ADMINISTRATIVE RULES REVIEW COMMITTEE Rules Digest -- November 1998 Scheduled for committee review - December 8th & 9th, 1998 - Room #116 For further information, please contact Joe Royce, Legal Counsel, Administrative Rules Review Committee

HIGHLIGHTS IN THIS ISSUE:

CORRECTIONS DEPARTMENT Transportation of criminals

CORRECTIONS DEPARTMENT Sex offender management & treatment

CORRECTIONS DEPARTMENT Telephone commissions

DENTAL EXAMINERS BOARD Dental hygiene

EMERGENCY MANAGEMENT DIVISION Enhanced 911 telephone systems

ENVIRONMENTAL PROTECTION DIVISION Medical waste incinerators

ENVIRONMENTAL PROTECTION DIVISION Iowa land recycling

ENVIRONMENTAL PROTECTION DIVISION Beneficial use of waste tires

HUMAN SERVICES DEPARTMENT Physical disability waiver

HUMAN SERVICES DEPARTMENT Food stamp for aliens

HUMAN SERVICES DEPARTMENT HAWK-I program

HUMAN SERVICES DEPARTMENT HAWK-I board

HUMAN SERVICES DEPARTMENT Surety requirements for home health agencies

INSURANCE DIVISION Disclosure of certain contractual arrangements

PERSONNEL DEPARTMENT Deferred compensation

PUBLIC HEALTH DEPARTMENT Perinatal health care

PUBLIC HEALTH DEPARTMENT Domestic abuse death review team

RACING & GAMING COMMISSION Standards for slot machines

RACING & GAMING COMMISSION Law enforcement officers on riverboats

REVENUE AND FINANCE DEPARTMENT Local option school sales tax

TRANSPORTATION DEPARTMENT Driver's licenses

In order to professionalize the transportation of dangerous felons, the legislature enacted Senate File 2331. This legislation ensures that criminal transportation personnel employed by private companies are adequately trained tp handle dangerous felons. When in compliance with the Act and the rules promulgated by the department these private transportation companies will be exempted from the need to license as private security companies. Under the Act persons providing contractual transportation services cannot have been convicted of:

• A felony.
• A motor vehicle violation punishable as a serious misdemeanor or greater within the last three years.
• Domestic abuse assault.
• A crime involving alcohol or a controlled substance or other drug.

Any person or persons transporting the prisoners must be trained and proficient in the safe use of firearms, must be trained and proficient in appropriate transportation procedures and may only possess and use security and restraint equipment, including any firearms, which has been issued by the contracting entity.

Senate File 2292 requires the department to develop "risk assessment" procedures for sex offenders required to register with the sex offender registry. Senate File 2398 does on to require the department to develop a hormonal therapy program to control deviant sexual behavior. Under these rules the department will perform a risk assessment, developed by public safety, to categorize inmates as high or low risk to re-offend. This assessment must be forwarded to the registry program within 45 days of the anticipated release or placement of the offender.

Hormonal intervention therapy is mandated under some circumstances. Pursuant to Senate File 2398, section 1 anyone who has been convicted of a serious sex offense on a first conviction may be required to undergo hormonal treatment as part of any conditions of release imposed by the court or the board of parole. Upon a second or subsequent conviction, the court or the board of parole shall require the person to undergo the specified treatment.

When recommended the therapy will be instituted as soon as possible after sentencing. The hormonal treatment is part of an overall therapy program that also includes education, counseling and monitoring. The offender will be assessed a "reasonable fee" for the treatment.

Corrections rule 20.20 states in part:

201-20.20(904) Inmate telephone commissions.
20.20(1) All commissions received from the vendor will be deposited in a special account established by the institution.
20.20(2) All expenditures from this account will be used for the benefit of inmates. Expenditures shall include the enhancement of existing educational, vocational, recreational, work or treatment programs, services or projects, or to initiate new programs, services, or projects. Institutions are encouraged to give spending priority to programs, services, and projects that promote the health and welfare of inmates.

When this rule was last reviewed by the committee in January, 1998 discussion centered around the high cost of placing telephone calls to prison inmates---every call is an operator assisted call. The cost for these calls is so high that the department actually receives rebates back from the telephone company, generating almost $2,000,000 in 1997. As provided in rule 20.20 this money was to be used for the "benefit" of inmates; that term is broadly defined in the rule. At issue is a current project where these telephone funds are being used in a construction project that will provide employment for inmates. Department representatives note this is within the scope of the rule, since it will provide work and thus benefit the inmates. Opponents contend that the two million dollars in this fund is paid entirely by inmate friends and relatives and should not be used for prison operations. They note that the January ARRC meeting emphasized using the money to benefit inmates; citing such purchases as sports or hobby equipment, or the purchase of books or educational material.

The board proposes a series of notices relating to the practice of dental hygiene, starting with the procedural rules for the newly established Dental Hygiene Committee. 1998 Iowa Acts Chapter 1010 established this committee within the Board of Dental Examiners. The committee is not an independent licensing board, but all matters regarding the practice, discipline, education, examination, and licensure of dental hygienists will be initially directed to the dental hygiene committee. However, the committee does not have regulatory or disciplinary authority with regard to dentists, dental assistants, dental lab technicians, or other auxiliary dental personnel.

The committee has the authority to adopt "recommendations" regarding the practice, discipline, education, examination, and licensure of dental hygienists and also carries out any other duties as assigned by the board. Recommendations by the committee must include a statement and supporting documentation. The Board of Dental Examiners reviews these recommendations and shall ratify them unless the board makes a specific written finding that the recommendation exceeds the jurisdiction or expands the scope of the committee beyond the authority`, creates an undue financial impact on the board, or is not supported by the record. The board may not amend a committee recommendation without the concurrence of the majority of the members of the dental hygiene committee.

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.

The division completes action highly technical regulations dealing, in part, with existing hospital, medical, and infectious waste incinerators; these rules are based on federal provisions issued in September, 1997 {40 C.F.R Part 60}. Compliance is required within 36 months of the approval of the state plan. These rules were initially noticed on April 8th, and were re-noticed on August 26th. Minor changes have been made from the August notice.

"Medical/infectious waste" means any waste generated in the diagnosis, treatment, or immunization of human beings or animals; including research or in the production or testing of biological materials. The term does not include hazardous waste; household waste, ash from incineration of medical/infectious waste; bodies that are intended for burial; and domestic sewage materials. "Hospital waste" includes any items discarded by a hospital.

This final rule sets outs new source performance standards and emission guidelines to reduce air emissions from hospital/medical/infectious waste incinerators (called: HMIWI). The federal provisions which are the basis of these rules were adopted in 1997 and implement sections 111 and 129 of the Clean Air Act as amended in 1990. Regulated facilities are required to achieve emission levels set by the EPA, as detailed in two charts published with the rules. The proposals establish emission limits for particulate matter, opacity, and various other emissions. Some of the pollutants being regulated are considered to be carcinogens and at sufficient concentrations can cause toxic effects.

The rules also establish requirements for HMIWI operator training and qualification, mandating at least 24 hours of training in several mandated areas; waste management plans to minimize the volume of waste, and testing/monitoring of pollutants and operating parameters to ensure the effective operation of the equipment. Additionally, the rules for existing HMIWI contain equipment inspection requirements requiring a 17 point inspection on an annual basis.

In 1997 the legislature enacted Iowa Code Supplement Chapter 455H to encourage the voluntary clean up of some contaminated property. Under this legislation incentives are established to encourage competent persons to voluntarily develop and implement cleanup plans. The reward for such efforts is a measure of limited liability and regulatory closure, thus restoring at least some measure of the property's value. Three types of property may not be enrolled in the program:

• Property for which corrective action is needed or has been taken for petroleum underground storage tanks;
• Property which has been placed or is proposed to be included on the national priorities list;
• An animal feeding operation structure.

Any person may enroll property in the land recycling program to reduce, minimize, eliminate, clean up, control, assess, or monitor a release in order to protect the public health and safety or the environment. This effort, called a "response action" must be documented in a proposal that sets out the site investigation data and a commentary on how the participant will meet the clean-up standards, including the technology that will be used or the controls or monitoring that will be employed. Department approval is not required prior to taking action, but without that approval the department will not be required to release the site.

Participants must enter into an agreement with the department to reimburse the department for actual costs in reviewing documents submitted as a part of the enrollment of the site. The fee cannot exceed seven thousand five hundred dollars per enrolled site. All agreements must allow the department access to the enrolled site and must require a demonstration of the participant's ability to carry out a response action reasonably associated with the enrolled site.

A site may obtain a no further action classification, when the department determines the participant has met all compliance standards applicable to the affected area and the hazardous substances actually identified and evaluated such that no further response action is required except that a no further action classification may be conditioned upon the continued maintenance and effectiveness of any applicable institutional or technological control). A no further action certificate is in a form recordable in the county real estate records as provided in Iowa law.

The Department completes a new chapter setting out guidelines for the use of whole or processed waste tires for erosion control, drainage structures, civil engineering applications, and other uses where the intended purpose is to produce a beneficial product or an end use, but not posing a threat to the environment, or to public health, welfare, and safety. The purpose of the rules is to identify those safe alternatives. These provisions implement 1996 legislation--House File 2433. The Act provided for the creation of an advisory committee to advise on this rulemaking. The Act called for the use of tires in erosion control structures, various drainage systems, road bases, culverts, field crossings, or intakes, or agricultural or construction uses. The rules enumerate a series of accepted uses for whole tires, shredded tires, bailed tires and cut tires.

This waiver will be available to persons with a physical disability who currently reside in a medical institution and who have been residents of a medical institution for a minimum of 30 days. To be eligible the applicant must:

• Have a physical disability;
• Be blind or disabled;
• Be ineligible for the HCBS MR waiver; Have the ability to hire, supervise, and fire the provider as determined by the service worker and be willing to do so or have a guardian;
• Be eligible for Medicaid; and be aged 18 years to 64 years;
• Use a minimum of one unit of consumer-directed attendant care service or personal emergency response system service each quarter.

Services available on this waiver include consumer-directed attendant care, home and vehicle modification, personal emergency response system, specialized medical equipment, and transportation. The total cost of physical disability waiver services provided to a recipient shall not exceed $1,150 per month. Services range from non-skilled personal care and hygiene services up to some medical care provided under the supervision of a health care professional.

Some equipment needs are met by the program. This includes the modification of a home or auto for accessibility and some in-home medical equipment.

The department emergency-implements a restoration of food stamps to certain aliens. Under this change eligibility is not time-limited for the following groups:

• Aliens lawfully residing in the United States who were members of a Hmong or Highland Lao tribe, or their families, assisting the United States during the Vietnam War.
• Canadian Indians who have treaty rights to cross the U.S. borders into Canada and Mexico.
• Legal immigrants who were 65 years of age or older on August 22, 1996, or are under 18 years of age, or are receiving payments or assistance for blindness or disability.

Eligibility for the following groups is extended from five to seven years:

• Refugees.
• Asylees.
• Aliens whose deportation has been withheld.

Lastly, eligibility is limited to seven years for the following groups:

• Aliens whose deportation has been withheld under Section 241(b)(3) of the INA.
• Cubans and Haitians.
• Amerasian immigrants.

In 1997 federal law (Public Law 105-32) added a new title to the Social Security Act and appropriated $39.6 billion over ten years to provide health care coverage to uninsured targeted low-income children. Iowa's share of the funds is approximately $32.4 million annually.

In 1988 The General Assembly passed House File 2517, which directs the Department of Human Services to expand their existing Medicaid program ant to create a separate child health insurance program. The first phase of the program expanded the Medicaid program to 133 percent of the federal poverty level for all children under the age of 19 and was implemented on July 1, 1998. The second phase created a separate child health program called Healthy and Well Kids in Iowa (HAWK-I) to provide health care coverage to children under the age of 19 who are not Medicaid-eligible and who live in families with income below 185 percent of the federal poverty level. The HAWK-I program is to be effective January 1, 1999. House File 2517 created the HAWK-I Board to adopt rules and provide direction to the Department of Human Services on the administration of the program.

A number of children are not eligible for this program, these include:

• Are eligible for insurance coverage as the dependents of a state of Iowa employee.
• Are eligible for Medicaid.
• Are inmates in a non-medical public institution.
• Are inmates in an institution for mental disease at the time of application or annual review.
• Have other health care coverage.

Families whose income is equal to or more than 150 percent of the federal poverty level pay a monthly premium of $10 per child, up to maximum of $30 per month. Failure to pay the premium results in dis-enrollment from the program. Families who voluntarily dropped health insurance coverage are not eligible to participate in the program for six months following the last day of coverage unless there was good cause for dropping the coverage.

The Act calls for a contract with health plans to provide health care coverage to children who qualify for the program. Any health plan licensed in Iowa may participate if the plan is willing to accept the reimbursement system and offer all covered benefits. The HAWK-I program is required to provide comprehensive benefits that are at least actuarially equivalent to specified level of services, including: inpatient and outpatient hospital, ambulance, physical therapy, nursing services, speech therapy, durable medical equipment, home health care, hospice care, prescription drugs, dental care (including restorative and preventative services), medically necessary hearing services, and vision services. There are no copayments except for a $25 copayment charged for emergency room visits that do not result in an inpatient hospital admission. A child may not be denied coverage due to the presence of a preexisting medical condition.

House File 2517 also requires that a third-party administrator provide administrative services for the program. The administrator is to receive applications, determine initial and ongoing eligibility for the HAWK-I program, assist the family in selecting a health care plan when more than one is available, enroll the family in the health plan, bill and collect the premium, and provide statistical data to the Department. The third-party administrator shall maintain a 24-hour bilingual customer service line to answer inquiries regarding the program.

Once enrolled in the health care plan, the child remains enrolled for 12 months unless the child attains the age of 19, the family fails to pay the premium, the child attains Medicaid eligibility, the child attains other health insurance coverage, the child enters a non-medical public institution , the child is eligible for health insurance coverage as a dependent of a state of Iowa employee, or the child relocates to another state. A child may be disenrolled if the child moves to an area of the state in which the plan has no provider network established. If the child is disenrolled, the child shall be enrolled in a participating plan in the new location.

These provisions first appears as an emergency filing in July, 1998. Senate File 2517 created a special board to oversee the Health and Well Kids in Iowa Program. As detailer previously, the "HAWK-I" program is designed to improve the health of children and to provide health insurance coverage to eligible children. Health insurance coverage under the program is provided by participating insurers and through qualified child health plans. The Department of Human Services is designated to receive the state and federal funds appropriated or provided for the program, and to submit and maintain the state plan for the program. However, policymaking for the program is vested in this independent board.

Under the Act the board has the policymaking and rulemaking authority for this program, acting in consultation with the department. This authority extends to all aspects of the program, as specified in the Act, including: selection of the administrative contractor managing the program, defining the scope of service, program eligibility, selection of insurance providers, grounds for disqualification.

The department supplants an earlier emergency filing with a normally-adopted provision. This change implements federal requirements which mandate that home health agencies maintain a surety bond for either $50,000 or 15% of the agency's Medicaid payments. The bond must provide for payment to the Department, up to the face value of the bond, for any overpayment to the agency, including interest.

This filing requires health insurance carriers and health maintenance organizations to disclose to policyholders the existence of any drug formularies and the existence of any contractual arrangements which provide rebates or other incentives for drugs or medical devices. Formularies are in essence a list of drugs or medications which are covered under the policy.

These provisions were initially published as a notice of intended action in April, 1998. The 180 day window for adoption of that notice has expired; instead of re-noticing the filing the division has chosen to place it in emergency effect.

This proposal is the culmination of a long-term effort to re-vamp the State of Iowa's program for deferred compensation. The process began with the 1997 enactment of House File 540, which changed and expanded the choices available to state employees in the area of deferred compensation. The Act required the Department of Personnel to make available to state employees the option of utilizing mutual funds as an investment alternative to the then-currently used annuity plans.

This plan represents a compromise among the various providers and provides state employees with a broad range of investment choices. Government employees are allowed to defer 1/3rd of their income up to a maximum of $7500 a year in income by enrolling in so-called 457 plans {457(g) of the Internal Revenue Code}. Employees within three years of their normal retirement may "catch up", deferring up to $15,000 annually. The minimum deferral in any one month is $25. . The deferred amount is included in the employee's gross wages for purposes of determining FICA withholding, IPERS, and other retirement contributions. The amount of earned compensation deferred under the agreement is exempt from federal and state income taxes until such time as the funds are paid or made available as provided in IRC Section 457, as amended. This tax-deferred income is held in trust by the State of Iowa and invested under the direction of the employee.

Under the plan the state employs an trustee responsible for the day-to-day operation of the plan. The trustee adopts various options for the investment of deferred income and monitors and evaluates the appropriateness of the investment options offered by the plan. These options include a number of mutual funds plus the more traditional annuities. The trustee may remove options if it is deemed to be in the best interest of participants or for other good cause as determined by the trustee. The trustee will appoint an advisory committee and vendor panel. The advisory committee consists of representatives of the three branches of government along with the private sector. The committee will meet to advise the trustee in the administration of the plan and the plan investment options. Such meetings shall occur no less than twice each year.

The vendor panel is made up of a representative of each active investment provider under the plan and a representative of the authorized sales agents of the investment providers appointed by the plan trustee. The panel will meet to aid in the efficient administration of the investment options under the plan. Such meetings shall occur no less than twice each year.

The proposed rules implement 1998 Iowa Acts, Chapter 1221 creating a voluntary regionalized system of perinatal health care. Iowa's regionalized system of perinatal health care will help practitioners in rural Iowa rapidly access specialty services for their patients even though such services may not exist in the local, rural community. Hospitals within the state may choose to participate in Iowa's regionalized system of perinatal health care and select the hospital's level of participation in the regionalized system. The primary purpose of designation is to ensure Iowa perinatal patients appropriate care as close to their homes as possible.

A hospital wishing to participate in the regionalized system must comply with the rules appropriate to the level of participation selected by the hospital. The rules describe the levels of care among Iowa perinatal hospitals. The levels: Level I hospital, Level II hospital, Level II regional center, and Level III center. The rules are designed to encourage and support the presence of a Level II regional center in areas not populous enough to support a Level III center.

The primary purpose of these designations is to provide Iowa perinatal patients appropriate care as close to their homes as possible. Also these rules ensure that when a hospital markets itself at a particular level of perinatal care, it is capable of providing that care. The rules provide the framework to be used in defining and evaluating the level of perinatal services being offered. The various levels provide the following functions:

Level I hospitals provide basic inpatient care for pregnant women and newborns without complications; manage perinatal emergencies, including neonatal resuscitation and c-sections; provide early risk identification; seek consultation or referral for high-risk patients; and provide public and professional education.

Level II hospitals provide the same care and services as Level I hospitals plus they provide management of certain high-risk pregnancies and services for newborns with selected complications. These hospitals deliver approximately 500 or more babies annually and have an obstetrician and pediatrician on staff. The perinatal unit is under the co-direction of a pediatrician and an obstetrician.

Level II regional centers have a developed neonatal intensive care unit (NICU). The obstetric service in a Level II regional center provides services for maternity patients at higher risk than those in Level II hospitals because of the presence of an NICU.

Level III centers provide the same care and services as Level II regional centers, plus they manage most high-risk pregnancies and neonates under 34 weeks gestation. The Level III center is an extension of the Level II regional center and serves the same regional functions. The difference is additional professional staff and more extensive physical facilities. There may be multiple Level III centers in the same city. Level III centers have the same physical facilities as Level II regional centers; however, they have more equipment and serve a more complicated patient population.

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 completes action on an omnibus rule-making which contains two significant changes. The first would remove ATM machines to non-gambling areas of the facility. This provision is not a ban on ATM machines; the intent of this change is to create a brief "cooling-off" period before gamblers access their checking or savings accounts. While this is a controversial action, it is clearly within the authority of the Commission; Iowa Code 99F.4(3) specifically empowers the Commission to adopt standards for gambling operations. This provision would include the location of facility equipment.

The second change establishes standards for the approval of future expansion in the number of slot machines. This second provision is the more controversial. The concept of standards as part of an application process, 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. Item three of the filing states:

c. A licensee seeking an increase in the number of gaming machines at a racetrack enclosure must obtain prior approval from the commission. In the request for approval from the commission, a licensee shall demonstrate to the commission's satisfaction that the additional gaming machines:(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 impact on the financial viability of 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.

The nine enumerated standards do not appear to be an unreasonable basis for evaluating application, but the next paragraph largely undoes whatever impartiality, predictability and fairness that is provided by having detailed standards. The unnumbered paragraph basically states that the standards may have different weight on a case-by-case basis and additional criteria may be considered. This broad discretion defeats the purpose of standards.

Standards are a mechanism to channel agency discretion; they ensure that agency decision-making is, to the extent possible, impartial and consistent. Standards are also an invaluable mechanism to inform applicants what is expected from them. It is appropriate to "weigh" standards because some may well be more important than others---but the weighting must be consistent to protect against arbitrary or capricious agency action.

For these reasons the standards established in item three are not adequate. They neither channel agency discretion nor do they guarantee the uniform and impartial handling of applications.

This change was requested by the Bureau of Criminal Investigation in order to resolve scheduling problems. The BCI has sufficient personnel to have a peace office on all boats during all hours of operation, but sick leave, vacation leave and other absences make scheduling a problem; at times experienced agents must be pulled off the important work of doing background checks. The solution is to give the BCI flexibility to schedule agents for those times where a peace officer is most needed, such as weekends and evenings. Other times, such as the graveyard shift or weekday days, agents would be available by telephone, but might not be actually present on the boat during these low-usage periods. Under this proposal the number of agents would not change, but they would be deployed at the more critical times

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 adopts 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.

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