AGRICULTURE AND LAND STEWARDSHIP
DEPARTMENT[21]

Notice, Organic certification and organic
standards, ch 47 ARC 9200A 12

Notice, Dairy, 68.1, 68.11, 68.15, 68.37
ARC 9202A 27

ALL AGENCIES

Schedule for rule making 4

Publication procedures 5

Agency identification numbers 9

CITATION OF ADMINISTRATIVE RULES 8

civil rights commission[161]

Filed, Discrimination in housing, 9.2 to 9.28
ARC 9206A 54

ECONOMIC DEVELOPMENT, IOWA
DEPARTMENT OF[261]

Notice, Certified school to career program,
11.3(10)"b" ARC 9184A 29

Notice, ACE PIAP program, ch 20
ARC 9182A 29

Notice, Housing fund, ch 25 ARC 9181A 29

Notice, REACH--community attraction and
tourism development program, ch 65
ARC 9185A 34

Filed Emergency, ACE PIAP program, ch 20
ARC 9183A 40

Filed, Emergency shelter grants program,
ch 24 ARC 9179A 54

Filed, Homeless shelter operation grants
program, ch 29 ARC 9180A 57

Filed Emergency, REACH--community attraction
and tourism development program, ch 65
ARC 9186A 42

Filed, Use of marketing logo, ch 72
ARC 9187A 57

EDUCATIONAL EXAMINERS BOARD[282]

EDUCATION DEPARTMENT[281]"umbrella"

Filed, Two-year nonrenewable school counseling
exchange license, 14.26 to 14.34 ARC 9205A 58

EDUCATION DEPARTMENT[281]

Filed, General accreditation standards, 12.1 to
12.5, 12.7 to 12.9 ARC 9212A 58

EMERGENCY MANAGEMENT DIVISION[605]

PUBLIC DEFENSE DEPARTMENT[601]"umbrella"

Notice of Public Funds Availability 11

ENVIRONMENTAL PROTECTION
COMMISSION[567]

NATURAL RESOURCES DEPARTMENT[561]"umbrella"

Notice, Methyl tertiary-butyl ether (MTBE)
in soil and groundwater samples, 135.19
ARC 9198A 35

Filed Emergency, Methyl tertiary-butyl ether
(MTBE) in soil and groundwater samples,
135.19 ARC 9208A 45

INSURANCE DIVISION[191]

COMMERCE DEPARTMENT[181] "umbrella"

Notice, Health insurance carrier and policy
requirements, 27.3(4), 35.20, 35.32 to
35.34, 40.1, 40.12, 40.20, 40.24, 71.14(9),
71.20 to 71.22, 75.7, 75.13 to 75.16
ARC 9194A 35

Notice, Annuity mortality tables for use in
determining reserve liabilities for annuities,
ch 43 ARC 9204A 35

Filed Emergency, Health insurance carrier and policy
requirements, 27.3(4), 35.20, 35.32 to
35.34, 40.1, 40.12, 40.20, 40.24, 71.14(9),
71.20 to 71.22, 75.7, 75.13 to 75.16
ARC 9213A 46

LAW ENFORCEMENT ACADEMY[501]

Notice, Law enforcement officers,
2.1, 2.2, 2.4, 2.5 ARC 9178A 37

PROFESSIONAL LICENSURE DIVISION[645]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Filed, Massage therapy examiners, 131.6 to
131.17, chs 136 to 139 ARC 9196A 68

Filed, Psychology examiners, 240.200 to 240.213,
240.300, chs 241, 242, 249 ARC 9199A 68

PROFESSIONAL LICENSURE DIVISION[645] (Cont'd)

Filed, Athletic training examiners, 350.22 to
350.30, chs 355 to 358 ARC 9195A 69

PUBLIC FUNDS--AVAILABILITY

Emergency Management Division[605]
Hazard mitigation grants 11

PUBLIC HEALTH DEPARTMENT[641]

Filed, Radiation, 41.1 to 41.3, 42.1 to 42.3,
45.3(1) ARC 9203A 70

PUBLIC HEARINGS

Summarized list 6

RACING AND GAMING COMMISSION[491]

INSPECTIONS AND APPEALS DEPARTMENT[481]"umbrella"

Filed, Contested cases, ch 4 ARC 9189A 71

Filed, Harness racing, ch 9, 13.27 ARC 9188A 71

REVENUE AND FINANCE DEPARTMENT[701]

Notice, Internet access charges exempt from
tax, 18.20(5) ARC 9190A 38

Filed Emergency, Internet access charges exempt
from tax, 18.20(5) ARC 9191A 48

Filed, Inheritance tax, estate tax, generation
skipping transfer tax, and fiduciary income tax,
amendments to chs 86 to 89 ARC 9192A 71

STATUS OF AFRICAN-AMERICANS,
DIVISION ON THE[434]

HUMAN RIGHTS DEPARTMENT[421]"umbrella"

Filed, Agency procedures, chs 3 to 6
ARC 9207A 72

TREASURER OF STATE[781]

Notice, LIFT--traditional livestock producer's
linked investment loan program, 4.10
ARC 9209A 39

Filed Emergency, LIFT--traditional livestock
producer's linked investment loan program,
4.10 ARC 9210A 49

Filed Emergency After Notice, Agency procedures,
chs 17, 18 ARC 9211A 50

USURY

Notice 39

WORKERS' COMPENSATION DIVISION[876]

WORKFORCE DEVELOPMENT DEPARTMENT[871]"umbrella"

Filed Emergency, Payroll tax tables, 8.8
ARC 9193A 50

WORKFORCE DEVELOPMENT BOARD/
SERVICES DIVISION[877]

WORKFORCE DEVELOPMENT DEPARTMENT[871]"umbrella"

Filed Emergency After Notice, Regional advisory
boards, 6.1 to 6.11 ARC 9201A 51

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.

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

ROSEMARY DRAKE, Deputy Editor (515)281-7252

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.

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 - $1,163.76 plus $58.19 sales tax

(Price includes 22 volumes of rules and index, plus a one-year subscription to the Code Supplement and the Iowa Administrative Bulletin.)

Iowa Administrative Code Supplement - $409.24 plus $20.46 sales tax

(Subscription expires June 30, 2000)

All checks should be made payable to the Iowa State Printing Division. Send all inquiries and subscription orders to:

Customer Service Center

Department of General Services

Hoover State Office Building, Level A

Des Moines, IA 50319

Telephone: (515)242-5120

NOTICE SUBMISSION DEADLINE	NOTICE PUB. DATE	HEARING OR COMMENTS 20 DAYS	FIRST POSSIBLE ADOPTION DATE 35 DAYS	ADOPTED FILING DEADLINE	ADOPTED PUB. DATE	FIRST POSSIBLE EFFECTIVE DATE	POSSIBLE EXPIRATION OF NOTICE 180 DAYS
Dec. 25 '98	Jan. 13 '99	Feb. 2 '99	Feb. 17 '99	Feb. 19 '99	Mar. 10 '99	Apr. 14 '99	July 12 '99
Jan. 8	Jan. 27	Feb. 16	Mar. 3	Mar. 5	Mar. 24	Apr. 28	July 26
Jan. 22	Feb. 10	Mar. 2	Mar. 17	Mar. 19	Apr. 7	May 12	Aug. 9
Feb. 5	Feb. 24	Mar. 16	Mar. 31	Apr. 2	Apr. 21	May 26	Aug. 23
Feb. 19	Mar. 10	Mar. 30	Apr. 14	Apr. 16	May 5	June 9	Sept. 6
Mar. 5	Mar. 24	Apr. 13	Apr. 28	Apr. 30	May 19	June 23	Sept. 20
Mar. 19	Apr. 7	Apr. 27	May 12	May 14	June 2	July 7	Oct. 4
Apr. 2	Apr. 21	May 11	May 26	May 28	June 16	July 21	Oct. 18
Apr. 16	May 5	May 25	June 9	June 11	June 30	Aug. 4	Nov. 1
Apr. 30	May 19	June 8	June 23	June 25	July 14	Aug. 18	Nov. 15
May 14	June 2	June 22	July 7	July 9	July 28	Sept. 1	Nov. 29
May 28	June 16	July 6	July 21	July 23	Aug. 11	Sept. 15	Dec. 13
June 11	June 30	July 20	Aug. 4	Aug. 6	Aug. 25	Sept. 29	Dec. 27
June 25	July 14	Aug. 3	Aug. 18	Aug. 20	Sept. 8	Oct. 13	Jan. 10 '00
July 9	July 28	Aug. 17	Sept. 1	Sept. 3	Sept. 22	Oct. 27	Jan. 24 '00
July 23	Aug. 11	Aug. 31	Sept. 15	Sept. 17	Oct. 6	Nov. 10	Feb. 7 '00
Aug. 6	Aug. 25	Sept. 14	Sept. 29	Oct. 1	Oct. 20	Nov. 24	Feb. 21 '00
Aug. 20	Sept. 8	Sept. 28	Oct. 13	Oct. 15	Nov. 3	Dec. 8	Mar. 6 '00
Sept. 3	Sept. 22	Oct. 12	Oct. 27	Oct. 29	Nov. 17	Dec. 22	Mar. 20 '00
Sept. 17	Oct. 6	Oct. 26	Nov. 10	Nov. 12	Dec. 1	Jan. 5 '00	Apr. 3 '00
Oct. 1	Oct. 20	Nov. 9	Nov. 24	Nov. 26	Dec. 15	Jan. 19 '00	Apr. 17 '00
Oct. 15	Nov. 3	Nov. 23	Dec. 8	Dec. 10	Dec. 29	Feb. 2 '00	May 1 '00
Oct. 29	Nov. 17	Dec. 7	Dec. 22	Dec. 24	Jan. 12 '00	Feb. 16 '00	May 15 '00
Nov. 12	Dec. 1	Dec. 21	Jan. 5 '00	Jan. 7 '00	Jan. 26 '00	Mar. 1 '00	May 29 '00
Nov. 26	Dec. 15	Jan. 4 '00	Jan. 19 '00	Jan. 21 '00	Feb. 9 '00	Mar. 15 '00	June 12 '00
Dec. 10	Dec. 29	Jan. 18 '00	Feb. 2 '00	Feb. 4 '00	Feb. 23 '00	Mar. 29 '00	June 26 '00
Dec. 24	Jan. 12 '00	Feb. 1 '00	Feb. 16 '00	Feb. 18 '00	Mar. 8 '00	Apr. 12 '00	July 10 '00
Jan. 7 '00	Jan. 26 '00	Feb. 15 '00	Mar. 1 '00	Mar. 3 '00	Mar. 22 '00	Apr. 26 '00	July 24 '00

PRINTING SCHEDULE FOR IAB
ISSUE NUMBER	SUBMISSION DEADLINE	ISSUE DATE
3	Friday, July 23, 1999	August 11, 1999
4	Friday, August 6, 1999	August 25, 1999
5	Friday, August 20, 1999	September 8, 1999

PLEASE NOTE:

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

2. Alternatively, if you have Internet E-mail access, you may send your document as an attachment to an E-mail message, addressed to both of the following:

bcarr@legis.state.ia.us

kbates@legis.state.ia.us

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.

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.

AGENCY	HEARING LOCATION	DATE AND TIME OF HEARING
AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT[21]
Organic certification and organic standards, ch 47 IAB 7/14/99 ARC 9200A	Farmer's Savings Bank 205 Vine St. West Union, Iowa	August 3, 1999 7 p.m.
	Farm Credit Services 700 Farm Credit Dr. Ottumwa, Iowa	August 5, 1999 7 p.m.
	Public Library 507 Poplar Atlantic, Iowa	August 12, 1999 7 p.m.
	Chamber of Commerce 119 W. 6th St. Storm Lake, Iowa	August 17, 1999 7 p.m.
	Conference Room--2nd Floor Wallace State Office Bldg. Des Moines, Iowa	August 19, 1999 10 a.m.
ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]
ACE PIAP program, ch 20 IAB 7/14/99 ARC 9182A (See also ARC 9183A herein)	Main Conference Room 200 E. Grand Ave. Des Moines, Iowa	August 5, 1999 10 a.m.
Housing fund, ch 25 IAB 7/14/99 ARC 9181A	Main Conference Room 200 E. Grand Ave. Des Moines, Iowa	August 3, 1999 1:30 p.m.
REACH--community attraction and tourism development program, ch 65 IAB 7/14/99 ARC 9185A (See also ARC 9186A herein)	Main Conference Room 200 E. Grand Ave. Des Moines, Iowa	August 4, 1999 1 p.m.
EDUCATION DEPARTMENT[281]
Standards for practitioner preparation programs, ch 79 IAB 6/30/99 ARC 9130A	Conference Room 3 North--3rd Floor Grimes State Office Bldg. Des Moines, Iowa	August 30, 1999 2 p.m.
INSURANCE DIVISION[191]
Health care service and treatment coverage, amendments to chs 27, 35, 40, 71, 75 IAB 7/14/99 ARC 9194A (See also ARC 9213A herein)	330 E. Maple St. Des Moines, Iowa	August 3, 1999 10 a.m.
LAW ENFORCEMENT ACADEMY[501]
Minimum standards for Iowa law enforcement officers, 2.1, 2.2, 2.4, 2.5 IAB 7/14/99 ARC 9178A	Conference Room Law Enforcement Academy Camp Dodge Johnston, Iowa	August 3, 1999 9 a.m.
LIBRARIES AND INFORMATION SERVICES DIVISION[286]
Enrich Iowa program, 3.2 IAB 6/30/99 ARC 9160A (See also ARC 9159A)	Conference Room State Library E. 12th and Grand Des Moines, Iowa	August 4, 1999 10 a.m.
NATURAL RESOURCE COMMISSION[571]
Blufflands protection program and revolving loan fund, ch 24 IAB 6/30/99 ARC 9170A	West Conference Room--4th Floor Wallace State Office Bldg. Des Moines, Iowa	July 20, 1999 10 a.m.
Recreational complex or facility projects, 29.7(4) IAB 6/30/99 ARC 9174A	West Conference Room--4th Floor Wallace State Office Bldg. Des Moines, Iowa	July 22, 1999 10 a.m.
Lake restoration; grants, 30.14 IAB 6/30/99 ARC 9172A	West Conference Room--4th Floor Wallace State Office Bldg. Des Moines, Iowa	July 20, 1999 10 a.m.
Zoning of Mississippi River, McGregor, Clayton County, 40.47 IAB 6/30/99 ARC 9171A	West Conference Room--4th Floor Wallace State Office Bldg. Des Moines, Iowa	August 4, 1999 9 a.m.
Vessel storage fees; Lake Manawa State Park, 61.3(5), 61.6(11) IAB 6/30/99 ARC 9173A	West Conference Room--4th Floor Wallace State Office Bldg. Des Moines, Iowa	July 21, 1999 1 p.m.
PERSONNEL DEPARTMENT[581]
IPERS, 21.4, 21.5(1), 21.6(9), 21.8, 21.10(9), 21.11(2), 21.16(6), 21.19, 21.24, 21.30 IAB 6/30/99 ARC 9169A (See also ARC 9168A)	600 E. Court Ave. Des Moines, Iowa	July 20, 1999 9 a.m.
PUBLIC HEALTH DEPARTMENT[641]
Trauma system evaluation quality improvement committee, ch 138 IAB 6/30/99 ARC 9176A (ICN Network)	National Guard Armory 11 E. 23rd St. Spencer, Iowa	August 3, 1999 1 to 2 p.m.
	National Guard Armory 1712 LaClark Rd. Carroll, Iowa	August 3, 1999 1 to 2 p.m.
	National Guard Armory 1160 10th St. SW Mason City, Iowa	August 3, 1999 1 to 2 p.m.
PUBLIC HEALTH DEPARTMENT[641] (Cont'd)
	ICN Room--6th Floor Lucas State Office Bldg. Des Moines, Iowa	August 3, 1999 1 to 2 p.m.
	National Guard Armory 195 Radford Rd. Dubuque, Iowa	August 3, 1999 1 to 2 p.m.
	National Guard Armory 501 Hwy. 1 South Washington, Iowa	August 3, 1999 1 to 2 p.m.
STATE PUBLIC DEFENDER[493]
Indigent defense contracts; claims for indigent defense legal services; court-appointed counsel--eligibility guidelines, chs 11 to 13 IAB 6/30/99 ARC 9133A	Director's Conference Room Second Floor Lucas State Office Bldg. Des Moines, Iowa	July 20, 1999 10 a.m.
TRANSPORTATION DEPARTMENT[761]
Titles from foreign jurisdictions, 400.4 IAB 6/30/99 ARC 9131A	Conference Room--Lower Level Park Fair Mall 100 Euclid Ave. Des Moines, Iowa	July 22, 1999 10 a.m. (If requested)
TREASURER OF STATE[781]
LIFT--traditional livestock producer's linked investment loan program, 4.10 IAB 7/14/99 ARC 9209A (See also ARC 9210A herein)	Treasurer of State's Office State Capitol Bldg. Des Moines, Iowa	August 6, 1999 1 p.m.

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

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]

BEEF INDUSTRY COUNCIL, IOWA[101]

BLIND, DEPARTMENT FOR THE[111]

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]

EGG COUNCIL[301]

ELDER AFFAIRS DEPARTMENT[321]

EMPOWERMENT BOARD, IOWA[349]

ETHICS AND CAMPAIGN DISCLOSURE BOARD, IOWA[351]

EXECUTIVE COUNCIL[361]

FAIR BOARD[371]

GENERAL SERVICES DEPARTMENT[401]

HUMAN INVESTMENT COUNCIL[417]

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]

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]

LIVESTOCK HEALTH ADVISORY COUNCIL[521]

MANAGEMENT DEPARTMENT[541]

Appeal Board, State[543]

City Finance Committee[545]

County Finance Committee[547]

NARCOTICS ENFORCEMENT ADVISORY COUNCIL[551]

NATIONAL AND COMMUNITY SERVICE, IOWA COMMISSION ON[555]

NATURAL RESOURCES DEPARTMENT[561]

Energy and Geological Resources Division[565]

Environmental Protection Commission[567]

Natural Resource Commission[571]

Preserves, State Advisory Board[575]

PERSONNEL DEPARTMENT[581]

PETROLEUM UNDERGROUND STORAGE TANK FUND
BOARD, IOWA COMPREHENSIVE[591]

PREVENTION OF DISABILITIES POLICY COUNCIL[597]

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]

RECORDS COMMISSION[671]

REGENTS BOARD[681]

Archaeologist[685]

REVENUE AND FINANCE DEPARTMENT[701]

Lottery Division[705]

SECRETARY OF STATE[721]

SEED CAPITAL CORPORATION, IOWA[727]

SHEEP AND WOOL PROMOTION BOARD, IOWA[741]

TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION, IOWA[751]

TRANSPORTATION DEPARTMENT[761]

Railway Finance Authority[765]

TREASURER OF STATE[781]

UNIFORM STATE LAWS COMMISSION[791]

VETERANS AFFAIRS COMMISSION[801]

VETERINARY MEDICINE BOARD[811]

VOTER REGISTRATION COMMISSION[821]

WORKFORCE DEVELOPMENT DEPARTMENT[871]

Labor Services Division[875]

Workers' Compensation Division[876]

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

ARC 9200A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 190C.12 and 190C.13, the Department of Agriculture and Land Stewardship hereby rescinds Chapter 47, "Organic Food Production," and adopts a new Chapter 47, "Organic Certification and Organic Standards," Iowa Administrative Code.

The proposed new chapter is intended to establish organic standards for producers, processors and handlers of organic agricultural products and to establish an organic certification program within the Department.

Any interested person may make written suggestions or comments on the proposed chapter prior to 12 noon on August 19, 1999. Such written material should be directed to the Organic Agriculture Bureau, Department of Agriculture and Land Stewardship, Wallace State Office Building,Des Moines, Iowa 50319; fax (515)281-6236; E-mailmaury.wills@idals.state.ia.us.

Also, there will be public hearings on the following dates: August 3, 1999, at 7 p.m., Farmer's Savings Bank, 205 Vine Street, West Union, Iowa; August 5, 1999, at7 p.m., Farm Credit Services, 700 Farm Credit Drive, Ottumwa, Iowa; August 12, 1999, at 7 p.m., Atlantic Public Library, 507 Poplar, Atlantic, Iowa; August 17, 1999, at7 p.m., Storm Lake Chamber of Commerce, 119 W. Sixth Street, Storm Lake, Iowa; and August 19, 1999, at 10 a.m., Second Floor Conference Room, Wallace State Office Building, Des Moines, Iowa. Persons may present their views either orally or in writing. Persons presenting their views orally should submit a written copy of their comments. At the hearings, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the chapter.

These rules are intended to implement Iowa Code chapter 190C.

The following new chapter is proposed:

21--47.1(190C) Purpose. In enacting the organic agricultural products Act of 1998, Iowa Code chapter 190C, the Iowa legislature has recognized a variety of needs. These include the need for protection of farmers and consumers with regard to marketing of agricultural products labeled organic in the state of Iowa; the need to define organic agriculture standards that, upon implementation, will promote and enhance agro-ecosystem health, biological diversity and holistic farming practices; and the need to maintain the integrity of organic standards as developed, upheld and perceived by the organic industry. As such, standards relating to the production, processing and handling of organic products have been established through the enactment of the organic agricultural products Act of 1998 and this chapter.

The Act is intended to encourage and enable Iowans to produce agricultural products for the organic market by setting attainable standards and a system of verification of compliance with these standards through a state organic certification program. The department believes that compliance with the Act and this chapter will enhance the quality of organically produced agricultural products and promote interstate and international markets.

The Act establishes the department as a certification agency. However, the Act recognizes the role of private certification agencies providing organic certification services in the state. Private certification agencies should be informed that Iowa producers, processors and handlers certified by such agencies must be in compliance with the Act and this chapter.

A product that contains a substance for which residue standards have been set by EPA cannot be labeled or sold as organically produced if that product contains over 5 percent of the EPA residue tolerance level for that substance. Therefore, consumers will have a higher level of protection against residues in foods labeled organic than they have with all other foods which must only meet EPA minimum standards. The department recognizes that organic growers are striving to protect and improve the integrity of their products and that testing may be conducted to verify compliance with Iowa Code chapter 190C and this chapter.

The department recognizes that the National Organic Program has not been implemented at the writing of this chapter but that once implemented, USDA accreditation of private and state certification agencies will be required pursuant to the Organic Foods Production Act of 1990. Private certification agencies may provide certification services in Iowa prior to such accreditation being made available by USDA. Once accreditation is available, private certification agencies shall attain USDA accreditation as required by USDA to continue to provide certification services in the state.

This chapter establishes organic standards which are at least equal to and sometimes more stringent than the anticipated National Organic Program standards. The department acknowledges that this chapter is intended to be reasonably consistent with industry, national and international organic standards as established by private certification agencies and international accrediting bodies.

This chapter shall be understood to apply to producers, processors, and handlers of agricultural products advertised or sold as organic. Future amendments to this chapter may be necessary upon the implementation of the National Organic Program.

21--47.2(190C) Definitions. As used in this chapter, the following definitions apply:

"Accreditation" means a procedure by which an authoritative body gives a formal recognition that a body or person is competent to carry out specific tasks.

"Accredited certification agency" means a body, state or private, that has been authorized by the USDA Secretary of Agriculture to conduct certification activities as a certifying agent pursuant to the federal Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) upon implementation of the National Organic Program.

"Agricultural product/product of agricultural origin" means any product or commodity of agriculture, raw or proc-essed, including any commodity or product derived from livestock, that is marketed for human or livestock use or consumption.

"Allowed" means materials and practices which may be used for the production of organic crops, livestock and proc-essed products with no restrictions.

"Animal" means any cattle, sheep, goats, swine, poultry, equine animals, domesticated game, bees, fish, shellfish, or other nonplant life.

"Animal manure" means excreta of animals, together with whatever bedding materials are used to maintain proper sanitary and health conditions.

"Annual crop" means any crop that is harvested from the same planting during the same crop year and that does not produce crops in subsequent years.

"Antibiotic" means any of various substances, such as penicillin or streptomycin, that are used to inhibit or destroy the growth of microorganisms in the prevention and treatment of diseases.

"Application assistance" means the distribution, collection and review of application materials for completeness, including initiating contact with members to report missing paperwork and incomplete data.

"Application materials" means the application for organic certification including the organic plan, inspection report, and all other materials necessary to determine compliance with Iowa Code chapter 190C and this chapter.

"Authorized certification agent" means the department's organic agriculture bureau, which shall serve as a certification agent on behalf of and as authorized by the secretary of agriculture pursuant to Iowa Code section 190C.4(2).

"Breeding" means the selection of plants or animals to reproduce desired characteristics in succeeding generations.

"Broker" means an individual acting as an agent for others in negotiating a sales contract.

"Buffer zone" means a clearly defined and identifiable boundary area bordering an organic production unit that is established to limit inadvertent application or contact of prohibited substances from an adjacent area not under organic management.

"Certificate (organic)" means an annual written assurance which identifies the name and address of the entity certified, effective date of certification, expiration date of certification, certificate number, types of products and processes certified, name and address of certification agency, and standards to which the entity is certified.

"Certification" means the annual procedure by which an independent third party gives written assurance that a clearly identified production or processing system has been methodically assessed and conforms to organic standards.

"Certification seal" means a certification agency's logo, sign or mark which is used to identify products or operations certified as in compliance with the certification agency's standards.

"Certified organic farm" means a farm, or portion of a farm, or site where agricultural products or livestock are produced, that is certified by a certifying agency under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) as utilizing a system of organic handling under the same title.

"Certified organic handling operation" means any operation, or portion of any handling operation, that is certified by the certifying agent under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) as utilizing a system of organic handling described under the same title.

"Certified organic product" means a product which has been produced, processed or handled in conformance with Iowa Code chapter 190C and this chapter and as verified by the existence of a valid organic certificate.

"Certified organic wild crop harvesting operation" means a clearly identified wild crop harvesting site or operation that is certified by a certification agency and is in compliance with Iowa Code chapter 190C and this chapter.

"Commercially available" means the documented ability to obtain a production input or ingredient in an appropriate form, quality and quantity to be feasibly and economically used to fulfill an essential function in a system of organic farming, processing or handling.

"Commingling" means the physical contact between unpackaged or permeably packaged organic products and conventional products during production, processing, transportation, storage, or handling, of multi-ingredient products which contain both organic and conventional ingredients.

"Compost" means a stabilized product of controlleddecomposition of an appropriate mixture of nitrogen and carbon-bearing materials to produce humus as a soil conditioner or fertilizer.

"Conventional" means operations using synthetic chemical substances in farming operations including, but not limited to, petroleum-based fertilizers and pesticides.

"Conversion (transition)" means the act of implementing organic management practices in accordance with organic standards.

"Conversion period (transition period)" means the time between the start of organic management and certification of the crop or livestock production system as organic.

"Co-processor" means a company that does not take legal title to the ingredients or the final product which is manufactured for another party.

"Critical control point" means a point in a food process used by a certified organic handler when there is a high probability that improper control may cause, allow, or contribute to a hazard, a loss of organic integrity of the food, or to filth in the final food or decomposition of the final food.

"Crop" means a plant or part of a plant intended to be marketed as an agricultural product or fed to livestock.

"Crop rotation" means the practice of alternating annual with annual and perennial crops grown on a specific field in a planned pattern or sequence so that crops of the same species or family are not grown consecutively on the same field during two or more crop years.

"Crop year" means the normal growing season for a given crop.

"Cultural practices" means management-intensive methods which are used to enhance crop or livestock health or prevent weed, pest or disease problems without the use of external inputs including, but not limited to, selection of appropriate varieties and breeds; selection of appropriate planting sites; proper timing and density of plantings; construction of livestock facilities designed to optimize animal health; and proper stocking rates.

"Department" means the Iowa department of agriculture and land stewardship.

"Detectable residue level" means the level at which the presence of a pesticide, heavy metal, genetically engineered organism or other substance can be verified using current technology.

"Distributor" is a business that purchases product under its own name, usually from shippers, processors, or other distributors, and generally sells outside its local area.

"Drift" means the physical movement of prohibited pesticide, genetically engineered organisms, or fertilizer droplets or granules from the intended target site onto a certified organic field or farm, or portion thereof.

"Extract" means the act of producing a substance by dissolving the soluble fractions of a plant, animal or mineral in water or another solvent; or the product thereof.

"Farm" means an agricultural operation maintained for the purpose of producing agricultural products.

"Feed" means food for livestock, excluding mineral and vitamin supplements and feed additives.

"Feed additive" means a substance or combination of substances added to feed in micro quantities to fulfill a specific need, i.e., nutrients in the form of amino acids, minerals, and vitamins.

"Feed emergency" means a temporary unplanned shortage of certified organic feed due to conditions that are entirely beyond an operator's control.

"Feed supplement" means a feed used with another feed to improve the nutritive balance or performance of the total ration and intended to be:

1. Diluted with other feeds when fed to livestock;

2. Offered free choice with other parts of the ration if separately available; or

3. Further diluted and mixed to produce a complete feed.

"Fertilizer" means any substance containing one or more recognized plant nutrients which is used for its plant nutrient content and which is designed for use and claimed to have value in promoting plant growth except unmanipulated animal and vegetable manures or calcium and magnesium carbonate materials used primarily for correcting soil acidity.

"Fiber" means a natural agricultural filament, as of cotton, flax, hemp or wool, including material made of such filaments.

"Field" means an area of land identified as a discrete and distinguishable unit within a farm operation.

"Fogging" means the application of a liquid or solid insecticide which is vaporized by heat or atomization to penetrate free air space to kill pests.

"Food" means a material, usually of plant or animal origin, containing or consisting of essential body nutrients, as carbohydrates, fats, proteins, vitamins, or minerals, that is taken in and assimilated by an organism to maintain life and growth.

"Food additive" shall have the same meaning for purposes of this chapter as within the Federal Food, Drug and Cosmetic Act.

"Forage" means feed for livestock, often consisting of coarsely chopped leaves and stalks of grasses and legumes.

"Fumigation" means application of a gas, such as methyl bromide, to a sealed space to permeate areas and products to kill all pests, including eggs and larvae.

"Fungicide" means any substance that kills or inhibits the growth of fungi or molds.

"Genetically engineered/modified organisms (GEO/GMO)" means all organisms, and products thereof, produced through techniques in which the DNA has been altered in ways that do not occur under natural conditions or proc-esses. Techniques of genetic engineering/modification include, but are not limited to: recombinant DNA, cell fusion, microinjection and macro injection, encapsulation, gene deletion, introduction of a foreign gene and changing the position of genes. Genetically engineered organisms do not include organisms resulting from techniques such as breeding, conjugation, fermentation, hybridization, in-vitro fertilization and tissue culture.

"Handle" means to sell, process, package or store agricultural products.

"Handler" means any person engaged in the business of handling agricultural products, except such term shall not include final retailers of agricultural products that do not proc-ess agricultural products.

"Hazard" means a probability that a given pesticide will have an adverse effect on people or the environment in a given situation, the relative likelihood of danger or ill effect being dependent on a number of interrelated factors present at any given time.

"Herbicide" means a substance used to kill or destroy plants, especially weeds.

"Horticultural crops" means crops intended for human consumption, including vegetables, fruits, and herbs.

"Ingredient" means any substance, including a food additive, used in the manufacture or preparation of a food and present in the final product, although possibly in a modified form.

"Insecticide" means a substance used to kill insects.

"Inspection" means the on-site examination of production, handling and management systems to assess if performance of the operation is in compliance with prescribed organic standards.

"Inspector" means a person who performs inspections on behalf of a certification agency.

"Ionizing radiation (irradiation)" means radionuclides (such as cobalt-60 or cesium-137) capable of altering a food's molecular structure for the purpose of controlling microbial contaminants, pathogens, parasites and pests in food; preserving a food; or inhibiting physiological processes such as sprouting or ripening.

"Labeling" means any commercial message, written, printed or graphic, that is present on the label of a product, accompanies the product, or is displayed near the product, for the purpose of promoting its sale or disposal.

"Manure - green" means a crop that is incorporated into the soil for the purpose of soil improvement.

"Manure - raw" means animal excreta, possibly including bedding materials, which has not been composted or otherwise decomposed.

"Marketing" means holding for sale or displaying for sale, offering for sale, selling, delivering or placing on the market.

"National List" means a list of approved and prohibited substances that shall be included in the standards for organic production and handling as established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) in order for such products to be sold or labeled as organically produced under this title.

"Natural" means present in or produced by nature; nonsynthetic.

"Organic agriculture" means a holistic productionmanagement system which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity; emphasizes the use of management practices over the use of off-farm inputs; and utilizes cultural, biological and mechanical methods as opposed to synthetic materials.

"Organically produced" means an agricultural product that is produced and handled in accordance with Iowa Code chapter 190C and this chapter.

"Organic good manufacturing practices" means practices which are followed by processors and handlers of organic food products.

"Organic integrity" means the inherent qualities of an organic product which are obtained through adherence to organic standards at the production level, and which must be maintained from production to the point of final sale in accordance with organic standards, in order for the final product to be labeled or marketed as organic.

"Organic operator" means any person, firm or organization that produces, processes, handles or imports, with a view to the subsequent marketing thereof, agricultural products referred to as organic or organically grown.

"Organic plan" means a written plan for management of an organic crop, livestock, wild harvest, processing or handling operation that has been agreed to by the operator and the certification agency which specifies the steps necessary for the operation to be in compliance with organic standards.

"Packaging" means materials used to wrap, cover or contain an agricultural product, excluding wax applied directly to an edible surface of an agricultural product.

"Packer" means an operation which receives raw agricultural products and packs the products for shipping.

"Parallel production" means the simultaneous production, processing or handling of organic and conventional crops, livestock and other agricultural products of the same or similar (indistinguishable) varieties.

"Parasiticide" means a substance or compound used to kill parasites, either internal or external.

"Perennial crop" means any crop that can be harvested from the same planting for more than one crop year, or that requires at least one year after planting before harvest.

"Person" means an individual, group of individuals, corporation, association, organization, cooperative or other entity.

"Pest" means an injurious or unwanted plant or animal.

"Pesticide" means any substance which alone, in chemical combination, or in any formulation with one or more substances, is defined as a pesticide in the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. 136 et seq.).

"Planting stock" means any plant or plant tissue, including rhizomes, shoots, leaf or stem cuttings, roots or tubers used in plant production or propagation.

"Processing" means cooking, baking, heating, drying, mixing, grinding, churning, separating, extracting, cutting, fermenting, eviscerating, dehydrating, freezing, or otherwise manufacturing and includes the packaging, canning, jarring or otherwise enclosing of food in a container.

"Processing/on-farm" means the processing of organic agricultural products at the same location where they were produced.

"Processor" means a company which cooks, bakes, heats, dries, mixes, grinds, churns, separates, extracts, cuts, ferments, eviscerates, preserves, dehydrates, freezes, otherwise manufactures, packages, cans, jars, or otherwise encloses food in a container.

"Producer" means a person who engages in the business of growing or producing food or feed.

"Production" means all operations undertaken to grow or raise agricultural products on the farm, including initial packaging and labeling of the product.

"Prohibited" means a substance or practice which is not allowed to be used in any aspect of organic production, processing or handling.

"Records" means any information in written, visual or electronic form that documents the activities undertaken by producers, processors, and handlers demonstrating compliance with organic standard requirements.

"Repacker" means a company which receives products from growers or other sources, removes the products from the original container, may or may not sort the product, and repacks the product for resale either in the original container or in a different container.

"Residue standards" means 5 percent of EPA pesticide tolerance standards.

"Residue testing" means a test used to verify the presence of a specified level of a substance.

"Restricted (regulated)" means substances or practices which may be used by organic operators only by following prescribed variances, such as prior approval by the certification agency.

"Row crops" means crops planted and grown in rows for intensive summer production including, but not limited to corn, soybeans, sorghum, or sugar beets, primarily destined for livestock or processing for human consumption.

"Sanitize" means to adequately treat food-contact surfaces by a process that is effective in destroying vegetative cells of microorganisms of public health significance, and in substantially reducing numbers of other undesirable microorganisms, but without adversely affecting the product or integrity of the organic food.

"Seedling - organic" means an annual seedling grown using organic methods and transplanted to raise an organic agricultural product.

"Shipper" means a company which is located at growing or other shipping/intermediate points and sells products that it has grown or packed under its own name. A shipper may sell for the account of growers or other shippers.

"Slaughter stock" means any animal that is intended to be slaughtered for human consumption.

"Sludge (biosolids)" means semisolid residuals produced by municipal wastewater treatment processes.

"Soil amendment" means a substance applied to the soil to improve physical qualities or biological activity; complement or increase soil organic matter content; or complement or adjust a soil nutrient level.

"Split operation" means a farming operation that produces conventional crops or livestock which are visually distinguishable from the crops or livestock produced organically.

"Suspension of certification" means an action taken by a certification agency that results in the loss of ability of a farm, wild crop harvesting, processing or handling operation to market its products as organic.

"Synthetic" means a substance that is formulated or manufactured by a chemical process or by a process that chemically changes a substance extracted from naturally occurring plant, animal or mineral sources, except that such term shall not apply to substances created by naturally occurring biological processes.

"Treated" means the application of an active synthetic substance to seeds, planting stock or other inputs used in farming.

"Trucker" means a handling operation which transports products between farms, processing plants, other handling operations, or other facilities. A trucker does not open product containers or mix, combine, or otherwise handle the product while it is in the trucker's custody.

"Untreated" means seeds, planting stock or other inputs to which no active synthetic materials have been applied.

"Vaccine" means a diluted suspension of killed or live microorganisms, such as viruses or bacteria, incapable of inducing severe infection but capable when inoculated of counteracting the disease-causing organism.

"Wild harvested" means plants or portions of plants that are collected or harvested from defined areas of land which are maintained in a natural state and are not cultivated or otherwise managed.

21--47.3(190C) State certification agent. The department shall serve as certification agent on behalf of and as authorized by the secretary of agriculture pursuant to the authority of Iowa Code section 190C.4(2).

47.3(1) Certificate. The department shall issue a certificate verifying compliance with Iowa Code chapter 190C and this chapter to applicants of the state organic certification program that have been approved for certification, according to Iowa Code chapter 190C and this chapter, by the organic standards board and have paid required fees.

47.3(2) Expiration of certification. Certification will expire one year from date of issuance pursuant to Iowa Code section 190C.8(1)"a." A temporary extension of certification may be granted as deemed necessary by the department for a period not to exceed 90 days.

47.3(3) General certification requirements. In order to receive and maintain state organic certification from the department, producers, processors and handlers of organic agricultural products must apply for organic certification with the department and submit all required materials, comply with Iowa Code chapter 190C and this chapter, permit the department to access the operation and all applicable records as deemed necessary, comply with all local, state and federal regulations applicable to the conduct of such business, submit all applicable fees to the department pursuant to Iowa Code section 190C.5(1) and this chapter, and receive approval for certification by the organic standards board.

47.3(4) Application for state organic certification.

a. Application for state certification shall be completed and submitted with required application materials and fees to the department on forms furnished by the department. Applications must be received by the deadline date as published by the department in the application packet. Applications submitted to the department after published deadline date may be charged a late fee, and processing of such applications may be subject to delays or the applications may not be processed at all.

b. The department pursuant to Iowa Code section 190C.13 shall review all applications including applicant's organic plan and inspection report. The department shall forward completed application materials to the organic standards board review committee.

47.3(5) Organic plan. Producers, processors or handlers seeking organic certification from the department shall submit an organic plan to the department.

a. The organic plan must:

(1) Be agreed to by the operator and the department pursuant to Iowa Code section 190C.12(2)"c";

(2) Address and meet the requirements of Iowa Code chapter 190C and this chapter;

(3) Include methods used and those intended for use to ensure that the agricultural products are produced, handled, and processed according to requirements established by the department pursuant to Iowa Code chapter 190C and this chapter; and

(4) Be implemented and updated annually.

b. The department shall be informed of changes to the organic plan which may affect the conformity of the operation to the certification standards at any time during the certification process and after such certification is granted.

47.3(6) Inspections. The department, pursuant to Iowa Code section 190C.4(1)"a" and this chapter, shall provide annual inspections of operations seeking state organic certification as the secretary's authorized agent pursuant to the authority of Iowa Code section 190C.4(2). The inspector shall write and submit to the department a report of findings.

47.3(7) Records. Records shall be maintained according to subrule 47.5(1).

47.3(8) Certification review committee.

a. The certification review committee shall be composed of five board members, with the remaining members serving as alternates. Positions shall be representative of the total make-up of the board.

b. The certification review committee members shall not have a personal or professional interest in the result of the applicant's request for certification. A member having an interest shall not participate in any action of the certification review committee relating to the application. The certification review committee's procedures shall be reviewed as deemed necessary by the department.

c. The certification review committee members shall serve a one-year term.

d. If deemed necessary, a second certification review committee shall be established under these same guidelines.

47.3(9) Certificate of compliance.

a. The department shall provide to the successful applicant an official certificate recognizing compliance with Iowa Code chapter 190C and this chapter.

b. The state-certified party shall use certification only to indicate that products are certified as being produced, proc-essed and handled in conformity with the standards promulgated in Iowa Code chapter 190C and this chapter.

c. The state-certified party shall not use its state organic certification status in such a way as to bring the department into disrepute and shall not make any statement regarding such certification in a way that the department may consider misleading or unauthorized.

d. The state-certified party shall inform the department of any changes in the organic plan, such as production changes, or intended modification to the product(s) or manufacturing process which may affect the conformity of the operation to the certification standards. If such is the case, the certified party may not be allowed to release such products as certified organic bearing the state seal until the department has given approval to do so.

47.3(10) Use of state seal. For the promotion or sale of organic products, only those producers, handlers and processors certified as organic by the department are entitled to utilize the state seal attesting to state of Iowa organic certification. In addition, the statement "Produced (processed if processor) in accordance with the State of Iowa Organic Agricultural Products Act of 1998" may also be used on the label by state-certified operations. The seal and statement may be used together on the same label or either one may be used by itself. The seal and statement shall not be changed except to increase or decrease size as necessary. Where a party maintains organic certification with a private certification agency and additionally with the department, the private certification agency's certification seal may appear on the same label with the state of Iowa certification seal.

47.3(11) Document review. Parties who have attained organic certification from a private certification agency may at a later date during that same year request the department to provide a document review. The document review shall be limited to a specific quantity of product for the purpose of attaining the state organic seal for that sale only. All application records and the inspector's report must be submitted to the department from the private certification agency at the request of the certified party. The department and organic standards board shall review this request only after a copy of the party's organic certificate has been received by the department from the private certification agency under which organic certification has been attained. The department may inspect the organic products in question and any facet of the operation in addition to collecting various samples for analysis if deemed necessary. Document review approval shall result in the issuance of a state certification seal from the department only for the specific quantity for which the review was sought. A fee shall be charged to the party requesting the review and the fee shall be paid to the department prior to the issuance of the state certification seal.

47.3(12) Transfer of organic product. A certified operator, selling a quantity of organic agricultural product, shall document, according to department policy as approved by the board, that the product being sold originated from the certified operation. The document shall be maintained as part of required record keeping.

47.3(13) Testing. Residue testing shall be conducted by the department in the case of probable contamination, complaint or suspected fraud. The party in control of the site being tested shall pay the department for the cost incurred from testing only if it is confirmed that the residue level of the suspected contaminant exceeds 5 percent of the EPA tolerance level. Cost of negative test results shall be paid by the department.

47.3(14) Fees. Fees are established for application, inspection, and certification to support costs associated with activities necessary to administer this program pursuant to Iowa Code sections 190C.5(1) to 190C.5(3). The applicant shall submit all three fees to the department for the specific amount and at the appropriate time as specified in this rule.

a. Application fee. A fee of $50 shall accompany the application for certification. An additional late fee of $25 shall accompany renewal applications submitted after the published deadline date.

b. Inspection fee.

(1) The inspection fee shall be submitted before the inspection but only after the application has been reviewed and found to qualify for an inspection. This fee covers the cost of providing the inspection. If the actual cost of the inspection exceeds the amount, the applicant shall be required to pay the balance.

(2) Schedule of inspection fees.

1. On-farm inspection fee of $250 shall be paid by all production operations or combination of production operations.

2. On-farm-processing inspection fee of $150 shallbe paid by production operations seeking certification of product-related processing operation. Simple washing, drying and packaging shall not constitute processing for purposes of fee assessment.

3. An inspection fee of $300 shall be paid by processor, handler and broker operations.

c. Certification fees.

(1) Certification fees may be adjusted annually pursuant to Iowa Code section 190C.5(2). The certification fee provides the operation with one year of state organic certification. Crops certified but not sold during the year of certification may be sold as certified as long as storage and handling of such crops are maintained according to Iowa Code chapter 190C and this chapter. The certification year shall begin the date that certification is granted.

(2) Certification fees shall be paid in addition to the application fee and inspection fee. Certification fees are due and payable after certification is granted to the applicant. However, the certificate will be held and no transaction certificates will be issued until full payment is made to the department.

(3) Schedule of certification fees.

1. Vegetables, herbs and spice crops--field production. Vegetable, herbs and spice crops are assessed a fee of $30 per acre with a minimum of a ½-acre plot size. Production area shall include actual production acres, cover crop and other rotation acres and required buffer zones.

* Vegetables, herbs and spice crops--greenhouse production.

Less than 1,000 square feet $20

1,001 to 3,000 square feet 40

3,001 to 5,000 square feet 60

Each additional 2,000 square feet 20

2. Tree crops. Fees are assessed on a per acre basis.

Fruit and nut crops $15

3. Farm crops (row crops). Fees are assessed on a per acre basis for each crop with a minimum of 50 cents per acre and a maximum of $10 per acre. Field production acres shall include actual production areas, cover crop and other rotation acres.

Corn $ 3.20

Popcorn 3.50

Soybeans 5.20

Wheat 1.30

Barley 1.20

Oats 1.00

Rye .90

Flax 1.70

Spelt .90

Buckwheat .60

Hay (alfalfa, clovers, grasses) .70

Sunflowers 2.00

Sorghum 1.50

Sudex 1.00

Pasture .50

Unlisted crops 1.50

4. Dairy, livestock and poultry. Fees are assessed on a per head basis for larger species and a per hundred head basis for smaller species.

Livestock - Dairy

Cattle $14.00

Goats 2.00

Sheep 2.00

Livestock - Beef

Breeding stock $ 2.00

Slaughter cattle 5.00

Feeder cattle 2.00

Baby calves .50

Livestock - Swine

Breeding stock $ .50

Feeder pigs .50

Slaughter hogs 1.00

Livestock - Sheep and Goats

Breeding stock $ .50

Feeder stock .50

Slaughter stock 1.00

Fiber stock 2.00

Poultry (per hundred)

Layers $ 20.00

Slaughter chickens 5.00

Slaughter turkeys 15.00

5. Apiculture. Fees are assessed on a per colony basis.

Each colony $.50

6. Aquaculture.

Brood stock $ .50 per head

Eggs through stockers .25 per thousand head

Food size and above .05 per 100 pounds

7. On-farm processing. This fee schedule shall apply to those operations processing products within the farm unit. Fees are based on gross organic sales from previous year or the projected estimated gross organic sales if first year of organic sales.

Estimated sales

$0 - $100,000 $100

$100,001 - $250,000 $400

$250,001 - $500,000 $1,000

$500,001+ Refer to fee processor, broker,
handler schedule

8. Processor, broker and handler. Fees are based on gross organic sales from previous year or the projected estimated gross organic sales if first year of organic sales.

Estimated sales

$0 - $250,000 $ 750

$250,001 - $500,000 $1,500

$500,001 - $1 million $3,000

$1,000,001 - $2 million $5,000

$2,000,001 - $3 million $7,000

Each additional million $2,000

21--47.4(190C) Regional organic associations (ROAs). With approval by the board, the department may register and authorize a regional organic association to assist the organic standards board by providing application assistance to its members requesting application assistance.

47.4(1) Registration and authorization. Regional organic associations must be registered and authorized by the department in order to assist the organic standards board pursuant to Iowa Code section 190C.6.

a. Registration. To register with the department, the regional organic association must:

(1) Maintain a minimum of 50 members;

(2) Sign and submit to the department a regional organic association declaration as provided by the department;

(3) Submit, to the department, bylaws and ongoing changes to the bylaws;

(4) Submit verification of regional organic association liability insurance; and

(5) Successfully register annually with the department.

b. Authorization. For authorization to be granted, the following requirements must be met:

(1) The regional association shall sign a memorandum of understanding with the department specifying functions to be performed by the association related to application assistance; and

(2) The regional association shall receive from the department a letter of authorization to provide application assistance upon approval by the organic standards board.

47.4(2) Functions.

a. ROAs, reviewing member application materials for submission to the department, may:

(1) Provide to the department and the board a summary of the member's application;

(2) Identify any unresolved shortcomings in the application; and

(3) Indicate if the application appears to meet the Iowa organic standards promulgated in Iowa Code chapter 190C and this chapter.

b. Requirements.

(1) Application assistance provided by ROAs shall be conducted by association staff or association board members; and

(2) Application materials received by the ROA for submission to the department shall be forwarded along with the summary to the department. The application fee for state organic certification shall be paid with a check made payable to the department by the individual member applying for state certification. The check shall be submitted with the application.

47.4(3) Prohibitions.

a. ROA staff or ROA board members providing application assistance for their members shall have no personal or commercial interest in the outcome of a member's application for state certification.

b. ROAs shall not amend member documents prior to submitting them to the department.

c. ROAs shall not be paid by the department for providing application assistance services to their members.

21--47.5(190C) Organic certification. Producers, processors and handlers of agricultural products labeled, sold, or advertised as organic in the state of Iowa must be certified, unless otherwise stated in this chapter, by the department or an accredited private certification agency as defined in rule 47.2(190C) and must comply with Iowa Code chapter 190C and this chapter.

Parties certified by a private certification agency are not required to certify additionally with the department. However, individuals seeking certification only from a private certification agency are not relieved from the responsibility to understand and comply with Iowa Code chapter 190C and this chapter. In any instance, where a particular organic standard held by a private certification agency differs from a standard held by the state, the operator must comply with the state standard if it is more stringent.

47.5(1) Records.

a. Records shall include, but not be limited to, documentation of inputs, practices and procedures utilized in the production, processing and handling of organic agricultural products as well as yield, storage and sales information. Additional records may be required as deemed necessary by the department to determine compliance with Iowa Code chapter 190C and this chapter.

b. Records and inventory control procedures must be detailed enough to trace all raw materials from the supplier, through the entire plant process, and on through the distribution system to the retailer, using lot numbers.

c. Records must be maintained for five years and be made available to the department upon request.

d. The certified party shall keep a record of all complaints made known to them relating to a product's compliance with requirements to the relevant standard and to make these records available to the department upon request. The certified party shall take appropriate action with respect to such complaints and any deficiencies found in products or services that affect compliance with the requirements for certification, and all such actions shall be documented and available upon request by the department.

47.5(2) Private certification agencies. Accredited private certification agencies as defined in rule 47.2(190C) are recognized by the department as providers of organic certification in the state.

a. Certification standards utilized by such agencies to certify Iowa producers, processors and handlers shall not be in violation of Iowa Code chapter 190C and this chapter.

b. A memorandum-of-understanding document, available from the department, shall be signed by the private certification agency intending to provide organic certification services in the state and submitted to the department.

47.5(3) Parties exempted from organic certification.

a. Exempted parties.

(1) Producers, handlers and processors who receive $5000 or less in annual gross income from the sale of agricultural products shall be exempt from organic certification.

(2) Final retailers of agricultural products who do not process agricultural products are exempted from organic certification in the state of Iowa.

b. The exempted producer, processor or handler selling agricultural products as organic shall demonstrate compliance with Iowa Code chapter 190C and this chapter by implementation and documentation of the following measures:

(1) Submit to the department a signed Exempt Party Declaration form, as provided by the department, attesting to knowledge of and compliance with Iowa Code chapter 190C and this chapter;

(2) Submit a $10 processing fee with the declaration to the department;

(3) Develop, implement and annually update an organic farm, handling or processing plan, in accordance with Iowa Code chapter 190C and this chapter. This organic plan need not be submitted to the department but made available upon request if deemed necessary by the department;

(4) Maintain records adequate to trace an organic product from production site to sale for consumption. Records must be kept for five years.

c. Exempted parties marketing noncertified organic agricultural products.

(1) Exempted parties that have submitted the declaration form attesting to compliance with Iowa Code chapter 190C and this chapter shall be permitted to market noncertified organic products directly to consumers and direct sales outlets such as roadside stands, farmers markets and community supported agriculture (CSA) consumer subscription programs.

(2) Exempted parties that wish to market directly to retail outlets may do so by providing copies of the declaration form to the individual retail outlet. In no instance shall non-certified organic products be marketed through exporters, wholesalers, brokers, processors, or retail chain warehouses. The exempt party may display the declaration form at the place of sale.

47.5(4) Inspections.

a. Scheduled. Producers, processors and handlers applying for organic certification must be verified annually through an on-site inspection and comprehensive review of the operation by an accredited certification agency. Individuals seeking certification shall make all necessary accommodations for the conduct of the evaluation, including provision for examining records and access to all areas, and personnel for the purposes of evaluation and resolution of complaints. The evaluation may include, but is not limited to, testing, inspection, assessment, surveillance, and reassessment.

b. Unscheduled. All parties making an organic claim may be subject to an unscheduled on-site inspection, review of records and sampling if deemed necessary by the department pursuant to Iowa Code sections 190C.4(2), 190C.22(2) and 190C.22(3) to verify compliance.

47.5(5) Organic label. All organic products produced, processed and labeled in Iowa must meet applicable state and federal labeling regulations and organic standards as promulgated in Iowa Code chapter 190C and this chapter.

47.5(6) Enforcement and investigations. The department and the attorney general shall enforce Iowa Code chapter 190C and this chapter pursuant to Iowa Code section 190C.21.

47.5(7) Complaints. Any person may submit a written complaint to the department regarding a suspected violation of Iowa Code chapter 190C and this chapter pursuant to Iowa Code section 190C.22(2). Such signed complaints shall be submitted on the required form provided by the department upon request.

47.5(8) Disciplinary action. Intentional fraud or inadvertent violation of Iowa Code chapter 190C and this chapter may result in suspension of certification or decertification. If inadvertent violations are not corrected as required by the certification agency or in the case of fraud, and the fraudulent activities are substantiated, the operation may be decertified. Upon suspension, the certified party must discontinue the use of all labels or advertising materials that contain any reference to organic certification. In addition, in the case of decertification, the decertified party shall return the organic certificate to the certification agency.

47.5(9) Appeals. Appeal procedures are established pursuant to Iowa Code section 190C.3(6) under 21--Chapter 2. The organic standards board shall have final agency action, subject to the parameters of Iowa Code chapter 17A. The appeals committee shall be comprised of board members who did not serve on the certification review committee for the particular case in question and shall have no conflict of interest in the matter. Procedures and restrictions concerning the hearing of appeals shall apply.

a. Written appeal. Except as specifically provided in the Iowa Code or elsewhere in the Iowa Administrative Code, a person who wishes to appeal an action or proposed action of the department which adversely affects the person shall file a written appeal with the department within 30 calendar days of the action or notice of the intended action. A written notice of appeal shall be considered filed on the date of the postmark if the notice is mailed. The failure to file timely shall be deemed a waiver of the right to appeal. Appeal will first go to the certification review committee. The certification review committee will determine if the party's claim has sufficient merit to overturn the earlier denial in a timely manner. If this is not the case, however, the appeal will be forwarded from the certification review committee to the appeals committee.

b. Records. Records of all appeals, complaints and disputes, and remedial actions relative to certification shall be maintained by the department for a minimum of three years. Records shall include documentation of appropriate subsequent action taken and its effectiveness.

21--47.6(190C) Crops.

47.6(1) Crop production requirements. Prohibited materials, including prohibited fertilizers and pesticides, may not be used in the production of organic crops pursuant to Iowa Code chapter 190C and this chapter.

47.6(2) Inputs.

a. All materials used in the production, processing and handling of organic agricultural products must be listed on the National List and used in accordance with Iowa Code sections 200.5 and 206.12 and this chapter.

b. The use of synthetic chemicals, except as otherwise provided in this rule, is prohibited.

c. Genetically modified crops are prohibited in organic crop production.

47.6(3) Split operations. Split operations shall be allowed but segregation plans and applicable logs must be followed and documented for organic and conventional crops. The operation must maintain, but not be limited to, the following documents and logs addressing the following procedures: cleaning, spraying, purging, separate storage and separate transportation. Appropriate physical facilities, machinery and management practices shall be established to prevent commingling of conventional and organic products or contamination by prohibited substances.

47.6(4) Buffer zone.

a. Requirements.

(1) Buffer zones, a minimum of 30 feet, must be maintained between certified organic crops and areas treated with prohibited substances. A vegetative solid-stand windbreak a minimum of 15 feet tall may be substituted for a 30-foot buffer zone.

(2) If crops are grown in this buffer zone, such crops shall not be labeled sold or in any way represented as organic.

(3) Crops harvested from buffer zones shall be kept separate from organic crops, and appropriate designated storage areas shall be clearly identified and records maintained to sufficiently identify the disposition of conventional product.

b. Recommendations.

(1) Planting of windbreaks and hedgerows is encouraged to help reduce spray drift from neighboring farms and wind damage to crops.

(2) The producer should notify neighbors, county roadside management officials, railroads, utility companies and other potential sources of contaminants. The producer should provide such individuals with maps of organic production areas, request individuals not to spray adjacent areas, and request to be informed if prohibited materials are applied to land adjacent to organic production areas.

47.6(5) Testing. Residue testing shall be conducted by the certification agency or its representative in the case of probable contamination. Residue standards are 5 percent of EPA pesticide tolerance standards.

47.6(6) Drift.

a. The department's organic agriculture bureau shall be notified by the party in control of the site of suspected drift incidences onto certified organic land or land which is under consideration for organic certification.

b. In the case of drift, the affected party may file a complaint under Iowa Code section 206.14 with the department's pesticide bureau.

47.6(7) Conversion to organic. There shall be no use of prohibited materials for three years prior to the harvest of the first organic crop pursuant to Iowa Code section 190C.12(2)"b" and this chapter.

47.6(8) Organic farm plan.

a. Requirements.

(1) Producers of organic agricultural products, including wild crops and specialty crops, shall complete and submit an organic farm plan to the certification agency.

(2) The organic farm plan must be approved by the certification agency and updated annually.

(3) The certification agent shall be notified of all proposed changes to the organic farm plan.

(4) The organic farm plan must address the key elements of organic crop production: soil and crop management, resource management, crop protection, and maintaining organic integrity through growing, harvesting, and postharvest operations.

(5) The plan must list total acreage of the operation and the types of crops grown, a history of crop practices and inputs, and current and intended practices.

(6) The plan shall include a description of practices that provide physical barriers, diversion of runoff, buffer areas, notification of neighbors, posting of borders or other means to prevent the application of prohibited substances to the land on which organically produced crops are grown.

(7) The producer shall submit the organic farm plan questionnaire provided by the certification agent and include adequate maps of all parcels farmed under the producer's control, with five-year histories of all parcels. The maps shall identify plots or fields by identification number and acreage size.

(8) The questionnaire shall be used to report methods and materials used in the production of organic products.

(9) The applicant shall specify conversion plans for conventional fields in transition to organic including a rotation plan for the upcoming three years.

(10) Adjoining land shall be identified and conventional or organic practices of the adjoining party noted.

b. Recommendations.

(1) A commitment to long-term soil improvement and fertility should be reflected in the plan; for example, winter cover crops are recommended.

(2) Postharvest procedures, and handling and storage equipment should be addressed.

47.6(9) Biological diversity. Biological diversity should be established, maintained and enhanced through the use of practices that are appropriate to the site and type of operation. Where possible and practical, preservation of nonagricultural areas, such as hedgerows, native prairies, wetlands and woodlands, is encouraged.

47.6(10) Rotations. For the production of annual crops, rotations are required for soil improvement, and disruption of weeds, insects, diseases and nematodes. A crop rotation including, but not limited to, sod, legumes, or other nitrogen fixing plants, and green manure crops shall be established.

a. Annuals. The same annual crop, including horticultural crops, shall not be planted in consecutive years on the same land. Horticultural crops and row crops may not be planted on the same land for more than four out of five years. It is recommended, however, that row crops not be planted on the same land for more than four years out of a six-year period.

b. Perennials. Perennial systems shall include a plan for biodiversity in the system, including the use of cover crops, mulches, or grass cover. At the end of a perennial crop life cycle that exceeds four years, an annual cover crop must be planted, prior to planting another perennial crop. Replacement of individual stock is permitted without following replaced individual stock with a cover crop. For a perennial crop with a life cycle of less than four years, a cover crop must be planted at least once every five years. Permanent pastures are exempt from rotation standards.

c. Exemption. Rotation of crops may be affected by weather and other unforeseen circumstances. In the case where such circumstances cause a rotation to be out of compliance with this rule, the new rotation plan shall be approved by the certification agency prior to the implementation of the proposed changes.

47.6(11) Tillage and cultivation. Tillage and cultivation implements and practices shall be selected and used in a manner that does not result in long-term degradation of soil physical quality or result in excessive erosion.

47.6(12) Soil fertility and crop nutrient management. Plant or animal materials may be used to replenish soil organic matter content, provide essential crop nutrients and enhance soil biological activity. It shall be used in a manner that does not significantly contribute to water contamination or soil contamination or degradation. It is recommended that plant and animal materials be attained from an organic source if possible. If unavailable, such materials may be attained from a conventional source. Conventional animal materials should be composted if possible; otherwise, treated as raw manure.

a. Compost. The use of compost is permitted. Manure which has been composted shall not be subject to the raw manure restrictions stated in this rule. This may be achieved by composting for a minimum of six weeks, during which compost piles are managed so that they reach 140 degrees F for a minimum of three days.

b. Raw manure. To avoid runoff, raw manure should not be applied when the soil is saturated, frozen or covered with snow. Raw manure must be applied at least 120 days prior to harvest for crops grown for direct human consumption except for tree crops and crops of which the edible portion is covered by a husk, pod or shell, in which case raw manure could be applied up to 90 days prior to harvest.

c. Amendments. Soil amendments, including minerals, are permitted if they are part of the organic farm plan and are listed on the National List in accordance with Iowa Code sections 200.5 and 206.12 and this rule.

d. Mulch. The use of plant materials as a mulch is permitted. Plastic or synthetic mulch is permitted only if the mulch is completely removed from the field and properly stored or disposed in proper facilities at the end of each growing or harvest season. Plastic mulch that photo-degrades is prohibited.

47.6(13) Seeds, seedlings and plant stock.

a. Seeds. Seed for organic production shall be sourced in the following order of preference, based on availability:

(1) Organically grown seeds;

(2) Untreated conventionally grown seeds;

(3) Seeds treated with substances allowed on the National List; and

(4) Other treated seeds, with documented evidence of the lack of commercially available untreated seed.

b. Pelletized seed. Pelletized seed is allowed unless it contains prohibited substances.

c. Seedlings. Annual seedlings from a conventional source shall be prohibited except in case of emergency.

d. Perennial transplants and planting stock. One year of organic management is required prior to harvest for perennial plant material and planting stock from a conventional source.

e. Prohibited.

(1) Plastic polymer pelletization of seed shall be prohibited.

(2) All genetically engineered seed, seedlings, and planting stock are prohibited.

f. Good-faith efforts to locate and develop a source of organic seeds, seedlings and planting stock shall be made and documented. Documentation shall demonstrate progress in eliminating conventional transplants and treated seeds from the operation.

47.6(14) Pest management. The prevention or control of pests, weeds and diseases in crops may include, but not be limited to, crop rotation, soil fertility management practices, sanitation methods, cultural practices, seed and plant selection, mulch, beneficial insects, mechanical or physical controls, traps, lures, mating disruption and repellants. All materials used for pest management shall be an approved substance on the National List. The anticipated practices to prevent or control pests, weeds and diseases shall be described in the organic farm plan. A follow-up plan shall be maintained to document actual practices used.

47.6(15) Water.

a. Irrigation. Prohibited materials shall not be added to irrigation water. Water that is known to contain prohibited materials resulting from unavoidable residual environmental contamination shall be tested. If test results exceed tolerance levels established in this chapter, the water cannot be used for irrigation of organic crops. Prohibited substances cannot be used to clean irrigation systems.

b. Postharvest handling. Water used to wash crops must meet criteria of the Safe Drinking Water Act. Chlorine use shall not exceed maximum residual disinfectant limit so established at 4 mg/L.

47.6(16) Specialty crops.

a. Greenhouse production. Greenhouses operated as in-ground or permanent soil systems or bench systems are permitted and shall comply with Iowa Code chapter 190C and this chapter including the use of materials for pest management, rooting hormones and plant production, which must be listed as allowed on the National List. No potting soils, soil receptacles, water and greenhouse structural materials shall contain prohibited materials. Plants and soil shall not come into contact with soils treated with prohibited substances. Light sources for greenhouses may be natural or artificial.

b. Mushrooms. Organic mushrooms may be grown indoors or outdoors. Organic mushrooms shall be produced, harvested and handled according to Iowa Code chapter 190C and this chapter. All sources of spawn and substrate shall be documented. Noncomposted substrate shall be organically produced. Spawn may be cultured on conventional grain, but prohibited materials shall not be applied during spawn production.

c. Sprouts. Sprouts may be grown in soil or without soil. Seeds grown and sold as sprouts must be from an organic seed source. Water used for organic sprout production must meet criteria of the Safe Drinking Water Act. Chlorine use shall not exceed maximum residual disinfectant limit so established at 4 mg/L. Seed used for sprouts may be treated with the following materials and methods to prevent food-borne pathogens: heat, hydrogen peroxide and if required by applicable government agency, soaking in water solution of chlorine not to exceed 2000 mg/L, to be followed by a five-minute rinse in potable water.

21--47.7(190C) Livestock.

47.7(1) Organic livestock production requirements. Prohibited materials may not be used in the production of livestock and livestock products pursuant to Iowa Code chapter 190C and this chapter. All substances used in the production, processing and handling of livestock and livestock products must be certified organic or listed as allowed on the National List and used in accordance with this chapter.

47.7(2) Prohibited.

a. Genetically engineered organisms are prohibited in the breeding or production of organic livestock.

b. Livestock shall not be transferred between organic and conventional management for the purpose of circumventing any provision of Iowa Code chapter 190C and this chapter.

47.7(3) Split operations. Split operations shall be allowed, but segregation plans and applicable records must be followed and documented. All animals in both the conventional and organic herds shall be uniquely identified, and detailed records on the origin and production history of each animal must be kept. In poultry production, conventional and organic flocks must be kept in separate, clearly marked facilities. Each storage facility for feed, grain, or any other controlled input must be clearly marked "conventional" or "organic." Appropriate physical facilities, machinery and management practices shall be established to prevent commingling of conventional livestock and livestock products with organic livestock and livestock products or contamination by prohibited substances.

47.7(4) Pasture.

a. Requirement. Pastures must be managed to minimize risk of contamination by prohibited substances, to areas grazed by livestock, from adjacent areas not under organic management.

b. Recommendation. The establishment of livestock fence located an appropriate distance inward from the pasture border to prevent border grazing or a solid-stand windbreak along the pasture border is recommended.

c. Permissible.

(1) Livestock may graze cropland buffer zones only if an entire field is opened to grazing, as when livestock are allowed to glean a field after harvest.

(2) Livestock may graze up to a pasture border only if no more than 10 percent of the total pasture, accessible for grazing, is contiguous to areas treated with prohibited substances. The contiguous area is calculated as 30 feet multiplied by the length of the pasture perimeter that borders an area treated with prohibited substances.

d. Disqualification. Evidence that the pasture has been contaminated with a prohibited substance may lead to disqualification of livestock or offspring, or both, grazing the affected pasture, or may require the establishment of a suitable buffer zone, or may require the removal of the livestock from the pasture.

47.7(5) Organic livestock plan. Producers of organic livestock and livestock products shall complete and submit an organic livestock plan to the certification agency.

a. The organic livestock plan must be approved by the certification agency and updated annually.

b. The plan shall list number and type of livestock.

c. The plan shall include a description of practices implemented in the production of livestock related to origin of livestock, feed, supplements, pasture, shelter, water, health care, living conditions, physical alterations and reproduction.

d. The producer shall submit the organic livestock plan questionnaire provided by the certification agent. The producer shall submit adequate maps of areas and buildings used for livestock. The certification agent shall be notified of all substantial changes to the organic livestock plan.

47.7(6) Origin of livestock. Livestock born on an organic farm must be raised according to Iowa Code chapter 190C and this chapter from birth unless otherwise stated in this rule. Livestock transitioned to organic status must be continuously managed according to Iowa Code chapter 190C and this chapter unless otherwise stated in this rule.

a. Poultry. Poultry from which meat or eggs will be sold as organic must be raised according to Iowa Code chapter 190C and this chapter beginning no later than the second day of life and from that point on.

b. Slaughter stock. All slaughter stock must be raised according to Iowa Code chapter 190C and this chapter and must be the progeny of female breeder stock that has been under organic production methods from the last one-third of gestation.

c. Dairy livestock: cows and other dairy livestock. Dairy replacement stock must be raised according to Iowa Code chapter 190C and this chapter from the time such stock are brought onto an organic farm and for not less than 12 months immediately prior to the sale of milk or milk products from such stock labeled as organic.

d. Livestock used for the production of nonedible livestock products. Livestock from which skin, fur, feathers, fibers and all nonedible products are obtained shall be produced according to Iowa Code chapter 190C and this chapter from birth or for 12 months prior to harvest of the nonedible product when such livestock is not raised under organic management from time of birth or hatching.

47.7(7) Feed requirements.

a. All certified organic livestock shall be fed certified organically produced and handled feeds according to the animal's stage of production. Any feed or forage purchased off farm must be certified as meeting the requirements of Iowa Code chapter 190C and this chapter. Pasturelands on which livestock are grazed or pastured shall be certified, and the organic plan shall contain management measures designed to enhance soil fertility and rangeland health as approved by the certification agency.

b. Access to managed pasture shall be provided for ruminant animals. Exceptions shall only be allowed for:

(1) Inclement weather;

(2) Conditions where the health, safety or well-being of the animal or a person could be jeopardized;

(3) The protection of plant, soil or water quality; or

(4) Animal's stage of production.

c. When pasture is not available to ruminant animals for any of the above reasons, certified organic forage must be made available.

47.7(8) Feed emergency.

a. To qualify for an emergency exemption from organic feed requirements, the operator must:

(1) Establish an emergency feed plan in the organic livestock plan;

(2) Document efforts made to obtain organic feed in advance of the depletion of feed reserves;

(3) Document that the feed emergency is regional in scope; and

(4) Receive approval from the certification agency.

b. In the case of a feed emergency, the operator must notify the certification agency of the emergency and shall obtain feed based on the following order of preference:

(1) Certified organic feed;

(2) Noncertified organic feed;

(3) Feed grown under organic management for two years;

(4) Feed grown under organic management for one year;

(5) Conventional feed.

c. Transitional or conventional feed should be fed first to animals furthest away in time from production of products intended to be sold as organic.

47.7(9) Prohibitions. The following substances or methods are prohibited for the feeding of organic livestock:

a. Any synthetic substance that is not listed as allowed on the National List for organic livestock.

b. The use of the following for the purpose of stimulating the growth or production of livestock is not allowed:

(1) Hormones or growth promoters whether implanted, injected, or administered orally;

(2) Antibiotics or other animal drugs; and

(3) Synthetic amino acid additives, vitamins or trace elements fed above levels needed for adequate nutrition.

c. Plastic pellets for roughage.

d. Manure refeeding.

e. Feed formulas containing urea.

f. Any feed made from meal that has been extracted by the use of synthetic solvents, e.g., hexane.

g. Medicated feeds and medicated milk replacers.

h. Synthetic silage and forage preservatives.

i. Livestock slaughter by-products fed to mammals.

j. Genetically engineered organisms, including their derivatives, in feed, feed supplements or feed additives.

47.7(10) Feed additives and supplements.

a. Feed additives fed to organic livestock shall meet the following requirements:

(1) Feed additives that are nonsynthetic shall be from any source, provided that the additive is not listed as prohibited on the National List;

(2) Synthetic feed additives must be listed as allowed for organic livestock on the National List;

(3) Any source of feed salt is allowed;

(4) Natural minerals, such as limestone, dolomite, marl, magnesium oxide, greensand and kelp are allowed; and

(5) Synthetic vitamins and trace elements, such as selenium, that are listed as approved for livestock on the National List may be fed to livestock under organic management only as necessary for the purpose of fulfilling the nutritional requirements of the livestock.

b. Feed supplements fed to organic livestock shall be certified organically produced.

47.7(11) Livestock health care. Producers must maintain a production environment that promotes livestock health and limits livestock stress.

a. Organic livestock producers shall be required to take all necessary steps to maintain the health of their animals. This may include, but is not limited to:

(1) Balanced, complete nutrition;

(2) Selection and breeding of animals for resistance and immunity to disease;

(3) Proper sanitation and hygiene;

(4) Exercise, freedom of movement, and reduction of stress;

(5) Pasture management;

(6) Quarantine of incoming stock;

(7) Vaccinations;

(8) Administration of veterinary biologics, vitamins and minerals.

b. Livestock producers are required to manage livestock to reduce the risk of parasite infestation through cultural and biological practices, which may include, but are not limited to:

(1) Quarantine and fecal examination for all incoming stock;

(2) Pasture rotation and management;

(3) Periodic fecal examinations and culling seriously infested livestock;

(4) Vector and intermediate host control;

(5) Release of beneficial organisms; and

(6) Natural dusting wallows for poultry.

c. In the event of sickness or infestation with parasites, organic producers are permitted to use the following:

(1) Nonsynthetic substances that are not listed as prohibited on the National List; or

(2) Synthetic substances that are listed as allowed for organic livestock production on the National List.

d. Restricted. As part of the organic management plan, synthetic parasiticides may be used in:

(1) Slaughter or fiber sheep up to three months prior to slaughter or shearing;

(2) Breeder stock, but not during the last third of gestation if progeny is to be sold as organic;

(3) Dairy stock more than one year prior to lactation; or

(4) Livestock which produce nonedible products at least one year prior to harvest of the nonedible products.

e. Any use of a synthetic medication or parasiticide shall require a written justification for use and shall be recorded in the operation's organic livestock plan.

f. Any appropriate medication must be used to restore an animal to health when methods acceptable to organic production fail. If a prohibited material is used on an animal, that animal cannot be used thereafter for organic production or be sold, labeled or represented as organic until such animal meets requirements of Iowa Code chapter 190C and this chapter.

g. The following livestock health care substances and methods are prohibited:

(1) Synthetic parasiticides which are:

1. Used in the production of hogs or beef cattle for slaughter; or

2. Administered to lactating animals, if the milk or progeny is to be sold as organic.

(2) The use of antibiotics in breeder stock in the last third of gestation or in slaughter stock or dairy stock;

(3) Any synthetic substance, including any medication, antibiotic or parasiticide, that is not listed as allowed for organic livestock production on the National List;

(4) Any nonsynthetic substance that is listed as prohibited on the National List;

(5) Subtherapeutic doses of any antibiotic;

(6) Routine use of synthetic parasiticides; and

(7) Administration of any medication, other than vaccinations, in the absence of illness, including hormones for breeding purposes.

h. The action of a producer to withhold treatment to maintain the organic status of an animal which results in the otherwise avoidable suffering or death of an animal shall be grounds for decertification.

47.7(12) Living conditions. Certified organic livestock operations shall be based on a system that maximizes animal health and allows for the natural behavior of animals.

a. Such a production environment must include the following:

(1) Access to shade, shelter, water, fresh air, the outdoors, and direct sunlight suitable to the species, the stage of production, the climate, and the environment;

(2) Adequate clean and dry bedding, appropriate to the husbandry system, provided that if the bedding is typically consumed by the animal species, it complies with the organic feed standard; and

(3) A housing design which provides for an animal's natural maintenance, comfort behaviors and the opportunity to exercise; temperature levels, ventilation and air circulation suitable to the species; the reduction of potential for livestock injury; and free access to a floor surface that is predominantly grass, shavings, dirt or other nonartificial bedding.

b. Proper livestock health management may include periods of time when livestock are housed indoors. Temporary indoor housing may be justified for:

(1) Inclement weather;

(2) Conditions where the health, safety or well-being of the animal or persons could be jeopardized;

(3) The protection of plant, soil or water quality; or

(4) Animal's stage of production.

c. The following living conditions are prohibited for organic production:

(1) Continuous confinement; and

(2) Cages for poultry.

47.7(13) Manure management. Manure management practices used to maintain any area in which livestock are housed, pastured or penned shall be implemented in a manner that:

a. Minimizes soil and water degradation;

b. Does not significantly contribute to contamination of water by nitrate and bacteria, including human pathogens;

c. Optimizes recycling of nutrients; and

d. Does not include burning or any practice inconsistent with organic standards.

47.7(14) Physical alterations. Physical alterations must be conducted for the animal's ultimate benefit or identification, and these practices shall be administered in ways that minimize pain and stress.

a. Restricted. Beak trimming of poultry may be done only if the following conditions are met:

(1) Beak trimming may be done no later than ten days after hatching;

(2) No more than one-third of the beak may be removed;

(3) Beak trimming may be done only for protection of the flock; and

(4) Beak trimming may be done only in conjunction with good organic management practices as defined by these standards.

b. Prohibited. The following physical alterations are not allowed:

(1) Tail cutting, with the exception of sheep; and

(2) Wing burning.

47.7(15) Reproduction. Natural service is preferred. Artificial insemination is allowed. Embryo transfer and cloning are prohibited.

47.7(16) Records.

a. Records must be maintained which permit tracing the sources and numbers of all animals, and sources and amounts of all feeds, feed supplements, feed additives and medications.

b. Organic livestock must be traced from birth to slaughter.

c. Livestock health records which show all health problems and the practices and materials used for treatment must be maintained.

d. With the exception of poultry and other small animals, if animals are not individually identified by numbered tags, then each animal that is treated with a veterinary drug must be clearly identified with a tag that corresponds to a record of the material used and date of treatment.

e. Poultry or rabbits and other small animals that are not identified by individual tags are to be tracked by lots or other applicable units, wherein each animal has received the same inputs and treatment.

47.7(17) Slaughter.

a. Animal stress and accidental mortality must be minimized during loading, unloading, shipping, holding and slaughter.

b. Slaughter must occur under sanitary conditions and in accordance with all applicable federal and state laws and regulations.

c. Organic animals and animal products must be clearly identified and segregated to prevent commingling with conventional animals and animal products.

21--47.8(190C) Apiculture. Honey and other bee products may be labeled, promoted and sold as organic if the operation is certified organic according to Iowa Code chapter 190C and this chapter, particularly standards as promulgated in this rule. In addition, all practices shall be in compliance with Iowa Code chapter 160 and 21--Chapter 22.

47.8(1) Organic apiculture plan. Producers of organic bee products shall complete and submit an organic apiculture plan to the certification agency.

a. The organic apiculture plan must be approved by the certification agency and updated annually.

b. The plan shall list number and location of colonies.

c. The plan shall include a description of practices implemented in the production of beehive products related to origin of colony, feed, water availability and health care.

d. The producer shall submit the organic apiculture plan questionnaire provided by the certification agent and include adequate maps of areas and buildings used for beehives. The certification agent shall be notified of all substantial changes to the organic apiculture plan.

47.8(2) Feed requirements.

a. Colonies shall be given supplemental feeding when needed, but feeding is prohibited when honey supers are in place.

b. Feeding of colonies to build food reserves for the winter may be undertaken. Such feeding must be carried out between the last honey harvest and prior to the next surplus honey flow.

c. Supplemental feed should be derived from organic honey or organic sugar syrup, but nonorganic honey or sugar syrup may be used on a temporary and limited basis with written justification of need and documentation of the lack of organic feed sources.

d. Bees from which organic honey and other products are harvested shall have access to forage produced in accordance with Iowa Code chapter 190C and this chapter.

47.8(3) Prohibited uses.

a. The use of antibiotics, sulfa products or any drug not specifically allowed by this rule or the National List is prohibited.

b. Fluvalinate (Apistan strips), coumaphos (CheckMite+ strips) and other prohibited pesticides shall not be used in organic apiaries.

47.8(4) Source of colonies.

a. Bee colonies should be established on new woodenware and foundation to reduce risk of contamination by pesticides, antibiotics and comb-borne bee diseases which have a potential to be carried over in used equipment.

b. The source of adult bees for establishing colonies shall be from package bees as defined by Iowa Code section 160.1A(4) or splits (nucs) made from the operator's own organic colonies, and not from another organic or conventional beekeeping operation.

47.8(5) Apiary location.

a. Apiary shall be located on certified organic land.

b. Apiary shall not be located within two miles of:

(1) A sanitary landfill;

(2) An incinerator;

(3) A power plant;

(4) A golf course;

(5) A town, city or village;

(6) A crop sprayed with prohibited substances during the bloom period; and

(7) Other sources of contamination.

c. If pollen is sold or labeled as organically produced, the apiary shall be located two miles from genetically modified crops.

d. Organic apiaries should be located as far as possible from conventional apiaries.

47.8(6) Split operation.

a. Split operations shall be allowed but segregation plans and applicable records must be followed and documented. Organic colonies and conventional colonies shall be maintained in separate apiaries. All colonies in both the conventional and organic apiaries shall be uniquely identified, and detailed records must be kept on the origin and production history of each colony. Appropriate physical facilities, equipment and management practices shall be established to prevent commingling of conventional beehive products and organic products or contamination by prohibited substances.

b. An organic beekeeping operation may maintain a split operation for a period not to exceed three years from the time of establishment of the organic apiary.

47.8(7) Health care.

a. A high level of hygiene practices, when handling bee colonies and bee equipment in an organic operation, is required to minimize the need for antibiotic treatments, since the use of antibiotics is prohibited in the production of organic beehive products.

b. It is recommended that used woodenware and foundation not be introduced into the organic apiary from another beekeeping operation. Selling and exchanging of used beekeeping equipment may pose a great risk of transferring comb-borne bee diseases.

c. Efforts must be made to minimize stress to colonies by locating apiaries in sheltered areas, maintaining equipment in good condition and winterizing beehives. Empty beehive equipment shall be stored in a dry, pest-free place that does not contain prohibited materials.

d. The operator should implement the following practices:

(1) Use hardy breeds that adapt well to the local conditions;

(2) Replace queen bees regularly;

(3) Destroy contaminated materials;

(4) Renew beeswax regularly; and

(5) Maintain sufficient stores of pollen and honey in the hive.

e. American foulbrood. If a colony becomes infected with American foulbrood disease, it must be destroyed by burning along with all woodenware and comb.

f. Parasites. Colonies shall be treated for parasitic mites using the best available organic methods. Treatments may include, but are not limited to, the use of herbal and vegetable oils during nonhoney flow periods. Colonies so treated may remain in the organic apiary, and honey and other beehive products may be marketed as organic.

g. To aid in reducing Varroa mite populations, nonchemical cultural practices are encouraged, such as drone brood trapping and the use of a screen-modified bottom board in the beehives.

47.8(8) Product handling.

a. An operation which processes or handles organic beehive products must be in compliance with all applicable handling requirements of this rule.

b. If a facility processes both organic and nonorganic hive products, all equipment must be completely emptied and cleaned prior to processing organic hive products.

c. Equipment which comes in contact with organic honey must be made of stainless steel, glass, or other food grade materials.

21--47.9(190C) Aquaculture. Organic aquaculture operations shall be managed for optimum use of nutrients and minimizing waste. Diversified farms, including more than one species, and recycling freshwater effluent into cropping systems can help accomplish these goals. If effluent from tanks cannot be recycled, settling ponds may be required to avoid discharging effluent with an excessive nutrient loading.

47.9(1) Animal stock. Fish acquired for the purpose of selling as organic must be raised on the farm in accordance with organic standards promulgated in these rules.

a. New stock must be acquired from certified organic aquaculture operations.

b. Brood stock must be raised as organic during the entire period of gestation for juveniles to be sold as organic.

c. Off-farm fish not certified organic must be temporarily held in an isolation tank for a period of three weeks and fed only organic feed before introduction into certified organic tanks.

d. Fish must be raised as organic for a period of at least three-quarters of their life span (e.g., fish sold as three-month-olds must have been raised as organic for a minimum of 68 days) in order to be sold as organic.

47.9(2) Site selection. Aquaculture tanks should not be located in sites open to pesticide drift or other harmful contaminants. During operation, basic water quality sampling for pH, oxygen, nitrogenous wastes, and toxins should be conducted by the operator. Operations must be in compliance with all local, state and federal health agency water quality regulations.

47.9(3) Feed and supplements.

a. Fish must be fed 100 percent organic feed, including grains, sprouted grains, and other plant products that are certified organic.

b. Fishmeal and fish oil must be sourced from certified organic fish farms, not wild-caught fish.

c. No more than 20 percent fishmeal by weight is allowed in feed mix.

d. Artificial colors, binders and synthetic astaxanthin are prohibited.

e. Supplements must come from natural sources.

f. Antibiotics are prohibited in certified organic production.

g. The final feed mix should be free from vermin and microbial contaminants, such as aflotoxins and plant diseases.

h. Feed to aquaculture animals should be reduced or eliminated for a period of 48 hours prior to harvest to improve water quality and enhance depuration of the animal's digestive tract for improved food quality.

47.9(4) Harvesting and postharvest handling.

a. All certified organic aquaculture products must be rinsed with potable water immediately after harvest and safely stored and transported according to local, state and federal health agency rules.

b. Operators shall refer to the National List to determine which supplements, such as natural yeast, enzymes, vitamins, and minerals, are allowed in organic aquaculture.

21--47.10(190C) Handling and processing of organic agricultural products.

47.10(1) Handlers. Handlers of organic products shall be responsible for maintaining the organic integrity of the organic products they handle. Handlers who must be certified include distributors, food services, jobbers, packers, shippers, and processors who take legal title to organic products, including livestock feed, as well as retailers and distributors who process and substantially transform, repack or relabel.

47.10(2) Handlers not taking legal title. The activity of individuals or businesses that do not take legal title to organic products but act as agents, licensees, employees, contractors, or subcontractors, co-packers or co-processors and that process, package, or store organic agricultural products for a certified organic farming or handling operation must be covered by the certification of that organic farming or handling operation. Such activity must be described in the organic handling plan and shall be inspected and scrutinized with the same rigor and the same standards as certified entities as part of the certification requirement of the certified organic operation for which a handler acts as agent, licensee, employee, contractor, or subcontractor, co-packer or co-processor. Handlers that are not required to be certified include brokers, commission merchants, and truckers that do not take legal title to organic products.

47.10(3) Certification requirements for handling and processing operations.

a. Organic handling or processing plan. An organic handling or processing plan must be completed and submitted to the certification agency by the organic handler. The plan shall be reviewed by the certification agency that shall determine if the plan meets the requirements of the program. Operators must notify the certification agency of proposed changes to the organic handling plan. An organic handling plan shall contain provisions designed to ensure that agricultural products sold or labeled as organically produced are handled in a manner that maintains the integrity of the organic product according to Iowa Code chapter 190C and this chapter. The plan must address all elements of organic handling that are applicable to a particular handling operation, including but not limited to the handling system description, schematic flow charts, procedures for ensuring organic integrity, material inputs, ingredients, ingredient and finished product storage, transportation, records and good manufacturing practices.

b. Good manufacturing practices. Organic handlers and processors must comply with the current good manufacturing practices specified in 21 Code of Federal Regulations 110 (April 1, 1998). In addition, organic handlers and processors must comply with all other federal, state, and local food handling regulations and the following:

(1) Cleanliness. Necessary precautions must be taken to protect against contamination of food, food-contact surfaces, or food-packaging materials by microorganisms or foreign substances including, but not limited to, perspiration, hair, cosmetics, tobacco, chemicals, medicines applied to the skin, or substances that are not included on the National List of allowed substances.

(2) Education and training. Food handlers and supervisors should receive appropriate training in proper food handling techniques, proper organic handling techniques, and food-protection principles and should be informed of the danger of poor personal hygiene and unsanitary practices.

(3) Plant construction and design. Plant construction and design must permit the taking of proper precautions to reduce the potential for contamination of food, food-contact surfaces, or food-packaging materials by pests, microorganisms, chemicals, filth, and substances that are not included on the National List.

(4) Pest management. Organic handling operations shall implement structural pest management programs which emphasize exclusion, sanitation, restriction of pest habitat, monitoring, and use of least toxic pest control substances and shall be reflected in a pest management plan. Pest control substances that are not included on the National List of approved synthetic substances or that are included on the list of prohibited natural substances shall not be used during the processing, packing, or holding of organically produced human food and animal feed. Should the use of prohibited pest control substances be required to control an infestation, all organic food and feed must be removed from the facility before and during the application of the prohibited pest control substance. Organic food and feed may be brought back into the facility when there is no danger of contamination of the organic food with the prohibited pest control substance. For pesticides applied by fogging, broad surface treatment, or spot treatment, 72 hours must elapse prior to the reintroduction of organic ingredients, products or packaging to the treated area. For areas treated by fumigation, 120 hours must elapse prior to the reintroduction of organic ingredients, products or packaging to the treated area. All food contact surfaces exposed to pesticides must be cleaned before organic handling resumes.

(5) Sanitation of food-contact surfaces. Treatment of food-contact surfaces, including utensils and food-contact surfaces of equipment, with cleaning compounds and sanitizers must be done in such a way as to prevent the loss of organic integrity. Extra rinses, flushes, purges and testing may be required prior to the production of organic products.

(6) Boiler water additives. Residues of boiler water additives must be prevented from contacting organically produced food by the use of steam without entrained water, steam filtering, or other means.

(7) Waste management. Wastes shall be managed so as to prevent environmental degradation, including contamination of ground and surface water. Wastes shall be contained so as not to attract pests or present a contamination potential to organic products.

(8) Transportation. Organic products shall be transported in containers which are free of odors and residues of prohibited substances and products which could compromise the integrity of the organic products.

47.10(4) Prohibited.

a. Chemicals used in washing/peeling. Substances that are not included on the National List of approved substances shall not be used to wash, peel, or otherwise prepare organically produced raw agricultural products or organic food.

b. Water used in handling. Water that contacts conventionally produced raw agricultural products during handling operations such as washing, floating, rinsing, or cooling must not be used for handling of organically produced raw agricultural products. If necessary, organic agricultural products shall be processed before conventional products to comply with this requirement.

c. Ionizing radiation. Ionizing radiation for the purpose of killing insects or microorganisms in the food or preserving food shall not be used in the handling of organic food. Use of X-rays for inspection of organic food, as in metal detectors, is allowed.

d. Recombinant DNA technology. Organisms that are created through the use of recombinant DNA technology, or products of such organisms, shall not be used as ingredients or processing aids in the handling of organic products.

47.10(5) Prevention of commingling. Safeguards to prevent the commingling of organic products with conventional products or prohibited substances shall be established.

47.10(6) Records. Records and inventory control procedures must be adequate to trace all ingredients and products from the supplier through the entire production system, including packaging and storage, and on through distribution, sales and transport, using lot numbers, date codes, or a similar product tracking system. Organic handlers must retain valid proof of certification for all organic ingredients. Detailed written information on all ingredients, additives, and processing aids used in the production of products must be maintained. A description of the system of internal record keeping that documents the movement of each specific lot of organic food through each step of the handling operation shall be maintained.

21--47.11(190C) Product composition and labeling.

47.11(1) Labels.

a. All organic agricultural food products must be labeled in accordance with Title 21, Part 101 of the FDA Administration Code of Food Requirements and the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.). Labels of all organic food products must contain the certification agency name. Labels may contain agency seal or logo.

b. The following apply to agricultural products labeled as "organic" on the principal display panel:

(1) For a product to be labeled "certified organic" 95 percent of the finished product either by weight or volume, whichever is the most appropriate, must be comprised of certified organic ingredients.

(2) Ingredients that are included on the list of substances approved for processed food on the National List may be used, provided that they represent not more than 5 percent of the total weight of the finished product, excluding water and salt.

(3) Water must meet Safe Drinking Water Act requirements.

(4) Agricultural products that are not organically produced may be used in a processed product labeled as "organic" on the principal display panel only if the following conditions are met:

1. The handler shall document that the necessary ingredient is not commercially available as a certified organic ingredient and that good-faith efforts have been made to obtain such an organic ingredient;

2. The conventional ingredients used are not listed as prohibited on the National List; and

3. The total represents not more than 5 percent of the total weight of the finished product (excluding water and salt).

47.11(2) Prohibitions.

a. Organic and conventional forms of the same agricultural ingredient shall not be combined in a product sold, labeled or represented as "organic" or "made with organic ingredients" if the ingredient is represented as organic in the ingredient statement.

b. The term "organic when available" shall not be used on such organic agricultural products.

c. Synthetic substances used as additives or processing aids that are not on the National List.

d. Any nonsynthetic substance that is on the National List of prohibited nonsynthetic substances.

e. Any ingredient known to contain levels of nitrates, heavy metals, or toxic residues in excess of 5 percent of EPA residue tolerance levels.

f. Any sulfites, nitrates, and nitrites.

g. Any ingredient produced using synthetic volatile solvents or propylene glycol.

h. Any packaging materials, storage containers or bins that contain synthetic fungicides, preservatives, fumigants, or prohibited substances which may contaminate organic products.

i. Any packaging materials that had previously been in contact with any prohibited substance in such a manner as to compromise the integrity of an organic product.

j. Any water that does not meet the requirements of the Safe Drinking Water Act.

k. Ionizing radiation, including ingredients which have been subjected to ionizing radiation.

l. Genetically engineered organisms and their products.

47.11(3) Source of certified organic ingredients. Processors shall source and utilize certified organic ingredients only from manufacturers certified organic by certification agencies accredited by the USDA, pursuant to the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) upon implementation of the National Organic Program. If such product is imported for use in the processing of an organic product, the imported product must, at minimum, meet the objectives of the Organic Foods Production Act. Records documenting source of all ingredients used in processing shall be maintained.

21--47.12(190C) Packaging.

1. Packaging materials for organic food products must be food grade and must not contaminate the organic product.

2. Packaging must be free of prohibited substances such as fungicides, preservatives, and fumigants.

3. Aluminum, tin and solder shall not be used unless those substances are between pH 6.7 and 7.3.

21--47.13(190C) List of substances.

47.13(1) The department shall adopt the National List of substances, allowed or prohibited for organic production and handling of products sold or labeled as organically produced, pursuant to the Organic Foods Production Act of 1990 and promulgated by the National Organic Program upon its implementation.

47.13(2) The list established shall contain an itemization, by specific use or application, of each synthetic substance permitted, or each natural substance prohibited, according to the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

47.13(3) Until such time that the National Organic Program is implemented, substances allowed or prohibited shall be determined by reference to the generic materials list published by the Organic Materials Review Institute (OMRI) and only those substances may be used which are in compliance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

ARC 9202A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 159.5(11), 192.102, and 194.2, the Department of Agriculture and Land Stewardship gives Notice of Intended Action to amend Chapter 68, "Dairy," Iowa Administrative Code.

These amendments are intended to make several changes relating to the terms and conditions for the holding of a Grade A or Grade B dairy permit including providing a definition of "habitual violator," clarifying the conditions for the suspension of a dairy permit, adopting the most current version of federal regulations for Grade B milk, and establishing requirements relating to the milk truck approach to a dairy facility.

Any interested person may make written suggestions or comments on the following proposed amendments prior to 4:30 p.m. on August 3, 1999. Such written material should be directed to Jake Wakefield, Bureau Chief, Department of Agriculture and Land Stewardship, Wallace State Office Building, Des Moines, Iowa 50319. Comments can also be submitted by fax to (515)281-8888 or by E-mail to Jake.Wakefield@idals.state.ia.us.

These amendments are intended to implement Iowa Code chapters 192 and 194.

The following amendments are proposed.

ITEM 1. Amend rule 21--68.1(192) as follows:

Amend the parenthetical implementation as follows:

21--68.1(192,194) Definitions.

Adopt the following new definition in alphabetical order:

"Habitual violator" is a producer or other dairy industry business entity that is regulated by the department, from whom the monthly official records for somatic cell counts, bacteria, cooling or added water show that the violation has occurred eight times in a 12-month period, including the accelerated testing counts; or has received three, two-of-four warning letters in a 12-month period; or has received a second three-of-five, off-the-market letter in a 12-month period; or has been found with a fifth positive antibiotic in a 12-month period.

ITEM 2. Amend rule 21--68.11(192) as follows:

21--68.11(192,194) Suspension of dairy farm permits.

68.11(1) Grade A and Grade B permit suspension and revocation. The department may temporarily suspend a Grade A or Grade B farm permit if the dairy fails to meet all of the requirements as set forth in the "Grade A Pasteurized Milk Ordinance, 1993 1997 R-5 Revision, printed as Public Health Service/Food and Drug Administration Publication No. 229" and incorporated into rule 21--68.12(192) or Grade B United States Department of Agriculture document entitled, "Milk for Manufacturing and Its Production and Processing, Recommended Requirements," 1996 Revision. A Grade A farm under temporary suspension of their the Grade A permit may sell the milk as "milk for manufacturing purposes" until reinstated as a Grade A farm if the former Grade A farm meets the requirements necessary to sell Grade B milk. A Grade B farm under temporary suspension of the Grade B permit may sell milk as "Undergrade Class 3" until reinstated as a Grade B farm if the former Grade B farm meets the requirements of Undergrade Class 3. If an inspection reveals a violation which, in the opinion of the inspector, is an imminent hazard to the public health, the inspector shall take immediate action to prevent any milk believed to have been exposed to the hazard from entering commerce. In addition, the inspector shall immediately notify the department that such action has been taken. In other cases, if there is a repeat violation of a dairy standard as determined by two consecutive routine inspections of a dairy farm, the inspector shall immediately refer the violation to the department for action.

The department may revoke the dairy permit of a person or entity that the department determines is a habitual violator as defined in rule 21--68.1(192,194).

68.11(2) Summary suspension of dairy farm permits. If the department finds that the public health, safety or welfare imperatively requires emergency action, summary suspension of a permit may be ordered pending proceedings for revocation or other action. If a permit is summarily suspended, no milk or milk products may be sold or offered for sale until permit is reinstated.

The following situations or incidents are situations in which summary suspension is appropriate:

a. Unclean milk contact surfaces of equipment or utensils.

b. Filthy conditions in a milking barn or parlor or in a cattle housing area, including several days' accumulation of manure in the milking barn gutters, calf pens or in other areas.

c. Filthy conditions in a cow yard and very dirty cows.

d. Filthy conditions in a milk room/milk house.

e. Water supply, water pressure, or water-heating facilities not in compliance with standard operating procedures.

f. No access to hand-washing facility in the milk room/milk house.

g. Violation of standards under this chapter related to well construction or potability of water supply, including any cross connections between potable and nonpotable water sources.

h. Lack of an approved sanitizer in the milk room/milk house or adjacent storage area to meet the sanitizing requirements.

i. Visibly dirty udders and teats on cows being milked.

j. Milk not cooled in compliance with subrule 68.22(4).

k. Rodent activity in the milk room/milk house, or severe rodent activity in a milking barn or milking parlor or in a feed storage room.

l. Dead animals in the milking barn or parlor or cow yard.

m. Other situations where the department determines that conditions warrant immediate action to prevent an imminent threat to the public health or welfare.

ITEM 3. Amend rule 21--68.15(192,194) as follows:

21--68.15(192,194) Milk standards. Standards for the production and processing of milk for manufacturing purposes shall conform to standards contained in the USDA document entitled "Milk for Manufacturing Purposes and Its Production and Processing, Recommended Requirements," Volume 37, Number 68, Part II, dated Friday, April 7, 1972, November 12, 1996, which is hereby incorporated into this rule by reference and made a part thereof insofar as applicable except Subpart A entitled "Sample State Enabling Act," and Subpart E entitled "Requirements for Licensed Dairy Plants," which are not adopted and are not a part of this rule; a copy of which is on file with the department.

ITEM 4. Adopt a new rule 21--68.37(192,194) as follows:

21--68.37(192,194) Approaches. At all dairy facilities at which milking is commenced after the effective date of the rule, the milk truck approach to the dairy facility shall not be through a cow yard or any other animal confinement area. In existing facilities where the milk truck approach is through a cow yard or another animal confinement area, the milk truck approach shall be scraped and cleaned daily to avoid manure accumulation. If the producer at an existing facility fails to maintain the truck approach in a scraped and cleaned condition, the department may order the facility to be redesigned to eliminate the milk truck approach being located through the cow yard or any other animal confinement area. All milk truck approach driveways shall be graded and maintained in a smooth condition and shall be topped with gravel or paved.

ARC 9184A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development hereby gives Notice of Intended Action to amend Chapter 11, "Certified School to Career Program," Iowa Administrative Code.

The proposed amendment is intended to implement a legislative change. 1999 Iowa Acts, House File 144, section 1, amends Iowa Code section 15.364 to permit, in the event a participant does not complete the certified program, one-half of the funds being held in trust for a participant's postsecondary education to be paid to an apprenticeship program authorized by 29 CFR, Subtitle A, Part 29, February 18, 1977, as amended April 30, 1984, or a postsecondary education institution as defined in Iowa Code section 261C.3.

Public comments concerning the proposed amendment will be accepted until 4 p.m. on August 4, 1999. Interested persons may submit written or oral comments by contacting Mary Lawyer, Workforce Development Coordinator, Department of Economic Development, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)242-4769.

This amendment is intended to implement Iowa Code section 15.364 as amended by 1999 Iowa Acts, House File 144, section 1.

The following amendment is proposed.

Amend paragraph 11.3(10)"b" as follows:

b. If a participant selects a different career field and chooses not to complete the certified program identified in the agreement prior to entering the postsecondary component of the education program, one-half of the moneys being held in trust for the participant's postsecondary education shall be paid either to an apprenticeship program of the participant's choice which has been approved under 29 CFR Subtitle A, Part 29, or a postsecondary education institution as defined in Iowa Code section 261C.3 of the participant's choice to pay tuition or expenses of the participant. The other one-half of the trust moneys shall be paid back to the employer. Any moneys to be transferred for the benefit of the participant which are not transferred within five years for purposes of education at the designated postsecondary institution shall be paid back to the employer.

ARC 9182A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development hereby gives Notice of Intended Action to adopt Chapter 20, "ACE PIAP Program," Iowa Administrative Code.

The proposed new rules establish program guidelines, describe application procedures, outline review criteria, and provide information on program administration.

Public comments concerning the proposed new chapter will be accepted until 4:30 p.m. on August 5, 1999. Interested persons may submit written or oral comments by contacting Mary Lawyer, Division of Administration, Department of Economic Development, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)242-4769.

A public hearing to receive comments about theproposed new chapter will be held on August 5, 1999, at10 a.m. at the above address in the IDED main conference room. Individuals interested in providing comments at the hearing should contact Mary Lawyer by 4 p.m. on August 4, 1999, to be placed on the hearing agenda.

These rules were also Adopted and Filed Emergency and are published herein as ARC 9183A. The content of that submission is incorporated by reference.

These rules are intended to implement 1999 Iowa Acts, House File 772 and Senate File 465.

ARC 9181A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development hereby gives Notice of Intended Action to rescind Chapter 25, "Housing Fund," Iowa Administrative Code, and adopt a new Chapter 25 with the same title.

The proposed new rules consolidate and clarify program requirements and set out new application procedures and review processes.

Public comments concerning the proposed new chapter will be accepted until 4:30 p.m. on August 3, 1999. Interested persons may submit written or oral comments by contacting Roselyn McKie Wazny, Division of Community and Rural Development, Department of Economic Development, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)242-4822.

A public hearing to receive comments about the proposed new chapter will be held on August 3, 1999, at 1:30 p.m. at the above address in the IDED main conference room. Individuals interested in providing comments at the hearing should contact Roselyn McKie Wazny by 4 p.m. on August 2, 1999, to be placed on the agenda.

These rules are intended to implement Iowa Code section 15.108(1)"a."

The following chapter is proposed.

Rescind 261--Chapter 25 and adopt in lieu thereof the following new chapter:

261--25.1(15) Purpose. The primary purpose of the housing fund, made up of federal CDBG and HOME funds, is to expand the supply of decent and affordable housing for low- and moderate-income Iowans.

261--25.2(15) Definitions. When used in this chapter, unless the context otherwise requires:

"Activity" means one or more specific housing activities, projects or programs assisted through the housing fund.

"Administrative plan" means a document that a housing fund recipient establishes that describes the operation of a funded activity in compliance with all state and federal requirements.

"AHTC" means affordable housing tax credits and federal tax incentives created through the Tax Reform Act of 1986 and allocated through the Iowa finance authority for affordable rental housing development.

"CDBG" means community development block grant nonentitlement program, the grant program authorized by Title I of the Housing and Community Development Act of 1974, as amended, for counties and cities, except those designated by HUD as entitlement areas.

"CHDO" means community housing development organization, a nonprofit organization registered with the Iowa secretary of state and certified as such by IDED, pursuant to 24 CFR 92.2 (April 1, 1997).

"Consolidated plan" means the state's housing and community development planning document and the annual action plan update approved by HUD.

"HART" means the housing application review team, a body of affordable housing funding agencies which meets to review housing proposals.

"HOME" means the HOME investment partnership program, authorized by the Cranston-Gonzalez National Affordable Housing Act of 1990.

"Housing fund" means the program implemented by this chapter and funded through the state's annual HOME allocation from HUD and 25 percent of the state's CDBG allocation from HUD.

"Housing needs assessment" means a comprehensive analysis in a format that conforms to IDED guidelines of housing needs for one or more units of local government.

"HUD" means the U.S. Department of Housing and Urban Development.

"IDED" means the Iowa department of economic development.

"IFA" means the Iowa finance authority.

"Local support" means involvement and financial investment by citizens and organizations in the community that promotes the objectives of the housing activities assisted through the housing fund.

"Program income" means funds generated by a recipient or subrecipient from the use of CDBG or HOME funds.

"Recipient" means the entity under contract with IDED to receive housing funds and undertake the funded housing activity.

"Subrecipient" means an entity operating under an agreement or contract with a recipient to carry out a funded housing activity.

261--25.3(15) Eligible applicants. Eligible applicants for housing fund assistance include all incorporated cities and counties within the state of Iowa; nonprofit organizations; CHDOs; and for-profit corporations, partnerships and individuals.

1. Any eligible applicant may apply directly or on behalf of a subrecipient.

2. Any eligible applicant may apply individually or jointly with another eligible applicant or other eligible applicants.

261--25.4(15) Eligible activities and forms of assistance.

25.4(1) Eligible activities include transitional housing, tenant-based rental assistance, rental housing rehabilitation (including conversion), rental housing new construction, home ownership assistance, owner-occupied housing rehab-ilitation and other housing-related activities as may be deemed appropriate by IDED. Assisted housing may be single-family housing or multifamily housing and may be designed for occupancy by homeowners or tenants.

a. Assisted units shall be affordable.

(1) For rental activities, all assisted units shall rent at the lesser of the area fair market rents or 30 percent of 65 percent of the area median family income and, for projects with five or more units, 20 percent of the units shall rent at the lesser of the fair market rent or 30 percent of 50 percent of the area median family income. Assisted units shall remain affordable for a specified period: 20 years for newly constructed units; 10 years for rehabilitated units receiving $15,000 to $24,999 in assistance; and 5 years for projects receiving less than $15,000 per unit.

(2) For tenant-based rental assistance, gross rents shall not exceed the jurisdiction's applicable rent standard and shall be reasonable, based on rents charged for comparable, unassisted rental units.

(3) For home ownership assistance, the initial purchase price for newly constructed units and the after rehabilitation appraised value for rehabilitated units shall not exceed 95 percent of the median purchase price for the same type of single-family housing in the area. Assisted units shall remain affordable through resale or recapture provisions for a specified period: 5 years for projects receiving up to $15,000 in assistance per unit, and 10 years for projects receiving $15,000 to $24,999 in assistance.

(4) For owner-occupied housing rehabilitation, the after rehabilitation value of rehabilitated units shall not exceed 95 percent of the median purchase price for the same type of single-family housing in the area.

(5) For owner-occupied housing rehabilitation, the housing fund assistance shall be limited to $24,999 per unit.

b. Assisted households shall meet income limits established by federal program requirements.

(1) For rental activities, all assisted units shall be rented to households with incomes at or below 80 percent of the area's median family income; 90 percent of the units shall be rented to households with incomes at or below 60 percent of the area's median family income and, for projects with five or more units, 20 percent of the units shall be rented to households with incomes at or below 50 percent of the area's median family income.

(2) For tenant-based rental assistance, only households with incomes at or below 80 percent of the area median family income shall be assisted; additionally, 90 percent of the households served shall have incomes at or below 60 percent of the area's median family income.

(3) For home ownership assistance and owner-occupied housing rehabilitation, only households with incomes at or below 80 percent of the area median family income shall be assisted.

c. IDED reserves the right to establish rehabilitation standards for projects. All rehabilitation must be done in compliance with all state and local codes, rehabilitation standards and ordinances and shall, at a minimum, meet HUD Section 8 Housing Quality Standards, 24 CFR 882 (April 1, 1997). New units must be constructed pursuant to standards specified at 24 CFR 92.251(a)(1) (April 1, 1997).

25.4(2) Eligible forms of assistance include grants,interest-bearing loans, non-interest-bearing loans, interest subsidies, deferred payment loans, forgivable loans or other forms of assistance as may be approved by IDED.

261--25.5(15) Application procedure. All potential housing fund applicants shall complete and submit a HART form describing the proposed housing activity. If, after HART review, the proposal is determined appropriate for housing fund assistance, IDED shall inform the applicant of the appropriate application procedure by mail. The HART process must be completed as early as possible in the application procedure and within a minimum of 30 days prior to the application deadline.

25.5(1) HART forms shall be available upon request from IDED, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)242-4825.

25.5(2) HART forms are accepted year-round.

25.5(3) Applicants may request technical assistance from staff contacts in the preparation of housing fund applications.

a. If an applicant does not submit an application by the next application deadline, IDED will determine the proposal inactive and remove it from the HART files.

b. Upon the submission of a housing fund application, no additional staff assistance shall be provided during the review period.

25.5(4) Housing fund applications shall be reviewed through an annual competition and the awards announced within 90 days of the application deadline. Once funds have been allocated, IDED will not accept applications seeking funding for review until the next established deadline.

25.5(5) Applications for rental housing activities being proposed to be funded jointly through the housing fund and the affordable housing tax credit program shall be reviewed and award decisions made through an annual competition for funds reserved for this purpose under subrule 25.8(3).Applicants shall be required to submit a housing fund/affordable housing tax credit application supplement to IDED by the deadline established by IFA for the submission of AHTC applications. IDED shall distribute information about the application procedure to potential applicants with IFA's annual AHTC program announcement and shall provide technical assistance to potential applicants as requested prior to the application deadline.

261--25.6(15) Minimum application requirements. To be considered for housing fund assistance, an application shall meet the following threshold criteria:

25.6(1) The application shall propose a housing activity consistent with the housing fund purpose and eligibility requirements, the state consolidated plan and any local housing plans.

25.6(2) The application shall document the applicant's capacity to administer the proposed activity. Such documentation may include evidence of the successful administration of prior activities or a statement that the applicant intends to contract with another entity for administrative services. IDED reserves the right to deny funding to an applicant that has failed to comply with federal and state requirements in the administration of a previous project funded by IDED.

25.6(3) The application shall provide evidence of the need for the proposed activity, the potential impact of the proposed activity and the feasibility of the proposed activity.

25.6(4) The application shall demonstrate local support for the proposed activity.

25.6(5) The application shall show that a need for housing fund assistance exists after all other financial resources have been identified for the proposed activity.

25.6(6) The application shall include a certification that the applicant will comply with all applicable state and federal laws and regulations.

261--25.7(15) Application review criteria. IDED shall evaluate applications and make funding decisions based on general project criteria, need, impact, feasibility, and project administration based upon the specific type of project. The project criteria shall be a part of the application. A workshop will be held at least 60 days prior to the application deadline to provide information, materials, and technical assistance to potential applicants.

25.7(1) As applicable, the review criteria for homeownership assistance applications shall include the following:

a. General criteria.

1. Project objectives.

2. Total number of units and number of assisted units.

3. Project activities and cost estimates.

4. If new construction, availability of necessary infrastructure and utilities.

5. Form(s) of assistance (grants, loans, amounts).

6. Type(s) of assistance (e.g., mortgage buy-down, down payment, closing costs, and rehabilitation).

7. Median purchase price for single-family housing in the community.

8. Initial purchase price or after rehabilitation value per assisted unit.

9. Mortgage lender participation documentation and underwriting standards.

10. Methodology to determine maximum amount of conventional financing affordable to buyer.

11. Selection criteria for participants.

12. Methodology to ensure that the property will be the buyer's principal residence.

13. Rehabilitation standards to be used.

14. Project time line.

b. Need, impact and feasibility criteria.

1. Number and percentage of low- and moderate-income persons in the applicant community.

2. Evidence and documentation of need for the project.

3. Percentage of need to be met through the project.

4. Reasons mortgage applications have been denied by local lenders.

5. Housing costs, housing supply, condition of available housing, and vacancy rates.

6. If acquisition for new construction, documentation of need for new units.

7. Recent or current housing improvement activities.

8. Description of current and ongoing comprehensive community development efforts.

9. Publicity promoting the proposed project.

10. Number of potential participants and the method by which they were identified.

11. New businesses or industrial growth in the past five years.

12. Local involvement and financial support.

c. Administrative criteria.

1. Plan for project administration.

2. Previous project management experience.

3. Budget for administration.

4. Resale and recapture provisions, terms, and enforcement procedures.

5. Prior funding received and performance targets completed.

25.7(2) As applicable, the review criteria for owner-occupied housing rehabilitation applications shall include the following:

a. General criteria.

1. Project objectives.

2. Area of benefit and reason for applicant selection.

3. Condition of infrastructure in the project area.

4. Form of assistance to homeowners (grants, loans, amounts).

5. Homeowner contribution methodology.

6. Selection criteria for participants.

7. Method to determine that the property is the homeowner's principal residence.

8. Proposed standards for rehabilitation.

9. Plan for properties infeasible to rehabilitate.

10. If relocation is included, estimate of available suitable replacement housing.

11. Documentation of local lender participation and underwriting criteria.

12. Method to determine after rehabilitation value.

13. Terms of affordability.

14. Use of program income.

15. Project time line.

b. Need, impact and feasibility criteria.

1. Evidence of need for the project.

2. Percentage of need to be met through the project.

3. Number and percentage of low- and moderate-income persons in the community.

4. Housing costs, housing supply, condition of available housing, vacancy rate in project area.

5. Other recent or current housing improvement activities in the project area.

6. Ongoing comprehensive community development efforts in the project area.

7. New businesses or industries in the past five years in the city of the project location.

8. Local support documentation.

9. Opposition to project and plans to alleviate concerns.

10. Financial contribution to the project from other sources (with underwriting criteria).

11. Reason for "gap" in the project financing; justification for housing fund request amount.

12. Property values compared to 1990 in project location (percent change).

13. Number of households compared to 1990 in project location (percent change).

14. Population compared to 1990 in project location (percent change).

15. Overall vacancy rate of owner-occupied units in the community (percent change).

c. Administrative criteria.

1. Plan for project administration.

2. Previous project management experience.

3. Budget for administration.

4. List of prior CDBG and HOME funding.

5. If application is for a continuation of a prior project, list of performance targets completed.

25.7(3) As applicable, the review criteria for rental housing assistance applications shall include the following:

a. General criteria.

1. Project objectives.

2. Total number of units and number of assisted units.

3. Project activities and cost estimates.

4. Eligibility criteria for renters of assisted units (income, age, disability, other).

5. Rationale for project location.

6. Availability and condition of infrastructure; availability of utilities.

7. Zoning compliance.

8. Environmental issues.

9. Potential tenant displacement including estimated Uniform Relocation Act (URA) costs.

10. Accessibility.

11. Rehabilitation standards or construction codes to be used.

12. Project time line.

b. Need, impact and feasibility criteria.

1. Evidence of need for the project.

2. Percentage of need to be met through this project.

3. Number and percentage of low- and moderate-income persons in the community.

4. Housing costs, housing supply, condition of available housing, vacancy rate in project area.

5. If new construction, documentation of need for new construction.

6. Other recent or current housing improvement activities in the project area.

7. Ongoing comprehensive community development efforts in the project area.

8. New businesses or industries in the past five years in the city of the project location.

9. Local support.

10. Opposition to the project and plans to alleviate concerns.

11. Financial contribution to the project from other sources (including all underwriting criteria).

12. Reason for "gap" in the project financing; justification for housing fund request amount.

13. Property values compared to 1990 in project location (percent change).

14. Number of households compared to 1990 in project location (percent change).

15. Population compared to 1990 in project location (percent change).

16. Overall vacancy rate of owner-occupied units in the community (percent change).

c. Administrative criteria.

1. Plan for project administration.

2. Previous administrative experience.

3. Plan to ensure long-term affordability.

4. Plan for annual certification of tenant eligibility and compliance with Section 8 Housing Quality Standards.

5. Previous CDBG- and HOME-funded housing proj-ects and current status.

6. Applicant's other rental housing projects and addresses.

25.7(4) As applicable, the review criteria for tenant-based rental assistance applications shall include the following:

a. General criteria.

1. Project objectives.

2. Rationale for amount of assistance per recipient.

3. Selection criteria for participants.

4. Form of assistance (grants, loans).

5. Use of assistance (rental and security deposits, rent assistance).

6. Length of time of assistance.

7. Portability of rental assistance.

8. Rent calculation.

b. Need, impact and feasibility criteria.

1. Number and percentage of low- and moderate-income persons in the applicant community.

2. Percentage of income potential recipients are currently paying for rent.

3. Area housing costs.

4. Availability of affordable housing.

5. Public housing authority waiting list.

6. Documentation of other indicators of need for Tenant-based Rental Assistance (TBRA).

7. Percentage of need to be met through this project.

8. Alternatives to the proposed project that were considered.

9. Coordination of this project with other housing assistance.

10. Other providers of TBRA in the community.

11. Description of efforts to obtain additional funding from other sources for TBRA.

12. Evidence of community support.

13. Opposition to project and method to address it.

14. Economic indicators in community (unemployment rate, increase/decrease opportunity).

15. Project time line.

c. Administrative criteria.

1. Plans for administering the project.

2. Description of previous administrative experience.

3. Budget for administration.

4. Plan for annual certification of tenant eligibility and compliance with Section 8 HQS.

5. Prior CDBG and HOME housing grants.

6. Prior projects funded with performance targets completed.

25.7(5) IDED staff may conduct site evaluations of proposed activities.

261--25.8(15) Allocation of funds.

25.8(1) IDED may retain a portion of the amount provided for at rule 261--23.64(15) of the state's annual CDBG allocation from HUD and up to 10 percent of the state's annual HOME allocation from HUD for administrative costs associated with program implementation and operation.

25.8(2) Not less than 15 percent of the state's annual HOME allocation shall be reserved for eligible housing activities proposed by CHDOs.

25.8(3) Up to 75 percent of the state's annual HOME allocation shall be reserved for rental housing activities jointly funded with HOME and affordable housing tax credits. IDED reserves the right to require a 15 percent ratio of CHDO projects within the affordable housing tax credit proj-ects funded.

25.8(4) IDED reserves the right to allocate up to 5 percent of CDBG funds allocated to the housing fund for the emergency repair of homeless shelters. Recipients funded for this purpose shall not be required to follow the application procedure set forth in rule 261--25.5(15).

25.8(5) IDED reserves the right to allocate up to 5 percent of the HOME funds allocated to the housing fund for a contingency fund dedicated to addressing threats to public health and safety and exceptional opportunities that would otherwise be foregone without immediate assistance.

25.8(6) IDED will determine the appropriate source of funding, either CDBG or HOME, for each housing fund award based on the availability of funds, the nature of the housing activity and the recipient type.

25.8(7) IDED reserves the right to limit the amount of funds that shall be awarded for any single activity type.

25.8(8) Awards shall be limited to no more than $700,000.

25.8(9) The maximum per unit housing fund subsidy for all project types is $24,999.

25.8(10) Recipients shall justify administrative costs in the housing fund application. IDED reserves the right to negotiate the amount of funds provided for administration, but in no case shall the amount exceed 15 percent of a total housing fund award.

25.8(11) IDED reserves the right to negotiate the amount and terms of a housing fund award.

25.8(12) IDED reserves the right to make award decisions such that the state maintains the required level of local match to HOME funds.

25.8(13) IDED reserves the right to allocate a portion of funds to comprehensive areawide housing programs. Potential recipients shall be identified through a request for qualifications of entities interested in and capable of operating an areawide program. Areawide program proposals shall be evaluated on and awards negotiated on the targeted number of beneficiaries to be assisted across income levels, household types and unmet housing needs, rather than on specific activities.

25.8(14) A preaudit survey will be required of all for-profit and nonprofit direct recipients.

261--25.9(15) Administration of awards. Applications selected to receive housing fund awards shall be notified by letter from the IDED director.

25.9(1) Source of funds. If the source of funding for a housing fund award is HOME, the recipient shall administer the activity and manage funds in compliance with the regulations set forth in the HOME final rule, 24 CFR Part 92 (April 1, 1997). If the source of funding for a housing fund award is CDBG, the recipient shall administer the activity and manage funds in compliance with federal regulations set forth in 24 CFR Part 570 (April 1, 1997).

25.9(2) A contract shall be executed between the recipient and IDED. These rules, the housing fund application, the housing management guide and all applicable federal and state laws and regulations shall be part of the contract.

a. The recipient shall execute and return the contract to IDED within 45 days of transmittal of the final contract from IDED. Failure to do so may be cause for IDED to terminate the award.

b. Certain activities may require that permits or clearances be obtained from other state or local agencies before the activity may proceed. Awards may be conditioned upon the timely completion of these requirements.

c. Awards shall be conditioned upon commitment of other sources of funds necessary to complete the housing activity.

d. Awards shall be conditioned upon IDED receipt and approval of an administrative plan for the funded activity.

25.9(3) Requests for funds. Recipients shall submit requests for funds in the manner and on forms prescribed by IDED. Individual requests for funds shall be made in whole dollar amounts equal to or greater than $500 per request, except for the final draw of funds.

25.9(4) Record keeping and retention. The recipient shall retain all financial records, supporting documents and all other records pertinent to the housing fund activity for five years after contract expiration. Representatives of IDED, HUD, the Inspector General, the General Accounting Office and the state auditor's office shall have access to all records belonging to or in use by recipients and subrecipients pertaining to a housing fund award.

25.9(5) Performance reports and reviews. Recipients shall submit performance reports to IDED in the manner and on forms prescribed by IDED. Reports shall assess the use of funds and progress of activities. IDED may perform reviews or field inspections necessary to ensure recipient performance.

25.9(6) Amendments to contracts. Any substantive change to a contract shall be considered an amendment. Changes include time extensions, budget revisions and significant alterations of the funded activities affecting the scope, location, objectives or scale of the approved activity. Amendments shall be requested in writing by the recipient and are not considered valid until approved in writing by IDED following the procedure specified in the contract between the recipient and IDED.

25.9(7) Contract closeout. Upon the contract expiration date or work completion date, as applicable, IDED shall initiate contract closeout procedures. Recipients shall comply with applicable audit requirements described in the housing fund application and management guide.

25.9(8) Compliance with federal, state and local laws and regulations. Recipients shall comply with these rules, with any provisions of the Iowa Code governing activities performed under this program and with applicable federal, state and local regulations.

25.9(9) Remedies for noncompliance. At any time, IDED may, for cause, find that a recipient is not in compliance with the requirements of this program. At IDED's discretion, remedies for noncompliance may include penalties up to and including the return of program funds to IDED. Reasons for a finding of noncompliance include the recipient's use of funds for activities not described in the contract, the recipient's failure to complete funded activities in a timely manner, the recipient's failure to comply with applicable state or local rules or regulations or the lack of a continuing capacity of the recipient to carry out the approved activities in a timely manner.

25.9(10) Appeals process for findings of noncompliance. Appeals will be entertained in instances where it is alleged that IDED staff participated in a decision which was unreasonable, arbitrary, capricious or otherwise beyond the authority delegated to IDED. Appeals should be addressed to the division administrator of the division of community and rural development. Appeals shall be in writing and submitted to IDED within 15 days of receipt of the finding of noncompliance. The appeal shall include reasons why the decision should be reconsidered. The director will make the final decision on all appeals.

261--25.10(15) Requirements for the contingency fund. The contingency fund is reserved for (1) communities experiencing a threat to public health, safety, or welfare that necessitates immediate corrective action sooner than could be accomplished though normal housing fund procedures; or (2) communities and other entities responding to an immediate development opportunity that necessitates action sooner than can be accomplished through normal housing fund procedures. Up to 5 percent of the HOME funds may be used for this purpose.

25.10(1) Application procedure. Those applying for contingency funds shall submit a written request to IDED, Division of Community and Rural Development, 200 East Grand Avenue, Des Moines, Iowa 50309. The request shall include a description of the situation, the project budget including the amount requested from IDED, projected use of funds and an explanation of why the situation cannot be remedied though normal housing fund procedures.

25.10(2) Application review. Upon receipt of a request for contingency funding, IDED shall make a determination of whether the project is eligible for funding and notify the applicant of its determination. A project shall be considered eligible if it meets the following criteria:

a. Projects to address a threat to health and safety.

(1) An immediate threat must exist to health, safety or community welfare that requires immediate action.

(2) The threat must be the result of unforeseeable and unavoidable circumstances or events.

(3) No known alternative project or action would be more feasible than the proposed project.

(4) Sufficient other local, state or federal funds either are not available or cannot be obtained in the time frame required.

b. Projects to address an exceptional opportunity.

(1) A significant opportunity exists for the state that otherwise would be forgone if not addressed immediately.

(2) The opportunity is such that it is not possible to apply to the housing fund in a normal application time frame.

(3) The project meets the funding standards established by the review criteria set forth in this rule.

(4) Applicants can provide adequate information on total project design and cost as requested by IDED.

25.10(3) IDED reserves the right to request additional information on forms prescribed by IDED prior to making a final funding decision. IDED reserves the right to negotiate final project award and design components.

These rules are intended to implement Iowa Code section 15.108(1)"a."

ARC 9185A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development hereby gives Notice of Intended Action to adopt Chapter 65, "Recreation, Environment, Art and Cultural Heritage Initiative (REACH)--Community Attraction and Tourism Development Program," Iowa Administrative Code.

The proposed new rules establish program guidelines, describe application procedures, outline review criteria, and provide information on program administration.

Public comments concerning the proposed new chapter will be accepted until 4:30 p.m. on August 4, 1999. Interested persons may submit written or oral comments by contacting Mark Eckman, Division of Tourism, Department of Economic Development, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)242-4770.

A public hearing to receive comments about the proposed new chapter will be held on August 4, 1999, at 1 p.m. at the above address in the IDED main conference room. Individuals interested in providing comments at the hearing should contact Mark Eckman by 4 p.m. on August 3, 1999, to be placed on the hearing agenda.

These rules were also Adopted and Filed Emergency and are published herein as ARC 9186A. The content of that submission is incorporated by reference.

These rules are intended to implement 1999 Iowa Acts, House File 772, section 3(2) and sections 23 and 24.

ARC 9198A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code section 455B.474, the Environmental Protection Commission proposes to amend Chapter 135, "Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks," Iowa Administrative Code.

This amendment establishes requirements for analyzing for methyl tertiary-butyl ether (MTBE) in soil and water samples collected as part of investigations and corrective action at underground storage tank sites with petroleum contamination. This change is needed to implement 1999 Iowa Acts, House File 772, which became effective July 1, 1999.

This amendment was also Adopted and Filed Emergency and is published herein as ARC 9208A. The content of that submission is incorporated by reference.

The Department is providing an opportunity for public comment to the emergency adopted amendment. Any interested person may submit written comments on the proposed amendment on or before August 3, 1999. Written comments should be sent to the Department of Natural Resources, Attn: Jim Humeston, Wallace State Office Building, Des Moines, Iowa 50319.

This rule may have an impact on small businesses as provided in Iowa Code section 17A.31.

This amendment is intended to implement 1999 Iowa Acts, House File 772.

ARC 9194A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code section 505.8, the Insurance Division gives Notice of Intended Action to amend Chapter 27, "Preferred Provider Arrangements," Chapter 35, "Accident and Health Insurance," Chapter 40, "Health Maintenance Organizations," Chapter 71, "Small Group Health Benefit Plans," and Chapter 75, "Iowa Individual Health Benefit Plans," Iowa Administrative Code.

The proposed rules address a variety of health insurance carrier and policy requirements. Entities contracting with the Department of Human Services for the delivery of health care services must be licensed entities. Gag clauses are no longer allowed in accident and self-funded plans. Emergency services have been defined and must be a covered treatment for accident and self-funded plans subject to Insurance Division regulation. A carrier shall allow an enrollee to have direct access to certain providers regarding routine services. The net worth requirements for HMOs have been revised to conform to standard practice. The standard health benefit plans in the small group and individual markets shall provide benefits for costs of equipment, supplies and education for the treatment of diabetes.

Any person may make written comments on the proposed amendments on or before August 3, 1999. These comments should be directed Susan E. Voss, Projects Director,Insurance Division, 330 E. Maple Street, Des Moines,Iowa 50319. Comments may also be transmitted byE-mail to susan.voss@comm6.state.ia.us or by fax to (515)281-5692.

A public hearing will be held on August 3, 1999, at 10 a.m. at the offices of the Insurance Division, 330E. Maple Street, Des Moines, Iowa 50319. Persons wishing to speak should contact Susan E. Voss no later than August 2, 1999.

These amendments were also Adopted and Filed Emergency and are published herein as ARC 9213A. The content of that submission is incorporated by reference.

These amendments are intended to implement Iowa Code sections 514B.3 and 514B.33 and 1999 Iowa Acts, Senate File 276.

ARC 9204A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code section 505.8(2), the Insurance Division hereby gives Notice of Intended Action to rescind Chapter 43, "Annuity Mortality Tables for Use in Determining Reserve Liabilities for Annuities," Iowa Administrative Code, and to adopt a new Chapter 43 with the same title.

The proposed new chapter will adopt the National Association of Insurance Commissioners (NAIC) revised model regulation which recognizes updated mortality tables for the proper reserving for annuities. The two new tables that are being recognized are the 1994 Group Annuity Reserving (GAR) Table and the Annuity 2000 Mortality Table. The new chapter also gives guidance to insurers as to how these new mortality tables are to be used.

Any interested person may submit written comments on the proposed rules on or before August 3, 1999. These comments should be directed to Rosanne Mead, Assistant Commissioner, Insurance Division, 330 Maple Street, Des Moines, Iowa 50319. Comments may also be transmitted by E-mail to rosanne.mead@comm6.state.ia.us or by fax to (515)281-3059. Requests for a public hearing regarding this rule making must be submitted to the same address on or before August 3, 1999.

These rules are intended to implement Iowa Code sections 508.36(3)"a"(1) and 508.36(3)"a"(3)(c).

The following amendment is proposed.

Rescind 191--Chapter 43 and adopt the following new chapter in lieu thereof:

191--43.1(508) Purpose. The purpose of this chapter is to recognize the following mortality tables for use in determining the minimum standard of valuation for annuity and pure endowment contracts: the 1983 Table "a" and 1983 Group Annuity Mortality (1983 GAM) Table, the Annuity 2000 Mortality Table, and the 1994 Group Annuity Reserving (1994 GAR) Table.

191--43.2(508) Definitions. For purposes of this chapter, the following definitions shall apply:

"1983 GAM Table" means that mortality table developed by the Society of Actuaries Committee on Annuities and adopted as a recognized mortality table for annuities in December 1983 by the National Association of Insurance Commissioners.

"1983 Table `a'" means that mortality table developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity Valuation and adopted as a recognized mortality table for annuities in June 1982 by the National Association of Insurance Commissioners.

"1994 GAR Table" means that mortality table developed by the Society of Actuaries Group Annuity Valuation Table Task Force and shown on pages 866 and 867 of Volume XLVII of the Transactions of the Society of Actuaries (1995). The 1994 GAR Table was adopted as a recognized mortality table for annuities in December 1996 by the National Association of Insurance Commissioners.

"Annuity 2000 Mortality Table" means that mortality table developed by the Society of Actuaries Committee on Life Insurance Research and shown on page 240 of Volume XLVII of the Transactions of the Society of Actuaries (1995). The Annuity 2000 Mortality Table was adopted as a recognized mortality table for annuities in December 1996 by the National Association of Insurance Commissioners.

191--43.3(508) Individual annuity or pure endowment contracts.

43.3(1) Except as provided in subrules 43.3(2) and 43.3(3), the 1983 Table "a" is recognized and approved as an individual annuity mortality table for valuation and, at the option of the company, may be used for purposes of determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1980.

43.3(2) Except as provided in subrule 43.3(3), either the 1983 Table "a" or the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after December 30, 1985.

43.3(3) Except as provided in subrule 43.3(4), the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 2000.

43.3(4) The 1983 Table "a" without projection is to be used for determining the minimum standard of valuation for an individual annuity or pure endowment contract issued on or after January 1, 2000, solely when the contract is based on life contingencies and is issued to fund periodic benefits arising from:

1. Settlements of various forms of claims pertaining to court settlements or out-of-court settlements from tort actions;

2. Settlements involving similar actions such as workers' compensation claims; or

3. Settlements of long-term disability claims where a temporary or life annuity has been used in lieu of continuing disability payments.

191--43.4(508) Group annuity or pure endowment contracts.

43.4(1) Except as provided in subrules 43.4(2) and 43.4(3), the 1983 GAM Table, the 1983 Table "a" and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation and, at the option of the company, any one table may be used for purposes of valuation for any annuity or pure endowment purchased on or after January 1, 1980, under a group annuity or pure endowment contract.

43.4(2) Except as provided in subrule 43.4(3), either the 1983 GAM Table or the 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after December 30, 1985, under a group annuity or pure endowment contract.

43.4(3) The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 2000, under a group annuity or pure endowment contract.

191--43.5(508) Application of the 1994 GAR Table. In using the 1994 GAR Table, the mortality rate for a person aged x in year (1994 + n) is calculated as follows:

where q_x¹⁹⁹⁴ and AA_x are as specified in the 1994 GAR Table.

191--43.6(508) Separability. If any provision of these rules or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of the rules and the application of such provision to other persons or circumstances shall not be affected thereby.

These rules are intended to implement Iowa Code sections 508.36(3)"a"(1) and 508.36(3)"a"(3)(c).

ARC 9178A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 80B.11(5), 80B.11(6) and 80B.11(8), the Iowa Law Enforcement Academy gives Notice of Intended Action to amend Chapter 2, "Minimum Standards for Iowa Law Enforcement Officers," Iowa Administrative Code.

The proposed amendments alter residency requirements to permit officers to reside within a standard metropolitan statistical area if their jurisdiction is part of such an area, add 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, delete obsolete sections from the chapter, and make provisions for officers affected by their jurisdictions entering into agreements under Iowa Code chapter 28E for the sharing of law enforcement services.

Any interested person may make written comments or suggestions on these proposed amendments on or before August 3, 1999. Such written materials should be sent to Gene W. Shepard, Director, Iowa Law Enforcement Academy, P.O. Box 130, Johnston, Iowa 50131-0130, or faxed to (515)242-5471.

There will be a public hearing on these proposed amendments on August 3, 1999, at 9 a.m. in the Conference Room at the Iowa Law Enforcement Academy, Camp Dodge, Johnston, Iowa, at which time persons may present their views 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 amendments.

These amendments were approved by the Iowa Law Enforcement Academy Council on April 1, 1999, and on June 3, 1999.

These amendments are intended to implement Iowa Code sections 80B.11(5), 80B.11(6) and 80B.11(8).

The following amendments are proposed.

ITEM 1. Amend subrule 2.1(1) as follows:

2.1(1) Is a citizen of the United States and a resident of Iowa or intends to become a resident upon being employed.; provided that, with the approval of the Iowa law enforcement academy council, a city located on a state border that is within a standard metropolitan statistical area may allow officers to reside in an adjacent state within that statistical area upon written application by the agency administrator to the council showing substantial reason and documenting undue hardship. Railway special agents, who are approved by the commissioner of public safety as special agents of the department, shall be exempt from the Iowa residency requirement.

ITEM 2. Amend subrule 2.1(3) as follows:

2.1(3) Has a valid driver's or chauffeur's license issued by the state of Iowa. Railway special agents, who are approved by the commissioner of public safety as special agents of the department, and officers who are allowed to reside in an adjacent state within a standard metropolitan statistical area shall be required to possess a valid driver's or chauffeur's license.

ITEM 3. Amend subrule 2.1(5) as follows:

2.1(5) Is of good moral character as determined by a thorough background investigation including a fingerprint search conducted of local, state and national fingerprint files and has not been convicted of a felony or a crime involving moral turpitude. Moral turpitude is defined as an act of baseness, vileness, or depravity in the private and social duties which a person owes to another person, or to society in general, contrary to the accepted and customary rule of right and duty between person and person. It is conduct that is contrary to justice, honesty or good morals. The following nonexclusive list of acts has been held by the courts to involve moral turpitude: income tax evasion, perjury, or its subornation, theft, indecent exposure, sex crimes, conspiracy to commit a crime, defrauding the government and illegal drug sales. Various factors, however, may cause an offense which is generally not regarded as constituting moral turpitude to be regarded as such. For example, a record of a number of convictions for simple assault would involve moral turpitude, whereas a singular act would not. The offenses of assault, domestic abuse, or other offenses of domestic violence, stalking, and any offense in which a weapon was used in the commission are crimes involving moral turpitude.

When the hiring authority is prohibited from receiving criminal history data as specified under Iowa Code chapter 692, then the fingerprints will be taken by a police department under civil service, a sheriff's department or a state law enforcement agency and submitted to the Iowa law enforcement academy director for search.

ITEM 4. Amend subrule 2.2(1) as follows:

2.2(1) Required cognitive test.

a. Applicants for a deputy sheriff position shall take the Entry Level Department Selection Procedure tests which were supplied to all county civil service commissions in October of 1980. A minimum satisfactory score to be eligible for employment shall be 80. Entry-level applicants for all law enforcement positions in the state of Iowa shall take the Stanard & Associates' National Police Officer Selection Test (POST).

b. Other than deputy sheriff positions, applicants for law enforcement positions, in the final selection process after June 18, 1986, shall successfully complete the Science Research Associates Verbal Form (SRA) cognitive test designated by the Iowa law enforcement academy. The Science Research Associates Verbal Form cognitive test, taken by applicants in the final selection process after June 30, 1986, must have that test administered by the Iowa law enforcement academy or its designee and scored by the Iowa law enforcement academy. Minimum satisfactory score on the Science Research Associates Verbal Form cognitive test (SRA) is a raw score of 37.

c. Effective November 1, 1994, and prior to June 1, 1995, hiring agencies and civil service commissions shall have the option of requiring applicants for law enforcement positions to take the Stanard & Associates' National Police Officer Selection Test (POST) in lieu of the tests designated in paragraphs "a" and "b" of this subrule.

Effective June 1, 1995, the Stanard & Associates' National Police Officer Selection Test shall be the only designated cognitive test and shall replace those tests designated in paragraphs "a" and "b" above.

b. The minimum satisfactory score to be eligible for employment is 70 percent on each of the four sections of this examination. Agencies and civil service commissions may require a higher satisfactory score than 70 percent on each or any of the sections of the test.

ITEM 5. Amend subrule 2.2(4) as follows:

2.2(4) Cognitive test.

a. At the discretion of the employing agency, prescribed the cognitive tests test (POST) may be administered by qualified individuals who receive prior approval to administer those tests by the Iowa law enforcement academy.

b. The Science Research Associates Verbal Form cognitive test (SRA) may be administered to applicants not in the final selection process.

c. All testing materials shall be forwarded to the Iowa law enforcement academy within seven days of the testing date.

d b. Arrangements for and administration of the Stanard & Associates' National Police Officer Selection Test (POST) shall be in accordance with directions of the Iowa law enforcement academy.

ITEM 6. Rescind subrule 2.2(7), paragraph "d."

ITEM 7. Amend paragraph 2.2(8)"a" as follows:

a. The Iowa law enforcement academy evaluations of the Minnesota Multiphasic Personality Inventory may only be used for 12 months to comply with these mandated testing rules. Any applicants applicant who have has not been hired or placed upon a civil service certified list within 12 months of their taking the Minnesota Multiphasic Personality Inventory test must retake the examination and the results be considered by the hiring authority before being hired.

ITEM 8. Rescind subrule 2.2(8), paragraph "b."

ITEM 9. Renumber 501--2.4(80B) as 501--2.5(80B) and adopt the following new rule:

501--2.4(80B) Officers in agencies under intergovernmental agreements. The provisions of rule 2.1(80B) do not need to be reverified by officers when jurisdictions enter into an intergovernmental agreement under the provisions of Iowa Code chapter 28E for the sharing of law enforcement services by those jurisdictions and officers if the execution, filing and recording of the agreement conforms to the requirements of Iowa law and a certified copy is provided to the director of the academy; however, this does not apply to the establishment of a unified law enforcement district as defined in Iowa Code section 28E.21, wherein a new legal entity or political subdivision is established.

ARC 9190A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code sections 421.14 and 422.68, the Department of Revenue and Finance hereby gives Notice of Intended Action to amend Chapter 18, "Taxable and Exempt Sales Determined by Method of Transaction or Usage," Iowa Administrative Code.

Recently, the Iowa Code was amended to exempt from tax the services of persons who provide on-line access to the Internet for computer users. The exemption is effective July 1, 1999. The Department's rule explaining the sales tax on communication services is amended to reflect this change in the law.

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

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.31(4). The Department will issue a regulatory flexibility analysis as provided in Iowa Code sections 17A.31 to 17A.33 if a written request is filed by delivery or by mailing postmarked no later than August 3, 1999, 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 Governor, a political subdivision, at least 25 persons who qualify as a small business under Iowa Code sections 17A.31 to 17A.33, or an organization of small businesses representing at least 25 persons which is registered with this agency under Iowa Code sections 17A.31 to 17A.33.

Any interested person may make written suggestions or comments on these proposed amendments on or before September 1, 1999. Such written comments should be directed to the Policy Section, Compliance Division, Departmentof Revenue and Finance, Hoover State Office Building,P.O. Box 10457, Des Moines, Iowa 50306.

Persons who want to orally convey their views should contact the Policy Section, Compliance Division, Department of Revenue and Finance, at (515)281-4250 or at the Department of Revenue and Finance offices on the fourth floor of the Hoover State Office Building.

Requests for a public hearing must be received by August 25, 1999.

These amendments were also Adopted and Filed Emergency and are published herein as ARC 9191A. The content of that submission is incorporated by reference.

These amendments are intended to implement Iowa Code section 422.45 as amended by 1999 Iowa Acts, House File 748.

ARC 9209A

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)"b."

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to the authority of Iowa Code section 12.34(2), the Treasurer of State hereby gives Notice of Intended Action to amend Chapter 4, "Linked Investments for Tomorrow (LIFT)," Iowa Administrative Code.

This amendment establishes the procedures which govern the participation, forms, and use of proceeds in the Traditional Livestock Producer's LIFT program.

Any interested person may make written or oral suggestions or comments on this proposed amendment on or before August 6, 1999. Comments should be directed to Deputy Treasurer Bret L. Mills, Treasurer of State, Room 114, State Capitol Building, Des Moines, Iowa 50319; telephone (515)281-8261.

Also, there will be a public hearing on August 6, 1999, at 1 p.m. in the Treasurer of State's office located at the State Capitol Building, Des Moines, Iowa. Persons may present their views at this public hearing either orally or in writing. Persons who wish to make oral presentations at the public hearing should contact Deputy Treasurer Bret Mills, Treasurer of State, at least one day prior to the date of the public hearing.

This amendment is intended to implement Iowa Code section 12.34 as amended by 1999 Iowa Acts, House File 779, section 2, and 1999 Iowa Acts, House File 779, section 4.

This amendment is also Adopted and Filed Emergency and is published herein as ARC 9210A. The content of that submission is incorporated by reference.

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

June 1, 1998 -- June 30, 1998 7.75%

July 1, 1998 -- July 31, 1998 7.75%

August 1, 1998 -- August 31, 1998 7.50%

September 1, 1998 -- September 30, 1998 7.50%

October 1, 1998 -- October 31, 1998 7.25%

November 1, 1998 -- November 30, 1998 6.75%

December 1, 1998 -- December 31, 1998 6.50%

January 1, 1999 -- January 31, 1999 6.75%

February 1, 1999 -- February 28, 1999 6.75%

March 1, 1999 -- March 31, 1999 6.75%

April 1, 1999 -- April 30, 1999 7.00%

May 1, 1999 -- May 31, 1999 7.25%

June 1, 1999 -- June 30, 1999 7.25%

July 1, 1999 -- July 31, 1999 7.50%

ARC 9183A

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts Chapter 20, "ACE PIAP Program," Iowa Administrative Code.

The new chapter establishes program guidelines, describes application procedures, outlines review criteria, and provides information on program administration.

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 there are pending projects that involve construction activities that need to begin as soon as possible. The Department feels that it is important to make every effort to allow construction to begin before the close of the 1999 construction season. Delaying these projects would unnecessarily postpone the availability of program benefits. Implementing these rules on an emergency basis allows the goals of the program to be met expeditiously and in response to client needs.

The Department finds, pursuant to Iowa Code section 17A.5(2)"b"(2), that the normal effective date of the rules, 35 days after publication, should be waived and the rules be made effective upon filing on June 18, 1999, as these rules confer a benefit on the public.

The agency is taking the following steps to notify potentially affected parties of the effective date of the rule: publishing the final rules in the Iowa Administrative Bulletin, providing free copies on request, and having copies available wherever requests for information about the program are likely to be made.

The IDED Board adopted these rules on June 18, 1999.

These rules became effective on June 18, 1999.

These rules are also published herein under Notice of Intended Action as ARC 9182A to allow public comment.

These rules are intended to implement 1999 Iowa Acts, House File 772 and Senate File 465.

The following new chapter is adopted.

261--20.1(78GA,HF772,SF465) Purpose. The purpose of the ACE PIAP program is to provide capital funds for accelerated career education programs. Funding for the program is from the physical infrastructure assistance fund. The goal of the program is to provide an enhanced skilled workforce in Iowa.

261--20.2(78GA,HF772,SF465) Definitions.

"Accelerated career education program" or "ACE" means the program established pursuant to 1999 Iowa Acts, Senate File 465, section 3.

"Agreement" means a program agreement referred to in 1999 Iowa Acts, Senate File 465, section 3, between an employer and a community college.

"Community college" means a community college established under Iowa Code chapter 260C or a consortium of two or more community colleges.

"Employee" means a person employed in a program job.

"Employer" means a business or consortium of businesses engaged in interstate or intrastate commerce for the purposes of manufacturing, processing or assembling products, construction, conducting research and development, or providing services in interstate or intrastate commerce, but excluding retail services.

"Highly skilled job" means a job with a broadly based, high-performance skill profile including advanced computation and communication skills, technology skills and workplace behavior skills, and for which an applied technical education is required.

"IDED" or "department" means the Iowa department of economic development.

"IDED board" means the Iowa economic development board authorized under Iowa Code section 15.103.

"Participant" means an individual who is enrolled in an accelerated career education program at a community college.

"Participant position" means the individual student enrollment position available in an accelerated career education program.

"PIAP" means the physical infrastructure assistance program established in Iowa Code section 15E.175.

"Program capital cost" means classroom and laboratory renovation, new classroom and laboratory construction, site acquisition or preparation.

"Program job" means a highly skilled job available from an employer pursuant to a program agreement.

"Program job position" means a job position which is planned or available for an employee by the employer pursuant to a program agreement.

"Program operating costs" means all necessary and incidental costs of providing program services.

"Program services" means services that include all of the following provided they are pursuant to a program agreement: program needs assessment and development, job task analysis, curriculum development and revision, instruction, instructional materials and supplies, computer software and upgrades, instructional support, administrative and student services, related school to career training programs, skill or career interest assessment services and testing and contracted services.

"Vertical infrastructure" means land acquisition and construction, major renovation and major repair of buildings, all appurtenant structures, utilities, site development and equipment installation. Vertical infrastructure does not include equipment, routine, recurring maintenance or operational expenses or leasing of a building, appurtenant structure, or utility without a lease-purchase agreement.

261--20.3(78GA,HF772,SF465) Eligibility.

20.3(1) Eligible programs. All programs must demonstrate increased capacity to enroll additional students. To be eligible, a program must be either:

a. A credit career, vocational, or technical education program resulting in the conferring of a certificate, diploma, associate of science degree, or associate of applied science degree; or

b. A credit equivalent career, vocational, or technical educational program consisting of not less than 540 contact hours of classroom and laboratory instruction and resulting in the conferring of a certificate or other recognized,competency-based credential.

20.3(2) Threshold requirements. To be considered for funding, the following threshold requirements shall be met:

a. There must be documentation of pledged program positions paying at least 200 percent of the poverty level for a family of two. The wage for the pledged job will be at the time that any training or probationary period has been completed. If the wage designated is after a training or probationary period, the employer must document that there is a plan in place regarding time frames for transition to the permanent full-time wage, and the employer must provide documentation that these time frames are reasonable and that the employer has previously adhered to the time schedule.

b. Documentation must be provided to demonstrate that the program meets the definition of an eligible program as detailed in subrule 20.3(1).

c. An applicant must demonstrate that the project builds capacity of the community college to train additional students for available jobs.

d. Documentation must be supplied to establish a 20 percent employer cash or in-kind match for program operating funds.

e. An applicant shall describe how the project enhances geographic diversity of project offerings across the state.

f. The community college must document that other private or public sources of funds are maximized prior to ACE capital cost funding.

g. ACE program capital cost projects must enhance the geographic diversity of state investment in Iowa. The IDED board will continuously review projects to ensure that there is statewide impact. The IDED board will prioritize projects to ensure geographic diversity.

20.3(3) Vertical infrastructure. Funds shall be used only for ACE program capital costs for projects that meet the definition of vertical infrastructure.

261--20.4(78GA,HF772,SF465) Funding allocation.

20.4(1) Base allocation.

a. For fiscal year 1999-2000, $3 million shall be allocated equally among the community colleges in the state. If a community college fails to obligate or encumber any of its allocation by April 1 of the fiscal year, the funds for that community college will revert back to the state level to be awarded to other community colleges on a competitive basis as described in subrule 20.4(2).

b. Community colleges shall submit an application, with an accompanying program agreement, to access the allocated funds. The application and program agreement shall document that all ACE eligibility requirements as detailed in rule 20.3(78GA,HF772,SF465) have been met.

c. All applications and program agreements for allocated funds that meet the ACE eligibility requirements will be forwarded to the IDED board for recommended funding.

20.4(2) Competitive awards. ACE program capital funds that are not allocated to a community college will be made competitively available to community colleges for ACE program capital costs.

20.4(3) Evaluation criteria for competitive awards. Applications and accompanying program agreements meeting all ACE eligibility requirements will be prioritized and rated using the following point criteria:

a. The degree to which the applicant adequately demonstrates a lack of existing public or private infrastructure for development of the partnership. There must be a demonstration that the project will build capacity in order for the project to be considered. Capacity will be measured in terms of jobs that are pledged, students that are interested in the program area and the capacity that is built at the community college to undertake the programming. Up to 33 points will be awarded.

b. Demonstration that the jobs resulting from the partnership would include wages, benefits and other attributes that would improve the quality of employment within the region. Projects where the average wage for the pledged jobs exceeds the regional or county average wage, whichever is lower for the location where the training is to be provided, will be awarded points based upon the percentage that the average wage of the pledged jobs exceeds the applicable average wage. Up to 33 points will be awarded.

c. Evidence of local, public or private contributions that meet the requirements of 1999 Iowa Acts, Senate File 465. Projects will be rated based upon the percentage of match that is pledged to the ACE program capital cost for the project. Up to 34 points will be awarded.

Applications that do not receive at least 66 out of 100 will not be forwarded to the IDED board for review. Projects will be competing against each other for IDED board approval, and the number of points that a project receives will be considered in the award process.

261--20.5(78GA,HF772,SF465) Application procedures.

20.5(1) Preapplication. A preapplication process will be available to provide applicants with feedback as the project is developed. A preapplication can be made prior to employer sign off or community college board of director approval. Preapplications for projects that will cross community college boundaries, or for projects that involve employers from multiple community college areas, must have sign off from all college areas involved. A successful preapplication review will result in funds being set aside for the project from the competitive funds pool for 60 days, pending the receipt of a final application. Subsequent to the voluntary preapplication process, an application with an accompanying program agreement will be required to request funding from ACE PIAP funds.

20.5(2) Final application. Applicants shall submit a final application to IDED to request program funds.

20.5(3) Staff review and recommendation. A committee of IDED staff will review and rate applications based upon the rating criteria. Based upon this review, a decision will be made regarding submittal of the application to the IDED board for action.

20.5(4) IDED board action. The IDED board will review ACE program capital cost projects meeting the requirements prescribed in these rules. A program agreement, which is approved by the community college board of directors, must be attached to the final application. Approval or denial of applications that are submitted that are complete and in final form shall be made no later than 60 days following receipt of the application by the department. Subsequent to board approval, an award letter will be sent. The award letter will be followed by a contract. After a signed contract is in place, funding for a project may be requested.

261--20.6(78GA,HF772,SF465) Program agreements.

20.6(1) Program agreements will be developed by an employer, a community college and any employee of an employer representing a program job. Any community college that has an employer from its merged area involved in an ACE project must enter into the agreement. If a bargaining unit is in place with the employer pledging the jobs, a representative of the bargaining unit shall take part in the development of the program agreement. All participating parties must sign the program agreement. The agreement must include employer certification of contributions that are made toward the program costs.

20.6(2) A program agreement shall include, at a minimum, the following terms: match provided by the employer; tuition, student fees, or special charges fixed by the community college board of directors; guarantee of employer payments; type and amount of funding sources that will be used to pay for program costs; description of program services and implementation schedule; the term of the agreement, not to exceed five years; the employer's agreement to interview graduates for full-time positions and provide hiring preference, for employers with more than four sponsored participants; certification that a job offer will be made to at least 25 percent of those participants that complete the program; an agreement by the employer to provide a wage level of no less than 200 percent of the federal poverty guideline for a family of two; a provision that the employer does not have to fulfill the job offer requirement if the employer experiences an economic downturn; a provision that the participants will agree to interview with the employer following completion of the program; and default procedures.

261--20.7(78GA,HF772,SF465) Monitoring. IDED will monitor ACE PIAP projects to ensure compliance with all program requirements.

261--20.8(78GA,HF772,SF465) Customer tracking system. Participants in the ACE program shall be included in the customer tracking system implemented by IWD. In order to achieve this, social security numbers on all ACE program trainees will be required.

261--20.9(78GA,HF772,SF465) Program costs recalculation. Program costs shall be calculated or recalculated on an annual basis based on the required program services for a specific number of participants. Agreement updates reflecting this recalculation must be submitted to IDED annually to review compliance with program parameters.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9186A

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts Chapter 65, "Recreation, Environment, Art and Cultural Heritage Initiative (REACH)--Community Attraction and Tourism Development Program," Iowa Administrative Code.

The new chapter establishes program guidelines, describes application procedures, outlines review criteria, and provides information on program administration.

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 there are projects pending that need to have applications submitted for funding in order to get an agency decision quickly. If funded, the projects need to begin as soon as possible to take advantage of the summer construction season. This emergency filing would also increase the lead time for local organizations to start the planning process to develop eligible project applications.

The Department finds, pursuant to Iowa Code section 17A.5(2)"b"(2), that the normal effective date of the rules, 35 days after publication, should be waived and the rules be made effective upon filing on July 1, 1999, as these rules confer a benefit on the public.

The agency is taking the following steps to notify potentially affected parties of the effective date of the rule: publishing the final rules in the Iowa Administrative Bulletin, providing free copies on request, and having copies available wherever requests for information about the program are likely to be made.

The IDED Board adopted these rules on June 18, 1999.

These rules became effective on July 1, 1999.

These rules are also published herein under Notice of Intended Action as ARC 9185A to allow for public comment.

These rules are intended to implement 1999 Iowa Acts, House File 772, section 3(2) and sections 23 and 24.

The following new chapter is adopted.

261--65.1(78GA,HF772) Purpose. The community attraction and tourism development program, a component of the recreation, environment, art and cultural heritage initiative (REACH), is designed to assist communities in the development and creation of multiple-purpose attraction and tourism facilities.

261--65.2(78GA,HF772) Definitions. When used in this chapter, unless the context otherwise requires:

"Activity" means one or more specific activities or proj-ects assisted with community attraction and tourism development funds.

"Attraction" means a permanently located recreational, cultural, or entertainment activity, or event that is available to the general public.

"Community" or "political subdivision" means a city or county, or an entity established pursuant to Iowa Code chapter 28E.

"Department" or "IDED" means the Iowa department of economic development.

"Economic development organization" means an entity organized to position a community to take advantage of economic development opportunities and strengthen a community's competitiveness as a place to work and live.

"Float loan" means a short-term loan (maximum of 30 months) from obligated but unexpended funds.

"Fund" means the community attraction and tourism fund established pursuant to 1999 Iowa Acts, House File 772, section 3(2).

"Loan" means an award of assistance with the requirement that the award be repaid with term, interest rate, and other conditions specified as part of the award. A deferred loan is one for which the payment of principal, interest, or both, is not required for some specified period. A forgivable loan is one for which repayment is eliminated in part or entirely if the borrower satisfies specified conditions.

"Local support" means endorsement by local individuals or entities that have a substantial interest in a project, particularly by those whose opposition or indifference would hinder the activity's success.

"Private organization" means a corporation, partnership, or other organization that is operated for profit.

"Public organization" means a not-for-profit economic development organization or other not-for-profit organization that sponsors or supports community or tourism attractions and activities.

"Recipient" means the entity under contract with IDED to receive community attraction and tourism development funds and undertake the funded activity.

"Subrecipient" means a private organization or other entity operating under an agreement or contract with a recipient to carry out a funded community attraction and tourism development activity.

"Vertical infrastructure" means land acquisition and construction, major renovation and major repair of buildings, all appurtenant structures, utilities, site development, and recreational trails. "Vertical infrastructure" does not include routine, recurring maintenance or operational expenses or leasing of a building, appurtenant structure, or utility without a lease-purchase agreement.

261--65.3(78GA,HF772) Program components and eligibility requirements. There are three direct components to the community attraction and tourism development program. The first component relates to community attraction, tourism or leisure activities that are sponsored by political subdivisions and public organizations. This component is referred to as the community attraction component. The second component relates to the encouragement and creation of public-private partnerships for exploring the development of new community tourism and attraction activities. This component is referred to as the project development component. A third component provides community attraction and tourism development funds for interim financing for eligible activities under the community attraction component. This component is referred to as the interim financing component.

65.3(1) Community attraction component. The objective of the community attraction component is to provide financial assistance for community-sponsored attraction and tourism activities. Community attraction activities may include but are not limited to the following: museums, theme parks, cultural and recreational centers, sports arenas and other attractions.

65.3(2) Project development component. The department, at its discretion, may also provide funding for project development related to proposed activities under this program. Project development assistance could be for the purpose of assisting in departmental evaluation of proposals, or could be one of the proposed activities in a funding request whose further project development could reasonably be expected to lead to an eligible community attraction and tourism development activity. Feasibility studies are eligible for assistance under this component.

65.3(3) Interim financing component.

a. The objective of the community attraction and tourism development interim financing component is to provide 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 IDED in an amount equal to or greater than the principal amount of the loan.

b. Applications for float loans shall be processed, reviewed and considered on a first-come, first-served basis to the extent funds are available. Applications that are incomplete or require additional information, investigation or extended negotiation may lose funding priority. Applications for float loans shall meet all other criteria required for the community attraction component.

261--65.4(78GA,HF772) Allocation of funds.

65.4(1) Except as otherwise noted in this rule, all community attraction and tourism development funds shall be awarded for activities as specified in rule 65.3(78GA, HF772).

65.4(2) IDED may retain a portion of community attraction and tourism development funds for administrative costs associated with program implementation and operation. The percent of funds retained for administrative costs shall not exceed 1 percent in any year.

65.4(3) For the fiscal year beginning July 1, 1999, $400,000 is allocated from the fund to be used to provide grants to up to three political subdivisions, in an amount not to exceed $200,000 per grant. The purpose of the three grants is to study the feasibility and viability of developing and creating a multiple-purpose attraction and tourism facility.

261--65.5(78GA,HF772) Eligible applicants. Eligible applicants for community attraction and tourism development funds include political subdivisions and public organizations.

65.5(1) Any eligible applicant may apply directly or on behalf of a subrecipient.

65.5(2) Any eligible applicant may apply individually or jointly with another eligible applicant or other eligible applicants.

261--65.6(78GA,HF772) Eligible activities and forms of assistance--all components.

65.6(1) Eligible activities include those which are related to a community or tourism 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. Eligible 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 IDED.

65.6(2) 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 IDED.

65.6(3) Financial assistance for an eligible activity may be provided in the form of a multiyear award to be paid in increments over a period of years, subject to the availability of funds.

65.6(4) IDED reserves the right to negotiate the amount and terms of an award.

65.6(5) Recipients may use community attraction and tourism funds in conjunction with other sources of funding including the local recreation infrastructure grants program administered by the department of natural resources and the Iowa historic site preservation program administered by the department of cultural affairs. IDED may consult with appropriate staff from the department of cultural affairs and the department of natural resources to coordinate the review of applications under the programs.

261--65.7(78GA,HF772) Ineligible projects.

65.7(1) The department shall not approve an application for assistance under this program to refinance an existing loan.

65.7(2) An applicant may not receive more than one award under this program for a single project. However, previously funded projects may receive an additional award(s) if the applicant demonstrates that the funding is to be used for a significant expansion of the project, a new project, or a project that results from previous project-development assistance.

65.7(3) The department shall not approve an application for assistance in which community attraction and tourism development funding would constitute more than 50 percent of the total project costs. A portion of the resources provided by the applicant for project costs may be in the form of in-kind or noncash contributions.

261--65.8(78GA,HF772) Threshold application requirements. To be considered for funding under the community attraction and tourism development program, an application must meet the following threshold requirements:

65.8(1) There must be demonstrated local support for the proposed activity.

65.8(2) A need for community attraction and tourism development program funds must exist after other financial resources have been identified for the proposed activity.

65.8(3) Some portion of the proposed activity must involve the creation or renovation of vertical infrastructure.

261--65.9(78GA,HF772) Application review criteria. Applications meeting the threshold requirements of rule 65.8(78GA,HF772) will be reviewed by IDED staff. IDED staff shall evaluate and rank applications based on the following criteria:

65.9(1) Feasibility. The feasibility of the existing or proposed facility to remain a viable enterprise (0-25 points). Rating factors for this criterion include, but are not limited to, the following: initial capitalization, project budget, financial projections, marketing analysis, marketing plan, management team, and operational plan. In order to be eligible for funding, proposals must score at least 15 points on this rating factor.

65.9(2) Economic impact (0-25 points). Number of jobs created and other measure of economic impact including long-term tax generation. The evaluation of the economic impact of a proposed activity shall also include a review of the wages, benefits, including health benefits, safety, and other attributes of the activity that would improve the quality of attraction and tourism employment in the community. Additionally, the economic impact of an activity may also be reviewed based on the degree to which the activity enhances the quality of life in a community and contributes to the community's efforts to retain and attract a skilled workforce. In order to be eligible for funding, proposals must score at least 15 points on this rating factor.

65.9(3) Leveraged activity. The degree to which the facility will stimulate the development of other community attraction and tourism activities (0-25 points). In order to be eligible for funding, proposals must score at least 15 points on this rating factor.

65.9(4) Geographic diversity. The extent to which facilities are located in different regions of the state (0-10 points.).

65.9(5) Local match. The proportion of local match to be contributed to the project, and the extent of public and private participation (0-15 points).

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

261--65.10(78GA,HF772) Application procedure. Subject to availability of funds, applications are reviewed and rated by IDED staff on an ongoing basis. Applications will be reviewed by staff for completeness and eligibility. If additional information is required, the applicant shall be provided with notice, in writing, to submit additional information. The IDED staff may refer applications to the project development component, subject to the availability of funds. Recommendations from the IDED staff will be submitted to the director of the department for final approval, denial or deferral.

65.10(1) Application forms shall be available upon request from IDED, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)242-4770.

65.10(2) IDED may provide technical assistance to applicants as necessary. IDED staff may conduct on-site evaluations of proposed activities.

65.10(3) A comprehensive business plan must accompany the application and shall include at least the following information: initial capitalization including a description of sources of funding, project budget, financial projections, marketing analysis, marketing plan, management team, and the operational plan including a time line for implementing the activity. Additionally, applicants shall also provide the following information: the number of jobs to be created, and the wages and benefits associated with those jobs; direct measures of economic impact including long-term tax generation, but excluding the use of economic multipliers; a description of the current attraction and tourism employment opportunities in the community including information about wages, benefits and safety; and a description of how the activity will enhance the quality of life in a community and contribute to the community's efforts to retain and attract a skilled workforce.

261--65.11(78GA,HF772) Administration.

65.11(1) Administration of awards.

a. A contract shall be executed between the recipient and IDED. These rules and applicable state laws and regulations shall be part of the contract.

b. The recipient must execute and return the contract to IDED within 45 days of transmittal of the final contract from IDED. Failure to do so may be cause for IDED to terminate the award.

c. Certain activities may require that permits or clearances be obtained from other state or local agencies before the activity may proceed. Awards may be conditioned upon the timely completion of these requirements.

d. Awards may be conditioned upon commitment of other sources of funds necessary to complete the activity.

e. Awards may be conditioned upon IDED receipt and approval of an implementation plan for the funded activity.

65.11(2) Requests for funds. Recipients shall submit requests for funds in the manner and on forms prescribed by IDED. Individual requests for funds shall be made in an amount equal to or greater than $500 per request, except for the final draw of funds.

65.11(3) Record keeping and retention. The recipient shall retain all financial records, supporting documents and all other records pertinent to the community attraction and tourism development activity for three years after contract closeout. Representatives of IDED shall have access to all records belonging to or in use by recipients pertaining to community attraction and tourism development funds.

65.11(4) Performance reports and reviews. Recipients shall submit performance reports to IDED in the manner and on forms prescribed by IDED. Reports shall assess the use of funds and progress of activities. IDED may perform any reviews or field inspections necessary to ensure recipient performance.

65.11(5) Amendments to contracts. Any substantive change to a contract shall be considered an amendment. Changes include time extensions, budget revisions and significant alteration of the funded activities that change the scope, location, objectives or scale of the approved activity. Amendments must be requested in writing by the recipient and are not considered valid until approved in writing by IDED following the procedure specified in the contract between the recipient and IDED.

65.11(6) Contract closeout. Upon contract expiration, IDED shall initiate contract closeout procedures.

65.11(7) Compliance with state and local laws and regulations. Recipients shall comply with these rules, with any provisions of the Iowa Code governing activities performed under this program and with applicable local regulations.

65.11(8) Remedies for noncompliance. At any time before contract closeout, IDED may, for cause, find that a recipient is not in compliance with the requirements of this program. At IDED's discretion, remedies for noncompliance may include penalties up to and including the return of program funds to IDED. Reasons for a finding of noncompliance include but are not limited to the recipient's use of funds for activities not described in the contract, the recipient's failure to complete funded activities in a timely manner, the recipient's failure to comply with applicable state or local rules or regulations or the lack of a continuing capacity of the recipient to carry out the approved activity in a timely manner.

These rules are intended to implement 1999 Iowa Acts, House File 772, section 3, subsection 2, and sections 23 and 24.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9208A

Pursuant to the authority of Iowa Code section 455B.474, the Environmental Protection Commission hereby amends Chapter 135, "Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks," Iowa Administrative Code.

This amendment establishes requirements for analyzing for methyl tertiary-butyl ether (MTBE) in soil and water samples collected as part of investigations and corrective action at underground storage tank sites with petroleum contamination. This change is needed to implement 1999 Iowa Acts, House File 772, which became effective July 1, 1999.

1999 Iowa Acts, House File 772, section 15, paragraph (4c), requires the following: "At sites where groundwater or soil monitoring is required, pursuant to section 455B.474, subsection 1, paragraph "d," "f," or "h," the department of natural resources shall require that monitoring include testing for the presence of methyl tertiary butyl ether from the locations where other sample analyses are required. The department shall provide regular updates to the interim committee established in paragraph "b" as required by the interim committee. The department shall report the findings and recommendations of the testing to the general assembly prior to the 2000 Session of the Seventy-eighth General Assembly." The provision became effective July 1, 1999.

In compliance with Iowa Code section 17A.4(2), the Commission finds that notice and public participation are impractical because of the requirements of 1999 Iowa Acts, House File 772, and the immediate need to implement the new provision in order to provide the information to the interim committee and report findings and recommendations to the 2000 Session of the Seventy-eighth General Assembly. This additional sampling procedure does not require any additional field work than would otherwise be required. Analytical costs could double based on a limited survey of private laboratories. The additional MTBE analytical work may exceed the capacity of some private laboratories.

In compliance with Iowa Code section 17A.5(2)"b"(1), the Commission finds that the normal effective date of the amendment should be waived and this amendment should be effective July 1, 1999, which is the effective date of 1999 Iowa Acts, House File 772, section 15(4)"c."

This amendment is also published herein under Notice of Intended Action as ARC 9198A to allow for public comment. This emergency filing permits the Commission to implement the new provision of the law.

This amendment is intended to implement 1999 Iowa Acts, House File 772.

This rule may have an impact on small businesses as provided in Iowa Code section 17A.31.

This amendment became effective July 1, 1999.

Amend 567--Chapter 135 by adopting the following new rule:

567--135.19(455B) Analyzing for methyl tertiary-butyl ether (MTBE) in soil and groundwater samples.

135.19(1) General. The objective of analyzing for MTBE is to determine its presence in soil and water samples collected as part of investigation and remediation of contamination at underground storage tank facilities.

135.19(2) Required MTBE testing. Soil and water samples must be analyzed for MTBE when collected for risk-based corrective action as required in rules 135.8(455B) through 135.12(455B). These sampling requirements include but are not limited to:

a. Risk-based corrective action (RBCA) evaluations required for Tier 1, Tier 2, and Tier 3 assessments and corrective action design reports.

b. Site monitoring.

c. Site remediation monitoring.

135.19(3) MTBE testing not required. Soil and water samples for the following actions are not required to be analyzed for MTBE:

a. Closure sampling under rule 135.15(455B) unless Tier 1 or Tier 2 sampling is being performed.

b. Site checks under subrule 135.7(3) unless Tier 1 or Tier 2 sampling is being performed.

135.19(4) Reporting. The analytical data must be submitted in a format prescribed by the department.

135.19(5) Analytical methods for methyl tertiary-butyl ether (MTBE). When having soil or water analyzed for MTBE from contamination caused by petroleum or hazardous substances, owners and operators of UST systems must use a laboratory certified under 567--Chapter 83 for petroleum analyses. In addition, the owners and operators must ensure all soil and water samples are properly preserved and shipped within 72 hours of collection to a laboratory certified under 567--Chapter 83 for petroleum analyses.

a. Sample preparation and analysis shall be by:

(1) GC/MS version of OA-1, "Method for Determination of Volatile Petroleum Hydrocarbons (gasoline)," revision 7/27/93, University Hygienic Laboratory, Iowa City, Iowa; or

(2) U.S. Environmental Protection Agency Method 8260B, SW-846, "Test Methods for Evaluating Solid Waste," Third Edition.

b. Laboratories performing the analyses must run standards for MTBE on a routine basis, and standards for other possible compounds like ethyl-tertiary butyl ether (ETBE), tertiary-amyl methyl ether (TAME), diisopropyl ether (DIPE), and tertiary-butyl alcohol (TBA) to be certain of their identification should they be detected.

c. Laboratories must run a method detection limit study and an initial demonstration of capability for MTBE. These records must be kept on file.

d. The minimum detection level for MTBE in soil is 15 ug/kg. The minimum detection level for MTBE in water is 15 ug/l.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9213A

Pursuant to the authority of Iowa Code section 505.8, the Division of Insurance proposes to amend Chapter 27, "Preferred Provider Arrangements," Chapter 35, "Accident and Health Insurance," Chapter 40, "Health Maintenance Organizations," Chapter 71, "Small Group Health Benefit Plans," and Chapter 75, "Iowa Individual Health Benefit Plans," Iowa Administrative Code.

These amendments implement changes concerning the licensing of limited services organizations and health maintenance organizations. The amendments also address the prohibition of gag clauses and require health insurance carriers and self-funded plans to provide for the treatment of emergency services. Direct access to certain providers for routine care is required. In addition, costs related to diabetes supplies, equipment and education shall be provided in the standard health benefit plan in the small group and individual markets.

In compliance with Iowa Code section 17A.4(2), the Division finds that notice and public participation are impracticable because of the immediate need for the rule changes in order to to implement new provisions of the law.

The Division also finds, pursuant to Iowa Code section 17A.5(2)"b"(2), that the normal effective date of the amendments should be waived and these amendments should be effective on July 1, 1999, as they confer a benefit upon the public.

The Division of Insurance adopted these amendments on June 25, 1999.

These amendments are also published herein under Notice of Intended Action as ARC 9194A to allow public comment. This emergency filing permits the Division to implement the new provisions of the law.

These amendments are intended to implement Iowa Code sections 514B.3 and 514B.33, Iowa Code chapter 514C, and 1999 Iowa Acts, Senate File 276.

These amendments became effective July 1, 1999.

The following amendments are adopted.

ITEM 1. Amend rule 191--27.3(514F) by rescinding subrule 27.3(4).

ITEM 2. Amend 191--Chapter 35 as follows:

Amend rule 191--35.20(509A) by adopting the following new subrules:

35.20(5) An accident and health self-funded plan subject to these rules shall not prohibit a participating provider from or penalize a participating provider for discussing treatment options with covered persons, irrespective of a self-funded plan's position on the treatment options, or from advocating on behalf of covered persons within the utilization review or grievance processes established by the self-funded plan or a person contracting with the self-funded plan.

The self-funded plan shall not penalize a provider because the provider, in good faith, reports to state or federal authorities any act or practice by the self-funded plan that, in the opinion of the provider, jeopardizes patient health or welfare.

35.20(6) Benefits shall be available by the accident and health self-funded plan for inpatient and outpatient emergency services. Since self-funded plans may not contract with every emergency care provider in an area, self-funded plans shall make every effort to inform members of participating providers.

The term "emergency services" means, with respect to an individual enrolled with an organization, covered inpatient and outpatient 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 term "emergency medical condition" means a medical condition manifesting itself by acute symptoms of sufficient severity, including severe pain, that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention to result in one of the following:

1. Placing the health of the individual or, with respect to a pregnant woman, the health of the woman and her unborn child in serious jeopardy;

2. Serious impairment to bodily function; or

3. Serious dysfunction of any bodily organ or part.

Reimbursement to a provider of "emergency services" shall not be denied by any health maintenance organization without that organization's review of the patient's medical history, presenting symptoms, and admitting or initial as well as final diagnosis, submitted by the provider, in determining whether, by definition, emergency services could reasonably have been expected to be provided. Reimbursement for emergency services shall not be denied solely on the grounds that a noncontracted provider performed services. If reimbursement for emergency services is denied, the enrollee may file a complaint with the self-funded plan. Upon denial of reimbursement for emergency services, the self-funded plan shall notify the enrollee and the provider that they may register a complaint with the commissioner of insurance.

35.20(7) A life and health self-funded plan subject to this rule shall allow a member direct access to an obstetrician or gynecologist for routine and preventive health care services. The plan shall also allow a pediatrician to be the primary care provider for a child through the age of 18.

Adopt the following new rules:

191--35.32(514C) Treatment options.

35.32(1) A carrier shall not prohibit a participating provider from or penalize a participating provider for discussing treatment options with covered persons, irrespective of the carrier's position on the treatment options, or from advocating on behalf of covered persons within the utilization review or grievance processes established by the carrier or a person contracting with the carrier.

35.32(2) A carrier shall not penalize a provider because the provider, in good faith, reports to state or federal authorities any act or practice by the carrier that, in the opinion of the provider, jeopardizes patient health or welfare.

191--35.33(514C) Emergency services. Benefits shall be available by the carrier for inpatient and outpatient emergency services. Since carriers may not contract with every emergency care provider in an area, carriers shall make every effort to inform members of participating providers.

35.33(1) The term "emergency services" means, with respect to an individual enrolled with an organization, covered inpatient and outpatient 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.

35.33(2) The term "emergency medical condition" means a medical condition manifesting itself by acute symptoms of sufficient severity, including severe pain, that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention to result in one of the following:

a. Placing the health of the individual or, with respect to a pregnant woman, the health of the woman and her unborn child in serious jeopardy;

b. Serious impairment to bodily function; or

c. Serious dysfunction of any bodily organ or part.

35.33(3) Reimbursement to a provider of "emergency services" shall not be denied by any carrier without that organization's review of the patient's medical history, presenting symptoms, and admitting or initial as well as final diagnosis, submitted by the provider, in determining whether, by definition, emergency services could reasonably have been expected to be provided. Reimbursement for emergency services shall not be denied solely on the grounds that services were performed by a noncontracted provider. If reimbursement for emergency services is denied, the enrollee may file a complaint with the carrier. Upon denial of reimbursement for emergency services, the carrier shall notify the enrollee and the provider that they may register a complaint with the commissioner of insurance.

191--35.34(514C) Provider access. A carrier subject to this chapter shall allow an enrollee direct access to an obstetrician or gynecologist for routine and preventive health care services. The carrier shall also allow a pediatrician to be the primary care provider for a child through the age of 18.

ITEM 3. Amend 191--Chapter 40 as follows:

Amend rule 191--40.1(514B) by rescinding the definition of "uncovered expenditures."

Rescind rule 191--40.12(514B) and insert in lieu thereof the following new rule:

191--40.12(514B) Net worth.

40.12(1) An HMO shall not be authorized to transact business with a net worth less than $1 million.

40.12(2) No HMO incorporated by or organized under the laws of any other state or government shall transact business in this state unless it possesses the net worth required of an HMO organized by the laws of this state and is authorized to do business in this state.

40.12(3) As deemed necessary by the division, each health maintenance organization that is a subsidiary of another person shall file with the division, in a form satisfactory to it, a guarantee of the HMO's obligations issued by the ultimate controlling parent or such other person satisfactory to the division.

40.12(4) Each health maintenance organization shall, at the time of application, pay to the division a one-time, nonrefundable fee of $10,000 to be used by the division to create a special fund solely for the payment of administrative expenses in connection with the solvency of an HMO.

Amend rule 191--40.20(514B), introductory paragraph, to read as follows:

191--40.20(514B) Emergency service. "Emergency services," (inpatient and outpatient) as defined in 191--40.1 (514B), shall be provided by the HMO, either through its own facilities or through guaranteed arrangements with other providers, on a 24-hour basis. Benefits shall be available by the HMO for inpatient and outpatient emergency services. A physician and sufficient other licensed and ancillary personnel shall be readily available at all times to render such services. Since HMOs may not contract with every emergency care provider in an area, HMOs shall make every effort to inform members of participating providers.

Adopt the following new rule:

191--40.24(514B) Provider access. A health maintenance organization shall allow an enrollee direct access to an obstetrician or gynecologist for routine and preventive health care services. The plan shall also allow a pediatrician to be the primary care provider for a child through the age of 18.

ITEM 4. Amend 191--Chapter 71 as follows:

Adopt the following new subrule:

71.14(9) All carriers shall provide benefits in the standard health benefit plan for the cost associated with equipment, supplies, and education for the treatment of diabetes pursuant to Iowa Code section 514C.14.

Adopt the following new rules:

191--71.20(514C) Treatment options.

71.20(1) A carrier shall not prohibit a participating provider from or penalize a participating provider for discussing treatment options with covered persons, irrespective of the carrier's position on the treatment options, or from advocating on behalf of covered persons within the utilization review or grievance processes established by the carrier or a person contracting with the carrier.

71.20(2) A carrier shall not penalize a provider because the provider, in good faith, reports to state or federal authorities any act or practice by the carrier that, in the opinion of the provider, jeopardizes patient health or welfare.

191--71.21(514C) Emergency services. Benefits shall be available by the carrier for inpatient and outpatient emergency services. A physician and sufficient other licensed and ancillary personnel shall be readily available at all times to render such services. Since carriers may not contract with every emergency care provider in an area, carriers shall make every effort to inform members of participating providers.

71.21(1) The term "emergency services" means, with respect to an individual enrolled with an organization, covered inpatient and outpatient 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.

71.21(2) The term "emergency medical condition" means a medical condition manifesting itself by acute symptoms of sufficient severity, including severe pain, that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention to result in one of the following:

a. Placing the health of the individual or, with respect to a pregnant woman, the health of the woman and her unborn child in serious jeopardy;

b. Serious impairment to bodily function; or

c. Serious dysfunction of any bodily organ or part.

71.21(3) Reimbursement to a provider of "emergency services" shall not be denied by any carrier or ODS without that organization's review of the patient's medical history, presenting symptoms, and admitting or initial as well as final diagnosis, submitted by the provider, in determining whether, by definition, emergency services could reasonably have been expected to be provided. Reimbursement for emergency services shall not be denied solely on the grounds that services were performed by a noncontracted provider. If reimbursement for emergency services is denied, the enrollee may file a complaint. Upon denial of reimbursement for emergency services, the carrier shall notify the enrollee and the provider that they may register a complaint with the commissioner of insurance.

191--71.22(514C) Provider access. A carrier shall allow an enrollee direct access to an obstetrician or gynecologist for routine and preventive health care services. The plan shall also allow a pediatrician to be the primary care provider for a child through the age of 18.

ITEM 5. Amend 191--Chapter 75 as follows:

Adopt the following new subrules:

75.7(3) Qualifying previous coverage for a newborn shall be the greater of the period or periods of qualifying previous coverage established by either of the newborn's parents prior to the date of birth.

75.7(4) Benefits paid under a basic or standard health benefit plan shall not duplicate benefits paid under any other health insurance coverage. Other coverage means benefits paid for hospital, surgical or other medical care or expenses for a covered person by any of the following:

a. Insurance plan or policy; or

b. Health benefit plan; or

c. Welfare plan; or

d. Prepayment plan; or

e. Hospital service corporation plan or policy; or

f. Medicare;

whether provided on an individual, family, or group basis or through an employer, union or association. If such other coverage is on a provision of service basis, the amount of benefits will be the amount that the services provided would have cost without such other coverage.

Adopt the following new rules:

191--75.13(514C) Treatment options.

75.13(1) A carrier shall not prohibit a participating provider from or penalize a participating provider for discussing treatment options with covered persons, irrespective of the carrier's position on the treatment options, or from advocating on behalf of covered persons within the utilization review or grievance processes established by the carrier or a person contracting with the carrier.

75.13(2) A carrier shall not penalize a provider because the provider, in good faith, reports to state or federal authorities any act or practice by the carrier that, in the opinion of the provider, jeopardizes patient health or welfare.

191--75.14(514C) Emergency services. Benefits shall be available by the carrier for inpatient and outpatient emergency services. A physician and sufficient other licensed and ancillary personnel shall be readily available at all times to render such services. Since carriers may not contract with every emergency care provider in an area, carriers shall make every effort to inform members of participating providers.

75.14(1) The term "emergency services" means, with respect to an individual enrolled with an organization, covered inpatient and outpatient 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.

75.14(2) The term "emergency medical condition" means a medical condition manifesting itself by acute symptoms of sufficient severity, including severe pain, that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect the absence of immediate medical attention to result in one of the following:

a. Placing the health of the individual or, with respect to a pregnant woman, the health of the woman and her unborn child in serious jeopardy;

b. Serious impairment to bodily function; or

c. Serious dysfunction of any bodily organ or part.

75.14(3) Reimbursement to a provider of "emergency services" shall not be denied by any carrier without that organization's review of the patient's medical history, presenting symptoms, and admitting or initial as well as final diagnosis, submitted by the provider, in determining whether, by definition, emergency services could reasonably have been expected to be provided. Reimbursement for emergency services shall not be denied solely on the grounds that services were performed by a noncontracted provider. If reimbursement for emergency services is denied, the enrollee may file a complaint with the carrier. Upon denial of reimbursement for emergency services, the carrier shall notify the enrollee and provider that they may register a complaint with the commissioner of insurance.

191--75.15(514C) Provider access. A carrier shall allow an enrollee direct access to an obstetrician or gynecologist for routine and preventive health care services. The plan shall also allow a pediatrician to be the primary care provider for a child through the age of 18.

191--75.16(514C) Diabetic coverage. All carriers shall provide benefits in the standard health benefit plan for the cost associated with equipment, supplies, and education for the treatment of diabetes pursuant to Iowa Code section 514C.14.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9191A

Pursuant to the authority of Iowa Code sections 421.14 and 422.68, the Department of Revenue and Finance hereby amends Chapter 18, "Taxable and Exempt Sales Determined by Method of Transaction or Usage," Iowa Administrative Code.

Recently, the Iowa Code was amended to exempt from tax the services of persons who provide on-line access to the Internet for computer users. The exemption is effective July 1, 1999. The Department's rule explaining the sales tax on communication services is amended to reflect this change in the law.

In compliance with Iowa Code subsection 17A.4(2), the Department finds that notice and public participation are unnecessary because the amendment informs the public that a benefit is conferred upon it in the form of an exemption from tax, and the extent of that benefit is not in doubt.

The Department also finds, pursuant to Iowa Code subparagraph 17A.5(2)"b"(2), that the normal effective date of the amendment should be waived and this amendment should be made effective on July 1, 1999, the effective date of the legislation which it interprets because the rule confers a benefit on a segment of the public.

The Department of Revenue and Finance adopted this amendment on June 25, 1999.

This amendment is also published herein under Notice of Intended Action as ARC 9190A to allow for public comment. This emergency filing permits the Department to implement the new provisions of the law.

This amendment became effective July 1, 1999.

This amendment is intended to implement Iowa Code section 422.45 as amended by 1999 Iowa Acts, House File 748.

The following amendment is adopted.

Amend rule 701--18.20(422) as follows:

Amend subrule 18.20(5) as follows:

18.20(5) Charges Prior to July 1, 1999, charges for access to or use of what is commonly referred to as the "Internet" or charges for other contracted on-line services are the gross receipts from the performance of a taxable service if access is by way of a local or in-state long distance telephone number and if the predominant service offered is two-way transmission and receipt of information from one site to another as described in paragraph "a" of subrule 18.20(1). If a user's billing address is located in Iowa, a service provider should assume that Internet access or contracted on-line service is provided to that user in Iowa unless the user presents suitable evidence that the site or sites at which these services are furnished are located outside this state.

On and after July 1, 1999, gross receipts from charges paid to a provider for access to an on-line computer service are exempt from tax. An "on-line computer service" is one which provides for or enables multiple users to have computer access to the Internet. Charges paid to a provider for other contracted on-line services which do not provide access to the Internet and which are communication services remain subject to Iowa tax.

Amend the implementation sentence as follows:

This rule is intended to implement Iowa Code sections 34A.7(1)"c"(2), 422.42(2), 422.42(3), 422.43(9), 422.45(5), 422.45(8), 422.45 as amended by 1999 Iowa Acts, House File 748, and 422.51(1).

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9210A

Pursuant to the authority of Iowa Code section 12.34(2), the Treasurer of State hereby amends Chapter 4, "Linked Investments for Tomorrow (LIFT)," Iowa Administrative Code.

This amendment establishes the procedures which govern the participation, forms, and use of proceeds in the Traditional Livestock Producers LIFT program.

In compliance with Iowa Code section 17A.4(2), the Treasurer of State finds that notice and public participation are impracticable because of the immediate need for the new rule to implement new provisions of this law.

The Treasurer also finds, pursuant to Iowa Code section 17A.5(2)"b"(2), that the normal effective date of the amendment should be waived and this amendment should be made effective upon filing with the Administrative Rules Coordinator on June 25, 1999, as it confers a benefit upon traditional livestock producers.

The Treasurer of State adopted this amendment on June 25, 1999.

This amendment is also published herein under Notice of Intended Action as ARC 9209A to allow for public comment. This emergency filing permits the Treasurer to implement the new provisions of this law.

This amendment became effective June 25, 1999.

This amendment is intended to implement Iowa Code section 12.34 as amended by 1999 Iowa Acts, House File 779, section 2; and 1999 Iowa Acts, House File 779, section 4.

The following amendment is adopted.

ITEM 1. Amend 781--Chapter 4 by adopting the following new rule:

781--4.10(78GA,HF779) LIFT--traditional livestock producer's linked investment loan program.

4.10(1) A "qualified linked investment" means a linked investment in which a certificate of deposit is placed by the treasurer of state with an eligible lending institution under the traditional livestock producer's linked investment program established under 1999 Iowa Acts, House File 779, section 4.

4.10(2) "Livestock operation" means an animal feeding operation as defined in Iowa Code section 455B.161 which states that an "animal feeding operation" means a lot, yard, corral, building, or other area in which animals are confined and fed and maintained for 45 days or more in any 12-month period, and all structures used for the storage of manure from animals in the operation. Two or more animal feeding operations under common ownership or management are deemed to be a single animal feeding operation if they are adjacent or utilize a common system for manure storage. An animal feeding operation does not include a livestock market.

4.10(3) A borrower who qualifies for a qualified linked investment may use the loan proceeds for new or existing debt directly related to a livestock operation including but not limited to hogs, cattle, feed, supplies, veterinary services, equipment and machinery. For purposes of a qualified linked investment, cattle includes dairy cattle.

4.10(4) A borrower who qualifies for a qualified linked investment may not use the loan proceeds for new or existing debt for land, buildings, or vehicles. A borrower or lender may use land, buildings, or vehicles as collateral for a loan under this program.

4.10(5) The maximum amount that a borrower may borrow from this program is $100,000.

4.10(6) For a qualified linked investment, the initial certificate of deposit for a given borrower shall have a maturity of one year. The certificate of deposit may be renewed on an annual basis for a total term not to exceed three years.

4.10(7) A borrower is not qualified for a qualified linked investment if the borrower is receiving interest assistance from the Farm Service Agency of the United States Department of Agriculture.

4.10(8) A lender shall use Form 655-0216 to determine and verify the borrower meets the gross income requirements of a qualified linked investment.

ITEM 2. Amend 781--Chapter 4, implementation sentence, as follows:

These rules are intended to implement Iowa Code sections 12.35 to 12.37; and 1997 Iowa Acts, House File 613 chapter 195; Iowa Code section 12.34 as amended by 1999 Iowa Acts, House File 779, section 2; and 1999 Iowa Acts, House File 779, section 4.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9211A

Pursuant to the authority of Iowa Code section 17A.3(1)"b," the Treasurer of State adopts Chapter 17, "Declaratory Orders," and Chapter 18, "Agency Procedure for Rule Making," Iowa Administrative Code.

These amendments provide the Treasurer of State's rules governing procedures for declaratory orders and rule making and are intended to implement changes made by theSeventy-seventh General Assembly to the Iowa Administrative Procedure Act in 1998 Iowa Acts, chapter 1202.

Notice of Intended Action was published in the Iowa Administrative Bulletin on March 24, 1999, as ARC 8835A.

A public hearing was scheduled for April 16, 1999. No comments were received.

These amendments are identical to those published under Notice of Intended Action.

Pursuant to Iowa Code section 17A.5(2)"b"(2), this amendment became effective July 1, 1999. The Treasurer of State finds that this amendment confers a benefit upon citizens by providing departmental rules regarding declaratory orders and the procedures for rule making.

These amendments are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202.

These amendments became effective July 1, 1999.

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 rules [Chs 17,18] is being omitted. These rules are

identical to those published under Notice as ARC 8835A, IAB 3/24/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

ARC 9193A

Pursuant to the authority of Iowa Code section 86.8, the Workers' Compensation Commissioner hereby amends Chapter 8, "Substantive and Interpretive Rules," Iowa Administrative Code.

This amendment provides reference to current tables which determine payroll taxes.

In compliance with Iowa Code section 17A.4(2), the Workers' Compensation Commissioner finds that notice and public participation are unnecessary. Rule 8.8(85,17A) is noncontroversial and, further, Iowa Code section 85.61(6) requires adoption of current tables to determine payroll taxes by July 1 of each year. The Division must wait until the Internal Revenue Service and Iowa Department of Revenue and Finance determine whether there will be changes in their publications on July 1 of the current year.

The Division also finds, pursuant to Iowa Code section 17A.5(2)"b"(2), that the normal effective date of this amendment, 35 days after publication, should be waived and the amendment made effective July 1, 1999, as it confers a benefit upon the public to ensure speedy and uniform compliance with the Division's legislative mandate.

The Division has determined that the amendment will have no impact on small business within the meaning of Iowa Code section 17A.31.

This amendment is intended to implement Iowa Code section 85.61(6).

This amendment became effective on July 1, 1999.

The following amendment is adopted.

Amend rule 876--8.8(85,17A) to read as follows:

876--8.8(85,17A) Payroll tax tables. Tables for determining payroll taxes to be used for the period July 1, 1998 1999, through June 30, 1999 2000, are the tables in effect on July 1, 1998 1999, for computation of:

1. Federal income tax withholding according to the percentage method of withholding for weekly payroll period. (Internal Revenue Service, Circular E, Employer's Tax Guide, Publication 15 [Rev. January 1998 1999].)

2. Iowa income tax withholding computer formula for weekly payroll period. (Iowa Department of Revenue and Finance Iowa Withholding Tax Guide, Publication 44-001, [Rev. January 1998] for all wages paid on or after January 1, 1998.)

3. Social Security and Medicare withholding (FICA) at the rate of 7.65 percent (Internal Revenue Service, Circular E, Employer's Tax Guide, Publication 15 Employer's Supplemental Tax Guide, Publication 15-A [Rev. January 1998 1999].)

This rule is intended to implement Iowa Code section 85.61(6).

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9201A

Pursuant to the authority of Iowa Code sections 84A.1B(9) and 96.11, the Department of Workforce Development adopts amendments to Chapter 6, "Regional Advisory Boards," Iowa Administrative Code.

The amendments incorporate changes in membership, nomination and appointment processes, and duties of the regional advisory boards required by the federal Workforce Investment Act of 1998 and allow board members to receive reimbursement of travel expenses.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 9005A on May 19, 1999. A public hearing was held on June 8, 1999. Most comments concerned the appointment process, board composition, and appointing authority and whether or not the proposed changes meet the intent of the federal Workforce Investment Act of 1998 and Department of Labor implementing regulations. Other comments requested further clarification of terms or processes or consistency in the use of terms. Based on these comments, the following changes were made to the proposed rules:

1. The definitions of "chief elected official" and "local elected officials" were revised to provide better distinction between the two terms and a definition of "WIA" was added.

2. The term "disabled persons" was changed to "persons with disabilities" in 6.3(3).

3. In 6.3(3), the term "one-stop operator" was changed to "one-stop partners."

4. In 6.3(3), a requirement was added to solicit input from other community-based organizations within a region.

5. "Local elected officials" was changed to "chief elected officials" in 6.3(4), 6.5(3) to 6.5(5), and 6.7(7).

6. In 6.3(4), references were changed to match changes in other rules or subrules.

7. Subrule 6.3(5) was added to allow Region 11 to appoint a new regional advisory board.

8. The nomination process in 6.4(3) was changed for voting members representing local school districts and community colleges to allow only local school districts and community colleges to make nominations for these board positions.

9. A nomination process was added for members representing local units of government in subrule 6.4(4).

10. In 6.4(6), local elected officials are encouraged to appoint persons with disabilities, minorities, and older workers as voting members to the regional advisory board.

11. In 6.5(1), the words "at least" were added before the words "two nominees."

12. In 6.5(3), if the chief elected officials wish to submit new nominations to the Governor, a 45-day time limit was imposed.

13. In 6.5(4), the time period to send out appointment letters was extended from 15 to 30 days.

14. In rule 6.8(84A,PL105-220), the first board certification will be based solely on the composition of the board, and subsequent certifications will be based upon composition and performance.

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 upon filing on June 25, 1999. These amendments confer a benefit on the public by the timely implementation of requirements of the Workforce Investment Act, which will provide federal moneys to train needy Iowans.

The agency 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, 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 84A.4 and the federal Workforce Investment Act of 1998 (P.L. 105-220).

The Workforce Development Board adopted these amendments on June 24, 1999.

These amendments became effective on June 25, 1999.

The following amendments are adopted.

ITEM 1. Amend 877--Chapter 6, parenthetical implementation, by deleting "(84A)" and inserting "(84A, PL105-220)".

ITEM 2. Adopt the following new rule:

877--6.1(84A,PL105-220) Definitions.

"Board" means a regional advisory board in a workforce development region.

"Chief elected official" means the units of local government joined through a 28E agreement for the purpose of sharing liability and responsibility for the WIA-funded programs.

"Department" means the department of workforce development.

"Local elected officials" means the county supervisors and mayors of the region's cities with a population of more than 50,000.

"One-stop operator" means the entity or consortium of entities selected by the local elected officials and regional advisory board to coordinate workforce development service providers within a region.

"Regional workforce investment board" means the regional advisory board within a workforce development region.

"WIA" means the federal Workforce Investment Act of 1998 (P.L. 105-220).

ITEM 3. Renumber existing rules 877--6.1(84A) and 877--6.2(84A) as 877--6.2(84A) and 877--6.3(84A), respectively, and amend renumbered subrule 6.3(3) as follows:

6.3(3) Nonvoting members. The board may appoint ex officio, nonvoting members. The board must solicit periodic, regular and meaningful input from persons with disabilities, older workers, regional or local economic development groups, and the region's one-stop partners. It is recommended that the board appoint the following four ex officio members to meet this requirement. If ex officio members are not appointed, the board must describe an alternate process to gain input from these groups in their local annual plan for workforce investment act services.

a. A person with a disability nominated by an organization that represents or serves persons with disabilities.

b. An older worker nominated by a senior community service employment program service provider.

c. An individual nominated by a regional or local economic development organization.

d. An individual nominated by the regional one-stop partners.

For other community-based organizations that have an interest in workforce development, provide workforce development services in the region and are not a one-stop partner, and are not represented on the regional advisory board by either a voting or nonvoting member, the local annual plan must describe how their input will be solicited.

ITEM 4. Adopt new subrules 6.3(4) and 6.3(5) as follows:

6.3(4) Members in region 8. In workforce development region 8, which consists of the counties of Audubon, Carroll, Crawford, Greene, Guthrie, and Sac, a regional workforce investment board will be selected by the chief elected officials, using the nomination processes described in subrules 6.3(3) and 6.4(1) to 6.4(5). Fourteen members of the regional workforce investment board will constitute the regional advisory board. These members shall be selected using the process described in subrule 6.4(6) and rule 6.5(84A, PL105-220). The majority of the regional workforce investment board members shall represent business, and the chairperson shall represent the business sector.

6.3(5) Members in region 11. In workforce development region 11, which consists of the counties of Boone, Dallas, Jasper, Madison, Marion, Polk, Story, and Warren, a new regional advisory board will be appointed. Nominations and appointments to the new board must conform to the requirements of this chapter and be submitted to the governor by August 9, 1999.

ITEM 5. Adopt the following new rules:

877--6.4(84A,PL105-220) Nomination process for voting members. The following procedures shall be used in soliciting nominations for voting members.

6.4(1) All nominations for members which represent business shall be made by local or regional business organizations or trade associations. Business representatives should be owners of businesses, chief executive or operating officers of business and other business executives or employers with optimum policy-making or hiring authority and represent businesses with employment opportunities that reflect the employment opportunities of the region.

6.4(2) All nominations for members which represent labor shall be made by appropriate local federations of labor, union councils, or state federations of labor.

6.4(3) All nominations for members which represent local school districts or community colleges shall be made by local school districts or community colleges, respectively.

6.4(4) All nominations for members who are county or city officials shall be made individually or collectively by the region's county boards of supervisors or mayors and city councils, respectively.

6.4(5) All nominations shall be made in writing with the signed approval of the required nominating organization.

6.4(6) The overall membership of the board shall be balanced by gender and political affiliation consistent with Iowa Code sections 69.16 and 69.16A. To the extent possible, the members should represent all counties within a region served by the board and both voting and nonvoting members should represent persons with disabilities, minorities and older workers of the region.

6.4(7) Existing and future regional advisory board members that represent business, labor or education do not have to be renominated as outlined in this subrule unless required to do so by the local elected officials of a region.

6.4(8) Nominations are valid for an unlimited time period unless the local elected officials of a region set a specific time limit in the local annual plan.

877--6.5(84A,PL105-220) Appointment process.

6.5(1) In making appointments to the boards, the chief local elected officials shall submit a list of nominees for a board vacancy to the department within 45 days of the vacancy. Chief elected officials shall submit at least two nominees for each vacancy for the governor to review.

6.5(2) The governor shall review the list, add or delete nominees from the list, and return the revised list to the chief elected officials within 45 days of receipt of the list by the department.

6.5(3) The chief elected officials will review the revised list and make the final selection of a person to fill a vacancy from the revised list. If the revised list of candidates is not acceptable to the chief elected officials, the chief elected officials may submit new candidates to the governor for consideration within 45 days and repeat the process specified in subrules 6.5(1) and 6.5(2) until a candidate is appointed.

6.5(4) The chief elected officials will send an appointment letter to the person selected to fill the vacancy on behalf of the chief elected officials and the governor within 30 days of receipt of the revised list and send a copy of the letter to the department.

6.5(5) If the chief elected officials fail to submit nominations for a vacancy within the 45-day time period or fail to reach agreement locally on appointments to the board, the governor may appoint a person to fill the vacancy.

ITEM 6. Renumber existing rules 877--6.3(84A) and 877--6.4(84A) as 877--6.6(84A) and 877--6.7(84A), respectively, and amend renumbered subrule 6.7(1) as follows:

6.7(1) Conduct an annual a needs assessment to identify the workforce development needs of the region.

ITEM 7. Adopt new subrules 6.7(6) and 6.7(7) as follows:

6.7(6) Fulfill the responsibilities of a local workforce investment board as required by the Workforce Investment Act of 1998, subsequent amendments and all related regulations.

6.7(7) Enter into an agreement with the region's chief elected officials board to delineate their respective duties related to administration of the Workforce Investment Act of 1998.

ITEM 8. Adopt the following new rules:

877--6.8(84A,PL105-220) Board certification. Each board will be certified by the governor every two years based upon:

1. The extent to which the board's composition complies with rule 6.3(84A,PL105-220), and

2. The extent to which the board has ensured the workforce development activities carried out in a region have enabled the region to meet local performance measures.

The first certification shall be conducted by the governor by July 1, 2000, on the basis of 6.8"1" only. Certifications after July 1, 2000, will be based upon both criteria.

877--6.9(84A,PL105-220) Board decertification. The governor may decertify a board for:

1. Failure to achieve certification as outlined in rule 6.8(84A,PL105-220); or

2. Fraud or abuse; or

3. If the region fails to meet performance measures for two consecutive program years.

If the governor decertifies a board for any of the above reasons, the governor may require a new board be appointed and certified through a reorganization plan developed by the governor in conjunction with the chief elected official of the region.

877--6.10(84A,PL105-220) Member travel expenses. Board members may be reimbursed for actual and necessary travel expenses for board meetings and other authorized board travel. Expenses will be reimbursed according to guidelines issued by the department of revenue and finance.

ITEM 9. Renumber existing rule 877--6.5(84A) as 877--6.11(84A).

ITEM 10. Amend 877--Chapter 6, implementation sentence at the end thereof, as follows:

These rules are intended to implement Iowa Code section 84A.4 and the federal Workforce Investment Act of 1998 (P.L. 105-220).

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9206A

Pursuant to Iowa Code section 216.5(10), the Civil Rights Commission proposes to amend Chapter 9, "Discrimination in Housing," Iowa Administrative Code.

Notice of Intended Action was published in the Iowa Administrative Bulletin on May 19, 1999, as ARC 9017A. A public hearing was held on June 8, 1999, but no one attended. No comments were received. These amendments are identical to the Notice of Intended Action.

These amendments are intended to implement Iowa Code section 216.5(13) which gives the Commission the authority to order discovery in the investigation of alleged unfair or discriminatory housing practices. The amendments were adopted from a combination of the Iowa Rules of Civil Procedure and an analysis of the Commission's needs during a housing investigation.

These amendments are intended to implement Iowa Code section 216.5(13).

These amendments were approved during the June 24, 1999, meeting of the Civil Rights Commissioners.

These amendments will become effective on August 18, 1999.

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 [9.2 to 9.28] is being omitted. These amendments are identical to those published under Notice as ARC 9017A, IAB 5/19/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

ARC 9179A

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development rescinds Chapter 24, "Emergency Shelter Grants Program," Iowa Administrative Code, and adopts a new Chapter 24 with the same title.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 8913A on April 7, 1999. The IDED Board adopted the new chapter on June 18, 1999.

The rules consolidate and clarify the program and operational requirements of the Emergency Shelter Grants Program and bring the rules into conformity with other programs operated by the Division.

A public hearing was held on April 27, 1999. No comments concerning the proposed rules were received from the public. The final rules are identical to those published under Notice of Intended Action.

These rules are intended to implement Iowa Code section 15.108(1)"a."

These rules will become effective on August 18, 1999.

The following rules are adopted.

Rescind 261--Chapter 24 and adopt in lieu thereof the following new chapter:

261--24.1(PL100-628) Purpose. The program is designed to help improve the quality of services to the homeless, to make available needed services, to help meet the costs of operating essential social services to homeless individuals so that these persons have access not only to safe and sanitary shelter, but also to the supportive services and other types of assistance homeless persons need to improve their situations.

261--24.2(PL100-628) Definitions.

"Applicant" means a provider of homeless services applying for funds through the ESGP program.

"ESG" or "ESGP" means the emergency shelter grants program.

"Grantee" means a qualifying city government, county government, or nonprofit organization receiving funds under this chapter.

"Homeless" or "homeless individual" means:

1. An individual who lacks a fixed, regular, and adequate nighttime residence; and

2. An individual who has a primary nighttime residence that is:

* A supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill);

* An institution that provides a temporary residence for individuals intended to be institutionalized; or

* A public or private place not designated for, or ordinarily used as, a regular sleeping accommodation for human beings.

"HUD" means the U.S. Department of Housing and Urban Development.

"IDED" means the Iowa department of economic development.

"Major rehabilitation" means rehabilitation that involves costs in excess of 75 percent of the value of the building before rehabilitation.

"Nonprofit recipient" means any private nonprofit organization providing assistance to the homeless to which a unit of general local government distributes ESGP funds. For purposes of this chapter, a nonprofit recipient is a subgrantee.

"Obligated" means that the grantee has placed orders, awarded contracts, received services, or entered similar transactions that require payment from the grant amount. Grant amounts awarded by IDED by a written agreement or letter of award requiring payment from the grant amounts are obligated.

"Private nonprofit organization" means a secular or religious organization described in Section 501(c) of the Internal Revenue Code which:

1. Is exempt from taxation under Subtitle A of the Internal Revenue Code,

2. Has an accounting system and a voluntary board, and

3. Practices nondiscrimination in the provision of services to clients.

"Rehabilitation" means 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.

"Renovation" means rehabilitation that involves costs of 75 percent or less of the value of the building before rehabil-itation.

"Value of the building" means the monetary value assigned to a building by an independent real estate appraiser, or as otherwise reasonably established by the grantee.

261--24.3(PL100-628) Eligible applicants. City governments, county governments, and private nonprofit organizations are eligible applicants under the emergency shelter grants program.

261--24.4(PL100-628) Eligible activities. Eligible activities are based on guidelines established by the Stewart B. McKinney Homeless Assistance Amendment Act of 1988 and further defined in 24 Code of Federal Regulations Part 576 (June 1, 1999). Activities assisted by this program may include only the following:

1. Rehabilitation, renovation, or conversion of buildings for use as providers of services for the homeless.

2. Provision of essential services if the service is a new service or a quantifiable increase in the level of service. No more than 30 percent of the IDED annual grant amount may be used for this purpose.

3. Payment of normal operating expenses that include staff salaries, maintenance, insurance, utilities, furnishings, and all other documented normal operating expenses.

4. Payment for eligible activities that assist in prevention of homelessness. Grants may be made for homeless prevention as long as the total amount of such grants does not exceed 30 percent of the total emergency shelter grants program allocation. Examples of eligible activities include, but are not limited to, short-term subsidies to help defray rent and utility arrearages for families faced with eviction or termination of utility services; security deposits or first month's rent for a family to acquire its own apartment; programs to provide mediation services for landlord-tenant disputes; or programs to provide legal representation to indigent tenants in eviction proceedings. Other possible types of homeless prevention efforts include making needed payments to prevent a home from falling into foreclosure.

5. Administrative costs. A grantee may use a portion of a grant received for administrative purposes as determined by IDED. The maximum allowed for these administrative costs shall be 5 percent of the state ESGP allocation. IDED reserves the authority for distribution of administrative funds.

261--24.5(PL100-628) Ineligible activities. The general rule is that any activity that is not authorized under the provision of P.L. 100-628 is ineligible to be carried out with emergency shelter grants program funds. The following are items specially listed as ineligible in 24 Code of Federal Regulations Part 576 (June 1, 1999).

1. Acquisition of an emergency shelter for the homeless;

2. Renting commercial, transient accommodations for the homeless;

3. Rehabilitation services, such as preparation of work specification, loan processing, or inspections;

4. Renovation, rehabilitation, or conversion of buildings owned by primarily religious organizations or entities.

261--24.6(PL100-628) Application procedures. The Iowa department of economic development will request applications from eligible applicants as often as the state expects funding from the U.S. Department of Housing and Urban Development (HUD). Applicants will be given at least 30 days in which to reply to the state's request. The Iowa department of economic development will make funding decisions in conjunction with the time frame established by HUD. The application must be submitted on forms prescribed by IDED and must, at a minimum, include the amount of funds requested, the need for the funds, documentation of other available funding sources, source of required local match, and estimated number of persons to be served by the applicant (daily average).

261--24.7(PL100-628) Application review process. Applications will be reviewed by a panel of the staff of the Iowa department of economic development and coordinated with representatives of other homeless assistance programs. Applications will be reviewed to determine eligibility based on the following criteria:

1. The identified community need for the funds, including the number of clients served, the unmet need in the community, geographic area of service, and common factors leading to the need for the service.

2. The comprehensiveness and flexibility of the program, including how the applicant strives to meet the total and special needs of its clients and how homeless assistance is integrated with other programs.

3. The accessibility of the applicant's services to its clients, including how well the applicant promotes its services within the community, any barriers to service, and any network with other service providers in the area.

4. How well the applicant deals with cultural diversity within its community.

5. Any partnerships or collaborations between the applicant and other programs within the organization or with other organizations performing similar or complementary services.

6. The unique role of the applicant within the area of service, including any innovative parts of the organization's project that would make it stand out.

7. A description of specific outcome measures for short- or long-term objectives for clients.

8. The experience of the applicant in administering an ESGP contract.

9. How well the applicant maximizes or leverages resources.

If an application contains an activity determined to be ineligible under the ESG program within the request for funds, the ineligible activity will be deleted from the application or referred to another funding source, if applicable.

Staff reserves the right to negotiate directly with the applicant to determine the priority of funding requested within the application. Staff may also review applications with the department of human rights, department of human services, or other groups with expertise in the area of serving homeless persons before making final funding recommendations. Consultation with other agencies is intended to avoid duplication and promote maximum utilization of funding sources. Based on the review process, IDED may revisethe overall funding request by activity or funding level and recommend a final funding figure to the director of IDED for approval. A city or county government may be determined, at the discretion of IDED, to administer a contract for multiple applicants within a prescribed geographic area. IDED reserves the right to negotiate all aspects of a funding request prior to final approval.

261--24.8(PL100-628) Matching requirement. Each recipient of emergency shelter grants program funds must match the grant amount with an equal amount. This may come from the grantee, or through nonprofit recipients whose contracts are being administered by a local city or county government. 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. For purposes of this rule, IDED will determine the value of any donated material or building, or any lease, using any method reasonably calculated to establish fair market value.

The state may grant an exemption of matching funds up to a maximum of $100,000 of the state allocation received from HUD for the recipients least capable of providing such matching amounts. The recipient must document its need to participate in this exemption from matching requirements.

261--24.9(PL100-628) Grant awards. Grants will be awarded to individual applicants. IDED may award a grant to a local city or county government on behalf of multiple applicants, at the discretion of IDED and with the approval of those applicants affected and the local governmental unit. If a city or county is designated as the grantee of an award, that city or county will be responsible for coordination of requests for funds by eligible private nonprofit recipients within its jurisdiction by consolidating them into one contract. IDED reserves the right to negotiate the amount of the grant award, the scale of the project, and alternative methods in completing the project.

261--24.10(PL100-628) Restrictions placed on grantees.

24.10(1) Use as provider of homeless services. Any building for which emergency shelter grants program funds are used must be maintained as a provider of homeless services for not less than a three-year period, or for not less than a ten-year period if the grant amounts are used for major rehabilitation or conversion of the building. All other operating and maintenance costs have a one-year requirement. In calculating the applicable time period, the three- and ten-year periods are determined as follows:

a. In the case of a building that was not operated as a provider of services for the homeless before receipt of grant funds, on the date of initial occupancy as a provider of services to the homeless.

b. In the case of a building that was operated as a provider of services to the homeless before the receipt of grant funds, on the date that grant funds are first obligated to the homeless service provider.

24.10(2) Building standards. Any building for which emergency shelter grants program funds are used for renovation, conversion, rehabilitation, or major rehabilitation must meet the local government standard of being safe and in sanitary condition.

24.10(3) Assistance to the homeless. Homeless individuals must be given assistance in obtaining:

a. Appropriate supportive services including permanent housing, medical and mental health treatment, counseling, supervision, and other services essential for achieving independent living; and

b. Other federal, state, local, and private assistance available to them.

24.10(4) Participation by homeless individuals and families.

a. Recipients of ESGP funds must certify that they involve, through employment, volunteer services, or otherwise, homeless individuals and families, to the maximum extent practicable, in construction, renovating, maintaining, and operating assisted facilities.

b. Local government recipients or qualified subrecipients must have the participation of at least one homeless person or formerly homeless person on their board of directors or equivalent policy-making entity. The Secretary of HUD may grant a waiver to the recipient if the recipient agrees to otherwise consult with homeless or formerly homeless individuals when making policy decisions.

24.10(5) Termination of assistance. Recipients or qualified subrecipients must establish and implement a formalprocess to terminate assistance to individuals or families who violate program requirements. The formal process must include a hearing process recognizing the rights of individuals.

261--24.11(PL100-628) Compliance with applicable federal and state laws and regulations. All grantees shall comply with the Iowa Code governing activities performed under this program and with all applicable provisions of the Stewart B. McKinney Homeless Assistance Amendment Act of 1988 and its implementing regulations. Use of ESGP funds must comply with the following additional requirements.

24.11(1) Nondiscrimination and equal opportunity. All grantees must comply with the following:

a. The requirements of Title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3601-19 and implementing regulations; Executive Order 11063 and implementing regulations at 24 CFR Part 107 (June 1, 1999); and Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2002d) and its implementing regulations at 24 CFR Part 1 (June 1, 1999).

b. Affirmative action requirements as implemented with Executive Orders 11625, 12432, and 12138 which require that every effort be made to solicit the participation of minority and women business enterprises (MBE/WBE) in governmental projects.

c. The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07).

d. The prohibitions against discrimination against disabled individuals under Section 504 of the Rehabilitation Act of 1973/Americans with Disabilities Act.

24.11(2) Auditing. Auditing requirements are as outlined in the Single Audit Act of 1996 and the implementing regulations found in OMB Circular A-133.

261--24.12(PL100-628) Administration.

24.12(1) Contracts. Upon selection of an application for funding, IDED will issue a contract. The contract shall be between IDED and the designated grantee as determined by IDED. If a local city or county government is designated as the grantee, the private nonprofit providers covered through the contract shall remain responsible for adherence to the requirements of the ESG program, including these rules. These rules and applicable federal and state laws and regulations become part of the contract.

Certain activities may require that permits or clearances be obtained from other state or federal agencies prior to proceeding with the project. Grant awards may be conditioned upon the timely completion of these requirements.

24.12(2) Record keeping and retention. Financial rec-ords, supporting documents, statistical records, and all other records pertinent to the grant program shall be retained by the grantee. Private nonprofit recipients covered through an ESGP contract from a local city or county government are responsible for ensuring that pertinent records of their ESGP funds be made available to the administering city or county and to IDED upon request. Proper record retention must be in accordance with the following:

a. Records for any assisted activity shall be retained for three years after final closeout and, if applicable, until audit procedures are completed and accepted by IDED;

b. Representatives of the Secretary of the U.S. Department of Housing and Urban Development, the Inspector General, the General Accounting Office, the state auditor's office, and IDED shall have access to all books, accounts, documents, records, and other property belonging to or in use by a grantee pertaining to the receipt of assistance under these rules.

24.12(3) Reporting requirements. Grantees shall submit reports to IDED as prescribed in the contract. These reports are:

a. CHIP data reports. All recipients of ESGP funds are required to submit monthly reports on clients served through the counting homeless Iowans program (CHIP) as prescribed by IDED.

b. ESGP Form-1, request for funds. Grantees must submit requests for funds as needed during the contract year as prescribed by IDED.

IDED may perform any review or field inspections it deems necessary to ensure program compliance, including review of grantee records and reports. When problems of compliance are noted, IDED may require remedial actions to be taken. Failure to respond to notifications of need for remedial action may result in the implementation of 24.12(5).

24.12(4) Amendments to contracts. Any substantive change to a funded emergency shelter operation grants program will be considered a contract amendment. Substantive changes include: contract time extensions, budget revisions, and significant alterations of existing activities that will change the scope, location, objectives, or scale of the approved activities or beneficiaries. An amendment must be requested in writing by the chief elected or appointed official of the grantee. No amendment will be valid until approved in writing by IDED.

24.12(5) Remedies for noncompliance. At any time before project closeout, IDED may, for cause, find that a grantee is not in compliance with the requirements under this program. At IDED's discretion, remedies for noncompliance may include the following:

a. Issue a warning letter that further failure to comply with program requirements within a stated period of time will result in a more serious action.

b. Condition a future grant.

c. Direct the grantee to stop incurring costs with grant amounts.

d. Require that some or all of the grant amounts be remitted to the state.

e. Reduce the levels of funds the recipient would otherwise be entitled to receive.

f. Elect not to provide future grant funds to the recipient until appropriate actions are taken to ensure compliance.

Reasons for a finding of noncompliance include, but are not limited to: the grantee's use of program funds for activities not described in its application, the grantee's failure to complete approved activities in a timely manner, the grantee's failure to comply with any applicable state or federal rules or regulations, or the lack of continuing capacity by the grantee to carry out the approved program in a timely manner.

These rules are intended to implement Iowa Code section 15.108(1)"a."

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9180A

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development adopts Chapter 29, "Homeless Shelter Operation Grants Program," Iowa Administrative Code.

The rules consolidate and clarify the program and operational requirements of the Homeless Shelter Operation Grants Program and bring the rules into conformity with other programs operated by the Department.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 8914A on April 7, 1999. The IDED Board adopted the new chapter on June 18, 1999.

A public hearing was held on April 27, 1999. No comments concerning the proposed rules were received from the public. The final rules are identical to those published under Notice of Intended Action.

These rules are intended to implement 1998 Iowa Acts, chapter 1225, section 1(3f).

These rules will become effective on August 18, 1999.

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 rules [Ch 29] is being omitted. These rules are identical to those published under Notice as ARC 8914A, IAB 4/7/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

ARC 9187A

Pursuant to the authority of Iowa Code sections 15.104 and 15.106, the Iowa Department of Economic Development hereby rescinds Chapter 72, "Use of Marketing Logo," Iowa Administrative Code, and adopts a new Chapter 72 with the same title.

The IDED Board adopted the new rules on June 17, 1999.

The new chapter reflects the adoption by the Board of a new marketing logo, establishes eligibility requirements, and describes application procedures.

Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 8911A on April 7, 1999. These rules were simultaneously Adopted and Filed Emergency as ARC 8912A.

A public hearing was held on May 4, 1999. No comments were received concerning the proposed rules. The final rules are identical to the proposed rules.

These rules are intended to implement Iowa Code section 15.108(2b).

These rules will become effective on August 18, 1999, at which time the Adopted and Filed Emergency rules are hereby rescinded.

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 rules [Ch 72] is being omitted. These rules are identical to those published under Notice as ARC 8911A, IAB 4/7/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

ARC 9205A

Pursuant to the authority of Iowa Code section 272.2, the Board of Educational Examiners hereby adopts amendments to Chapter 14, "Issuance of Practitioner's Licenses and Endorsements," Iowa Administrative Code.

The rule creates a two-year nonrenewable school counseling exchange license that may be issued to individuals under specific conditions.

Notice of Intended Action was published in the Iowa Administrative Bulletin on May 5, 1999, as ARC 8962A.

A public hearing on the proposed amendments was held on May 27, 1999. Seven persons attended the hearing, and the comments were favorable.

This rule is identical to that published under Notice.

This rule will become effective August 18, 1999.

This rule is intended to implement Iowa Code chapter 272.

The following amendments are adopted.

Renumber rules 282--14.26(272) to 282--14.33(272) as 282--14.27(272) to 282--14.34(272) and adopt the following new rule:

282--14.26(272) Two-year nonrenewable school counseling exchange license.

14.26(1) A two-year nonrenewable school counseling exchange license may be issued to an individual, provided that the individual:

a. Has completed a regionally accredited master's degree program in school guidance counseling.

b. Holds a valid school counseling certificate or license issued by an examining board which issues certificates or licenses based on requirements which are substantially equivalent to those of the board of educational examiners.

c. Meets the qualifications in Iowa Code section 272.6.

d. Is not subject to any pending disciplinary proceeding in any state.

14.26(2) Each exchange license shall be limited to the area(s) and level(s) of counseling as determined by an analysis of the application, the transcripts, and the license or certificate held in the state in which the basic preparation for the school counseling license was completed.

14.26(3) Each applicant for the exchange license shall comply with all requirements with regard to applicationprocesses and payment of licensure fees.

14.26(4) Each individual receiving the two-year exchange license will have to complete any identified licensure deficiencies in order to be eligible for a regular educational license in Iowa.

14.26(5) Individuals licensed under this provision are subject to the administrative rules of the board.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9212A

Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby adopts amendments to Chapter 12, "General Accreditation Standards," Iowa Administrative Code.

Chapter 12 provides rules for the general accreditation of schools and school districts by the State Board of Education and is being amended in accordance with Iowa Code section 256.7(21) [1998 Iowa Acts, chapter 1176]. Provisions formerly found in 12.2(1) to 12.2(6) have been amended and moved to 12.1(7) to 12.1(11).

Notice of Intended Action was published in the Iowa Administrative Bulletin on April 7, 1999, as ARC 8896A. Seven public hearings were held on the following dates: April 27, 1999; April 28, 1999; May 3, 1999; May 6, 1999; May 17, 1999; May 24, 1999; and May 27, 1999. Written and verbal comments were received. Four hundred twelve comments addressed the guidance, media, and health provisions, which were removed from the existing Chapter 12 for lack of statutory authority. Fourteen comments addressed other portions of the rules.

These rules specify requirements to meet compliance with Iowa Code section 256.7(21), which were incorporated into Chapter 12 as Division VIII. Iowa Code section 256.7(21) requires the incorporation of accountability for student achievement into the education standards and accreditation process.

The following changes have been made to the Notice:

In Item 1, changes have been made in the Preamble for clarity purposes.

In Item 2, "socioeconomic class" has been removed from 12.1(1) because it is not a protected class. Also, responsibilities of nonpublic and public schools have been clarified in 12.1(1).

In Item 4, the last paragraph in 12.1(8) has been moved to become the last paragraph of 12.1(9). A mistake was made in placement.

In Item 5, the wording in 12.2(256) for "districtwide assessments" and "school improvement advisory committee" has been changed to provide clarity.

In Item 9, language has been clarified in 12.5(8) for multicultural and gender fair approaches to education.

In Item 10, "technology education" has been changed to "technology integration" in 12.5(10) for clarity. Also, changes have been made in 12.5(12) with regard to provisions for gifted and talented students that reflect spring 1999 legislation. In addition, language has been clarified in 12.5(13) with regard to nonpublic schools.

In Item 10, new subrule 12.5(18) has been added to meet the requirements of 1999 Iowa Acts, House File 743, the Class Size Reduction/Early Intervention Program that goes into effect July 1, 1999. Additional language required by 12.5(18) has been incorporated into 12.8(1)"b"(1), 12.8(1)"b"(5), 12.8(1)"d"(1), 12.8(1)"f," and 12.8(3)"b"(8).

In Item 12, language has been clarified in 12.8(3)"a" to allow for additional subgroups as required by state or federal law.

These amendments were adopted by the State Board of Education on June 22, 1999.

These amendments will become effective August 18, 1999.

These amendments are intended to implement Iowa Code sections 256.11, 280.23, and 256.7(21).

The following amendments are adopted.

ITEM 1. Rescind 281--Chapter 12, title and preamble, and adopt the following new title and preamble:

The goal for the early childhood through twelfth grade educational system in Iowa is to improve the learning, achievement, and performance of all students so they become successful members of a community and workforce. It is expected that each school and school district shall continue to improve its educational system so that more students will increase their learning, achievement, and performance.

Accreditation focuses on an ongoing school improvement process for schools and school districts. However, general accreditation standards are the minimum requirements that must be met by an Iowa public school district to be accredited. A public school district that does not maintain accreditation shall be merged, by the state board of education, with one or more contiguous school districts as required by Iowa Code subsection 256.11(12). A nonpublic school must meet the general accreditation standards if it wishes to be designated as accredited for operation in Iowa.

General accreditation standards are intended to fulfill the state's responsibility for making available an appropriate educational program that has high expectations for all students in Iowa. The accreditation standards ensure that each child has access to an educational program that meets the needs and abilities of the child regardless of race, color, national origin, gender, disability, religion, creed, marital status, geographic location, or socioeconomic background.

With local community input, school districts and accredited nonpublic schools shall incorporate accountability for student achievement into comprehensive school improvement plans designed to increase the learning, achievement, and performance of all students. As applicable, and to the extent possible, comprehensive school improvement plans shall consolidate federal and state program goal setting, planning, and reporting requirements. Provisions for multicultural and gender fair education, technology integration, global education, gifted and talented students, at-risk students, students with disabilities, and the professional development of all staff shall be incorporated, as applicable, into the comprehensive school improvement plan. See subrules 12.5(8) to 12.5(13), 12.7(1), and 12.8(1).

ITEM 2. Amend subrule 12.1(1) as follows:

12.1(1) Educational units Schools and school districts governed by general accreditation standards. These standards govern the accreditation of all prekindergarten, if offered, or kindergarten through grade 12 school districts operated by public school corporations and the accreditation, if requested, of prekindergarten or kindergarten through grade 12 schools operated under nonpublic auspices. "School" means prekindergarten, if offered, and any organizational pattern of kindergarten through grade twelve of an elementary-secondary education program. Each school district shall take affirmative steps to integrate students in attendance centers and courses. Schools and school districts shall collect and annually review district, attendance center, and course enrollment data on the basis of race, national origin, gender, and disability. Equal opportunity in programs shall be provided to all students regardless of race, national origin, sex, or disability race, color, national origin, gender, disability, religion, or creed. Nothing in this rule shall be construed as prohibiting any bona fide religious institution from imposing qualifications based upon religion when such qualifications are related to a bona fide religious purpose. Each board shall take affirmative steps to integrate students in attendance centers and courses. In order to monitor progress, district, attendance centers, and course enrollment, data shall be collected on the basis of race, national origin, sex and disability, and reviewed and updated annually.

ITEM 3. Rescind subrule 12.1(6), renumber 12.1(7) as 12.1(6) and amend as follows:

12.1(7) 12.1(6) Alternative provisions for accreditation. School districts may meet accreditation requirements through the provisions of Iowa Code sections 256.13, nonresident pupils students; 273.7A, services to school districts; 279.20, superintendent--term; 280.15, joint employment and sharing; 282.7, attending in another corporation--payment; and 282.10, whole grade sharing. Nonpublic schools may meet accreditation requirements through the provisions of Iowa Code section 256.12.

ITEM 4. Amend 281--12.1(256) by adopting the following new subrules:

12.1(7) Minimum school calendar and day of instruction. Each board shall adopt a school calendar that identifies specific days for student instruction, staff development and in-service time, and time for parent-teacher conferences. The length of the school calendar does not dictate the length of contract or days of employment for instructional and noninstructional staff. The school calendar may be operated anytime during the school year of July 1 to June 30 as defined by Iowa Code section 279.10. A minimum of 180 days of the school calendar, for school districts beginning no sooner than a day during the calendar week in which the first day of September falls, shall be used for student instruction. However, if the first day of September falls on a Sunday, school may begin any day during the calendar week preceding September 1. These 180 days shall meet the requirements of "day of school" in subrule 12.1(8), "minimum school day" in subrule 12.1(9), and "day of attendance" in subrule 12.1(10). (Exception: A school or school district may, by board policy, excuse graduating seniors up to five days of instruction after school or school district requirements for graduation have been met.) If additional days are added to the regular school calendar because of inclement weather, a graduating senior who has met the school district's requirements for graduation may be excused from attendance during the extended school calendar. A school or school district may begin its school calendar earlier for other educational purposes involving instructional and noninstructional staff.

12.1(8) Day of school. A day of school is a day during which the school or school district is in session and students are under the guidance and instruction of the instructional professional staff. School shall be considered in session during parent-teacher conferences as well as during activities such as field trips if students are engaged in programs or activities under the guidance and direction of the instructional professional staff. All grade levels of the school or school district must be operated and available for attendance by all students. An exception is if either the elementary or secondary grades are closed and provided that this time missed is made up at some other point during the school calendar so as to meet the minimum of 180 days of instruction for all grades 1 through 12. If a classroom or attendance center is closed for emergency health or safety reasons but the remainder of the school or school district is in operation, the day may be counted as a day of school.

12.1(9) Minimum school day. A school day shall consist of a minimum of 5½ hours of instructional time for all grades 1 through 12. The minimum hours shall be exclusive of the lunch period. Passing time between classes as well as time spent on parent-teacher conferences may be counted as part of the 5½ hour requirement. The school or school district may record a day of school with less than the minimum instructional hours if emergency health or safety factors require the late arrival or early dismissal of students on a specific day; or if the total hours of instructional time for all grades 1 through 12 in any five consecutive school days equal a minimum of 27½ hours, even though any one day of school is less than the minimum instructional hours because staff development is provided for the instructional professional staff or because parent-teacher conferences have been scheduled beyond the regular school day.

Furthermore, if the total hours of instructional time for the first four consecutive days equal at least 27½ hours because parent-teacher conferences are held beyond the regular school day, a school or school district may record zero hours of instructional time on the fifth consecutive school day as a minimum school day.

12.1(10) Day of attendance. A day of attendance shall be a day during which students were present and under the guidance and instruction of the instructional professional staff. When staff development designated by the board occurs outside of the time required for a "minimum school day," students shall be counted in attendance. (Note exceptions in subrules 12.1(8) and 12.1(9).)

12.1(11) Kindergarten. The number of instructional days within the school calendar and the length of the school day for kindergarten shall be defined by the board. This subrule applies to an accredited nonpublic school only if it offers kindergarten.

ITEM 5. Rescind rule 281--12.2(256) and adopt the following new rule:

281--12.2(256) Definitions. For purposes of these rules, the following definitions shall apply:

"Annual improvement goals" means the desired one-year rate of improvement for students. Data from multiple measures may be used to determine the rate of improvement.

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

"Benchmarks" means specific knowledge and skills anchored to content standards that a student needs to accomplish by a specific grade or grade span.

"Board" means the board of directors in charge of a public school district or the authorities in charge of an accredited nonpublic school.

"Comprehensive school improvement plan" means a design that shall describe how the school or school district will increase student learning, achievement, and performance. This ongoing improvement design may address more than student learning, achievement, and performance.

"Content standards" means broad statements about what students are expected to know and be able to do.

"Curriculum" means a plan that outlines what students shall be taught. Curriculum refers to all the courses offered, or all the courses offered in a particular area of study.

"Department" means the department of education.

"Districtwide" means all attendance centers within a school district or accredited nonpublic school.

"Districtwide assessments" means large-scale achievement or performance measures. At least one districtwide assessment shall allow for the following: the comparison of the same group of students over time as they progress through the grades or the cross-sectional comparison of students at the same grades over multiple years.

"Districtwide progress" means the quantifiable change in school or school district student achievement and performance.

"Educational program." The educational program adopted by the board is the entire offering of the school, including out-of-class activities and the sequence of curriculum areas and activities. The educational program shall provide articulated, developmental learning experiences from the date of student entrance until high school graduation.

"Enrolled student" means a person that has officially registered with the school or school district and is taking part in the educational program.

"Incorporate" means integrating career education, multicultural and gender fair education, technology education, global education, higher-order thinking skills, learning skills, and communication skills into the total educational program.

"Indicators" provide information about the general status, quality, or performance of an educational system.

"Long-range goals" means desired targets to be reached over an extended period of time.

"Multiple assessment measures," for reporting to the local community or the state, means more than one valid and reliable instrument that quantifies districtwide student learning, including specific grade-level data.

"Performance levels." The federal Elementary and Secondary Education Act (ESEA) requires that at least three levels of performance be established to assist in determining which students have or have not achieved a satisfactory or proficient level of performance. At least two of those three levels shall describe what all students ought to know or be able to do if their achievement or performance is deemed proficient or advanced. The third level shall describe students who are not yet performing at the proficient level. A school or school district may establish more than three performance levels that include all students for districtwide or other assessments.

"Proficient," as it relates to content standards, characterizes student performance at a level that is acceptable by the school or school district.

"School" means an accredited nonpublic school.

"School district" means a public school district.

"School improvement advisory committee" means a committee, as defined in Iowa Code section 280.12, that is appointed by the board. Committee membership shall include students, parents, teachers, administrators, and representatives from the local community which may include business, industry, labor, community agencies, higher education, or other community constituents. To the extent possible, committee membership shall have balanced representation of the following: race, gender, national origin, and disability. The school improvement advisory committee as defined by Iowa Code section 280.12 and the board are also part of, but not inclusive of, the local community.

"Student learning goals" means general statements of expectations for all graduates.

"Students with disabilities" means students who have individualized education programs regardless of the disability.

"Subgroups" means a subset of the student population that has a common characteristic. Subgroups include, but are not limited to, gender, race, students with disabilities, and socioeconomic status.

"Successful employment in Iowa" may be determined by, but is not limited to, reviewing student achievement and performance based on locally identified indicators such as earnings, educational attainment, reduced unemployment, and the attainment of employability skills.

ITEM 6. Amend 281--12.3(256) by rescinding subrules 12.3(2) to 12.3(12) and adopting the following new subrules:

12.3(2) Policy manual. The board shall develop and maintain a policy manual which provides a codification of its policies, including the adoption date, the review date, and any revision date for each policy. Policies shall be reviewed at least every five years to ensure relevance to current practices and compliance with the Iowa Code, administrative rules and decisions, and court decisions.

12.3(3) Personnel evaluation. Each board shall adopt evaluation criteria and procedures for all contracted staff. The evaluation processes shall conform to Iowa Code sections 272.33, 279.14, and 279.23A.

12.3(4) Student records. Each board shall require its administrative staff to establish and maintain a system of student records. This system shall include for each student a permanent office record and a cumulative record.

The permanent office record shall serve as a historical record of official information concerning the student's education. At a minimum, the permanent office record should contain evidence of attendance and educational progress, serve as an official transcript, contain other data for use in planning to meet student needs, and provide data for official school and school district reports. This record is to be permanently maintained and stored in a fire-resistant safe or vault or can be maintained and stored electronically with a secure back-up file.

The cumulative record shall provide a continuous and current record of significant information on progress and growth. It should reflect information such as courses taken, scholastic progress, school attendance, physical and health record, experiences, interests, aptitudes, attitudes, abilities, honors, extracurricular activities, part-time employment, and future plans. It is the "working record" used by the instructional professional staff in understanding the student. At the request of a receiving school or school district, a copy of the cumulative record shall be sent to officials of that school when a student transfers.

For the sole purpose of implementing an interagency agreement with state and local agencies in accordance with Iowa Code section 280.25, a student's permanent record may include information contained in the cumulative record as defined above.

The board shall adopt a policy concerning the accessibility and confidentiality of student records that complies with the provisions of the federal Family Educational Rights and Privacy Act of 1974 and Iowa Code chapter 22.

12.3(5) Requirements for graduation. Each board providing a program through grade 12 shall adopt a policy establishing the requirements students must meet for high school graduation. This policy shall make provision for early graduation and shall be consistent with these requirements and Iowa Code section 280.14.

12.3(6) Student responsibility and discipline. The board shall adopt student responsibility and discipline policies as required by Iowa Code section 279.8. The board shall involve parents, students, instructional and noninstructional professional staff, and community members in the development and revision of those policies where practicable or unless specific policy is mandated by legislation. The policies shall relate to the educational purposes of the school or school district. The policies shall include, but are not limited to, the following: attendance; use of tobacco; the use or possession of alcoholic beverages or any controlled substance; harassment of or by students and staff; violent, destructive, and seriously disruptive behavior; suspension, expulsion, emergency removal, weapons, and physical restraint; out-of-school behavior; participation in extracurricular activities; academic progress; and citizenship.

The policies shall ensure due process rights for students and parents, including consideration for students who have been identified as requiring special education programs and services.

The board shall also consider the potential, disparate impact of the policies on students because of race, color, national origin, gender, disability, religion, creed, or socioeconomic background.

The board shall publicize its support of these policies; its support of the staff in enforcing them; and the staff's accountability for implementing them.

12.3(7) Health services. The board shall adopt a policy for the implementation of a school health services program consistent with the provisions of 281--41.96(256B).

12.3(8) Audit of school funds. This subrule applies to school districts. The results of the annual audit of all school district funds conducted by the state auditor or a private auditing firm shall be made part of the official records of the board as described in Iowa Code section 11.6.

12.3(9) School or school district building grade-level organization. The board shall adopt a grade-level organization for the buildings under its jurisdiction as described in Iowa Code section 279.39.

12.3(10) Report on accredited nonpublic school students. Between September 1 and October 1 of each year, the board secretary of each school district shall secure from each accredited nonpublic school located within its boundaries information about enrolled students as required by Iowa Code section 299.3. Each accredited nonpublic school shall submit the required information in duplicate. The board secretary of each school district shall send one copy to the board secretary of the area education agency within which the school district is located.

Within ten days of receipt of notice, each accredited nonpublic school shall send a report to the board secretary of the school district within which the accredited nonpublic school is located. This report shall conform to the requirements of Iowa Code section 299.3.

ITEM 7. Amend subrule 12.4(9) as follows:

12.4(9) Educational aide assistant. An educational aide assistant shall be defined as an employee or volunteer who, in the presence or absence of an instructional professional staff member but under the direction, supervision, and control of the instructional professional staff, supervises students on a monitorial or service basis; and works with students in a supportive role under conditions determined by the instructional professional staff responsible for the students, but not as a or assists in providing instructional and other direct educational services to students and their families. An educational assistant shall not substitute for or a replacement of replace the functions and duties of a teacher as established in subrule 12.4(8).

During the initial year of employment, an educational aide assistant shall complete an in-service training program staff development approved by the board as provided in subrule 12.7(1).

ITEM 8. Amend 281--12.4(256) by adopting the following new subrule:

12.4(16) Volunteer. A volunteer shall be defined as an individual who, without compensation or remuneration, provides a supportive role and performs tasks under the direction, supervision, and control of the school or school district staff. A volunteer shall not work as a substitute for or replace the functions and duties of a teacher as established in subrule 12.4(8).

ITEM 9. Amend subrules 12.5(7) and 12.5(8) as follows:

12.5(7) Career education. The board shall provide a comprehensive career education program. Each school or school district shall incorporate school-to-career educational programming into its comprehensive school improvement plan. Curricular and cocurricular teaching and learning experiences from the prekindergarten level through grade 12 shall be provided for all students. Curricular and cocurricular teaching and learning experiences regarding career education shall be provided from the prekindergarten level through grade 12. The career education program shall be infused into the total education program. Career education shall be incorporated into the total educational program and The program shall include, but need is not be limited to, awareness of self in relation to others and the needs of society; exploration of employment opportunities, at a minimum, within Iowa; experiences in personal decision making; and experiences to that help students integrate connect work values into all aspects of their lives and work skills into their lives; and the development of employability skills. In the implementation of this standard subrule, the board shall comply with Iowa Code section 280.9.

12.5(8) Board's responsibility for ensuring multicultural, nonsexist approaches to educational programs. Multicultural and gender fair approaches to the educational program. The board shall establish a policy to ensure the school is that students are free from discriminatory practices in its the educational programs program as required by Iowa Code section 256.11. In developing or revising this the policy, parents, students, instructional and noninstructional staff, and community members shall be involved. In addition, each board shall adopt a written plan, to be evaluated and updated at least every five years, for achieving and maintaining a multicultural, nonsexist educational program. A copy of the plan shall be on file in the administrative office of the school. Each school or school district shall incorporate multicultural and gender fair goals for the educational program into its comprehensive school improvement plan. The plan shall include: Incorporation shall include the following:

a. Multicultural approaches to the educational program. These shall be defined as processes approaches which foster knowledge of, and respect and appreciation for, the historical and contemporary contributions of diverse cultural groups, to society including race, color, national origin, gender, disability, religion, creed, and socioeconomic background. Special emphasis shall be placed on Asian Americans, Black Americans, Hispanic Americans, American Indians, and the disabled. The contributions and perspectives of Asian Americans, African Americans, Hispanic Americans, American Indians, European Americans, and persons with disabilities shall be included in the program. The program shall provide equal opportunity for all participants regardless of race, color, marital status, national origin, religion, or disability.

b. Nonsexist Gender fair approaches to the educational program. These shall be defined as processes approaches which foster knowledge of, and respect and appreciation for, the historical and contemporary contributions of men and women women and men to society. The program shall reflect the wide variety of roles open to both men and women women and men and shall provide equal opportunity to both sexes.

The plan shall also include specific goals and objectives, with implementation timelines for each component of the educational program; specific provisions for the infusion of multicultural, nonsexist concepts into each area of the curriculum developed under the provisions of subrule 12.5(16); a description of the in-service activities planned for all staff members on multicultural, nonsexist education; and evidence of systematic input by men and women, minority groups, and the disabled in developing and implementing the plan. In schools where no minority students are enrolled, minority group resource persons shall be utilized at least annually. A description of a periodic, ongoing system to monitor and evaluate the plan shall also be included.

ITEM 10. Rescind subrules 12.5(10) to 12.5(22) and adopt the following new subrules:

12.5(10) Technology integration. Each school or school district shall incorporate into its comprehensive school improvement plan demonstrated use of technology to meet its student learning goals. As described in Iowa Code section 295.3, progress with the use of technology shall be included in the school district's annual progress report.

12.5(11) Global education. Each school or school district shall incorporate global education into its comprehensive school improvement plan as required by Iowa Code section 256.11. Global education shall be incorporated into all areas and levels of the educational program so students have the opportunity to acquire a realistic perspective on world issues, problems, and the relationship between an individual's self-interest and the concerns of people elsewhere in the world.

12.5(12) Provisions for gifted and talented students. Each school district shall incorporate gifted and talented programming into its comprehensive school improvement plan as required by Iowa Code section 257.43. The comprehensive school improvement plan shall include the following gifted and talented program provisions: valid and systematic procedures, including multiple selection criteria for identifying gifted and talented students from the total student population; goals and performance measures; a qualitatively differentiated program to meet the students' cognitive and affective needs; staffing provisions; an in-service design; a budget; and qualifications of personnel administering the program. Each school district shall review and evaluate its gifted and talented programming. This subrule does not apply to accredited nonpublic schools.

12.5(13) Provisions for at-risk students. Each school district shall make provisions in its comprehensive school improvement plan for meeting the needs of at-risk students. Valid and systematic procedures and criteria shall be used to identify at-risk students within the school district's school-age population. Provisions for at-risk students shall include the following: modified instructional practices; specialized curriculum; parental involvement; and in-school andcommunity-based support services as required in Iowa Code sections 256.11, 280.19, and 280.19A. Each school district shall review and evaluate its at-risk program. This subrule does not apply to accredited nonpublic schools.

For those school districts requesting to use additional allowable growth for its at-risk program, the comprehensive school improvement plan shall incorporate the requirements specified in Iowa Code sections 257.38 to 257.40.

12.5(14) Unit. A unit is a course which meets one of the following criteria: it is taught for at least 200 minutes per week for 36 weeks; it is taught for the equivalent of 120 hours of instruction; or it is an equated requirement as a part of an innovative program filed as prescribed in rule 12.9(256). A fractional unit shall be calculated in a manner consistent with this subrule. Multiple-section courses taught at the same time in a single classroom situation by one teacher do not meet this unit definition for the assignment of a unit of credit. However, the third and fourth years of a foreign language may be taught at the same time by one teacher in a single classroom situation each yielding a unit of credit.

12.5(15) Credit. A student shall receive a credit or a partial credit upon successful completion of a course which meets one of the criteria in subrule 12.5(14). The board may award credit on a performance basis through the administration of an examination, provided the examination covers the content ordinarily included in the regular course.

12.5(16) Subject offering. A subject shall be regarded as offered when the teacher of the subject has met the licensure and endorsement standards of the state board of educational examiners for that subject; instructional materials and facilities for that subject have been provided; and students have been informed, based on their aptitudes, interests, and abilities, about possible value of the subject.

A subject shall be regarded as taught only when students are instructed in it in accordance with all applicable requirements outlined herein. Subjects which the law requires schools and school districts to offer and teach shall be made available during the school day as defined in subrules 12.1(8) to 12.1(10).

12.5(17) Educational excellence program--Phase III. Educational excellence funds received by school districts shall support the school district's comprehensive school improvement plan according to the intent of the general assembly as described in Iowa Code section 294A.12. When Phase III funds are used to support the district's comprehensive school improvement plan, the school district shall submit the Phase III budget on forms supplied by the department.

12.5(18) Early intervention program. Each school district receiving early intervention program funds shall make provisions to meet the needs of kindergarten through grade 3 students. The intent of the early intervention program is to reduce class size, to achieve a higher level of student success in the basic skills, and to increase teacher-parent communication and accountability. Each school district shall develop a class size management strategy by September 15, 1999, to work toward, or to maintain, class sizes in basic skills instruction for kindergarten through grade 3 that are at the state goal of 17 students per teacher. Each school district shall incorporate into its comprehensive school improvement plan goals and activities for kindergarten through grade 3 students to achieve a higher level of success in the basic skills, especially reading. A school district shall, at a minimum, biannually inform parents of their individual child's performance on the results of diagnostic assessments in kindergarten through grade 3. If intervention is appropriate, the school district shall inform the parents of the actions the school district intends to take to improve the child's reading skills and provide the parents with strategies to enable the parents to improve their child's skills.

ITEM 11. Rescind subrule 12.7(1) and adopt the following new subrule in lieu thereof:

12.7(1) Provisions for staff development. Each school or school district shall incorporate into its comprehensive school improvement plan provisions for the professional development of all staff. To meet the professional needs of all staff, staff development activities shall align with district goals; shall be based on student and staff information; shall prepare all employees to work effectively with diverse learners and to implement multicultural, gender fair approaches to the educational program; and shall emphasize the research-based practices to achieve increased student achievement, learning, and performance as stated in the comprehensive school improvement plan.

ITEM 12. Rescind the Division VIII heading and rule 281--12.8(256) and adopt the following new division headings and new rules:

281--12.8(256) Accountability for student achievement. Schools and school districts shall meet the following accountability requirements for increased student achievement. Area education agencies shall provide technical assistance as required by 281--72.7(273).

12.8(1) Comprehensive school improvement. The general accreditation standards are minimum, uniform requirements. However, the department encourages schools and school districts to go beyond the minimum with their work toward ongoing improvement. As a means to this end, local comprehensive school improvement plans shall be specific to a school or school district and designed, at a minimum, to increase the learning, achievement, and performance of all students.

As a part of ongoing improvement in its educational system, the board shall adopt a written comprehensive school improvement plan designed for continuous school, parental, and community involvement in the development and monitoring of a plan that is aligned with school or school district determined needs. The plan shall incorporate, to the extent possible, the consolidation of federal and state planning, goal setting, and reporting requirements. The plan shall contain, but is not limited to, the following components:

a. Community involvement.

(1) Local community. The school or school district shall involve the local community in decision-making processes as appropriate. The school or school district shall seek input from the local community about, but not limited to, the following elements at least once every five years:

1. Statement of philosophy, beliefs, mission, or vision;

2. Major educational needs; and

3. Student learning goals.

(2) School improvement advisory committee. To meet requirements of Iowa Code section 280.12(2), the board shall appoint and charge a school improvement advisory committee to make recommendations to the board. Based on the committee members' analysis of the needs assessment data, they shall make recommendations to the board about the following components:

1. Major educational needs;

2. Student learning goals; and

3. Long-range goals that include, but are not limited to, the state indicators that address reading, mathematics, and science achievement.

(3) At least annually, the school improvement advisory committee shall also make recommendations to the board with regard to, but not limited to, the following:

1. Progress achieved with the annual improvement goals for the state indicators that address reading, mathematics, and science in subrule 12.8(3);

2. Progress achieved with other locally determined core indicators; and

3. Annual improvement goals for the state indicators that address reading, mathematics, and science achievement.

b. Data collection, analysis, and goal setting.

(1) Policy. The board shall adopt a policy for conducting ongoing and long-range needs assessment processes. This policy shall ensure involvement of and communication with the local community regarding its expectations for adequate preparation for all students as responsible citizens and successful wage earners. The policy shall include provisions for keeping the local community regularly informed of progress on state indicators as described in subrule 12.8(3), other locally determined indicators within the comprehensive school improvement plan as required by Iowa Code section 280.12, and the methods a school district will use to inform kindergarten through grade 3 parents of their individual child's performance biannually as described in 1999 Iowa Acts, House File 743. The policy shall describe how the school or school district shall provide opportunities for local community feedback on an ongoing basis.

(2) Long-range data collection and analysis. The long-range needs assessment process shall include provisions for collecting, analyzing, and reporting information derived from local, state, and national sources. The process shall include provisions for reviewing information acquired over time on the following:

1. State indicators and other locally determined indicators;

2. Locally established student learning goals; and

3. Specific data collection required by federal and state programs.

Schools and school districts shall also collect information about additional factors influencing student achievement which may include, but are not limited to, demographics, attitudes, health, and other risk factors.

(3) Long-range goals. The board, with input from its school improvement advisory committee, shall adopt long-range goals to improve student achievement in at least the areas of reading, mathematics, and science.

(4) Annual data collection and analysis. The ongoing needs assessment process shall include provisions for collecting and analyzing annual assessment data on the state indicators, other locally determined indicators, and locally established student learning goals.

(5) Annual improvement goals. The board, with input from its school improvement advisory committee, shall adopt annual improvement goals based on data from at least one districtwide assessment. The goals shall describe desired annual increase in the curriculum areas of, but not limited to, mathematics, reading, and science achievement for all students, for particular subgroups of students, or both. Annual improvement goals may be set for the early intervention program as described in subrule 12.5(18), other state indicators, locally determined indicators, locally established student learning goals, other curriculum areas, future student employability, or factors influencing student achievement.

c. Content standards and benchmarks.

(1) Policy. The board shall adopt a policy outlining its procedures for developing, implementing, and evaluating its total curriculum. The policy shall describe a process for establishing content standards, benchmarks, performance levels, and annual improvement goals aligned with needs assessment information.

(2) Content standards and benchmarks. The board shall adopt clear, rigorous, and challenging content standards and benchmarks in reading, mathematics, and science to guide the learning of students from the date of school entrance until high school graduation. Standards and benchmarks may be adopted for other curriculum areas defined in 281--Chapter 12, Division V. The comprehensive school improvement plan submitted to the department shall contain, at a minimum, content standards for reading, mathematics, and science. The educational program as defined in 281--Chapter 12, Division II, shall incorporate career education, multicultural and gender fair education, technology integration, global education, higher-order thinking skills, learning skills, and communication skills as outlined in subrules 12.5(7), 12.5(8), 12.5(10), and 12.5(11), and subparagraph 12.8(1)"c"(1).

d. Determination and implementation of actions to meet the needs. The comprehensive school improvement plan shall include actions the school or school district shall take districtwide in order to accomplish its long-range and annual improvement goals as required in Iowa Code section 280.12(1)"b."

(1) Actions shall include, but are not limited to, addressing the improvement of curricular and instructional practices to attain the long-range goals, annual improvement goals, and the early intervention goals as described in subrule 12.5(18).

(2) A school or school district shall document consolidation of state and federal resources and requirements, as appropriate, to implement the actions in its comprehensive school improvement plan. State and federal resources shall be used, as applicable, to support implementation of the plan.

(3) A school or school district may have building-level action plans, aligned with its comprehensive school improvement plan. These may be included in the comprehensive school improvement plan or kept on file at the local level.

e. Evaluation of the comprehensive school improvement plan. A school or school district shall develop strategies to collect data and information to determine if the plan has accomplished the goals for which it was established.

f. Assessment of student progress. Each school or school district shall include in its comprehensive school improvement plan provisions for districtwide assessment of student progress for all students. The plan shall identify valid and reliable student assessments aligned with local content standards. These assessments are not limited to commercially developed measures. School districts receiving early intervention funding described in subrule 12.5(18) shall provide for diagnostic reading assessments for kindergarten through grade 3 students as described in 1999 Iowa Acts, House File 743.

(1) State indicators. Using at least one districtwide assessment, a school or school district shall assess student progress on the state indicators in, but not limited to, reading, mathematics, and science as specified in subrule 12.8(3). At least one districtwide assessment shall allow for, but not be limited to, the comparison of the school or school district's students with students from across the state and in the nation in reading, mathematics, and science. A school or school district shall use additional assessments to measure progress on locally determined content standards in at least reading, mathematics, and science.

(2) Performance levels. A school or school district shall establish at least three performance levels on at least one districtwide valid and reliable assessment in the areas of reading and mathematics for at least grades 4, 8, and 11 and science in grades 8 and 11 or use the achievement levels as established by the Iowa Testing Program to meet the intent of this subparagraph (2).

g. Assurances and support. A school or school district shall provide evidence that its board has approved and supports the five-year comprehensive school improvement plan and any future revisions of that plan. This assurance includes the commitment for ongoing improvement of the educational system.

12.8(2) Submission of a comprehensive school improvement plan. A school or school district shall submit to the department and respective area education agency a multiyear comprehensive school improvement plan on or before September 15, 2000. Beginning July 1, 2001, a school or school district shall submit a revised five-year comprehensive school improvement plan by September 15 of the school year following the comprehensive site visit specified in Iowa Code section 256.11 which incorporates, when appropriate, areas of improvement noted by the school improvement visitation team as described in subrule 12.8(4). A school or school district may, at any time, file a revised comprehensive school improvement plan with the department and respective area education agency.

12.8(3) Annual reporting requirements. A school or school district shall, at minimum, report annually to its local community about the progress on the state indicators and other locally determined indicators.

a. State indicators. A school or school district shall collect data on the following indicators for reporting purposes:

(1) The percentage of all fourth, eighth, and eleventh grade students achieving proficient or higher reading status using at least three achievement levels and by gender, race, socioeconomic status, students with disabilities, and other subgroups as required by state or federal law.

(2) The percentage of all fourth, eighth, and eleventh grade students achieving proficient or higher mathematics status using at least three achievement levels and for gender, race, socioeconomic status, students with disabilities, and other subgroups as required by state or federal law.

(3) The percentage of all eighth and eleventh grade students achieving proficient or higher science status using at least three achievement levels.

(4) The percentage of students considered as dropouts for grades 7 to 12 by gender, race, students with disabilities, and other subgroups as required by state or federal law.

(5) The percentage of high school seniors who intend to pursue postsecondary education/training.

(6) The percentage of high school students achieving a score or status on a measure indicating probable postsecondary success. This measure should be the measure used by the majority of students in the school, school district, or attendance center who plan to attend a postsecondary institution.

(7) The percentage of high school graduates who complete a core program of four years of English-language arts and three or more years each of mathematics, science, and social studies.

b. Annual progress report. Each school or school district shall submit an annual progress report to its local community, its respective area education agency, and the department. That report shall be submitted to the department by September 15, 2000, and by September 15 every year thereafter. The report shall include, but not be limited to, the following information:

(1) Baseline data on at least one districtwide assessment for the state indicators described in subrule 12.8(3). Every year thereafter the school or school district shall compare the annual data collected with the baseline data. A school or school district is not required to report to the community about subgroup assessment results when a subgroup contains fewer than ten students at a grade level. A school or school district shall report districtwide assessment results for all enrolled and tuitioned-in students.

(2) Locally determined performance levels for at least one districtwide assessment in, at a minimum, the areas of reading, mathematics, and science. Student achievement levels as defined by the Iowa Testing Program may be used to fulfill this requirement.

(3) Long-range goals to improve student achievement in the areas of, but not limited to, reading, mathematics, and science.

(4) Annual improvement goals based on at least one districtwide assessment in, at a minimum, the areas of reading, mathematics, and science. One annual improvement goal may address all areas, or individual annual improvement goals for each area may be identified. When a school or school district does not meet its annual improvement goals for one year, it shall include in its annual progress report the actions it will take to meet annual improvement goals for the next school year.

(5) Data on multiple assessments for reporting achievement for all students in the areas of reading and mathematics by September 15, 2001, and for science by September 15, 2003.

(6) Results by individual attendance centers, as appropriate, on the state indicators as stated in subrule12.8(3) and any other locally determined factors or indicators. An attendance center, for reporting purposes, is a building that houses students in grade 4 or grade 8 or grade 11.

(7) Progress with the use of technology as required by Iowa Code section 295.3. This requirement does not apply to accredited nonpublic schools.

(8) School districts are encouraged to provide information on the reading proficiency of kindergarten through grade 3 students by grade level. However, all school districts receiving early intervention block grant funds shall report to the department the progress toward achieving their early intervention goals.

(9) Other reports of progress as the director of the department requires and other reporting requirements as the result of federal and state program consolidation.

12.8(4) Comprehensive school improvement and the accreditation process. All schools and school districts having accreditation on August 18, 1999, are presumed accredited unless or until the state board takes formal action to remove accreditation. The department shall use a Phase I and a Phase II process for the continued accreditation of schools and school districts as defined in Iowa Code section 256.11(10).

a. Phase I. The Phase I process includes ongoing monitoring by the department of each school and school district to determine if it is meeting the goals of its comprehensive school improvement plan and meeting the accreditation standards. Phase I contains the following two components:

(1) Annual comprehensive desk audit. This audit consists of a review by the department of a school or school district's annual progress report. The department shall review the report as required by subrule 12.8(3) and provide feedback regarding the report. The audit shall also include a review by the department of other annual documentation submitted by a school or school district as required for compliance with the educational standards in Iowa Code section 256.11 and other reports required by the director.

When the department determines a school or school district has areas of noncompliance, the department shall consult with the school or school district to determine what appropriate actions shall be taken by the school or school district. The department shall facilitate technical assistance when requested. When the department determines that a school or school district has not met compliance with one or more accreditation standards within a reasonable amount of time, the school or school district shall submit an action plan that is approved by the department. The action plan shall contain reasonable timelines for coming into compliance. If the department determines that the school or school district is not taking the necessary actions, the director of the department may place the school or school district in a Phase II accreditation process.

If a school or school district does not meet its stated annual improvement goals for at least two consecutive years in the areas of mathematics and reading and is not taking corrective steps, the department shall consult with the school or school district and determine whether a self-study shall be required. The department shall facilitate technical assistance when needed. The self-study shall include, but is not limited to, the following:

1. A review of the comprehensive school improvement plan.

2. A review of each attendance center's student achievement data.

3. Identification of factors that influenced the lack of goal attainment.

4. Submission of new annual improvement goals, if necessary.

5. Submission, if necessary, of a revised comprehensive school improvement plan.

Upon completion of a department required self-study, the department shall collaborate with the school or school district to determine whether one or more attendance centers are to be identified as in need of improvement. For those attendance centers identified as being in need of improvement, the department shall facilitate technical assistance.

When a school or school district has completed a required self-study and has not met its annual improvement goals for at least two or more consecutive years, the department may conduct a site visit. When a site visit occurs, the department shall determine if appropriate actions were taken. If the site visit findings indicate that appropriate actions were taken, accreditation status shall remain.

(2) Comprehensive site visit. A comprehensive site visit shall occur at least once every five years as required by Iowa Code section 256.11(10) or before, if requested by the school or school district. The purpose of a comprehensive site visit is to assess progress with the comprehensive school improvement plan, to provide a general assessment of educational practices, to make recommendations with regard to the visit findings for the purposes of improving educational practices above the level of minimum compliance, and to determine that a school or school district is in compliance with the accreditation standards. The department and the school district or school may coordinate the accreditation with activities of other accreditation associations. The comprehensive site visit shall include the following components:

1. School improvement site visit team. The department shall determine the size and composition of the school improvement site visit team. The team shall include members of the department staff and may include other members such as, but not limited to, area education agency staff, postsecondary staff, and other school district or school staff.

2. Previsit actions. The school improvement team shall review the five-year comprehensive school improvement plan, annual progress reports, and any other information requested by the department.

3. The site visit report. Upon review of documentation and site visit findings, the department shall provide a written report to the school or school district based on the comprehensive school improvement plan and other general accreditation standards. The report shall state areas of strength, areas in need of improvement, and areas, if any, of noncompliance. For areas of noncompliance, the school or school district shall submit, within a reasonable time frame, an action plan to the department. The department shall determine if the school or school district is implementing the necessary actions to address areas of noncompliance. If the department determines that the school or school district is not taking the necessary actions, the director of the department may place the school or school district in a Phase II accreditation proc-ess.

b. Conditions under which a Phase II visit may occur. A Phase II accreditation process shall occur if one or more of the following conditions exist:

(1) When either the annual monitoring or the comprehensive site visit indicates that a school or school district is deficient and fails to be in compliance with accreditation standards;

(2) In response to a petition filed with the director of the department requesting such a committee visitation that is signed by 20 percent or more of the registered voters of a school district;

(3) In response to a petition filed with the director of the department requesting such a committee visitation that is signed by 20 percent or more of the families having enrolled students in a school or school district; or

(4) At the direction of the state board of education.

c. The Phase II process. The Phase II process shall consist of monitoring by the department. This monitoring shall include the appointment of an accreditation committee to complete a comprehensive review of the school or school district documentation on file with the department. The accreditation committee shall complete one or more site visits. The Phase II process shall include the following components:

(1) Accreditation committee. The director of the department shall determine accreditation committee membership. The chairperson and majority of the committee shall be department staff. The committee may also include at least one representative from another school or school district, AEA staff, postsecondary education staff, board members, or community members. No member of an accreditation committee shall have a direct interest, as determined by the department, in the school or school district involved in the Phase II process. The accreditation committee shall have access to all documentation obtained from the Phase I process.

(2) Site visit. The accreditation committee shall conduct one or more site visits to determine progress made on noncompliance issues.

(3) Accreditation committee actions. The accreditation committee shall make a recommendation to the director of the department regarding accreditation status of the school or school district. This recommendation shall be contained in a report to the school or school district that includes areas of strength, areas in need of improvement, and, if any, the areas still not in compliance. The committee shall provide advice on available resources and technical assistance for meeting the accreditation standards. The school or school district may respond in writing to the director if it does not agree with the findings in the Phase II accreditation committee report.

(4) State board of education actions. The director of the department shall provide a report and a recommendation to the state board as a result of the Phase II accreditation committee visit and findings. The state board shall determine accreditation status. When the state board determines that a school or school district shall not remain accredited, the director of the department shall collaborate with the school or school district board to establish an action plan that includes deadlines by which areas of noncompliance shall be corrected. The action plan is subject to the approval by the state board.

(5) Accreditation status. During the period of time the school or school district is implementing the action plan approved by the state board, the school or school district shall remain accredited. The accreditation committee may revisit the school or school district and determine whether the areas of noncompliance have been corrected. The accreditation committee shall report and recommend one of the following actions:

1. The school or school district shall remain accredited.

2. The school or school district shall remain accredited under certain specified conditions.

3. The school or school district shall have its accreditation removed as outlined in Iowa Code section 256.11(12).

The state board shall review the report and recommendation, may request additional information, and shall determine the accreditation status and further actions required by the school or school district as outlined in Iowa Code section 256.11(12).

281--12.9(256) General accreditation standards exemption request. A school or school district may seek department approval for an exemption as stated in Iowa Code sections 256.9(48) and 256.11(8). The school or school district shall submit the exemption request to the director of the department with, at a minimum, the following: (1) the written request and (2) the standard exemption plan as described in subrule 12.9(1). For the 1999-2000 school year, the written request and plan shall be submitted before October 1, 1999. For subsequent school years, the written request and plan shall be submitted on or before January 1 preceding the beginning of the school year for which the exemption is sought. The exemption request may be approved for a time period not to exceed five years. The department may approve, on request of the school or school district, an extension of the exemption beyond the initial five-year period. The department shall notify the school or school district of the approval or denial of its exemption request not later than March 1 of the school year in which the request was submitted.

12.9(1) General accreditation standards exemption plan. The plan shall contain, but is not limited to, the following components:

a. The standard or standards for which the exemption is requested.

b. A rationale for each general accreditation standard identified in paragraph "a." The rationale shall describe how the approval of the request will assist the school or school district to improve student achievement or performance as described in its comprehensive school improvement plan.

c. The sources of supportive research evidence and information, when appropriate, that were analyzed and used to form the basis of each submitted rationale.

d. How the school or school district staff collaborated with the local community or with the school improvement advisory committee about the need for the exemption request.

e. Evidence that the board approved the exemption request.

f. A list of the indicators that will be measured to determine success.

g. How the school or school district will measure the success of the standards exemption plan on improving student achievement or performance.

In its annual progress report as described in paragraph 12.8(3)"b," the school or school district that receives an exemption approval shall include data to support increased student learning, achievement, or performance that has resulted from the approved standards exemption.

12.9(2) General accreditation standards exemption request and exemption plan review criteria. The department shall use the information provided in the written request and exemption plan as described in subrule 12.9(1) to determine approval or denial of requests for exemptions from the general accreditation standards. The department will use the following criteria for approval or denial of an exemption plan:

a. Components "a" through "g" listed in subrule 12.9(1) are addressed.

b. Clarity, thoroughness, and reasonableness are evident, as determined by the department, for each component of the accreditation standards exemption plan.

These rules are intended to implement Iowa Code sections 256.11, 280.23, and 256.7(21).

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9196A

Pursuant to the authority of Iowa Code section 147.76, the Board of Massage Therapy Examiners hereby amends Chapter 131, "Continuing Education and Disciplinary Procedures," and rescinds Chapter 136, "Petitions for Rule Making," Chapter 137, "Declaratory Rulings," Chapter 138, "Agency Procedure for Rule Making," and Chapter 139, "Public Records and Fair Information Practices," Iowa Administrative Code.

The amendments rescind chapters that duplicate those adopted by the Professional Licensure Division to cover all examining boards in the Division.

Notice of Intended Action was published in the Iowa Administrative Bulletin on April 7, 1999, as ARC 8886A. A public hearing was held on April 28, 1999, from 9 to 11 a.m. in the Professional Licensure Conference Room, Lucas State Office Building. No comments were received. The adopted amendments are unchanged from those published under Notice of Intended Action.

These amendments were adopted by the Board of Examiners for Massage Therapy on June 2, 1999.

These amendments will become effective on August 18, 1999.

These amendments are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code chapters 147, 152C and 272C.

The following amendments are adopted.

ITEM 1. Rescind and reserve rules 645--131.6(152C) to 645--131.16(152C).

ITEM 2. Amend paragraph 131.17(2)"k" as follows:

k. Failure to pay any civil penalties assessed pursuant to rule 131.11 131.18(152C) or 131.12 131.19(152C).

ITEM 3. Rescind and reserve 645--Chapter 136, "Petitions for Rule Making," 645--Chapter 137, "Declaratory Rulings," 645--Chapter 138, "Agency Procedure for Rule Making," and 645--Chapter 139, "Public Records and Fair Information Practices."

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9199A

Pursuant to the authority of Iowa Code section 147.76, the Board of Psychology Examiners hereby amends Chapter 240, "Board of Psychology Examiners," and rescinds Chapter 241, "Child Support Noncompliance," Chapter 242, "Impaired Practitioner Review Committee," and Chapter 249, "Public Records and Fair Information Practices," Iowa Administrative Code.

The amendments rescind chapters and rules that duplicate those adopted by the Professional Licensure Division to cover all examining boards in the Division. Language allowing civil penalties not to exceed $1000 is added to 240.212(272C).

Notice of Intended Action was published in the Iowa Administrative Bulletin on March 24, 1999, as ARC 8840A. A public hearing was held on April 15, 1999, from 9 to 11 a.m. in the Professional Licensure Conference Room, Lucas State Office Building, Fifth Floor, Des Moines, Iowa. No comments were received. The adopted amendments are unchanged from those published under Notice of Intended Action.

These amendments were adopted by the Board of Psychology Examiners on June 11, 1999.

These amendments will become effective August 18, 1999.

The amendments are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code chapters 154B and 272C.

The following amendments are adopted.

ITEM 1. Rescind and reserve 645--240.200(258A) to 645--240.211(258A) and 645--240.213(272C) to 645-- 240.300(21).

ITEM 2. Amend rule 645--240.212(272C), introductory paragraph, as follows:

645--240.212(272C) Suspension, revocation, or probation. Grounds for discipline. The board may revoke or suspend a license, or place a licensee on probation for any of the following reasons 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 a licensee is guilty of any of the following acts or offenses:

ITEM 3. Rescind and reserve 645--Chapter 241, "Child Support Noncompliance," 645--Chapter 242,"Impaired Practitioner Review Committee," and 645--Chapter 249, "Public Records and Fair Information Practices."

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9197A

Pursuant to the authority of Iowa Code section 147.76, the Board of Respiratory Care Examiners hereby amends Chapter 260, "Respiratory Care Practitioners," and rescinds Chapter 261, "Impaired Practitioner Review Committee," Chapter 262, "Child Support Noncompliance," Chapter 269, "Public Records and Fair Information Practices," Iowa Administrative Code.

The amendments rescind chapters that duplicate those adopted by the Professional Licensure Division to cover all examining boards in the division.

A public hearing was held on April 28, 1999, from 9 to 11 a.m. in the Professional Licensure Conference Room, Lucas State Office Building, Fifth Floor, Des Moines, Iowa 50319-0075. No written or verbal comments were received.

Notice of Intended Action was published in the April 7, 1999, Iowa Administrative Bulletin as ARC 8879A. The adopted amendments are unchanged from those published under Notice of Intended Action.

The amendments were adopted by the Board of Respiratory Care Examiners on June 17, 1999.

These amendments will become effective on August 18, 1999.

The Board has determined that the amendments will have no impact on small business within the meaning of Iowa Code section 17A.31C.

These amendments are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code chapters 147, 152B and 272C.

The following amendments are adopted.

ITEM 1. Rescind and reserve rules 645--260.18(152B) to 645--260.27(152B,272C).

ITEM 2. Amend rule 645--260.28(152A,272C), introductory sentence, as follows:

645--260.28(152A,272C) Grounds for discipline. The board may impose any of the disciplinary sanctions set forth in rule 260.29(152B,272C) 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:

ITEM 3. Amend rule 645--260.28(152A,272C), numbered paragraph "13," as follows:

13. Unethical practices, including:

* Betraying a professional confidence;

* Falsifying patient records;

* Engaging in a professional conflict of interest;

* Misappropriation of funds; .

* Violation of rule 260.32(152B,272C)

ITEM 4. Rescind and reserve rule 645--260.28(152A, 272C), numbered paragraph "32."

ITEM 5. Rescind and reserve rules 645--260.30(152B, 272C) to 645--260.34(152B,272C).

ITEM 6. Rescind and reserve 645--Chapter 261, "Impaired Practitioner Review Committee," 645--Chapter 262, "Child Support Noncompliance," and 645--Chapter 269, "Public Records and Fair Information Practices."

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9195A

Pursuant to the authority of Iowa Code section 147.76, the Board of Athletic Training Examiners hereby amends Chapter 350, "Athletic Training," and rescinds Chapter 355, "Petitions for Rule Making," Chapter 356, "Declaratory Rulings," Chapter 357, "Agency Procedure for Rule Making," and Chapter 358, "Public Records and Fair Information Practices," Iowa Administrative Code.

The amendments rescind the chapters that duplicate those adopted by the Professional Licensure Division to cover all examining boards in the division. Language allowing civil penalties not to exceed $1000 is added to 350.26(272C).

Notice of Intended Action was published in the Iowa Administrative Bulletin on March 24, 1999, as ARC 8831A. A public hearing was held on April 15, 1999. No written or verbal comments were received on these amendments.

The amendments are unchanged from the Notice of Intended Action.

The Board of Athletic Training Examiners adopted the amendments on June 22, 1999.

These amendments will become effective on August 18, 1999.

The Board has determined that the amendments will have no impact on small business within the meaning of Iowa Code section 17A.31C.

These amendments are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code chapters 152D and 272C.

The following amendments are adopted.

ITEM 1. Rescind and reserve 645--350.22(272C) to 645--350.25(272C) and 645--350.27(272C) to 645-- 350.30(272C).

ITEM 2. Amend 645--350.26(272C), introductory sentence, as follows:

645--350.26(272C) Grounds for discipline. The board may impose any of the disciplinary sanctions provided in rule 645--350.25 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:

ITEM 3. Rescind and reserve 645--Chapter 355, "Petitions for Rule Making," 645--Chapter 356, "Declaratory Rulings," 645--Chapter 357, "Agency Procedure for Rule Making," and 645--Chapter 358, "Public Records and Fair Information Practices."

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9203A

Pursuant to the authority of Iowa Code section 136C.3, the Department of Public Health hereby adopts amendments to Chapter 41, "Safety Requirements for the Use of Radiation Machines and Certain Uses of Radioactive Materials"; Chapter 42, "Minimum Certification Standards for Diagnostic Radiographers, Nuclear Medicine Technologists, and Radiation Therapists"; and Chapter 45, "Radiation Safety Requirements for Industrial Radiographic Operations," Iowa Administrative Code.

These amendments incorporate changes to correct references, changes made at the federal level which establish national standards, and changes made in coordination with the Board of Nursing.

The State Board of Health adopted these amendments at their regular board meeting on May 12, 1999.

Notice of Intended Action regarding these amendments was published in the Iowa Administrative Bulletin on May 5, 1999, as ARC 8956A. A public hearing was held on May 25, 1999, at 9 a.m. in the Fifth Floor East Conference Room of the Lucas State Office Building, Des Moines, Iowa. There were two people in attendance, and six sets of written comments were received, reviewed, considered, and incorporated as appropriate. The change made from the Notice of Intended Action is as follows:

In Item 3, references to "visiting nuclear pharmacist" were changed to "visiting authorized nuclear pharmacist."

These amendments will become effective September 15, 1999.

These amendments are intended to implement Iowa Code chapter 136C.

The following amendments are adopted.

ITEM 1. Amend subrule 41.1(2), definition of "Healing arts screening," as follows:

"Healing arts screening" means the testing of human beings using X-ray machines for the detection or evaluation of health indications when such tests are not specifically and individually ordered by a licensed practitioner of the healing arts an individual authorized under 41.1(3)"a"(7) legally authorized to prescribe such X-ray tests for the purpose of diagnosis or treatment.

ITEM 2. Amend 41.1(3)"a"(7) as follows:

(7) Individuals shall not be exposed to the useful beam except for healing arts purposes and unless such exposure has been authorized by a licensed practitioner of the healing arts or a licensed registered nurse who is registered as an advanced registered nurse practitioner pursuant to Iowa Code chapter 152. This provision specifically prohibits deliberate exposure for the following purposes:

1. Exposure of an individual for training, demonstration, or other nonhealing arts purposes; and

2. Exposure of an individual for the purpose of healing arts screening except as authorized by 41.1(3)"a"(11).

ITEM 3. Amend subrule 41.2(12) as follows:

41.2(12) Visiting authorized user and visiting authorized nuclear pharmacist.

a. A licensee may permit any visiting authorized user or visiting authorized nuclear pharmacist to use licensed material for medical use under the terms of the licensee's license for 60 days each year if:

(1) The visiting authorized user or visiting authorized nuclear pharmacist has the prior written permission of the licensee's management and, if the use occurs on behalf of an institution, the institution's radiation safety committee;

(2) The licensee has a copy of an agency, agreement state, licensing state or U.S. Nuclear Regulatory Commission license that identifies the visiting authorized user or visiting authorized nuclear pharmacist by name as an authorized user for medical use; and

(3) Only those procedures for which the visiting authorized user or visiting authorized nuclear pharmacist is specifically authorized by an agency (, agreement state, licensing state or U.S. Nuclear Regulatory Commission) license are performed by that individual.

b. A licensee need not apply for a license amendment in order to permit a visiting authorized user or visiting authorized nuclear pharmacist to use licensed material as described in 41.2(12)"a."

c. A licensee shall retain copies of the records specified in 41.2(12)"a" for five years from the date of the last visit.

ITEM 4. Amend subrule 41.3(1), paragraph "b," as follows:

b. The use of therapeutic radiation machines shall be by, or under the supervision of, a licensed practitioner of the healing arts physician who meets the training/experience criteria established by 41.3(4)"c."

ITEM 5. Amend subrule 41.3(5), paragraph "f," as follows:

f. Notwithstanding the requirements of 41.3(4)"b," 41.3(5)"b," the registrant for any therapeutic radiation machine subject to 41.3(7) 41.3(17) and 41.3(18) may also submit the training of the prospective authorized user physician for agency review.

ITEM 6. Amend subrule 41.3(9) as follows:

41.3(9) Individuals shall not be exposed to the useful beam except for medical therapy purposes and unless such exposure has been ordered in writing by a licensed practitioner of the healing arts physician. This provision specifically prohibits deliberate exposure of an individual for training, demonstration or other non-healing arts purposes.

ITEM 7. Amend subrule 41.3(10), introductory paragraph, as follows:

41.3(10) Records of visiting authorized users. Notwithstanding the provisions of 41.3(4)"g," 41.3(5), a registrant may permit any physician to act as an a visiting authorized user under the following conditions:

ITEM 8. Amend subrule 41.3(11) by adopting new paragraph "e" as follows:

e. Records of training specified in 41.3(5) and 41.3(6).

ITEM 9. Amend subrule 42.1(2), definition of "Diagnostic radiographer," introductory paragraph, as follows:

"Diagnostic radiographer" means an individual, other than a licensed practitioner or dental radiographer, who applies X-radiation to the human body for diagnostic purposes while under the supervision of a licensed practitioner or registered nurse registered as an advanced registered nurse practitioner pursuant to Iowa Code chapter 152. The types are as follows:

ITEM 10. Amend subrule 42.2(3), paragraph "a," introductory paragraph, as follows:

a. Each individual, other than a licensed practitioner, who is certified under these rules shall, during a two-year period, obtain continuing education credit as follows:

ITEM 11. Amend subrule 42.3(3), paragraph "a," introductory paragraph, as follows:

a. All individuals, except licensed practitioners, seeking to perform diagnostic radiography must, in addition to subrule 42.3(1), take and satisfactorily pass a written examination within one year of the date of the initial certification. Examination must include the following subject matter for each category of radiographer:

ITEM 12. Adopt the following new subrule:

45.3(1) Limits on external radiation levels from storage containers and source changers. The maximum exposure rate limits for storage containers and source changers are 200 millirems (2 millisieverts) per hour at any surface, and 10 millirem (0.1 millisieverts) per hour at 1 meter from any exterior surface with the sealed source in the shielded position.

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 7/14/99.

ARC 9189A

Pursuant to the authority of Iowa Code sections 99D.7 and 99F.4, the Racing and Gaming Commission hereby rescinds Chapter 4, "Practice and Procedure Before the Racing and Gaming Commission," and adopts a new Chapter 4, "Contested Cases and Other Proceedings," Iowa Administrative Code.

This amendment rescinds the current rules for practice and procedure before the Racing and Gaming Commission and replaces them to comply with Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202.

These adopted rules are identical to those published under Notice of Intended Action in the May 5, 1999, Iowa Administrative Bulletin as ARC 8958A.

A public hearing was held on May 25, 1999. No comments were received.

These rules will become effective August 18, 1999.

These rules are intended to implement Iowa Code chapters 99D and 99F and chapter 17A as amended by 1998 Iowa Acts, chapter 1202.

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 rules [Ch 4] is being omitted. These rules are identical to those published under Notice as ARC 8958A, IAB 5/5/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

ARC 9188A

Pursuant to the authority of Iowa Code sections 99D.7 and 99F.4, the Racing and Gaming Commission hereby rescinds Chapter 9, "Harness Racing," and adopts a new Chapter 9 with the same title and amends Chapter 13, "Occupational and Vendor Licensing," Iowa Administrative Code.

Item 1 rescinds the current harness racing chapter and adopts a new chapter in lieu thereof.

Item 2 establishes criteria for harness racing drivers.

These amendments are identical to those published under Notice of Intended Action in the May 5, 1999, Iowa Administrative Bulletin as ARC 8959A.

A public hearing was held on May 25, 1999. No comments were received.

These amendments will become effective August 18, 1999.

These amendments are intended to implement Iowa Code chapters 99D and 99F.

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 rules [Ch 9, 13.27] is being omitted. These rules are identical to those published under Notice as ARC 8959A, IAB 5/5/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

ARC 9192A

Pursuant to the authority of Iowa Code sections 421.14 and 450.3, the Department of Revenue and Finance hereby adopts amendments to Chapter 86, "Inheritance Tax," Chapter 87, "Iowa Estate Tax," Chapter 88, "Generation Skipping Transfer Tax," and Chapter 89, "Fiduciary Income Tax," Iowa Administrative Code.

Notice of Intended Action was published in IAB Volume XXI, page 2692, on May 5, 1999, as ARC 8930A.

The purpose of these amendments is to update the chapters by amending rules to comply with current law and adding examples, striking obsolete language and examples, and providing additional information and examples to clarify the rules included in 701--Chapters 86 to 89 of the Iowa Administrative Code. Several rules have been rearranged to assist in setting forth the rules in a more efficient and understandable manner. As a result, there are several rules in which large amounts of current and valid text are to be stricken. However, this stricken text becomes new language in a new rule or part of a new subrule or paragraph in order that the information be contained in a more logical sequence.

Due to comments received from members of the Iowa State Bar Association, the Department has entered into an agreement with the Iowa State Bar Association that rules included under the original notice that are of concern to members of the Bar Association or have been raised by members of the Bar Association as being subject to amendment due to recent legislative changes, will not be adopted, and subsequent revisions to such rules will be made under a separate Notice of Intended Action.

Changes from the Notice of Intended Action are as follows:

(1) In 701 IAC 86.5(4), the unnumbered example proposed in the Notice was not adopted.

(2) In 701 IAC 86.5(7)"d," the following sentence, proposed in the Notice of Intended Action, was not adopted: "Gifts will be valued at the date of the decedent's death, unless alternative valuation is chosen."

(3) In 701 IAC 86.5(7)"d," Example B was stricken.

(4) A sentence in 701 IAC 86.5(8)"a" was amended as follows for the purpose of clarification: "However, if the survivor can establish by competent evidence that the separate money or property was used and contributed to a larger percentage than one-half to the acquisition of a specific item or items of jointly held property, then the larger percentage of such item or items shall be excluded from taxation."

(5) In 701 IAC 86.6(1)"g," the proposed last unnumbered paragraph of the Notice of Intended Action was not adopted.

(6) In 701 IAC 86.6(4), the proposed example following the third unnumbered paragraph was not adopted.

(7) In 701 IAC 86.8(1), a typographical error was corrected as follows: "In general. Effective for estate of decedents dying on or after July 1, 1982, real estate which has been valued at its special use value under 26 U.S.C. Section 2023A 2032A for computing the federal estate tax....".

(8) In 701 IAC 86.12(5)"b," the proposed first two sentences were not adopted.

(9) In 701 IAC 89.8(1), the new language proposed in the Notice of Intended Action to constitute the last unnumbered paragraph was not adopted.

These amendments were made by the Department upon the request of the Iowa State Bar Association for the purpose of clarity, accuracy and to update current language.

These amendments will become effective August 18, 1999, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

These amendments are intended to implement Iowa Code chapters 422, 450, 450A, 450B, 451, and 633.

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 rules [amendments to Chs 86 to 89] is being omitted. With the exception of the changes noted above, these rules are identical to those published under Notice as ARC 8930A, IAB 5/5/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

ARC 9207A

Pursuant to the authority of Iowa Code sections 17A.3and 216A.143, the Commission on the Status of African-Americans hereby adopts Chapter 3, "Petitions for Rule Making," Chapter 4, "Agency Procedure for Rule Making," Chapter 5, "Declaratory Orders," and Chapter 6, "Contested Cases," Iowa Administrative Code.

Chapters 3 to 6 will govern petitions for rule making, procedures for rule making, declaratory orders, and contested cases.

The Seventy-seventh General Assembly passed amendments to the Iowa Administrative Procedure Act in 1998 Iowa Acts, chapter 1202. The Attorney General's Office drafted amendments to the Uniform Rules on Agency Procedure to implement the amendments to the Iowa Administrative Procedure Act. The Commission is adopting the uniform rules. The Commission believes these changes will bring the Commission's rules into compliance with 1998 Iowa Acts, chapter 1202, which became effective July 1, 1999.

Notice of Intended Action was published in the April 7, 1999, Iowa Administrative Bulletin as ARC 8862A. No public comment was received on these rules. These rules are identical to those published under Notice.

These rules will become effective August 18, 1999.

These rules are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202.

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 rules [Chs 3 to 6] is being omitted. These rules are identical to those published under Notice as ARC 8862A, IAB 4/7/99.

[For replacement pages for IAC, see IAC Supplement 7/14/99.]

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