Iowa Administrative Bulletin

IOWA ADMINISTRATIVE BULLETIN

Published Biweekly VOLUME XXII NUMBER 6 September 22, 1999 Pages 393 to 472

CONTENTS IN THIS ISSUE

Pages 414 to 445 include ARC 9349A to ARC 9365A

AGENDA

Administrative rules review committee 398

ALL AGENCIES

Schedule for rule making 396

Publication procedures 397

Administrative rules on CD-ROM 397

Agency identification numbers 407

CITATION OF ADMINISTRATIVE RULES 395

EMERGENCY MANAGEMENT DIVISION[605]

PUBLIC DEFENSE DEPARTMENT[601]"umbrella"

Notice of Public Funds Availability 409

HUMAN SERVICES DEPARTMENT[441]

Notice, Skilled nursing facilities, 79.1, 81.10(1)
ARC 9349A 414

Notice, Family and group child care homes,
110.2, 110.5, 110.7(3), 110.9(3), 110.25
to 110.27, 110.31, 110.35 ARC 9352A 415

INSPECTIONS AND APPEALS DEPARTMENT[481]

Filed, Food code; food protection certification
programs, 30.2, 31.1(13), 31.4, 31.7, 31.12,
ch 32, 34.1, 34.2 ARC 9353A 433

INSURANCE DIVISION[191]

COMMERCE DEPARTMENT[181]"umbrella"

Notice, Securities, 50.109, 50.110
ARC 9365A 417

Notice, External review, ch 76 ARC 9356A 418

Filed, 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 9358A 438

IOWA FINANCE AUTHORITY[265]

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]"umbrella"

Notice, Title guaranty division--mortgage
release certificate, 9.20 ARC 9362A 420

Filed Emergency After Notice, Agency
procedures, 1.4 to 1.7, ch 7, 9.8 to 9.11,
9.22 to 9.28, chs 16, 17 ARC 9361A 432

LAW ENFORCEMENT ACADEMY[501]

Filed, Law enforcement officers,
2.1, 2.2, 2.4, 2.5 ARC 9354A 441

LIBRARIES AND INFORMATION SERVICES
DIVISION[286]

EDUCATION DEPARTMENT[281]"umbrella"

Notice, Iowa regional library system, ch 8
ARC 9350A 424

MEDICAL EXAMINERS BOARD[653]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Notice, Examinations, licensure, and
discipline, 10.6, 11.22, 11.30(2), 12.4(19)
ARC 9351A 426

PERSONNEL DEPARTMENT[581]

Notice, State employee health flexible spending
account trust fund, 15.13 ARC 9364A 427

PUBLIC FUNDS--AVAILABILITY

Emergency Management Division[605]
Hazard mitigation grant 409

Public Health Department[641]
Anatomical gift public awareness 410
Critical access hospital grant 411
Substance abuse/tobacco preclusion 412, 413

PUBLIC HEALTH DEPARTMENT[641]

Notices of Public Funds Availability 410

PUBLIC HEARINGS

Summarized list 402

REVENUE AND FINANCE DEPARTMENT[701]

Notice, Composite returns; investment tax credit;
franchise tax credit; corporate tax, 48.1, 52.1,
52.10, 52.16, 53.2, 54.1 ARC 9359A 428

Filed, Replacement tax and statewide property
tax, 10.1(3), ch 70 ARC 9360A 442

SAVINGS AND LOAN DIVISION[197]

COMMERCE DEPARTMENT[181]"umbrella"

Filed, Agency procedures, chs 15 to 17
ARC 9355A 443

SECRETARY OF STATE[721]

Notice, Constitutional amendment,
21.200(3)"a" ARC 9357A 430

SUPREME COURT

Decisions summarized 446

UTILITIES DIVISION[199]

COMMERCE DEPARTMENT[181]"umbrella"

Filed, Declaratory orders,
ch 4 ARC 9363A 443

PUBLISHED UNDER AUTHORITY OF IOWA CODE SECTIONS 2B.5 AND 17A.6

__________________________________

PREFACE

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

SUBSCRIPTION INFORMATION

Iowa Administrative Bulletin

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.

July 1, 1999, to June 30, 2000 $253.86 plus $12.69 sales tax

Iowa Administrative Code

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

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Telephone: (515)242-5120

Schedule for Rule Making
1999

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
8
Friday, October 1, 1999
October 20, 1999
9
Friday, October 15, 1999
November 3, 1999
10
Friday, October 29, 1999
November 17, 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.

PUBLICATION PROCEDURES

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.

______________________

IOWA ADMINISTRATIVE RULES and IOWA COURT RULES on CD-ROM

1999 SUMMER EDITION

Containing: Iowa Administrative Code (updated through June 1999)
Iowa Administrative Bulletins (January 1999 through June 1999)
Iowa Court Rules (updated through June 1999)

For free brochures and order forms contact:

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

AGENDA

The Administrative Rules Review Committee will hold its regular, statutory meeting on Monday, October 11, 1999, at9 a.m. in House Committee Room 1, State Capitol, Des Moines, Iowa. The following rules will be reviewed:

Bulletin

COLLEGE STUDENT AID COMMISSION[283]

EDUCATION DEPARTMENT[281]"umbrella"

Iowa vocational-technical tuition grant program, 13.1, Filed ARC 9337A 9/8/99

Iowa national guard tuition aid program, ch 20 title, 20.1, 20.1(1), 20.1(4), 20.1(5), Filed ARC 9336A 9/8/99

Chiropractic graduate student forgivable loan program, 32.1(1) to 32.1(4), 32.1(9), Filed ARC 9338A 9/8/99

Teacher shortage forgivable loan program, ch 35, Filed ARC 9335A 9/8/99

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]

Certified school to career program, 11.3(10)"b," Filed ARC 9340A 9/8/99

ACE PIAP program, ch 20, Filed ARC 9341A 9/8/99

Iowa community development block grant program, 23.4(6), 23.6(3)"c"(8), 23.6(3)"d" and "f," 23.6(4)"c"(8),
23.6(4)"e," Filed ARC 9342A 9/8/99

Recreation, environment, art and cultural heritage initiative (REACH)--community attraction and tourism
development program, ch 65, Filed ARC 9343A 9/8/99

EDUCATION DEPARTMENT[281]

Beginning teacher induction program, ch 83, Notice ARC 9313A, also Filed Emergency ARC 9315A 9/8/99

Financial incentives for national board certification, 84.1 to 84.4, Notice ARC 9316A, also
Filed Emergency ARC 9314A 9/8/99

Supplementary weighting, ch 97, Notice ARC 9312A, also Filed Emergency ARC 9318A 9/8/99

HUMAN SERVICES DEPARTMENT[441]

Correction of references--liability for support, 29.3, 30.2, Filed ARC 9292A 9/8/99

FIP and FMAP--notice of decision; Medicaid eligibility for children, 40.25, 75.1(7)"a"(4), 75.1(7)"b,"
75.1(14)"a," 75.1(15)"a," 75.1(17), 75.1(28)"b," 75.1(35)"a"(2) and (3), 75.1(35)"b"(1),
75.1(35)"c"(1) and (3), 75.13(2), 75.13(3), 75.52(1), 75.56(1), 76.2(1)"a," "b" and "d," 76.3, 76.4(3),
83.2(1)"c"(1) and (4), Filed ARC 9295A 9/8/99

Child care assistance, 41.24(10)"c," 41.27, 41.27(2)"b," 41.27(8)"a"(1) and (2), 41.27(8)"b"(2), 41.27(8)"c,"
41.28(1)"b"(4), 49.36, 93.108(2), 93.110, 93.110(1) to 93.110(5), 93.113, 93.114(12)"b,"
93.114(13)"a" to "c," 93.132"13," 93.151, 93.151(3)"a," 93.151(4), 93.152, Filed ARC 9296A 9/8/99

Subsidized guardianship program, 75.1(11), ch 204, Filed Emergency After Notice ARC 9300A 9/8/99

Medicaid payment for hearing aids, 78.14, Filed ARC 9301A 9/8/99

Medicaid; Medicaid payments to nursing facilities, 79.1(2), 79.1(8)"a," 81.6(16)"e" and "g," 81.6(17), 81.22(2),
Filed ARC 9302A 9/8/99

Skilled nursing facility rates, 79.1(2), 79.1(9)"a" and "d," 81.10(1), Notice ARC 9349A 9/22/99

Family and group day care homes, 110.2(1), 110.2(2), 110.5(11), 110.5(13)"b," "e" and "f," 110.7(3), 110.9(3)"c,"
ch 110 division II preamble, 110.25(8)"b," 110.25(9)"b"(1)"2" and "3," 110.25(9)"b"(3) and (4), 110.26"3,"
110.27(1)"a"(3), 110.27(2)"a"(3), 110.27(2)"c"(3)"2" and "3," 110.27(2)"d," 110.27(3)"c"(2)"1" to "3,"
110.27(3)"d," 110.27(4)"c"(2)"1" to "3," 110.27(4)"d," 110.31, 110.35, Notice ARC 9352A 9/22/99

Child care services, 130.2, 130.3(1)"d" and "e," 130.3(3)"x," "y" and "aa," 130.3(6), 130.4, 130.4(3),
130.5(1)"i," 130.5(3)"d," ch 170 title and preamble, 170.1, 170.2(1) to 170.2(4), 170.3, 170.4(1),
170.4(3), 170.4(4), 170.4(7)"a," 170.4(7)"a"(1), 170.4(7)"b," "d" and "e," 170.8, Filed ARC 9303A 9/8/99

Reimbursement rates for shelter care, adoption and independent living services, and rehabilitative
treatment service providers, 150.3(5)"p"(1) and (2), 150.3(5)"p"(2)"1" and "3" to "5," 150.22(7)"p"(1),
150.22(7)"p"(1)"1," 150.22(7)"p"(2), 185.101, 185.112, 185.112(1)"k"(3), Filed ARC 9304A 9/8/99

Foster family care and adoption payment rates, 156.6(1), Filed ARC 9305A 9/8/99

Foster home insurance fund, 158.1(1)"b," 158.2, Filed ARC 9306A 9/8/99

Foster care project grants, rescind ch 164, Filed ARC 9307A 9/8/99

Funding for empowerment areas, ch 169 preamble, 169.1, 169.3(1), 169.4, 169.5(1), 169.9, Filed ARC 9308A 9/8/99

Foster care services, 202.16(1)"e," 202.16(2)"b," 202.17(1), Filed ARC 9309A 9/8/99

INSPECTIONS AND APPEALS DEPARTMENT[481]

Food code, food protection certification programs, 30.2, 31.1(13), 31.4, 31.7(2) to 31.7(9), 31.12, ch 32,
34.1(4), 34.1(14), 34.2, Filed ARC 9353A 9/22/99

INSURANCE DIVISION[191]

COMMERCE DEPARTMENT[181]"umbrella"

Health insurance, 27.3(4), 35.20(5) to 35.20(7), 35.32 to 35.34, 40.1, 40.12, 40.20, 40.24, 71.14(9),
71.20 to 71.22, 75.7(3), 75.7(4), 75.13 to 75.16, Filed ARC 9358A 9/22/99

Annuity mortality tables for use in determining reserve liabilities for annuities, ch 43, Filed ARC 9344A 9/8/99

Valuation of life insurance policies, ch 47, Notice ARC 9345A 9/8/99

Sales of securities at financial institutions, 50.81 to 50.88, Notice ARC 9114A Terminated ARC 9347A 9/8/99

Investment advisers or investment adviser representatives--examination requirements, 50.109, 50.110,
Notice ARC 9365A 9/22/99

External review, ch 76, Notice ARC 9356A 9/22/99

IOWA FINANCE AUTHORITY[265]

ECONOMIC DEVELOPMENT, IOWA DEPARTMENT OF[261]"umbrella"

Administrative procedures, 1.4 to 1.7, ch 7, 9.8 to 9.11, 9.22 to 9.28, chs 16 and 17,
Filed Emergency After Notice ARC 9361A 9/22/99

Mortgage release certificate, 9.20, Notice ARC 9362A 9/22/99

LAW ENFORCEMENT ACADEMY[501]

Minimum standards for Iowa law enforcement officers, 2.1(1), 2.1(3), 2.1(5), 2.2(1), 2.2(4), 2.2(7)"d,"
2.2(8)"a" and "b," 2.4, 2.5, Filed ARC 9354A 9/22/99

LIBRARIES AND INFORMATION SERVICES DIVISION[286]

EDUCATION DEPARTMENT[281]"umbrella"

Iowa regional library system, ch 8, Notice ARC 9350A 9/22/99

MEDICAL EXAMINERS BOARD[653]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Meetings and examination administration; recording of licenses; permanent license; disciplinary action,
10.6, 11.22, 11.30(2), 12.4(19)"a" and "b," Notice ARC 9351A 9/22/99

NATURAL RESOURCE COMMISSION[571]

NATURAL RESOURCES DEPARTMENT[561]"umbrella"

Blufflands protection program and revolving loan fund, ch 24, Filed Emergency After Notice ARC 9331A 9/8/99

Local recreation infrastructure grants program--application rating system, 29.7(4),
Filed Emergency After Notice ARC 9333A 9/8/99

Lake restoration--cost-share requirements and eligible projects, 30.14(5), 30.14(6),
Filed Emergency After Notice ARC 9334A 9/8/99

Zoning of the Mississippi River, McGregor, Clayton County, 40.47, Filed ARC 9329A 9/8/99

Boating accident reports, 42.2, Notice ARC 9328A 9/8/99

Game management areas--shooting ranges, 51.3(1), Notice ARC 9327A 9/8/99

State parks and recreation areas, 61.3(5)"a," 61.6(11), Filed ARC 9332A 9/8/99

Nursery stock sale to the public, 71.3(1) to 71.3(4), Filed ARC 9330A 9/8/99

Fishing regulations, 81.1, 81.2(2), 81.2(5), Notice ARC 9326A 9/8/99

Waterfowl and coot hunting seasons, 91.1, 91.1(1), 91.3, 91.3(1), 91.4(2)"g," "h" and "o," 91.6,
Filed Emergency After Notice ARC 9325A 9/8/99

Nonresident deer hunting, 94.7(2), 94.7(4), Notice ARC 9324A 9/8/99

Wild turkey spring hunting, 98.1(1), 98.2(2), 98.2(4), 98.2(5), 98.3(1)"a," 98.3(2)"a," 98.3(4), 98.5, 98.10(1),
98.10(2), 98.13(2), 98.14, 98.16, Notice ARC 9322A 9/8/99

Deer hunting, 106.11(4)"b," Notice ARC 9323A 9/8/99

NURSING BOARD[655]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Licensure fees, 3.1, Filed ARC 9320A 9/8/99

PERSONNEL DEPARTMENT[581]

General, 1.1, 3.1(2), 3.7, 4.5(1), 4.5(4) to 4.5(6), 4.6(6)"b," 4.6(12), 4.8(1), 4.9(5), 5.5(2), 8.5, 9.2(2),
9.3 to 9.7, 12.2(6), 14.2(2)"e," 14.3(10), 14.4(14), 14.5(5), 14.7, 14.8(1), 17.14(1), 17.14(2),
17.14(6), 17.15(6), 19.1, 19.1(5), Filed ARC 9299A 9/8/99

Benefits, 15.1(3), 15.8, Notice ARC 9297A, also Filed Emergency ARC 9298A 9/8/99

Health flexible spending account, 15.13, Notice ARC 9364A 9/22/99

PHARMACY EXAMINERS BOARD[657]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Controlled substances--classification of dronabinol, 10.20(1), 10.20(2), 10.21, 10.22, Filed Emergency ARC 9317A 9/8/99

PROFESSIONAL LICENSURE DIVISION[645]

PUBLIC HEALTH DEPARTMENT[641]"umbrella"

Licensure of nursing home administrators; continuing education, 141.5(1) to 141.5(5), 141.6, 141.6(1) to 141.6(3),
141.11(2), 141.11(3), 143.1, 143.2(2), 143.4(1), Notice ARC 9339A 9/8/99

REVENUE AND FINANCE DEPARTMENT[701]

Interest, penalty, exceptions to penalty, and jeopardy assessments; replacement tax and statewide property tax,
10.1(3), ch 70, Filed ARC 9360A 9/22/99

Individual and corporation tax, 48.1, 52.1, 52.10(2), 52.16, 53.2(3)"d," 54.1, Notice ARC 9359A 9/22/99

Administration; motor fuel and undyed special fuel; liquefied petroleum gas--compressed natural gas, 67.1,
67.2, 67.3(10)"d," 67.5, 67.11, 67.15(1), 67.15(2), 67.17, 67.18, 67.21(1)"c"(4), 67.23(4), 67.24, 67.26,
68.2(2), 68.5, 68.8(5), 68.9(6), 68.12, 69.2, 69.4(2), 69.8, 69.13(2), 69.15, Notice ARC 9346A 9/8/99

SAVINGS AND LOAN DIVISION[197]

COMMERCE DEPARTMENT[181]"umbrella"

Petitions for rule making; declaratory orders; contested cases, chs 15 to 17, Filed ARC 9355A 9/22/99

SCHOOL BUDGET REVIEW COMMITTEE[289]

EDUCATION DEPARTMENT[281]"umbrella"

On-time funding for increased enrollment, ch 7, Notice ARC 9311A 9/8/99

SECRETARY OF STATE[721]

Forms--annual agricultural landholding report, 4.2(4), Notice ARC 9348A 9/8/99

150-day public notice for constitutional amendments, 21.200(3)"a," Notice ARC 9357A 9/22/99

Election forms and instructions, 21.800(4), 21.803(4), Notice ARC 9293A, also Filed Emergency ARC 9294A 9/8/99

TRANSPORTATION DEPARTMENT[761]

Vehicle registration and certificate of title; motor vehicle and travel trailer dealers, manufacturers,
distributors and wholesalers, 400.3(2), 400.4(3)"b" to "g," 400.5(2), 400.8, 400.12, 400.28,
400.61(5), 425.3, 425.30, 425.31, 425.50, 425.50(2)"a," 425.50(2)"d"(3), 425.51, 425.53, Notice ARC 9319A 9/8/99

Vehicle registration and certificate of title, 400.14(1), Notice ARC 9310A 9/8/99

Special registration plates, 401.2(1), 401.6(1), 401.6(5), 401.7(1), 401.7(5), 401.8 to 401.11, 401.12(1),
401.12(5), 401.16, 401.17(3), 401.19, 401.20(1), 401.21 to 401.25, 401.27 to 401.31, Notice ARC 9321A 9/8/99

UTILITIES DIVISION[199]

COMMERCE DEPARTMENT[181]"umbrella"

Declaratory orders, ch 4, Filed ARC 9363A 9/22/99

ADMINISTRATIVE RULES REVIEW COMMITTEE MEMBERS

Regular statutory meetings are held the second Tuesday of each month at the seat of government as provided in Iowa Code section 17A.8. A special meeting may be called by the Chair at any place in the state and at any time.

EDITOR'S NOTE: Terms ending April 30, 2003.

Senator H. Kay Hedge
3208 335th Street
Fremont, Iowa 52561
Representative Janet Metcalf
12954 Oak Brook Drive
Urbandale, Iowa 50323
Senator Merlin E. Bartz
2081 410th Street
Grafton, Iowa 50440
Representative Clyde Bradley
835 Blackhawk Lane
Camanche, Iowa 52730
Senator Patricia M. Harper
3336 Santa Maria Drive
Waterloo, Iowa 50702
Representative Danny Carroll
244 400th Avenue
Grinnell, Iowa 50112
Senator John P. Kibbie
P.O. Box 190
Emmetsburg, Iowa 50536
Representative Minnette Doderer
2008 Dunlap Court
Iowa City, Iowa 52245
Senator Sheldon Rittmer
3539 230th Street
DeWitt, Iowa 52742
Representative Geri Huser
213 7th Street NW
Altoona, Iowa 50009
Joseph A. Royce
Legal Counsel
Capitol, Room 116A
Des Moines, Iowa 50319
Telephone (515)281-3084
Fax (515)281-5995
Brian Gentry
Administrative Rules Coordinator
Governor's Ex Officio Representative
Capitol, Room 11
Des Moines, Iowa 50319

PUBLIC HEARINGS

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

EDUCATION DEPARTMENT[281]

Beginning teacher induction program,
ch 83
IAB 9/8/99 ARC 9313A
(See also ARC 9315A)
(ICN Network)
ICN Room--2nd Floor
Grimes State Office Bldg.
Des Moines, Iowa
(Origination site)
October 4, 1999
4 to 6 p.m.

East Union Jr/Sr High School
1916 High School Dr.
Afton, Iowa
October 4, 1999
4 to 6 p.m.

ICN Classroom 13
Algona Attendance Center
Iowa Lakes Community College
2111 Hwy. 169 N.
Algona, Iowa
October 4, 1999
4 to 6 p.m.

Room 8, Bldg. 6
Des Moines Area Community College
2006 S. Ankeny Blvd.
Ankeny, Iowa
October 4, 1999
4 to 6 p.m.

Louisa Room
Mississippi Bend AEA 9
729 21st St.
Bettendorf, Iowa
October 4, 1999
4 to 6 p.m.

Room 108
Great River AEA 16
1200 University
Burlington, Iowa
October 4, 1999
4 to 6 p.m.

ICN Classroom 1
AEA 7
3712 Cedar Heights Dr.
Cedar Falls, Iowa
October 4, 1999
4 to 6 p.m.

ICN Classroom 106A
Washington High School
2205 Forest Dr. SE
Cedar Rapids, Iowa
October 4, 1999
4 to 6 p.m.

Room 111
Charles City High School
1 Comet Dr.
Charles City, Iowa
October 4, 1999
4 to 6 p.m.

Media Center
Lewis Central High School
Hwy. 275
Council Bluffs, Iowa
October 4, 1999
4 to 6 p.m.

Senior High School
404 Park Ave.
Dows, Iowa
October 4, 1999
4 to 6 p.m.
EDUCATION DEPARTMENT[281] (Cont'd)
ICN Network

ICN Classroom
Keystone AEA 1
1400 2nd St. SW
Elkader, Iowa
October 4, 1999
4 to 6 p.m.

Reg Johnson Hall 105
Ellsworth Community College
1100 College Ave.
Iowa Falls, Iowa
October 4, 1999
4 to 6 p.m.

ICN Classroom
Southern Prairie AEA 15
2814 N. Court St.
Ottumwa, Iowa
October 4, 1999
4 to 6 p.m.

ICN Classroom 103
AEA 4
1382 4th Ave.
Sioux Center, Iowa
October 4, 1999
4 to 6 p.m.

Individual Learning Center
Central Campus
1121 Jackson St.
Sioux City, Iowa
October 4, 1999
4 to 6 p.m.
Financial incentives for national
board certification,
84.1 to 84.4
IAB 9/8/99 ARC 9316A
(See also ARC 9314A)
State Board Room--2nd Floor
Grimes State Office Bldg.
Des Moines, Iowa
September 28, 1999
9 a.m.
Supplementary weighting,
ch 97
IAB 9/8/99 ARC 9312A
(See also ARC 9318A)
ICN Room--2nd Floor
Grimes State Office Bldg.
Des Moines, Iowa
September 29, 1999
9:45 a.m.

All AEAs in the state of Iowa
(ICN Network)
September 29, 1999
9:45 a.m.

State Board Room--2nd Floor
Grimes State Office Bldg.
Des Moines, Iowa
September 29, 1999
1 p.m.
INSURANCE DIVISION[191]

Valuation of life insurance policies,
ch 47
IAB 9/8/99 ARC 9345A
330 Maple St.
Des Moines, Iowa
September 28, 1999
10 a.m.
External review,
ch 76
IAB 9/22/99 ARC 9356A
330 E. Maple St.
Des Moines, Iowa
October 12, 1999
10 a.m.
IOWA FINANCE AUTHORITY[265]

Mortgage release certificate,
9.20
IAB 9/22/99 ARC 9362A
Conference Room
100 E. Grand Ave.
Des Moines, Iowa
October 26, 1999
1 p.m.
LABOR SERVICES DIVISION[875]

Report of injury form--filing by
facsimile,
4.4, 4.19
IAB 8/25/99 ARC 9287A
1000 E. Grand Ave.
Des Moines, Iowa
September 22, 1999
2 p.m.
(If requested)
Discrimination against employees,
9.4
IAB 8/25/99 ARC 9286A
1000 E. Grand Ave.
Des Moines, Iowa
September 22, 1999
1 p.m.
(If requested)
General industry safety and health,
10.20
IAB 8/25/99 ARC 9288A
1000 E. Grand Ave.
Des Moines, Iowa
September 22, 1999
2 p.m.
(If requested)
Construction safety and health,
26.1
IAB 8/25/99 ARC 9290A
1000 E. Grand Ave.
Des Moines, Iowa
September 22, 1999
2 p.m.
(If requested)
Employment agency licensing,
38.1 to 38.10
IAB 8/25/99 ARC 9289A
1000 E. Grand Ave.
Des Moines, Iowa
September 22, 1999
1 p.m.
(If requested)
LIBRARIES AND INFORMATION SERVICES DIVISION[286]

Iowa regional library system,
ch 8
IAB 9/22/99 ARC 9350A
Conference Room
State Library
E. 12th St. and Grand Ave.
Des Moines, Iowa
October 12, 1999
10 a.m.
NATURAL RESOURCE COMMISSION[571]

Boating accidents--reports,
42.2
IAB 9/8/99 ARC 9328A
Conference Room--4th Floor West
Wallace State Office Bldg.
Des Moines, Iowa
September 29, 1999
10 a.m.
Game management areas,
51.3(1)
IAB 9/8/99 ARC 9327A
Conference Room--4th Floor West
Wallace State Office Bldg.
Des Moines, Iowa
September 29, 1999
9 a.m.
Sport fishing,
81.1, 81.2
IAB 9/8/99 ARC 9326A
Community Room
Farmers and Merchants Savings Bank
201 W. Main
Waukon, Iowa
October 4, 1999
7 p.m.

Basement Room
Frontier Bank Bldg.
Rock Rapids, Iowa
October 19, 1999
7 p.m.
Nonresident deer hunting--handguns,
94.7
IAB 9/8/99 ARC 9324A
Conference Room--4th Floor West
Wallace State Office Bldg.
Des Moines, Iowa
September 28, 1999
10 a.m.
Wild turkey spring hunting,
98.1(1), 98.2, 98.3, 98.5, 98.10,
98.13(2), 98.14, 98.16
IAB 9/8/99 ARC 9322A
Conference Room--4th Floor West
Wallace State Office Bldg.
Des Moines, Iowa
October 12, 1999
10 a.m.
Deer hunting,
106.11(4)
IAB 9/8/99 ARC 9323A
Conference Room--4th Floor West
Wallace State Office Bldg.
Des Moines, Iowa
September 28, 1999
10 a.m.
PERSONNEL DEPARTMENT[581]

Benefits,
15.1(3), 15.5
IAB 9/8/99 ARC 9297A
(See also ARC 9298A)
North Conference Room--1st Floor
Grimes State Office Bldg.
Des Moines, Iowa
September 28, 1999
1 p.m.
Health flexible spending account,
15.13
IAB 9/22/99 ARC 9364A
North Conference Room--1st Floor
Grimes State Office Bldg.
Des Moines, Iowa
October 14, 1999
1 p.m.
PROFESSIONAL LICENSURE DIVISION[645]

Nursing home administrators,
141.5, 141.6, 141.11,
143.1, 143.2(2), 143.4(1)
IAB 9/8/99 ARC 9339A
Board Conference Room--5th Floor
Lucas State Office Bldg.
Des Moines, Iowa
September 30, 1999
10 a.m. to 12 noon
SCHOOL BUDGET REVIEW COMMITTEE[289]

On-time funding for increased
enrollment, ch 7
IAB 9/8/99 ARC 9311A
ICN Room--2nd Floor
Grimes State Office Bldg.
Des Moines, Iowa
September 28, 1999
12:30 p.m.

All AEAs in the state of Iowa
(ICN Network)
September 28, 1999
12:30 p.m.

State Board Room--2nd Floor
Grimes State Office Bldg.
Des Moines, Iowa
September 28, 1999
2:30 p.m.
SECRETARY OF STATE[721]

Forms--annual agricultural
landholding report, 4.2(4)
IAB 9/8/99 ARC 9348A
O'Connor Conference Room
Hoover State Office Bldg.--2nd Floor
Des Moines, Iowa
September 28, 1999
10 to 10:30 a.m.
Constitutional amendment,
21.200(3)"a"
IAB 9/22/99 ARC 9357A
Conference Room 330--3rd Floor
Hoover State Office Bldg.
Des Moines, Iowa
October 12, 1999
8:30 to 9:30 a.m.
Local option tax elections,
21.800(4), 21.803(4)
IAB 9/8/99 ARC 9293A
(See also ARC 9294A)
Office of Secretary of State
Hoover State Office Bldg.--2nd Floor
Des Moines, Iowa
September 28, 1999
1:30 p.m.
TRANSPORTATION DEPARTMENT[761]

Vehicle registration and certificate of
title; motor vehicle and travel
trailer dealers, manufacturers,
distributors and wholesalers,
400.3(2), 400.4(3), 400.5(2), 400.8,
400.12, 400.28, 400.61(5), 425.3,
425.30, 425.31, 425.50, 425.53
IAB 9/8/99 ARC 9319A
Conference Room
Lower Level
Park Fair Mall
100 Euclid Ave.
Des Moines, Iowa
September 30, 1999
10:30 a.m.
(If requested)
TRANSPORTATION DEPARTMENT[761] (Cont'd)

Transfer of vehicle owned by
more than one person,
400.14(1)
IAB 9/8/99 ARC 9310A
Conference Room
Lower Level
Park Fair Mall
100 Euclid Ave.
Des Moines, Iowa
September 30, 1999
10 a.m.
(If requested)
Special registration plates,
401.2(1), 401.6 to 401.12, 401.16,
401.17(3), 401.19, 401.20(1),
401.21 to 401.25, 401.27 to 401.31
IAB 9/8/99 ARC 9321A
Conference Room
Lower Level
Park Fair Mall
100 Euclid Ave.
Des Moines, Iowa
September 30, 1999
11 a.m.
(If requested)
UTILITIES DIVISION[199]

U S WEST communications,
IAB 8/11/99 ARC 9266A
Board Hearing Room
350 Maple St.
Des Moines, Iowa
October 12, 1999
10 a.m.
Unauthorized changes of
telecommunications service,
6.8, 22.23
IAB 8/11/99 ARC 9267A
Board Hearing Room
350 Maple St.
Des Moines, Iowa
October 21, 1999
10 a.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

AGENCY IDENTIFICATION NUMBERS

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]

NOTICES

ARC 9349A

HUMAN SERVICES DEPARTMENT[441]

Notice of Intended Action

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 249A.4, the Department of Human Services proposes to amend Chapter 79, "Other Policies Relating to Providers of Medical and Remedial Care," and Chapter 81, "Nursing Facilities," appearing in the Iowa Administrative Code.

These amendments revise the historical cost reporting time periods used for the rebasing of skilled nursing facility rates, provide a methodology for determining costs for facilities that have elected to receive the low Medicare volume prospective payment rate for 1998, change maximum allowable cost caps from percentiles to dollar amounts, and clarify policy regarding the determination of per diem rates for skilled nursing facilities. In addition, an obsolete reference to subrule 79.1(9) in 441--Chapter 81 is deleted.

Current policy requires skilled nursing facility rates to be rebased every three years. The adjustments made through rebasing will serve to reflect changes in the cost of care.

Facilities that have elected to receive the low Medicare volume prospective payment rate for 1998 shall have the Medicare 1998 prospective payment rate plus ancillary costs attributable to skilled patient days and not payable by Medicare used to determine the facility's Medicaid costs per patient day. These facilities are not required to divide routine service costs between skilled patient days and regular nursing facility patient days in the Medicare cost reports, making it impossible to determine the routine service costs attributable to skilled patient days from those reports. Providing this reimbursement methodology will address appeals received at the time of the last rebasing.

Changing maximum allowable cost caps from percentiles to dollar amounts will provide consistency with other cost-based providers. The maximum allowable cost for skilled care shall be $346.20 per day for hospital-based facilities and $163.41 per day for freestanding facilities.

Clarification of the skilled nursing facility rules will provide consistency with changes previously made to the nursing facility rules.

These amendments do not provide for waivers in specified situations because the Department believes that the same data and methodologies should be used for determining reimbursement rates for all skilled nursing facilities. Facilities may request a waiver of any part of the reimbursement methodology under the Department's general rule on exceptions at rule 441--1.8(217).

Consideration will be given to all written data, views, and arguments thereto received by the Bureau of Policy Analysis, Department of Human Services, Hoover State Office Building, Des Moines, Iowa 50319-0114, on or before October 13, 1999.

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

The following amendments are proposed.

ITEM 1. Amend rule 441--79.1(249A) as follows:

Amend subrule 79.1(2), Basis of reimbursement provider category of "Nursing facilities: Skilled nursing care providers," as follows:

Provider category
Basis of reimbursement
Upper limit
Nursing facilities:

2. Skilled nursing care ~~providers, including~~ provided in:

Hospital-based facilities
Prospective reimbursement.
See 79.1(9)
Facility base rate per diems used on 6/30/99 inflated by 2% subject to a maximum allowable payment rate ~~at the sixtieth percentile of costs of all~~ of $346.20 per day for hospital-based skilled facilities
Freestanding facilities
Prospective reimbursement.
See 79.1(9)
Facility base rate per diems used on 6/30/99 inflated by 2% subject to a maximum allowable payment rate ~~at the sixty-ninth percentile of costs of all~~ of $163.41 per day for freestanding skilled facilities

Amend subrule 79.1(9), paragraphs "a" and "d," as follows:

a. The base year per diem rate shall be the Medicaid cost per diem as determined using the facility's ~~1995~~ 1998 fiscal year-end Medicare cost report. The base per diem rate for facilities enrolled since ~~1995~~ 1998 will be determined using the facility's first finalized Medicare cost report. Determination of allowable costs for the base year will be made using Medicare methods in place on December 31, ~~1995~~ 1998. For facilities that have elected to receive the low Medicare volume prospective payment rate for 1998, the Medicare 1998 prospective payment rate plus ancillary costs attributable to skilled patient days and not payable by Medicare shall be used to determine the facility's Medicaid costs per patient day.

A new skilled facility shall be reimbursed at an interim rate determined by Medicare, or for facilities not participating in Medicare, at an interim rate determined using Medicare methodology. The initial interim rate shall be either the rate used by Medicare or a per diem (using Medicare methodology) developed using a projected cost statement from the facility. When the facility submits the first cost report to Medicare, the facility shall send a copy to the Medicaid fiscal agent. A new prospective rate shall be established based on this cost report effective the first day of the month in which the cost report is received. ~~The interim~~ Interim and ~~prospective rate~~ final rates may not exceed the ~~ceiling~~ maximum allowable costs established in paragraph "d" below unless the facility meets the requirements in paragraph "e" below.

d. Effective February 1, ~~1997~~ 2000, ~~a ceiling of~~ the maximum allowable cost for skilled care shall be ~~established at the sixtieth~~ ~~percentile~~ $346.20 per day for hospital-basedfacilities and ~~the sixty-ninth percentile~~ $163.41 per day for freestanding facilities. ~~The allowable cost shall be weighted by Medicaid patient days.~~

ITEM 2. Amend subrule 81.10(1) as follows:

81.10(1) Method of payment. Facilities shall be reimbursed under a cost-related vendor payment program. A per diem rate shall be established based on information submitted according to rule 441--81.6(249A) ~~or 441--subrule 79.1(9)~~. The per diem rate shall be no greater than the maximum reasonable cost determined by the department.

ARC 9352A

HUMAN SERVICES DEPARTMENT[441]

Notice of Intended Action

Pursuant to the authority of Iowa Code section 237A.12, the Department of Human Services proposes to amend Chapter 110, "Family and Group Day Care Homes," appearing in the Iowa Administrative Code.

These amendments implement the following changes to policy governing family and group child care homes:

* Training requirements are revised and clarified. Training choices are expanded for the pilot project counties, and pilot project counties are required to have four hours of their required training in a sponsored group setting. The remaining hours may be received in self-study using a training package approved by the Department.

* Current standards for cardiopulmonary resuscitation and first-aid training are incorporated.

* The four-level child care pilot program is expanded from two counties (Scott and Delaware) to a maximum of two counties per Departmental region, depending on interest. The transition exception for new pilot program counties is extended to January 1, 2002. A report is due to the General Assembly in January of 2000 regarding the feasibility of implementing the project statewide.

* Provider qualifications are revised for Level II, III and IV providers to add the option of equivalent experience instead of experience at lower levels and to clarify it was not the Department's intent that all providers must start at Level I.

* References to "child day care" or "day care" are changed to "child care" to comply with legislative changes.

* Form names and numbers are corrected and updated.

These amendments do not provide for waivers in specified situations because amendments are required by state legislation that does not allow for any waiver.

These amendments are intended to implement Iowa Code section 234.6 and chapter 237A as amended by 1999 Iowa Acts, House File 761, division I.

The following amendments are proposed.

ITEM 1. Amend 441--Chapter 110 by replacing the terms "day care" and "child day care" with the term "child care" wherever they occur.

ITEM 2. Amend subrules 110.2(1) and 110.2(2) as follows:

110.2(1) Family child care home. A family child care home shall make application for registration on ~~Application for Family Child Care Home Registration, SS-1105-3~~ Form 470-3384, Application for Child Care Home Registration, provided by the county office of the department. The family child care home shall use Form ~~SS-1105-3~~ 470-3384 to inform the department of any changes in circumstances that would affect their registration.

110.2(2) Group child care home. A group child care home shall make application for registration on ~~Application for Group Child Care Home Registration, SS-1115-3~~ Form 470-3384, Application for Child Care Home Registration, provided by the county office of the department. The group child care home shall use Form ~~SS-1115-3~~ 470-3384 to inform the department of any changes in circumstances that would affect their registration.

ITEM 3. Amend rule 441--110.5(237A) as follows:

Amend subrule 110.5(11) as follows:

110.5(11) A Request for Child Abuse Information, Form ~~SS-1606-0~~ 470-0643, shall be completed concerning the provider and all persons living or working in the same home.

Amend subrule 110.5(13), paragraphs "b" and "e," as follows:

b. During the first year of registration as a family or group child care home and the first year a nonregistered family child care home is under a department certificate agreement, the provider shall receive:

(1) Certification in American Red Cross or American Heart Association infant, child, and adult cardiopulmonary resuscitation (CPR) or equivalent CPR certification approved by the department. A valid certificate indicating the date of training and expiration date shall be maintained.

(2) ~~Certification in American Red Cross infant, child, and adult first-aid or equivalent certification approved by the department.~~ Certification in infant, child, and adult first aid that uses a nationally recognized curriculum or is received from a nationally recognized training organization including the American Red Cross, American Heart Association, the National Safety Council, and Emergency Medical Planning (Medic First Aid) or an equivalent certification approved by the department. A valid certificate indicating the date of training and expiration date shall be maintained.

(3) Two hours of health and safety training.

e. In addition, the provider shall receive two hours of child abuse and neglect mandatory reporter training every five years ~~and maintain CPR certification and first-aid certification~~.

Further amend subrule 110.5(13) by rescinding and reserving paragraph "f."

ITEM 4. Amend subrule 110.7(3), introductory paragraph, as follows:

110.7(3) The department shall submit record checks for each registrant, staff member, and anyone living in the home who is 14 years of age or older to determine whether they have any founded child abuse reports or criminal convictions. Form ~~SS-1606-0~~ 470-0643, Request for Child Abuse Information, and Form 595-1396, ~~Request for Non-Law Enforcement Record Check~~ DHS Criminal History Record Check, Form B, shall be used for this purpose.

ITEM 5. Amend subrule 110.9(3), paragraph "c," as follows:

c. A completed Request for Child Abuse Information, Form ~~SS-1606-0~~ 470-0643.

ITEM 6. Amend the implementation clause at the end of 441--Chapter 110, Division I, to read as follows:

These rules are intended to implement Iowa Code ~~sections~~ section 234.6~~, 237A.2 to 237A.5 as amended by 1997 Iowa Acts, Senate File 541, section 2, 237A.12, 237A.13,~~ and ~~237A.15~~ chapter 237A as amended by 1999 Iowa Acts, House File 761, division I.

ITEM 7. Amend 441--Chapter 110, Division II, Preamble, as follows:

PREAMBLE

The purpose of this division is to establish a pilot project for a four-level approach to child care home registration as mandated by the general assembly in ~~1997 Iowa Acts, Senate File 541, section 3~~ Iowa Code section 237A.3A as amended by 1999 Iowa Acts, House File 761, section 4. The pilot project shall ~~operate in Delaware and Scott counties~~ include a maximum of two counties in each department region where there is interest. The provisions of this division do not apply to unregistered family child care homes located in those ~~two~~ counties. ~~Reports~~ A report shall be submitted to the general assembly in ~~February and December of 1998~~ January 2000 regarding the feasibility of implementing the pilot project statewide.

ITEM 8. Amend rule 441--110.25(237A) as follows:

Amend subrule 110.25(8), paragraph "b," as follows:

b. A completed Request for Child Abuse Information, Form ~~SS-1606-0~~ 470-0643.

Amend subrule 110.25(9), paragraph "b," subparagraph (1), numbered paragraphs "2" and "3," as follows:

2. Certification in American Red Cross or American Heart Association infant, child, and adult cardiopulmonary resuscitation (CPR) or equivalent CPR certification approved by the department. A valid certificate indicating the date of training and expiration date shall be maintained.

3. ~~Certification in American Red Cross infant, child, and adult first-aid or equivalent certification approved by the department.~~ Certification in infant, child, and adult first aid that uses a nationally recognized curriculum or is received from a nationally recognized training organization including the American Red Cross, American Heart Association, the National Safety Council, and Emergency Medical Planning (Medic First Aid) or an equivalent certification approved by the department. A valid certificate indicating the date of training and expiration date shall be maintained.

Amend subrule 110.25(9), paragraph "b," subparagraphs (3) and (4), as follows:

(3) During the second year of registration and each succeeding year, the provider shall receive a minimum of 10 hours of training for Level I, 12 hours for Levels II and III, and 15 hours for Level IV, chosen from the following categories: child development, guidance and discipline, developmentally appropriate practices, nutrition, health and safety, communication skills, professionalism, business practices, and cross-cultural competence. At least 4 hours of the hours of training shall be received in a sponsored group setting. The remaining hours may be received in self-study using a training package approved by the department.

~~1. Ages and stages.~~

~~2. Developmentally appropriate~~ ~~programming.~~

~~3. Guidance and discipline.~~

~~4. Nutrition.~~

~~5. Business practices.~~

(4) In addition, the provider shall ~~keep current:~~

~~1. Two~~ receive two hours of child abuse and neglect mandatory reporter training every five years.

~~2. CPR training to maintain certification annually.~~

~~3. First-aid training to maintain certification every three years.~~

ITEM 9. Amend rule 441--110.26(237A), numbered paragraph "3," as follows:

3. Gives consistent, dependable care and is capable of handling emergencies. ~~The provider shall maintain a valid first-aid and cardiopulmonary resuscitation (CPR) certificate to be completed within one year of registration.~~

ITEM 10. Amend rule 441--110.27(237A) as follows:

Amend subrule 110.27(1), paragraph "a," subparagraph (3), as follows:

(3) In addition to the number of children authorized in subparagraph (1), not more than two children who attend school may be present for a period of ~~less~~ more than two hours at any one time.

Amend subrule 110.27(2), paragraph "a," subparagraph (3), as follows:

(3) In addition to the number of children listed in subparagraph (1), not more than four children who attend school may be present for a period of ~~less~~ more than two hours at any one time.

Amend subrule 110.27(2), paragraph "c," subparagraph (3), numbered paragraphs "2" and "3," as follows:

2. Have one year of experience working directly with children from birth through the age of 12 and one year of experience at as a nonregistered, registered, or Level I child care home provider.

Amend subrule 110.27(2) by rescinding paragraph "d."

Amend subrule 110.27(3), paragraph "c," subparagraph (2), numbered paragraphs "1," "2," and "3," as follows:

1. Have two years of experience at as a nonregistered, registered, or Level I child care home provider, and two years of experience at as a nonregistered, registered, or Level II child care home provider.

2. Have one year of experience working directly with children from birth through the age of 12 and one year of experience at as a nonregistered, registered, or Level I child care home provider and two years of experience at as a nonregistered, registered, or Level II child care home provider.

3. Have a child development associate ~~degree~~ credential or any two- or four-year degree in a child care related field and one year of experience at as a nonregistered, registered, or Level I child care home provider and two years of experience at as a nonregistered, registered, or Level II child care home provider.

Amend subrule 110.27(3) by rescinding paragraph "d."

Amend subrule 110.27(4), paragraph "c," subparagraph (2), numbered paragraphs "1," "2," and "3," as follows:

1. Have two years of experience at as a nonregistered, registered, or Level I child care home provider and two years of experience at as a nonregistered, registered, or Level II child care home provider and one year of experience at as a nonregistered, registered, or Level III child care home provider.

2. Have one year of experience working directly with children and one year of experience at as a nonregistered, registered, or Level I child care home provider and two years of experience at as a nonregistered, registered, or Level II child care home provider and one year of experience at as a nonregistered, registered, or Level III child care home provider.

Amend subrule 110.27(4) by rescinding paragraph "d."

ITEM 11. Amend rule 441--110.31(237A), introductory paragraph, as follows:

441--110.31(237A) Record checks. The department shall submit record checks for each registrant, staff member, and anyone living in the home who is 14 years of age or older to determine whether the person has any founded child abuse reports or criminal convictions. Form ~~SS-1606-0~~ 470-0643, Request for Child Abuse Information, and Form 595-1396, DHS Criminal History Record Check, Form B, shall be used for this purpose.

ITEM 12. Amend rule 441--110.35(237A), introductory paragraph, as follows:

441--110.35(237A) Transition exception. The exception provisions of this rule are applicable to child care homes in Scott and Delaware counties registering under Iowa Code ~~Supplement~~ section 237A.3A during a transition period beginning April 20, 1998, and ending April 19, 2000. The transition period for other pilot counties selected shall be a period from July 1, 1999, to January 1, 2002. During the transition period, the following provisions shall apply, notwithstanding the previous specific rules:

ARC 9365A

INSURANCE DIVISION[191]

Notice of Intended Action

Pursuant to the authority of Iowa Code section 502.607, the Insurance Division hereby gives Notice of Intended Action to amend Chapter 50, "Regulation of Securities Offerings and Those Who Engage in the Securities Business," Iowa Administrative Code.

The proposed rules impose examination requirements upon those wishing to register as investment advisers or investment adviser representatives within the state of Iowa. A waiver provision is also included herein which applies specifically to these rules.

Any interested person may make written suggestions or comments on these proposed rules prior to Friday, October 15, 1999. These written materials may be mailed to Craig A. Goettsch, Securities Bureau, 340 Maple Street, Des Moines, Iowa 50319-0066, or may be transmitted via facsimile to (515)281-3049. No public hearing is scheduled on these rules.

These rules are intended to implement Iowa Code sections 502.302 and 502.305.

The following rules are proposed.

Amend 191--Chapter 50 by adopting the following new rules:

191--50.109(502) Examination requirements.

50.109(1) A person applying to be registered as an investment adviser or investment adviser representative under the Act shall provide the administrator with proof that the person has obtained a passing score on one of the following examinations:

a. The Uniform Investment Adviser Law Examination (Series 65 examination); or

b. The General Securities Representative Examination (Series 7 examination); and the Uniform Combined State Law Examination (Series 66 examination).

50.109(2) Any individual who is registered as an investment adviser or investment adviser representative in any jurisdiction in the United States on the effective date of these rules shall not be required to satisfy the examination requirements for continued registration, except that the administrator may require additional examinations for any individual found to have violated the uniform securities Act.

An individual who has not been registered in any jurisdiction for a period of two years shall be required to comply with the examination requirements of this rule.

50.109(3) The examination requirement shall not apply to an individual who currently holds one of the following professional designations:

a. Certified Financial Planner (CFP) issued by the Certified Financial Planner Board of Standards, Inc.;

b. Chartered Financial Consultant (ChFC) awarded by The American College, Bryn Mawr, Pennsylvania;

c. Personal Financial Specialist (PFS) administered by the American Institute of Certified Public Accountants;

d. Chartered Financial Analyst (CFA) granted by the Association for Investment Management and Research;

e. Chartered Investment Counselor (CIC) granted by the Investment Counsel Association of America; or

f. Such other professional designation as the administrator may by order recognize.

This rule is intended to implement Iowa Code sections 502.302 and 502.305.

191--50.110(502) Waivers. The administrator may grant a waiver of a rule pertaining to examination requirements for investment advisers or investment adviser representatives.

50.110(1) No waiver shall be granted from a requirement imposed by statute. Any waiver must be consistent with statutory requirements.

50.110(2) A waiver under this subrule may be granted only upon a showing of all the following:

a. Because of special circumstances, applying the rule would impose an undue burden or extreme hardship on the requester;

b. Granting the waiver would not adversely affect the public interest and the protection of investors; and

c. Granting the waiver would provide substantially equal protection of public health and safety as would compliance with the rule.

50.110(3) A request for waiver shall be made at any time within 60 days of the initial application and shall include the following information:

a. The name, address and telephone number of the person requesting the waiver;

b. The specific rule from which a waiver is requested;

c. The nature of the waiver requested;

d. An explanation of all facts relevant to the waiver request, including all material facts necessary for the administrator to evaluate the criteria for granting a waiver as provided by subrule 50.110(2); and

e. A description of any prior communication between the administrator and the requester regarding the proposed waiver.

50.110(4) The administrator shall rule upon all waiver requests and transmit the ruling to the requester. The ruling shall include the reason for granting or denying the request. The administrator's ruling shall constitute final agency action for the purposes of Iowa Code chapter 17A.

50.110(5) The administrator may impose reasonable conditions when granting a waiver to achieve the objectives of the particular rule being waived.

50.110(6) If at any time the administrator finds the facts as stated in the waiver request are not true, that material facts have been withheld, or that the requester has failed to comply with conditions set forth in the waiver, the administrator may cancel the waiver and seek additional sanctions against the issuer and agent as provided by this chapter and Iowa Code chapter 502.

50.110(7) Any request for an appeal from a decision granting, denying, or canceling a waiver shall comply with the procedures provided in Iowa Code chapter 17A. An appeal shall be made within 30 days after the administrator's ruling in response to the waiver requested.

50.110(8) All final rulings in response to waiver requests shall be indexed and available to members of the public at the administrator's office.

This rule is intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202.

ARC 9356A

INSURANCE DIVISION[191]

Notice of Intended Action

Pursuant to the authority of 1999 Iowa Acts, Senate File 276, section 20, the Insurance Division gives Notice of Intended Action to adopt Chapter 76, "External Review," Iowa Administrative Code.

The proposed new chapter provides guidelines for enrollees to appeal a carrier's or 509A plan's adverse decision based upon medical necessity. The rules also instruct carriers on appropriate notice provisions to enrollees of their right to an external appeal. In addition, the rules provide guidance on communication between interested parties. The rules further provide guidelines for an expedited review process.

Any person may make written comments on the proposed rules on or before October 12, 1999. These comments should be directed to Susan E. Voss, Projects Director, Insurance Division, 330 E. Maple Street, Des Moines, Iowa 50319. Comments may also be transmitted by fax to (515) 281-5692 or by E-mail to susan.voss@comm6.state.ia.us.

A public hearing will be held Tuesday, October 12, 1999, at 10 a.m. at the offices of the Insurance Division, 330 E. Maple Street, Des Moines, Iowa 50319. Persons wishing to speak should contact Susan E. Voss no later than October 11, 1999.

These rules are intended to implement 1999 Iowa Acts, Senate File 276.

The following new chapter is proposed.

CHAPTER 76
EXTERNAL REVIEW

191--76.1(78GA,SF276) Purpose. This chapter is intended to implement 1999 Iowa Acts, Senate File 276, to provide a uniform process for enrollees of carriers providing health insurance coverage to appeal an external review of a coverage decision. Carriers defined in 1999 Iowa Acts, Senate File 276, section 8(1), are subject to these rules.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 7.

191--76.2(78GA,SF276) Applicable law. This chapter applies to health care plans or health insurance policies delivered or issued for delivery in the state of Iowa.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 7.

191--76.3(78GA,SF276) Notice of coverage decision and content.

76.3(1) A carrier shall notify an enrollee in writing of the right to have an external review of the coverage decision and shall include a copy of the final adverse decision.

76.3(2) The notice shall contain the following information:

a. The enrollee was covered by the carrier at the time the service or treatment was proposed;

b. The enrollee has been denied coverage based on a determination by the carrier that the proposed service or treatment does not meet the definition of medical necessity as defined in the enrollee's evidence of coverage;

c. The enrollee or the enrollee's treating health care provider acting on behalf of the enrollee has exhausted all internal appeal mechanisms provided under the carrier's contract; and

d. Information on how the enrollee or the enrollee's treating health care provider can request an external review. The information provided shall specify the following:

(1) The enrollee or the enrollee's treating health care provider must send the request for an external review within 60 days of receipt of the coverage decision from the carrier;

(2) The request shall be made to the Division of Insurance, 330 E. Maple Street, Des Moines, Iowa 50319;

(3) A copy of the carrier's coverage decision should accompany the written request for an external review;

(4) A $25 filing fee is required unless the enrollee is requesting that the fee be waived. The check should be made payable to the Insurance Division. If a waiver is requested, the request shall include an explanation of why the enrollee is requesting that the fee be waived.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 10.

191--76.4(78GA,SF276) External review request.

76.4(1) The enrollee shall send a copy of the carrier's written notice with the enrollee's request for an external review to the insurance commissioner within 60 days of the receipt of the coverage decision.

76.4(2) A $25 filing fee with the external review request shall be enclosed. The commissioner may waive the fee for good cause.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 10.

191--76.5(78GA,SF276) Certification of external review.

76.5(1) The commissioner shall certify the enrollee for external review if the criteria in 1999 Iowa Acts, Senate File 276, section 11, are met.

76.5(2) The commissioner shall have two business days from receipt of a request for an external review to certify or deny the request and to notify, in writing, the carrier and the enrollee or the enrollee's treating health care provider acting on behalf of the enrollee. The commissioner shall fax the certification decision to the carrier within the two-day period.

76.5(3) A carrier has three business days to contest the eligibility of the request for external review with the commissioner. The commissioner has two business days to rule on this contested eligibility. The commissioner shall provide a written notice of the determination to the carrier and the enrollee or the enrollee's treating health care provider acting on behalf of the enrollee. The commissioner shall fax the decision to the carrier within the two-day period.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 11.

191--76.6(78GA,SF276) Expedited review.

76.6(1) A carrier shall designate up to two independent review entities for use in expedited reviews which the commissioner may select without prior approval from the carrier.

76.6(2) The commissioner shall select one of the independent review entities identified by the carrier to conduct the external review.

76.6(3) The commissioner shall notify the carrier and the enrollee's treating health care provider as soon as possible of the independent review entity selected to conduct the external review.

76.6(4) The enrollee's treating health care provider shall provide any additional medical information to the independent review entity as soon as the health care provider is notified of the independent review entity selected to conduct the external review.

76.6(5) The enrollee's treating health care provider shall provide written notification of the expedited appeal in the event the initial contact with the commissioner was by telephone.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 14.

191--76.7(78GA,SF276) Decision notification. The independent review entity shall immediately notify the carrier, enrollee, and insurance division of the external appeal decision.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 18.

191--76.8(78GA,SF276) Carrier information. Each carrier shall provide to the commissioner the name or title, telephone and fax numbers and E-mail address of an individual who shall be the carrier's contact person for external review procedures. Any changes in personnel or communication numbers shall be immediately sent to the commissioner.

This rule is intended to implement 1999 Iowa Acts, Senate File 276, section 13.

191--76.9(78GA,SF276) Certification of independentreview entity.

76.9(1) The following minimum standards are required for certification as an independent review entity:

a. The individual must hold a current unrestricted license to practice medicine or a health profession in the United States.

b. A health care professional that is not a physician shall also hold a certification by a recognized American medical specialty board.

c. A health care professional that is not a physician shall also hold a current certification by the professional's respective specialty board.

d. The applicant must attest that reviewers have no history of disciplinary actions or sanctions including, but not limited to, the loss of staff privileges or any participation restriction taken or pending by any hospital or state or federal government regulatory agency.

e. The applicant shall provide a description of the qualifications of the reviewers retained to conduct external reviews of coverage decisions including the reviewers' current and past employment history and practice affiliations.

f. The applicant shall provide a description of the procedures employed to ensure that reviewers conducting external reviews are appropriately licensed, registered or certified; trained in the principles, procedures and standards of the independent review entity; and knowledgeable about the health care service which is the subject of the external review.

g. The applicant shall provide a description of the methods of recruiting and selecting impartial reviewers and matching such reviewers to specific cases.

h. The applicant shall provide the number of reviewers retained by the independent review entity and a description of the areas of expertise available from such reviewers and the types of cases such reviewers are qualified to review.

i. The applicant shall provide a description of the policies and procedures employed to protect confidentiality of individual medical and treatment records in accordance with applicable state and federal law.

j. The applicant shall provide a description of the quality assurance program established by the independent review entity.

k. The applicant shall provide the names of all corporations and organizations owned or controlled by the independent review entity or which own or control the applicant, and the nature and extent of any such ownership or control.

l. The applicant shall provide the names and biographies of all directors, officers, and executives of the independent review entity.

m. The applicant shall provide a description of the fees to be charged by the review entity for external reviews.

n. The applicant shall provide the name of the medical director or director responsible for the supervision and oversight of the independent review procedure.

76.9(2) The independent review entity shall develop written policies and procedures governing all aspects of the external review process including, at a minimum, the following:

a. Procedures to ensure that external appeals are conducted within the times frames specified in 1999 Iowa Acts, Senate File 276, and any required notices be provided in a timely manner.

b. Procedures to ensure the selection of qualified and impartial reviewers. The reviewers shall be qualified to render impartial determinations relating to the health care service which is the subject of the coverage decision under external review.

c. Procedures to ensure the confidentiality of medical treatment records and review materials.

d. Procedures to ensure adherence to the requirements of 1999 Iowa Acts, Senate File 276, by any contractor, subcontractor, subvendor, agent or employee affiliated by or with the certified independent review entity.

76.9(3) The independent review entity shall establish a quality assurance program. The program shall include a written description to be provided to all individuals involved in the program, the organizational arrangements, and the ongoing procedures for the identification, evaluation, resolution and follow-up of potential and actual problems in external reviews performed by the independent review entity and procedures to ensure the maintenance of program standards pursuant to this requirement.

76.9(4) The independent review entity shall establish a toll-free telephone service to receive information relating to external reviews pursuant to 1999 Iowa Acts, Senate File 276. The system shall develop a procedure to ensure the capability of accepting, recording, or providing instruction to incoming telephone calls during other than normal business hours. The independent review entity shall also establish a facsimile and electronic mail service.

76.9(5) An independent review entity shall not qualify to submit an application for certification if it owns or controls, is owned or controlled by, or exercises common control with any of the following:

a. Any national, state, or local illness, health benefit or public advocacy group;

b. Any national, state, or local society or association of hospitals, physicians, or other providers of health care services;

c. Any national, state or local association of health care plans.

76.9(6) No independent review entity, officer, director, employee, or reviewer employed or engaged to conduct external appeal reviews shall have any material professional affiliation or material financial affiliation with any of the following:

a. The health care plan;

b. Any officer, director, or management employee of the health care plan;

c. Any health care provider, physicians medical group, independent practice association, or provider of pharmaceutical products or services or durable medical equipment, proposing to supply the health service;

d. The facility at which the health service would be provided;

e. The developer or manufacturer of the principal health service which is the subject of the appeal; or

f. The insured whose health care service is the subject of the appeal or the insured's designee.

76.9(7) The independent review entity shall provide the commissioner such data, information, and reports as the commissioner determines necessary to evaluate the external appeal process established under 1999 Iowa Acts, Senate File 276.

76.9(8) Applications shall be submitted in duplicate to the Commissioner of Insurance, 330 East Maple Street, Des Moines, Iowa 50319. Applications must be submitted in full to be considered. All applicants will be notified of the certification decision. A list of certified independent review entities shall be maintained at the division of insurance and shall be available through the division's Web site.

This rule is intended to implement 1999 Iowa Acts, Senate File 276.

ARC 9362A

IOWA FINANCE AUTHORITY[265]

Notice of Intended Action

Pursuant to the authority of Iowa Code sections 17A.3(1)"b," 16.5(15) and 16.91(8), the Iowa Finance Authority hereby gives Notice of Intended Action to amend Chapter 9, "Title Guaranty Division," Iowa Administrative Code.

The purpose of new rule 9.20(78GA,SF335) is to provide a procedure for the release of mortgages which have been paid in full, or the security for which has been released from the lien of the mortgage, and which have had no effective release or partial release filed of record by a mortgagee. The objective of the mortgage release certificate is to preserve the integrity of the real estate records of this state so that they reflect the correct status of title to the real property located in Iowa.

The Authority does not intend to grant waivers under the provisions of this rule. The requirements implemented by these rules are established by 1999 Iowa Acts, Senate File 335, and may not be waved by the Authority. The real estate records of the state must be of high integrity and reliability. The granting of waivers would cause a question as to the validity of the certificate of release issued by the Division, thereby causing uncertainty as to the validity and enforceability of mortgages purportedly released by the certificate of release. Additionally, the officer or employee of the Division authorized to issue the certificate of release could be subject to undue pressure to grant a waiver of a requirement imposed by law or rule that could imperil the validity of the certificate.

The Authority will post this proposed rule to its Web site. The address is http://www.ifahome.com/.

The Authority will hold a public hearing to receive comments on this rule on October 26, 1999, at 1 p.m. in the Authority's conference room at 100 E. Grand Avenue, Des Moines, Iowa.

Consideration will be given to all written data, views, and arguments thereto received by the Iowa Finance Authority, Title Guaranty Division, Attention: Matt White, 200 E. Grand Avenue, Suite 350, Des Moines, Iowa 50309, on or before October 12, 1999.

This rule is intended to implement Iowa Code section 16.5(8) and 1999 Iowa Acts, Senate File 335.

The following new rule is proposed.

265--9.20(78GA,SF335) Mortgage release certificate.

9.20(1) Definitions. As used in this rule, unless the context otherwise requires:

"Authority" means the Iowa finance authority described in Iowa Code chapter 16.

"Certificate" means the certificate of release or partial release of mortgage issued by the division.

"Claim for damages" means a claim for actual money damages against the division caused by the negligent, wrongful or erroneous filing of a certificate while the staff of the division are acting within the scope of their office or employment, under circumstances where the state, if a private person, would be liable to the claimant for such damage.

"Division" means the title guaranty division in the Iowa finance authority.

"Effective release or satisfaction" means a release or satisfaction of mortgage pursuant to Iowa Code chapter 655.

"Mortgage" means a mortgage or mortgage lien on an interest in real property in this state given to secure a loan in an original principal amount of $500,000 or less. Any future advance supported by the mortgage that exceeds the original principal amount of $500,000 shall not be eligible for release under this rule.

"Mortgagee" means the grantee of a mortgage. If a mortgage has been assigned of record, the mortgagee is the last person to whom the mortgage is assigned of record.

"Mortgage servicer" means the mortgagee or a person other than the mortgagee to whom a mortgagor or the mortgagor's successor in interest is instructed by the mortgagee to send payments on a loan secured by the mortgage. A person transmitting a payoff statement for a mortgage is the mortgage servicer for purposes of such mortgage.

"Mortgagor" means the grantor of a mortgage.

"Payoff statement" means a written statement furnished by the mortgage servicer which sets forth all of the following:

1. The unpaid balance of the loan secured by a mortgage, including principal, interest, and any other charges properly due under or secured by the mortgage, or the amount required to be paid in order to release or partially release the mortgage.

2. Interest on a per-day basis for an amount set forth pursuant to "1" above.

3. The address where payment is to be sent or other specific instructions for making a payment.

4. If, after payment of the unpaid balance of the loan secured by the mortgage, the mortgage continues to secure any unpaid obligation due the mortgagee or any unfunded commitment by the mortgagor to the mortgagee, the legal description of the property that will continue to be subject to the mortgage and the legal description of the property that will be released from the mortgage.

"Person" shall have the same meaning as in Iowa Code chapter 4.

"Prior mortgage" means a mortgage for which an effective release or satisfaction has not been filed of record which was either paid in full by someone other than the real estate lender or closer or was paid by the real estate lender or closer under a previous transaction.

"Real estate lender or closer" means a person licensed to regularly lend moneys in Iowa to be secured by a mortgage on real property in this state, a licensed real estate broker, or a licensed attorney.

9.20(2) Request for certificate.

a. A real estate lender or closer may request a certificate from the division by submitting:

(1) A fully and accurately completed request form.

(2) All necessary documents and information to support the certifications made on the request form.

(3) Payment of the filing fee by check or money order made payable to the filing officer of the county in which the certificate is to be recorded in the amount of the filing fee imposed by the filing officer of the county in which the certificate is to be recorded. If duplicate certificates are to be recorded in more than one county, additional checks or money orders payable to the filing officer of such counties shall be submitted.

b. A certificate which is not a full release but is executed and recorded to release part of the security described in a mortgage shall be issued only when the real estate lender or closer has paid the mortgage servicer for the partial release. A certificate shall not be issued for a partial release if the real estate lender or closer is requesting a release pursuant to 1999 Iowa Acts, Senate File 335, section 1(7).

c. In the event a person requesting a certificate fails to complete any of the steps or include any of the required information described in this rule, the division may reject the request for a certificate and require the person to refile or amend the request so that it conforms to the provisions of the law or this rule.

9.20(3) Forms.

a. Requests for mortgage release certificates shall be made on forms developed and provided by the division. The forms may be obtained from the division or fromthe authority's Internet Web site located at http://www.ifahome.com. The real estate lender or closer must use the forms developed and provided by the division; however, it is permissible to use reproductions of the forms, including reproductions placed in a word processing program. A reproduced form must substantially conform to the forms provided by the division. A nonconforming form may be rejected by the division.

b. The forms to request a certificate of release shall identify the mortgage to be released and shall contain sufficient information to identify that the requestor is a real estate lender or closer; establish that the time requirements have elapsed; establish the party or parties to receive notice of the request; indicate that the debt secured by the mortgage to be released has been paid and the mortgage was less than $500,000; and, in the case of requests for partial releases, include the legal descriptions of the property that will continue to be subject to the mortgage and the property that will be released from the mortgage.

c. The forms giving notice of the request shall be directed to the last-known mortgage servicer and shall contain sufficient information to identify the mortgage to be released; inform the mortgage servicer what is required to prevent the filing of a certificate of release; establish a time limit for the mortgage servicer to respond; and, in the case of requests for partial releases, include the legal descriptions of the property that will continue to be subject to the mortgage and the property that will be released from the mortgage.

d. The certificate of release form shall contain sufficient information to identify the mortgage released; recite the authority for the certificate; recite that the substantive and procedural requirements as to the amount of debt, payment, notice, or other requirements of the division have been met; and, in the case of partial releases, include the legal descriptions of the property that will continue to be subject to the mortgage and the property that will be released from the mortgage.

e. The notice by publication form shall contain sufficient information to identify the mortgage to be released; inform the mortgage servicer what is required to prevent the filing of a certificate of release; establish a time limit for the mortgage servicer to respond; and, in the case of requests for partial releases, include the legal descriptions of the property that will continue to be subject to the mortgage and the property that will be released from the mortgage.

f. All forms may require real estate lenders or closers to provide other information as may be required by law or this rule.

9.20(4) Certification to the division--mortgages paid by real estate lender or closer. To obtain a certificate for a mortgage which the mortgage lender or closer has paid and an effective release or partial release has not been filed of record, the mortgage lender or closer shall certify to the division in writing on the form provided:

a. That more than 30 days have elapsed since the date the payment was sent.

b. That, as of the date of the request for a certificate, no effective mortgage release or partial release appears of record.

c. That the payoff statement satisfies one of the following:

(1) The statement does not indicate that the mortgage continues to secure an unpaid obligation due the mortgagee or an unfunded commitment by the mortgagor to the mortgagee; or

(2) The statement contains the legal description of the property to be released from the mortgage and the legal description of the property that will continue to be subject to the mortgage.

d. That payment was made in accordance with the payoff statement, including a statement as to the date the payment was received by the mortgagee or mortgage servicer, as evidenced by one or more of the following in the records of the real estate lender or closer or its agent:

(1) A bank check, certified check, escrow account check, real estate broker trust account check, or attorney trust account check that was negotiated by the mortgagee or mortgage servicer.

(2) Other documentary evidence satisfactory to the division of payment to the mortgagee or mortgage servicer.

e. That the original principal amount of the mortgage was $500,000 or less.

f. The information provided to identify the mortgage to be released includes the name of the mortgagor, the name of the original mortgagee, the mortgage servicer and last- known mailing address, the date of the mortgage, the date of recording, the county of recording, volume and page, or other applicable recording information in the real property rec-ords where the mortgage is to be released, and the same information for the last recorded assignment of record.

g. That any documents or other information attached to or included in the form and submitted in support of the request are original documents or are true and accurate reproductions and that the subject matter contained in the documents is true and correct.

9.20(5) Certification to the division--prior mortgages. To obtain a release of a mortgage that has been paid in full by someone other than the real estate lender or closer, or was paid by the real estate lender or closer under a previous transaction, and an effective release has not been filed of record, the mortgage lender or closer shall certify to the division in writing on the form provided:

a. That the mortgage was paid in full in accordance with one of the following:

(1) By someone other than the real estate lender or closer requesting the certificate.

(2) By the real estate lender or closer under a previous transaction.

b. That, as of the date of the request for a certificate, no effective mortgage release appears of record.

c. That the original principal amount of the mortgage was $500,000 or less.

d. That the information provided to identify the mortgage to be released includes the name of the mortgagor, the name of the original mortgagee, the mortgage servicer and last-known mailing address, the date of the mortgage, the date of recording, the county of recording, volume and page, or other applicable recording information in the real property records where the mortgage is to be released, and the same information for the last recorded assignment of record.

e. That any documents or other information attached to or included in the form and submitted in support of the request are original documents or are true and accurate reproductions and that the subject matter contained in the documents is true and correct.

9.20(6) Division determination to give notice--reliance on information submitted.

a. Upon receipt of a request for issuance of a certificate, the division shall determine that an effective release has not been executed and recorded within 30 days after the date payment was sent or otherwise made in accordance with a payoff statement based upon the information submitted by the person seeking the certificate.

b. The division may use discretion in determining whether an effective release has been executed and recorded and shall rely on the information contained in the request in determining whether further inquiry may be required before giving notice of intent to issue a certificate.

c. The division shall not be required to make a physical search of the real property records in the county or counties where the certificate is to be recorded nor will the division be required to obtain any formal report such as a lien search, abstract opinion, or attorney's opinion. The division may, but is not required to, verify the status of an effective release by contacting the officer responsible for maintaining the real property records of the county in which the certificate is to be recorded; however, if such verification is determined to be necessary, the division may rely on information from the filing officer obtained by telephone, facsimile, electronic mail, or other such means.

d. The division shall not be required to verify or research the accuracy or status of a title to any legal descriptions which are requested to be partially released. The division shall rely on the descriptions certified to the division in the request for a certificate of partial release.

9.20(7) Contested case proceeding. In the event a person who is seeking a certificate is aggrieved by the decision of the division not to issue a certificate and wishes to challenge that decision, the person must request a contested case proceeding pursuant to the rules described in 265--Chapter 7. The request for a contested case proceeding must be filed with the division within ten days from the date of the division's decision not to issue a certificate. An aggrieved person must exhaust all administrative remedies before that person may file a proceeding in any court.

9.20(8) Notice of intent to issue certificate and recording.

a. Upon determination that an effective release or partial release has not been executed and recorded within 30 days after the date payment was sent or otherwise made in accordance with a payoff statement, the division shall send written notice of intent to execute a certificate by certified mail to the last-known address of the last mortgage servicer of record.

b. The notice shall be given by certified mail and the 30-day period shall begin on the date the notice is placed in the custody of the United States Postal Service for delivery to the mortgage servicer.

c. The notice shall state that a certificate shall be recorded by the division after 30 days from the date the notice was mailed unless the mortgage servicer notifies the division of any reason the certificate of release should not be executed and recorded.

d. In the event the notice sent by certified mail to the last-known mortgage servicer of record is returned to the division for the reason that the person is no longer at the address or the certificate of receipt is not returned within 30 days of mailing, the division shall attempt to serve the person pursuant to Iowa Rule of Civil Procedure 56.1.

e. In the event the division is unable to serve the person, the division shall prepare a notice for publication and send it to the real estate lender or closer for publication in a newspaper of general circulation in the county in which the mortgage to be released is recorded. Notice by publication shall be once each week for three consecutive weeks and shall provide for a 20-day period following the last publication for the mortgage servicer to respond to the division. A copy of the notice together with a certificate of publication shall be submitted to the division after the last publication date. Upon receipt of the certified notice and expiration of the time to respond, the division shall file the certificate of release provided that the mortgage servicer has not notified the division of any satisfactory reason the certificate of release should not be executed and recorded. The notice shall also be posted to the authority's Web page.

f. If, prior to executing and recording the certificate of release, the division receives written notification setting forth reasons satisfactory to the division why the certificate of release should not be executed and recorded by the division, the division shall not execute and record the certificate of release. The division may use its discretion in determining whether a satisfactory reason to not record the certificate has been given depending upon the facts. A satisfactory reason to not record the certificate includes, but is not limited to:

(1) Evidence of an unpaid balance under the terms of any loan secured by the mortgage.

(2) Evidence that a release or satisfaction of mortgage pursuant to Iowa Code chapter 655 has been placed of record.

(3) Failure of a person seeking a certificate to submit any information requested by the division or required by the law or this rule.

g. In the event the division determines that a certificate should not be recorded, the division shall return the check or money order, which was made payable to the county filing officer, to the real estate lender or closer that requested the certificate.

h. If the division does not receive written notification setting forth a reason satisfactory to the division why the certificate of release should not be executed and recorded, the division shall proceed to execute and record the certificate. The certificate shall be delivered, by regular mail, along with proper recording fees, to the filing officer in the county where the subject property is located.

i. If duplicate certificates were requested, the division will also deliver the duplicate certificates to the filing officer of those counties.

j. If duplicate certificates were not requested, the real estate lender or closer may record a certified copy of the certificate in another county with the same effect as the original.

9.20(9) Certificate--mortgages paid by real estate lender or closer. Certificates issued on mortgages paid by the mortgage lender or closer shall contain substantially the following information:

a. That the division sent the 30-day notice required by 1999 Iowa Acts, Senate File 335, section 1(2c), and that more than 30 days have elapsed since the date the notice was sent.

b. That the division did not receive written notification setting forth a reason satisfactory to the division why the certificate of release should not be executed and recorded.

c. A statement indicating one of the following:

(1) That the mortgage servicer provided a payoff statement that was used to make payment, and it does not indicate that the mortgage continues to secure an unpaid obligation due the mortgagee or an unfunded commitment by the mortgagor to the mortgagee.

(2) That the mortgage release certificate is a partial release of the mortgage and contains the legal description of the property that will be released from the mortgage and the legal description of the property that will continue to be subject to the mortgage.

d. That payment was made in accordance with the payoff statement including the date the payment was received by the mortgagee or mortgage servicer as evidenced by a bank check, certified check, escrow account check, real estate broker trust account check, or attorney trust account check that was negotiated by the mortgagee or mortgage servicer or other documentary evidence of payment to the mortgagee or mortgage servicer.

e. That the original principal amount of the mortgage was $500,000 or less.

f. Information to identify the mortgage to be released includes the name of the mortgagor, the name of the original mortgagee, the mortgage servicer, the date of the mortgage, the date of recording, county of recording, volume and page, or other applicable recording information in the real property records where the mortgage is to be released, and the same information for the last recorded assignment of record.

g. That the person executing the certificate is a duly authorized officer or employee of the division.

9.20(10) Certificate--prior mortgages. Certificates issued on mortgages that have been paid in full by someone other than the real estate lender or closer or were paid by the real estate lender or closer under a previous transaction shall contain substantially the following information:

a. That the division sent the 30-day notice required by 1999 Iowa Acts, Senate File 335, section 1(2c), and that more than 30 days have elapsed since the date the notice was sent.

b. That the division did not receive written notification setting forth a reason satisfactory to the division why the certificate of release should not be executed and recorded.

c. A statement indicating the mortgage was paid in full in accordance with one of the following:

(1) By someone other than the real estate lender or closer requesting the certificate.

(2) By the real estate lender or closer under a previous transaction.

d. That the original principal amount of the mortgage was $500,000 or less.

e. Information to identify the mortgage to be released includes the name of the mortgagor, the name of the original mortgagee, the mortgage servicer, the date of the mortgage, the date of recording, county of recording, volume and page, or other applicable recording information in the real property records where the mortgage is to be released, and the same information for the last recorded assignment of record.

f. That the person executing the certificate is a duly authorized officer or employee of the division.

9.20(11) Authority to sign certificate. The board of directors of the division may, by resolution, authorize such personnel within the division as the board should determine to execute and record the certificates pursuant to 1999 Iowa Acts, Senate File 335, and this rule.

9.20(12) Records--return to the division. The certificate of release shall contain instructions to the filing officer(s) to return the document to the division, once file-stamped and entered in the real estate records of the county.

9.20(13) Photocopy. The division shall transmit a copy of the recorded certificate to the real estate lender or closer that requested the certificate.

9.20(14) Effect of wrongful or erroneous recording of a certificate of release. A wrongful or erroneous certificate of release by the division shall not relieve the mortgagor, or the mortgagor's successors or assigns on the debt, from personal liability on the loan or on other obligations secured by the mortgage.

9.20(15) Liability of the division. In addition to any other remedy provided by law, if the division or the authority wrongfully or erroneously records a certificate of release under this section, the division is liable to the mortgagee and mortgage servicer for actual damages sustained due to the recording of the certificate of release. A claim for damages is a tort claim as described in Iowa Code chapter 669 since the claim is for money damages caused by the wrongful or erroneous actions of the staff of the division. The procedures of Iowa Code chapter 669 shall apply to any claim for damages arising out of 1999 Iowa Acts, Senate File 335.

9.20(16) Subrogation. Upon payment of a claim relating to the recording of a certificate, the division is subrogated to the rights of the claimant against all persons relating to the claim including, but not limited to, the real estate lender or closer that requested the certificate.

9.20(17) Record keeping. The original certificate of release document shall remain in the records of the division or the authority for the minimum period of one year after execution. After this time, records may be stored by electronic or other means. Requests and other documents generated or received under this system shall be indexed in such a manner to allow their retrieval at a future date.

This rule is intended to implement 1999 Iowa Acts, Senate File 335.

ARC 9350A

LIBRARIES AND INFORMATION SERVICES DIVISION[286]

Notice of Intended Action

Pursuant to the authority of Iowa Code section 256.52, the Commission of Libraries hereby gives Notice of Intended Action to adopt Chapter 8, "Iowa Regional Library System," Iowa Administrative Code.

This chapter describes the organization and operation of the Iowa Regional Library System and establishes Regional Library service standards.

Any interested person may make written comments on the proposed rules on or before October 12, 1999. Such written materials should be directed to Sharman B. Smith, State Librarian, State Library of Iowa, East 12th and Grand Avenue, Des Moines, Iowa 50319.

A public hearing will be held on October 12, 1999, at10 a.m. in the Conference Room, State Library, East 12th and Grand Avenue, Des Moines, Iowa, at which time persons may present their views orally. 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 rules.

These rules are intended to implement Iowa Code section 256.51(1)"k."

The following new chapter is proposed.

CHAPTER 8
IOWA REGIONAL LIBRARY SYSTEM

286--8.1(256) Purpose. This chapter describes the organization and operation of the Iowa regional library system (hereinafter referred to as the regional system or system) consisting of seven regional libraries (hereinafter referred to as the regions or the regional libraries) and establishes regional library service standards.

286--8.2(256) Definitions. The definitions used in Iowa Code chapters 17A and 256 and in other chapters of the division's administrative rules apply for terms used throughout this chapter. In addition, the following definitions apply:

"Consultation" means the process of advising librarians, trustees, local government officials, and others on locallibrary management and operations.

"Continuing education" means a lifelong learning proc-ess which builds on and modifies previously acquired knowledge, skills, and attitudes of the individual.

"Information services" means providing local library patrons with access to professional reference librarians and to larger reference collections in order to answer local patrons' information questions.

"Interlibrary loan" means providing local library patrons with access to materials that are not available in the local collection.

"OCLC" means the not-for-profit organization that cumulates electronic card catalog records from member libraries around the world and makes those records available to all members for the purpose of cataloging, interlibrary loan, and acquisitions.

286--8.3(256) Organization. The regional library system consists of seven regional libraries each located in and serving a different geographic area of the state. Business hours are 8 a.m. to 4:30 p.m., Monday through Friday, excepting legal holidays. The seven regional libraries are:

1. Central Iowa Regional Library System, 8345 University Blvd., Suite E-1, Clive, Iowa 50325, telephone (515)223-7709 (serves libraries in Polk, Marion, Greene, Dallas, Madison, Warren, Boone, Story, Marshall, and Jasper counties);

2. East Central Regional Library System, 222 Third St. SE, Suite 402, Cedar Rapids, Iowa 52401, telephone (319)365-0521 (serves libraries in Linn, Jones, Iowa, Johnson, Cedar, Tama, Benton, Poweshiek, Jackson, and Clinton counties);

3. North Central Regional Library System, 22 North Georgia, Suite 208, Mason City, Iowa 50401, telephone (515)423-6917 (serves libraries in Cerro Gordo, Franklin, Hancock, Humboldt, Wright, Webster, Kossuth, Winnebago, Hamilton, Hardin, Worth, Mitchell, and Floyd counties);

4. Northeastern Iowa Regional Library System, 415 Commercial St., Waterloo, Iowa 50701, telephone (319)233-1200 (serves libraries in Black Hawk, Delaware, Dubuque, Grundy, Butler, Bremer, Howard, Winneshiek, Allamakee, Chickasaw, Buchanan, Fayette, and Clayton counties);

5. Northwest Regional Library System, 529 Pierce St., P.O. Box 1319, Sioux City, Iowa 51102, telephone (712)255-2939 (serves libraries in Woodbury, Lyon, Sioux, Osceola, Dickinson, Emmet, Clay, Palo Alto, O'Brien, Plymouth, Cherokee, Buena Vista, Pocahontas, Ida, Sac, Calhoun, Monona, Crawford, and Carroll counties);

6. Southeastern Library Services, 4209½ West Locust, Davenport, Iowa 52804, telephone (319)386-7848 (serves libraries in Scott, Appanoose, Davis, Wapello, Jefferson, Van Buren, Lee, Monroe, Mahaska, Keokuk, Henry, Des Moines, Muscatine, Louisa, and Washington counties);

7. Southwest Iowa Regional Library System, 310 W. Kanesville, M-4, Council Bluffs, Iowa 51503, telephone (712)328-9218 (serves libraries in Pottawattamie, Harrison, Shelby, Audubon, Guthrie, Cass, Adair, Mills, Fremont, Page, Montgomery, Adams, Union, Taylor, Clarke, Lucas, Ringgold, Decatur, and Wayne counties).

286--8.4(256) Governance.

8.4(1) Regional boards of library trustees. The system consists of seven regional boards of library trustees whose election and representation are prescribed in Iowa Code sections 256.61 and 256.62. Each board of library trustees sets its own meeting schedule and operating procedures.

8.4(2) Minutes. Minutes of meetings of regional boards of library trustees are available for inspection at the administrator's office of each respective regional library during regular business hours.

8.4(3) Iowa regional library system trustees council. Membership of the council is comprised of all the boards of library trustees of the seven regional libraries. The council's purpose is to further the programs of the regional library system and to serve as a clearinghouse, coordinating cooperative actions and programs initiated by the individual regions or by the council itself.

8.4(4) Iowa regional library system trustees executive board. Comprised of two trustees from each of the regional boards of library trustees of the seven regional libraries, the 14-member executive board is responsible for approving the system's budget request, long-range plan, and annual joint plan of service, and pursuing opportunities to enhance system services.

8.4(5) Federated system. The Iowa regional library system is a federated system, meaning that all public libraries within each region's jurisdiction are independent libraries with their own administrative boards of trustees.

286--8.5(256) Services.

8.5(1) Advisory. Regional libraries act in a consultative and advisory capacity, providing support services and encouraging local library development and funding.

8.5(2) Consultation services. Regional libraries:

a. Provide information, technical advice, and professional opinion on all aspects of library management for local library boards, staff, and governmental officials. Initial response to requests from local libraries are answered as soon as possible, within an average of two days. Responses are delivered via telephone, fax, E-mail, or by an on-site visit to the local library, depending upon the need and the complexity of the question.

b. Provide training and development opportunities for Iowa's public library trustees on the nature of public library law and governance. These opportunities may take the form of workshops or on-site presentations at local board meetings.

c. Visit new library directors to discuss the responsibilities of the director's position and the effective provision of library service, as well as to acquaint them with services available from the regional library system and from the state library.

d. Provide information and technical advice on the uses of technology in public libraries, including implementing automation systems, converting data to electronic form, acquiring and using the Internet, purchasing new computer hardware and software and using electronic information resources including SILO and online databases.

e. Answer questions regarding statewide programs such as Enrich Iowa, Open Access, Access Plus, SILO, librarian certification, library accreditation, and annual reports, thus enabling library boards and staff to better understand these programs and to participate more effectively.

f. Communicate with libraries on a regular basis via newsletters and electronic media.

8.5(3) Continuing education. Regional libraries:

a. Conduct annual continuing education needs assessments of libraries within each respective region in order to address continuing education needs and to coordinate statewide delivery of continuing education activities for local library personnel.

b. Sponsor continuing education workshops on all aspects of public library governance and management for local library boards and staff.

c. Sponsor training in the use of the Internet and other information technologies for local library boards and staff.

8.5(4) Information services. Regional libraries:

a. Provide backup reference service for local libraries, answering questions from library customers that local library staff are unable to answer with their own resources. Eighty percent of these questions are answered within one week of receipt; all questions are answered or a progress report is supplied to the local library within two weeks of receipt.

b. Train local library staff on reference service including conducting effective reference interviews with customers, evaluating/building a reference collection, using theInternet and other electronic information resources such as SILO to supplement local collections. At least one continuing education workshop on providing reference service is offered each fiscal year.

8.5(5) Interlibrary loan services. Regional libraries:

a. Train local library staff in the effective use of the SILO ILL system. Regional staff visit libraries and offer on-site training within one month of the local library's acquiring Internet access.

b. Answer SILO-related questions from library boards and staff within two working days.

c. Provide access (within two working days) to the OCLC interlibrary loan subsystem in order to facilitate access to materials owned by libraries outside Iowa.

d. Process interlibrary loan requests for those libraries without access to SILO. Regional library staff process all interlibrary loan requests within two working days of receipt.

286--8.6(256) State library of Iowa. The regional library system and the state library work cooperatively to improve library service within the state of Iowa. These agencies are partners in advancing local library service and library development across the state. Chief partnership efforts include, but are not limited to:

1. An annual joint plan of service;

2. Joint sponsorship of continuing education programs for local library boards and staff;

3. Cooperative training of local library boards and staff on state library-administered programs;

4. Effective use of technology; and

5. Planning, in partnership with Iowa's library community, for library service delivery in the future.

286--8.7(256) Planning.

8.7(1) Annual joint plan of service. The joint plan is developed with the state library. The plan includes a description of the system's programs and services. The annual joint plan is submitted to each regional library board of trustees for approval. Upon approval, the plan of service is submitted to the director of the department.

8.7(2) Long-range plan for the regional library system. The long-range plan includes how the system intends to provide programs and services to Iowa's public libraries for the next three to five years. The long-range plan is submitted to each regional library board of trustees for approval. Upon approval, the document is submitted to the director of the department.

These rules are intended to implement Iowa Code section 256.51(1)"k."

ARC 9351A

MEDICAL EXAMINERS BOARD[653]

Notice of Intended Action

Pursuant to the authority of Iowa Code sections 147.76 and 272C.3, the Board of Medical Examiners gives Notice of Intended Action to amend Chapter 10, "Medical Examiners," Chapter 11, "Licensure Requirements," and Chapter 12, "Mandatory Reporting and Grounds for Discipline," Iowa Administrative Code.

Item 1 allows the Board greater discretion in setting meetings and eliminates reference to examination administration. Examination information is available in 653--Chapter 11. The Board no longer administers the examination but contracts for the examinations and their administration. The examinations are computer-based and are offered at several testing centers in Iowa over a period of time by individual appointment. The amendment proposed in Item 1 is intended to implement Iowa Code section 147.76 and chapter 17A.

Item 2 sets forth the mechanism by which the Board defines an equivalent to recording licenses by hand in a book and cross-referencing them with a licensee's license certificate. The Board will maintain a computer record that holds the same information as the book's handwritten record. This information kept on M.D., D.O. and acupuncturist licensees will identify each licensee in the Board's computer records in lieu of a handwritten record book and cross-referenced licenses. The handwritten record book and cross-referenced licenses will cease to be updated when this rule goes into effect. The amendment proposed in Item 2 is intended to implement Iowa Code sections 147.5 and 147.76.

Item 3 avoids a current conflict in the rules that affects only those who have been issued a permanent license for the first time for two months or less. The Board now issues such a license to get a physician into the birth month renewal cycle without issuing a license for longer than two years. As a result, these individuals do not receive 60-day notice that it is time to renew as provided in 653--subrule 11.30(1). If the original license period is extended to two years and two months for this group of physicians, the problem will be remedied. The amendment makes this change. The amendment proposed in Item 3 is intended to implement Iowa Code section 272C.3.

Item 4 clarifies previous Board policy that has been established in disciplinary action against physicians. The Board has found a number of physicians who have used bad judgment in self-prescribing and prescribing controlled substances to a family member. The Board believes that a family member who is sick enough to warrant controlled substances should have a physician who is responsible for the individual's overall care. If physicians prescribe controlled substances to family members for an acute condition or on an emergency basis, the Board believes that the physician must treat the individual as any other patient; therefore, a physical examination, medical record, and proper documentation are required. The rule delineates a broad definition of immediate family. The amendment proposed in Item 4 is intended to implement Iowa Code sections 147.55, 148.6, and 272C.10.

Interested persons may make written suggestions or comments on these proposed amendments on or before October 12, 1999. Such written comments should be addressed to the Executive Director, Board of Medical Examiners, Executive Hills West, 1209 East Court Avenue, Des Moines, Iowa 50319; telephone (515)242-6039 or fax (515)242-5908.

The following amendments are proposed.

ITEM 1. Amend rule 653--10.6(17A) as follows:

653--10.6(17A) Meetings and examinations. The board shall meet approximately every six weeks and may meet at other times as needed. The board administers physician licensure examinations. Information concerning the dates and location of board meetings or examinations administered by the board may be obtained from the board's office at least six times per year. Dates and location of board meetings may be obtained from the board's office.

Except as otherwise provided by statute, all board meetings shall be open and the public shall be permitted to attend the meetings.

ITEM 2. Amend 653--Chapter 11 by adopting the following new rule:

653--11.22(147) Licenses. When the board issues a license to practice, it shall record the licensee's name, license number and other identifying information in the board's computerrecords, in keeping with the intent of Iowa Code section 147.5. These computer files shall be backed up weekly with off-site storage of the backup files. Computer record keeping will be done in lieu of prior technology, a handwritten record book and cross-referenced licenses.

ITEM 3. Amend subrule 11.30(2) as follows:

11.30(2) A An issued permanent license ~~issued during a calendar year~~ shall be valid for a period not to exceed two years and two months as determined by the board in accordance with the physician's birth month and year ~~of birth~~.

ITEM 4. Amend subrule 12.4(19) by adopting the following new paragraphs "a" and "b":

a. Self-prescribing or self-dispensing controlled substances.

b. Prescribing or dispensing controlled substances to members of the licensee's immediate family for an extended period of time.

(1) Prescribing or dispensing controlled substances to members of the licensee's immediate family is allowable for an acute condition or on an emergency basis when the physician conducts an examination, establishes a medical record, and maintains proper documentation.

(2) Immediate family includes spouse or life-partner, natural or adopted children, grandparent, parent, sibling, or grandchild of the physician; and natural or adopted children, grandparent, parent, sibling, or grandchild of the physician's spouse or life-partner.

ARC 9364A

PERSONNEL DEPARTMENT[581]

Notice of Intended Action

Pursuant to the authority of Iowa Code section 19A.9, the Department of Personnel gives Notice of Intended Action to amend Chapter 15, "Benefits," Iowa Administrative Code.

The amendment to Chapter 15 proposes a new rule designed to implement legislation passed by the Seventy-eighth General Assembly in 1999 Iowa Acts, House File 781, section 18. This legislation created a State Employee Health Flexible Spending Account Trust Fund. This amendment is intended to establish a rule for the provision of a health care spending account for state employees.

Consideration will be given to all written comments or suggestions on the proposed amendment on or before October 14, 1999. Such written materials should be addressed to Gregg A. Schochenmaier, General Counsel, Department of Personnel, Grimes State Office Building, Des Moines, Iowa 50319; E-mail gregg.schochenmaier@idop.state.ia.us; fax (515)242-6450.

Also, there will be a public hearing on October 14, 1999, at 1 p.m. in the North Conference Room, First Floor, Grimes State Office Building, Des Moines, Iowa, at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the rule.

Any persons who intend to attend a public hearing and have special requirements such as hearing or mobility impairments should contact Gregg Schochenmaier at (515) 281-5290 and advise of specific needs.

This amendment does not provide for waivers in specified situations because the Health Flexible Spending Account benefit must comply with the federal Internal Revenue Code which does not allow for any waivers. Waivers granted in violation of the Internal Revenue Code would jeopardize the tax qualified nature of the benefit plan.

This amendment is intended to implement Iowa Code sections 19A.1(2)"c," 19A.9, and 1999 Iowa Acts, House File 781, section 18.

The following rule is proposed.

Amend 581--Chapter 15 by adopting the following new rule:

581--15.13(19A) Health flexible spending account. The director administers the medical spending account program for employees of the state of Iowa. The plan is permitted under IRC § 125. Administration of the plan shall comply with all applicable federal regulations and the plan document. To the extent that the provisions of the plan document or administrative rule conflict with IRC § 125, the provisions of IRC§ 125 shall govern. For purposes of this rule, the plan year is a calendar year.

15.13(1) Employee eligibility. All nontemporary employees who work at least 1040 hours per calendar year are eligible to participate in the medical spending program. Temporary employees are not eligible to participate in this program. Employees subject to a collective bargaining agreement shall have their eligibility determined by the collective bargaining agreement.

15.13(2) Enrollment. An open enrollment period, as designated by the director, shall be held for employees who wish to participate in the plan. New employees may enroll within 30 calendar days following their date of hire. Employees also may enroll or change their existing medical spending salary reduction amounts during the plan year, provided they have a qualifying change in status as defined in the plan document, and as permitted under IRC § 125. To continue participation, employees shall reenroll each year during the open enrollment period.

15.13(3) Modification or termination of participation in the plan. An employee may modify or terminate participation in the plan, provided the employee has a qualifying change in status as defined in the plan document, and as permitted under IRC § 125. Employees who have terminated state employment and are later rehired within the same plan year cannot reenroll in the medical spending program until the subsequent plan year.

15.13(4) Continuation of coverage. The medical spending account shall provide the opportunity to continue coverage as required by applicable state and federal laws.

15.13(5) Eligible health care expenses. The types of expenses eligible for reimbursement shall be consistent with medical expenses as defined under IRC § 213.

15.13(6) Acceptable proof of eligible expense. Only those expenses for which appropriate documentation is submitted shall be eligible for reimbursement. Such documentation shall include the date upon which the expense was incurred; sufficient evidence that the expense is an eligible health care expense; evidence that the expense has been incurred and will not be reimbursed under an otherwise qualified health plan authorized by IRC § 105 and 106; and the amount of such expense.

15.13(7) Appeal process. In the event that a participant disagrees with a determination as to reimbursement from the health flexible spending account program, a formal appeals mechanism is hereby provided. The participant may submit a formal appeal in writing to the director (or designee). Such appeal must be accompanied by a previous written request for favorable consideration to the designated administrator of the program, along with evidence as to an unfavorable determination in response to this request. Upon receipt of a qualified appeal, the director (or designee) shall provide a written determination within 30 days of receipt. Such determination shall be final and binding. This appeal process is not a contested case proceeding as defined by Iowa Code chapter 17A.

15.13(8) Third-party administrator. The director may contract with a third-party administrator to perform such actions as are reasonably necessary to administer the health flexible spending account program.

ARC 9359A

REVENUE AND FINANCE DEPARTMENT[701]

Notice of Intended Action

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 48, "Composite Returns," Chapter 52, "Filing Returns, Payment of Tax and Penalty and Interest," Chapter 53, "Determination of Net Income," and Chapter 54, "Allocation and Apportionment," Iowa Administrative Code.

Item 1 amends rule 701--48.1(422) to implement 1999 Iowa Acts, Senate File 136, which amends Iowa Code section 422.13 to allow partnerships, limited liability companies, S corporations, or trusts to elect to file a composite return reporting the Iowa source income of its nonresident partners, members, shareholders, or beneficiaries.

Item 2 amends rule 701--52.1(422) to implement 1999 Iowa Acts, Senate File 136, which amends Iowa Code section 422.33 to impose the Iowa corporation income tax on every corporation doing business in Iowa, or deriving income from sources in Iowa, rather than all corporations incorporated in Iowa and all foreign corporations doing business in Iowa or deriving income from sources in Iowa.

Item 4 amends subrule 52.10(2) to implement 1999 Iowa Acts, House File 733, which amends Iowa Code section 15.333 (investment tax credit) to allow an investment tax credit for purchase of land and existing structures and provides for the recapture of the credit under certain conditions.

Item 6 amends 701--Chapter 52 to add a new rule 701 IAC 52.16(422) to implement 1999 Iowa Acts, Senate File 230, which created a franchise tax credit for certain trusts which are required to file a corporation income tax return.

Item 7 amends subrule 53.2(3) to implement 1999 Iowa Acts, Senate File 230, which provides for net operating losses from the trade or business of farming to be carried back 5 years and forward 20 years.

Item 9 amends rule 701--54.1(422) to implement 1999 Iowa Acts, Senate File 136, which clarifies that an Iowa-domiciled corporation may apportion its income if its trade or business is carried on partly within or partly without the state; or its income is from sources partly within or partly without the state; or from trade or business or sources which are wholly without the state.

Items 3 and 5 amend implementation clauses of rules 701--52.1(422) and 701--52.10(422), respectively.

The proposed amendments will not necessitate additional expenditures by political subdivisions or agencies and entities which contract with political subdivisions.

There are no waiver provisions reflected in these rules because the Department lacks the statutory authority to grant waivers where rules are mainly an interpretation of statutes.

The Department has determined that these proposed amendments may have an impact on small business. The Department has considered the factors listed in Iowa Code section 17A.4A [1998 Iowa Acts, chapter 1202, section 10]. The Department will issue a regulatory analysis as provided in Iowa Code section 17A.4A [1998 Iowa Acts, chapter 1202, section 10] if a written request is filed by delivery or by mailing postmarked no later than October 24, 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 Administrative Rules Coordinator, at least 25 persons signing that request who qualify as a small business, or an organization representing at least 25 such persons.

Any interested person may make written suggestions or comments on these proposed amendments on or before October 22, 1999. Such written comments should be directed to the Policy Section, Compliance Division, Department of Revenue and Finance, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306.

Persons who want to orally convey their views should contact the Policy Section, Compliance Division, Department of Revenue and Finance, at (515)281-4250 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 October 15, 1999.

These amendments are intended to implement Iowa Code chapter 422 as amended by 1999 Iowa Acts, Senate Files 136 and 230, and Iowa Code section 15.333 as amended by 1999 Iowa Acts, House File 733.

The following amendments are proposed.

ITEM 1. Amend rule 701--48.1(422) to read as follows:

701--48.1(422) Composite returns. For tax years of nonresident partners, members, shareholders, or beneficiaries which begin on or after January 1, 1987, a partnership, limited liability company, S corporation, or trust may be allowed or be required to file a composite return and pay the tax due on behalf of the nonresident partners, shareholders, or beneficiaries. For tax years of nonresident partners, members, shareholders, or beneficiaries which begin on or after January 1, 1999, a partnership, limited liability company, S corporation, or trust may elect or may be required to file a composite return and pay the tax due on behalf of the nonresident partners, shareholders, or beneficiaries. For tax years beginning on or after January 1, 1995, professional athletic teams may be allowed or required to file a composite return and pay the tax due on behalf of nonresident team members.

This rule is intended to implement Iowa Code section 422.13 as amended by 1999 Iowa Acts, Senate File 136.

ITEM 2. Amend rule 701--52.1(422), unnumbered paragraphs, to read as follows:

For tax years beginning on or after January 1, 1989, every corporation organized under the laws of Iowa, doing business within Iowa, or deriving income from sources consisting of real or tangible property located or having a situs within Iowa, shall file a true and accurate return of its income or loss for the taxable period. The return shall be signed by the president or other duly authorized officer.

For tax years beginning on or after January 1, 1995, every corporation organized under the laws of Iowa, doing business within Iowa, or deriving income from sources consisting of real, tangible, or intangible property located or having a situs within Iowa, shall file a true and accurate return of its income or loss for the taxable period. The return shall be signed by the president or other duly authorized officer. For tax years beginning on or after January 1, 1999, every corporation doing business within Iowa, or deriving income from sources consisting of real, tangible, or intangible property located or having a situs within Iowa, shall file a true and accurate return of its income or loss for the taxable period. The return shall be signed by the president or other duly authorized officer.

ITEM 3. Amend the implementation clause of rule 701--52.1(422) to read as follows:

This rule is intended to implement Iowa Code sections 422.21, 422.32, 422.33 as amended by 1999 Iowa Acts, Senate File 136, 422.34, 422.34A ~~as amended by 1997 Iowa Acts, House File 354,~~ and 422.36.

ITEM 4. Amend subrule 52.10(2) to read as follows:

52.10(2) Investment tax credit. An investment tax credit of up to 10 percent of the new investment which is directly related to new jobs created by the location or expansion of an eligible business is available. The credit is available for machinery and equipment or improvements to real property placed in service after May 1, 1994. The credit is to be taken in the year the qualifying asset is placed in service. For purchases of real property made in conjunction with the location or expansion of an eligible business on or after July 1, 1999, the cost of land and any buildings and structures located on the land will be considered to be a new investment which is directly related to new jobs for purposes of determining the amount of new investment upon which an investment tax credit may be taken. If the eligible business, within five years of purchase, sells, disposes of, razes, or otherwise renders unusable all or a part of the land, buildings, or other existing structures for which tax credit was claimed under this subrule, the income tax liability of the eligible business for the year in which all or part of the property is sold, disposed of, razed, or otherwise rendered unusable shall be increased by one of the following amounts:

a. One hundred percent of the investment tax credit claimed if the property ceases to be eligible for the tax credit within one full year after being placed in service.

b. Eighty percent of the investment tax credit claimed if the property ceases to be eligible for the tax credit within two full years after being placed in service.

c. Sixty percent of the investment tax credit claimed if the property ceases to be eligible for the tax credit within three full years after being placed in service.

d. Forty percent of the investment tax credit claimed if the property ceases to be eligible for the tax credit within four full years after being placed in service.

e. Twenty percent of the investment tax credit claimed if the property ceases to be eligible for the tax credit within five full years after being placed in service.

Any credit in excess of the tax liability for the tax year may be carried forward seven years or until used, whichever is the earlier.

If the business is a partnership, S corporation, limited liability company, or an estate or trust electing to have the income taxed directly to an individual, an individual may claim the credit. The amount claimed by an individual must be based on the individual's pro-rata share of the individual's earnings of the partnership, S corporation, limited liability company, or estate or trust.

ITEM 5. Amend the implementation clause of rule 701--52.10(15) to read as follows:

This rule is intended to implement Iowa Code ~~sections~~ section 15.333 as amended by 1999 Iowa Acts, House File 733, and section 15.335 ~~as amended by 1996 Iowa Acts, House File 2481~~.

ITEM 6. Amend 701--Chapter 52 by adopting the following new rule 701--52.16(422):

701--52.16(422) Franchise tax credit. For tax years beginning on or after January 1, 1998, a shareholder in a financial institution as defined in Section 581 of the Internal Revenue Code which has elected to have its income taxed directly to the shareholders may take a tax credit equal to the shareholder's pro-rata share of the Iowa franchise tax paid by the financial institution.

The credit must be computed by recomputing the amount of tax computed under Iowa Code section 422.33 by reducing the shareholder's taxable income by the shareholder's pro-rata share of the items of income and expenses of the financial institution and deducting from the recomputed tax the credits allowed by Iowa Code section 422.33. The recomputed tax must be subtracted from the amount of tax computed under Iowa Code section 422.33 reduced by the credits allowed in Iowa Code section 422.33.

The resulting amount, not to exceed the shareholder's pro-rata share of the franchise tax paid by the financial institution, is the amount of tax credit allowed the shareholder.

This rule is intended to implement Iowa Code section 422.33 as amended by 1999 Iowa Acts, Senate File 230.

ITEM 7. Amend subrule 53.2(3) by adopting the following new paragraph "d":

d. For tax years beginning on or after January 1, 1998, for a taxpayer who is engaged in the trade or business of farming as defined in Section 263A(e)(4) of the Internal Revenue Code and has a loss from farming as defined in Section 172(b)(1)(F) of the Internal Revenue Code including modifications prescribed by rule by the director, the Iowa loss from the trade or business of farming is a net operating loss which may be carried back five taxable years prior to the taxable year of the loss. If the taxpayer has elected for federal income tax purposes to carry a net operating loss from the trade or business of farming back two years, the taxpayer must carry the Iowa net operating loss from the trade or business of farming back two years. However, an Iowa net operating loss shall not be carried back to a year in which the taxpayer was not doing business in Iowa.

When the taxpayer carries on more than one trade or business within a corporate shell or files a consolidated Iowa corporation income tax return, the income or loss from each trade or business must be combined to determine the amount of net operating loss that exists and whether it is a net operating loss from the trade or business of farming.

EXAMPLE 1. The taxpayer carries on the trade or business of farming and also the trade or business of trucking for entities outside the corporate shell. For the tax year, the taxpayer had a net operating loss from farming of $25,000 and net income from trucking of $10,000 for a net operating loss for the year of $15,000 which is a net operating loss from the trade or business of farming which may be carried back 5 tax years and forward 20 tax years.

EXAMPLE 2. The taxpayer carries on the trade or business of farming and the trade or business of construction. For the tax year, the taxpayer had income from farming of $12,000 and a net operating loss from construction of $45,000 for a net operating loss for the year of $33,000 which is a net operating loss from the trade or business of construction which may be carried back 5 tax years and forward 20 tax years.

EXAMPLE 3. The taxpayer carries on the trade or business of farming and the trade or business of construction. During the tax year, the taxpayer had a net operating loss of $18,000 from farming and a net operating loss of $9,000 from construction for a total net operating loss of $27,000. Of this net operating loss, $18,000 is from farming and may be carried back 5 years and forward 20 years and $9,000 is from construction and may be carried back 2 years and forward 20 years.

ITEM 8. Amend the implementation clause of rule 701--53.2(422) to read as follows:

This rule is intended to implement Iowa Code section 422.35 as amended by ~~1998~~ 1999 Iowa Acts, Senate File ~~2357~~ 230.

ITEM 9. Amend rule 701--54.1(422), introductory paragraphs, to read as follows:

701--54.1(422) Basis of corporate tax. Iowa Code section 422.33 imposes a tax on all corporations incorporated under the laws of Iowa and upon every foreign corporation doing business in Iowa. For tax years beginning on or after January 1, 1999, Iowa Code section 422.33 imposes a tax on all corporations doing business in Iowa. For corporations or other entities subject to the tax (as corporations), the tax is levied and collected only on such income as may accrue or be recognized to the corporation from business done or carried on in the state plus net income from certain sources without the state which by law follows the commercial domicile of the corporation.

If a corporation carries on its trade or business entirely within the state of Iowa, no allocation or apportionment of its income may be made. The corporation will be presumed to be carrying on its business entirely within the state of Iowa if its sales or other activities are carried on only in Iowa, even though it received income from sources outside the state in the form of interest, dividends, royalties and other sources of income from intangibles. For tax years beginning on or after January 1, 1995, an Iowa-domiciled corporation may apportion its income if it has income from intangibles that have acquired a business situs outside Iowa even if it has no other activities outside the state. For tax years beginning on or after January 1, 1999, an Iowa-domiciled corporation may apportion its income if the trade or business is carried on partly within and partly without the state or if income is derived from sources partly within and partly without the state, or if income is derived from trade or business and sources, all of which are not entirely in the state. (See subrules 52.1(1) and 52.1(4).)

For tax years beginning on or after January 1, 1986, the income from the operation of a farm may be allocated and apportioned within and without the state if the business activities of the corporation are carried on partly within and partly without the state. For tax years beginning on or after January 1, 1995, an Iowa-domiciled corporation may apportion its income if it has income from intangibles that have acquired a business situs outside Iowa even if it has no other activities outside the state. For tax years beginning on or after January 1, 1999, an Iowa-domiciled corporation may apportion its income if the trade or business is carried on partly within and partly without the state or if income is derived from sources partly within and partly without the state, or if income is derived from trade or business and sources, all of which are not entirely in the state. (See subrules 52.1(1) and 52.1(4).)

See subrule 54.1(4) for the definition of carrying on a trade or business partly within and partly without the state.

ITEM 10. Amend the implementation clause of rule 701--54.1(422) to read as follows:

This rule is intended to implement Iowa Code ~~Supplement~~ section 422.33(1) as amended by 1999 Iowa Acts, Senate File 136.

ARC 9357A

SECRETARY OF STATE[721]

Notice of Intended Action

Pursuant to the authority of Iowa Code sections 17A.3 and 47.1, the Secretary of State gives Notice of Intended Action to amend Chapter 21, "Election Forms and Instructions," Iowa Administrative Code.

Iowa Code section 49.44 provides that when a proposed constitutional amendment or other public measure is to be decided by the voters of the entire state, the Secretary of State must prepare a written summary of the constitutional amendment or other public measure for use on the ballot. 721 IAC 21.200(3) sets forth the manner in which the Secretary of State will prepare the summary, notify the public of the proposed language, and allow the public to comment on the proposed language.

Previously, 721 IAC 21.200(3)"a" provided that the description of the constitutional amendment or public measure and the process for notifying the public and allowing public comment were to begin at least 150 days before the election. 1999 Iowa Acts, House Joint Resolution 15, nullified the 150-day requirement.

The Secretary of State finds that the 150-day requirement ensures that the public will have adequate notice of the proposed language describing the constitutional amendment or other public measure and sufficient opportunity to comment on the proposed language. The purpose of the proposed amendment is to restore the 150-day requirement language nullified by the legislature in 1999 Iowa Acts, House Joint Resolution 15.

Any interested persons may make written or oral suggestions or comments on this proposed amendment on or before October 12, 1999. Comments and suggestions should be directed to Robert Galbraith, Deputy Secretary of State, Hoover State Office Building, Second Floor, Des Moines, Iowa 50319; telephone (515)281-6598.

A public hearing will be held on October 12, 1999, from 8:30 until 9:30 a.m. in Conference Room 330 on the third floor of the Hoover State Office Building, 1305 E. Walnut Street, Des Moines. Persons may present their views at the public hearing either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendment.

This proposed amendment is intended to implement Iowa Code section 49.44.

The following amendment is proposed.

Amend paragraph 21.200(3)"a" as follows:

a. ~~The~~ Not less than 150 days prior to the election at which a proposed constitutional amendment or statewide public measure is to be voted on by the voters, the state commissioner shall prepare a proposed description to be used on the ballots in administrative rule form and shall file the proposed rules with the administrative rules coordinator for publication in the Iowa Administrative Bulletin.

FILED EMERGENCY

ARC 9361A

IOWA FINANCE AUTHORITY[265]

Adopted and Filed Emergency After Notice

Pursuant to the authority of Iowa Code paragraph 17A.3(1)"b," the Iowa Finance Authority amends Chapter 1, "General," and Chapter 9, "Title Guaranty Division," and rescinds Chapter 7, "Contested Case Proceedings," and adopts Chapter 7 "Contested Cases," Chapter 16, "Declaratory Orders," and Chapter 17, "Petitions for Rule Making," Iowa Administrative Code.

These amendments revise the Authority's rules governing procedures for contested case proceedings, rule making, petitions for rule making, and declaratory orders.

The Seventy-seventh General Assembly passed amendments to the Iowa Administrative Procedure Act in 1998 Iowa Acts, chapter 1202. A task force from the Attorney General's Office has drafted amendments to the Uniform Rules on Agency Procedure to implement the amendments to the Iowa Administrative Procedure Act. The Authority's proposed amendments to its rules are based on the amendments of the Attorney General's task force, with some omissions and modifications to fit the Authority's needs. The Uniform Rules on Agency Procedure are published in the first volume of the Iowa Administrative Code and are also available at the State Law Library, Capitol Building, Des Moines, Iowa, or on the Attorney General's Web site at http://www.state.ia.us/government/ag/deptdir.htm.

With these revisions, the Authority's rules will be in compliance with 1998 Iowa Acts, chapter 1202. The major changes governing the rule-making process in chapter 1202 which were effective July 1, 1999, are as follows:

In Chapter 7, the Authority has revised its contested case rules to be consistent with the changes in the law. The rules provide for the selection of the presiding officer at hearings, ex parte communications with presiding officers, motion practice, default orders, emergency adjudicative proceedings, and stay orders.

In Chapter 16, the Authority has revised its rules governing declaratory orders to be consistent with the changes in the law. The purpose is the same, but requirements are more specific than in current law. Rules are added to provide for petitions for intervention.

In Chapter 17, the Authority has included rules governing rule making, the regulatory analysis of a rule and the requirements for economic impact statements. The rules also refer to the requirements for fiscal notes required by the Iowa Code. The rule-making provisions also provide for rule reviews to determine whether a rule should be repealed or amended or a new rule adopted. The rules require the Authority to make this review if such a review has not been conducted in the last five years. The rules identify the various members of government or the public that have the right to make this request.

Notice of Intended Action was published in the Iowa Administrative Bulletin on April 21, 1999, as ARC 8917A. The Authority did not receive any public comments on these rules. It did not conduct a public hearing on these rules. The rules are unchanged from those published under Notice of Intended Action. The Authority's Board voted to adopt these rules on September 1, 1999, at a public meeting of the Board.

Pursuant to Iowa Code section 17A.5(2)"b"(2), this amendment became effective upon filing with the Administrative Rules Coordinator on September 3, 1999. The Authority finds that these amendments confer a benefit on the public because they conform with Iowa Code chapter 17A and allow for updated rule making, contested case proceedings, declaratory orders and regulatory analysis.

These amendments are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code section 25B.6.

These amendments became effective September 3, 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 [1.4 to 1.7, Ch 7, 9.8 to 9.11, 9.22 to 9.28, Chs 16, 17] is being omitted. These rules are identical to those published under Notice as ARC 8917A, IAB 4/21/99.

[Filed Emergency After Notice 9/3/99, effective 9/3/99]
[Published 9/22/99]

[For replacement pages for IAC, see IAC Supplement 9/22/99.]

FILED

ARC 9353A

INSPECTIONS AND APPEALS DEPARTMENT[481]

Adopted and Filed

Pursuant to the authority of Iowa Code section 10A.104(5), the Department of Inspections and Appeals hereby amends Chapter 30, "Food and Consumer Safety," Chapter 31, "Food Establishment and Food Processing Plant Inspections," and Chapter 34, "Home Food Establishments," and adopts a new Chapter 32, "Food Protection Certification Programs," Iowa Administrative Code.

The Department recently adopted the 1997 edition of the United States Food and Drug Administration's Model Food Code. These amendments provide additional clarification regarding the requirements contained in the Food Code.

Items 1, 2, 7, 8 and 9 make minor revisions to the recently adopted amendments to fully implement provisions of the Food Code which became effective January 1, 1999.

Items 3 and 6 create standards for an accredited program for food manager certification. These standards include the review and approval of third-party food certification courses and testing, which is one method by which owners or managers of food establishments can comply with the demonstration of knowledge requirements of the Food Code. The Food Code states that demonstration of knowledge requirements can be met by the person's becoming a certified food protection manager who has shown proficiency of required information through passing a test that is part of an accredited program.

Items 4 and 5 establish requirements for the licensing and inspection of temporary food establishments (fair stands) and mobile food units and pushcarts. Since most of the provisions in the Food Code pertain to permanent operations, an abbreviated version is proposed to simplify the use and understanding of rules applicable to operators of temporary events.

Waivers from provisions of these rules may be sought pursuant to Chapter 8 of the 1997 edition of the United States Food and Drug Administration's Model Food Code adopted by the department as mandated in Iowa Code section 137F.2.

Notice of Intended Action was published in the Iowa Administrative Bulletin on July 28, 1999, as ARC 9224A. The following changes to the Notice of Intended Action have been made. In rule 481--30.2(10A), definition of "Food establishment," numbered paragraph "6," the phrase "nonpotentially hazardous" was changed to "not potentially hazardous" at the request of the Administrative Rules Review Committee. In paragraphs 31.7(2)"b" and 31.12(1)"b" the phrase "employees shall have clean outer garments" has been amended to read "employees shall have clean garments." In addition, 1999 Iowa Acts, House File 782, amended language pertaining to approved food sources. As a result, the second sentence of paragraphs 31.7(3)"a" and 31.12(2)"i" was deleted.

The amendments will become effective October 27, 1999.

These amendments are intended to implement Iowa Code chapters 137D and 137F.

The following amendments are adopted.

ITEM 1. Amend rule 481--30.2(10A), definition of "Food establishment," numbered paragraph "6," as follows:

6. Premises of a residence in which food that is ~~nonpotentially~~ not potentially hazardous is sold for consumption off the premises, if the food is labeled to identify the name and address of the person preparing the food and the common name of the food. "~~Nonpotentially~~ Not potentially hazardous food" means only the following:

* Baked goods, except the following: soft pies, bakery products with custard or cream fillings, or any other potentially hazardous goods.

* Wholesome, fresh eggs that are kept at a temperature of 45 degrees Fahrenheit or 7 degrees Celsius or less.

* Honey which is labeled with ~~additional information as provided by departmental rule~~ the name of the product and the name and address of the person preparing the food.

ITEM 2. Amend rule 481--31.1(137F) by adopting the following new subrule:

31.1(13) Paragraph 4-301.12(C) is amended by adding the following: "Establishments need not have a three-compartment sink when each of the following conditions is met:

1. Three or fewer utensils are used for food preparation;

2. Utensils are limited to tongs, spatulas and scoops;

3. The department has approved after verification that the establishment can adequately wash and sanitize these utensils."

ITEM 3. Amend rule 481--31.4(137F) as follows:

481--31.4(137F) Demonstration of knowledge. Section 2-102.11 shall be amended by adding the following: "Completion of a ~~certified food protection~~ certification program, as defined in 481--Chapter 32, by the person in charge who has shown proficiency of the required information through passing a test that is part of an approved program. Course content, teaching materials, testing criteria, test administration and security, and qualification of instructors must be approved by the department. A list of approved food certification course(s) will be maintained by the department and is available upon request. The certification program has been reviewed by the department as meeting the requirements in 481--Chapter 32."

ITEM 4. Rescind subrules 31.7(2) to 31.7(6) and adopt the following new subrules in lieu thereof:

31.7(2) Personnel.

a. The person in charge shall take appropriate action to ensure that no person, while infected with a disease in a communicable form that can be transmitted by foods or who is a carrier of organisms that cause such disease or while afflicted with a boil, an infected wound, or an acute respiratory infection, shall work in a mobile food unit/pushcart in any capacity in which there is a likelihood of the person's contaminating food or food-contact surfaces with pathogenic organisms or transmitting disease to other persons. The person in charge shall require food employee applicants and food employees to report information about the employee's health and activities as they relate to diseases transmissible through food.

b. Employees shall have clean garments, aprons and effective hair restraints. Smoking, eating or drinking in the mobile food unit/pushcart is not allowed. All unauthorized persons are to be kept out of the mobile food unit/pushcart.

c. All employees shall be under the direction of the person in charge. The person in charge shall ensure that workers are effectively cleaning their hands, that potentially hazardous food is adequately cooked, held or cooled, and that all multiuse equipment or utensils are adequately washed, rinsed and sanitized.

31.7(3) Food.

a. Approved food source. All food supplies shall come from a commercial manufacturer or a source that complies with both state and federal laws. The use of food in hermetically sealed containers that is not prepared in an approved food processing plant is prohibited.

b. Food preparation. Unless washing fruits and vegetables, food employees shall, to the extent practicable, avoid direct, bare-hand contact with ready-to-eat food. All establishments shall train food employees on the need and public health reasons for adequate hand washing and personal hygiene. The person in charge shall monitor employee hand-washing practices to ensure that employees are effectively cleaning their hands. One of the following alternatives shall be used by food employees when handling ready-to-eat food:

(1) Single-use gloves, utensils, deli tissue, spatulas, tongs or dispensing equipment; or

(2) An approved antibacterial soap with all operations that permit limited bare-hand contact with ready-to-eat food.

c. Date marking. All ready-to-eat foods that are potentially hazardous shall be date-marked, if held more than 24 hours, and discarded after seven days if the food is kept at an internal temperature of 41_F or below.

d. Food protection. All food shall be covered and stored off the floor. Condiments such as ketchup, mustard, coffee creamer and sugar shall be served in individual packets or from squeeze containers or pump bottles. Milk shall be dispensed from the original container or from an approved dispenser. Ice used as a food or a cooling medium shall be made of drinking water and be manufactured in an approved source. Fruits and vegetables must be washed before being used or sold. All food shall be protected from customer handling, coughing or sneezing by wrapping, sneeze guards or other effective means. All cooking and serving areas shall be adequately protected from contamination.

e. Consumer advisory requirement. If raw or undercooked animal food such as beef, eggs, fish, lamb, poultry or shellfish is offered in ready-to-eat form, the license holder (person in charge) shall post the following language as a consumer advisory:

"Thoroughly cooking foods of animal origin such as beef, eggs, fish, lamb, pork, poultry, or shellfish reduces the risk of food-borne illness. Individuals with certain health conditions may be at a higher risk if these foods are consumed raw or undercooked. Consult your physician or public health official for further information."

f. Food storage location. During operation, food shall not be displayed or stored in or served from any place other than the licensed mobile food unit/pushcart.

31.7(4) Food temperature requirements.

a. Cooking temperatures. As specified in the following chart, the minimum cooking temperatures for food products are:

165_F

* Poultry and game animals that are not commercially raised

* Products stuffed or in a stuffing that contains fish, meat, pasta, poultry or ratite

* All products cooked in a microwave oven
155_F

* Pork, rabbits, ratite and game meats that are commercially raised

* Ground or comminuted (such as hamburgers) meat/fish products

* Raw shell eggs not prepared for immediate consumption
145_F

* Raw shell eggs prepared for immediate consumption

* Fish and other meat products not requiring a 155_F or 165_F cooking temperature as listed above

b. Cold storage. Refrigeration units shall be provided to keep potentially hazardous foods at 41_F or below.

c. Hot storage. Hot food storage units shall be used to keep potentially hazardous food at 140_F or above. Steam tables or other hot holding devices are not allowed to heat foods and are only to be used for hot holding after foods have been adequately cooked.

d. Thermometers. Cold food storage units shall have a numerically scaled thermometer to measure the air temperature of the mobile food unit/pushcart accurately. A metal stem thermometer shall be provided where necessary to check the internal temperature of both hot and cold food. Thermometers must be accurate and have a range from 0_F to 220_F.

31.7(5) Equipment requirements.

a. Mobile food units that handle unpackaged food shall have a three-compartment warewashing sink or have daily access to a three-compartment sink located in another licensed establishment, where utensils can be adequately washed and sanitized. The warewashing sink shall be large enough for complete immersion of the utensils and have an adequate means to heat the water required to wash, rinse and sanitize utensils or food-contact equipment.

b. Chlorine bleach or another approved sanitizer shall be provided for warewashing sanitization and wiping cloths. An appropriate test kit shall be provided to check the concentration of the sanitizer used. The person in charge shall demonstrate knowledge in the determination of the proper concentration of sanitizer to be used.

c. A hand-washing sink, equipped with pressurized hot and cold running water, shall be installed on all mobile food units/pushcarts that handle unpackaged food. The sinks must have a hand cleanser and sanitary towels.

d. Wiping cloths shall be stored in a clean, 100 ppm chlorine sanitizer solution or equivalent. Sanitizing solution shall be changed as needed to maintain the solution in a clean condition.

e. Mobile food units/pushcarts shall provide only single-service articles for use by the consumer.

f. All equipment, utensils, food preparation and food-contact surfaces, including the interior of cabinets or storage compartments, shall be safe, smooth, durable, nonabsorbent and easily cleanable.

31.7(6) Water supply and sewage.

a. Safe water supply. An adequate supply of clean water (potable) shall be provided from an approved source.

b. Water supply tanks. Standards for water supply tanks are as follows:

(1) Materials shall be safe, durable and easily cleanable.

(2) The water supply tank shall be sloped to drain at a discharge outlet that allows complete drainage of the tank.

(3) An access port for inspection and cleaning shall open at the top of the tank, flanged upward at least one-half inch and equipped with a secure port cover, which is sloped to drain.

(4) A fitting with V-type threads is allowed only when the hose is permanently attached.

(5) If provided, a water tank vent shall end in a downward direction and be covered with 16 mesh when the vent is not exposed to dust or debris or with a protective filter when the vent is exposed to dust or debris.

(6) The tank and its inlet and outlet shall be sloped to drain. The inlet shall be designed so that it is protected from waste discharge, dust, oil or grease.

(7) Hoses used shall be safe and durable, have smooth interior surfaces and be clearly identified as to their use for drinking water.

(8) A filter that does not pass oil or oil vapors shall be installed in the air supply line between the compressor and the drinking water system.

(9) The water inlet, outlet or hose shall be equipped with a cap and keeper chain or other adequate protective device. This device must be attached when the system is not in use.

(10) The water tank, pump and hoses shall be flushed and sanitized before being placed into service after con-struction, repair, modification or periods of nonuse.

(11) Water supply systems shall be protected against backflow or contamination of the water supply. Backflow prevention devices, if required, shall be maintained and adequate for their intended purpose.

(12) The water supply tank, pump and hoses shall be used to convey drinking water and shall be used for no other purpose.

c. Wastewater disposal. The sewage holding tank shall be 15 percent larger in volume than the water supply tank and shall be sloped to drain. The drain hose (1 inch) shall be larger than the supply hose (¾ inch). Liquid waste shall be removed at an approved servicing area. The liquid waste retention tank shall be thoroughly flushed and drained during the servicing operation. Wastewater shall be disposed of in an approved wastewater disposal system sized, constructed, maintained and operated according to law.

31.7(7) Physical facility.

a. Floors, walls and ceilings. Floors, walls and ceilings shall be designed, constructed and installed so they are smooth and easily cleanable. Exterior surfaces shall be weather-resistant materials. The mobile food unit/pushcart shall be designed and maintained so that outer openings are protected against the entrance of insects and rodents.

b. Lighting. Adequate lighting shall be provided. Lights above exposed food preparation areas shall be shielded.

c. Garbage containers. An adequate number of cleanable containers shall be provided.

d. Toilet rooms. An adequate number of approved toilet and hand-washing facilities shall be provided in the area.

e. Clothing. Personal clothing and belongings shall be stored at a designated place, adequately separated from food preparation, food service and dishwashing areas.

31.7(8) Toxic materials.

a. Only those toxic items necessary for the operation of the mobile food unit/pushcart shall be maintained or used.

b. Toxic materials and poisonous materials shall bear the manufacturer's label. Working containers of toxic items shall be identified with the common name of the material.

c. Toxic materials and poisons shall be adequately separated from food, equipment, utensils, linens, and single-service and single-use items.

d. Only those toxic materials or poisons permitted by law in food establishments shall be used. These materials shall be used according to the manufacturer's use instructions.

31.7(9) Servicing. Servicing areas shall be provided with overhead protection except those areas for the loading of water or discharge of sewage or liquid waste. The mobile food unit/pushcart may operate up to three days at one location, if adequate facilities are maintained for cleaning and servicing, or the unit must report to a home base of operation each day.

ITEM 5. Amend 481--Chapter 31 by adopting a new rule as follows:

481--31.12(137F) Temporary food establishments.

31.12(1) Personnel.

a. Employees shall keep their hands and exposed portions of their arms clean.

b. Employees shall have clean garments, aprons and effective hair restraints. Smoking, eating or drinking in food booths is not allowed. All nonworking, unauthorized persons are to be kept out of the food booth.

c. All employees, including volunteers, shall be under the direction of the person in charge. The person in charge shall ensure that the workers are effectively cleaning their hands, that potentially hazardous food is adequately cooked, held or cooled and that all multiuse equipment or utensils are adequately washed, rinsed and sanitized.

d. Employees and volunteers shall not work in a mobile food unit/pushcart if they have open cuts, sores or communicable diseases. The person in charge shall take appropriate action to ensure that employees and volunteers who have a disease or medical condition transmissible by food are excluded from the food operation.

e. All employees and volunteers must sign a logbook with the employee's or volunteer's name, address, telephone number and the date and hours worked. The logbook must be maintained for 30 days by the person in charge and be made available to the department upon request.

31.12(2) Food handling and service.

a. Dry storage. All food, equipment, utensils and single-service items shall be stored off the ground and above the floor on pallets, tables or shelving.

b. Cold storage. Refrigeration units shall be provided to keep potentially hazardous foods at 41_F or below. The inspector may approve an effectively insulated, hard-sided container with sufficient coolant for storage of less hazardous food or the use of such a container at events of short duration if the container maintains the temperature at 41_F or below.

c. Hot storage. Hot food storage units shall be used to keep potentially hazardous food at 140_F or above. Electrical equipment is required for hot holding, unless the use of propane stoves and grills capable of holding the temperature at 140_F or above is approved by the department. Sterno cans are allowed for hot holding if adequate temperatures can be maintained. Steam tables or other hot holding devices are not allowed to heat foods and are to be used only for hot holding after foods have been adequately cooked.

d. Cooking temperatures. As specified in the following chart, the minimum cooking temperatures for food products are:

f. Thermometers. Each refrigeration unit shall have a numerically scaled thermometer to measure the air temperature of the unit accurately. A metal stem thermometer shall be provided where necessary to check the internal temperature of both hot and cold food. Thermometers must be accurate and have a range from 0_F to 220_F.

g. Food display. Foods on display must be covered. The public is not allowed to serve itself from opened containers of food or uncovered food items. Condiments such as ketchup, mustard, coffee creamer and sugar shall be served in individual packets or from squeeze containers or pump bottles. Milk shall be dispensed from the original container or from an approved dispenser. All fruits and vegetables must be washed before being used or sold. Food must be stored at least six inches off the ground. All cooking and serving areas shall be adequately protected from contamination. Barbeque areas shall be roped off or otherwise protected from the public. All food shall be protected from customer handling, coughing or sneezing by wrapping, sneeze guards or other effective means.

h. Food preparation. Unless washing fruits and vegetables, food employees shall, to the extent practicable, avoid direct, bare-hand contact with ready-to-eat food. Establishments shall train food employees on the need and public health reasons for adequate hand washing and personal hygiene. The person in charge shall monitor employee hand-washing practices to ensure that employees are effectively cleaning their hands. One of the following alternatives shall be used by food employees when handling ready-to-eat food:

(1) Single-use gloves, utensils, deli tissue, spatulas, tongs or dispensing equipment; or

(2) An approved antibacterial soap with all operations that permit limited bare-hand contact with ready-to-eat foods.

i. Approved food source. All food supplies shall come from a commercial manufacturer or an approved source. The use of food in hermetically sealed containers that is not prepared in an approved food processing plant is prohibited. Transport vehicles used to supply food products are subject to inspection and shall protect food from physical, chemical and microbial contamination.

j. Leftovers. Leftovers may not be used, sold or given away in a temporary food establishment. Hot-held foods that are not used by the end of the day must be discarded.

31.12(3) Utensil storage and warewashing.

a. Single-service utensils. The use of single-service plates, cups and tableware is strongly recommended. The use of multiuse eating or drinking utensils must be approved by the department.

b. Dishwashing. An adequate means to heat the water and a minimum of three basins large enough for complete immersion of the utensils are required to wash, rinse and sanitize utensils or food-contact equipment.

c. Sanitizers. Chlorine bleach or another approved sanitizer shall be provided for warewashing sanitization and wiping cloths. An appropriate test kit shall be provided to check the concentration of the sanitizer used. The person in charge shall demonstrate knowledge in the determination of the correct concentration of sanitizer to be used.

d. Wiping cloths. Wiping cloths shall be stored in a clean, 100 ppm chlorine sanitizer solution or equivalent. Sanitizing solution shall be changed as needed to maintain the solution in a clean condition.

31.12(4) Water.

a. Water supply. An adequate supply of clean water shall be provided from an approved source. Water storage units and hoses shall be food grade and approved for use in storage of water. If not permanently attached, hoses used to convey drinking water shall be clearly and indelibly identified as to their use. Water supply systems shall be protected against backflow or contamination of the water supply. Backflow prevention devices, if required, shall be maintained and adequate for their intended purpose.

b. Wastewater disposal. Wastewater shall be disposed of in an approved wastewater disposal system sized, con-structed, maintained and operated according to law.

31.12(5) Premises.

a. Hand-washing container. An insulated container with at least a two-gallon capacity with a spigot, basin, soap and dispensed paper towels shall be provided for hand washing. The container shall be filled with hot water.

b. Floors, walls and ceilings. If required, walls and ceilings shall be of tight design and weather-resistant materials to protect against the elements and flying insects. If required, floors shall be constructed of tight wood, asphalt, rubber or plastic matting or other cleanable material to control dust or mud.

c. Lighting. Adequate lighting shall be provided. Lights above exposed food preparation areas shall be shielded.

d. Food preparation surfaces. All food preparation or food contact surfaces shall be of a safe design, smooth, easily cleanable and durable.

e. Garbage containers. An adequate number of cleanable containers with tight-fitting covers shall be provided both inside and outside the establishment.

f. Toilet rooms. An adequate number of approved toilet and hand-washing facilities shall be provided at each event.

g. Clothing. Personal clothing and belongings shall be stored at a designated place in the establishment, adequately separated from food preparation, food service and dish-washing areas.

ITEM 6. Adopt new 481--Chapter 32 as follows:

CHAPTER 32
FOOD PROTECTION CERTIFICATION PROGRAMS

481--32.1(137F) Definitions.

"Accredited" means a review of a certifying organization by an independent organization using specific criteria required in this chapter to verify compliance with food protection certification examination program standards.

"Accrediting organization" means an independent organization that determines whether a food protection manager certification program meets the standards of this chapter.

"Certification" means successful completion of testing to show that an individual has achieved competency levels of skills and knowledge of food protection necessary to perform as a food manager based on the criteria and standards specified in this chapter.

"Certification program" means the sum of individual components including testing according to this chapter that results in certification of individuals as meeting minimum standards of knowledge and food protection.

"Certified food protection manager" means the operator or a manager (person in charge) of a (retail) food establishment who has been certified by an approved food protection certification examination.

"Council on food protection practices" means the council established to advise the department regarding the operation of the certification program. The council membership includes three food regulators, two members from industry or industry trade associations, and two members from an accredited academic institution with a program in food protection.

"Food protection certification examination" means the examination in food protection approved in accordance with this program.

481--32.2(137F) Approval of certification programs.

32.2(1) Certification programs approved by the Conference on Food Protection (CFP) shall be recognized by the department upon receipt of appropriate documentation that the program is approved by the CFP.

32.2(2) The certification program must be reviewed by the council on food protection practices prior to being reviewed or approved by the department as meeting the requirements of this chapter. Each organization seeking approval from the department to develop and administer a certification program examination for certified food protection managers shall provide the following background information:

a. The organization's name, ownership, address, telephone number, contact person and other identifying information.

b. A description of the scope of usage of the examination including the time in use, number of examinations already administered and any government or other agencies that have already approved the examination.

c. Demonstrated experience in the development of psychometrically valid competency examinations.

d. Adequate documentation from an accrediting organization to verify that the examination is accredited.

481--32.3(137F) Test development. The test shall be legally defensible which means the ability to withstand a legal challenge to the appropriateness of the examination for the purpose for which it is used. This means that the examination can be defended due to the perceived bias of the examination, inappropriate chosen content, or claim that the examination does not adequately protect the consumer.

Each organization shall provide information about the development and administration of the examination for which approval is sought, including:

1. Formation of the examination questions with number of items in the question bank, the source of questions, method of composition and job relatedness.

2. Content validity based on "Demonstration of Knowledge" in Section 2-102.11 of the Food Code and requirements in Iowa Code chapter 137F and administrative rules adopted in regard to retail food establishments.

3. Test development, including setting the passing score, based on the most recent edition of Standards for Educational and Psychological Testing, developed by the American Psychological Association, American Educational Research Association and National Council on Measurement in Education, and all appropriate federal requirements (for example, Americans with Disabilities Act, Equal Employment Opportunity Commission standards). Tests must be revised as needed to meet changes in the Standards for Educational and Psychological Testing or any of the federal requirements.

4. Methods used to provide alternative examination forms (retakes) from the bank of questions.

5. Alternative language forms used.

6. Item analysis data to show that each examination is measuring performance at the same difficulty and reliability levels.

7. Policies and procedures used to administer examinations.

481--32.4(137F) Test administration. Each testing organization shall provide adequate security mechanisms that include:

1. Providing effective security during preparation, printing, transportation, handling, administration and destruction of the examinations.

2. Ensuring that approved organization monitors are present during the administration of the examinations.

3. Maintaining a tracking system of all examinations.

4. Making provisions to remove a particular version if the examination has been compromised.

32.4(1) Each testing organization shall ensure administration of examinations in compliance with this chapter by:

a. Verifying the eligibility of candidates according to this subrule and ensuring that the examination taker and applicant are the same person. The monitor shall confirm the identity of the individual who wishes to take the examination by photograph identification, driver's license or student identification card.

b. Providing the necessary staff and resources to administer, monitor and grade examinations. There shall be at least one monitor for every 35 students taking the examination.

c. Maintaining safeguards to ensure that individuals who have cheated on the examination are not granted certification.

d. Providing an individual who speaks English as a second language with the opportunity to take the examination in the individual's language if such is available, or providing the individual with a translator if one is requested.

e. Accommodating the needs of special populations to enable them to take the examination.

32.4(2) The examinations shall be stored and administered under secure conditions. "Secure conditions" means that access to the examination is limited to the monitor of the examination or an agent of the department. The examinations shall be inventoried before and immediately following each administration of the examination. The location of the examinations shall be monitored and kept in a log at all times.

481--32.5(137F) Reporting requirements. Each testing organization shall collect and provide the following performance criteria to the department:

1. Statistics following the examination which indicate the percentage of candidates answering each question correctly, number of candidates choosing each response, reliability estimates and discrimination indices.

2. Within 15 working days of each examination, the following class enrollment information: each candidate's name, home address, passing/failing score, date of examination and names of instructors and monitors.

3. An annual report showing the number of candidates tested, the number passing the examination and the number failing the examination.

481--32.6(137F) Audit by the department. The department reserves the right to audit operations to verify security measures and compliance with these rules.

These rules are intended to implement Iowa Code section 137F.2.

ITEM 7. Amend subrule 34.1(4) as follows:

34.1(4) All potentially hazardous food must be refrigerated at ~~45_F~~ 41_F or less, or held at 140_F or higher to control bacteria growth. Potentially hazardous foods that have been cooked and then refrigerated shall be reheated rapidly to an internal temperature of 165_F or higher before being placed in hot food storage holding units. Food warmers and other hot food holding units shall not be used for the reheating of potentially hazardous foods.

ITEM 8. Rescind subrule 34.1(14).

ITEM 9. Amend rule 481--34.2(137D), introductory paragraph, as follows:

481--34.2(137D) Enforcement. All ~~serious~~ critical violations (four- and five-point items) shall be corrected within 10 days. Within 15 days, the license holder shall make a written report to the regulatory authority, stating the action taken to correct the ~~serious~~ critical violation. All ~~one- and two-point items~~ noncritical violations shall be corrected by the next routine inspection.

[Filed 9/1/99, effective 10/27/99]

[Published 9/22/99]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 9/22/99.

ARC 9358A

INSURANCE DIVISION[191]

Adopted and Filed

Pursuant to the authority of Iowa Code section 505.8, the Division of Insurance hereby amends 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 service 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.

Notice of Intended Action was published in the Iowa Administrative Bulletin on July 14, 1999, as ARC 9194A. A hearing was held on Tuesday, August 3, 1999. Comments were received concerning the definitions of emergency services and provider access. Changes to the Noticed amendments have been made to clarify the definition of emergency services as stated in the law. In addition, changes have been made to the requirements of provider access to clarify how direct access is allowed.

These amendments were also Adopted and Filed Emergency and were published in the Iowa Administrative Bulletin on July 14, 1999, as ARC 9213A.

These amendments were adopted on August 18, 1999.

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 will become effective October 27, 1999, at which time the Adopted and Filed Emergency amendments are hereby rescinded.

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 symptoms of sufficient severity, including but not limited to severe pain, that an ordinarily 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 female member direct access to obstetrical or gynecological services from network and participating providers. 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 symptoms of sufficient severity, including but not limited to severe pain, that an ordinarily 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 a female enrollee direct access to obstetrical and gynecological services from network or participating providers. 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 services. "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 a female enrollee direct access to obstetrical and gynecological services from network or participating providers. 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 symptoms of sufficient severity, including but not limited to severe pain, that an ordinarily 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 a female enrollee direct access to obstetrical or gynecological services from network and participating providers. 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 symptoms of sufficient severity, including but not limited to severe pain, that an ordinarily 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 a female enrollee direct access to obstetrical or gynecological services from network and participating providers. 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.

[Filed 9/3/99, effective 10/27/99]

[Published 9/22/99]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 9/22/99.

ARC 9354A

LAW ENFORCEMENT ACADEMY[501]

Adopted and Filed

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

These 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.

Notice of Intended Action was published in the July 14, 1999, Iowa Administrative Bulletin as ARC 9178A. These amendments are identical to those published under Notice of Intended Action.

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).

These amendments will become effective on October 27, 1999.

The following amendments are adopted.

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 and reserve 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, before the applicant is hired, the results of the examination must be considered by the hiring authority ~~before being hired~~.

ITEM 8. Rescind and reserve 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 conform 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.

[Filed 9/1/99, effective 10/27/99]

[Published 9/22/99]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 9/22/99.

ARC 9360A

REVENUE AND FINANCE DEPARTMENT[701]

Adopted and Filed

Pursuant to the authority of Iowa Code section 421.14, the Department of Revenue and Finance hereby adopts amendments to Chapter 10, "Interest, Penalty, Exceptions to Penalty, and Jeopardy Assessments," and adopts new Chapter 70, "Replacement Tax and Statewide Property Tax," Iowa Administrative Code.

Notice of Intended Action was published in IAB, Volume XXII, Number 2, page 102, on July 28, 1999, as ARC 9229A.

Chapter 10 is amended to include the replacement tax and statewide property tax as "taxes" under Title X of the Iowa Code.

Chapter 70 is adopted to establish rules providing for the proper administration of the replacement tax and statewide property tax, which replaced the existing central assessment property tax method of valuation for electric and natural gas utilities with a substitute tax on the generation, transmission, and delivery of electricity and natural gas.

These amendments are identical to those published under Notice of Intended Action.

There are no waiver provisions reflected in these amendments because the Department lacks the statutory authority to grant waivers where rules are mainly an interpretation of statutes.

These amendments will become effective October 27, 1999, after filing with the Administrative Rules Coordinator and publication in the Iowa Administrative Bulletin.

These amendments are intended to implement Iowa Code chapter 437A.

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 [10.1(3), Ch 70] is being omitted. These amendments are identical to those published under Notice as ARC 9229A, IAB 7/28/99.

[Filed 9/3/99, effective 10/27/99]
[Published 9/22/99]

[For replacement pages for IAC, see IAC Supplement 9/22/99.]

ARC 9355A

SAVINGS AND LOAN DIVISION[197]

Adopted and Filed

Pursuant to the authority of Iowa Code section 534.401, the Savings and Loan Division adopts new Chapter 15, "Petitions for Rule Making," Chapter 16, "Declaratory Orders," and Chapter 17, "Contested Cases," Iowa Administrative Code.

These new chapters implement changes to the Uniform Rules on Agency Procedure required by the Iowa Administrative Procedure Act as a result of 1998 Iowa Acts, chapter 1202.

Notice of Intended Action was published in the Iowa Administrative Bulletin on April 21, 1999, as ARC 8923A.

There are no changes from the Notice of Intended Action.

These amendments are intended to implement Iowa Code chapter 17A as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code chapters 197 and 272C.

These amendments will become effective October 27, 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 15 to 17] is being omitted. These rules are identical to those published under Notice as ARC 8923A, IAB 4/21/99.

[Filed 9/2/99, effective 10/27/99]
[Published 9/22/99]

[For replacement pages for IAC, see IAC Supplement 9/22/99.]

ARC 9363A

UTILITIES DIVISION[199]

Adopted and Filed

Pursuant to the authority of Iowa Code sections 17A.4, 476.1, and 476.2, the Utilities Board (Board) gives notice that on August 27, 1999, the Board issued an order in Docket No. RMU-99-2, In re: Uniform Rules On Agency Procedure, "Order Adopting Rules," to adopt new rules relating to declaratory orders.

These rules are the result of an inquiry initiated by the Board on February 4, 1999, through which the Board invited public comment on the possible adoption of new uniform rules for declaratory orders, rule making, and contested cases. Notice of the Board's inquiry was published in the Iowa Administrative Bulletin on February 24, 1999. The comments received generally supported the Board's proposal to adopt the uniform rules on declaratory orders (with only minor changes) and to modify the Board's existing rules regarding rule making and contested cases without adopting the uniform rules. The Board then initiated this proceeding on April 23, 1999, to consider and receive public comment on the adoption of the uniform rules regarding declaratory orders. Notice of Intended Action was published in the Iowa Administrative Bulletin on May 19, 1999, as ARC 8981A. Written comments were due on or before June 8, 1999.

Timely comments were filed by MidAmerican Energy Company (MidAmerican) and on June 21, 1999, supplemental comments were filed by the Consumer Advocate Division of the Department of Justice (Consumer Advocate). Consumer Advocate also participated in an oral comment proceeding on June 23, 1999. MidAmerican suggested certain revisions to the Board's proposed rules, as described below, along with Consumer Advocate's responses.

First, MidAmerican suggested that new subrule 4.9(1) would enlarge the power of the Board to deny a petition for declaratory order, by permitting the Board to refuse to issue an order, for example, whenever the questions presented in the petition are also presented in another proceeding that may definitively resolve them. MidAmerican suggested that the Board replace the word "question" in each of the numbered paragraphs with the phrase "precise legal issue" to limit the ability of the Board to deny a petition.

The Board declined the suggested revision in favor of the standard language from the state's uniform rules. The Board prefers not to vary the standard language of Iowa's uniform rules on agency procedure unless the variation is required to accommodate some unique aspect of the Board's practice. That rationale does not apply to the change suggested byMidAmerican.

Second, MidAmerican suggested that the proposed rules "permit a substantial universe of persons to block issuance of a declaratory order" because the uniform rules permit any "interested person" to refuse to be bound by a declaratory order (prior to issuance of the order). If a refusal to be bound is filed, it may be inappropriate for the Board to issue the order. MidAmerican did not propose a specific remedy for this problem, but Consumer Advocate did. Consumer Advocate suggested that the language from the uniform rules concerning "interested persons" be replaced with a reference to "any person who would be a necessary party to the proceedings under applicable substantive law" in subrule 4.6(1). Consumer Advocate believes this revision would narrow the universe of persons who would have to be notified of a petition for a declaratory order and who would have the power to block issuance of a declaratory order by refusing to be bound by the resolution.

The Board adopted Consumer Advocate's suggestion. While the broader language of the uniform rules may be appropriate for most agencies, it would unnecessarily interfere with the Board's ability to issue declaratory orders, due to the nature of the Board's jurisdiction. Adopting Consumer Advocate's suggested change will make the rules more closely conform to the statute, reduce the burden on petitioners, and permit the Board to issue more declaratory orders in more circumstances, as appropriate.

Third, MidAmerican suggested that the generic term "agency" used throughout the proposed rules be replaced with the phrase "utilities board." The Board adopted this suggestion, as it will clarify the application of the rules to the Board.

Finally, both MidAmerican and Consumer Advocate raised a question regarding the circumstances under which a party who has consented to be bound by a Board declaratory order may be permitted to withdraw that consent. Both commenters agreed that the Board should address this question on a case-by-case basis, rather than in a rule-making context, because the resolution of any particular case is likely to depend upon the specific facts. The Board agreed and will reserve this issue to individual case resolution as it may arise.

These rules are intended to implement Iowa Code section 17A.9 as amended by 1998 Iowa Acts, chapter 1202, and Iowa Code section 476.1.

These rules will become effective October 27, 1999.

The following rules are adopted.

Rescind 199--Chapter 4 and adopt the following new chapter:

CHAPTER 4
DECLARATORY ORDERS

199--4.1(17A) Petition for declaratory order. Any person may file a petition with the Iowa utilities board for a declaratory order as to the applicability to specified circumstances of a statute, rule, or order within the primary jurisdiction of the utilities board, at 350 Maple Street, Des Moines, Iowa 50319-0069. A petition is deemed filed when it is received by that office. The utilities board shall provide the petitioner with a file-stamped copy of the petition if the petitioner provides the board with an extra copy for this purpose. The petition must be typewritten or legibly handwritten in ink and must substantially conform to the following form:

STATE OF IOWA
BEFORE THE IOWA STATE UTILITIES BOARD

IN RE: THE PETITION OF (insert petitioner's name) FOR A DECLARATORY ORDER ON (insert rule number, statute, etc., for which interpretation is sought).
}
DOCKET NO.___
(completed by board)
PETITION FOR
DECLARATORY ORDER

COMES NOW (insert name of petitioner) and requests a declaratory order on (state rule number, statute, order, decision, or other written statement of law or policy of which an interpretation is sought), and in support petitioner states:

(The petition shall then set forth in separately numbered statements:)

1. A clear and concise statement of all relevant facts on which the ruling is requested.

2. A citation to and the relevant language of the specific statutes, rules, policies, decisions, or orders, the applicability of which has been questioned, and any other relevant law.

3. The questions petitioner wants answered, stated clearly and concisely.

4. The answers to the questions desired by the petitioner and a summary of the reasons urged by the petitioner in support of those answers.

5. The reasons for requesting the declaratory order and disclosure of the petitioner's interest in the outcome.

6. A statement indicating whether the petitioner is currently a party to another proceeding involving the questions at issue and whether, to the petitioner's knowledge, those questions have been decided by, are pending determination by, or are under investigation by, any governmental entity.

7. The names and addresses of other persons, or a description of any class of persons, known by petitioner to be affected by, or interested in, the questions presented in the petition.

8. Any request by petitioner for a meeting as provided for by rule 4.7(17A).

[The petition must be dated and signed by the petitioner or the petitioner's representative. It must also include the name, mailing address, and telephone number of the petitioner and petitioner's representative, and a statement indicating the person to whom communications concerning the petition should be directed.]

WHEREFORE, (insert petitioner's name) prays that the board issue a declaratory order on (insert proposed subject of the requested order).

Respectfully submitted,

________________________

(Signature of petitioner or representative)

(Typed or printed name of signer)

(Address and telephone number)

199--4.2(17A) Notice of petition. Within five days after receipt of a petition for a declaratory order, the utilities board shall give notice to all persons not served by the petitioner pursuant to rule 4.6(17A) to whom notice is required by any provision of law. The utilities board may also give notice to any other persons.

199--4.3(17A) Intervention.

4.3(1) Persons who qualify under any applicable provision of law as an intervenor and who file a petition for intervention within 14 days of the filing of a petition for declaratory order shall be allowed to intervene in a proceeding for a declaratory order.

4.3(2) Any person who filed a petition for intervention at any time prior to the issuance of an order may be allowed to intervene in a proceeding for a declaratory order at the discretion of the utilities board.

4.3(3) A petition for intervention shall be filed at 350 Maple Street, Des Moines, Iowa 50319-0069. Such a petition shall be deemed filed when it is received by that office. The utilities board will provide the petitioner with a file-stamped copy of the petition for intervention if the petitioner provides an extra copy for this purpose. A petition for intervention must be typewritten or legibly handwritten in ink and must substantially conform to the following form:

COMES NOW (insert name of petitioner) and requests intervention in this matter and in support petitioner states:

(The petition shall then set forth in separately numbered statements:)

1. Facts supporting the intervenor's standing and qualifications for intervention.

2. The answers urged by the intervenor to the question or questions presented and a summary of the reasons urged in support of those answers.

3. Reasons for requesting intervention and disclosure of the intervenor's interest in the outcome.

4. A statement indicating whether the intervenor is currently a party to another proceeding involving the questions at issue and whether, to the intervenor's knowledge, those questions have been decided by, are pending determination by, or are under investigation by, any governmental entity.

5. The names and addresses of other persons, or a description of any class of persons, known by the intervenor to be affected by, or interested in, the questions presented in the petition.

6. Whether the intervenor consents to be bound by the determination of the matters presented in the declaratory order proceeding.

[The petition must be dated and signed by the intervenor or the intervenor's representative. It must also include the name, mailing address, and telephone number of the intervenor and intervenor's representative, and a statement indicating the person to whom communications concerning the petition should be directed.]

WHEREFORE, (insert intervenor's name) prays that the board grant it intervention and issue a declaratory order on (insert proposed subject of the requested order).

Respectfully submitted,

________________________

(Signature of intervenor or representative)

(Typed or printed name of signer)

(Address and telephone number)

199--4.4(17A) Briefs. The petitioner or any intervenor may file a brief in support of the position urged. The utilities board may request a brief from the petitioner, any intervenor, or any other person concerning the questions raised.

199--4.5(17A) Inquiries. Inquiries concerning the status of a declaratory order proceeding may be made to the Executive Secretary, Iowa Utilities Board, 350 Maple Street, Des Moines, Iowa 50319-0069.

199--4.6(17A) Service and filing of petitions and other papers.

4.6(1) When service required. Except where otherwise provided by law, every petition for declaratory order, petition for intervention, brief, or other paper filed in a proceeding for a declaratory order shall be served upon each of the parties of record to the proceeding and on any persons who, based upon a reasonable investigation, would be a necessary party to the proceeding under applicable substantive law, simultaneously with their filing. The party filing a document is responsible for service on all parties and other required persons.

4.6(2) Filing--when required. All petitions for declaratory orders, petitions for intervention, briefs, or other papers filed in a proceeding for a declaratory order shall be filed with the Executive Secretary, 350 Maple Street, Des Moines, Iowa 50319-0069. All petitions, briefs, or other papers that are required to be served upon a party shall be filed simultaneously with the utilities board.

4.6(3) Method of service, time of filing, and proof of mailing. Method of service, time of filing, and proof of mailing shall be as provided by 199--subrule 7.6(1).

199--4.7(17A) Agency consideration. Upon request by petitioner, the utilities board must schedule a brief and informal meeting between the original petitioner, all intervenors, and the utilities board, a member of the utilities board, or a member of the staff of the utilities board to discuss the questions raised. The utilities board may solicit comments from any person on the questions raised. Also, comments on the questions raised may be submitted to the utilities board by any person.

199--4.8(17A) Action on petition. Within the time allowed by 1998 Iowa Acts, chapter 1202, section 13(5), after receipt of a petition for a declaratory order, the utilities board or des-ignee shall take action on the petition as required by 1998 Iowa Acts, chapter 1202, section 13(5).

199--4.9(17A) Refusal to issue order.

4.9(1) The utilities board shall not issue a declaratory order where prohibited by 1998 Iowa Acts, chapter 1202, section 13(1), and may refuse to issue a declaratory order on some or all of the questions raised for the following reasons:

1. The question does not substantially comply with the required form.

2. The petition does not contain facts sufficient to demonstrate that the petitioner will be aggrieved or adversely affected by the failure of the utilities board to issue an order.

3. The utilities board does not have jurisdiction over the questions presented in the petition.

4. The questions presented by the petition are also presented in a current rule making, contested case, or other agency or judicial proceeding, that may definitively resolve them.

5. The questions presented by the petition would more properly be resolved in a different type of proceeding or by another body with jurisdiction over the matter.

6. The facts or questions presented in the petition are unclear, overbroad, insufficient, or otherwise inappropriate as a basis upon which to issue an order.

7. There is no need to issue an order because the questions raised in the petition have been settled due to a change in circumstances.

8. The petition is not based upon facts calculated to aid in the planning of future conduct but is, instead, based solely upon prior conduct in an effort to establish the effect of that conduct or to challenge an agency decision already made.

9. The petition requests a declaratory order that would necessarily determine the legal rights, duties, or responsibilities of other persons who have not joined in the petition, intervened separately, or filed a similar petition and whose position on the questions presented may fairly be presumed to be adverse to that of the petitioner.

10. The petitioner requests the utilities board to determine whether a statute is unconstitutional on its face.

4.9(2) A refusal to issue a declaratory order must indicate the specific grounds for the refusal and constitutes final utilities board action on the petition.

4.9(3) Refusal to issue a declaratory order pursuant to this provision does not preclude the filing of a new petition that seeks to eliminate the grounds for the refusal to issue an order.

199--4.10(17A) Contents of declaratory order--effective date. In addition to the order itself, a declaratory order must contain the date of its issuance, the name of the petitioner and all intervenors, the specific statutes, rules, policies, decisions, or orders involved, the particular facts upon which it is based, and the reasons for its conclusions.

A declaratory order is effective on the date of issuance.

199--4.11(17A) Copies of orders. A copy of all orders issued in response to a petition for a declaratory order shall be mailed promptly to the original petitioner and all intervenors.

199--4.12(17A) Effect of a declaratory order. A declaratory order has the same status and binding effect as a final order issued in a contested case proceeding. It is binding on the utilities board, the petitioner, and any intervenors who consent to be bound and is applicable only in circumstances where the relevant facts and the law involved are indistinguishable from those on which the order was based. As to all other persons, a declaratory order serves only as precedent and is not binding on the utilities board. The issuance of a declaratory order constitutes final agency action on the petition.

These rules are intended to implement 1998 Iowa Acts, chapter 1202, section 13, and Iowa Code section 476.1.

[Filed 9/3/99, effective 10/27/99]

[Published 9/22/99]

EDITOR'S NOTE: For replacement pages for IAC, see IAC Supplement 9/22/99.

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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
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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
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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
8	Friday, October 1, 1999	October 20, 1999
9	Friday, October 15, 1999	November 3, 1999
10	Friday, October 29, 1999	November 17, 1999

AGENCY	HEARING LOCATION	DATE AND TIME OF HEARING
EDUCATION DEPARTMENT[281]
Beginning teacher induction program, ch 83 IAB 9/8/99 ARC 9313A (See also ARC 9315A) (ICN Network)	ICN Room--2nd Floor Grimes State Office Bldg. Des Moines, Iowa (Origination site)	October 4, 1999 4 to 6 p.m.
	East Union Jr/Sr High School 1916 High School Dr. Afton, Iowa	October 4, 1999 4 to 6 p.m.
	ICN Classroom 13 Algona Attendance Center Iowa Lakes Community College 2111 Hwy. 169 N. Algona, Iowa	October 4, 1999 4 to 6 p.m.
	Room 8, Bldg. 6 Des Moines Area Community College 2006 S. Ankeny Blvd. Ankeny, Iowa	October 4, 1999 4 to 6 p.m.
	Louisa Room Mississippi Bend AEA 9 729 21st St. Bettendorf, Iowa	October 4, 1999 4 to 6 p.m.
	Room 108 Great River AEA 16 1200 University Burlington, Iowa	October 4, 1999 4 to 6 p.m.
	ICN Classroom 1 AEA 7 3712 Cedar Heights Dr. Cedar Falls, Iowa	October 4, 1999 4 to 6 p.m.
	ICN Classroom 106A Washington High School 2205 Forest Dr. SE Cedar Rapids, Iowa	October 4, 1999 4 to 6 p.m.
	Room 111 Charles City High School 1 Comet Dr. Charles City, Iowa	October 4, 1999 4 to 6 p.m.
	Media Center Lewis Central High School Hwy. 275 Council Bluffs, Iowa	October 4, 1999 4 to 6 p.m.
	Senior High School 404 Park Ave. Dows, Iowa	October 4, 1999 4 to 6 p.m.
EDUCATION DEPARTMENT[281] (Cont'd) ICN Network
	ICN Classroom Keystone AEA 1 1400 2nd St. SW Elkader, Iowa	October 4, 1999 4 to 6 p.m.
	Reg Johnson Hall 105 Ellsworth Community College 1100 College Ave. Iowa Falls, Iowa	October 4, 1999 4 to 6 p.m.
	ICN Classroom Southern Prairie AEA 15 2814 N. Court St. Ottumwa, Iowa	October 4, 1999 4 to 6 p.m.
	ICN Classroom 103 AEA 4 1382 4th Ave. Sioux Center, Iowa	October 4, 1999 4 to 6 p.m.
	Individual Learning Center Central Campus 1121 Jackson St. Sioux City, Iowa	October 4, 1999 4 to 6 p.m.
Financial incentives for national board certification, 84.1 to 84.4 IAB 9/8/99 ARC 9316A (See also ARC 9314A)	State Board Room--2nd Floor Grimes State Office Bldg. Des Moines, Iowa	September 28, 1999 9 a.m.
Supplementary weighting, ch 97 IAB 9/8/99 ARC 9312A (See also ARC 9318A)	ICN Room--2nd Floor Grimes State Office Bldg. Des Moines, Iowa	September 29, 1999 9:45 a.m.
	All AEAs in the state of Iowa (ICN Network)	September 29, 1999 9:45 a.m.
	State Board Room--2nd Floor Grimes State Office Bldg. Des Moines, Iowa	September 29, 1999 1 p.m.
INSURANCE DIVISION[191]
Valuation of life insurance policies, ch 47 IAB 9/8/99 ARC 9345A	330 Maple St. Des Moines, Iowa	September 28, 1999 10 a.m.
External review, ch 76 IAB 9/22/99 ARC 9356A	330 E. Maple St. Des Moines, Iowa	October 12, 1999 10 a.m.
IOWA FINANCE AUTHORITY[265]
Mortgage release certificate, 9.20 IAB 9/22/99 ARC 9362A	Conference Room 100 E. Grand Ave. Des Moines, Iowa	October 26, 1999 1 p.m.
LABOR SERVICES DIVISION[875]
Report of injury form--filing by facsimile, 4.4, 4.19 IAB 8/25/99 ARC 9287A	1000 E. Grand Ave. Des Moines, Iowa	September 22, 1999 2 p.m. (If requested)
Discrimination against employees, 9.4 IAB 8/25/99 ARC 9286A	1000 E. Grand Ave. Des Moines, Iowa	September 22, 1999 1 p.m. (If requested)
General industry safety and health, 10.20 IAB 8/25/99 ARC 9288A	1000 E. Grand Ave. Des Moines, Iowa	September 22, 1999 2 p.m. (If requested)
Construction safety and health, 26.1 IAB 8/25/99 ARC 9290A	1000 E. Grand Ave. Des Moines, Iowa	September 22, 1999 2 p.m. (If requested)
Employment agency licensing, 38.1 to 38.10 IAB 8/25/99 ARC 9289A	1000 E. Grand Ave. Des Moines, Iowa	September 22, 1999 1 p.m. (If requested)
LIBRARIES AND INFORMATION SERVICES DIVISION[286]
Iowa regional library system, ch 8 IAB 9/22/99 ARC 9350A	Conference Room State Library E. 12th St. and Grand Ave. Des Moines, Iowa	October 12, 1999 10 a.m.
NATURAL RESOURCE COMMISSION[571]
Boating accidents--reports, 42.2 IAB 9/8/99 ARC 9328A	Conference Room--4th Floor West Wallace State Office Bldg. Des Moines, Iowa	September 29, 1999 10 a.m.
Game management areas, 51.3(1) IAB 9/8/99 ARC 9327A	Conference Room--4th Floor West Wallace State Office Bldg. Des Moines, Iowa	September 29, 1999 9 a.m.
Sport fishing, 81.1, 81.2 IAB 9/8/99 ARC 9326A	Community Room Farmers and Merchants Savings Bank 201 W. Main Waukon, Iowa	October 4, 1999 7 p.m.
	Basement Room Frontier Bank Bldg. Rock Rapids, Iowa	October 19, 1999 7 p.m.
Nonresident deer hunting--handguns, 94.7 IAB 9/8/99 ARC 9324A	Conference Room--4th Floor West Wallace State Office Bldg. Des Moines, Iowa	September 28, 1999 10 a.m.
Wild turkey spring hunting, 98.1(1), 98.2, 98.3, 98.5, 98.10, 98.13(2), 98.14, 98.16 IAB 9/8/99 ARC 9322A	Conference Room--4th Floor West Wallace State Office Bldg. Des Moines, Iowa	October 12, 1999 10 a.m.
Deer hunting, 106.11(4) IAB 9/8/99 ARC 9323A	Conference Room--4th Floor West Wallace State Office Bldg. Des Moines, Iowa	September 28, 1999 10 a.m.
PERSONNEL DEPARTMENT[581]
Benefits, 15.1(3), 15.5 IAB 9/8/99 ARC 9297A (See also ARC 9298A)	North Conference Room--1st Floor Grimes State Office Bldg. Des Moines, Iowa	September 28, 1999 1 p.m.
Health flexible spending account, 15.13 IAB 9/22/99 ARC 9364A	North Conference Room--1st Floor Grimes State Office Bldg. Des Moines, Iowa	October 14, 1999 1 p.m.
PROFESSIONAL LICENSURE DIVISION[645]
Nursing home administrators, 141.5, 141.6, 141.11, 143.1, 143.2(2), 143.4(1) IAB 9/8/99 ARC 9339A	Board Conference Room--5th Floor Lucas State Office Bldg. Des Moines, Iowa	September 30, 1999 10 a.m. to 12 noon
SCHOOL BUDGET REVIEW COMMITTEE[289]
On-time funding for increased enrollment, ch 7 IAB 9/8/99 ARC 9311A	ICN Room--2nd Floor Grimes State Office Bldg. Des Moines, Iowa	September 28, 1999 12:30 p.m.
	All AEAs in the state of Iowa (ICN Network)	September 28, 1999 12:30 p.m.
	State Board Room--2nd Floor Grimes State Office Bldg. Des Moines, Iowa	September 28, 1999 2:30 p.m.
SECRETARY OF STATE[721]
Forms--annual agricultural landholding report, 4.2(4) IAB 9/8/99 ARC 9348A	O'Connor Conference Room Hoover State Office Bldg.--2nd Floor Des Moines, Iowa	September 28, 1999 10 to 10:30 a.m.
Constitutional amendment, 21.200(3)"a" IAB 9/22/99 ARC 9357A	Conference Room 330--3rd Floor Hoover State Office Bldg. Des Moines, Iowa	October 12, 1999 8:30 to 9:30 a.m.
Local option tax elections, 21.800(4), 21.803(4) IAB 9/8/99 ARC 9293A (See also ARC 9294A)	Office of Secretary of State Hoover State Office Bldg.--2nd Floor Des Moines, Iowa	September 28, 1999 1:30 p.m.
TRANSPORTATION DEPARTMENT[761]
Vehicle registration and certificate of title; motor vehicle and travel trailer dealers, manufacturers, distributors and wholesalers, 400.3(2), 400.4(3), 400.5(2), 400.8, 400.12, 400.28, 400.61(5), 425.3, 425.30, 425.31, 425.50, 425.53 IAB 9/8/99 ARC 9319A	Conference Room Lower Level Park Fair Mall 100 Euclid Ave. Des Moines, Iowa	September 30, 1999 10:30 a.m. (If requested)
TRANSPORTATION DEPARTMENT[761] (Cont'd)
Transfer of vehicle owned by more than one person, 400.14(1) IAB 9/8/99 ARC 9310A	Conference Room Lower Level Park Fair Mall 100 Euclid Ave. Des Moines, Iowa	September 30, 1999 10 a.m. (If requested)
Special registration plates, 401.2(1), 401.6 to 401.12, 401.16, 401.17(3), 401.19, 401.20(1), 401.21 to 401.25, 401.27 to 401.31 IAB 9/8/99 ARC 9321A	Conference Room Lower Level Park Fair Mall 100 Euclid Ave. Des Moines, Iowa	September 30, 1999 11 a.m. (If requested)
UTILITIES DIVISION[199]
U S WEST communications, IAB 8/11/99 ARC 9266A	Board Hearing Room 350 Maple St. Des Moines, Iowa	October 12, 1999 10 a.m.
Unauthorized changes of telecommunications service, 6.8, 22.23 IAB 8/11/99 ARC 9267A	Board Hearing Room 350 Maple St. Des Moines, Iowa	October 21, 1999 10 a.m.

Provider category	Basis of reimbursement	Upper limit
Nursing facilities:
2. Skilled nursing care ~~providers, including~~ provided in:
Hospital-based facilities	Prospective reimbursement. See 79.1(9)	Facility base rate per diems used on 6/30/99 inflated by 2% subject to a maximum allowable payment rate ~~at the sixtieth percentile of costs of all~~ of $346.20 per day for hospital-based skilled facilities
Freestanding facilities	Prospective reimbursement. See 79.1(9)	Facility base rate per diems used on 6/30/99 inflated by 2% subject to a maximum allowable payment rate ~~at the sixty-ninth percentile of costs of all~~ of $163.41 per day for freestanding skilled facilities

STATE OF IOWA BEFORE THE IOWA STATE UTILITIES BOARD
IN RE: THE PETITION OF (insert petitioner's name) FOR A DECLARATORY ORDER ON (insert rule number, statute, etc., for which interpretation is sought).	}	DOCKET NO.___ (completed by board) PETITION FOR DECLARATORY ORDER

STATE OF IOWA BEFORE THE IOWA STATE UTILITIES BOARD
IN RE: THE PETITION OF (insert petitioner's name) FOR A DECLARATORY ORDER ON (insert rule number, statute, etc., for which interpretation is sought).	}	DOCKET NO.___ (insert docket number) PETITION FOR INTERVENTION