax may be used for qualifying activities including construction, reconstruction, repair, purchasing, or remodeling of schoolhouses, stadiums, gyms, fieldhouses, or bus garages. School infrastructure activities also include the procurement of schoolhouse construction sites and making site improvements. Additional qualifying activities include the payment or retirement of outstanding bonds previously issued for school infrastructure purposes and the payment or retirement of such bonds. A school district may enter into an Iowa Code chapter 28E agreement with a city whose boundaries encompass all or a part of the school district. The city may receive a portion of the revenues for school infrastructure purposes or any valid purposes authorized by the city.

If more than one school district or a portion of a school district is located within the county, tax receipts are remitted to each school district or portion of a district in which the county tax is imposed in a pro-rata share based upon the ratio which the percentage of actual enrollment for the school district that attends school in the county bears to the percentage of the total combined actual enrollments for all school districts that attend school in the county.

The department proposes a series of drivers license changes based on several pieces of new legislation. House File 2528 creates a graduated driver's licensing system for minors, providing for an instruction permit at age 14, an intermediate license at age 16, and a full license at age 17. The Act sets out eligibility requirements that must be met to reach the next licensing step. Among those conditions is a requirement that the permit or license holder be accident and conviction free for up to twelve months, depending on the level of licensure. Accidents or convictions result either in a suspension or a driver improvement action. This action consists of a driver improvement interview with the department plus any suspension ordered by the department as a result of the interview. Participation in the driver improvement interview by both the licensee and the licensee's parent or guardian may be required. The interview is held by a reviewing officer. It may a discussion of motor vehicle laws, of driving behavior, a vision screening, a knowledge examination, and a driving examination. The department may take one or more of the following actions after the interview and will take one or more of the following actions if the licensee fails to appear for or does not otherwise complete the interview:

1. Execute an agreement with the licensee and the parent or guardian, setting out a plan to improve the licensee's driving behavior.
2. Add appropriate license restrictions.
3. Suspend the licensee's driving privilege.

The Act also provides that an intermediate licensee may operate a vehicle to and from school-related extracurricular activities and work without an accompanying driver between the hours of 12:30 a.m. and 5 a.m. if the licensee possesses a waiver on a form to be provided by the Department. It also amends school license provisions by allowing a school principal to certify the need for a school license if authorized by the school superintendent.

Several other bills make significant changes in Iowa's drivers license laws. Senate File 2170 provides for the suspension, denial or revocation of a license for the failure to repay student loans, as evidenced by a certificate from the College Student Aid Commission. House File 2394 provides for license suspension for vehicular homicide. Upon receiving notice that an indictment or information has been filed charging a licensee with homicide by vehicle the department shall notify the licensee that the person's motor vehicle license will be suspended effective ten days from the date of issuance of the notice.

This program is part of a statewide plan created by Iowa Code §306D2; the purpose of the Iowa Scenic Byway Program is to designate qualifying Iowa roads as scenic byways. Under the program, proposed routes are identified via an application process. An application must be supported by each city and county through which a route passes. The Department inventories and evaluates the proposed routes while an advisory council selects the routes to be designated. The Department designates the routes as scenic byways and provides identifying signs. Routes include primary and secondary roads, along with city streets. Routes can be either naturally scenic or have historical significance. Scenic routes should be at least 20 miles long.

OTHER INFORMATION FOR THIS COMMITTEE:

| Members | Staff | Bulletin | Agenda |

Comments about this site or page? webmaster@legis.iowa.gov

Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

© 1995 Cornell College and League of Women Voters of Iowa

Last update: SUN Oct 11 1998
sw/sam