ADMINISTRATIVE RULES REVIEW COMMITTEE Rules Digest -- July 1999 Scheduled for committee review - August 4, 1999 - Room #1 For further information, please contact Joe Royce, Legal Counsel, Administrative Rules Review Committee

HIGHLIGHTS IN THIS ISSUE:

AGRICULTURE DEPARTMENT Organic standards

CIVIL RIGHTS COMMISSION Housing discrimination

ECONOMIC DEVELOPMENT DEPARTMENT Housing Fund

ECONOMIC DEVELOPMENT DEPARTMENT Emergency shelter grants,

ECONOMIC DEVELOPMENT DEPARTMENT "A taste of Iowa" logo

ECONOMIC DEVELOPMENT DEPARTMENT ACE PIAP

ECONOMIC DEVELOPMENT DEPARTMENT "REACH" Program

EDUCATION DEPARTMENT Standards for practitioner preparation

EDUCATION DEPARTMENT Accreditation standards

INSPECTIONS & APPEALS Food protection certification program

INSURANCE DIVISION Benefits changes in certain health policies

LAW ENFORCEMENT ACADEMY Officer standards

PUBLIC SAFETY DEPARTMENT Sex offender registry

TREASURER LIFT program

DEPARTMENT OF WORKFORCE DEVELOPMENT Contested case procedures

98 Acts chapter 1205 created an organic foods certification and standards process. A multi-member board had been set up within the Department of Agriculture with the power to govern the production, handling, processing, and selling of agricultural products designated as organically grown. The rules provide for standards, certification, inspections, testing, the assessment and collection of state fees, the maintenance of records, disciplinary action, and the issuance of stop sale orders.

In order to be certified by the department, the producer, handler, or processor must submit an organic plan which includes methods used to ensure that the agricultural products are produced, handled, and processed according to requirements established by the rules and statute. The plan contains the detail for management of an organic crop, livestock, wild harvest, processing or handling operation that has been agreed to by the operator and the department; it specifies the steps necessary for the operation to be in compliance with organic standards.

The department provides to the successful applicant an official certificate recognizing compliance with Iowa Code chapter 190C and the rules. The certificate may be used to indicate that products are certified as being produced, processed and handled in conformity with the organic standards. The certificate may not be used in any way that brings the department into disrepute or which is misleading or unauthorized. Intentional fraud or inadvertent violation of the statute or the rules may result in suspension of certification or decertification. If inadvertent violations are not corrected as required by the department, or in the case of fraud, the operation may be decertified.

For the first time in six years the commission re-writes the procedural rules relating to discrimination in housing; the are loosely based on the Iowa Rules of Civil Procedure. New rule 9.6 creates an entire "discovery" procedure -- a formal process to be used to gather testimony and evidence during the investigation of a complaint. When investigating a complaint of alleged discriminatory housing or real estate practices, the commission may obtain discovery by one or more of the following methods: depositions upon oral examination or written questions; written interrogatories; production of documents or things or permission to enter upon land or other property, for inspection and other purposes; physical and mental examinations; and requests for admission.

The commission may obtain discovery on any matter, not privileged, which is relevant to the subject matter involved in the pending investigation, whether it relates to the claim or defense of any party, including the existence, description, nature, custody, condition and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of any discoverable matter.

The department updates its home fund rules. Early in 1988 these rules replaced the old "HOME Investment Partnership Program" with a new program consolidating housing requirements, for low and moderate income housing, combined into a single chapter. This program funds "affordable" housing, which means for rentals, either the area fair market rent or 30% of 65% of the area median family income; and for home ownership the purchase price cannot exceed 95% of the median home price in the area. For home ownership, assistance must be less than $25,000 All rental units and home ownership assistance must go to households with incomes at or below 80% of the median income. Additionally, for rental assistance 90% of the families served must have an income lower than 60% of the area median. Eligible activities under this program include rehabilitation of existing properties, rent assistance and new construction.

The department completes action on a general update of the emergency shelter program. This is essentially a federal program that provides funding for labor, materials, tools, and other costs of improving buildings including repair directed toward an accumulation of deferred maintenance; replacement of principal fixtures and components of existing buildings; installation of security devices; and improvement through alterations or additions to, or enhancements of, existing buildings, including improvements to increase the efficient use of energy in buildings. The program also funds homeless prevention programs and some direct services to the homeless.

Eligible applicants under the grants program include city and county governments, and private nonprofit organizations. Each recipient must match the grant amount with an equal amount. In calculating the amount of matching funds, the following may be included: the value of any donated material or building, the value of any lease on a building, any salary paid to staff of the grantee or to any state recipient in carrying out the emergency shelter program; and the time and services contributed by volunteers at the rate of $5 per hour. Exemptions from this match are available for up to $100,000.

The department also finalizes a new program funding the operation of homeless shelters. Eligible applicants under the grants program include city and county governments, and private nonprofit organizations. The program funds the rehabilitation of buildings used by service providers, operational expenses of service providers and homeless prevention programs. There is no matching requirement for this program.

The department implements a "Taste of Iowa" marketing program; the program is filed emergency to implement it as soon as possible. Applicants to use this logo include companies whose products are manufactured, processed or originates in Iowa and service-oriented firms including financial, wholesalers and distribution centers who deal with Iowa products. The applicant must:

• The company shall have a credible reputation as confirmed by the local chamber of commerce, the better business bureau, the regional coordinating council, or a local economic development group.
• The applicant's product or service shall be manufactured or processed or shall originate in Iowa.
• Any applicant whose license to use the logo was terminated is ineligible to reapply for five years from the date of termination.
• The company shall furnish a signed and completed application.

Senate File 465 creates a capital funding program for jobs training programs. All programs must demonstrate increased capacity to enroll additional students. Eligible programs must be either a career, vocational, or technical education program resulting in a certificate, diploma, or degree; or an equivalent program consisting of not less than 540 contact hours of classroom and laboratory instruction and resulting in the conferring of a certificate or credential. Funds may only be used for vertical infrastructure, which means land acquisition and construction, major renovation and repair of buildings, adjacent structures, utilities, site development and equipment installation. The term does not include equipment, routine, recurring maintenance or operational expenses or leasing costs.

• A base allocation of $3 million is equally divided among all community colleges. Competitive awards will be made based on the following criteria:

• Lack of existing public or private infrastructure for development of the partnership. 33 points.
• Demonstration that the jobs would improve the quality of employment within the region. 33 points.
• Local, public or private contributions that meet the requirements of the Act. 34 points.
• Applications that do not receive at least 66 out of 100 will not be forwarded to the department board for review. Projects will be competing against each other for board approval, and the number of points that a project receives will be considered in the award process.

House File 772 has created a new recreational and tourism program offering some $25 million in funding over the next two years. Eligible applicants includes political subdivisions and public organizations. The program has three components. Community attraction component provides financial assistance for community-sponsored attraction and tourism activities, including museums, theme parks, cultural and recreational centers, sports arenas and other attractions. Project development component includes assisting in departmental evaluation of proposals or feasibility studies for projects which are eligible for assistance under this component. Interim financing component provides short-term financial assistance for eligible community attraction and tourism activities. Financial assistance may be provided as a float loan. A float loan may be made only for activities that can provide the department with an irrevocable letter of credit or equivalent security instrument from a lending institution rated AA or better, assignable to the department in an amount equal to or greater than the principal amount of the loan.

Eligible activities include those which are related to a local attraction, and which would position a community to take advantage of economic development opportunities in tourism and strengthen a community's competitiveness as a place to work and live. Activities include building construction or reconstruction, rehabilitation, conversion, acquisition, demolition for the purpose of clearing lots for development, site improvement, equipment purchases, and other activities as may be deemed appropriate by the department. Eligible forms of assistance include grants, interest-bearing loans, non-interest-bearing loans, float loans under the interim financing component, interest subsidies, deferred payment loans, forgivable loans, loan guarantees, or other forms of assistance as may be approved by the Department.

Applications are evaluated according to the following point system:

• Feasibility. (0-25 points) In order to be eligible for funding, proposals must score at least 15 points on this rating factor.
• Economic impact (0-25 points) In order to be eligible for funding, proposals must score at least 15 points on this rating factor.
• Leveraged activity (0-25 points) In order to be eligible for funding, proposals must score at least 15 points on this rating factor.
• Geographic diversity (0-10 points.).
• Local match (0-15 points).

A minimum score of 65 points is needed for a project to be recommended for funding.

The department proposes new rules relating to teacher preparation at Iowa's colleges and universities. All such programs are approved by the state board of education. These rules will be effective in August, 2001.

Compliance with these standards will be by self-evaluation of the participating institutions. Applicants for approval will be visited by a team of department employees. Approval is for five years. Once approved, graduates of these institutions will be issued the appropriate license and endorsements.

The proposal contains a fairly detailed set of standards for the evaluation of these programs. The standards fall under a number of specific categories:

• Staff support and resources;
• Racial, ethnic, gender and cultural diversity in both faculty and student body;
• Faculty performance and ongoing development;
• Clinical practice;
• Student performance standards.

1998 Iowa Act Chapter 1176 provides that the department adopt rules by July 1, 1999, incorporating accountability for student achievement into the standards and accreditation process. The rules provide for all of the following:

• Requirements that all school districts and accredited nonpublic schools utilize a comprehensive school improvement plan that includes provides for school, parental, and community involvement in assessing educational needs, establishing local education standards and student achievement levels. This plan is defined as a design that describes how the school or school district will increase student learning, achievement, and performance; it may be more comprehensive.
• A set of core academic indicators in mathematics and reading in grades four, eight, and eleven, a set of core academic indicators in science in grades eight and eleven, and another set of core indicators that includes, but is not limited to, graduation rate, post-secondary education, and successful employment in Iowa. Annually, the department shall report state data for each indicator in the condition of education report. These indicators are to provide information concerning the general status, quality or performance of the educational system.
• A requirement that all school districts and accredited nonpublic schools annually report to the department and the local community the district-wide progress made in attaining student achievement goals.

As part of the comprehensive plan set out in this division, each school board must adopt "clear, rigorous and challenging content standards and benchmarks in reading, mathematics and science_" Benchmarks are defined as specific knowledge and skills anchored to content standards that a student needs to accomplish by a specific grade. In short, they are actual examples of what the student should know. Another part of the plan involves a district-wide assessments of student progress, using state indicators.

The rules also set out a comprehensive school improvement and accreditation process. Phase I includes monitoring by the department to determine whether the goals of the plan and the accreditation standards are being met. This includes an annual desk audit and a comprehensive site visit, once every five years.

A phase II process occurs when a district is not taking necessary actions to meet the accreditation standards, or when petitions have been signed by 20% of the district voters or 20% of the families having enrolled students. This monitoring process begins with the creation of an accreditation committee made up of department staff and various school personnel. The committee will make at least one site visit. The committee may make a "recommendation" to the director. The state board will ultimately determine the accreditation status of the local district.

When reviewed under notice committee members expressed concern over the cost of compliance to the local districts. Department representatives responded that no additional costs would be incurred. They maintained that the required information is already kept, in different form, due to existing federal and state requirements; and that local districts need only reorganize their existing material. Two other issues were brought to the committee, relating to the elimination of standards from the exiting rules. These standards required guidance counselors and health programs. The elimination of these provisions means that local districts will not be reviewed on these items as part of the accreditation process. Advocates for these programs stressed their importance as an integral part of the educational process. In both cases department representatives cited the lack of statutory authority to include these two standards; however, they noted that the lack of an accreditation standard did not preclude these programs if the local district chose to provide them. Members requested that the prepare an informal economic impact statement concerning the costs associated with compliance to the proposed accreditation standards. In essence the statement concluded that no cost was associated with these requirements, since they did not actually require districts to do anything new, just make different use of existing information. Department representatives reiterated that any additional cost would be the choice of the local district, such as purchasing new tests, curricula or hiring personnel instead of using area education agency resources.

As part of the 1999 updating of Iowa's food code the department proposes to add "food protection certification programs". Under this proposal the department sets out the criteria for the approval of these programs. The food code requires that food managers demonstrate a knowledge of food handling. This requirement can be met by certification attained according to these rules. The rules do not certify the individual, rather they certify the program that trains the individual.

The division emergency adopts several mandatory coverage changes affecting HMO's, preferred provider arrangements, small group and individual policies. The first is an anti-gag provision prohibiting insurers from prohibiting health care providers from discussing treatment options with covered persons, or from advocating on behalf of covered persons within the utilization review or grievance processes.

The second change requires benefits for inpatient and outpatient emergency services. These are defined as services that are furnished by a provider who is qualified to furnish the services that are needed to evaluate or stabilize an emergency medical condition.

The next change allows a patient direct access to an obstetrician or gynecologist for routine and preventive health care services; and also allows a pediatrician to be the primary care provider for a child through the age of 18. Lastly, benefits are required covering equipment, supplies and education for diabetes.

These proposals change current residency requirements to permit officers to reside within a standard metropolitan statistical area if their jurisdiction is part of such an area {e.g.: the Quad Cities}. Additionally, they add assault, domestic abuse and stalking or other offenses of domestic violence and any offense in which a weapon was used in the commission to the list of crimes defined as involving moral turpitude.

Iowa's sex offender registry, first established in 1995, is now modified in response to Senate File 294 and House File 136. The filing contains a number of changes. The most significant of these changes involves risk assessment. The term "risk" is now more clearly defined by being broken down into "moderate" and "high" risk. All registrants are automatically classified as "low risk", unless an assessment indicates a higher category. To the extent that funds are available information concerning moderate and high risk registrants will be made electronically available to the public, along with information concerning child molesters and violent offenders.

Any agency conducting a risk assessment must now allow the offender an opportunity to contest that assessment.

House File 779 creates a traditional livestock producers linked investment loan program to increase the availability of lower cost loans to "traditional livestock producers". This term means persons who own and operate livestock subject to care and feeding at a livestock operation in which they hold a legal interest. These producers must make daily management decisions and perform physical work which significantly contributes to the care and feeding of the livestock. Each certificate of deposit under this program is for one year and can be renewed for three years. The maximum loan is $300,000.

As mandated by 1998 Iowa Acts, Chapter 1202 the department is revising its rules relating to contested cases. The filing was controversial when initially place under notice in March because of subrule 26.14(1), which provided that contested cases would be decided by the departments Administrative Law Judges {ALJ's}. Section 15 of the Act provides in part that if an ALJ is utilized, that officer must be provided by the division of administrative hearings, "if the agency is a named party to that proceeding or a real party in interest..."

Recognizing this provision the department now cedes to the division of inspections and appeals all hearings where the department of workforce development is a party to the action. The department retains those 15,000+ hearings where the determination of unemployment benefits is at issue---and employment of the 14 ALJ's who make those determinations. The department retains those hearings because it is not "a real party in interest". Unemployment hearings are a dispute between the claimant and the employer, with the department ALJ adjudicating that dispute; the department has no particular interest in the outcome.

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Last update: TUE Aug 31 1999
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