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[Seal] ADMINISTRATIVE RULES REVIEW COMMITTEE
Rules Digest -- October 1997
November 10, 1997, Room #116

For further information, please contact Joe Royce, Legal Counsel,
Administrative Rules Review Committee

HIGHLIGHTS IN THIS ISSUE:
ECONOMIC DEVELOPMENT DEPARTMENT, Various new programs implemented, IAB Vol. XX, No 8, ARC 7587A thru 7593A, adopted.
ETHICS AND CAMPAIGN FINANCE DISCLOSURE, Penalties , XX IAB No. 9, ARC 7605-6, adopted.
DEPARTMENT OF HUMAN SERVICES, FIP: release of information, IAB Vol. XX, No. 8, ARC 7547A, adopted.
DEPARTMENT OF HUMAN SERVICES, Diversion & self sufficiency grants program, IAB Vol. XX, No. 8, ARC 7546A, emergency.
NATURAL RESOURCES DEPARTMENT, Deer depredation permits, IAB Vol. XX, No. 8, ARC 7574A, adopted.
PERSONNEL DEPARTMENT, Deferred compensation, IAB Vol. XX, No. 5, ARC 7425A, emergency, held over from September and October.
PUBLIC HEALTH DEPARTMENT, Lead paint hazards, IAB Vol. XX, No.9 ARC 7602A & 7603A, notice.
SOIL CONSERVATION DIVISION, Financial assistance for ag. drainage wells, IAB Vol. XX, No. 9, ARC 7601A, notice.
TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION, Access to facilities , XX IAB No. 08, ARC 7578A, notice.
DEPARTMENT OF TRANSPORTATION, Handicapped parking , XX IAB No. 09, ARC 7594A, adopted.
ECONOMIC DEVELOPMENT DEPARTMENT
9:00, Various new programs implemented, IAB Vol. XX, No 8, ARC 7587A thru 7593A, adopted.

The department completes actions of a number of rule-making proceedings from the last several months. ARC 7587 was placed under notice in July, implementing House File 368. That legislation created a training component to accompany financial assistance programs for start-up companies; the training helps provide skills for the businesspeople while the financial assistance package provides funding for the company. This program is limited to newly-created companies [three years or less}; when the owners have completed the educational component of the program, they may apply for a $5000 maximum for technical assistance and a $20,000 financial assistance package. These funds can be used either for business expenses or to leverage conventional financing.
ARC 7588 contains a minor amendment to the export trade assistance program. The change eliminates a current restriction that limited assistance to no more than two trade shows a year; under the amendment such decisions will be made on a case-by-case basis.
ARC 7589 is emergency implemented after notice--initially it was filed emergency in July. House File 724 authorized counties and cities of more than 24,000 to create "enterprise zones", lasting for up to ten years. The area may not exceed one percent of the jurisdiction, but a city may have more than one zone. Benefits for businesses located within a zone include such things as new jobs credit from withholding; sales, services, and use tax refund; investment tax credit and research activities credit. The jurisdiction may exempt from all property taxation for a period of up to ten years all or a portion of the value added to the property upon which an eligible business locates or expands in an enterprise.
Section four of the Act sets out the criteria for creating a zone; compliance must be certified by the Iowa Economic Development Board. The criteria for county eligibility is general in nature. A county must meet at least two of the following criteria:

Criteria to establish an enterprise zone in a city are somewhat different, and more specific that those established for counties; a city must meet two of the following: ARC 7590A amends the entrepreneurs with disabilities program by reducing grants from $15000 to $10000. This reduction was implemented because in the past eligible grant have exceeded available funds. ARC 7591A amends the rural innovation grants program by expanding population guidelines from 20000 to 50000.
ARC 7592A was initially published in August. This program assists communities, on a cooperative basis, to address the housing development needs in the communities in order to better position the communities for economic development or to meet housing needs resulting from other economic development efforts in the area. Assistance may be either technical or financial as set out in the department's rules.
In essence the program is designed to assist communities deal with unmet housing needs. Basically, virtually any housing-type activity is eligible: new construction, rehabilitation, or demolition to develop a housing site. The housing itself must be non-luxury single family or multiple occupancy. Applicants may be cities, counties housing or economic development organizations; no individual grant may exceed $500,000. The applicant must have a housing needs assessment, completed within the last five years and must identify a financing "gap" that exists after all other financial resources have been identified.
Lastly, ARC 7593A is implemented on an emergency basis, following an August notice. This new program was authorized by House File 655 to provide state assistance to local government in developing improvements to service delivery on the local level. Virtually any unit of local government is eligible for assistance. Assistance can be in the form of technical aid or cash, with cash grants being limited to $50,000. Eligible projects include such things as improving public access to public services or the quality of those services; developing joint projects between public and private agencies to provide service and assessing the existing services and how they meet business and residential needs.

ETHICS AND CAMPAIGN FINANCE DISCLOSURE
11:00, Penalties , XX IAB No. 9, ARC 7605-6, adopted.

House File 191 was enacted in response to federal legislation; it creates a special revolving fund to help local communities finance drinking water systems. This assistance comes as a loan. Public water systems, community water supplies and non-profit water supplies are eligible applicants. The program will be administered by the EPC and the Iowa Finance Authority. Each year the federal government will provide a varying amount of money each year as a set-aside for smaller communities. Two percent of the entire available funds can be used to provide technical assistance to communities with a population of less that 10000. 15 percent of the total can be used for water source and wellhead protection. 10 percent can be set-aside for supervision and management programs.
A point system will be used to rank eligible projects. The system will consider such factors as water quality and risk to public health, nature of the intended improvements, affordability, wellhead or source improvements and the size of the community.

DEPARTMENT OF HUMAN SERVICES
8:00, FIP: release of information, IAB Vol. XX, No. 8, ARC 7547A, adopted.

This item originally appeared as an "emergency" filing in July. Most of this filing relates to the mandatory school attendance requirements for children who have not passed the sixth grade. Section 1 of House File 597 states in part:

As a condition of eligibility for an applicant for or a recipient of assistance under this chapter, the department shall require a child's parent or other specified whose needs are included in the cash assistance grant to the child's family to cooperate with efforts to ensure children receiving assistance under this chapter complete educational requirements through the sixth grade. As a further condition of eligibility, an applicant or recipient shall provide written authorization for release of information to a school concerning the receipt of assistance and for release of information by a school concerning the child's compliance with attendance requirements.
A number of concerns have been during the notice part of the rule making; the most significant issues are the allegation the rules are overbroad and that the process lacks adequate safeguards to prevent abuse of confidentiality. Opponents first complained that the rules implementing this provision require all FIP families are required to sign this release even if they do not have children at or below the sixth grade level. The rule has been amended to eliminate this requirement Opponents also noted a similar problem is found in paragraph 41.25(8)"a", stating the release remains in effect until the assistance is canceled. This problem has also been corrected.
One remaining issue relates to the handling of information. The enabling legislation, House File 597, states in part: "The department shall implement protocols restricting information access under this section by region or other means to provide for the minimum access to information necessary to implement the purposes of this section. The department may adopt rules as necessary to administer this section." Opponents contend that the rules contain none of the confidentiality protections required by the Act; and that school children are at risk of public embarrassment because of the possibility of careless disclosure.

DEPARTMENT OF HUMAN SERVICES
8:00, Diversion & self sufficiency grants program, IAB Vol. XX, No. 8, ARC 7546A, emergency.

Pursuant to 1997 legislation the department implements two pilot projects to 1) determine the effectiveness of alternatives to traditional assistance programs; 2) increase employment opportunities; and 3) avoid FIP dependence. A total of $500,000 is available, with $100,000 being earmarked for the pilot diversion program and $400,000 for the self-sufficiency grants program.
The Pilot Diversion Program provides a voluntary alternative to ongoing cash assistance to families from FIP. The purpose is to provide immediate, short-term assistance to meet a particular need or emergency as an alternative to full-blown FIP enrollment. Assistance hopefully will postpone or prevent the need to apply for FIP. The program consists of local pilot projects at county department offices; however, the county office may work in conjunction with other local entities. Initial pilot projects shall be implemented in the following counties: Cass at $20,000; Pottawattamie at $40,000 and Woodbury at $40,000.
The Pilot Family Self-Sufficiency Grants Program is statewide and provides payment to families as part of the Promise Jobs program. Grants are available for removing an identified barrier to self-sufficiency for a particular family when it can be reasonably anticipated that the assistance will enable participant families to retain employment or obtain employment in the two full calendar months following the date of authorization of payment.
Community self-sufficiency grants establish pilot projects to identify and remove systemic or community barriers to self-sufficiency, helping multiple Promise Jobs participant families to obtain or retain employment. County department offices and local Promise Jobs service delivery regions must apply jointly to receive a community self-sufficiency grant; both are encouraged to work in conjunction with other local resources. This pilot program gives local projects flexibility to better address community-wide barriers to self-sufficiency for FIP participants such as transportation needs, unusual child care needs, language barrier programs, etc.

NATURAL RESOURCES DEPARTMENT
9:50, Deer depredation permits, IAB Vol. XX, No. 8, ARC 7574A, adopted.

The commission revises its regulations concerning the reduction of deer populations in areas where the animals cause excessive crop damage. The previous rules only provided depredation permits for horticultural losses; moreover those rules lacked sufficient detail to adequately outline the depredation program. The most significant part of this proposal is the expansion to include both agricultural and horticultural crop damage--meaning that depredation permits will be available to grain farmers as well as to nurseries or truck gardeners. A second change establishes a damage threshold of only $1500 for a permit; the current rules are silent on this point, but it was thought that extensive damage had to be demonstrated before a permit could be issued.
With limited exceptions, a depredation management plan must be developed before a permit will be issued. Commission representatives will inspect the area and develop the plan along with the landowner. Plans will normally be for a three year period, combining depredation permits along with other long-term preventative measures {e.g.: fencing} to reduce or eliminate the deer damage. Two types of depredation permits can be issued under the plan, both types are valid only on the property sustaining damage and the adjacent areas. The first is an actual license sold to hunters for use during the season. These licenses will be issued in blocks of five, up to the amount authorized in the depredation plan. Deer shooting permits allow shooting outside of the established season and are issued to the producers of high value horticultural crops and for row crop farmers in September and October; these are cases where proper damage control cannot occur during the regular hunting season. Shooting permits are issued without cost and are subject to specific limitations set out on the permit itself. The producer may keep up to two carcasses, but antlers must be turned over to the department. In all cases the carcasses must be field dressed and handled for consumption; excess carcasses must first be offered to charitable institutions, and then to the general public.

PERSONNEL DEPARTMENT
1:00, Deferred compensation, IAB Vol. XX, No. 5, ARC 7425A, emergency, held over from September and October.

For the third time the Committee meets to consider a revised deferred compensation program for state employees. Additionally, a special gubernatorial task force has now been created to examine this program; its review will last some two months with its first meeting scheduled for November 6th, 1997.
The Rules Review Committee meeting will focus on a motion made at the October meeting for two objections, action on that motion was deferred until November. Committee action on an objection requires six affirmative votes. The first portion of the proposed objection is procedurally based, contending that the emergency filing and implementation of this program constituted an abuse of the "emergency" procedures set out in Iowa Code &0167;&0167;17A.4(2) and .5(2)"b". This objection would expire the emergency filing six months after the date on which the objection was filed. In the event the validity of the emergency filing was litigated, the objection would have the additional effect of awarding court costs and attorney fees to the attacking party, in the event a court did in fact strike down the emergency filing.
The second portion of the proposal is a substantive objection, questioning the underlying statutory authority of the filing. The effect of this objection would be to reverse the burden of proof in the event the legal authority for the program was challenged in court. If litigation occurred, the department would be required to prove it had statutory authority for the program changes. If it failed to meet this burden and the rule filing was invalidated, the attacking party would recover their court costs and attorney fees.

PUBLIC HEALTH DEPARTMENT
No Representative
8:00, Lead paint hazards, IAB Vol. XX, No.9 ARC 7602A & 7603A, notice.

The department proposes two filings relating to the handling of lead paint hazards. The first proposal is a notification requirement warning residents of nearby lead hazards during a renovation or remodeling. The process is mandated in House File 335. Under the Act anyone performing renovation, remodeling, or repainting services of "targeted" housing, for compensation, must provide an approved lead hazard information pamphlet to the owner and occupant of the housing prior to commencing operation. "Targeted" housing means housing constructed prior to 1978 in which at least one child, six years of age or less, resides or is expected to reside.
The second filing, ARC 7603 amends existing rules relating to the certification of persons who abate lead problems. Iowa law currently makes certification voluntary until the Iowa program attains federal EPC authorization. These proposed amendments are intended to bring Iowa's regulations into compliance with the federal mandate. Educational requirements are significantly increased. Lead inspectors and elevated blood lead (EBL) inspectors must have either:

Lead abatement contractors must have either one year of experience or two years of experience in building trades. Visual risk assessors must have either an associate's degree or a high school diploma and one year of related or be an industrial hygienist, professional engineer, registered architect, registered sanitarian, registered environmental health specialist, or registered nurse
Starting in March, 1999 applicants must complete a detailed training program set out in the rules. Prior to this date the training course is 24 hours, with a minimum of 8 hours devoted to "hands on" training; starting in 1999 the course must be 40 hours, with 12 hours devoted to "hands on" training. For persons doing lead blood screening, education is raised from a current 32 hours up to 48 hours. All required courses conclude with an examination where the applicant must score at least 80%.
The rules also contain detailed performance standards for each profession: inspectors, blood inspectors and contractors. The rules provide virtual step-by-step detail for each operation.

SOIL CONSERVATION DIVISION
10:30, Financial assistance for ag. drainage wells, IAB Vol. XX, No. 9, ARC 7601A, NOTICE.

Newly enacted Senate File 473 provides in part that the owner of land which is within a designated agricultural drainage well area must close each agricultural drainage well located on the land by December 31, 1999. Additionally, by December 31st, 1988 landowners in these drainage well areas must prevent surface water from draining into the agricultural drainage well. This includes:

This mandate applies to wells located in areas where there is located an anaerobic lagoon or earthen manure storage basin required to obtain a construction permit by the department of natural resources.
The owner must close the agricultural drainage well in a manner using materials and according to specifications established by the Department of Natural. To assist landowners the Act also requires the Soil Conservation Division to provide financial assistance to landowners in closing certain agricultural drainage wells and developing alternative drainage outlets.
$3,000,000 is available over the next two years; with these funds the division is to provide cost-share moneys to persons closing agricultural drainage wells located within designated agricultural drainage well areas, and alternative drainage systems which are part of a drainage district in accordance with the priority system. 75% of the cost may come from the fund, with the balance from the land owner. Eligible costs under the program include: The amount of moneys allocated in cost-share payments to a person qualifying under the program cannot exceed seventy-five percent of the estimated cost of installing the alternative drainage system or seventy-five percent of the actual cost of installing the alternative drainage system, whichever is less.

TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION
11:20, Access to facilities , XX IAB No. 08, ARC 7578A, NOTICE.

Earlier versions of the dial-up access rules were reviewed at the committee's May and August meeting. This issue has been particularly contentious; so far the only development has been a commission imposed moratorium on any additional internet access and a commitment by the commission to review ways to use private providers to expand local internet access. In essence, under these rules remote access is prohibited to library patrons and K-12 students while allowing access to the following users:

Newly added to this proposal are requirements that authorized are responsible to protect against unauthorized access. Each user who maintains a modem or a serve must install software and directory procedures to prevent unauthorized access. This mandate is subject to review by the commission but apparently the software and procedures do not require initial approval.
A more significant addition appears in rule 16.2. Under this proposal an authorized user may allow other authorized users or members of the general public to use a modem to access an authorized user's server or modem pool to: In plain English this provision deals with the situation where a member of the public electronically contacts a government or other entity which is an authorized user. Handling that contact and providing the requested service or information electronically may automatically involve the use of the ICN. For example, an exchange of E-mail messages with an authorized user may constitute use of the ICN, which carries the E-mail for the authorized user, delivering information downloaded from the authorized users' internet connection.

DEPARTMENT OF TRANSPORTATION
No Representative
11:20, Handicapped parking , XX IAB No. 09, ARC 7594A, adopted.

House File 688 and 692, made several changes to the handicapped parking law, all designed to make the process more user friendly and make the permits more readily available:


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