Bulletin 08-28-2019

Front matter not included
ARC 4628CHuman Services Department[441]Notice of Intended Action

Proposing rule making related to brain injury waiver and providing an opportunity for public comment

    The Human Services Department hereby proposes to amend Chapter 77, “Conditions of Participation for Providers of Medical and Remedial Care,” Chapter 78, “Amount, Duration and Scope of Medical and Remedial Services,” and Chapter 83, “Medicaid Waiver Services,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 249A.3.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 249A.3.Purpose and Summary    The Department is clarifying the brain injury (BI) waiver provider qualifications to align with the services and supports that are rendered by qualified brain injury professionals and accredited brain injury rehabilitation programs. The Department began evaluating core standardized assessments for the BI waiver in 2011 as part of the Balancing Incentive Payment Program (BIPP), and the Iowa Medicaid Enterprise (IME) adopted the interRAI Home Care Assessment Tool for the purposes of determining level of care for BI waiver eligibility. The Department adopted this tool recognizing that an additional or alternative tool would need to be identified which would address the cognitive disabilities related to brain injury. The primary goal of moving forward with adoption of the most current version of the Mayo-Portland Adaptability Inventory Scale is to fulfill the purposes of a valid and appropriate assessment of need, possible allocation of resources and comprehensive community-based, person-centered service planning for both the HCBS brain injury waiver and the community-based neurobehavioral rehabilitation service.Fiscal Impact     This rule making has a fiscal impact of $100,000 annually or $500,000 over five years to the State of Iowa. The fiscal impact for family training and counseling and behavior programming providers cannot be determined at this time because the number of new providers that will enroll and the number of members who will access the service are not known. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217). Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Nancy Freudenberg Iowa Department of Human Services Hoover State Office Building, Fifth Floor 1305 East Walnut Street Des Moines, Iowa 50319-0114 Email: appeals@dhs.state.ia.usPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Adopt the following new paragraph 77.39(21)"f":    f.    Agencies which are accredited by a department-approved, nationally recognized accreditation organization as specialty brain injury rehabilitation service providers.

    ITEM 2.    Adopt the following new subparagraphs 77.39(23)"b" and 77.39(23)"b":    (6)   Agencies which are accredited by a department-approved, nationally recognized accreditation organization as specialty brain injury rehabilitation service providers.    (7)   Individuals who meet the definition of “qualified brain injury professional” as set forth in rule 441—83.81(249A).

    ITEM 3.    Amend subrule 77.52(3) as follows:    77.52(3) Provider standards.  All community-based neurobehavioral rehabilitation service providers shall meet the following criteria:     a.    The organization meets the outcome-based standards for community-based neurobehavioral rehabilitation service providers as follows:    (1)   The organization shall provide high-quality supports and services to members.    (2)   The organization shall have a defined mission commensurate with members’ needs, desires, and abilities.    (3)   The organization shall be fiscally sound and shall establish and maintain fiscal accountability.    (4)   The program administrator shall be a certified brain injury specialist trainer (CBIST) through the Academy of Certified Brain Injury Specialists or a certified brain injury specialist under the direct supervision of a CBIST or a qualified brain injury professional as defined in rule 441—83.81(249A) with additional certification as approved by the department. The administrator shall be present in the assigned location for 25 hours per week. In the event of an absence from the assigned location exceeding four weeks, the organization shall designate a qualified replacement to act as administrator for the duration of the assigned administrator’s absence.     (5)   A minimum of 75 percent of the organization’s administrative and direct care personnel shall meet one of the following criteria:
  1. Have a bachelor’s degree in a human services-related field;
  2. Have an associate’s degree in human services with two years of experience working with individuals with brain injury;
  3. Be an individual who is in the process of seeking a degree in the human services field with two years of experience working with individuals with brain injury; or
  4. Be a certified brain injury specialist(CBIS) certified through the Academy for the Certification of Brain Injury Specialists (ACBIS) or have othernationally recognized brain injury certification as approved by the department.
    (6)   The organization shall have qualified personnel trained in the provision of direct care services to people with a brain injury. The training must be commensurate with the needs of the members served. Employees shall receive training and demonstrate competency in performing assigned duties and in all interactions with members, including but not limited to:
  1. Promotion of a program structure and support for persons served so they can re-learn or regain skills for community inclusion and access.
  2. Compensatory strategies to assist in managing ADLS (activities of daily living).
  3. Quality of life issues.
  4. Behavioral supports and identification of antecedent triggers.
  5. Health and medication management.
  6. Dietary and nutritional programming.
  7. Assistance with identifying and utilizing assistive technology.
  8. Substance abuse and addiction issues.
  9. Self-management and self-interaction skills.
  10. Flexibility in programming to meet members’ individual needs.
  11. Teaching adaptive and compensatory strategies to address cognitive, behavioral, physical, psychosocial and medical needs.
  12. Community accessibility and safety.
  13. Household maintenance.
  14. Service support to the member’s family or support system related to the member’s neurobehavioral care.
    b.    The organization provides training and supports to its personnel. Training shall be provided before direct service provision and must be ongoing. At a minimum the training includes the following:    (1)   Completion of the department-approved brain injury training modules.    (2)   Member rights.    (3)   Confidentiality and privacy.    (4)   Dependent adult and child abuse prevention and mandatory reporter training.    (5)   Individualized rehabilitation treatment plans.    (6)   Major mental health disorder basics.    c.    Within 30 days of commencement of direct service provision, employees shall completenationally recognized cardiopulmonary resuscitation (CPR) trainingcertification, a first-aid course, fire prevention and reaction training and universal precautions training. These training courses shall be completed no less than annually, with the exception of CPR certification, which must be renewed prior to expiration of the certification.    d.    Within the first six months of commencement of direct service provision, employees shall complete training required by 441—subparagraph 78.54(3)“a”(6)subparagraph 77.52(3)“a”(6).    e.    Within 12 months of the commencement of direct service provision, employees shall complete a department-approved, nationally recognized certified brain injury specialist training. A majority of eligible employees within 12 months of the commencement of direct service provision shall be CBISs certified through ACBIS or have other nationally recognized brain injury certification as approved by the department.    f.    The organization shall have in place an outcome management system which measures the efficiency and effectiveness of service provision, including members’ preadmission location of service, length of stay, discharge location, reason for discharge, member and stakeholder satisfaction, and access to services.     g.    The organization shall have in place a systematic, organization-wide, planned approach to designing, measuring, evaluating, and improving the level of its performance. The organization shall be required to:    (1)   Measure and analyze organizational activities and services quarterly.    (2)   Conduct satisfaction surveys with members, family members, employees and stakeholders, and share the information with the public.     (3)   Conduct an internal review of member service records at regular intervals.     (4)   Track major and minor incident data according to subrule 77.37(8) and unexpected occurrences involving death or serious physical or psychological injury, or the risk thereof; and analyze the data to identify trends annually to ensure the health and safety of members served by the organization.    (5)   Continuously identify areas in need of improvement.    (6)   Develop a plan to address the identified areas in need of improvement.    (7)   Implement the plan, document the results, and report to the governing body annually.    h.    The organization shall have in place written policies and procedures and a personnel training program for the identification and reporting of child and dependent adult abuse to the department pursuant to 441—Chapters 175 and 176.    i.    The organization’s governing body shall have an active role in the administration of the organization.    j.    The organization’s governing body shall receive and use input from local community stakeholders, members participating in services, and employees and shall provide oversight that ensures the provision of high-quality supports and services to members.    k.    The organization shall implement the following outcome-based standards for rights and dignity:     (1)   Members are valued.    (2)   The member and the member’s treatment team mutually develop an individualized service plan (ISP) that takes into account the member’s individual strengths, barriers and interests. The service plan shall include goals which are based on the member’s need for services and shall address the neurobehavioral challenges and environmental needs as identified in the member’s individual standardized comprehensive functional neurobehavioral assessment.    (3)   The member and the member’s treatment team evaluate the member’s progress towards treatment goals regularly and no less than quarterly. Treatment plans are reviewed regularly, but not less than quarterly, and are revised as the member’s status or needs change to reflect the member’s progress and response to treatment.    (4)   The member and the member’s legal representative have the right to file grievances regarding the provider’s implementation of the organizational standards, or its employee’s or contractual person’s action which affects the member. The provider shall provide to members the policies and procedures for member grievances and appeals at the commencement of services and annually thereafter.    (5)   When a member requires any restrictive interventions, the interventions will be implemented in accordance with 481—subrule 63.23(4), rule 481—63.33(135C), and rule 481—63.37(135C)rules 481—63.21(135C), 481—63.27(135C), and 481—63.28(135C). When a member has a guardian or legal representative, the guardian or legal representative shall provide informed consent to treat and consent for any restrictive interventions that may be required to protect the health or safety of the member. Restrictive interventions include but are not limited to:
  1. Restraint, including chemical restraint, manual restraint or mechanical restraint;
  2. Alarms added to a member’s natural environment including doors, windows, refrigerators, cabinets, and other home appliances and fixtures;
  3. Exclusionary time out;
  4. Intensive staffing for control of behavior;
  5. Limited access or contingency access to preferred items or activities naturally available in the member’s environment;
  6. Reprimand;
  7. Response cost; and
  8. Use of psychotropic medications to control the occurrence of an unwanted behavior.
    (6)   Members receive individualized services.    (7)   Members or their legal representatives provide written consent regarding which personal information is shared and with whom.    (8)   Members receive assistance with accessing financial management services as needed.    (9)   Members receive assistance with obtaining preventive, appropriate and timely medical and dental care.    (10)   The member’s living environment is reasonably safe and located in the community.    (11)   The member’s desire for intimacy is respected and supported.

    ITEM 4.    Amend subrule 78.56(2) as follows:    78.56(2) Member eligibility.  To be eligible to receive community-based neurobehavioral rehabilitation services, a member shall meet the following criteria:    a.    Brain injury diagnosis.To be eligible for community-based neurobehavioral rehabilitation services, the member must have a brain injury diagnosis as set forth in rule 441—83.81(249A).    b.    Risk factors.The member has the following post-brain injury risk factors:    (1)   The member is exhibiting neurobehavioral symptoms in such frequency or severity that the member has undergone or is currently undergoing treatment more intensive than outpatient care and is currently hospitalized, institutionalized, incarcerated or homeless or is at risk of hospitalization, institutionalization, incarceration or homelessness; or    (2)   The member has a history of presenting with neurobehavioral or psychiatric symptoms resulting in at least one episode that required professional supportive care more intensive than outpatient care more than once in a lifetime (e.g., emergency services, alternative home care, partial hospitalization, or inpatient hospitalization).    c.    Need for assistance.The member exhibits neurobehavioral symptoms in such frequency, severity or intensity that community-based neurobehavioral rehabilitation is required.    d.    Needs assessment.The member shall have a standardized comprehensive functional neurobehavioral assessment reviewed oran assessment of need completed prior to admission. The member shall have the Mayo-Portland Adaptability Inventory (MPAI) assessment completed by a licensed neuropsychologist, neurologist, M.D., or D.Oqualified trained assessor. The neurobehavioral assessmentof need shall document the member’s need for community-based neurobehavioral rehabilitation, and the medical services unit of the Iowa Medicaid enterpriseor the member’s managed care organization has determined that the member is in need of specialty neurobehavioral rehabilitation services.    e.    Standards for assessment.Each member will have had a department-approved, standardized comprehensive functional neurobehavioralthe MPAI assessment completed within the 90 days prior to admission. EachIn addition to the functional assessment, the needs assessment willhave been completed and will include the assessment of a member’s individual physical, emotional, cognitive, medical and psychosocial residuals related to the member’s brain injury, whichand must include the following:     (1)   Identification of the neurobehavioral needs that put the member at risk, including but not limited to verbal aggression, physical aggression, self-harm, unwanted sexual behavior, cognitive and or behavioral perseveration, wandering or elopement, lack of motivation, lack of initiation or other unwanted social behaviors not otherwise specified.     (2)   Identification of triggers of unwanted behaviors and the member’s ability to self-manage the member’s symptoms.    (3)   The member’s rehabilitation and medical care history to include medication history and status.    (4)   The member’s employment history and the member’s barriers to employment.    (5)   The member’s dietary and nutritional needs.    (6)   The member’s community accessibility and safety.    (7)   The member’s access to transportation.     (8)   The member’s history of substance abuse.    (9)   The member’s vulnerability to exploitation and history of risk of exploitation.    (10)   The member’s history and status of relationships, natural supports and socialization.    f.    Emergency admission.In the event that emergency admission is required, the assessment shall be completed within ten calendar days of admission.

    ITEM 5.    Amend rule 441—83.81(249A), definition of “Qualified brain injury professional,” as follows:        "Qualified brain injury professional" means one of the following who meets the educational and licensure or certification requirements for the profession as required in the state of Iowa and who has two years’ experience working with people living with a brain injury: a psychologist; psychiatrist; physician; physician assistant; registered nurse; certified teacher;licensed clinical social worker; mental health counselor; physical, occupational, recreational, or speech therapist; or a person with a bachelor of arts or science degree inhuman services, social work, psychology, sociology, or public health or rehabilitation servicesplus 4,000 hours of direct experience with people living with a brain injury.

    ITEM 6.    Amend paragraph 83.82(1)"f" as follows:    f.    Be determined by the IME medical services unit as in need of intermediate care facility for persons with an intellectual disability (ICF/ID), skilled nursing, or ICF level of care based on information submitted on a completed Form 470-4694 for children aged 3 and under, the interRAI - Pediatric Home Care (PEDS-HC) for those aged 4 to 20, or the interRAI - Home Care (HC) for those aged 21 and over, the most recent version of the Mayo-Portland Adaptability Inventory (MPAI), and other supporting documentation as relevant. Form 470-4694, the interRAI - Pediatric Home Care (PEDS-HC), and the interRAI - Home Care (HC), Form 470-4694, and Form 470-5572, the Mayo-Portland Adaptability Inventory (MPAI), are available on request from themember’s managed care organization or the IME medical services unit. Copies of the completed information submission tool for an individual are available to that individual from the individual’s case manager or managed care organization.

    ITEM 7.    Amend subrule 83.82(4) as follows:    83.82(4) Securing a state payment slot.      a.    The county department office shall enter all waiver applications into the individualized services information system (ISIS) to determine if a payment slot is available for all new applicants for the HCBS BI waiver program.    (1)   For applicants not currently receiving Medicaid, the county department office shall make the entry by the end of the fifth working day after receipt of a completed Form 470-2927 or 470-2927(S), Health Services Application, or within five working days after receipt of disability determination, whichever is later.    (2)   For current Medicaid members, the county department office shall make the entry by the end of the fifth working day after receipt of a written request signed and dated by the waiver applicant.    b.    If no payment slot is available, the department shall enter the applicant on a waiting list according to the following:    (1)   Applicants not currently eligible for Medicaid shall be entered on the waiting list on the basis of the date a completed Form 470-2927 or 470-2927(S), Health Services Application, is received by the department or upon receipt of disability determination, whichever is later. Applicants currently eligible for Medicaid shall be added to the waiting list on the basis of the date the applicant requests HCBS BI program services.    (2)   In the event that more than one application is received at one time, applicants shall be entered on the waiting list on the basis of the month of birth, January being month one and the lowest number.    c.    Persons who do not fall within the available slots shall have their applications rejected but their names shall be maintained on the waiting list. As slots become available, persons shall be selected from the waiting list to maintain the number of approved persons on the program based on their order on the waiting list.    d.    Applicants who currently reside in a community-based neurobehavioral rehabilitation residential setting, an intermediate care facility for persons with an intellectual disability (ICF/ID), a skilled nursing facility, or an ICF and have resided in that setting for six or more months may request a reserved capacity slot through the brain injury waiver.    (1)   Applicants shall be allocated a reserved capacity slot on the basis of the date the request is received by the income maintenance worker or the waiver slot manager.    (2)   In the event that more than one request for a reserved capacity slot is received at one time, applicants shall be allocated the next available reserved capacity slot on the basis of the month of birth, January being month one and the lowest number.    (3)   Persons who do not fall within the available reserved capacity slots shall have their names maintained on the reserved capacity slot waiting list. As reserved capacity slots become available at the beginning of the next waiver year, persons shall be selected from the reserved capacity slot waiting list to utilize the number of approved reserved capacity slots based on their order on the waiting list.    e.    The department shall reserve a set number of funding slots each waiver year for emergency need for all applicants who are on the waiting list maintained by the state on July 1, 2019, and for all new applications received on or after July 1, 2019. Applicants may request an emergency need reserved capacity slot by submitting the completed Home- and Community-Based Services (HCBS) Brain Injury Waiver Emergency Need Assessment, Form 470-5583, to the IME medical services unit.     (1)   Emergency need criteria are as follows:    1.   The usual caregiver has died or is incapable of providing care, and no other caregivers are available to provide needed supports.     2.   The applicant has lost primary residence or will be losing housing within 30 days and has no other housing options available.    3.   The applicant is living in a homeless shelter, and no alternative housing options are available.    4.   There is founded abuse or neglect by a caregiver or others living within the home of the applicant, and the applicant must move from the home.    5.   The applicant cannot meet basic health and safety needs without immediate supports.    (2)   Urgent need criteria are as follows:    1.   The caregiver will need support within 60 days in order for the applicant to remain living in the current situation.    2.   The caregiver will be unable to continue to provide care within the next 60 days.    3.   The caregiver is 55 years of age or older and has a chronic or long-term physical or psychological condition that limits the ability to provide care.    4.   The applicant is living in temporary housing and plans to move within 31 to 120 days.    5.   The applicant is losing permanent housing and plans to move within 31 to 120 days.    6.   The caregiver will be unable to be employed if services are not available.    7.   There is a potential risk of abuse or neglect by a caregiver or others within the home of the applicant.    8.   The applicant has behaviors that put the applicant at risk.    9.   The applicant has behaviors that put others at risk.    10.   The applicant is at risk of facility placement when needs could be met through community-based services.    (3)   Applicants who meet an emergency need criterion shall be placed on the emergency reserved capacity priority waiting list based on the total number of criteria in subparagraph 83.82(4)“e”(1) that are met. If applicants meet an equal number of criteria, the position on the waiting list shall be based on the date of application and the age of the applicant. The applicant who has been on the waiting list longer shall be placed higher on the waiting list. If the application date is the same, the older applicant shall be placed higher on the waiting list.    (4)   Applicants who meet an urgent need criterion shall be placed on the priority waiting list after applicants who meet emergency need criteria. The position on the waiting list shall be based on the total number of criteria in subparagraph 83.82(4)“e”(2) that are met. If applicants meet an equal number of criteria, the position on the waiting list shall be based on the date of application and the age of the applicant. The applicant who has been on the waiting list longer shall be placed higher on the waiting list. If the application date is the same, the older applicant shall be placed higher on the waiting list.    (5)   Applicants who do not meet emergency or urgent need criteria shall remain on the waiting list, based on the date of application. If the application date is the same, the older applicant shall be placed higher on the waiting list.    (6)   Applicants shall remain on the waiting list until a payment slot has been assigned to them for use, they withdraw from the list, or they become ineligible for the waiver. If there is a change in an applicant’s need, the applicant may contact the local department office and request that a new emergency needs assessment be completed. The outcome of the assessment shall determine placement on the waiting list as directed in this subrule.    f.    To maintain the approved number of members in the program, persons shall be selected from the waiting list as payment slots become available, based on their priority order on the waiting list.    (1)   Once a payment slot is assigned, the department shall give written notice to the person within five working days.    (2)   The department shall hold the payment slot for 30 days for the person to file a new application. If an application has not been filed within 30 days, the slot shall revert for use by the next person on the waiting list, if applicable. The person originally assigned the slot must reapply for a new slot.
ARC 4627CHuman Services Department[441]Notice of Intended Action

Proposing rule making related to managed care passive enrollment and providing an opportunity for public comment

    The Human Services Department hereby proposes to amend Chapter 86, “Healthy and Well Kids in Iowa (HAWK-I) Program,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 514I.4.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 514I.Purpose and Summary    The proposed amendments add language to reflect the Department’s implementation of a passive managed care enrollment process. HAWK-I-eligible individuals will be passively enrolled with a managed care plan; however, the eligibility effective date will remain consistent with current practices. The proposed amendments also add necessary definitions, revise the time frame for a decision on eligibility, clarify policy on when a waiting period does not apply, revise premium payment language, eliminate the lock-out period for premium nonpayment, make technical changes, and remove outdated program language.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217). Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Nancy Freudenberg Iowa Department of Human Services Hoover State Office Building, Fifth Floor 1305 East Walnut Street Des Moines, Iowa 50319-0114 Email: appeals@dhs.state.ia.usPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Adopt the following new definitions of “Enrollment broker” and “Passive enrollment process” in rule 441—86.1(514I):        "Enrollment broker" shall mean the entity the department uses to enroll eligible children with a managed care organization. The enrollment broker must be conflict-free and meet all applicable requirements of state and federal law.        "Passive enrollment process" shall mean the process by which the department assigns a child to a participating health or dental plan and which seeks to preserve existing provider-enrollee relationships, if possible. In the absence of existing relationships, the process ensures that members are equally distributed among all available health or dental plans.

    ITEM 2.    Amend subrule 86.3(8) as follows:    86.3(8) Time limit for decision.  Decisions regarding the applicant’s eligibility to participate in the HAWK-I program shall be made within ten45 working days from the date of receiving the completed application and all necessary information and verification unless the application cannot be processed for reasons beyond the control of the department or third-party administrator. Day one of the ten-day45-day period starts the first working day following the date of receipt of a completed application and all necessary information and verification.

    ITEM 3.    Amend subrule 86.5(1) as follows:    86.5(1) Initial application.  Coverage for a child who is determined eligible for the HAWK-I program on the basis of an initial application for either HAWK-I or Medicaid shall be effective the first day of the month following the month in which the application is filed, regardless of the day of the month the application is filed. However, when the child does not meet the provisions of paragraph 86.2(4)“a,” coverage shall be effective the first day of the month following the month in which health insurance coverage is lost. Also, a one-month waiting period shall be imposed for a child who is subject to a monthly premium pursuant to paragraph 86.8(2)“c” when the child’s health insurance coverage ended in the month of application. Exceptions: A waiting period shall not be imposed if any of the following conditions apply:    a.    The child is moving from Medicaid to HAWK-I.    b.    The child has a medical condition that, without medical care, would cause serious disability, loss of function, or death.    c.    The cost of health insurance coverage for the child exceeds 5 percent of the family’s gross income. The cost of health insurance for the child shall be the difference between the premium for coverage with and without the child.    d.    The health insurance was provided through an individual plan.    e.    The child’s health insurance coverage was lost due to:    (1)   Domestic violence.    (2)   Divorce or death of a parent.    (3)   An involuntary loss of employment that qualified the parent for dependent coverage, including but not limited to layoff, business closure, reduction in hours, or termination.    (4)   A job change to a new employer that does not offer the parent dependent coverage or that requires a waiting period before children can be enrolled in dependent coverage.    (5)   Utilization of the maximum lifetime coverage amount.    (6)   Expiration of coverage under COBRA.    (7)   Discontinuation of dependent coverage by the parent’s employer.    (8)   A reason beyond the control of the parent, such as a serious illness of the parent, fire, flood, or natural disaster.    f.    The child’s parent is determined eligible for advance payment of the premium tax credit for enrollment in a qualified health plan through the Health Insurance Marketplace because the employer-sponsored insurance in which the family was enrolled is determined unaffordable in accordance with 26 CFR 1.36B-2(c)(3)(v).    g.    The cost of family coverage that includes the child exceeds 9.5 percent of the annual household income.

    ITEM 4.    Amend rule 441—86.6(514I) as follows:

441—86.6(514I) Selection of a plan.  At the time of initial application, if there is more than one participating health or dental plan available in the child’s county of residence, the applicant shall select the health or dental plan in which the applicant wishes to enroll as part of the eligibility process.Upon the child’s eligibility effective date, the child shall be assigned to a health or dental plan using the department’s passive enrollment process. The enrollee may change plans only at the time of the annual review unless the provisions of subrule 86.7(1) or paragraph 86.6(2)“a”86.6(1)“a” or subrule 86.6(2) apply. The applicant may designate the plan choice verbally or in writing. Form 470-3574, Selection of Plan, may be used for this purpose but is not required.    86.6(1) Period of enrollment.  Once enrolled in a health or dental plan, the child shall remain enrolled in the selected health or dental plan for a period of 12 months.    a.    Exceptions.A child may be enrolled in a plan for less than 12 months if:    (1)   The child is disenrolled in accordance with the provisions of rule 441—86.7(514I). If a child is disenrolled from the health or dental plan and subsequently reapplies before the end of the original 12-month enrollment period, the child shall be enrolled in the health or dental plan from which the child was originally disenrolled unless the provisions of subrule 86.7(1) apply.    (2)   The child is added to an existing enrollment. When a family requests to add an eligible child, the child shall be enrolled for the months remaining in the current enrollment period.    (3)   A request to change plans is accepted in accordance with paragraphs 86.6(2)“b” and “c.”86.6(1)“b.”    b.    Request to change plan.An enrollee may ask to change the health or dental planeither verbally or in writing to the enrollment broker:    (1)   Within 90 days following the date the initial enrollment was sent to the health or dental plan regardless of the reason for the plan change or whether the original health or dental plan was selected by the applicant or was assigned in accordance with subrule 86.6(3)of the enrollee’s initial enrollment with the health or dental plan for any reason.    (2)   At any time for cause. “Cause” as defined in 42 CFR 438.56(d)(2) as amended to May 13, 2010May 6, 2016, includes, but is not limited to:
  1. The enrollee moves out of the plan’s service area.
  2. Because of moral or religious objections, the plan does not cover the services the enrollee seeks.
  3. The enrollee needs related services (for example, a cesarean section and a tubal ligation) to be performed at the same time, not all related services are available within the network, and the enrollee’s primary care provider or another provider determines that receiving the services separately would subject the enrollee to unnecessary risk.
  4. Other reasons including but not limited to poor quality of care, lack of access to services covered under the contract, or lack of access to providers experienced in dealing with the enrollee’s health care needs.
All approved changes shall be made prospectively and shall be effective no later than the first day of the second month beginning after the date on which the change request is received.
    c.    Response to request.    (1)   If the enrollee has not requested to change health or dental plans within 90 days following the date the initial enrollment was sent to the health or dental plan and it is determined that cause does not exist, the request to change plans shall be denied.    (2)   All approved changes shall be made prospectively and shall be effective on the first day of the month following the month in which the request was made.
    86.6(2) Failure to select a health or dental plan.  When more than one health or dental plan is available, if the applicant fails to select a health or dental plan within ten working days of the written request to make a selection, the third-party administrator shall select the health or dental plan and notify the family of the enrollment. The third-party administrator shall select the plan on a rotating basis to ensure an equitable distribution between participating health and dental plans.    86.(3) 86.6(2) Child moves from the service area.  The child may be disenrolled from the health or dental plan when the child moves to an area of the state in which the health or dental plan does not have a provider network established. If the child is disenrolled, the child shall be enrolled in a participating health or dental plan in the new location. The period of enrollment shall be the number of months remaining in the original certification period.    86.(4) 86.6(3) Change at annual review.  If more than one health or dental plan is available at the time of the annual review of eligibility, the family may designate another plan either verbally or in writingto the enrollment broker. Form 470-3574, Selection of Plan, may be used for this purpose. The child shall remain enrolled in the current health or dental plan if the family does not notify the third-party administratorenrollment broker of a new health or dental plan choice by the end of the current 12-month enrollment period.

    ITEM 5.    Amend subrule 86.7(3) as follows:    86.7(3) Nonpayment of premiums.  The child shall be canceled from the program as of the first day of the month in which premiums are not paid in accordance with the provisions of subrules 86.8(3), 86.8(4) and 86.8(5), unless premiums are subsequently received in accordance with the grace period provisions of subrule 86.8(4).

    ITEM 6.    Amend rule 441—86.8(514I) as follows:

441—86.8(514I) Premiums and copayments.      86.8(1) Income considered.  The income considered in determining the premium amount shall be the family’s countable income using the modified adjusted gross income methodology.    86.8(2) Premium amount.  Except as specified for supplemental dental-only coverage in subrule 86.20(3), premiums under the HAWK-I program shall be assessed as follows:    a.    No premium is charged if:    (1)   The eligible child is an American Indian or Alaskan Native; or    (2)   The family’s countable income is less than 181 percent of the federal poverty level for a family of the same size.    b.    If the family’s countable income is equal to or exceeds 181 percent of the federal poverty level for a family of the same size but does not exceed 242 percent of the federal poverty level for a family of that size, the premium is $10 per child per month with a $20 monthly maximum per family.    c.    If the family’s countable income is equal to or exceeds 243 percent of the federal poverty level for a family of the same size, the premium is $20 per child per month with a $40 monthly maximum per family.    86.8(3) Due date.      a.    Payment upon initial application.“Initial application” means the first program application or a subsequent application that is not a renewal. Upon approval of an initial application, the first month for which a premium is due is the third month following the month of decision. The due date of the first premium shall be the fifth day of the second month following the month of decision.    b.    Payment upon renewal.“Renewal” means any application used to establish ongoing eligibility, without a break in coverage, for any enrollment period subsequent to an enrollment period established by an initial application.    (1)   Upon approval of a renewal, the first month for which a premium is due is the first month of the enrollment period. The premium for the first month of the enrollment period shall be due by the fifth day of the month before the month of coverage or the tenth business day following the date of decision, whichever is later.    (2)   All premiums due must be paid before the child will be enrolled for coverage. When the premium is received, the third-party administratordepartment shall notify the health and dental plans of the enrollment.    c.    Subsequent payments.All subsequent premiums are due by the fifth day of each month for the next month’s coverage and must be postmarked no later than the last day of the month before the month of coverage. Premiums may be paid in advance (e.g., on a quarterly or semiannual basis) rather than a monthly basis.    d.    Holiday or weekend.When the premium due date falls on a holiday or weekend, the premium shall be due on the first business day following the due date.    86.8(4) Grace period.  A grace period shall be allowed on any monthly premium not received as prescribed in paragraph 86.8(3)“c.” The grace period shall be the coverage month for which the premium is duemonth immediately following the last month for which the premium has been paid.    a.    Failure to submit a premium by the last calendar day of the grace period shall result in disenrollment.    b.    If the premiumfor the grace period and the premium for the following month’s coverage is subsequently receivedwithin 45 calendar days following the last calendar day of the grace period, coverage will be reinstated if the premium was postmarked or otherwise paid:, effective the first day of the calendar month following the grace period, without the need to reapply for coverage.    (1)   In the grace period, or    (2)   In the 14 calendar days following the grace period.    86.8(5) Method of premium payment.  Premiums may be submitted in the form of cash, personal checks, electronic funds transfers (EFT), or other methods established by the third-party administratordepartment.    86.8(6) Failure to pay premium.  Failure to pay the premium in accordance with subrules 86.8(3) and 86.8(5) shall result in cancellation from the program unless the grace period provisions of subrule 86.8(4) apply. Once a child is canceled from the program due to nonpayment of premiums, the family must reapply for coverage.    86.8(7) Copayment.  There shall be a $25 copayment for each emergency room visit if the child’s medical condition does not meet the definition of emergency medical condition.Exception: A copayment shall not be imposed when family income is less than 181 percent of the federal poverty level for a family of the same size or when the child is an eligible American Indian or Alaskan Native.    86.8(8) Program lock-out.  A child who has been disenrolled from the program due to nonpayment of premiums shall be locked out of the program until the arrearage is paid in full or for a period not to exceed 90 days, whichever occurs first.    a.    Failure to pay the unpaid premiums shall result in denial of the application if less than 90 days has elapsed since the effective date of disenrollment. Exception: The unpaid premium obligation shall be reduced to zero if upon reapplication a premium would not be assessed because the household’s income is less than 150 percent of the federal poverty level.    b.    If the arrearage is not paid within 24 months of failing to pay a premium, the debt shall be expunged and shall no longer be owed.

    ITEM 7.    Amend subrule 86.20(3) as follows:    86.20(3) Premiums.  Premiums for participation in the supplemental dental-only plan are assessed as follows:    a.    No premium is charged to families who meet the provisions of subparagraph 86.8(2)“a”(1) or to families whose countable income is less than or equal to 167 percent of the federal poverty level for a family of the same size using the modified adjusted gross income methodology.    b.    If the family’s countable income is equal to or exceeds 167168 percent of the federal poverty level but does not exceed 203 percent of the federal poverty level for a family of the same size, the premium is $5 per child per month with a $10 monthly maximum per family.    c.    If the family’s countable income exceeds 203 percent of the federal poverty level but does not exceed 254 percent of the federal poverty level for a family of the same size, the premium is $10 per child per month with a $15 monthly maximum per family.    d.    If the family’s countable income exceeds 254 percent of the federal poverty level for a family of the same size, the premium is $15 per child per month with a $20 monthly maximum per family.    e.    If the family includes uninsured children who are eligible for both medical and dental coverage under HAWK-I and insured children who are eligible only for dental coverage, the premium shall be assessed as follows:    (1)   The total premium shall be no more than the amount that the family would pay if all the children were eligible for both medical and dental coverage.    (2)   If the family has one child eligible for both medical and dental coverage and one child eligible for dental coverage only, the premium shall be the total of the health and dental premium for one child and the dental premium for one child.    (3)   If the family has two or more children eligible for both medical and dental coverage, no additional premium shall be assessed for dental-only coverage for the children who do not qualify for medical coverage under HAWK-I because they are covered by health insurance.    f.    The provisions of subrules 86.8(3) to 86.8(6) and 86.8(8) apply to premiums specified in this subrule.
ARC 4629CHuman Services Department[441]Notice of Intended Action

Proposing rule making related to residential care facilities for children and providing an opportunity for public comment

    The Human Services Department hereby proposes to amend Chapter 105, “Juvenile Detention and Shelter Care Homes,” Chapter 112, “Licensing and Regulation of Child Foster Care Facilities,” Chapter 114, “Licensing and Regulation of All Group Living Foster Care Facilities for Children,” Chapter 115, “Licensing and Regulation of Comprehensive Residential Facilities for Children,” and Chapter 116, “Licensing and Regulation of Residential Facilities for Children With an Intellectual Disability,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 234.6.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 234.6.Purpose and Summary    These proposed amendments remove obsolete elements within the administrative rules, bring better alignment to current practice and implement changes required by federal law. Fiscal Impact    This rule making makes a number of changes, most of which have no fiscal impact. However, federal law changes now require fingerprint checks for group care and shelter care staff. There are fiscal impacts associated with this new requirement. Jobs Impact    The background checks included in these licensure or approval standards could prohibit employment of persons with criminal or abuse histories. The number of potential jobs that would result from implementation of these rule changes are unknown. Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217). Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Nancy Freudenberg Iowa Department of Human Services Hoover State Office Building, Fifth Floor 1305 East Walnut Street Des Moines, Iowa 50319-0114 Email: appeals@dhs.state.ia.usPublic Hearing    No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Adopt the following new definitions of “Administrator,” “Immediate family,” “Schedule II medications,” “Staff” and “Time out” in rule 441—105.1(232):        "Administrator," when used for matters related to a certificate of approval or a certificate of license, means the administrator of the division of adult, children and family services.        "Immediate family," for the purposes of this chapter, means persons who have a blood or legal relationship with the child.        "Schedule II medications" means those controlled substances identified in Iowa Code chapter 124.        "Staff" means any person providing care or services to or on behalf of the residents whether the person is an employee of the facility, an independent contractor or any other person who contracts with the facility, an employee of an independent contractor or any other person who contracts with the facility, or a volunteer.        "Time out" applies only to shelter care homes and means the temporary and short-term restriction of a resident for a period of time to a designated area from which the resident is not physically prevented from leaving, for the purpose of providing the resident an opportunity to regain self-control. Staff physically preventing the resident from leaving the time out area would be considered seclusion in control room conditions.

    ITEM 2.    Amend rule 441—105.1(232), definitions of “Administer medication,” “Child care worker or house parent” and “Facility,” as follows:        "Administer medicationMedication management and administration" means to removeproperly tend to prescription and nonprescription medications, including, but not limited to: properly obtaining and storing medication; removing medication from its storage place; to ensureensuring to the extent possible that the child ingests, applies, or uses the appropriate dosage at the appropriate time of day; and to documentdocumenting the dosage and the time and date that the child ingested, applied, or used the medication.        "Child care worker or house parent" shall mean an individual employed by a facility whose primary responsibility is the direct care of the children in the facility.        "Facility" shall mean a county or multicounty “juvenile detention home” or county or multicounty “juvenile shelter care home” as those terms are defined in Iowa Code section 232.2., and private juvenile detention and shelter care homes as defined in Iowa Code section 232.2 which do not meet the requirements of being “county or multicounty.”

    ITEM 3.    Rescind the definitions of “Controlled substances,” “Family shelter home” and “Prime programming time” in rule 441—105.1(232).

    ITEM 4.    Rescind subrule 105.2(12) and adopt the following new subrule in lieu thereof:    105.2(12) Private water supplies.      a.    Maintenance and operation. Each privately operated water supply shall be maintained and operated in a manner that ensures safe drinking water. Each water supply used as part of a facility shall be annually inspected and evaluated for deficiencies that may allow contaminants access to the well interior. Items such as open or loose well caps, missing or defective well vents, poor drainage around the wells, and the nearby storage of potential contaminants shall be evaluated. All deficiencies shall be corrected by a well contractor certified by the state within 30 days of discovery.     b.    Evaluation and water testing. As part of the inspection and evaluation, water samples shall be collected and submitted by the local health sanitarian or a well contractor certified by the state to the state hygienic laboratory or other laboratory certified for drinking water analysis by the department of natural resources. The minimum yearly water analysis shall include coliform bacteria and nitrate (NO3-) content. Total arsenic testing shall be performed once every three years. The water shall be deemed safe when there are no detectible coliform bacteria, when nitrate levels are less than 10 mg/L as nitrogen, and when total arsenic levels are 10 μg/L or less. A copy of the laboratory analysis report shall be provided to the department within 72 hours of receipt by the water supply.     c.    Multiple wells supplying water. When the water supply obtains water from more than one well, each well connected to the water distribution system shall meet all of the requirements of these rules.     d.    Deficiencies. When no apparent deficiencies exist with the well or its operations and the water supply is proven safe by meeting the minimum sampling and analysis requirements, water safety requirements have been met. Wells with deficiencies that result in unsafe water analysis require corrective actions through the use of a well contractor certified by the state.     e.    When water is proven unsafe. When the water supply is proven unsafe by sampling and analysis, the facility shall immediately provide a known source of safe drinking water for all water users and hang notification at each point of water use disclosing the water is unsafe for drinking water uses. In addition, the facility shall provide a written statement to the department disclosing the unsafe result and detail a plan on how the water supply deficiencies will be corrected and the supply brought back into a safe and maintained condition. The statement shall be submitted to the department within ten days of the laboratory notice. All corrective work shall be performed and the water supply sampled and analyzed again within 45 days after any water test analysis report that indicates the water supply is unsafe for drinking water uses.     f.    Water obtained from another source through hauling and storage must meet the requirements of the department of natural resources.

    ITEM 5.    Amend subrule 105.2(17) as follows:    105.2(17) Emergency evacuationand safety procedures.  Upon admission, all children shall receive instruction regarding evacuation and safety procedures.All living units utilized by children shall have a posted plan for evacuation in case ofand safety procedures regarding severe weather events, fire or disaster with practiceother natural or man-made disasters. Practice fire drillsshall be held at least every six monthsmonthly, and severe weather drills shall be held twice annually.

    ITEM 6.    Amend subrule 105.3(2) as follows:    105.3(2) Health of employees.  Each staff person who has direct client contact or is involved in food preparation shall be medically determined to be free of serious infectious communicable diseases and able to perform assigned dutiestested for tuberculosis and have had a physical examination within six months prior to hiring. A statement attesting to these facts shall be secured at the time of employment and filed in the personnel records of the staff person. A new statement shall be secured at least every three years.Physical examinations shall be completed at least every three years thereafter, or whenever circumstances require them more frequently. Evidence of these examinations or tests shall be included in each personnel file. The statement shall be signedexaminations or tests shall be completed by one of the following:    a.    A physician as defined in Iowa Code section 135.1(4);    b.    An advanced registered nurse practitioner who is registered with and certified by the Iowa board of nursing to practice nursing in an advanced role; or    c.    A physician assistant licensed under Iowa Code chapter 148C.

    ITEM 7.    Rescind and reserve rule 441—105.4(232).

    ITEM 8.    Amend rule 441—105.5(232) as follows:

441—105.5(232) Staff.      105.5(1) Number of staff.      a.    Generally.A sufficient number of child care or house parent staff shall be on duty at all times so as to provide adequate coverage. The number of staff required will vary depending on the size and complexity of the program. All facilities shall have at least one staff person on duty. Facilities having six or more residents shall have at least two staff persons on duty at all times that children are usually awake and present in the facility.A minimum staff-to-child ratio of one child care worker to five children shall be maintained at all times children are awake and present in the facility and during supervised outings. Coed facilities having more than five residents should have both male and female staff on duty at all times. All child care or house parent staff shall be at least 18 years of age.    b.    On-call system.There shall be an on-call system for coed facilities to provide that staff of the same sex as the resident shall perform the following:There shall be an on-call system operational 24 hours a day to provide supervisory consultation. There shall be a written plan documenting this system.    (1)   All personal body searches.    (2)   Supervision of personal care.    c.    Prime programming time.A minimum staff-child ratio of one child care worker or house parent to five children shall be maintained during prime programming timesReserved.    d.    Night hours.At night, there shall be a staff person awake in each living unit and making regular visual checks throughout the night. The visual checks shall be made at least every hour in shelter care and every half hour in detention. A log shall be kept of all checks, including the time of the check and any significant observations. There shall be an on-call system which allows backup within minutes for both child care staff and casework personnel.    105.5(2) Staff composition.  The composition of the program staff shall be determined by the facility, based on an assessment of the needs of the children being served, the facility’s goals, the programs provided, and all applicable federal, state and local laws and regulations.    105.5(3) Staff development.  Staff development shall be appropriate to the size and nature of the facility. There shall be a written plan for staff training that includes:    a.    Orientation for all new employees, to acquaint them with the philosophy, organization, program practices, and goals of the facility.    b.    Training of new employees in areas related to their job assignments.    c.    Provisions in writing for all staff members to improve their competency through such means as:    (1)   Attending staff meetings;    (2)   Attending seminars, conferences, workshops, and institutes;    (3)   Visiting other facilities;    (4)   Access to consultants;    (5)   Access to current literature, including books, monographs, and journals relevant to the facility’s services.    d.    There shall be an individual designated responsible for staff development and training, who will complete a written staff development plan which shall be updated annually.    105.5(4) Organization and administration.  Whenever there is a change in the name of the facility, the address of the facility, the executive, or the capacity, the information shall be reported to the licensing managerdepartment. A table of organization including the identification of lines of responsibility and authority from policymaking to service to clients shall be available to the licensing staff. An executive director shall have full administrative responsibility for carrying out the policies, procedures and programs.    105.5(5) Record checks.  Record checks are required for an entity being considered for a certificate of approval or a certificate of license or employment by an approved entity on a facility campus where children reside are required to determine whether any founded child abuse reports or criminal convictions exist related to the entity or whether the person has been placed on a sex offender registry.The facility shall not employor use anystaff person or give any person direct volunteer responsibility for a child or access to a child when the child is alone if that person has been convicted of a crime involving the mistreatment or exploitation of a child. The facility shall not employor use anystaff person or give any person direct volunteer responsibility for a child or access to a child when the child is alone if that person has a record of a criminal conviction or founded child abuse report unless the department has evaluated the crime or abuse and determined that the crime or abuse does not merit prohibition ofa certificate of approval or a certificate of license, volunteering or employment.For each person working in a shelter care home on a facility campus where children reside, fingerprints shall be provided to the department of public safety for submission through the state criminal history repository to the United States Department of Justice, federal bureau of investigation, for a national criminal history check. Fingerprints shall be provided to the department of public safety for submission through the state criminal history repository to the United States Department of Justice, federal bureau of investigation, for a national criminal history check. Fingerprinting, for the purpose of a national criminal history check, is required for any entity being considered for a certificate of approval or a certificate of license or employment by an approved entity on a facility campus where children reside.    a.    If a record of criminal conviction or founded child abuse exists, the person shall be offered the opportunity to complete and submit Form 470-2310, Record Check Evaluation.    b.    In its evaluation, the department shall consider:    (1)   The nature and seriousness of the crime or founded abuse in relation to the employment or volunteer position sought;    (2)   The time elapsed since the commission of the crime or founded abuse;    (3)   The circumstances under which the crime or founded abuse was committed;    (4)   The degree of rehabilitation; and    (5)   The number of crimes or founded abuses committed by the person involved.    105.5(6) Record check procedure.   Each entity being considered for a certificate of approval or a certificate of license or employment by an approved entity on a facility campus where children reside shall be checked for all of the following:    a.    Records with the Iowa central abuse registry;    b.    Records with the Iowa division of criminal investigation;    c.    Records with the Iowa sex offender registry;    d.    Records with the child abuse registry of any state where the person has lived during the past five years; and,    e.    Fingerprints provided to the department of public safety for submission through the state criminal history repository to the United States Department of Justice, federal bureau of investigation, for a national criminal history check.     105.5(7) Evaluation of record.  If the entity for whom background checks are required has a record of founded child or dependent adult abuse, a criminal conviction, or placement on a sex offender registry, the department shall complete an evaluation to determine that the abuse, criminal conviction, or placement on a sex offender registry does not warrant prohibition of a certificate of approval or a certificate of license or employment by an approved entity on a facility campus where children reside.     105.5(8) Evaluation form.  The entity with the founded child or dependent adult abuse or criminal conviction report shall complete and return record check evaluation forms required by the department within ten calendar days of the date of receipt to be used to assist in the evaluation.     105.5(9) Evaluation decision.  The department shall conduct the evaluation and issue a notice of decision in writing to the requesting entity.

    ITEM 9.    Amend paragraph 105.6(2)"c" as follows:    c.    When the child is in the facility more than four days, the following information shall be made available torequested by the facilityif not yet received.    (1)   All available psychological and psychiatric tests and reports concerning the child.    (2)   Any available family social history.    (3)   Any available school information.

    ITEM 10.    Amend subrule 105.8(1) as follows:    105.8(1) CareService plan.  There shall be a written careservice plan developed for each resident remaining in the facility over four daysand completed according to the time frames identified for the contracted service. The careservice plan will be based on individual needs determined through the assessment of each youth. The careservice plan shall be developed in consultation with child care services, probation services, social services and educational, medical, psychiatric and psychological personnel as appropriate. The plan shall include:    a.    Identification of specific needs;    b.    Description of planned service;    c.    Which staff person(s) will be responsible for each element of the plan;    d.    Where services are to occur;    e.    Frequency of activities or services.

    ITEM 11.    Amend paragraph 105.8(5)"b" as follows:    b.    The facilityShelter care homes shall plan and carry out efforts to establish and maintain workable relationships with the community recreational resources. The facility staff shall enlist the support of these resources to provide opportunities for children to participate in community recreational activities.

    ITEM 12.    Amend subrule 105.8(8) as follows:    105.8(8) Dietary program.  The facility shall provide properly planned, nutritious and inviting food and take into consideration the special fooddietary and health needs and tastes of children.The facility shall follow all dietary recommendations prescribed by medical personnel or a dietitian licensed in the state of Iowa.

    ITEM 13.    Adopt the following new subrule 105.8(10):    105.8(10) Safety, protection, and well-being of children in care.  Facilities shall develop and follow written policies and procedures that assure the safety, protection, and well-being of children in care. Policies shall address, but not be limited to, the following:    a.    Supportive leadership of the facility that promotes protecting each child from abuse or bullying from other children and staff.    b.    Defining the facility’s culture to reduce the use of unnecessary restraint.    c.    Clear definitions of unsafe behavior and the emergency situations when it is appropriate to use physical interventions.    d.    Staff training and development that give staff confidence that they are supported by leadership with proper supervision and ongoing access to information about best practices and evidence-based approaches to care.    e.    Adequate supervision of children while the children are using any hazardous or dangerous objects or equipment and when children are using the Internet or other social media.    f.    The social, cultural, and developmental needs of children in care.

    ITEM 14.    Adopt the following new subrule 105.8(11):    105.8(11) Staff duties.  The staff duties shall include, but not be limited to, the following:    a.    Providing a supportive atmosphere for each child.    b.    Providing for coordination of internal and external activities of each child as needed.    c.    Providing leadership and guidance to each child as needed.    d.    Being responsible for overseeing and maintaining the general health and well-being of each child.    e.    Supervising all living activities.    f.    At all times, knowing where the children are and where they are supposed to be to assure ongoing safety.    g.    Providing for a liaison with the referring agency.     h.    Monitoring and recording behavior on a daily basis.

    ITEM 15.    Adopt the following new subrule 105.8(12):    105.8(12) Volunteers.  A facility that utilizes volunteers to work directly with a particular child or group of children shall have a written plan for using volunteers. This plan shall be given to all volunteers. The plan shall indicate that all volunteers shall:    a.    Be directly supervised by a paid staff member.    b.    Be oriented and trained in the philosophy of the facility and the needs of children in care and methods of meeting those needs.    c.    Be subject to character, reference, and record check requirements as described in this chapter.

    ITEM 16.    Amend rule 441—105.9(232) as follows:

441—105.9(232) Medication management and administration.  The facility shall have and follow written policies and procedures governing the methods of handling prescription drugs and over-the-counter drugs within the facility. No prescription or narcotic drugs are allowed in the facility without the authorization of a licensed physician or other prescriber authorized by law. Only drugs which have been approved by the federal Food and Drug Administration for use in the United States may be used. No experimental drugs may be used.    105.9(1) Obtaining prescription medications.  Facilities shall permit prescription medications to be brought into the facility for a child.    a.    Prescription medication in its original container, clearly labeled and prescribed for the child, may be accepted as legitimate prescription medication for the child. The label serves as verification that the medication was ordered by an authorized prescriber.Medication shall be prescribed by a provider authorized to prescribe the medication. Medication provided to residents shall be dispensed only from a licensed pharmacy in the state of Iowa in accordance with the pharmacy laws in the Iowa Code, from a licensed pharmacy in another state according to the laws of that state, or by a licensed physician.    b.    Facilities shall review size, shape, color, and dosages and contact the identified pharmacy or authorized prescriber to confirm legitimacy if contraband is suspected.    105.9(2) Obtaining nonprescription medications.  Shelter and detention facilities shall maintain a supply of standard nonprescription medications for use for children residing at the facility. Examples of standard nonprescription medications include cough drops and cough syrups, aspirin substitutes and other pain control medication, poison antidote, and diarrhea control medication.    a.    All nonprescription medications kept on the premises for the use of residents shall be preapproved annually by a licensed pharmacist or an authorized prescriber.    b.    Facilities shall maintain a list of all preapproved nonprescription medications. The list shall indicate standard uses, standard dosages, contraindications, side effects, and common drug interaction warnings. The facility administrator or the administrator’s designee shall be responsible for determining the scope of the list and brands and types of medications included.    c.    Only nonprescription medications on the preapproved list shall be available for use. However, the facility administrator or the administrator’s designee, in consultation with an authorized prescriber or licensed pharmacist, may approve use of a nonprescription medication that is not on the preapproved list for a specific child.    105.9(3) Storing medications.  Prescription and nonprescription medications shall be stored in a locked cabinet, a locked refrigerator, or a locked box within an unlocked refrigerator.    a.    Controlled substancesSchedule II medications shall be stored in a locked box within a locked cabinet. Nothing other than controlled substancesSchedule II medications shall be stored in the locked box. Controlled substancesSchedule II medications requiring refrigeration also shall be maintained within a double-locked container separate from food and other items.    b.    The facility administrator shall determine distribution and maintenance of keysor other access to the medication storage cabinets and boxes.    c.    A shelter facility administrator or the administrator’s designee may preapprove shelter staff to carry prescription or nonprescription medications with them temporarily for use while on day trips or at sites away from the facility.    105.9(4) Labeling medications.  Controlled substancesSchedule II medications and prescription medications shall be maintained in their original containers, clearly labeled by an authorized prescriber and prescribed for the child. Sample prescription medications shall be accompanied by a written prescription. Nonprescription medications shall be maintained as purchased in their original containers.    105.9(5) Administering controlledSchedule II medications.  Only staff who have completed a medication administrationmanagement course shall be allowed to administer controlled substancesSchedule II medications.    105.9(6) Administering prescription and nonprescription medications.  The facility administrator shall determine and provide written authority as to which staff may administer prescription and nonprescription medications.    a.    Prescription medications shall be administered only in accordance with the orders of the authorized prescriber. Nonprescription medications shall be administeredby following the directions on the label.    b.    The facility administrator or the administrator’s designee may allow a child to self-administer prescription and nonprescription medication in appropriate situationswith written authorization by the authorized prescriber.The facility shall have written policies relating to self-administration of prescription and nonprescription medication. The facility shall require documentation if the child self-administers a medication.    105.9(7) Documenting errors in administering medications.  All errors in administering prescription and nonprescription medications shall be documented. Facilities shall review and take appropriate action to ensure that similar errors do not recur.    105.9(8) Medication for discharged residents.  When a child is discharged or leaves the facility, the facility shall turn over to a responsible agent controlled substancesSchedule II medications and prescription medications currently being administered. The facility may send nonprescription medications with the child as needed. The facility shall document in the child’s file:    a.    The name, strength, dosage form, and quantity of each medication.    b.    The signature of the facility staff person turning over the medications to the responsible agent.    c.    The signature of the responsible agent receiving the medications.    105.9(9) Destroying outdated and unused medications.  Unused controlledSchedule II medications and prescription medications kept at the facility for more than six monthsmay not be kept at the facility for more than 15 days after the child has left the facilityand the Schedule II medications and prescription medications shall be destroyed by the administrator or the administrator’s designee in the presence of at least one witness. Outdated, discontinued, or unusable nonprescription medications shall also be destroyed in a similar manner. The person destroying the medication shall document:    a.    The child’s name.    b.    The name, strength, dosage form, and quantity of each medication.    c.    The date the medication was destroyed.    d.    The names and signatures of the witness and staff person who destroyed the medication.

    ITEM 17.    Amend paragraph 105.10(3)"f" as follows:    f.    A staff member shall always be within hearing distancepositioned outside of the control room and the child shall be visually checked by the staff at least every 15 minutes and each check shall be recorded.Visual and auditory observations of the child’s behavior and condition shall be recorded at five-minute intervals, and a complete written report shall be documented in the child’s file by the end of the staff person’s work shift.

    ITEM 18.    Amend rule 441—105.14(232) as follows:

441—105.14(232) Daily log.  The facility shall maintain a daily logto generally record noteworthy occurrences regarding the children in care. The log shall be used to note general progress in regard to the care plan and any problem areas or unusual behavior for each child.Problem areas or unusual behavior for specific children shall be recorded in individual children’s records.

    ITEM 19.    Amend subrule 105.16(1) as follows:    105.16(1) Generally.  A facility shall have written policies regarding methods used for control and discipline of children which shall be available to all staff and to the child’s family. Discipline shall not include withholding of basic necessities such as food, clothing, or sleep.Discipline shall not be used for anyone other than a child whose actions resulted in consequences. Group discipline shall not be used because of actions of an individual child or other children. Agency staff shall be in control of and responsible for discipline at all times.

    ITEM 20.    Amend subrule 105.16(4) as follows:    105.16(4) Room confinement—juvenile detention home only.  Facilities shall provide sufficient programming and staff coverage to enable children to be involved in group activities during the day and evening hours. A child shall only be confined to the child’s room for illness, at the child’s own request, or for disciplinary reasons. A juvenile detention home may confine a child to the child’s room during normal sleeping hoursor for disciplinary reasons if the facility has written policies and procedures which are approved by the department regarding this confinementthat include, but are not limited to, the reasons for and time limitations of the confinement.

    ITEM 21.    Renumber subrule 105.16(5) as 105.16(6).

    ITEM 22.    Adopt the following new subrule 105.16(5):    105.16(5) Time out—juvenile shelter care home only.      a.    A resident in time out must never be physically prevented from leaving the time out area.    b.    Time out may take place away from the area of activity or from other residents, such as in the resident’s room, or in the area of activity of other residents.    c.    Staff must monitor the resident while the resident is in time out.

    ITEM 23.    Rescind paragraph 105.17(4)"b" and adopt the following new paragraph in lieu thereof:    b.    A summary related to discharge from the facility including:    (1)   The name, address, and relationship of the person or agency to whom the child was discharged.    (2)   The discharge summary (as included in the service plan).    (3)   Final disposition of a child’s medications as applicable.    (4)   Identification of who transported the child and destination post discharge.

    ITEM 24.    Rescind rule 441—105.18(232) and adopt the following new rule in lieu thereof:

441—105.18(232) Discharge.  Children in shelter care should be discharged to a permanent placement at the earliest possible time, preferably within 30 days. The facility shall collaborate with referral workers to assess each child’s need for ongoing placement and the reasons for longer stays shall be documented in the child’s case file. Children in detention shall be discharged as determined by the court.

    ITEM 25.    Amend rule 441—105.19(232), introductory paragraph, as follows:

441—105.19(232) Approval.  The department will issue a Certificate of Approval, Form 470-0620,or a certificate of license annually without cost to any juvenile detention home or juvenile shelter care home which meets the standards. The department may offer consultation to assist homes in meeting the standards.

    ITEM 26.    Amend subrule 105.19(7) as follows:    105.19(7) Certificate of approvalor certificate of license.  Upon approval, the homecounty or multicounty homes will be issued a certificate of approvaland private juvenile detention and shelter care homes will be issued a certificate of license containing the name of the home, address, capacity, and the date of expiration. Renewals will be shown by a seal bearing the new date of expiration, unless a change requires a new certificate to be issued.

    ITEM 27.    Rescind rule 441—105.20(232) and adopt the following new rule in lieu thereof:

441—105.20(232) Provisional approval.      105.20(1) Required conditions.  The administrator may issue a provisional license for not more than one year when a facility does not meet the requirements of this chapter and the facility submits a written corrective action plan that is approved by the administrator to bring the facility into compliance with the applicable requirements.    105.20(2) Written report.  The department or the department’s designee will provide a report identifying the reasons for the provisional license and the standards that have not been met.    105.20(3) Corrective action.  The director of the facility, chairperson of the county board of supervisors, or chairperson of the multicounty board of directors shall provide the department with a written plan of action that is approved by the department for correcting the deficiencies to bring the facility into compliance with the applicable requirements. The plan shall give specific dates by which the corrective action will be completed.    105.20(4) Completed corrective action.  When the corrective action is completed on or before the date specified, a full approval shall be issued.    105.20(5) Uncompleted corrective action.  When the corrective action is not completed by the date specified on a provisional approval, the department shall not grant a full approval and has the option of rejecting or extending the provisional approval. An extension of a provisional approval shall not cause the effective period of a provisional approval to exceed 18 months. If the corrective action plan is not completed within 18 months, the approval shall be rejected.

    ITEM 28.    Amend paragraph 105.21(1)"d" as follows:    d.    EachExcept for mechanical restraint of a child by the staff of a juvenile detention facility for the amount of time needed while that child is being transported to a point outside the facility and as necessary when there is a serious risk of the child exiting a vehicle while the vehicle is in motion or otherwise absconding, each authorization of mechanical restraint shall not exceed one1 hour in duration without a visit by and written authorization from a licensed psychologist, psychiatrist or physician or psychologist employed by a local mental health center.

    ITEM 29.    Amend paragraph 105.21(1)"e" as follows:    e.    No child shall be kept in mechanical restraint for more than 1 hour in a 12-hour period without a visit by and written authorization from a licensed psychologist, psychiatrist or physician or psychologist employed by a local mental health center.

    ITEM 30.    Amend paragraph 105.21(2)"c" as follows:    c.    Each facility authorized to use mechanical restraint shall submit a quarterly report, which shall include all the information required in paragraph 105.21(2)“b,” to the bureau of adult, children and family services of the department which shall include all the information required in 105.21(2)“b.”its licensing manager.

    ITEM 31.    Amend subrule 105.21(4) as follows:    105.21(4) In transporting children.  Notwithstanding 105.21(1)“d,” mechanical restraint of a child by the staff of a juvenile detention facility while that child is being transported to a point outside the facility is permitted when there is a serious risk of the child exiting the vehicle while the vehicle is in motion. The facility shall place a written report on each use in the child’s case record and the mechanical restraint file. This report shall document the necessity for the use of restraint.Seat belts are not considered mechanical restraints. Agency policies should encourage the use of seat beltsand comply with Iowa law while transporting children.

    ITEM 32.    Adopt the following new rule 441—105.23(232):

441—105.23(232) Mandatory reporting of child abuse and training.      105.23(1) Mandatory reporters.  All defined in Iowa Code section 232.69 who, in the scope of professional practice or in their employment responsibilities, examine, attend, counsel, or treat a child and reasonably believe a child has suffered abuse, shall make a report in accordance with Iowa Code section 232.69 whenever the provider reasonably believes a child for whom the provider is providing foster care has suffered abuse.    105.23(2) Required training.  Mandatory reporters shall receive training relating to the identification and reporting of child abuse as required by Iowa Code section 232.69.    105.23(3) Training documentation.  Each licensee shall develop and maintain a written record for each mandatory reporter in order to document the content and amount of training.       This rule is intended to implement Iowa Code section 232.69.

    ITEM 33.    Amend rule 441—112.1(237) as follows:

441—112.1(237) Applicability.  This chapter relates to licensing procedures for all child foster care facilities authorized by Iowa Code chapter 237. Rules relating to specific types of facilities are located in 441—Chapter 113, “Licensing and Regulation of Foster Family Homes,” 441—Chapter 114, “Licensing and Regulation of All Group Living Foster Care Facilities for Children,” 441—Chapter 115, “Licensing and Regulation of Comprehensive Residential Facilities for Children,” and 441—Chapter 116, “Licensing and Regulation of Residential Facilities for Children with an Intellectual Disabilityor Brain Injury.”       This rule is intended to implement Iowa Code chapter 237.

    ITEM 34.    Adopt the following new definition of “Administrator” in rule 441—112.2(237):        "Administrator," when used for matters related to licensing, means the administrator of the division of adult, children and family services.

    ITEM 35.    Amend rule 441—112.2(237), definitions of “Applicant,” “Comprehensive residential facility,” “Director’s designee,” and “Residential facility for children with an intellectual disability” as follows:        "Applicant:"
  1. For a foster family home license, the applicant is the person or persons applying.
  2. For a proprietary child caring facility, the applicant is the owneror designee of the facility.
  3. For facilities having a board of directors, the applicant may be the president of the board or the board’s designee.
        "Comprehensive residential facility" means a facility which provides care and treatment for children who are unable to live in a family situation due to social, emotional, or physical disabilities and who require varying degrees of supervision as indicated in the individual treatmentservice plan. Care includes room and board. Services include the internal capacity for individual, family, and group treatment. These services and others provided to the child shall be under the administrative control of the facility. Community resources may be used for medical, recreational, and educational needs. Comprehensive residential facilities have higher staff to client ratios than community residential facilities and may use control rooms, locked cottages,and mechanical restraints, and chemical restraints when these controls meet licensing requirements.        "Director’sAdministrator’s designee:"
  1. For group facilities, the director’sadministrator’s designee is the chief of the bureau of protectivechild welfare and community services.
  2. For foster family homes, the designee is the department of human services’ service area manager.
        "Residential facility for children with an intellectual disabilityor brain injury" means any residential facility which serves children with an intellectual disability as defined in Iowa Code chapter 222or children with brain injury as defined in Iowa Code chapter 225C.

    ITEM 36.    Amend paragraph 112.3(1)"b" as follows:    b.    Group care.A person wishing to apply for a group care license shallmay contact the department:    (1)   Through the “Child Welfare” linkUsing the “Contact Us” link found on the department’s WebInternet site, www.dhs.iowa.govat dhs.iowa.gov; or    (2)   By mail to the DHSIowa Department of Human Services, Division of ChildAdult, Children and Family Services, Attn: Group Care Licensing, 1305 East Walnut Street, Des Moines, Iowa 50319-0114.

    ITEM 37.    Amend subrule 112.4(6) as follows:    112.4(6)   A foster family home license shall be approved for a term of one year for the first and second years of licensure. Thereafter, the license shall be approved for a term of two years unless it is determined by the administrator that a one-year license shall be issued. A group facility license shall be approved for a term of one to three years according to the following criteria:    a.    A one-year license may be approved for all new agenciesfacilities that meet licensure standards.    b.    A two-yearone- to two-year license may be approved upon completion of a survey for a renewal license whenit is determined:    (1)   Some health or safety concerns have been identified, but they are determined to be minor or easily corrected;or    (2)   Some complaints against a facility have been substantiated, but they are determined to be minor; andor    (3)   Deficiencies that have been identified are determined to be minor or easily corrected.    c.    A three-year license may be approved upon completion of a survey for a renewal license when:    (1)   No health or safety deficiencies have been identified;    (2)   There have either been no substantiated complaints against the facility or, if substantiated, complaints have been determined not to be serious or severe; and    (3)   A facility has no founded incidents of child abuse by facility staff.

    ITEM 38.    Amend paragraph 112.5(1)"a" as follows:    a.    The minimum standards set forth in these rules are not met and a provisional license is inappropriate or disapproved by the director’sadministrator or administrator’s designee.

    ITEM 39.    Amend subrule 112.7(1) as follows:    112.7(1) Statement of reasonsTime frame for provisional licenses.  Provisional licenses shall be accompanied by a statement of the reasons for the provisional license, the standards that have not been met, the date that the facility must make required changes to meet standards.The administrator may issue a provisional license for not more than one year when a licensee’s facility does not meet the requirements of this chapter and the licensee submits a written corrective action plan that is approved by the administrator to bring the facility into compliance with the applicable requirements.

    ITEM 40.    Amend subrule 112.7(2) as follows:    112.7(2) Corrective actionWritten report.  The facility shall furnish the licensing agency with a plan of action to correct deficiencies listed that resulted in the provisional license. The plan shall give specific dates upon which the corrective action will be completed.The administrator or the administrator’s designee will provide a report identifying the reasons for the provisional license and the standards that have not been met.

    ITEM 41.    Adopt the following new subrule 112.7(3):    112.7(3) Corrective action plan.  The facility shall furnish the licensing agency with a plan of action to correct deficiencies listed that resulted in the provisional license. The plan shall give specific dates upon which the corrective action will be completed.

    ITEM 42.    Amend subrule 112.9(2) as follows:    112.9(2) Requirements for emergency suspension.  The emergency suspension of a license by the directoradministrator oradministrator’s designee shall occur only when all of the following conditions exist:    a.    The licensee fails to meet licensing requirements.    b.    There are sufficient grounds for revocation on denial of the license.    c.    The health, safety, and welfare of any child placed in the home or facility requires immediate action.    d.    The existence of the condition requiring suspension is documented in the licensee’s record.

    ITEM 43.    Amend subrule 112.9(3) as follows:    112.9(3) Requirements for time-limited suspensions.  The time-limited suspension of a license by the directoradministrator oradministrator’s designee shall occur only when all of the following conditions exist:    a.    The licensee fails to meet licensing requirements.    b.    The health, safety, and welfare of any child placed in the home or facility requires immediate action.    c.    The existence of the condition requiring suspension is documented in the licensee’s record.    d.    The condition requiring the suspension can be corrected by the licensee to meet licensing requirements.    e.    If the condition were corrected, a full license would be issued.    f.    The licensee signs a written statement acknowledging the existence of the condition, citing the law or rule violated, and making a commitment to correct the condition within a specific time period, not to exceed the period of the license.

    ITEM 44.    Amend rule 441—112.10(232) as follows:

441—112.10(232) Mandatory reporting of child abuseand training.      112.10(1) Mandatory reporters.  The following foster care providersAll defined in Iowa Code section 232.69 who, in the scope of professional practice or in their employment responsibilities, examine, attend, counsel, or treat a child and reasonably believe a child has suffered abuse, shall make a report, in accordance with Iowa Code section 232.69, whenever theythe provider reasonably believebelieves a child for whom they arethe provider is providing foster care has suffered abuse:.    a.    Any social worker who is employed by a licensed child foster care facility and who works with foster children.    b.    Any licensed foster parent providing child foster care.    112.10(2) Required training.  After completing the initial mandatory reporter training, and every five years thereafter, any person required to make a report under subrule 112.10(1) shall complete two hours of training relating to the identification and reporting of child abuse.Mandatory reporters shall receive training relating to the identification and reporting of child abuse as required by Iowa Code section 232.69.    112.10(3) Training provider.      a.    If the foster care provider is a social worker employed by a licensed child foster care facility, the employer shall be responsible for providing the required training in child abuse identification and reporting.    b.    If the foster care provider is a licensed foster parent, the foster parent shall be responsible for obtaining the required two-hour training in child abuse identification and reporting as part of a continuing education program required under Iowa Code section 232.69 and chapter 272C and approved by the department of public health.    112.10(4) Training content.      a.    Training in child abuse identification shall include physical and behavioral signs of physical abuse, denial of critical care, sexual abuse and other categories of child abuse pursuant to Iowa Code section 232.68.    b.    Training in child abuse reporting shall include reporting requirements and procedures.    112.(5) 112.10(3) Training documentation.  Each licensee shall develop and maintain a written record for each mandatory reporter in order to document the content and amount of training.    a.    If the foster care provider is a social worker employed by a licensed child foster care facility, the employer shall document in the employee’s personnel record the content and amount of training.    b.    If the foster care provider is a licensed foster parent, the foster parent shall be responsible for securing documentation of the training content, amount, and provider, and shall forward the documentation to the department’s recruitment and retention contractor, which will provide a copy to the department licensing worker for the service area where the family resides for inclusion in the licensing file.       This rule is intended to implement Iowa Code section 232.69.

    ITEM 45.    Adopt the following new rule 441—112.12:

441—112.12(237) Record checks.  Record checks as defined in 441—Chapter 114 are required for any entity being considered for licensure or employment by a licensee on a facility campus where children reside to determine whether any applicant has any founded child abuse reports or criminal convictions or has been placed on a sex offender registry.

    ITEM 46.    Adopt the following new definitions of “Immediate family,” “Schedule II medications” and “Time out” in rule 441—114.2(237):        "Immediate family," for the purposes of this chapter, means persons who have a blood or legal relationship with the child.        "Schedule II medications" means those controlled substances identified in Iowa Code chapter 124.        "Time out" means the temporary and short-term restriction of a resident for a period of time to a designated area from which the resident is not physically prevented from leaving, for the purpose of providing the resident an opportunity to regain self-control. Staff physically preventing the resident from leaving the time out area would be considered seclusion in control room conditions.

    ITEM 47.    Amend rule 441—114.2(237), definition of “Staff,” as follows:        "Staff" means any person providing care or services to or on behalf of the facilityresidents whether the person is an employee of the facility, an independent contractor or any other person who contracts with the facility, an employee of an independent contractor or any other person who contracts with the facility, or a volunteer.

    ITEM 48.    Rescind the definitions of “Highly structured juvenile program,” “Locked cottage,” and “Prime programming time” in rule 441—114.2(237).

    ITEM 49.    Amend subrule 114.4(1) as follows:    114.4(1) Bathroom facilities.      a.    Bathrooms shall have an adequate supply of hot and cold running water.    b.    Each bathroom shall be properly equipped with toilet tissuein dispensers, towels, soap, and other items required for personal hygiene unless children are individually given these items. Paper towels, when used, and toilet tissue shall be in dispensers.    c.    Toilets and baths or showers shall provide for individual privacy.    d.    There shall be a shower or tub for each ten children or portion thereof.    e.    Tubs and showers shall have slip-proof surfaces.    f.    At least one toilet and one lavatorywash basin shall be provided for each six children or portion thereof.    g.    Toilet facilities shall be provided with natural or artificial ventilation capable of removing odors and moisture.    h.    Toilet facilities adjacent to a food preparation area shall be separated completely by an enclosed solid door.    i.    All toilet facilities shall be kept clean.    j.    When more than one stool is used in one bathroom, partitions providing privacy shall be used.    k.    Toilets, wash basins, and other plumbing or sanitary facilities shall be maintained in good operating condition.

    ITEM 50.    Rescind subrule 114.4(8) and adopt the following new subrule in lieu thereof:    114.4(8) Private water supplies.  Any facility that serves at least 25 people for at least 60 days during the year and is supplied by its own well meets the definition of a public water supply and must be regulated by the department of natural resources.    a.    Maintenance and operation. Each privately operated water supply shall be maintained and operated in a manner that ensures safe drinking water. Each water supply used as part of a facility shall be annually inspected and evaluated for deficiencies that may allow contaminants access to the well interior. Items such as open or loose well caps, missing or defective well vents, poor drainage around the wells, and the nearby storage of potential contaminants shall be evaluated. All deficiencies shall be corrected within 30 days of discovery by a well contractor certified by the state.     b.    Evaluation and water testing. As part of the inspection and evaluation, water samples shall be collected and submitted by the local health sanitarian or a well contractor certified by the state to the state hygienic laboratory or other laboratory certified for drinking water analysis by the department of natural resources. The minimum yearly water analysis shall include coliform bacteria and nitrate (NO3-) content. Total arsenic testing shall be performed once every three years. The water shall be deemed safe when there are no detectible coliform bacteria, when nitrate levels are less than 10 mg/L as nitrogen, and when total arsenic levels are 10 μg/L or less. A copy of the laboratory analysis report shall be provided to the department within 72 hours of receipt by the water supply.     c.    Multiple wells supplying water. When the water supply obtains water from more than one well, each well connected to the water distribution system shall meet all of the requirements of these rules.     d.    Deficiencies. When no apparent deficiencies exist with the well or its operations and the water supply is proven safe by meeting the minimum sampling and analysis requirements, water safety requirements have been met. Wells with deficiencies that result in unsafe water analysis require corrective actions through the use of a well contractor certified by the state.     e.    When water is proven unsafe. When the water supply is proven unsafe by sampling and analysis, the facility shall immediately provide a known source of safe drinking water for all water users and hang notification at each point of water use disclosing the water is unsafe for drinking water uses. In addition, the facility shall provide a written statement to the department disclosing the unsafe result and detail a plan on how the water supply deficiencies will be corrected and the supply brought back into a safe and maintained condition. The statement shall be submitted to the department within ten days of the laboratory notice. All corrective work shall be performed and the water supply sampled and analyzed again within 45 days from any water test analysis report that indicates the water supply is unsafe for drinking water uses.     f.    Water obtained from another source through hauling and storage must meet the requirements of the department of natural resources.

    ITEM 51.    Amend subrule 114.5(1) as follows:    114.5(1) General.  a.    Facilities shall take sufficient measures to ensure the safety of the children in carein all of its programs.    b.    Stairways, halls and aisles shall be of substantial nonslippery material, shall be maintained in a good state of repair, shall be adequately lighted and shall be kept free from obstructions at all times. All stairways shall have handrails.    c.    Radiators, registers, and steam and hot water pipes shall have protective covering or insulation. Electrical outlets and switches shall have wall plates.    d.    Fuse boxes shall be inaccessible to children.    e.    Facilities shall have written procedures for the handling and storage of hazardous materials.    f.    Firearms and ammunition shall be kept under lock and key and inaccessible to children. When firearms are used, the facility shall have written policies regarding their purpose, use, and storage.    g.    All swimming pools shall conform to state and local health and safety regulations. Adult supervision shall be provided at all times when children are using the pool.    h.    The facility shall have policies regarding fishing ponds, lakes, or any bodies of water located on or near the institution grounds and accessible to the children.

    ITEM 52.    Renumber subrules 114.5(2) to 114.5(4) as 114.5(3) to 114.5(5).

    ITEM 53.    Adopt the following new subrule 114.5(2):    114.5(2) Premises.      a.    Stairways, halls and aisles shall be of substantial nonslippery material, shall be maintained in a good state of repair, shall be adequately lighted and shall be kept free from obstructions at all times. All stairways shall have handrails.    b.    Radiators, registers, and steam and hot water pipes shall have protective covering or insulation. Electrical outlets and switches shall have wall plates.    c.    Fuse boxes and circuit breakers shall be inaccessible to children.    d.    Facilities shall have written procedures for the handling and storage of hazardous materials.    e.    Firearms and ammunition shall be kept under lock and key and inaccessible to children. When firearms are used, the facility shall have written policies regarding their purpose, use, and storage.    f.    All swimming pools shall conform to state and local health and safety regulations. Adult supervision shall be provided at all times when children are using the pool.    g.    The facility shall have policies regarding fishing ponds, lakes, or any bodies of water located on or near the facility grounds and accessible to the children.

    ITEM 54.    Amend renumbered subrule 114.5(3) as follows:    114.5(3) Emergency evacuationand safety procedures.  Upon admission all children shall receive instruction regarding evacuation and safety procedures.All living units utilized by children shall have a posted plan for evacuation in case ofand safety procedures regarding severe weather events, fire or disaster with practiceother natural or man-made disasters. Practice firedrillsshall be held at least every six monthsmonthly and severe weather drills shall be held twice annually.

    ITEM 55.    Adopt the following new subrule 114.5(6):    114.5(6) Safety, protection, and well-being of children in care.  Facilities shall develop and follow written policies and procedures that assure the safety, protection, and well-being of children in care. Policies shall address, but not be limited to, the following:    a.    Supportive leadership of the facility that promotes protecting each child from abuse or bullying from other children and staff.    b.    Defining the facility’s culture to reduce the use of unnecessary restraint.    c.    Clear definitions of unsafe behavior and the emergency situations when it is appropriate to use physical interventions.    d.    Staff training and development that give staff confidence they are supported by leadership with proper supervision and ongoing access to information about best practices and evidence-based approaches to care.    e.    Adequate supervision of children while the children are using any hazardous or dangerous objects or equipment and when children are using the Internet or other social media.    f.    The social, cultural, and developmental needs of children in care.       This rule is intended to implement Iowa Code section 237.3.

    ITEM 56.    Amend rule 441—114.6(237) as follows:

441—114.6(237) Organization and administration.  Any change in the name of the facility, the address of the facility, the executive, or the capacity shall be reported to the licensing managerdepartment.    114.6(1) Table of organization.  A table of organization including the identification of lines of responsibility and authority from policymaking to service to clients shall be available to the licensing staff.    114.6(2) Purpose of agencyor facility.  The purpose or function of the organization shall be clearly defined in writing and shall include a description of the children to be accepted for care and the services offered.    114.6(3) Governing bodies or individuals.  All group living foster care facilities shall:    a.    Have a governing board or individuals who are accountable for and have authority over the policies and activities of the organization. In the case of an organization owned by a proprietor or partnership, the proprietor or partner shall be regarded as the governing body.    b.    Provide the department with a list of names, addresses, telephone numbers and titles of the members of the governing body.    c.    Have adequate insurance covering fire and liability as a protection to children in care.    d.    For organizations with the home base located outside Iowa, have duly authorized representatives with decision-making abilities designated within the state of Iowa.    114.6(4) Executive director.  The governing bodyor proprietor or partner(s) shall select and appoint an executive director with full administrative responsibilityand qualifications for carrying out the policies, procedures and programs established by the governing body.    114.6(5) Financial solvency of facilities.  Profit and nonprofit institutions shall maintain financial solvency to ensure adequate care of children and youth for whom responsibility is assumed. It shall have sufficient financial resources, predictable income, or both, and not be totally dependent upon current fees, for a three-month operating period. The facility shall have written policies and procedures describing the program of the facility and specifying how it will be carried out.       This rule is intended to implement Iowa Code section 237.2.

    ITEM 57.    Amend subrule 114.7(2) as follows:    114.7(2) Health of staff.  Each staff person who has direct client contact or is involved in food preparation shall be medically determined to be free of serious infectious communicable diseases and able to perform assigned dutiesbe tested for tuberculosis and have a physical examination within six months prior to hiring. Physical examinations shall be completed every three years thereafter. A statement attesting to these facts shall be secured at the time of employment and filed in the staff record of the staff person. A new statement shall be secured at least every three years.Evidence of these examinations or tests shall be included in each personnel file. The statement shall be signedexaminations or tests shall be completed by one of the following:    a.    A physician as defined in Iowa Code section 135.1(4);    b.    An advanced registered nurse practitioner who is registered with and certified by the Iowa board of nursing to practice nursing in an advanced role; or    c.    A physician assistant licensed under Iowa Code chapter 148C.

    ITEM 58.    Amend paragraph 114.7(3)"a" as follows:    a.    The facility shall maintain the following information with respect to each staff person:    (1)   Name and current address of each staff person.    (2)   At least two written references or documentation of oral references. In case of unfavorable references, there shall be documentation of further checking to ensure that the person will be reliable.    (3)   Documentation that a criminal records check with the Iowa division of criminal investigation has been completed on the staff person prior to providing any care or service directly or indirectly to children under the care of the agency. A copy of the department’s evaluation of the criminal record check shall be kept in the staff recordof all record checks and evaluations as required in subrule 114.8.    (4)   A written, signed and dated statement furnished by the staff person prior to providing any care or services to or on behalf of the facility which discloses any founded reports of child abuse on the person that may exist.    (5)   Documentation that a check of the staff person has been completed with the Iowa central abuse registry for any founded reports of child abuse prior to the person’s providing any care or services directly or indirectly to children under the care of the agency. A copy of the department’s evaluation of this child abuse record check shall be kept in the staff recordReserved.    (6)   Records of a healthphysical examination or a record of a health report, as required in subrule 114.7(2), plus a written record of subsequent health services rendered to staff necessary to ensure that each individual is physically able to perform the job duties or functions.    (7)   If the staff person has completed and submitted Form 470-2310, Record Check Evaluation, to the agency, a copy shall be kept in the staff recordReserved.    (8)   Records of training sessions attended, including dates and content of the training.    (9)   When otherwise required in situations that apply, a certified copy of a school transcript, diploma, or written statement from the school or supervising agency for positions having educational requirements.

    ITEM 59.    Amend paragraph 114.8(2)"d" as follows:    d.    The number and qualifications of the staff will vary depending on the needs of the children. There shall be at least a one to eight staff to client ratio during prime programming timeall times children are awake and present in the facility and during supervised outings.

    ITEM 60.    Amend subrule 114.8(3) as follows:    114.8(3) Staff duties.      a.    The casework supervisor shall provide in-person case specific supervision at the site of the facility for one hour per month per caseworker and be available for consultation in case of emergency.    b.    Caseworkers shall:    (1)   Develop a careservice plan for each child containing goals and objectives with projected dates of accomplishment and shall involve the client, referral agency, and family whenever possible.    (2)   Develop a specific plan relating to the involvement of the child’s parents unless documented by the caseworker that their involvement would be counterproductive.    c.    The facilitystaff shall define in writing who shall be responsible for the following staff duties:    (1)   Documenting case reassessments quarterly, involving the same personnel as previously involved in careservice plan development.    (2)   Documenting the implementation of the careservice plan.    (3)   Providing for scheduled in-person conferences with each resident.    (4)   Providing a supportive atmosphere for the child.    (5)   Providing for coordination of internal and external activities of the child.    (6)   Providing for liaison with the referring agency.    (7)   Providing leadership and guidance to the children.    (8)   Providing a mechanism for dealing with day-to-day program operations.    (9)   Being responsible for overseeing and maintaining general health and well-being of children.    (10)   Supervising the living activities of the children.    (11)   Monitoring and recording behavior on a daily basis.    (12)   At all times, knowing where the children areand where they are supposed to beto assure ongoing safety.

    ITEM 61.    Amend subparagraph 114.8(4)"c" as follows:    (5)   Access to current literature, including books, monographs, and journalsinformation and evidence based practices relevant to the facility’s services.

    ITEM 62.    Adopt the following new subrule 114.8(5):    114.8(5) Volunteers.  A facility that utilizes volunteers to work directly with a particular child or group of children shall have a written plan for using volunteers. This plan shall be given to all volunteers. The plan shall indicate that all volunteers shall:    a.    Be directly supervised by a paid staff member.    b.    Be oriented and trained in the philosophy of the facility and the needs of children in care, and methods of meeting those needs.    c.    Be subject to character, reference, and record check requirements described in Iowa Administrative Code 441—Chapter 112 and in this chapter.

    ITEM 63.    Amend subrule 114.9(3) as follows:    114.9(3) Referral requirementsinformation.  The following information shall be availablerequested from the referral worker prior to any decision being made regarding the acceptance of a child:    a.    A current social history.    b.    A copy of the child’s physical assessment including immunization history completed within one year prior to application, when available.    c.    Where indicated, or when available, psychological testing completed no more than one year prior to referral.    d.    Current educational data.    e.    When indicated or available, psychiatric report completed no more than one year prior to referral.    f.    Referring agency’s case plan which includes goals and objectives to be achieved during placement with a time frame for the achievement of these goals and objectives.    g.    Documentation of the legal status of the child which includes any court orders or statements of custody and guardianship.

    ITEM 64.    Amend subrule 114.9(5) as follows:    114.9(5) Personal assessment.  At the time of intake, individual needs will be identified by staff based on written and verbal information from referral sources, observable behavior at intake and the initial interview with youth or family, school contacts, physical examinations, and other relevant material. The individual assessment shall provide the basis for development of a careservice plan for each child.

    ITEM 65.    Amend subrule 114.10(2) as follows:    114.10(2) CareService plan.  There shall be a written careservice plan for each child. The careservice plan shall be based on the individual needs determined through the assessment of each resident, provide for consultation with the family, and shall include the following:    a.    Identification of special needs.    b.    Description of planned servicesincluding measurable goals and objectives which indicate which staff person will be responsible for the specific services in the plan.    c.    Indication of where the services are to occur and note the frequency of activities or services.    d.    A discharge summary.

    ITEM 66.    Rescind subrule 114.10(4) and adopt the following new subrule in lieu thereof:    114.10(4) Daily log.  The facility shall maintain a daily log to generally record noteworthy occurrences regarding the children in care. Problem areas or unusual behavior for specific children shall be recorded in individual children’s records.

    ITEM 67.    Amend paragraph 114.10(6)"d" as follows:    d.    A facility shall haveand staff shall follow written procedures for staff members to follow in case of medical emergency.

    ITEM 68.    Amend subrule 114.10(7) as follows:    114.10(7) Dietary program.  The facility shall provide properly planned, nutritious and inviting food and take into consideration the special fooddietary and health needs and tastes of children.The facility shall follow all dietary recommendations prescribed by medical personnel or a dietitian licensed in the state of Iowa.

    ITEM 69.    Rescind subrule 114.10(8) and adopt the following new subrule in lieu thereof:    114.10(8) Recreation and leisure programs.      a.    The facility shall provide adequately designed and maintained indoor and outdoor activity areas, equipment, and equipment storage facilities appropriate for the residents it serves. There shall be a variety of activity areas and equipment so that all children can be active participants in different types of individual and group sports and other motor activities.    b.    Games, toys, equipment, and arts and crafts material shall be selected according to the ages and number of children with consideration to the needs of the children to engage in active and quiet play.    c.    The facility shall plan and carry out efforts to establish and maintain workable relationships with community recreational resources so these resources may provide opportunities for children to participate in community recreational activities.

    ITEM 70.    Amend subrule 114.10(9) as follows:    114.10(9) Casework services.  A facility shall provide or obtain casework services in the form of counseling in accordance with the needs of each child’s individual careservice plan. Casework services include crisis intervention, daily living skills, interpersonal relationships, future planning and preparation for placement as required by the child.

    ITEM 71.    Rescind and reserve subrule 114.10(11).

    ITEM 72.    Amend paragraph 114.11(2)"g" as follows:    g.    Telephone number and address of the agency or court making the referraland contact information of the child’s attorney or guardian ad litem.

    ITEM 73.    Amend subrule 114.11(9) as follows:    114.11(9) CareService plan.  Individual child careservice plan,and semiannual reviewquarterly update, and revisionrevisions of carethe service plan.The service plan shall be updated quarterly or any time upon receipt of a new case permanency plan or juvenile court services plan or as otherwise needed to address the changing needs of the child. Discharge summary completing the service plan information shall be completed upon a child’s discharge from placement.

    ITEM 74.    Amend subrule 114.11(10) as follows:    114.11(10) DictationDocumentation.  The following information shall be documented in each child’s record.    a.    Appropriate notes, all significant contacts with parents, referring worker and other collateral contracts, as well as staff counseling with child and notations on behavior.    b.    Information on release of the child from the facility including the name, address and relationship of the person or agency to whom the child was released.A summary related to discharge including:    (1)   The name, address and relationship of the person or agency to whom the child was released.    (2)   The discharge summary (as included in the service plan).    (3)   Final disposition of a child’s medications as applicable.    (4)   Identification of who transported the child and destination post discharge.

    ITEM 75.    Adopt the following new subrule 114.11(11):    114.11(11) Electronic records.  An authorized representative of the department shall be provided unrestricted access to electronic records pertaining to the care provided to the residents of the facility.    a.    If access to an electronic record is requested by the authorized representative of the department, the facility may provide a tutorial on how to use its particular electronic system or may designate an individual who will, when requested, access the system, respond to any questions or assist the authorized representative as needed in accessing electronic information in a timely fashion.    b.    The facility shall provide a terminal where the authorized representative may access records.     c.    If the facility is unable to provide direct print capability to the authorized representative, the facility shall make available a printout of any record or part of a record on request in a time frame that does not intentionally prevent or interfere with the department’s survey or investigation.

    ITEM 76.    Amend rule 441—114.12(237), introductory paragraph, as follows:

441—114.12(237) Drug utilization and control.  The agency shall haveand follow written policies and procedures governing the methods of handling prescription drugs and over-the-counter drugs within the facility. No prescription or narcotic drugs are to be allowed in the facility without the authorization of a licensed physicianor authorized prescriber.

    ITEM 77.    Amend subrule 114.12(2) as follows:    114.12(2) Prescribed by physicianor other authorized prescriber.  Drugs shall be prescribed by a physician licensed to practice in the state of Iowa or the state in which the physician is currently practicing, or by an advanced registered nurse practitioner or physician assistant as permitted by Iowa law, and may be prescribed only for use in accordance with dosage ranges and indications approved by the federal Food and Drug Administration.

    ITEM 78.    Amend subrule 114.12(4) as follows:    114.12(4) Locked cabinet.  All drugs shall be maintained in a locked cabinet. Controlled substancesSchedule II medications shall be maintained in a locked box within the locked cabinet. The cabinet key shall be in the possession of a staff person. A bathroom shall not be used for drug storage. A documented exception can be made by a physician forpersons identified in these rules who may allow self-administered drugs as discussed insubrule114.12(17).

    ITEM 79.    Amend subrule 114.12(9) as follows:    114.12(9) Medication for discharged residents.  When a resident is discharged or leaves the facility, medications currently being administered shall be sent, in the original container, with the resident or with a responsible agent, and with the approval of the physicianthe facility shall turn over to a responsible agent Schedule II medications and prescription medications currently being administered.The facility may send nonprescription medications with the child as needed. The facility shall document in the child’s file:    a.    The name, strength, dosage form, and quantity of each medication.    b.    The signature of the facility staff person who turned over the medications to the responsible agent.    c.    The signature of the responsible agent receiving the medications.

    ITEM 80.    Rescind subrule 114.12(10) and adopt the following new subrule in lieu thereof:    114.12(10) Unused prescription drugs.  Unused prescription drugs prescribed for residents may not be kept at the facility for more 15 days after the resident has left the facility. The unused prescription drugs shall be destroyed by the facility executive director or the executive director’s designee in the presence of at least one witness. Outdated, discontinued, or unusable nonprescription medications shall also be destroyed in a similar manner. The person destroying the medication shall document:    a.    The resident’s name.    b.    The name, strength, dosage form, and quantity of each medication.    c.    The date the medication was destroyed.    d.    The names and signatures of the witness and staff person who destroyed the medication.

    ITEM 81.    Amend subrule 114.12(11) as follows:    114.12(11) Refills.  Prescriptions shall be refilled only with the permission of the attending physicianprescriber authorized under Iowa law.

    ITEM 82.    Amend subrule 114.12(13) as follows:    114.12(13) Order of physicianauthorized prescriber.  No prescription medication may be administered to a resident without the order of a licensed physicianan authorized prescriber.

    ITEM 83.    Amend subrule 114.12(14) as follows:    114.12(14) Patient reaction.  Any unusual patient reaction to a drug shall be reported to the attending physicianor prescriber immediately.

    ITEM 84.    Amend subrule 114.12(16) as follows:    114.12(16) Administration of drugs.  Medications shall be administered only in accordance with the instructions of the attending physicianor authorized prescriber. Controlled substancesMedications shall be administered only by qualified personnelstaff who have completed a medication management course. The type and amount of the medication, the time and date, and the staff member administering the medication shall be documented in the child’s record. (See IAC 620—8.16(204).)

    ITEM 85.    Amend subrule 114.12(17) as follows:    114.12(17) Self-administration of drugs.  There shall be written policy and procedures relative to self-administration of prescription medications by residents and only when:    a.    Medications are prescribed by a physicianor other authorized prescriber.    b.    The physician agreesor authorized prescriber provides written approval that the patientis capable of participating and can self-administer the drug.    c.    What is taken and when is documented in the record of the child.

    ITEM 86.    Adopt the following new subrule 114.12(18):    114.12(18) Obtaining nonprescription medications.  Facilities shall maintain a supply of standard nonprescription medications for use for children residing at the facility. Examples of standard nonprescription medications include cough drops and cough syrups, aspirin substitutes and other pain control medication, poison antidote, and diarrhea control medication.    a.    All nonprescription medications kept on the premises for the use of residents shall be preapproved annually by a licensed pharmacist or an authorized prescriber.    b.    Facilities shall maintain a list of all preapproved nonprescription medications. The list shall indicate standard uses, standard dosages, contraindications, side effects, and common drug interaction warnings. The facility administrator or the administrator’s designee shall be responsible for determining the scope of the list and brands and types of medications included.    c.    Only nonprescription medications on the preapproved list shall be available for use. However, the facility administrator or the administrator’s designee, in consultation with an authorized prescriber or licensed pharmacist, may approve use of a nonprescription medication that is not on the preapproved list for a specific child.

    ITEM 87.    Amend paragraph 114.13(3)"f" as follows:    f.    The child shall be allowed to send and receive mailunopened unless contraindicated.Contraindications, except those listed below, should be documented in the child’s file. The facility may require the child to open incoming mail in the presence of a staff member when it is suspected to contain contraband articles, or when there is money that should be receipted and deposited.

    ITEM 88.    Amend subrule 114.20(1) as follows:    114.20(1) Generally.  The facility shall have written policies regarding methods used for control and discipline of children which shall be available to all staff and to the child’s family. Agency staff shall be in control of and responsible for discipline at all times. Discipline shall not include the withholding of basic necessities such as food, clothing, or sleep.Discipline shall not be used for anyone other than a child whose actions resulted in consequences. Group discipline shall not be used because of actions of an individual child or other children.

    ITEM 89.    Amend subrule 114.20(3) as follows:    114.20(3) Physical restraint.  The use of physical restraint shall be employed only to prevent the child from injury to self, to others, or to property. Physical restraint must be conducted with the child in a standing position whenever possible.Each child has the right to be free from restraint and seclusion, of any form, used as a means of coercion, discipline, convenience, or retaliation.    a.    No staff person shall use any restraint that obstructs the airway of a child.    b.    Prone restraint is prohibited. Staff persons who find themselves involved in the use of a prone restraint when responding to an emergency must take immediate steps to end the prone restraint.    c.    If a staff person physically restrains a child who uses sign language or an augmentative mode of communication as the child’s primary mode of communication, the child shall be permitted to have the child’s hands free of restraint for brief periods unless the staff person determines that such freedom appears likely to result in harm to the child, others, or property.    d.    The rationale and authorization for the use of physical restraint and staff action and procedures carried out to protect the child’s rights and to ensure safety shall be clearly set forthdocumented in the child’s record by the responsible staff personsno later than the end of the shift in which the restraint was used.    e.    Documentation of restraint use shall include, but need not be limited to, the following:    (1)   Each use of restraint or control room.    (2)   The time the intervention began and ended.    (3)   The reason that required the resident to be restrained or put in a control room.    (4)   The name of staff involved in the intervention.

    ITEM 90.    Amend subrule 114.20(4) as follows:    114.20(4) Other restraintsand control room.  Only comprehensive residential facilities may use a control room, locked cottages,or mechanical restraints or chemical restraint.

    ITEM 91.    Adopt the following new subrule 114.20(6):    114.20(6) Time out.      a.    A resident in time out must never be physically prevented from leaving the time out area.    b.    Time out may take place away from the area of activity or from other residents, such as in the resident’s room, or in the area of activity of other residents.    c.    Staff must monitor the resident while the resident is in time out.

    ITEM 92.    Amend rule 441—114.21(237) as follows:

441—114.21(237) Illness, accident, death, orunauthorized absence from the facility.      114.21(1) Notification of illness.  A facility shall notify the child’s parent(s), guardian and responsible agency of any serious illness, incident involving serious bodily injury, or circumstances causing removal of the child from the facility, or elopement.    114.21(2) Notification of death.  In the event of the death of a child, a facility shall notify immediately the physician, the child’s parent(s) or guardian, the placing agency, and the appropriate state authority. The agency shall cooperate in arrangements made for examination, autopsy, and burial.       This rule is intended to implement Iowa Code section 237.2.

    ITEM 93.    Amend rule 441—114.22(237) as follows:

441—114.22(237) Records.  In the event of closure of a facility, children’s records shall be sent to the department of human services for retention according to thedepartment’s records retention policyor the period defined in the department’s contract for services, whichever is longer.       This rule is intended to implement Iowa Code section 237.2.

    ITEM 94.    Rescind rule 441—114.23(237) and adopt the following new rule in lieu thereof:

441—114.23(237) Unannounced visits.      114.23(1)   Frequency.    a.    Time.At least one annual unannounced visit shall occur during periods of the day when the child would normally be in the facility and awake.     b.    Activities.The visit shall include an assessment of, but not be limited to, the following areas:    (1)   Interaction between the staff and child.    (2)   Interaction between the children.    (3)   Discussion with the child about experiences in the facility.    (4)   A check on any previously cited deficiencies.    (5)   Overall impression of the facility.    (6)   Staff record checks.    c.    Recommendation.The licensing staff shall recommend follow-up when needed.    114.23(2)   Visits at other times may occur as a result of a self-reported incident or specific complaint.

    ITEM 95.    Renumber rule 441—114.24(237) as 441—114.25(237).

    ITEM 96.    Adopt the following new rule 441—114.24(237):

441—114.24(237) Record check information.  Record checks are required for any entity being considered for licensure or employment by a licensee on a facility campus where children reside to determine whether any founded child abuse reports or criminal convictions exist or whether the entity has been placed on a sex offender registry. The facility shall not employ any person who has been convicted of a crime involving the mistreatment or exploitation of a child. The facility shall not employ any person who has a record of a criminal conviction or founded child abuse report unless the department has evaluated the crime or abuse and determined that the crime or abuse does not merit prohibition of licensure, volunteering or employment.    114.24(1) Procedure.  Each entity being considered for licensure or employment shall be checked for all of the following:    a.    Records with the Iowa central abuse registry, using the request for child and dependent adult abuse information form;    b.    Records with the Iowa division of criminal investigation, using the department’s criminal history record check form;    c.    Records with the Iowa sex offender registry;    d.    Records with the child abuse registry of any state where the person has lived during the past five years; and,    e.    Fingerprints provided to the department of public safety for submission through the state criminal history repository to the United States Department of Justice, federal bureau of investigation, for a national criminal history check. Fingerprinting, for the purpose of a national criminal history check, is required for all entities considered for licensure or employment by a licensee on a facility campus where children reside.    114.24(2) Evaluation of record.  If an entity for which a background check is required has a record of founded child or dependent adult abuse, a criminal conviction, or placement on a sex offender registry, the department shall prohibit licensure or employment unless an evaluation determines that the abuse, criminal conviction, or placement on a sex offender registry does not warrant prohibition.     a.    Scope. The evaluation shall consider the nature and seriousness of the founded child or dependent adult abuse or criminal conviction report in relation to:     (1)   The position sought or held,     (2)   The time elapsed since the abuse or crime was committed,     (3)   The degree of rehabilitation,     (4)   The likelihood that the person will commit the abuse or crime again, and     (5)   The number of abuses or crimes committed by the person.     b.    Evaluation form. The person with the founded child or dependent adult abuse or criminal conviction report shall complete and return the department’s record check evaluation form within ten calendar days of the date of receipt to be used to assist in the evaluation.    114.24(3) Evaluation decision.  The department shall conduct the evaluation and make the decision of whether or not the founded child or dependent adult abuse or criminal conviction warrants prohibition of licensure or employment by a licensee. The department shall issue a notice of decision in writing to the requesting entity. The requesting entity is responsible for providing a copy of the notice to the prospective employee. Record check evaluations are valid for 30 days from the date the notice of decision is issued.

    ITEM 97.    Adopt the following new definition of “Locked cottage” in rule 441—115.2(237):        "Locked cottage" means an occupied comprehensive residential facility or an occupied unit of a comprehensive residential facility which is physically restrictive because of the continual locking of doors to prevent the children in care from leaving the facility.

    ITEM 98.    Amend rule 441—115.2(237), definitions of “Comprehensive residential facility” and “Secure facility,” as follows:        "Comprehensive residential facility" means a facility which provides care and treatment for children who are unable to live in a family situation due to social, emotional, or physical disabilities and who require varying degrees of supervision as indicated in the individual treatmentservice plan. Care includes room and board. Services include the internal capacity for individual, family, and group treatment. These services and others provided to the child shall be under the administrative control of the facility. Community resources may be used for medical, recreational, and educational needs. Comprehensive residential facilities have higher staff to client ratios than community residential facilities and may use control rooms, locked cottages,and mechanical restraints, and chemical restraints when these controls meet licensing requirements.        "Secure facility" means any comprehensive residential facility which employs, on a regular basis, locked doors or other physical meansbuilding characteristics intended to prevent children in care from leaving the facilitywithout authorization. Secure facilities may only be used for children who have been adjudicated delinquent or placed pursuant to provisions of Iowa Code chapter 229.

    ITEM 99.    Amend subparagraph 115.4(2)"b" as follows:    (1)   Provide at least weekly group or individually scheduled in-person conferences with each resident for whom the caseworker is responsible. More frequent in-person contact shall be provided if required in the careservice plan.

    ITEM 100.    Rescind rule 441—115.5(237) and adopt the following new rule in lieu thereof:

441—115.5(237) Casework services.  The facility shall have the internal capacity to provide individual, family and group counseling and shall provide, but not be limited to, casework dealing with crisis intervention, daily living skills, peer relationships, future planning and preparation for discharge.

    ITEM 101.    Amend subrule 115.6(4) as follows:    115.6(4) Use of restraint.      a.    A facility shall not use, apply, or administer restraint in any manner which causes physical injury.    b.    A facility shall not use restraint as a disciplinary or punitive measure, for staff convenience, or as a substitute for programming.    c.    A secure facility which uses any form of restraintpermitted by licensing standards, other than physical restraint, shall ensure that all direct service staff are adequately trained in the following areas:    (1)   The appropriate use and application or administration of each approvedpermitted form of restraint.    (2)   The facility’s policies and procedures related to restraint.    (3)   Crisis management techniques.    d.    A secure facility shall continually review any placement ofuse of a restraint on a child,in any form of restraint other than physical restraint. The facility shall release the child from restraint immediately when the situation precipitating restraint no longer exists.

    ITEM 102.    Amend subrule 115.7(2) as follows:    115.7(2) Written policies.  When acomprehensive residential treatment facility uses a control room as part of its treatment program, the facility shall have written policies regarding its use. The policy shall:    a.    Specify the types of behavior which may result in control room placement.    b.    Delineate the staff members who may authorize its use as well as procedures for notification of supervisory personnel.    c.    Require documentation in writing of the types of behaviors leading to control room placement and the conditions that will allow the child to return to the living unit. The child shall be informed of these conditions.    d.    Limit the utilization of the control room to one of the following two circumstances:    (1)   The child’s careservice plan includes and explains how this use of the control room fits into the treatmentservice plan for the child.    (2)   A one timeone-time placement in an emergency without a careservice plan outlining the rationale for its use. This treatment shall be included in the careservice plan for a second placement of a child in the control room.

    ITEM 103.    Amend subrule 115.7(4) as follows:    115.7(4) Use of control room.  The control room shall be used only when a less restrictive alternative to quiet or allowallowing the child to gain control has failed and when it is in the careservice plan. The following policies shall apply to the use of the control room:    a.    No more than one child shall be in a control room at any time.    b.    There shall be provisions for visual observation of the child at all times, regardless of the child’s position in the room.    c.    The control room shall be checked thoroughly for safety and the absence of contraband prior to placing the child in the room.    d.    The child shall be thoroughly checked before placement in the control room and all potentially injurious objects removed including shoes, belts, and pocket items. The staff member placing the child in the control room shall document each check.    e.    In no case shall all clothing or underwear be removed and the child shall be provided sufficient clothing to meet seasonal needs.    f.    A staff member shall always be within hearing distance ofpositioned outside of the control room, the child shall be visually checked by the staff at least every 15 minutes, and each check shall be recorded.Visual and auditory observations of the child’s behavior and condition shall be recorded at five-minute intervals, and a complete written report shall be documented in the child’s file by the end of the staff person’s work shift.    g.    The child shall remain in the control room longer than one hour only with consultation and approval from the supervisor. Documentation in the child’s case record shall include the time in the control room, the reasons for the control, and the reasons for the extension of time. Use of the control room for a total of more than 12 hours in any 24-hour period shall occur only after authorization of the psychiatrist or upon court order. In no case shall a child be in a control room for a period longer than 24 hours.    h.    The child’s parents or guardian and the referring worker shall be aware of the control room as a part of the treatment program.

    ITEM 104.    Amend subrule 115.8(3) as follows:    115.8(3) As one unit of treatment programPolicies.  When a facility utilizesLicensees utilizing a locked cottage as one unit of its treatment program, it shall haveand follow written policiesfor the locked cottage. The policies shall be provided to the child, the child’s parents or guardian and, when the child has an attorney, the child’s attorney at the time of admission. The policies shall include:    a.    The type of behavior which may result in locked cottage placement.    b.    The staff members who may authorize placement in the locked cottage as well as procedures for notification of supervisory personnel.    c.    RequirementRequirements for documentation in writing of particular behaviors of a particular child that led to the locked cottage placement.    d.    Requirement for documentation of the conditions that will allow the child to return to an unlocked cottage. These conditions shall be shared with the child.    e.    Requirement for documentation of the use of the locked cottage as a part of the treatment plan for a specific child.    f.    Specific policies as to the length of stay in the locked cottage.    g.    Requirements for notification of the child’s parents or guardian, the court, and the referring agency of a child’s placement in the locked cottage.    h.    Requirement for written documentation of placements in the locked cottage in the child’s case record.

    ITEM 105.    Amend rule 441—115.9(237) as follows:

441—115.9(237) Mechanical restraint.  When a facility uses mechanical restraints as a part of its treatment program, the facility shall haveand follow written policies regarding their use. These policies shall be approved by the licensor prior to their use. The policies shall be available to clients, parents or guardians, and referral sources at the time of admission. Policies shall also be available to staff.    115.9(1) Restrictions on mechanical restraints.      a.    Mechanical restraints shall not inflict physical injury.    b.    Each use of mechanical restraint shall be authorized by the administrator or case supervisor.    c.    Each authorization of mechanical restraint shall not exceed one hour in duration.    d.    No child shall be kept in mechanical restraint for more than two hours in a 12-hour period.    e.    Any time that a child is placed in mechanical restraint a staff person shall be assigned to monitor the placement with no duties other than to ensure that the child’s physical needs are properly met. The staff person shall remain in continuous auditory and visual contact with the child.    f.    Each child shall be released from mechanical restraint as soon as the restraints are no longer needed.    115.9(2) Continued use of mechanical restraints.  When a child requires mechanical restraint on more than four occasions during any 30-day period, the facility shall hold an immediate emergency meeting to discuss the appropriateness of the child’s continued placement at the facility.    115.9(3) In transporting children.  Notwithstandingparagraph 115.9(1)“d,” mechanical restraint of a child in case of a secure facility while that child is being transported to a point outside the facility is permitted when there is a serious risk of the child exiting the vehicle while the vehicle is in motion. The facility shall place a written report on each use in the child’s case record. This report shall document the necessity for the use of restraint.Seat belts are not considered mechanical restraints. Agency policies should encourage the use of seat belts while transporting children and comply with Iowa law.       This rule is intended to implement Iowa Code section 237.4.

    ITEM 106.    Renumber rule 441—115.10(237) as 441—115.12(237).

    ITEM 107.    Adopt the following new rule 441—115.10(237):

441—115.10(237) Restraint and control room use debriefing.      115.10(1) Initial discussion.  Within a short time after the use of the restraint or control room, staff involved in an intervention and the resident must have a face-to-face discussion except when the presence of a particular staff person may jeopardize the well-being of the resident.    a.    Other staff and the resident’s parent(s) or legal guardian(s) may participate in the discussion when it is deemed appropriate by the facility. The facility must conduct such discussion in a language that is understood by the resident’s parent(s) or legal guardian(s).     b.    The discussion must provide both the resident and staff the opportunity to discuss the circumstances resulting in the use of the restraint or control room and strategies to be used by the staff, the resident, or others that could prevent the future use of the restraint or control room.    115.10(2) Staff discussion.  Within 24 hours after the use of the restraint or control room, all staff involved in the intervention, and appropriate supervisory and administrative staff, must conduct a debriefing session that includes, at a minimum, a review and discussion of the intervention including, but not limited to, the following:    (1)   The emergency safety situation that required the intervention, including discussion of the precipitating factors that led up to the intervention;    (2)   Alternative techniques that might have prevented the use of the restraint or control room;    (3)   The procedures, if any, that staff are to implement to prevent any recurrence of the use of the restraint or control room; and    (4)   The outcome of the intervention, including any injuries that may have resulted from the use of the restraint or control room.    115.10(3) Documentation.  Staff must document in the resident’s record that both debriefing sessions took place and must include in that documentation the names of staff who were present for the debriefing, the names of staff who were excused from the debriefing, and any reasons that are applicable.

    ITEM 108.    Adopt the following new rule 441—115.11:

441—115.11(237) Chemical restraint.  Chemical restraint shall not be utilized in a comprehensive residential facility and each comprehensive residential facility shall have written policies that clearly prohibit the use of chemical restraint.

    ITEM 109.    Amend 441—Chapter 116, title, as follows:LICENSING AND REGULATION OF RESIDENTIAL FACILITIES FOR CHILDREN WITH AN INTELLECTUAL DISABILITYOR BRAIN INJURY

    ITEM 110.    Amend rule 441—116.1(237) as follows:

441—116.1(237) Applicability.  This chapter relates specifically to the licensing and regulation of residential facilities serving children with an intellectual disabilityor brain injury. Refer to 441—Chapter 112 for basic licensing and regulation of all foster care facilities, 441—Chapter 114 for definitions and minimum standards for all group living foster care facilities, including community care facilities, and 441—Chapter 115 for definitions and standards for comprehensive residential facilities for children. Chapters 112 and 114 apply to community residential facilities for children with an intellectual disabilityor brain injury and Chapters 112, 114 and 115 apply to comprehensive residential facilities for children with an intellectual disabilityor brain injury with the exception of the areas discussed specifically in this chapter.       This rule is intended to implement Iowa Code chapter 237.

    ITEM 111.    Amend rule 441—116.2(237), definitions of “Community residential facility for children with an intellectual disability” and “Comprehensive residential facility for children with an intellectual disability,” as follows:        "Community residential facility for children with an intellectual disabilityor brain injury" means a community residential facility as defined in rule 441—114.2(237) which serves children with an intellectual disability as defined in Iowa Code chapter 222or brain injury as defined in Iowa Code chapter 225C.        "Comprehensive residential facility for children with an intellectual disability" means a comprehensive residential facility as defined in rule 441—115.2(237) which serves children with an intellectual disability as defined in Iowa Code chapter 222or brain injury as defined in Iowa Code chapter 225C.

    ITEM 112.    Amend rule 441—116.5(237) as follows:

441—116.5(237) Program components.  In addition to the requirements of 441—subrule 114.8(3), the facility shall define in writinghave and follow a written procedure that defines who is responsible for overseeing personal hygiene of children and maintaining general orderliness of the facility.       This rule is intended to implement Iowa Code section 237.3.

    ITEM 113.    Amend rule 441—116.6(237) as follows:

441—116.6(237) Restraint.  In addition to the provisions of 441—Chapters 114 and 115, a restraint may be used as stated in the child’s individual careservice plan as approved by the parent or guardian, caseworker, and facility as long as that facility meets the standards for utilizing that particular type of restraint.       This rule is intended to implement Iowa Code section 237.4.
ARC 4622CInsurance Division[191]Notice of Intended Action

Proposing rule making related to surplus lines insurers and rules review updates and providing an opportunity for public comment

    The Insurance Division (Division) hereby proposes to amend Chapter 21, “Requirements for Surplus Lines, Risk Retention Groups and Purchasing Groups,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 515E.14 and 515I.15.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapter 515E and chapter 515I as amended by 2019 Iowa Acts, Senate File 558.Purpose and Summary    The Division proposes to amend the current rules in Chapter 21 as part of the Division’s five-year review of rules and to implement the changes in 2019 Iowa Acts, Senate File 558, which allows for domestic surplus lines insurers to be eligible surplus lines insurers. Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    The Division’s general waiver provisions of 191—Chapter 4 apply to these rules. Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Division no later than 4 p.m. on September 23, 2019. Comments should be directed to: Tracy Swalwell Iowa Insurance Division Two Ruan Center 601 Locust Street, Fourth Floor Des Moines, Iowa 50309 Phone: 515.725.1249 Fax: 515.281.3059 Email: tracy.swalwell@iid.iowa.govPublic Hearing     A public hearing at which persons may present their views orally or in writing will be held as follows: September 23, 2019 10 to 11 a.m. Division Offices, Fourth Floor Two Ruan Center 601 Locust Street Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Division and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Amend 191—Chapter 21 as follows: CHAPTER 21REQUIREMENTS FOR SURPLUS LINES, RISK RETENTION GROUPS AND PURCHASING GROUPS[Prior to 10/22/86, Insurance Department[510]]

191—21.1(515E,515I) Definitions.  In addition to the definitions provided in Iowa Code chapters 515E and 515Ias amended by 2019 Iowa Acts, Senate File 558, the following definitions shall apply to this chapter, unless the context clearly requires otherwise:        "Division" means the Iowa insurance division, supervised by the commissioner pursuant to Iowa Code section 505.8, in the division’s performance of the duties of the commissioner under Iowa Code chapters 515E and 515I.        "Division’s Web sitewebsite" means the Web sitewebsite of the Iowa insurance division, www.iid.iowa.goviid.iowa.gov.        "Place" "places" means obtaining insurance for an insured with a specific insurer.

191—21.2(515I) Eligible surplus lines insurer’s duties.      21.2(1) Insurer liable.  Where, pursuant to Iowa Code chapter 515I, coverage is placed with an eligible surplus lines insurer, but the surplus lines insurance producer fails to pay to the state of Iowadivision the premium tax required by Iowa Code section 515I.3(2) and rule 191—21.3(515)191—21.3(515I), the eligible surplus lines insurer shall be liable formust pay the premium tax required by Iowa Code chapter 515I and this chapter.    21.2(2) How premium tax quoted.  An eligible surplus lines insurer or a brokersurplus lines producer for an eligible surplus lines insurer is authorized to quote a premium which includes tax as is required by Iowa Code chapter 515I, and thereafter no additional tax amount may be charged or collected. Premium tax may be stated in the contract of insurance as a separate component of the total premium only when the premium is not based upon rates or premiums which included a premium tax component when promulgated. Any fees collected from residents of this state are considered part of the premium and thus are subject to taxation.

191—21.3(515I) Surplus lines insurance producer’s duties.      21.3(1) Surplus lines insurance producer’s collection of tax.  A surplus lines insurance producer who places insurance with an eligible surplus lines insurer shallmust collect premium tax from the eligible surplus lines insurer by withholding 1 percent of the premiums for such tax.    21.3(2) Electronic reporting of premium tax.  A surplus lines insurance producer who places insurance with an eligible surplus lines insurer shallmust file electronically the premium tax information with the division, as instructed on the division’s website, on or before March 1 for policies issued during the preceding calendar year.    21.3(3) Annual report.  On or before March 1 of each year, every surplus lines insurance producer who has placed insurance with an eligible surplus lines insurer when the policies have been issued during the preceding calendar year shallmust file electronically with the division, or as otherwise directed by the division, a sworn reportand supporting documentation, as instructed on the division’s website, which may include evidence of a diligent search required pursuant to Iowa Code section 515I.3, of all such business written during the preceding calendar year and shallmust submit the amount to cover the taxes due on all such business.The manner of filing electronically and the content of the report and required supporting documentation are listed on the division’s website. If no business was writtenissued during the preceding calendar year, no report is required. Failure to file an annual report or pay the taxes imposed by Iowa Code chapter 515I will be deemed grounds for the revocation of a surplus lines insurance producer’s license by the division, and failure to file an annual report or pay taxes within the time requirements of this rule will subject the surplus lines insurance producer to the penalties of Iowa Code section 515I.12.

191—21.4(515I) Surplus lines insurance producer’s duty to insured.  A surplus lines insurance producer who places coverage with an eligible surplus lines insurer as defined in Iowa Code section 515I.2 shallmust deliver to the insured, within 30 days of the date the policy is issued, a notice that states the following: “This policy is issued, pursuant to Iowa Code chapter 515I, by a nonadmitted companyan eligible surplus lines insurer in Iowa and as such is not covered by the Iowa Insurance Guaranty Association.” A surplus lines insurance producer may comply with this rule by verifying disclosure of this language in a clear and conspicuous position on the policy or by electronic delivery authorized by Iowa Code chapter 505B, if the method of delivery of the notice allows the division, the surplus lines insurance producer and the intended recipient to verify receipt of the specific notice.

191—21.5(515I) Procedures for qualification and renewal of a nonadmitted insurer as an eligible surplus lines insurer.      21.5(1) Application and procedures for initial qualification of a nonadmitted insurer as an eligible surplus lines insurer.      a.    Any nonadmitted insureror domestic surplus lines insurer who wishes to qualify under Iowa Code chapter 515I as an eligible surplus lines insurer shallmust make an applicationwith the division, as instructed on the division’s website.    b.    The nonadmitted insurer’s application shallmust contain the following information, which also is listed on the division’s Web sitewebsite:    (1)   A completed National Association of Insurance Commissioners(NAIC) form as follows, available through the division’s website or NAIC website, www.naic.org/industry, or another form as prescribed by the division:    1.   For a nonadmitted insurer, a NAICUniform Certificate of Authority Application (NAIC UCAA) Expansion Application, available through the division’s Web site or through the NAIC Web site, www.naic.org/industry.; or    2.   For a domestic surplus lines insurer, a NAIC UCAA Primary Application.    (2)   The name of an Iowa-licensedIowa residentsurplus lines insurance producer qualified in Iowa to write surplus lines insurance, whom the nonadmitted insurer is designating as the person to accept inquiries and notices on behalf of the nonadmitted insurer.    (3)   Remittance ofPayment of the greater of a $100 filing fee or a retaliatory fee, and a $500an examination fee for all new applicants.    (4)   Demonstrated maintenance of the capital and surplus required pursuant to Iowa Code chapter 515I.    c.    In addition to the above requirements, thenonadmitted insurer shall:(1)   Maintain the greater of either minimum capital and surplus of $5 million or risk-based capital pursuant to Iowa Code chapter 521E, and(2)   Havemust have been actively in operation for at least three years without significant changes in ownership or management during the three-year period.These financial and management requirements may be waived by the division upon a finding that the insurer will be offering coverage in a line of insurance for which there is an unavailability of capacity and an extraordinary need for coverage in this state. The division may require other information as deemed necessary.    21.5(2) Procedures for renewal of a nonadmittedan insurer as an eligible surplus lines insurer.  A nonadmittedAn eligible surplus lines insurer that is not an alien insurer as defined in Iowa Code section 515.70 and that was approved by the division as an eligible surplus lines insurer shall,except for an alien insurer under Iowa Code section 515I.2(7)“b,” must by March 1 of each year following the year of approval:    a.    Continue to complyBe in compliance with paragraph 21.5(1)“c”subparagraph 21.5(1)“b”(4);    b.    Paythe greater of a $100 renewal feeor a retaliatory fee; and    c.    Submit to the division the documents and materials listed on the division’s Web sitewebsite.    21.5(3) Periodic reporting.  An eligible surplus lines insurer, except for an alien insurer under Iowa Code section 515I.2(7)“b,” must submit quarterly financial statements to the division as instructed on the division’s website.    21.(3) 21.5(4) Failure to complywith renewal procedures.  Failure of a nonadmittedan eligible surplus lines insurer to timely submit therenewal materials required in this rule or to otherwise fail to comply with this rule shallby subrule 21.5(2) will result in theautomatic termination of the nonadmitted insurer’s status as an eligible surplus lines insurer.

191—21.6(515E) Procedures for qualification as a risk retention group.      21.6(1)   Any insurer who wishes to register under Iowa Code chapter 515E as a risk retention group shall file with the division an application that contains:    a.    TheMust file with the division an application that contains information required by Iowa Code section 515E.4, which also is listed on the division’s Web sitewebsite; and    b.    RemittancePay the greater of a $100 filing fee plus any additionalor a retaliatory feesfee and, for all new applicants, an examination fee.    21.6(2)   A risk retention group shallmust pay a $100 renewal fee by March 1 of each year following the year of registration. The risk retention group shallmust annually provide information requested by the division for determination of continued registration.

191—21.7(515E) Risk retention groups.  A risk retention group as defined in Iowa Code chapter 515E may utilize its producers to report and pay premium taxes or may pay the taxes directly. If producers are utilized, the producers shallmust file the premium tax information electronically with the division through the division’s Web sitewebsite on or before March 1 for policies issued during the preceding calendar year.

191—21.8(515E) Procedures for qualificationregistration as a purchasing group.      21.8(1)   Prior to doing business in this state, a purchasing group shallmust furnish to the division notice that shall includeincludes:    a.    The information set forth in Iowa Code section 515E.8, which also is listed on the division’s Web sitewebsite; and    b.    Designation of the commissioner for service of process, as set forth in Iowa Code section 515E.8(3); and    b.    c.    Remittance of a $100 filing fee.    21.8(2)   A registered purchasing group shallmust pay a $100 renewal fee by March 1 of each year following the year of registration. The purchasing group must provide information requested by the division for determination of continued registration.

191—21.9(515E,515I) Failure to comply; penalties.  Failure of a producer, surplus lines insurance producer, insurer, risk retention group or purchasing group to comply with this chapter or with Iowa Code chapters 515E and 515I may subject the producer, surplus lines insurance producer, insurer, risk retention group or purchasing group to penalties set forth in Iowa Code chapterchapters507B, 515Eorand515I.       These rules are intended to implement Iowa Code sections 515.120 to 515.122chapters 515I and 515E.
ARC 4617CRacing and Gaming Commission[491]Notice of Intended Action

Proposing rule making related to sports wagering and fantasy sports contests and providing an opportunity for public comment

    The Racing and Gaming Commission hereby proposes to amend Chapter 1, “Organization and Operation,” Chapter 3, “Fair Information Practices,” Chapter 4, “Contested Cases and Other Proceedings,” Chapter 5, “Track, Gambling Structure, and Excursion Gambling Boat Licensees’ Responsibilities,” Chapter 6, “Occupational and Vendor Licensing,” and Chapter 8, “Wagering, Simulcasting and Advance Deposit Wagering,” and to adopt new Chapter 13, “Sports Wagering,” and Chapter 14, “Fantasy Sports Contests,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 99D.7 and 99F.4 and 2019 Iowa Acts, Senate File 617, sections 21, 28, and 44.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 99D and 99F and 2019 Iowa Acts, Senate File 617.Purpose and Summary    The amendments proposed in this rule making implement 2019 Iowa Acts, Senate File 617, which became effective May 13, 2019, and which authorizes sports wagering and fantasy sports contests in Iowa. This rule making is intended to provide a framework and guidance to all industry participants and to protect the public and ensure the integrity of licensed facilities and participants.   These amendments also reconcile existing rules with the new legislation and provide two new chapters of rules, Chapters 13 and 14.Fiscal Impact    The Commission will use existing budget and resources to implement these rules, including specific appropriations made during the 2019 Legislative Session for such purposes. Jobs Impact    After analysis and review of this rule making, the Commission finds that the rule making is likely to have a positive jobs impact, which is difficult to measure at this time.Waivers    These rules do not include a provision for the waiver of a rule because the Commission’s general waiver rules in 491—Chapter 1 apply.Public Comment    Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Commission no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Barb Blake Iowa Racing and Gaming Commission 1300 Des Moines Street Des Moines, Iowa 50309 Email: barb.blake@iowa.govPublic Hearing    A public hearing at which persons may present their views orally or in writing will be held as follows: September 17, 2019 9 a.m. Commission Office, Suite 100 1300 Des Moines Street Des Moines, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Commission and advise of specific needs. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Emergency Rule Making Adopted by Reference    This proposed rule making is also published herein as an Adopted and Filed Emergency rule making (see ARC 4618C, IAB 8/28/19). The purpose of this Notice of Intended Action is to solicit public comment on that emergency rule making, whose subject matter is hereby adopted by reference.

ARC 4630CRegents Board[681]Notice of Intended Action

Proposing rule making related to merit system rules and providing an opportunity for public comment

    The Regents Board hereby proposes to amend Chapter 3, “Personnel Administration,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 262.9(3).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 8A.413 and 262.9.Purpose and Summary    The following amendments are proposed after feedback and internal review. As a result of changes to Iowa Code chapter 20 in February 2017, a review and amendments to the merit rules are necessary to account for these changes as well as to ensure that the rules are up to date to accurately reflect the needs and practices of the institutions.    Items 1, 2, 4, 5, 6, 12, 14, 23, 24, 26, 27, 31, 32 and 34 include nonsubstantive changes to verbiage and definitions to reflect current terminology commonly used in human resources.    Items 3, 25, 30, and 33 include updated references to state or federal laws, Board of Regents or institutional policies or any combination of the above.    Item 7 removes language concerning subsistence and maintenance allowances; includes the approval process for the resident director in appointments based on exceptional qualifications; removes language relating to the reporting of salary adjustments of other merit employees to the merit system director; removes merit increase language and replaces it with guidelines on the updated merit system salary increase procedures; amends pay on demotion language to allow the merit system director to provide an extension for extraordinary circumstances; adds language that allows rewards for exceptional performance not to exceed a certain percentage; sets the minimum rates, increases and decreases for the pay for trainees and apprentices; amends language to reflect that veterans’ pay is set by federal law; and adds a new subrule on discretionary pay increases for permanent employees.    Items 8, 10, 11, and 35 adopt new rules to implement the Iowa Code.    Item 9 includes new language concerning recruitment announcements.    Item 13 reduces the number of eligibility lists from three to two and allows the resident director to determine the duration of the eligibility lists.    Items 15, 16, 19, and 20 rescind requirements related to certification of eligibility lists.    Items 17 and 18 revise language addressing appointments.    Item 21 removes language addressing layoffs and dismissal during an employee’s probationary period.    Item 22 rescinds language governing transfers.    Item 28 clarifies that appeals under rule 681—3.128(8A) are not arbitrable beyond Step 3.    Item 29 extends the number of days for each step of the grievance procedure.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to rule 681—19.18(17A). Public Comment    Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Board no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Aimee Claeys Board of Regents 11260 Aurora Avenue Urbandale, Iowa 50322 Phone: 515.281.6456 Email: aimee.claeys@iowaregents.eduPublic Hearing    No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend 681—Chapter 3, title, as follows:PERSONNEL ADMINISTRATIONREGENTS HUMAN RESOURCES MANAGEMENT—MERIT SYSTEM RULES

    ITEM 2.    Amend rule 681—3.1(8A) as follows:

681—3.1(8A) Creation and purpose.  The purpose of these rules is to give effect to the provisions of Iowa Code Supplement chapter 8A, subchapter IV, related to merit staff employment to establish an efficient, effective and uniform system of personnelhuman resources administration for board of regents institutions and staff, to provide equal employment opportunity for all and career opportunities comparable to those in business and industry.

    ITEM 3.    Amend rule 681—3.2(8A) as follows:

681—3.2(8A) Covered employees.  Allmerit staff employees of the board of regents, except those exempted by Iowa Code section 8A.412(5), will be covered under the rules of this system.In accordance with Iowa Code section 8A.412(5), the merit system includes employees not employed as president, dean, director, teacher, professional and scientific staff or student employee of the state board of regents.

    ITEM 4.    Amend rule 681—3.3(8A) as follows:

681—3.3(8A) Administration.  Under authority of the board of regents and the supervision of its executive director, a merit system director will be appointed who will be responsible for the development, operation and evaluation of the system in compliance with the objectives and intent ofcertain provisions of Iowa Code Supplement chapter 8A, subchapter IV, related to merit staff employment and regent meritboard of regents policies and rules. At each board of regents institution the head thereof will designate an administrator to serve as resident director of the system. The resident director will be responsible through the chief executive at the institution for conducting a program of personnelhuman resources administration in accordance with these rules. The merit system director shall review the operation of the merit system at each of the institutions and will be responsible for the direction of the merit system and have the authority to ensure the uniform administration of the merit system underconsistent with the provision of these rules.    3.3(1) Records and reports.  The resident directors will maintain an individual fileappropriate documentation on each employee that will include a record of all personnel transactions affecting that individualthe individual’s employment. The resident directors will also maintain records on operations conducted under these rules and will periodically as requested, and at least annually, report a summary of such operations to the merit system director, and in addition will prepare other reports as may be required by the merit system director to indicate compliance with applicable regents and state requirements and federal standards. The resident director will establish, in cooperation with employing departments, a program that will provide for the regular evaluation, at least annually, of the qualifications and performance of all employeesconsistent with board and institutional policies.    3.3(2) Nondiscrimination.  All programs and transactions administered under these rules will be conducted on the basis of merit and fitness without discrimination or favor because of political or religious opinions or affiliations or national origin, race, sex, creed, color, disability or age except as prescribed or permitted under state and federal law, nor any discrimination protections by law, regulation, or board of regents or institutional policies.    3.3(3) Political activity.  Nomerit employees covered under this system will engage in any partisan political activity that is prohibited by law; employees will have the right to freely express their views asprivate citizens and to cast their vote; coercion of employees for political purposes and the use of employees’ positions for political purposes will be prohibited.Those employees who are by law subject to the provisions of the federal Hatch Actand successor legislation will be informed of such provisions by the resident director at their institution and will be required to adhere thereto.    3.3(4) Revisions and additions.  In accordance with the provisions of Iowa Code Supplement chapter 8A, these rules may be revised at any time. In addition, supplementary rules subject to Iowa Code chapter 17A, not inconsistent with these rules may be made applicable to any department, program or service, whenever such additional merit system provisions are required as a condition of eligibility for federal funds.    3.3(5) Suspension of merit increases.  During any period of time when merit increases provided under these rules are temporarily suspended by legislative action, the rules providing for such increases shall be suspended for the duration of that legislative mandate. The merit system director shall provide for the administration of such suspension and shall ensure the maintenance of necessary information at each board of regents institution as would be necessary for reinstatement of such increases following the temporary suspension. Reinstatement of such increases shall be authorized by the board upon the recommendation of the merit system director and may include a delay in increases to promote equity among employees. Any such delay, however, cannot exceed one year and must be applied uniformly throughout the system to all employees with like seniorityperformance and length of employment in the system, or in classification of position, or other specified categorization.       This rule is intended to implement Iowa Code section 262.9.

    ITEM 5.    Amend rule 681—3.14(8A) as follows:

681—3.14(8A) Definitions.          "Active service" is a period of paid employment performing the duties of the position.        "Advanced starting rate" is a rate onwithin the pay grade which is greater than the minimum rate of the pay grade for a specific class as provided for in the approved pay plan.        "Background check" is the process of collecting and verifying relevant information for an individual’s employment.        "Base pay" means the employee’s rate of pay exclusive of extraany supplemental pay such as lead worker pay, pay for shift differential, pay for special assignment, on-call pay, call back pay, or any other incentive premium pay.        "Board" means board of regents.        "Certification" means the referral of qualified applicants from an eligibility register to a department for the purpose of making a selection in accordance with these rules.        "ClassClassification" means one or more positions, which are sufficiently similar in duties and responsibilities, that each position in the group can be given the same job title and require the same minimum qualifications as to education and experience, and that the same schedule of pay can be applied with equity to all positions in the classclassification under the same or substantially the same employment conditions.        "Classification appeal" is the act of contesting the classification or reclassification of a position as determined by the merit system director after a review of the duties and responsibilities of the position.        "Classification review" is the process initiated by a permanent employee or department head requesting review of the classification of the employee’s position.        "Classify" means to make the original assignment ofassign a position to an appropriate classclassification on the basis of the duties and responsibilities assigned and to be performed.        "Days" means workingcalendar days unless designated otherwise.        "Demotion" means a change of an employee from a position in a given classification to a position in a classification having a lower pay grade. Demotion may be voluntary,be involuntary, or result from a reclassification of a position.        "Department" "employing department" is a unit or division with a regents institution defined locally by each institution.        "Designee" is an individual who has been selected to act on behalf of a designated authority under these rules.        "Eligibility lists" are lists of the names of qualified applicants for a particular class.        "Eligibility register" consists of the names of the applicants from the appropriate eligibility list who are certified for a specific vacancy.        "Examination" is the screening of applicants.        "Grievance" is a dispute or complaint concerning the interpretation or application of merit system or institutional rules governing terms of employment and working conditions.        "Lateral transfer" means a change from a position in one classclassification to a different position in the same classclassification or another classclassification in the same pay grade.        "Maximum rate" is the final value of the pay grade to which a classification is assigned. A “red-circled” rate is above the maximum.        "Merit increase" is the increment within the pay grade, as established by the board, by which an employee’s pay will be raised at specified times during employment.        "Minimum rate" is the minimum value of the pay grade to which a classification is assigned. It is less than an “advanced starting rate.”        "Pay grade" "grade" is the numerical designation on the pay schedule to which individual classesclassifications are assigned.        "Permanent employee" is an employee who has completed the initial probationary period and thereby acquired permanent status in accordance with the rules of the system.        "Position" means a group of specific duties, tasks and responsibilities assigned to be performed by one employee. A position may be 12-month or less, full-time or part-time, temporary or permanent, occupied or vacant.        "Probationary period" is a six-month period to determine an employee’s fitness for the position. A probationary period is required for an original appointment, reinstatement, reemployment to a class not previously held, promotion, voluntary demotion out of series or lateral transfer out of classclassification.        "Promotion" means a change in status of a permanent classified employee from a position in a classification to another position in a classification having a higher pay grade.        "Reclassify" means to make a change in the classification of a position by raising it to a higher, reducing it to a lower, or moving it to another classclassification of the same level on the basis of significant changes in the kind or difficulty of the tasks, duties, and responsibilities in such position, or because of an amendment to the classification plan, and officially assigning to that position the classclassification title for such appropriate classclassification.        "Reduction in force" is apermanent layoffor an involuntary reduction in time resulting from a shortage of funds or work, a material change in duties or organization or abolishment of one or more positions.        "ReemploymentRecall" is the reappointment of an employee from a reemployment register. An employee may be placed on a reemployment registerwho terminated as a result of (1) layoff or voluntary demotion in lieu of layoff, or (2) medically related disability leave and exhaustion of vacation and medically related disability leave credits, or (3) failure to pass a subsequent probationary period on a promotion, lateral transfer out of classclassification, or demotion out of series.        "Reinstatement" is the reappointment of a permanent employee who has resigned in good standing.        "Resident director" is the person appointed by the head of each regents institution to administer the merit system rules at that institution.The resident director may appoint one or more designees authorized to administer the merit system rules.        "Step" is the value established through the collective bargaining process or by the merit system director for the purposes of applying the rules on compensation and the setting of advanced starting rates.        "Suspension" is an enforced leave of absence with or without pay for purposes of conducting an investigation or as a disciplinary measure.        "Trainee" "apprentice" is an employee participating in a specified training program during a fixed period of time in order to meet the minimum qualifications required for a classification.

    ITEM 6.    Amend rule 681—3.26(8A) as follows:

681—3.26(8A) Administration of the classification plan.  The merit system director will direct the uniform administration of the classification plan. Resident directors may recommendnew classifications and reclassificationschanges to existing classifications. Employing departments and employees may appeal classification and reclassification in accordance with 681—3.127(8A) of these rules.The merit system director, in consultation with the resident directors and subject to the approval of the board of regents, may establish new classes and change or abolish existing classes which affect the merit system pay plan in order to meet the needs of the institutions and to properly reflect changes in work and the organization thereof. When the changes do not affect the pay plan of the merit system, the merit system director may, in consultation with the resident directors, change existing classes and report such changes annually to the board of regents. When the classification of a position is changed, the incumbent will be entitled to continue service in the position provided the incumbent meets the minimum qualifications or provided the duties have not changed appreciably. If the incumbent is not eligible to continue, the incumbent may be transferred, promoted, demoted or laid off in accordance with the rules. Changes in classification will not be used to avoid other provisions of these rules relating to layoffs, promotions, demotions and dismissal.A review of individual classifications, class series, or group of classes may be initiated by the merit system director on a systemwide basis. The administrative review shall preempt the classification appeal procedure provided in 681—3.127(8A) of these rules. Changes in the classification of positions resulting from a systemwide review shall be effective at the beginning of the next fiscal year unless the merit system director establishes an earlier date for implementation.       This rule is intended to implement Iowa Code Supplement sections 8A.412(5) and 8A.413.

    ITEM 7.    Amend rule 681—3.39(8A) as follows:

681—3.39(8A) Administration of the pay plan.  Within the provisions of these rules, the pay plan will be uniformly administered by the resident directors under the direction of the merit system director for all classes in the system. Except as otherwise provided in these rules and in the pay plan, all employees will be paid between the minimum and maximum of the pay grade to which the employee’s classclassification is assigned and such pay will constitute the total cash remuneration the employee receives for the employee’s work in that position. Perquisites such as subsistence and maintenance allowances will be considered a part of pay and the value of such will be deducted from an employee’s rate of pay. Any employee who is approved for participation in a phased retirement program as provided for by state law and regent policy shall have the salary provided under these rules adjusted as specified by such law and regent policy.    3.39(1) Entrance salaries.  The entrance salary for an employee in any position under this system will be the minimum salary of the pay grade to which that classclassification is assigned or in accordance with the approved pay plan, except as provided for the following:    a.    Appointment based on a scarcity of qualified applicants.At the request of an institution and on the basis of economic or employment conditions which make it difficult or impossible to recruit at the minimum rate of the pay grade to which a classclassification of position is assigned, a resident director, subject to approval by the merit system director, may authorize for a designated period of time recruitment for that classclassification at a rate higher than the minimum. Where such a higher entrance rate is authorized all employees in the same classclassification and in the same geographical area, who are earning less than the higher entrance rate, will be increased to that higher rate.    b.    Appointment based on exceptional qualifications.Employees whose qualifications substantially exceed the minimum required for the classclassification or who possess outstanding experience relative to the demands of the position may, at the request of an employing departmentand upon approval by the resident director, be appointed at a rate higher than the minimum, provided that the pay of all other employeesin the same classification as defined in 3.104(4)“e” with similar qualifications working under the same conditions at the same institution are raised to that higher rate. SuchThese appointmentsalong with any salary adjustments required of other employees other than the appointee must be approved by the resident director and reported to the merit system director. Such appointments which necessitate the adjustment of the salaries of employees other than the appointee will, in addition, be reported to the merit system director.Increases authorized and granted to other employees as the result of appointments based on the scarcity of qualified applicants, 3.39(1)“a,” or appointments based on exceptional qualifications, 3.39(1)“b,” will establish new merit review dates for affected employees.    c.    Appointments based on prior service at the institution.Employees who were employed by an appointing institution in a nonmerit system position and who performed duties of the same character and responsibility as the merit classclassification to which they are being appointed may be paid at a rate higher than the minimum reflecting prior service in a comparable position. Such appointments must be approved by the resident director and reported to the merit system director.    3.39(2) Merit increases.  Permanent and probationary employees will be eligible for a merit increase following one year of satisfactory performance in their assigned classification with the exception that permanent and probationary employees paid at the minimum of a pay grade will be eligible for a merit increase upon completion of 6 months of satisfactory service in their assigned classifications and every 12 months thereafterEmployees with satisfactory performance shall be eligible to receive a merit increase upon completion of their minimum pay increase eligibility period. The minimum pay increase eligibility period for employees shall be 12 months from their last performance review, except that it shall be 6 months for an employee who is appointed, promoted, or reclassified and paid at the minimum rate for their assigned pay grade. Failure to conduct a performance review shall result in the employee being deemed to have performed satisfactorily during this period. No merit increase will be granted above the maximum of the pay grade. The period of satisfactory performance will be measured from the last merit review date if such a date has been established. Merit increases in pay will not be made retroactively, but may be denied or deferred by the employing department on the basis of work performance. Employees whose merit increases are denied or deferred will, prior to the scheduled effective date of increase, be informed of such action by a written statement from their employing department which specifies the reasonreason(s) for the denial or deferralaction. Denials or deferralsDeferrals of a merit increase for six months or less for reason of unsatisfactory work performance will not result in the establishment of a revised merit review date.Deferrals resulting from leaves of absence without pay or layoff exceeding 30 calendar days will cause a change of the merit review date equal to the time away from work.    3.39(3) Pay on promotion.  An employee who is promoted will be moved to the minimum rate of the new grade, or to aan equal or higher rate onin the new grade which provides an adjustment, to the employee’s present base pay, that is the salary equivalent of no less than one step higher but, at the discretion of the institution,that is no greater than 5 percenthigher than the employee’s current base pay without approval of the merit system director. In no event will the adjustment result in pay above the maximum of the new grade.If the promotion involves movement to a new grade that is three or more grades higher than the employee’s present grade, the resident director may approve, on written request from the employing department, an increase, to the employee’s present base pay, that is equivalent to the value of no less than two steps higher but, at the discretion of the institution,of no greater than 10 percent without the approval of the merit system director.For the purpose of calculating the promotional increase, any extra pay such as shift differential pay, pay for special assignment,pay for lead worker status, on-call pay, pay for overtime, or pay for call back shall be excluded as part of the employee’s present base pay. The merit review dateminimum pay increase eligibility period will be computed from the effective date of promotion and in accordance with 3.39(2). Pay on promotion in accordance with the provisions of 3.39(1)“b” may be authorized by a resident director and will be reported to the merit system director.    3.39(4) Pay on demotion.  Upon recommendation by the department head, and with the prior approval of the resident director, the pay of an employee who is demoted will be set at any rate within the new pay grade that does not exceed the rate at which the employee was paid in the position from which the employee was demoted. Merit review dateexcept as provided in 3.39(1)“b.” Minimum increase eligibility period will not change.If the salary of an employee who is demoted as the result of the reclassification of the employee’s position exceeds the maximum salary of the pay range to which the new classification is assigned, at the discretion of the employing department and with the approval of the resident director, the salary may be “red-circled” for a period not to exceed one year. An extension not to exceed one additional year may be approved by the merit system directorThe resident director may request an extension be approved by the merit system director due to extraordinary circumstances for a designated period of time.If an employee accepts voluntary demotion in lieu of layoff, the salary shall be retained providing funding is available. In no event will the salary exceed the maximum of the new pay grade.    3.39(5) Pay on reinstatement, reemployment or return from leave.      a.    An employee who is reinstated will be paid at a rate no greater than what the employee was last paid and between the minimum and maximum of the pay grade. An employee who is returned to a merit system position from a professional position, will be paid in accordance with subrule 3.39(4), pay on demotion. The date of reinstatement will be the merit review date.    b.    An employee who is reemployed to the previously occupied class will be paid at a rate no greater than what the employee was last paid and between the minimum and maximum of the pay grade. When a merit increase has been granted to an employee in a position taken through voluntary demotion in lieu of layoff and the merit increase results in a higher rate of pay than last paid to the employee prior to the voluntary demotion in lieu of layoff, the employee may be reemployed to the previously occupied class with the higher rate of pay. Reemployment to the previously occupied class from a position taken as a voluntary demotion in lieu of layoff will not be considered a promotion. The merit review date will not change as a result of the voluntary demotion in lieu of layoff, nor as a result of reemployment to the previously occupied class from a position taken as a voluntary demotion in lieu of layoff.    c.    An employee who is reappointed to the previously occupied position or a position in the same class on conclusion of a leave without pay will be paid in accordance with the provisions concerning pay on reemployment as provided above.    3.39(6) Pay for special assignment.  Provided an employee is granted special assignment in accordance with 3.102(2),of these rules the employee will be paid for the duration of such assignment consistent with:    a.    3.39(3) Pay on promotion if assigned to a classclassification having a higher pay grade;    b.    3.39(7) Pay on transfer if assigned to a classclassification having the same pay grade;    c.    The present base pay if assigned to a classclassification having a lower pay grade.    3.39(7) Pay on lateral transfer.      a.    Employees who are transferred from one position to another position in the same classclassification shall receive no adjustment in base payexcept as provided in 3.39(1)“b”;    b.    Employees who are transferred from one position to another position in a different classclassification but in the same pay grade shall receive no adjustment in base pay except asprovided in 3.39(1)“b” or as set forth in3.39(7)“c” and “d” below;    c.    Employees who are transferred from one classclassification with a lower or no advanced starting rate to a classclassification with a higher advanced starting rate shall receive:    (1)   An adjustment to the higher advanced starting rate if the base pay prior to lateral transfer is less than the higher advanced starting rate. When the base pay adjustment is the salary equivalent of the value of a step or greater, an adjustment in merit review date will result and be computed from the effective date of lateral transfer and in accordance with 3.39(2); or    (2)   There will be no adjustment in base pay if the employee’s base pay prior to lateral transfer is not less than the higher advanced starting rate.    d.    Employees who are transferred from one position in a classclassification with a higher advanced starting rate to a position in a classclassification in the same pay grade but with a lower or no advanced starting rate shall be paid in accordance with subrule 3.39(4), pay on demotion.    e.    In no case may an employee be paid below the minimum or above the maximum for a classification.    3.39(8) Pay upon change in pay grade of class.  If the class is revised and reassigned to a higher pay grade, subrule 3.39(3), pay on promotion, will apply.If the class is revised and reassigned to a lower pay grade, subrule 3.39(4), pay on demotion, will apply.    3.39(9) Pay for part-time employment.  Pay for part-time employment will be proportionately equivalent to the rate for full-time employment.    3.39(10) Pay for exceptional performance.  An employee may be given pay for exceptional performance, not to exceed 5 percent of an employee’s current annual salary, at the written request of the employee’s department head with appropriate administrative approval and the prior approval of the resident director. The request will describe the nature of the exceptional job performance for which additional pay is requested, indicate the amount proposed, and specify the source of funds. The award may be based on sustained superior performance or an exceptional achievement or contribution during the period since the employee’s last performance review. To qualify for an exceptional performance award, an employee must have a cumulative performance evaluation exceeding standards and have no individual rating below satisfactory. Payment will be made as a lump sum award and will not change the employee’s established salary rate. No employee will be eligible for more than one award a yearAn employee will be eligible to receive multiple rewards per fiscal year but not to cumulatively exceed 5 percent of the employee’s current annual salary.    3.39(11) Pay for call back.  Employees who are called back to work after completing their regular work schedule will be paid for a minimum period of three hours, regardless of the time worked. Employees who are called back and work in excess of three hours will be paid the actual time worked.    3.39(12) Pay for lead worker status.  On request of an employing department and with approval of the resident director, an employee who is assigned and performs limited supervisory duties (such as distributing work assignments, maintaining a balanced workload within a group, and keeping attendance and work records) in addition to regular duties may be designated as lead worker in the classification assigned, and paid during the period of such designation the employee’s base salary plus the equivalent of no less than one step but, at the discretion of the institution,a percentage of the employee’s base pay no greater than 5 percent without the approval of the merit system director.    3.39(13) Pay for trainees and apprentices.  The schedule of wages for trainees and apprentices will consist of a step in the pay matrix for every year of training requiredbe set at the minimum of the entrance rate of the journey classification and decreased by 4.5 percent for every year of the program. Each employee whose performance is satisfactory as determined by the employing department will progress one-half stepby half of the annual increase every six months from the first step of the schedule to the entrance rate established for the journey class at the completion of time established for training or apprenticeship.    3.39(14) Pay for returning veterans.  Veterans who return from military leave will have their pay set at the rate they would have attained had they continued in service at the regent institution from which they took military leaveby applicable federal law.    3.39(15) Discretionary pay increases for permanent employees.  ReservedPermanent employees paid within the designated pay grade may be eligible for a discretionary increase to their present base pay as a result of a market analysis, equity analysis, employment offer or other employment situation. In no circumstance will the adjustment result in pay above the maximum of the pay grade. A resident director shall present the rationale for a discretionary pay increase to the merit system director for approval by the merit system director.    3.39(16) Payment of a shift differential.  All employees will be paid a shift differential for any shift of which four or more hours occur between 6 p.m. and midnight and a shift differential for any shift of which four or more hours occur between midnight and 6 a.m. The amount of the shift differential paid shall be determined by the merit system director.    3.39(17) Pay for time on-call.  At the request of the employer, employees who are off duty and free to engage in their own pursuits shall be considered on-call, provided (a) that they leave word with the employer where to be reached if needed, and (b) that they are able to report ready for work within a specified time after being contacted by the employer. The rate for on-call pay shall be determined by the merit system director.    3.39(18) Pay on reclassification of position.  If a position is reclassified, the incumbent’s pay will be fixed in accordance with the rules governing pay on demotion, reemployment, transfer, or promotion, whichever is applicable.    3.39(19) Recruitment or retention payments.  A payment to a job applicant or an employee may be made for recruitment or retention reasons. The resident director shall first submit a written explanation to the merit system director prior to any payment being made.As a condition of receiving recruitment or retention pay, the recipient must sign an agreement to continue employment with the employing department to be commensurate with the amount of the payment. If the recipient is terminated for cause or voluntarily leaves state employment, the recipient will be required to repay the employing department for the proportionate amount of the payment for the time remaining and it will be recouped from the final paycheck. When the recipient changes employment to another state agency, a repayment schedule must be approved by the employing department and the state agency. Recoupment will be coordinated between the state agency and the institution to ensure the proper reporting of taxes.       This rule is intended to implement Iowa Code Supplement section 8A.413.

    ITEM 8.    Adopt the following new rule 681—3.40(8A):

681—3.40(8A) Group insurance benefits.  Pursuant to the authority of Iowa Code section 262.9(13), each board of regents institution or special school is authorized by the board of regents to administer group insurance benefit programs for all regent employees subject to any requirements set forth by the board or in the board policy manual.

    ITEM 9.    Amend rule 681—3.50(8A) as follows:

681—3.50(8A) Applications.  Applications for employment will contain no question so formed as to elicit any information prohibited by state or federal statutes, and the truth of statements made on the application will be certified by the signature of the applicant. Public announcement of vacancies will be made for ten calendar days in classifications for which applications are not accepted on a continuous basis. Persons with disabilities may request specific examination accommodations. Reasonable accommodations will be granted in accordance with policies established by the institution. Applications will be kept on file at the institution for a period of time to be designated by the resident director.Each institution may post recruitment announcements for application by employees of that institution only.

    ITEM 10.    Adopt the following new rule 681—3.53(8A):

681—3.53(8A) Background checks.  Background checks, including but not limited to criminal records, sex offender registry records, driving records, financial or credit records, child or dependent adult abuse record checks, reference and work history checks, may be conducted pursuant to each institution’s background check policies.

    ITEM 11.    Adopt the following new rule 681—3.54(8A):

681—3.54(8A) Qualifications.  Applicants must meet the qualifications for the classification as indicated in the board of regents class description, as well as any special qualifications associated with a particular position. For each position posted for applications, the list of applicants will be evaluated to determine whether or not an applicant meets such qualifications and requirements. Those applicants who meet the required qualifications as determined by the resident director or the resident director’s designee shall be eligible for further consideration for hire, transfer or promotion in the position.An employing department may request in writing that the resident director certify applicants who have special qualifications in addition to the minimum qualifications prescribed in the class specifications. If, in the judgment of the resident director, such a request is validly related to job performance, the resident director may certify only the names of applicants who have such special qualifications.       This rule is intended to implement Iowa Code section 8A.413.

    ITEM 12.    Amend rule 681—3.55(8A) as follows:

681—3.55(8A) Rejection or disqualification of applicants.  The resident director may reject any applicant or, after examination, may refuse to certify any candidateapplicant if it is found that the person:
  1. Does not meet the minimum required qualifications for the classclassification;
  2. CannotIs unable to perform the essential functions of the position with or without a reasonable accommodation;
  3. Habitually uses narcotics or uses intoxicating beverages to excessHas violated federal or state law or regulations that affect the ability to perform the job;
  4. Has made a false statement of material fact in the applicationunauthorized access to examination information;
  5. Has information concerning the examination to which the person is not entitledfailed to appear for examination or participate in any aspect of the selection process;
  6. Has been convicted of a crime which makes the person unsuitable for employment in a particular class or positionfailed to meet the conditions of employment such as physical requirements, background checks, or other conditions as set forth in the job announcement;
  1. Has made false statements or attempts to practice fraud or deception during the selection process;
  2. Entered into a written agreement between the applicant and the state or regents institutions that the applicant will not seek or accept work from the state, any regents institution, or both;
  1. 7Has been dismissed from private or public service for a cause that would be detrimental to the regents institution employing the applicant.
A disqualified applicant will promptly be notified in writingby electronic or ordinary mail of such action at the last-known address. A disqualified applicant may request, in writing, review of the reason for disqualificationwithin ten days of notification. Such request will be in writing and uponUpon receipt, the resident director will give full consideration to the request and notify the applicantby electronic or ordinary mail of the resident director’s decision in writingwithin ten days of receipt.

    ITEM 13.    Amend rule 681—3.67(8A) as follows:

681—3.67(8A) Eligibility lists.  ThreeTwo kinds of eligibility lists will be established: reemployment,recall and employment, and promotional.ReemploymentRecall lists will consist of the names of permanent employees who have been laid off or demoted in lieu of layoff or who are able and qualified to return to work following a medically related disability leave, in accordance with 3.104(4)“j” and 681—3.143(8A) or in accordance with 3.90(4)3.90(3). These lists will be maintained in order by retention points calculated in accordance with the rules for reduction in force, beginning with the person with the highest number of points. ReemploymentRecall rights apply only to classes for which the employee is eligible in accordance with these rules.Employment lists will include the names of all applicantsfor the position posted who meet the qualifications for a classification. Employment lists will be maintained for specific classifications designated for continuous acceptance of applications in accordance with rule 681—3.50(8A). Promotional lists will consist of the names of all permanent employees who are qualified and have requested consideration for promotion unless an employing department requests that the promotional list be limited to permanent employees of that department.    3.67(1) Removal of names from eligibility lists.  In addition to the causes for rejection or disqualification set forth under 681—3.55(8A), the resident director may permanently or temporarily remove names from eligibility lists for the following reasons:    a.    Upon receipt of notification from applicants that they no longer desire consideration for a position in the classclassification.    b.    Appointment through certification from such eligibility list to fill a permanent position.    c.    Failure to respond within five working days to the written inquiry of the resident director relative to availability for appointment.    d.    Declination of appointment without good cause or under conditions which the applicants previously indicated they would accept.    e.    Failure to appear for a scheduled employment interview or to report for duty within a reasonable time specified by the employing department.    f.    Failure to maintain a record of their current addresscontact with the resident director as evidenced by the return of a properly addressed unclaimed letter or other evidence.    g.    Willful violation of any of the provisions of these rules.    h.    Rescinded IAB 6/12/02, effective 7/17/02.    3.67(2) Duration of eligibility lists.  Eligibility lists may be continuous or closed after a vacancy is filled. Names may be added to or deleted from eligibility lists in accordance with these rules. The names of applicants who have not been appointed or otherwise removed from lists will be removed at the termination of the period of time designated by the resident director.    3.67(3) Precedence of eligibility lists.  ReemploymentRecall lists will supersede employment and promotional lists.

    ITEM 14.    Amend rule 681—3.68(8A) as follows:

681—3.68(8A) PersonnelJob requisitions.  Requests to fill vacancies in permanent positions will be initiated by the requesting department and forwarded to the resident director. The request will include the classclassification of the position to be filled, the number of vacancies and the date of need.

    ITEM 15.    Rescind and reserve rule 681—3.69(8A).

    ITEM 16.    Amend rule 681—3.70(8A) as follows:

681—3.70(8A) Selection of employees.  Final selection will be made by the employing department. Nothing in these rules will require the hiring of any applicant. When a properly certified applicant is selected by a department, the department will so notify the resident director.

    ITEM 17.    Amend rule 681—3.84(8A) as follows:

681—3.84(8A) Trainee, apprentice, or career developmentor apprentice appointment.  When a position within a class cannot be filled because of the lack of qualified eligibles, or applicants meeting the minimum qualifications for the class, or the institution specifically designates a position for trainee, apprentice, or career development purposes, the institution may appoint a person who meets the minimum qualifications established in programs approved by the merit system director for this type of appointment.With the approval of the resident director, an institution may advertise a position for a classification designated for trainees or apprentices. When so designated, applicants do not need to meet the minimum qualifications for the classification for permanent appointment. The purpose of the program is to develop the trainee or apprentice to obtain the necessary knowledge, skills and abilities to perform the work and to meet the minimum qualifications for the classification. At the conclusion of the designated training period or apprenticeship program, the employee must be able to satisfactorily perform the duties and meet the minimum qualifications in order to move into the regular classification.

    ITEM 18.    Amend rule 681—3.85(8A) as follows:

681—3.85(8A) ProjectTerm appointment.  When it is known that a particular job, project, grant or contract will require the services of an employee for a limited durationor where funding must be renewed periodically, a projectterm appointment may be made. Such anThe initial appointment will not be made for more than one year. While an extensionRenewals beyond one year may be approved by the merit systemresident director on the basis of a limited need that could not otherwise be efficiently and effectively filled, successive project appointments will not be allowedfunding availability or institutional limits on term appointments.Such appointments will not confer to the individual any right of position, transfer, demotion, or promotion,or recall, but incumbents shall be eligible for vacation and sick leave, except that a projectterm appointment made for less than 780 hours will be considered a temporary appointment under rule 681—3.82(8A) without conferring rights or eligibility for vacation or sick leave.       This rule is intended to implement Iowa Code Supplement section 8A.413(9).

    ITEM 19.    Amend rule 681—3.87(8A) as follows:

681—3.87(8A) Permanent appointments.  An applicant who is certified from an eligibility register and appointed with the approval of the resident director to a permanent position, and who successfully completes a probationary period in accordance with these rules, will have permanent status.

    ITEM 20.    Rescind and reserve rule 681—3.89(8A).

    ITEM 21.    Amend rule 681—3.90(8A) as follows:

681—3.90(8A) Probationary period.      3.90(1) Purpose.  The probationary period will be an important part of the examination and selection process, and will be used by the employing department to closely observe and evaluate employee’s work, to train and aid the employees in adjustment to their position, and to reject and dismiss any employee whose performance fails to meet standards.    3.90(2) Duration of probation.  An employee on original appointment or who is reinstated or reemployed to a class not previously held will be on probation until the person completes six months of active service in the position to which appointed. If a probationary employee is not dismissed during this time, the person will, at the conclusion of the probationary period, have permanent status in that class. A period of temporary employment immediately preceding a permanent appointment to the same class may, at the request of the employing department, be counted as probationary service.Permanent employees who are promoted from one class to another, or who transfer out of class, or who demote will serve a period of probation of six months in the position to which appointed. If the employee is not dismissed during this time, the employee will, at the conclusion of the probationary period, have permanent status in the class.    3.90(3) Layoffs during probation.  Employees who are laid off during their probationary period will, upon written request to the resident director, be placed on the appropriate eligibility list.    3.(4) 3.90(3) Dismissal duringpromotional probation.  Employees on original appointment or who have been reinstated or reemployed and dismissed during their probationary period may be returned to the eligibility list from which they were appointed if, in the judgment of the resident director, they may be able to perform satisfactorily in another position. Employees who are promoted from one classclassification to another or who transfer out of classclassification or who demote out of classclassification series and are dismissed during their probationary period may be placed on the reemploymentrecall list for a previously held classification if, in the judgment of the resident director, they may be able to perform satisfactorily in another position.

    ITEM 22.    Rescind subrule 3.102(3).

    ITEM 23.    Amend rule 681—3.103(8A) as follows:

681—3.103(8A) Demotion (voluntary).  If, for any reason, an employee wishes to be demoted to a position in a lower classclassification, the resident director may, upon written request from the employee and with the approval of involved departments, effect such a demotion provided the employee is certified by the resident director as meeting the qualifications required for the lower classclassification. Voluntary demotion will not be subject to appeal.

    ITEM 24.    Amend rule 681—3.104(8A) as follows:

681—3.104(8A) Terminations.      3.104(1) Resignations.      a.    To resign in good standing employees must notify the employing department of their intention to resign in writing at least ten14 days prior to the effective date of resignation, except in cases where the employing department agrees to a shorter period of notice. An employee who fails to give proper notice may, at the request of the employing department, be barred from future certification to that department or from reinstatement as provided for in these rules. Employees who resign will have no rights of appeal under these rules.    b.    Abandonment of position. Employees who are absent from duty for three consecutive workdays without proper notification and authorization thereof shall be deemed to have resigned their positions.       This rule is intended to implement Iowa Code section 8A.413(15).    3.104(2) Termination on expiration of appointment.  On expiration of an appointment of limited duration the employing department will report such action in writing to the resident director.    3.104(3) Retirement.  Employees who retire will be considered to have terminated in good standing and without prejudice and will have no rights of appeal under these rules.    3.104(4) Reduction in force.      a.    Nothing herein shall be construed as a guarantee of hours of work per day or per work period. An institution may lay off an employee when it deems necessary because of shortage of funds or work, a material change in duties or organization, reorganization or abolishment of one or more positions, or other legitimate reason consistent with public employer rights (Iowa Code section 20.7).    b.    Reduction in force will be accomplished in a systematic manner in accordance with these rules; however, the layoff provisions established in this subrule shall not apply to:    (1)   Temporary layoffs of less than 2025 workdays or 160200 hours of work per calendar year;    (2)   Interruptions in the employment of school term employees during breaks in the academic year, during the summer, or during other seasonal interruptions that are a condition of employment, with the prior approval of the resident director;    (3)   The promotion or reclassification of an employee to a class in the same or a higher pay grade;    (4)   The reclassification of an employee’s position to a classclassification in a lower pay grade that results from the correction of a classification error, the implementation of a classclassification or series revision, changes in the duties of the position, or a reorganization that does not result in fewer total positions in the unit that is reorganized;    (5)   A change in the classification of an employee’s position or the appointment of an employee to a vacant position in a class in a lower pay grade resulting from a disciplinary or voluntary demotion; and    (6)   The transfer or reassignment of an employee to another position in the same classclassification or to a classclassification in the same pay grade.    c.    The individual whose position is eliminated or reduced in hours willmay be reassigned to a vacant position in the same classificationand institution provided the individual can perform the essential functions of the position and possesses any required special qualificationsfor the position. If there is no vacant position to which the individual can be reassigned, the individual(s) may request and accept layoff with reemployment rightsrecall priority as provided in 3.104(4)“o.” If an individual(s) directly affected does not requestaccept layoff with reemployment rights, the reduction in force procedures in this subrule shall be implemented.    d.    Reduction in force will be made by classclassification.    e.    Reduction in force may be made by organizational unit within an institution or institutionwide, as designated by the institution, provided such designation is reported to the merit system director before the effective date of the reduction.    f.    The order of reduction in force will be by type of appointment as follows: temporary, trainee, initial probationary, permanent.    g.    Each permanent employee affected by a reduction in force will be notified in writing of the layoff and the reasons for it at least 20 working28 days prior to the effective date of the layoff unless budgetary limitations require a lesser period of notice.    h.    There will be competition among all employees in the classclassification affected by the layoff based on a retention points system that will consist of points for length of service and performance evaluation of all employees in the classclassification within the organizational unit or units affected. Retention points will be calculated as follows:    (1)   Length of service credit will be allowed at the rate of one point for each month of servicein a permanent position, whether full or part time. Any period of 15 calendar days of service(including any legally protected leave, paid or unpaid) in a month will be considered a full month. For the purpose of computing length of service credits, the institution will include all periods of regular merit employment during periods of continuous regular appointments with the institution between the date of the original appointment and the date of the layoff or as provided otherwise by law. Periods of leave without pay exceeding 30 days will not be countedunless protected by federal or state law.    (2)   Performance evaluation creditdeduction will be allowed at the rate of one point for each month of satisfactoryunsatisfactory service. Nolength of service credit will be allowed for service rated less than satisfactory. If there is no record of performance evaluation for a specific time period, it shall be presumed that the employee’s performance is satisfactory.    (3)   Reduction in force retention points will be the total of length of service and, less any deduction for unsatisfactory performance evaluation.    i.    Employees will be placed on the layoff list beginning with the employee with the greatest number of retention points at top. Layoffs will be made from the list in reverse order unless the employee with the least retention points has special skills and abilities required to perform in the position currently occupied. Employees with greater retention points who must vacate their positions must possess the special skills and abilities required for that position and meet any job-related selective certification required for that position. Copies of the computation of retention points will be made available to affected employees. One copy will be retained by the resident director and one copy will be forwarded to the merit system director at least ten days prior to the effective date of the layoff.    j.    When two or more employees have the same total of retention points, the order of termination will be determined by giving preference for retention to the employee with the longest time in the classclassification.    k.    The reduction in force plan approved by the merit system director will be made available by the resident director so that all employeesdirectly impacted will have access to it.    l.    An affected employee may appeal a reduction in force by filing, within fiveseven days after notification as provided in 3.104(4)“g,” a written grievance with the resident director (at Step 3 of the grievance procedure provided in 681—3.129(8A) or at a comparable step of a procedure approved under 3.129(1)). If not satisfied with the decision rendered at that step, the employee may pursue an appeal in accordance with the grievance procedure.    m.    A supervisory employee, defined as a public employee who is not a member of a collective bargaining unit and who has authority, in the interest of a public employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other public employees, to direct such public employees, or to adjust the grievances of such public employees, or to effectively recommend such action, may not replace or bump a junior employee not being laid off. For purposes of this subrule, “junior employee” means an employee with less seniority or fewer retention points than a supervisory employee.    n.    A permanent employee in a nonsupervisory classclassification in which layoffs are to be effected may, in lieu of layoff, elect voluntary demotion to a position in the next lower nonsupervisory classclassification in the same series utilized at the institution or, in the absence of a lower nonsupervisory classclassification in the same series, to a nonsupervisory classclassification which the employee has formerly occupied while in the continuous employment of the institution. The employee must possess any special qualifications required and have the ability to perform the essential functions of the position. Such demotion or the occupying of a formerly held nonsupervisory classclassification will not be permitted if the result thereof would be to cause the layoff of a permanent employee with a greater total of retention points. To exercise the right of voluntary demotion or to occupy a formerly held nonsupervisory classification in lieu of layoff, the employee must notify the resident director in writing of such election not later than five calendar days after receiving notice of layoff. Any permanent employee displaced under these provisions will have the right of election as provided herein.    o.    Employees who are laid off or who accept voluntary demotion in a series or assignment to a previously held classclassification in lieu of layoff willmay, at their request, have their names placed on the reemployment eligibility listinitiate recall priority for the class from which they were laid off, a lower class(es)classification(s) in the same series from which they were laid off, and a class(es)classification(s) formerly occupied in accordance with 681—3.67(8A) to, 681—3.68(8A), and 681—3.70(8A) for a period of up to two yearsone year from the date of layoff. If reemploymentrecall occurs within two yearsone year of separation due to reduction in force, prior service credit shall be restored. Acceptance of reemploymentrecall in a lower classclassification in the same series from which the employee was laid off or in a previously held classclassification will not affect the employee’s standing on the reemployment listrecall priority for the classclassification from which the employee was laid off. After two years on the reemployment eligibility list, the employee’s name shall be removed.    p.    Recall priority will utilize the retention points calculated in accordance with the rules for reduction in force, beginning with the person with the highest number of points as applied in the following order:    (1)   If the vacancy occurs in a layoff unit in which the employees eligible for recall in a classification were last employed, the resident director will refer the employee with the greatest number of retention points who was laid off, was demoted or took a medically related disability leave from that layoff unit; or    (2)   If the vacancy occurs in the layoff unit other than the one in which employees eligible for recall priority in a classification were last employed, the resident director will refer the employee with the greatest number of retention points on the list from a different layoff unit. Employees referred with recall priority must meet the qualifications for the position, including any special qualification requirements. Employing departments must evaluate any eligible employees with recall priority before considering other applicants.    q.    Recall priority will end upon:    (1)   Appointment to fill a permanent position in the classification.    (2)   Receipt of notification from the individual that the individual no longer desires consideration for a position in the classification.    (3)   Failure to respond within five days to the written inquiry of the resident director or the resident director’s designee relative to availability for appointment.    (4)   Failure to appear for a scheduled interview or to report for duty within a reasonable time specified by the employing department.    (5)   Rejection of a specific offer to return to a classification.    (6)   Failure to maintain contact information with the resident director.    (7)   Expiration of priority after one year following reduction in force or notice of intent to return from leave.    3.104(5) Abandonment of positionTermination for failure to meet job requirements.  Employees who are absent from duty for three consecutive work days without proper notification and authorization thereof shall be deemed to have resigned their positions.When an employee occupies a position where the current appointment is based upon satisfaction of a criminal background check; requirements for licensure; job qualifications, including special qualifications; or any combination of the above, and no longer qualifies for the position, the employee may be terminated for failure to meet or maintain essential job requirements.       This rule is intended to implement Iowa Code Supplement section 8A.413(14).

    ITEM 25.    Amend rule 681—3.115(8A) as follows:

681—3.115(8A) Causes for disciplinary action.  All employees may be subject to disciplinary action for any of the reasons specified in Iowa Code Supplement section 8A.413(16), or as established by board of regents or institutional policies.

    ITEM 26.    Amend rule 681—3.116(8A) as follows:

681—3.116(8A) Disciplinary actions.  Disciplinary action will be reasonable, timely and related in severity to the seriousness of the offense; however, this will not preclude reasonable penalties of varying severity for an accumulation of offenses.    3.116(1) Suspension.  A department headThe employing department may, for cause in accordance with 681—3.115(8A), suspend any employee for such length of time as the department head considers appropriate,but not to exceed 1030 days at any one time or 20 days in any 12-month period. Theemploying department head will inform the affected employee of the suspension and the reasons therefor in writing within 24 hours of the time the action is taken. A copy of the suspension will be sent by the department to the resident director and will be maintained in the employee’s personnel file. Employees may appeal the action directly to Step 2 of the grievance procedure specified in 681—3.129(8A) or to a comparable step in a grievance procedure approved in accordance with 3.129(1). If not satisfied with the decision rendered at that step, employees may pursue their appeal in accordance with the grievance procedure.    3.116(2) Reduction of pay within grade.  AAn employing department head may, for cause in accordance with 681—3.115(8A), reduce the pay of an employee to a lower rate of pay within the pay grade assigned to the classclassification. The department head will notify the affected employee of the reduction, the reasons therefor and the duration thereof, in writing within 24 hours of the time the action is taken. A copy of the reduction notice will be sent by the department to the resident director and will be maintained in the employee’s personnel file. Employees may appeal the action directly to Step 2 of the grievance procedure specified in 681—3.129(8A) or a comparable step in a grievance procedure approved in accordance with 3.129(1). If not satisfied with the decision rendered at that step, employees may pursue their appeal in accordance with the grievance procedure.    3.116(3) Demotion.  AAn employing department head may, for cause in accordance with 681—3.115(8A), demote an employee to a vacant position in a lower classclassification provided the employee meets the qualifications for that lower classclassification. The department head will notify the affected employee of the demotion and the reasons therefor in writing within 24 hours of the time the action is taken. A copy of the notice of demotion will be sent by the department to the resident director and will be maintained in the employee’s personnel file. Employees may appeal the action directly to Step 2 of the grievance procedure specified in 681—3.129(8A) or a comparable step in a grievance procedure approved in accordance with 3.129(1). If not satisfied with the decision rendered at that step, the employees may pursue their appeal in accordance with the grievance procedure.    3.116(4) Discharge.  A department head may, for cause in accordance with 681—3.115(8A), discharge any employee. The department head will notify the affected employee of the discharge and the reasons therefor in writing within 24 hours of the time the action is taken. A copy of the notice of discharge will be sent by the department to the resident director and will be maintained in the employee’s personnel file. Employees may appeal the action directly to Step 2 of the grievance procedure specified in 681—3.129(8A) or a comparable step in a grievance procedure approved in accordance with 3.129(1). If not satisfied with the decision rendered at that step, employees may pursue their appeal in accordance with the grievance procedure.    3.116(5) Eligibility for rehire.  An employee discharged for misconduct or unsatisfactory performance may be determined to be ineligible for reemployment with the same institution. The former employee will be promptly notified and may request review of the reason for disqualification. Such request shall be in writing, and upon receipt, the resident director will give full consideration to the request for review and notify the applicant of the resident director’s decision in writing.

    ITEM 27.    Amend rule 681—3.127(8A) as follows:

681—3.127(8A) Reviews of position classification.  Permanent employees and department heads may request a position classification review, and such requests shall be in written form. The employee’s request will be forwarded to the resident director with a recommendation from the department head within 10 working14 days of the date of the request. The resident directoror designee shall review the employee’s and department head’s request and with a recommendation forward the request to the merit system director within 20 working days. The merit system directoror designee shall review and respond within 20 working days to the resident director who will inform the employee and department head. If the employee or department head is not satisfied with the merit system director’s decision, that person may appeal the decision in writing within 15 working7 days of the merit system director’s decision to a qualified classification appeal committee appointed in accordance with the procedures approved by the board of regents.The classification appeal committee will conduct such investigation as it deems necessary to determine the proper allocation of the position, and will notify the involved parties of its decision within 45 calendar days after the committee receives the appeal. Any further requests for review of the same position must be presented to the resident director in compliance with this rule and will be considered a new classification review. A new classification review will not be allowed for one year following the final decision on a request for review unless there have been substantial changes in the duties and responsibilities of the position. An appeal will be considered on the basis of duties and responsibilities assigned at the time of the original classification review, and in no case will the assignment of additional duties and responsibilities following the resident director’s investigation of the original request for review be considered during the process of appeal as outlined above.       This rule is intended to implement Iowa Code Supplement section 8A.413.

    ITEM 28.    Amend rule 681—3.128(8A) as follows:

681—3.128(8A) Appeals on application, examination and certification procedures.  Applicants may appeal an action which they allege to be in violation of these rules concerning applications, examinations or certificationsconcerning the form or content of the application or an examination. The aggrieved applicant will first discuss the matter with the resident director and, if not satisfied with the explanation and decision given, may within 2014 days after the occurrence of the alleged violation file a written appeal with the resident director at Step 3 of the grievance procedure provided in 681—3.129(8A), or at a comparable step of a procedure approved under 3.129(1). If the applicant is not satisfied with the decision rendered at that step the applicant may pursue the appeal in accordance with the grievance procedure. If the grievance concerns the form or content of the application or an examination as approved by the merit system director, the director will act jointly with the resident director and at subsequent steps in response to an appeal.An appeal under this rule is not arbitrable beyond Step 3, or at a comparable step.Appeals by applicants alleging improper discrimination on the basis of political or religious opinions or affiliations, or national origin, race, sex, disability or age in selection, will be filed at Step 3 in the grievance procedure provided in 681—3.129(8A) or at a comparable step of a procedure approved under 3.129(1).       This rule is intended to implement Iowa Code Supplement sections 8A.402, 8A.413, and 8A.416.

    ITEM 29.    Amend rule 681—3.129(8A) as follows:

681—3.129(8A) Grievances.  Disputes or complaints by permanent employees regarding the interpretation or application of institutional rules governing terms of employment or working conditions (other than general wage levels) or the provisions of these merit system rules (other than disputes whose resolution is provided for in 681—3.127(8A) and 681—3.128(8A)) will be resolved in accordance with the following procedure, except at institutions where a varied procedure has been approved by the merit system director in accordance with 3.129(1). Employees in an initial probationary period will be allowed access to the grievance procedureas outlined below, with the right to appeal in writing at steps within the institutionexception of dismissal during probation which cannot be appealed. The institutional representative may permit an oral presentation at any step if the institutional representative deems one necessary. At each step of the grievance procedure, the employee may be represented by one or two coworkers of the employee’s choosing. The name of such representatives will be noted on the written grievance and on each subsequent appeal. Presentations, reviews, investigations, and hearings held under this procedure may be conducted during working hours, and employees who participate in such meetings will not suffer loss of pay as a result thereof.If an employee does not appeal a decision rendered at any step of this procedure within the time prescribed by these rules, the decision will become final. If an institutional representative does not reply to an employee’s grievance or appeal within the prescribed time, the employee may proceed to the next step. With the consent of both parties, any of the time limits prescribed in these rules may be extended.Step 1. A dissatisfied employee will first discuss the employee’s problem with the employee’s immediate supervisor. It is presumed that the majority of disputes, complaints, or misunderstandings will be resolved at this point. If the employee is still dissatisfied after such discussion, the employee may within ten14 days after the occurrence of the matter leading to the grievance or within ten14 days after such time that the employee has, or could reasonably be expected to have, knowledge of such occurrence, file a written grievance with the employee’s department head or designee. A written grievance will contain a brief description of the complaint or dispute and the pertinent circumstances and dates of occurrence. It will specify the institutional or merit system rule which has allegedly been violated and will state the corrective action desired by the employee. The grievance will be signed and dated by the employee. The department head or designee will investigate the grievance and will, if deemed necessary, give the employee or a coworker of the employee’s choosing the right to present the employee’s case orally. The department head or designee will notify the employee of the decision in writing within ten14 days after receiving the grievance.Step 2. If the employee is not satisfied with the decision of the department head or designee, the employee may within fiveseven days after receiving that decision, appeal it to the dean of the college or the head of the major operating division or designee(s) in which the employee is employed. The dean or the division head and the resident director or designee(s) will jointly represent the institution at this step of the appeal procedure. The appeal will be in writing and will include all of the information included in the initial grievance and subsequent appeals, all the decisions related thereto, and any other pertinent information the employee may wish to submit. The appeal will be signed and dated by the employee.The dean of the college or head of the division and the resident director or designee(s) will investigate the grievance and will, if deemed necessary, give the employee or a coworker of the employee’s choosing the right to present the employee’s case orally. The institutional representatives may affirm, reverse, or modify the decision of the department head and will notify the employee of their decision in writing within ten14 days after receiving the appeal.Step 3. If the employee is not satisfied with the decision rendered at Step 2 of the grievance procedure, the employee may within fiveseven days after receiving that decision appeal it to the chief administrator of the institution. The appeal will be in writing and will include all of the information included in the initial grievance and subsequent appeals, all decisions related thereto, and any other pertinent information the employee may wish to submit. The appeal will be signed and dated by the employee.The chief administrator or the chief administrator’s designee will investigate the grievance and will, if deemed necessary, give the employee or a coworker of the employee’s choosing the right to present the employee’s case orally. The chief administrator may affirm, reverse, or modify the decision rendered at Step 2 and will notify the employee of the administrator’s decision in writing within ten14 days after receiving the appeal.Step 4. Employees not satisfied with the decision rendered under Step 3 may within fiveseven days after receiving that decision request a hearing before an arbitrator. Such a request will be in writing, will include all of the information included in the initial grievance and subsequent appeals, all of the decisions related thereto, and any other pertinent information the employee may wish to submit.The appeal will be signed and dated by the employee and will be directed to the merit system director who will arrange for a hearing before an arbitrator as prescribed under 3.129(2). The arbitrator will be expected to render a decision within 30 calendar days following the conclusion of the hearing.The merit system director shall have the right to rule whether a case is grievable and arbitrable under the merit system. The merit system director shall have the right to refuse to refer to arbitration any grievance not found to be in full compliance with these rules involving the grievance procedure. The board of regents shall retain jurisdiction to review decisions of the merit director as to whether a matter is grievable or arbitrable upon appeal by an employee.    3.129(1) Institutional grievance procedure.  An institution may develop a grievance procedure for all or a segment of its employees that varies from the procedure prescribed in 681—3.129(8A), provided that such a procedure begins with discussion between the employee and the employee’s immediate supervisor and provides for a final hearing in accordance with Step 4 of the grievance procedure prescribed herein. Such an institutional procedure will incorporate all the rights provided employees in this chapter, will be made known to the employees to whom it applies, and must be approved by the merit system director. In the absence of an approved institutional procedure, 681—3.129(8A) will apply.    3.129(2) Appeals.  The board of regents will approve the use of a single arbitrator in hearing an appeal. The selection of the arbitrator shall be made from a panel of arbitrators as referred from the Federal Mediation and Conciliation Service or the Iowa public employment relations board with a preference for those Iowans so certified.The arbitrator will hear a dispute appealed to the last step of the grievance procedure and render a decision thereon subject only to review by the courts.The arbitrator will establish procedures for the conduct of the hearing in a fair and informal manner that will afford each party reasonable and ample opportunity for case presentation and to rebut the presentation of the other. The arbitrator will be expected to render a decision to the involved parties and to the board of regents within the prescribed time.

    ITEM 30.    Amend rule 681—3.142(8A) as follows:

681—3.142(8A) Holidays.  Permanent and probationary employees will be granted holidays approved by the board of regents, consistent with institutional policies and procedures.

    ITEM 31.    Amend rule 681—3.143(8A) as follows:

681—3.143(8A) Sick leave.  Permanent and probationary employees will accrue sick leave as provided by law and will be entitled to such leave on presentation of satisfactory evidence, when requested. Permanent part-time employees will accrue sick leave in an amount equivalent to their fractional employment, and no employees will be granted sick leave in excess of their accumulation.An employee who is transferred, promoted or demoted from one position to another position under this system will not lose any accumulated sick leave as a result thereof.A permanent employee who has recovered after exhausting all accumulated sick leave and vacation time and has a medical release to return to work will, at the employee’s request, be placed on the reemployment list for the class the employee previously occupied and on reemployment lists for lower level classes for which the employee is qualified in accordance with 681—3.67(8A) to 681—3.70(8A) for a period of up to two years fromgiven recall priority consistent with 3.104(4), effective with the date the employee was released to return to work. Such employee acceptance of reemployment in a lower class will not affect the employee’s standing on the reemployment list for the class that the employee formerly occupied. If reemployment occurs within two years of an employee’s release to return to work following a medically related disability, prior service credit shall be restored. After two years on the reemployment eligibility list, the employee’s name shall be removed.

    ITEM 32.    Amend rule 681—3.144(8A) as follows:

681—3.144(8A) Military leave.  Permanent and probationary employees will be granted military leave as provided by law, with pay not to exceed 30 calendar daysworkdays in a calendar year.

    ITEM 33.    Amend rule 681—3.145(8A) as follows:

681—3.145(8A) Family leave.  Eligible employees will be grantedunpaid family leave in accordance with federal law(Family and Medical Leave Act) and board of regents and institutional policies and procedures.

    ITEM 34.    Amend rule 681—3.151(8A) as follows:

681—3.151(8A) DisasterAmerican Red Cross disaster service volunteer leave.  Subject to the approval of the appointing authority, an employee who is a certified disaster service volunteer for the American Red Cross may, at the request of the American Red Cross, be granted leave with pay to participate in disaster relief services relating to a disaster in the state of Iowa. Such leave shall be only for hours regularly scheduled to work and shall not be for more than 15 workdays in a fiscal year. Employees granted such leave shall not lose any rights or benefits of employment while on such leave. An employee while on leave under this rule shall not be deemed to be an employee of the state for purposes of workers’ compensation or for the purposes of the Iowa tort claims Act.       This rule is intended to implement Iowa Code Supplement section 8A.413 and Iowa Code section 262.9(2).

    ITEM 35.    Adopt the following new rule 681—3.152(8A):

681—3.152(8A) Bone marrow and organ donation leave.  Employees shall be granted leave pursuant to Iowa Code section 70A.39. An employee who is granted a leave of absence under Iowa Code section 70A.39 shall receive leave without loss of service, pay, vacation time, personal days, sick leave, insurance and health coverage benefits, or earned overtime accumulation. The employee shall be compensated at the employee’s regular rate of pay for those regular work hours during which the employee is absent from work. An employee deemed to be on leave under Iowa Code section 70A.39 shall not be deemed to be an employee of the state for the purpose of workers’ compensation for purposes of the Iowa tort claims Act.
ARC 4626CTelecommunications and Technology Commission, Iowa[751]Notice of Intended Action

Proposing rule making related to education telecommunications council and regional telecommunications councils and providing an opportunity for public comment

    The Iowa Telecommunications and Technology Commission hereby proposes to amend Chapter 1, “Description of Organization,” rescind Chapter 8, “Scheduling Disputes,” and amend Chapter 15, “Advisory Councils, Committees and Groups,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 8D.3(3)“b.”State or Federal Law Implemented    This rule making implements, in whole or in part, 2019 Iowa Acts, Senate File 367.Purpose and Summary    This rule making implements the statutory changes made by 2019 Iowa Acts, Senate File 367, by eliminating rules associated with the Education Telecommunications Council and the Regional Telecommunications Councils. These entities are eliminated by Senate File 367.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 751—Chapter 9. Public Comment     Any interested person may submit written or oral comments concerning this proposed rule making. Written or oral comments in response to this rule making must be received by the Commission no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Mark Johnson Iowa Telecommunications and Technology Commission Grimes State Office Building 400 East 14th Street Des Moines, Iowa 50319 Phone: 515.725.4608 Email: mark.johnson@iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Rescind and reserve rule 751—1.4(17A,8D).

    ITEM 2.    Rescind and reserve 751—Chapter 8.

    ITEM 3.    Rescind and reserve rule 751—15.4(8D).

    ITEM 4.    Rescind and reserve rule 751—15.5(8D).
ARC 4625CTransportation Department[761]Notice of Intended Action

Proposing rule making related to driver’s license sanctions and providing an opportunity for public comment

    The Department of Transportation hereby proposes to amend Chapter 400, “Vehicle Registration and Certificate of Title,” and Chapter 615, “Sanctions,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 261.126 and 307.12.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 261.126 as amended by 2019 Iowa Acts, Senate File 304, section 3.Purpose and Summary    The proposed amendments implement 2019 Iowa Acts, Senate File 304, section 3, which repeals Iowa Code sections 261.121 through 261.127 effective July 1, 2019. Iowa Code section 261.126 authorized the Department to issue a suspension of a person’s driver’s license or vehicle registration privileges based on receipt of a certificate of noncompliance from the Iowa College Student Aid Commission for delinquent student loans. The Iowa College Student Aid Commission has not exercised the option to trigger a license or vehicle registration suspension for failure to satisfy student debt since 2012. The proposed amendments also remove unnecessary references to 2018 Iowa Acts, House File 2304 and House File 2502.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Public Comment    Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Tracy George Department of Transportation DOT Rules Administrator, Strategic Communications and Policy Bureau 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.usPublic Hearing     A public hearing to hear requested oral presentations will be held as follows: September 19, 2019 10 a.m. Department of Transportation Motor Vehicle Division 6310 SE Convenience Boulevard Ankeny, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George, the Department’s rules administrator, and advise of specific needs.     The public hearing will be canceled without further notice if no oral presentation is requested. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend subrule 400.45(3) as follows:    400.45(3)   In accordance with Iowa Code sectionssection252J.8 and 261.126, the department shall suspend or deny the issuance or renewal of registration and plates upon receipt of a certificate of noncompliance from the child support recovery unit or the college student aid commission.    a.    The suspension or denial shall become effective 30 days after notice to the vehicle owner and continue until the department receives a withdrawal of the certificate of noncompliance from the child support recovery unit or the college student aid commission.    b.    If a person who is the named individual on a certificate of noncompliance subsequently purchases a vehicle, the vehicle shall be titled and registered, but the registration shall be immediately suspended.

    ITEM 2.    Amend rule 761—400.45(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections 252J.1, 252J.8, 252J.9, 261.126, 321.101, 321.101A and 321.127.

    ITEM 3.    Amend paragraph 615.17(2)"e", introductory paragraph, as follows:    e.    The person was convicted of violating Iowa Code section 321.323A as amended by 2018 Iowa Acts, House File 2304, sections 1 to 4, or a similar ordinance of any political subdivision. The suspension period shall be:

    ITEM 4.    Amend rule 761—615.17(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections 321.210;, 321.323A,as amended by 2018 Iowa Acts, House File 2304, sections 1 to 4; 321.372; and 321.491.

    ITEM 5.    Rescind and reserve subrule 615.24(2).

    ITEM 6.    Amend rule 761—615.24(252J,261), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections 252J.1, 252J.8,and252J.9, 261.126 and 261.127.

    ITEM 7.    Amend rule 761—615.29(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections 321.209;,321.212, as amended by 2018 Iowa Acts, House File 2502, section 96; 321.261; and 707.6A.

    ITEM 8.    Amend subrule 615.45(1) as follows:    615.45(1) Ineligibility.  The department shall not issue a temporary restricted license under Iowa Code section 321.215(1) as amended by 2018 Iowa Acts, House File 2502, section 97, to an applicant:    a.    Whose license has been denied or canceled.    b.    Whose license has been suspended for incapability.    c.    Whose license has been suspended for noncompliance with the financial responsibility law.    d.    Whose minor’s school license or minor’s restricted license has been suspended or revoked.    e.    Whose license has been suspended for failure to pay a fine, penalty, surcharge or court costs.    f.    Whose period of suspension or revocation has been extended for operating a motor vehicle while under suspension or revocation.    g.    Whose license has been mandatorily revoked under Iowa Code section 321.209, subsections 1 to 5 or subsection 7, or for a second or subsequent conviction for drag racing.    h.    Whose license has been suspended under the nonresident violator compact.    i.    Who is barred under Iowa Code section 321.560.    j.    Whose license has been suspended due to receipt of a certificate of noncompliance from the child support recovery unit.    k.    Whose license has been suspended due to receipt of a certificate of noncompliance from the college student aid commission.Reserved.    l.    Whose license has been suspended for a charge of vehicular homicide.    m.    Who has been suspended under Iowa Code section 321.180B(3).
ARC 4624CTransportation Department[761]Notice of Intended Action

Proposing rule making related to minor driver’s licenses and providing an opportunity for public comment

    The Department of Transportation hereby proposes to amend Chapter 602, “Classes of Driver’s Licenses,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 307.12.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 321.194 as amended by 2019 Iowa Acts, Senate File 140, sections 1 and 2.Purpose and Summary    The proposed amendments implement 2019 Iowa Acts, Senate File 140, which increases the driving distance that a student with a minor’s school license may drive when the student attends an accredited nonpublic school (private school). Prior to the 2019 legislation, a student attending a private school was limited to driving no more than a 25-mile driving distance between the student’s residence and school. Senate File 140, which was effective July 1, 2019, provides that a student attending a private school will be limited to driving no more than a 50-mile driving distance between the student’s residence and school. Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11.Public Comment    Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Tracy George Department of Transportation DOT Rules Administrator, Strategic Communications and Policy Bureau 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.usPublic Hearing     A public hearing to hear requested oral presentations will be held as follows: September 19, 2019 11 a.m. Department of Transportation Motor Vehicle Division 6310 SE Convenience Boulevard Ankeny, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George, the Department’s rules administrator, and advise of specific needs.     The public hearing will be canceled without further notice if no oral presentation is requested.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend rule 761—602.2(321), introductory paragraph, as follows:

761—602.2(321) Information and forms.  Applications, forms and information about driver’s licensing are available at any driver’s license service center. Assistance is also available by mail fromthe Driver and Identification ServicesBureau, Iowa Department of Transportation, P.O. Box 9204, Des Moines, Iowa 50306-9204; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; by telephone at (515)244-8725; by facsimile at (515)239-1837; or on the department’s website at www.iowadot.gov.

    ITEM 2.    Amend subparagraph 602.26(4)"a" as follows:    (2)   If the applicant attends an accredited nonpublic school, the statement of necessity provided to the department certifies that a need exists to drive from each residence, that the school of enrollment identified in the statement of necessity meets the geographic requirements for an applicant attending an accredited nonpublic school set forth in Iowa Code section 321.194 as determined by the primary residence identified in the statement of necessity, and that the secondary residence identified in the statement of necessity is no more than 2550 miles driving distance from the school of enrollment.

    ITEM 3.    Amend rule 761—602.26(321), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections 321.177,;321.180B,;321.189,;321.194as amended by 2019 Iowa Acts, Senate File 140, sections 1 and 2; and 321.196.
ARC 4623CTransportation Department[761]Notice of Intended Action

Proposing rule making related to OWI and implied consent and providing an opportunity for public comment

    The Department of Transportation hereby proposes to amend Chapter 620, “OWI and Implied Consent,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code sections 307.12 and 321J.20.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 321J.20 and 901D.7 as amended by 2019 Iowa Acts, Senate File 364, sections 1 and 2.Purpose and Summary    The proposed amendments update Chapter 620 to conform the rules with 2019 Iowa Acts, Senate File 364, sections 1 and 2, which amended Iowa Code sections 321J.20 and 901D.7; correct the name of the Driver and Identification Services Bureau; and remove unnecessary language. The 2019 amendment to Iowa Code section 321J.20 provides that the length of participation in the 24/7 sobriety program, which may be a condition of a temporary restricted license issued to a person whose driver’s license has been revoked for certain operating while intoxicated (OWI) offenses, shall continue for the time ordered by the court under Iowa Code section 901D.7. The 2019 amendment to Iowa Code section 901D.7 provides that the length of participation in the 24/7 sobriety program shall be at least 90 days, with a minimum 30-day period during which the person must not have missed or failed an alcohol or drug test under the program immediately preceding discharge from the program. Iowa Code section 321J.20 was also amended in Senate File 364, section 1, to require that the law enforcement agency administering the 24/7 sobriety program within a participating jurisdiction notify the Department when the person’s participation in the program has been completed.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the person’s circumstances meet the statutory criteria for a waiver may petition the Department for a waiver under 761—Chapter 11. Public Comment    Any interested person may submit written comments concerning this proposed rule making or may submit a written request to make an oral presentation at a public hearing. Written comments or requests to present oral comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 17, 2019. Comments should be directed to:Tracy George Department of Transportation DOT Rules Administrator, Strategic Communications and Policy Bureau 800 Lincoln Way Ames, Iowa 50010 Email: tracy.george@iowadot.us Public Hearing    A public hearing to hear requested oral presentations will be held as follows: September 19, 2019 9 a.m. Department of Transportation Motor Vehicle Division 6310 SE Convenience Boulevard Ankeny, Iowa     Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact Tracy George, the Department’s rules administrator, and advise of specific needs. The public hearing will be canceled without further notice if no oral presentation is requested. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making actions are proposed:

    ITEM 1.    Amend rule 761—620.2(321J) as follows:

761—620.2(321J) Information and location.  Applications, forms, information, assistance, and answers to questions relating to this chapter are available by mail fromthe Driver and Identification ServicesBureau, Iowa Department of Transportation, P.O. Box 9204, Des Moines, Iowa 50306-9204; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; by telephone at (515)244-8725; or by facsimile at (515)239-1837.

    ITEM 2.    Amend paragraph 620.3(1)"b" as follows:    b.    To apply for a temporary restricted license, an applicant shall, at any time before or during the revocation period, submit application Form 430400 tothe driver and identification services at the address in 761—620.2(321J)bureau. The application form should be furnished by the arresting officer. It may also be obtained upon oral or written request to the driver and identification servicesbureau.

    ITEM 3.    Amend subrule 620.3(4) as follows:    620.3(4) Denial.  A person who has been denied a temporary restricted license or who contests the restrictions imposed by the department may request an informal settlement conference by submitting a written request to the director ofthe driver and identification services at the address given in 761—620.2(321J)bureau. Following an unsuccessful informal settlement or instead of that procedure, the person may request a contested case hearing in accordance with rule 761—620.4(321J).

    ITEM 4.    Amend subrule 620.4(1) as follows:    620.4(1) Contested case hearing.      a.    A person may request a contested case hearing by checking the appropriate box on Form 432018 and submitting it to the department or by submitting a written request to the director ofthe driver and identification services at the address given in 761—620.2(321J)bureau. The request shall include the person’s name, date of birth, driverdriver’s license number, complete address and telephone number.    b.    A request for a hearing to contest the denial of a temporary restricted license or to contest the restrictions may be submitted at any time.    c.    A request for a hearing to contest a revocation shall be submitted within ten days after receipt of the revocation notice. The request shall be deemed timely submitted if it is delivered to the director ofthe driver and identification servicesbureau or properly addressed and postmarked within this time period.    d.    Failure to timely request a hearing on a revocation is a waiver of the right to a hearing under Iowa Code chapter 321J, and the revocation shall become effective on the date specified in the revocation notice.    e.    After a hearing, a written decision will be issued by the presiding officer.

    ITEM 5.    Amend subrule 620.4(2) as follows:    620.4(2) Appeal.  A decision by a presiding officer shall become the final decision of the department and shall be binding on the department and the person who requested the hearing unless either appeals the decision in accordance with this subrule.    a.    The appeal shall be decided on the basis of the record made before the presiding officer in the contested case hearing and no additional evidence shall be presented.    b.    The appeal shall include a statement of the specific issues presented for review and the precise ruling or relief requested.    c.    An appeal of the presiding officer’s decision shall be submitted in writing by sending the original and one copy of the appeal to the director ofthe driver and identification services at the address given in 761—620.2(321J)bureau.    d.    An appeal shall be deemed timely submitted if it is delivered to the director of the driver and identification servicesbureau or properly addressed and postmarked within ten days after receipt of the presiding officer’s decision.    e.    The director ofthe driver and identification servicesbureau shall forward the appeal to the director of transportation. The director of transportation may affirm, modify or reverse the decision of the presiding officer, or may remand the case to the presiding officer.    f.    Failure to timely appeal a decision shall be considered a failure to exhaust administrative remedies.

    ITEM 6.    Amend subrule 620.4(5) as follows:    620.4(5) Petition to reopen a hearing.      a.    A petition to reopen a hearing pursuant to Iowa Code section 17A.16 shall be submitted in writing to the director ofthe driver and identification services at the address in 761—620.2(321J)bureau. If a petition is based on a court order, a copy of the court order shall be submitted with the petition. If a petition is based on new evidence, the petitioner shall submit a concise statement of the new evidence and the reason(s) for the unavailability of the evidence at the original hearing.    b.    A petition to reopen a hearing may be submitted at any time even if a hearing to contest the revocation was not originally requested or held.    c.    A person may appeal a denial of the petition to reopen. The appeal shall be deemed timely if it is delivered to the director of the driver and identification services at the address in 761—620.2(321J)bureau or properly addressed and postmarked within 20 days after issuance of the decision denying the petition to reopen.

    ITEM 7.    Amend subrule 620.17(2) as follows:    620.17(2) Duration.  Unless otherwise provided in Iowa Code chapter 901D or Iowa Code section 321J.20, the person shall be required to participate in the sobriety and drug monitoring program for the length of time that an ignition interlock device is required as provided in Iowa Code section 321J.20The requirement to participate in and comply with the sobriety and drug monitoring program shall continue for the time period required pursuant to Iowa Code section 901D.7 as amended by 2019 Iowa Acts, Senate File 364, section 2.The participating local enforcement agency shall notify the department when the person has completed participation in the sobriety and drug monitoring program.

    ITEM 8.    Amend 761—Chapter 620, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 17A, 321Jas amended by 2019 Iowa Acts, Senate File 364, section 1; and 901Das amended by 2019 Iowa Acts, Senate File 364, section 2; and sections 321.193, 321.201, 321.376 and 707.6A.
ARC 4631CWorkforce Development Department[871]Notice of Intended Action

Proposing rule making related to social security number on claims for unemployment benefits and providing an opportunity for public comment

    The Director of the Workforce Development Department hereby proposes to amend Chapter 24, “Claims and Benefits,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is proposed under the authority provided in Iowa Code section 96.11.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 96.6.Purpose and Summary    This proposed amendment updates and clarifies the identity verification process used when claims for unemployment insurance benefits are filed.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any. Public Comment     Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Department no later than 4:30 p.m. on September 17, 2019. Comments should be directed to: Nicholas Olivencia Iowa Department of Workforce Development 1000 East Grand Avenue Des Moines, Iowa 50319-0209 Email: nicholas.olivencia@iwd.iowa.govPublic Hearing     No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)“b,” an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).    The following rule-making action is proposed:

    ITEM 1.    Rescind rule 871—24.3(96) and adopt the following new rule in lieu thereof:

871—24.3(96) Social security number needed for filing.  A claim will not become valid until the identity of the claimant has been verified by the department.     24.3(1)   Upon the filing of a claim, notification shall be provided to the claimant if the claimant’s identity was not verified.    24.3(2)   If the agency is unable to verify the claimant’s identity in the claim application, the claimant must provide approved documents. Approved documents must include at least one document containing a social security number. The department shall determine the approved documents required to verify identity. The list of approved documents can be found at the nearest local workforce center or online.    24.3(3)   The claimant’s identity will not be considered verified until approved documents have been provided. The claim shall remain locked from issuance of benefits until the claimant has provided the approved documents to verify identity.     24.3(4)   After filing a claim application, the claimant shall not be eligible for benefits for any week until approved documents are provided to verify identity.    24.3(5)   Approved documents must be provided or postmarked by Saturday at 11:59 p.m. of the week in which the approved documentation is due, and the claim shall be unlocked for all weeks following the most recent effective date of the claim application.     24.3(6)   If required documents are provided in any subsequent weeks following the due date, the claimant shall be eligible, provided there are no other outstanding issues with the claim, as of the Sunday of the week the claimant’s identity was verified.       This rule is intended to implement Iowa Code section 96.6.
ARC 4621CEducational Examiners Board[282]Filed Emergency After Notice

Rule making related to temporary initial license

    The Educational Examiners Board hereby amends Chapter 13, “Issuance of Teacher Licenses and Endorsements,” Iowa Administrative Code. Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 272.2 and 2019 Iowa Acts, Senate File 159.Purpose and Summary    This amendment is intended to implement 2019 Iowa Acts, Senate File 159, which directs the Iowa Board of Educational Examiners to adopt rules to create a nonrenewable initial one-year license for applicants who have met all licensure requirements with the exception of a passing score on the required assessments.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 19, 2019, as ARC 4502C. A public hearing was held on July 10, 2019, at 1 p.m. in Room 3 Southwest, Grimes State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made. Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(b), the Board finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on August 7, 2019, because the rule confers a benefit by allowing license candidates who have completed all requirements except a passing score on the required assessments to receive the newly created license in time for the upcoming 2019-2020 school year. This will confer a benefit on the potential license holders, as well as their potential employers.Adoption of Rule Making    This rule making was adopted by the Board on August 7, 2019.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    The required assessment may not be waived except through the process outlined in 2019 Iowa Acts, Senate File 159, section 6.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on August 7, 2019.    The following rule-making action is adopted:

    ITEM 1.    Amend rule 282—13.6(272) as follows:

282—13.6(272) Specific requirements for an initial license.  An initial license valid for a minimum of two years with an expiration date of June 30 may be issued to an applicant who meets the general requirements set forth in rule 282—13.5(272).    13.6(1)   For an applicant applying pursuant to subrule 13.5(1), a nonrenewable temporary initial license may be issued if the applicant presents an assessment waiver issued by the director of the Iowa department of education within 30 days of the waiver issuance. The applicant must meet the assessment requirement in order to apply for full Iowa licensure.    13.6(2)   For an applicant applying pursuant to subrule 13.5(2), a nonrenewable temporary initial license may be issued to the applicant if all requirements have been met with the exception of the assessments pursuant to subparagraph 13.5(2)“b”(2). The applicant must meet the assessment requirement in order to apply for full Iowa licensure.    13.6(3)   The temporary initial license shall be valid for one year from the date of issuance. This license is nonrenewable and may not be extended. This license may only be issued if the applicant provides an affidavit from the administrator of an Iowa school district or accredited nonpublic school verifying that an offer of a teaching contract has been made and that the employer made every reasonable and good-faith effort to employ a fully licensed teacher for the specified subject and was unable to employ such a teacher.
    [Filed Emergency After Notice 8/7/19, effective 8/7/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4619CEducation Department[281]Filed Emergency After Notice

Rule making related to standards for educator preparation programs

    The State Board of Education hereby amends Chapter 77, “Standards for Teacher Intern Preparation Programs,” Iowa Administrative Code. Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 256.7(3) and 256.16(3).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 256.16 as amended by 2019 Iowa Acts, Senate File 159.Purpose and Summary    Chapter 77 outlines the standards and program requirements that all traditional educator preparation programs must meet in order to be accredited to prepare educators in Iowa. Compliance with these standards is required and is evaluated during each educator preparation program’s accreditation review. The standards are also applied in an annual reporting system. This rule making updates current standards due to changes made to the Iowa Code during the 2019 Legislative Session and to remain current with national standards for educator preparation.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 5, 2019, as ARC 4480C. A public hearing was held on June 25, 2019, at 11 a.m. in the State Board Room, Second Floor, Grimes State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. One reference to the Board of Educational Examiners was changed from the Notice.Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(b), the State Board finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on August 5, 2019, because the rule making confers a public benefit by allowing school districts and new teachers to take advantage of the changes in the rule prior to the new school year beginning on August 23, 2019. Adoption of Rule Making    This rule making was adopted by the State Board on August 1, 2019.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    An agencywide waiver provision is provided for in 281—Chapter 4.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on August 5, 2019.    The following rule-making action is adopted:

    ITEM 1.    Amend paragraph 77.11(2)"c" as follows:    c.    Program completion (to include the assessments described in Iowa Code section 256.16) and subsequent recommendation by the authorized official of the program for an initial teaching license., to include:    (1)   The requirement that each teacher candidate must either meet or exceed a score on subject assessments designed by a nationally recognized testing service that measures pedagogy and knowledge of at least one subject area as approved by the director, or the teacher candidate must meet or exceed the equivalent of a score on an alternate assessment also approved by the director. That alternate assessment must be a valid and reliable subject-area-specific, performance-based assessment for preservice teacher candidates that is centered on student learning. The required passing score will be determined by the director using considerations described in Iowa Code section 256.16(1)“a”(2) as amended by 2019 Iowa Acts, Senate File 159, section 2. A candidate who successfully completes the practitioner preparation program as required under this subparagraph shall be deemed to have attained a passing score on the assessments administered under this subparagraph even if the department subsequently sets different minimum passing scores.    (2)   Waiver by the director of the assessment requirements in this paragraph for not more than one year for a person who has completed the course requirements for an approved intern preparation program but attained an assessment score below the minimum passing score set by the department for successful completion of the program under this paragraph. The department shall forward to the BOEE the names of all candidates granted a waiver for consideration for a temporary license.    [Filed Emergency After Notice 8/5/19, effective 8/5/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4620CEducation Department[281]Filed Emergency After Notice

Rule making related to standards for preparation exams

    The State Board of Education hereby amends Chapter 79, “Standards for Practitioner and Administrator Preparation Programs,” Iowa Administrative Code. Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 256.7(3), 256.7(5) and 256.16(3).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 256.16 as amended by 2019 Iowa Acts, Senate File 159.Purpose and Summary    Chapter 79 outlines the standards and program requirements that all traditional educator preparation programs must meet in order to be accredited to prepare educators in Iowa. Compliance with these standards is required and is evaluated during each educator preparation program’s accreditation review. The standards are also applied in an annual reporting system. This rule making updates current standards due to changes made to the Iowa Code during the 2019 Legislative Session and to remain current with national standards for educator preparation.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 5, 2019, as ARC 4481C. A public hearing was held on June 25, 2019, at 11 a.m. in the State Board Room, Second Floor, Grimes State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. In Item 3, one reference to the Board of Educational Examiners was changed from the Notice.Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(b), the State Board finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on August 5, 2019, because the rule making confers a public benefit by allowing school districts and new teachers to take advantage of the changes in the rule prior to the new school year beginning on August 23, 2019. Adoption of Rule Making    This rule making was adopted by the State Board on August 1, 2019.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    An agencywide waiver provision is provided for in 281—Chapter 4. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on August 5, 2019.    The following rule-making actions are adopted:

    ITEM 1.    Adopt the following new definition of “NELP standards” in rule 281—79.2(256):        "NELP standards" means the National Educational Leadership Preparation standards for administrator preparation.

    ITEM 2.    Amend subrule 79.10(4) as follows:    79.10(4)   The unit demonstrates alignment of unit standards with current national professional standards for educator preparation. Teacher preparation must align with InTASC standards. Leadership preparation programs must align with ISSLNELP standards.

    ITEM 3.    Amend subrule 79.15(6) as follows:    79.15(6)   Assessment requirements.    a.    Each teacher candidate must either meet or exceed a score above the 25th percentile nationally on subject assessments designed by a nationally recognized testing service that measure pedagogy and knowledge of at least one subject area as approved by the director of the department of education, or the teacher candidate must meet or exceed the equivalent of a score above the 25th percentile nationally on an alternate assessment also approved by the director. That alternate assessment must be a valid and reliable subject-area-specific, performance-based assessment for preservice teacher candidates that is centered on student learning.The required passing score will be determined by the director using considerations described in Iowa Code section 256.16(1)“a”(2) as amended by 2019 Iowa Acts, Senate File 159, section 2. A candidate who successfully completes the practitioner preparation program as required under this subparagraph shall be deemed to have attained a passing score on the assessments administered under this subparagraph even if the department subsequently sets different minimum passing scores.    b.    The director shall waive the assessment requirements in 79.15(6)“a” for not more than one year for a person who has completed the course requirements for an approved practitioner preparation program but attained an assessment score below the minimum passing scores set by the department for successful completion of the program under 79.15(6)“a.” The department shall forward to the BOEE the names of all candidates granted a waiver for consideration for a temporary license.

    ITEM 4.    Amend subrule 79.17(1) as follows:    79.17(1)   Each educational administrator program shall define program standards (aligned with current ISSLNELP standards) and embed them in coursework and clinical experiences at a level appropriate for a novice administrator.    [Filed Emergency After Notice 8/5/19, effective 8/5/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4618CRacing and Gaming Commission[491]Adopted and Filed Emergency

Rule making related to sports wagering and fantasy sports contests

    The Racing and Gaming Commission hereby amends Chapter 1, “Organization and Operation,” Chapter 3, “Fair Information Practices,” Chapter 4, “Contested Cases and Other Proceedings,” Chapter 5, “Track, Gambling Structure, and Excursion Gambling Boat Licensees’ Responsibilities,” Chapter 6, “Occupational and Vendor Licensing,” and Chapter 8, “Wagering, Simulcasting and Advance Deposit Wagering,” and adopts new Chapter 13, “Sports Wagering,” and Chapter 14, “Fantasy Sports Contests,” Iowa Administrative Code. Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 99D.7 and 99F.4 and 2019 Iowa Acts, Senate File 617, sections 21, 28, and 44.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code chapters 99D and 99F and 2019 Iowa Acts, Senate File 617.Purpose and Summary    The amendments in this rule making implement 2019 Iowa Acts, Senate File 617, which became effective May 13, 2019, and which authorizes sports wagering and fantasy sports contests in Iowa. This rule making is intended to provide a framework and guidance to all industry participants and to protect the public and ensure the integrity of licensed facilities and participants. These amendments also reconcile existing rules with the new legislation and provide two new chapters of rules, Chapters 13 and 14.    While this rule making became effective on July 31, 2019, wagering and contests did not begin until August 15, 2019, at 12 noon. Licenses were issued with this requirement.Reason for Adoption of Rule Making Without Prior Notice and Opportunity for Public Participation    Pursuant to Iowa Code section 17A.4(3), the Commission finds that notice and public participation are unnecessary or impractical because the statute so provides. The new law took effect upon enactment according to 2019 Iowa Acts, Senate File 617, sections 23, 46, and 52. The Governor signed the bill on May 13, 2019, thereby making the law effective on that date. The Commission is authorized by 2019 Iowa Acts, Senate File 617, sections 21 and 44, to adopt emergency rules under Iowa Code sections 17A.4(3) and 17A.5(2)“b” to implement the provisions of 2019 Iowa Acts, Senate File 617. 2019 Iowa Acts, Senate File 617, sections 21 and 44, require that such emergency rules also be published as a Notice of Intended Action as provided in Iowa Code section 17A.4. Reason for Waiver of Normal Effective Date    Pursuant to Iowa Code section 17A.5(2)“b”(1)(a), the Commission also finds that the normal effective date of this rule making, 35 days after publication, should be waived and the rule making made effective on July 31, 2019, because the new law took effect upon enactment according to 2019 Iowa Acts, Senate File 617, sections 23, 46, and 52. The Governor signed the bill on May 13, 2019, thereby making the law effective on that date, and the Commission is authorized by 2019 Iowa Acts, Senate File 617, sections 21 and 44, to adopt emergency rules under Iowa Code sections 17A.4(3) and 17A.5(2)“b” to implement the provisions of 2019 Iowa Acts, Senate File 617.Adoption of Rule Making    This rule making was adopted by the Commission on July 30, 2019.Concurrent Publication of Notice of Intended Action    In addition to its adoption on an emergency basis, this rule making has been initiated through the normal rule-making process and is published herein under Notice of Intended Action as ARC 4617C to allow for public comment.Fiscal Impact     The Commission will use existing budget and resources to implement these rules, including specific appropriations made during the 2019 Legislative Session for such purposes. Jobs Impact    After analysis and review of this rule making, the Commission finds that the rule making is likely to have a positive jobs impact, which is difficult to measure at this time.Waivers    These rules do not include a provision for the waiver of a rule because the Commission’s general waiver rules in 491—Chapter 1 apply.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making became effective on July 31, 2019.    The following rule-making actions are adopted:

    ITEM 1.    Amend rule 491—1.1(99D,99F) as follows:

491—1.1(99D,99E,99F) Function.  The racing and gaming commission was created by Iowa Code chapter 99D and is charged with the administration of the Iowa pari-mutuel wagering Act and excursion boat gambling Act, sports wagering, and internet fantasy sports contests. Iowa Code chapters 99D, 99E and 99F mandate that the commission shall have full jurisdiction over and shall supervise all race meetings,and gambling operations, sports wagering, and internet fantasy sports contests governed by Iowa Code chapters 99D, 99E and 99F.

    ITEM 2.    Adopt the following new subrules 1.5(10) to 1.5(13):    .(10) Sports wagering for excursion gambling boat, gambling structure or racetrack enclosure application.  This form shall contain, at a minimum, the full name of the applicant, disclosure of agreements involving sports wagering, a guarantee bond in an amount as determined by the commission, and a notarized certification of truthfulness. The applicant shall pay a nonrefundable application fee in the amount of $45,000 to the commission.    .(11) Renewal application for sports wagering for excursion gambling boat, gambling structure or racetrack enclosure.  This form shall contain, at a minimum, the full name of the applicant, a $10,000 annual fee, disclosure of agreements involving sports wagering, sports wagering operations, internal controls, a guarantee bond in an amount as determined by the commission, a gambling treatment program, and a notarized certification of truthfulness. The form may include other information the commission deems necessary to make a decision on the license application.    .(12) Advance deposit sports wagering operator application.  This form shall contain, at a minimum, the full name of the applicant, all ownership interests, balance sheets and profit-and-loss statements for three fiscal years immediately preceding the application, pending legal action, agreement with licensed facility or description of proposed operation, a gambling treatment program, and a notarized certification of truthfulness. The form may include other information the commission deems necessary to make a decision on the license application.    .(13) Internet fantasy sports contest application.  This form shall contain, at a minimum, the full name of the applicant, board members, all ownership interests, balance sheets and profit-and-loss statements for the fiscal year immediately preceding the application, pending legal action, proof of satisfactory segregation of internet fantasy sports contest player contest funds as determined by the commission, a description of the proposed operation and a notarized certification of truthfulness. The form may include other information the commission deems necessary to make a decision on the license application.

    ITEM 3.    Amend rule 491—1.7(99D,99F) as follows:

491—1.7(99D,99F) Criteria for granting licenses, renewing licenses, and determining race dates.  The commission sets forth the following criteria which the commission will consider when deciding whether to issue a license to conduct racing or gamingor sports wagering in Iowa. The various criteria may not have the same importance in each instance, and other factors may present themselves in the consideration of an application for a license. The criteria are not listed in order of priority. After the initial consideration for issuing a license, applicable criteria need only be considered when an applicant has demonstrated a deficiency.    1.7(1) Compliance.  The commission will consider whether or not the applicant is and has been in compliance with the terms and conditions specified in Iowa Code section 99D.9 or 99F.4. The commission will also consider whether the proposed facility is in compliance with applicable state and local laws regarding fire, health, construction, zoning, and other similar matters.    1.7(2) Gaming integrity.  The commission will consider whether the proposed operation would ensure that gaming isand sports wagering are conducted with a high degree of integrity in Iowa and that the officers, directors, partners, or shareholders of the operation are of good repute and moral character. The commission shall decide what weight and effect evidence about an officer, director, partner, or shareholder should have in the determination of whether there is substantial evidence that the individual is not of good reputation and character.For the purposes of this chapter, the term “directors” shall also include managers of limited liability companies and the term “shareholders” shall also include members of limited liability companies.    1.7(3) Economic impact and development.  The commission will consider:    a.    The amount of revenue to be provided by the proposed facility to the state and local communities through direct taxation on the facility’s operation and indirect revenues from tourism, ancillary businesses, creation of new industry, and taxes on employees and patrons. The commission may engage an independent firm proficient in market feasibility studies in the industry for specific analysis of any application to determine the potential market of any proposed facility as well as the impact on existing licensees.    b.    The level of financial and other support the proposed operation will provide to the community in order to improve the quality of life of the residents of the community.    c.    The viability and overall net benefit of the proposed operation to the state gaming industry, taking into consideration:    (1)   Investment versus projected adjusted gross revenue.    (2)   Impact on existing operators’ adjusted gross revenue versus existing operators’ ratio of adjusted gross revenue to investment.    (3)   Ratio of equity to total investment and whether the proposed project is adequately and properly financed.    (4)   Percent of projected adjusted gross revenue from underserved markets.    (5)   Percent of projected adjusted gross revenue from existing Iowa operators.    (6)   Stability and reliability of out-of-state market(s).    d.    The benefits to Iowa tourism.    e.    The number and quality of employment opportunities for Iowans.    f.    The development and sale of Iowa products.    g.    The number and types of developments and amenities associated with the proposed operation in addition to the gaming floor.    1.7(4) Efficient and safe operation.  The commission will consider whether the proposed facility is planned in a manner that promotes efficient and safe operation of all aspects of the facility including providing adequate security for employees and patrons. Adequate employment to serve patrons’ needs, facility scope and design, parking facilities, access to cashier windows, concessions, and restrooms will be considered.    1.7(5) Community support.  The commission will consider support for the proposed project within the community in which a proposed facility is to be located.    1.7(6) Nurture of the racing industry.  The commission will consider whether the proposed racetrack operation would serve to nurture, promote, develop, and improve the racing industry in Iowa and provide high-quality racing in Iowa. The commission will also consider if the proposed racetrack operation will maximize purses and is beneficial to Iowa breeders.    1.7(7) Other factors.  The commission will consider such other factors as may arise in the circumstances presented by a particular application.

    ITEM 4.    Amend subrule 3.10(1) as follows:    3.10(1)   To the extent allowed by law, the following uses are considered routine uses of all agency records:    a.    Disclosure to those officers, employees, and agents of the agency who have a need for the record in the performance of their duties. The custodian of the record may upon request of any officer, employee, or on the custodian’s own initiative, determine what constitutes legitimate need to use confidential records.    b.    Disclosure of information indicating an apparent violation of the law to appropriate law enforcement authorities for investigation and possible criminal prosecution, civil court action, or regulatory order.    c.    Transfers of information within the agency, to other state agencies, or to local units of government as appropriate to administer the program for which the information is collected.    d.    Information released to staff of federal and state entities for audit purposes or for purposes of determining whether the agency is operating a program lawfully.    e.    Any disclosure specifically authorized by the statute under which the record was collected or maintained.    f.    Information transferred to any originating agency when racing and gaming commission has completed the authorized audit, investigation, or inspection.    g.    Information reported pursuant to Iowa Code sections 99E.8 and 99F.12 to any sports team or governing body having jurisdiction over sports teams.

    ITEM 5.    Amend subrule 3.13(2) as follows:    3.13(2)   Confidential records. The following records may be withheld from public inspection. Records are listed by category, according to the legal basis for withholding them from public inspection.    a.    Sealed bids received prior to the time set for public opening of bids. (Iowa Code section 72.3)    b.    Tax records made available to the agency. (Iowa Code sections 422.20 and 422.72)    c.    Exempt records under Iowa Code section 22.7.    d.    Minutes of closed meetings of a government body. (Iowa Code section 21.5(4))    e.    Identifying details in final orders, decisions and opinions to the extent required to prevent a clearly unwarranted invasion of personal privacy or trade secrets under Iowa Code section 17A.3(1)“d.”    f.    Those portions of commission staff manuals, instructions or other statements issued which set forth criteria or guidelines to be used by commission staff in auditing, in making inspections, in settling commercial disputes or negotiating commercial arrangements, or in the selection or handling of cases, such as operational tactics or allowable tolerances or criteria for the defense, prosecution or settlement of cases, when disclosure of these statements would:    (1)   Enable law violators to avoid detection;    (2)   Facilitate disregard of requirements imposed by law; or    (3)   Give a clearly improper advantage to persons who are in an adverse position to the agency. (Iowa Code sections 17A.2 and 17A.3)    g.    Records which constitute attorney work product, attorney-client communications, or which are otherwise privileged. Attorney work product is confidential under Iowa Code sections 22.7(4), 622.10 and 622.11, Iowa R.C.P. 1.503, the rules of evidence, the Code of Professional Responsibility, and case law.    h.    Criminal investigative reports. (Iowa Code section 22.7(5))    i.    Information gathered during an investigation during pendency of the investigation or information requested for inspection by the commission or a representative of the commission. (Iowa Code sections 99D.7(9), 99D.19(3),99E.3(2), 99E.8(2), 99F.4(6), 99F.12(2), and 99F.12(4))    j.    Personnel files and employee records. Information required for tax withholding, information concerning employee benefits, affirmative action reports, and other information concerning the employer-employee relationship. Some of this information is confidential under Iowa Code section 22.7(11).    k.    Security plans, surveillance system plans and records, network audits, internal controls, and compliance records of the licensees that are made available to the commission that would enable law violators to avoid detection and give a clearly improper advantage to persons who are in an adverse position to the agency. (Iowa Code sections 17A.2, 17A.3, 22.7(18), 99D.19(3), 99E.8(4), 99F.12(2)“b” and 99F.12(4))    l.    Promotional play receipts records and marketing expenses. (Iowa Code sections 99D.19(3), 99E.8(4) and 99F.12(4))    m.    Patron and customer records. (Iowa Code sections 99D.19(3), 99E.8(4) and 99F.12(4))    n.    Supplemental schedules to the certified audit that are obtained by the commission in connection with the annual audit under Iowa Code sections 99D.20, 99E.9 and 99F.13. (Iowa Code sections 99D.19(3) and 99F.12(4))    o.    Names, social security numbers and any other personally identifiable information regarding persons who have voluntarily excluded themselves and are a part of the interactive Internet site maintained by the commission. (Iowa Code sections 99D.7(23) and 99F.4(22) as amended by 2018 Iowa Acts, House File 2349)

    ITEM 6.    Amend rule 491—3.14(17A,22) as follows:

491—3.14(17A,22) Personally identifiable information.  The commission maintains systems of records which contain personally identifiable information.    3.14(1) Board of stewards or gaming board hearings and contested case records.  Records are maintained in paper and computer files and contain names and identifying numbers of people involved. Evidence and documents submitted as a result of a hearing are contained in the board of stewards or gaming board hearing or contested case records as well as summary lists of enforcement activities.Records are collected by authority of Iowa Code chapters 99D, 99E and 99F. None of the information stored in a data processing system is compared with information in any other data processing system.    3.14(2) Occupational licensing.  Records associated with occupational licensing conducted under Iowa Code chapters 99D, 99E and 99F are maintained by this commission. The licensing system of records includes numerous files and crossfiles which include but are not limited to: computer storage of licensing records and photos, fingerprint cards, and license applications. The records associated with occupational licenses, which contain personally identifiable information, are open for public inspection only upon the approval of the administrator or the administrator’s designee. The information stored in a data processing system is not compared with information in any other data processing system.    3.14(3) List of contested cases and stewards’ hearings.  The commission may utilize a listing of contested case and stewards’ hearings furnished by a national organization and provide individually identifiable information to that organization. The list is used for purposes delineated in Iowa Code chapter 99D.

    ITEM 7.    Amend rule 491—4.2(17A), definition of “Gaming board,” as follows:        "Gaming board" means a board established by the administrator to review conduct by occupational, excursion gambling boat, gambling structure,sports wagering, fantasy sports contest and gambling game licensees that may constitute violations of the rules and statutes relating to gaming. The administrator may serve as a board of one.

    ITEM 8.    Amend rule 491—4.4(99D,99F) as follows:

491—4.4(99D,99E,99F) Gaming representatives—licensing and regulatory duties.      4.4(1)   The gaming representative shall make decisions whether to approve applications for occupational licenses, in accordance with the rules and statutes.    a.    Each decision denying a license for an occupational license shall be in writing. The decision must contain a brief explanation of the reason for the decision, including a reference to the statute or rule serving as the basis for the decision.    b.    Rescinded IAB 2/5/03, effective 3/12/03.    c.    Rescinded IAB 9/29/04, effective 11/3/04.    d.    Upon the filing of a timely and perfected appeal, the applicant has the right to a contested case proceeding, as set forth supra in these rules.    4.4(2)   The gaming representativeor the administrator’s designee shall monitor, supervise, and regulate the activities of occupational, pari-mutuel racetrack,sports wagering, fantasy sports contest, gambling game, excursion gambling boat, and gambling structure licensees. A gaming representativeor the administrator’s designee may investigate any questionable conduct by a licensee for any violation of the rules or statutes. A gaming representativeor the administrator’s designee may refer an investigation to the gaming board upon suspicion that a licensee or nonlicensee has committed a violation of the rules or statutes.    a.    A gaming representative shall make a referral to the gaming board in writing. The referral shall make reference to rules or statutory provisions at issue and provide a factual basis supporting the violation.    b.    The gaming representative making the referral to the gaming board, or a designee of the gaming board, shall appear before the gaming board at the hearing to provide any information requested by the board.    4.4(3)   A gaming representativeor the administrator’s designee shall summarily suspend an occupational license when a licensee has been formally arrested or charged with a crime that would disqualify the licensee, if convicted, from holding a license and the gaming representativeor the administrator’s designee determines that the licensee poses an immediate danger to the public health, safety, or welfare of the patrons, participants, or animals associated with a facility licensed under Iowa Code chapter 99D, 99E or 99F. Upon proof of resolution of a disqualifying criminal charge or formal arrest, regardless of summary suspension of a license, the gaming representative shall take one of the following courses of action:    a.    If the license was summarily suspended and the charges are dismissed or the licensee is acquitted of the charges, the gaming representative shall reinstate the license.    b.    If the licensee is convicted of the charges, the gaming representative shall deny the license.    c.    If the licensee is convicted of a lesser charge, it is at the discretion of the gaming representative whether to reinstate or deny the license pursuant to 491—Chapter 6.    4.4(4)   The gaming representative shall revoke the license of a person reported to the commission as having refused drug testing or as having a confirmed positive drug test result for a controlled substance, for a drug test conducted pursuant to Iowa Code section 730.5 or 99F.4(20).    4.4(5)   A gaming representative may eject and exclude any person from the premises of a pari-mutuel racetrack, excursion gambling boat, or gambling structure for any reason justified by the rules or statutes. The gaming representative may provide notice of ejection or exclusion orally or in writing. The gaming representative may define the scope of the exclusion to any degree necessary to protect the integrity of racing and gaming in Iowa. The gaming representative may exclude the person for a certain or an indefinite period of time.    4.4(6)   The gaming representative may forbid any person from continuing to engage in an activity the representative feels is detrimental to racing or gaming until resolved.    4.4(7)   The gaming representative shall have other powers and duties set forth in the statutes and rules, and as assigned by the administrator.    4.4(8)   A gaming representative may summarily suspend an occupational licensee in accordance with rule 491—4.47(17A).

    ITEM 9.    Amend rule 491—4.5(99D,99F), parenthetical implementation statute, as follows:

491—4.5(99D,99E,99F) Gaming board—duties.  

    ITEM 10.    Amend rule 491—4.7(99D,99F), introductory paragraph, as follows:

491—4.7(99D,99E,99F) Penalties (gaming board and board of stewards).  All penalties imposed will be promptly reported to the commission and facilityor other licensed entity in writing. The board may impose one or more of the following penalties: eject and exclude an individual from a facility; revoke a license; suspend a license for up to five years from the date of the original suspension; place a license on probation; deny a license; impose a fine of up to $1000; or order a redistribution of a racing purse or the payment of or the withholding of a gaming payout. The board may set the dates for which the suspension must be served. The board may also suspend the license of any person currently under suspension or in bad standing in any other state or jurisdiction by a state racing or gaming commission. If the punishment so imposed is not sufficient, in the opinion of the board, the board shall so report to the commission.

    ITEM 11.    Amend rule 491—4.8(99D,99F), parenthetical implementation statute, as follows:

491—4.8(99D,99E,99F) Effect of another jurisdiction’s order.  

    ITEM 12.    Amend rule 491—4.9(99D,99F), parenthetical implementation statute, as follows:

491—4.9(99D,99E,99F) Service of administrative actions.  

    ITEM 13.    Amend rule 491—4.10(99D,99F), parenthetical implementation statute, as follows:

491—4.10(99D,99E,99F) Appeals of administrative actions.  

    ITEM 14.    Amend rule 491—5.1(99D,99F) as follows:

491—5.1(99D,99F) In general.  For purposes of this chapter, the requirements placed upon an applicant shall become a requirement to the licensee once a license to race or operate a gaming facility has been granted. Every license is granted upon the condition that the license holder shall accept, observe, and enforce the rules and regulations of the commission. It is the affirmative responsibility and continuing duty of each officer, director, and employee of said license holder to comply with the requirements of the application and conditions of the license and to observe and enforce the rules. The holding of a license is a privilege. The burden of proving qualifications for the privilege to receive any license is on the licensee at all times. A licensee must accept all risks of adverse public notice or public opinion, embarrassment, criticism, or financial loss that may result from action with respect to a license. Licensees further covenant and agree to hold harmless and indemnify the Iowa racing and gaming commission from any claim arising from any action of the commission in connection with that license.This chapter applies to a license to race or operate a gaming facility unless otherwise noted.

    ITEM 15.    Amend rule 491—5.2(99D,99F) as follows:

491—5.2(99D,99F) Annual reports.  Licensees shall submit audits to the commission as required by Iowa Code sections 99D.20 and 99F.13.     5.2(1)   The audit of financial transactions and condition of licensee’s operation shall include:     a.    An internal control letter;    b.    Documentation that the county board of supervisors selected the auditing firmaudit shall be conducted by certified public accountants authorized to practice in the state of Iowa under Iowa Code chapter 542;    c.    A balance sheet; and    d.    A profit-and-loss statement pertaining to the licensee’s activities in the state, including a breakdown of expenditures and subsidies.    5.2(2)   If the licensee’s fiscal year does not correspond to the calendar year, a supplemental schedule indicating financial activities on a calendar-year basis shall be included in the report.    5.2(3)   In the event of a license termination, change in business entity, or material change in ownership, the administrator may require the filing of an interim report, as of the date of occurrence of the event. The filing due date shall be the later of 30 calendar days after notification to the licensee or 30 calendar days after the date of the occurrence of the event, unless an extension is granted.    5.2(4)   An engagement letter for the audit between the licensee and auditing firm shall be available upon request. The engagement letter requirement does not apply to the licensed qualified sponsoring organization. Conditions of engagement for the audit shall include, at a minimum, the following requirements:    a.    The auditing firm shall report any material errors, irregularities or illegal acts that come to the firm’s attention during the course of an audit to the licensee’s audit committee or senior management as required by the rules of professional conduct that apply to the auditing firm. The licensee shall report such material errors, irregularities or illegal acts to the commission in a timely manner following reporting to the licensee’s audit committee or senior management.    b.    The auditing firm shall inform the commission in writing of matters that come to the firm’s attention that represent significant deficiencies in the design or operation of the internal control structure.    c.    The audit supervisor or an audit staff member conducting the audit must have experience or training in the gaming industry.    d.    The auditing firm agrees to respond timely to all reasonable requests of successor auditors.    e.    The auditing firm agrees, if requested by the commission, to provide licensee management and the commission with recommendations designed to help the licensee make improvements in its internal control structure and operation, and other matters that are discovered during the audit.    5.2(5)   Consolidated financial statements may be filed by commonly owned or operated establishmentsFor a licensed subsidiary of a parent company, an audit of the parent company may be filed with the following conditions:    a.    The consolidated financial statements shall include in the supplemental schedule, or elsewhere as determined by the licensee and auditing firm, for each licensee: balance sheets, statements of operations, statements of cash flows, schedules of operating expenses and schedules of adjusted gross revenue and taxes and fees paid to governmental agencies.    b.    The auditing firm must audit and issue a report on the separate financial statements that expresses an opinion for each individual entity licensed in Iowa.    c.    Any internal audit staff assisting with the audit shall report any material errors, irregularities or illegal acts that come to the staff’s attention during the course of an audit to the licensee’s audit committee or senior management as required by the rules of professional conduct. The licensee shall report such material errors, irregularities or illegal acts to the commission in a timely manner following reporting to the licensee’s audit committee or senior management.    d.    All other requirements in this rule are met and included for each entity licensed in Iowa unless an exception is granted in writing by the commission (or administrator).     5.2(6)   The annual audit report required by Iowa Code section 99D.20 shall include a schedule detailing the following information: number of performances; attendance; regulatory fee; total mutuel handle and taxes paid to the state, city, and county; unclaimed winnings; purses paid indicating sources; total breakage and disbursements; and the disbursements of 1 percent of exotic wagers on three or more racing animals.    5.2(7)   The annual audit report required by Iowa Code section 99F.13 shall include:    a.    A schedule detailing a weekly breakdown of adjusted gross revenue; taxes paid to the state, city, county, and county endowment fund; and regulatory fees.    b.    A report on whether material weaknesses in internal accounting control exist. A report shall be filed for each individual entity licensed in Iowa if a consolidated audit is provided.     5.2(8)   Internal control records, compliance records, marketing expenses, and supplemental schedules included in the annual reports shall be kept confidential, as outlined in Iowa Code section 99F.12(4).

    ITEM 16.    Amend rule 491—5.4(99D,99F) as follows:

491—5.4(99D,99F) Uniform requirements.      5.4(1) Maintenance of premises and facilities.  Each licensee shall at all times maintain its premises and facilities so as to be neat and clean, well landscaped, painted and in good repair, handicapped accessible, with special consideration for the comfort and safety of patrons, employees, and other persons whose business requires their attendance.    5.4(2) Facilities for commission.  Each licensee shall provide reasonable, adequately furnished office space, including utilities, direct long-distance access for voice and data lines, custodial services, and necessary office equipment, and, if applicable, work space on the boat for the exclusive use of the commission employees and officials. The licensee shall also make available appropriate parking places for commission staff.    5.4(3) Sanitary facilities for patrons.  Each licensee shall, on every day of operation, provide adequate and sanitary toilets and washrooms and furnish free drinking water for patrons and persons having business on the licensee’s premises.    5.4(4) First-aid room.      a.    During all hours of operation, each licensee shall equip and maintain adequate first-aid facilities and have, at a minimum, one employee trained in CPR, first aid, and the use of the automated external defibrillator (AED). During live racing at horse racetracks and while excursion gambling boats are cruising, the licensee shall have present either a physician, a physician assistant, a registered nurse, a licensed practical nurse, a paramedic, or an emergency medical technician.    b.    All individuals specified under paragraph 5.4(4)“a” must be currently licensed or certified, including active status, in accordance with the requirements of the Iowa department of public health.    c.    Each licensee is required to have a properly functioning and readily accessible AED at the licensee’s facility.    5.4(5) Security force.      a.    Peace officer.Each licensee shall ensure that a person who is a certified peace officer is present as outlined in the facility’s security plan approved by the commission. A certified peace officer pursuant to this rule must be employed by a law enforcement agency and have police powers.    b.    Employ adequate security.Each licensee shall employ sufficient security to remove from the licensed premises a person violating a provision of Iowa Code chapter 99D or 99F, commission rules, or orders; any person deemed to be undesirable by racing and gaming commission officials; or any person engaging in a fraudulent practice. Security shall also be provided in and about the premises to secure restricted areas including, but not limited to, the barn area, kennel area, paddock, and racing animal drug testing area.    c.    Incident reports.The licensee shall be required to file a written report, within 72 hours, detailing any incident in which an employee or patron is detected violating a provision of Iowa Code chapter 99D or 99F, a commission rule or order, or internal controls; or is removed for reasons specified under paragraph 5.4(5)“b.” In addition to the written report, the licensee shall provide immediate notification to the commission and DCI representatives on duty or, if representatives are not on duty, provide notification on each office’s messaging system if the incident involved employee theft, criminal activity, Iowa Code chapter 99D or 99F violations, or gaming receipts.    d.    Ejection or exclusion.A licensee may eject or exclude any person, licensed or unlicensed, from the premises or a part thereof of the licensee’s facility, solely of the licensee’s own volition and without any reason or excuse given, provided ejection or exclusion is not founded on constitutionally protected grounds such as race, creed, color, disability, or national origin.Reports of all ejections or exclusions for any reason, other than voluntary exclusions, shall be made promptly to the commission representative and DCI and shall state the circumstances. The name of the person must be reported when the person is ejected or excluded for more than one gaming day.The commission may exclude any person ejected by a licensee from any or all pari-mutuel facilities, gambling structures, or excursion gambling boats controlled by any licensee upon a finding that attendance of the person would be adverse to the public interest.    5.4(6) Firearms possession within licensed facility.      a.    No patron or employee of the licensee, including the security department members, shall possess or be permitted to possess any pistol or firearm within a licensed facility without the express written approval of the administrator unless:    (1)   The person is a peace officer, on duty, acting in the peace officer’s official capacity; or    (2)   The person is a peace officer possessing a valid peace officer permit to carry weapons who is employed by the licensee and who is authorized by the administrator to possess such pistol or firearm while acting on behalf of the licensee within that licensed facility.    b.    Each licensee shall post in a conspicuous location at each entrance a sign that may be easily read stating, “Possession of any firearm within the licensed facility without the express written permission of the Iowa racing and gaming commission is prohibited”.    5.4(7) Video recording.  Licensees shall conduct continuous surveillance with the capability of video recording allon-site gambling activities under Iowa administrative rules 661—Chapter 141, promulgated by the department of public safety.    a.    “Gambling activities” means participating in orany form of wagering on gambling games on the gaming flooras defined by Iowa Code chapter 99F and approved by the commission; the movement, storage, and handling of uncounted gambling revenues; manual exchange of moneys for forms of wagering credit on the gaming floor; entrance of the public onto the gaming floor; and any other activity as determined by the commission administrator or administrator’s designee.    b.    Commission and DCI representatives shall have unrestricted access to and use of, including independent access capabilities, both live and recorded views and images of the surveillance system.    c.    A commission representative may allow a gambling game to be placed in operation pending approval under 661—Chapter 141.    d.    A surveillance department shall develop a standard operating procedure manual, which shall include surveillance system maintenance and emergency plans. This manual shall be made available for inspection by the commission and DCI.    e.    A facility may include capabilities within the surveillance system for video recording of other areas of a facility and grounds, provided that commission and DCI access is unrestricted.    5.4(8) Commission approval of contracts and business arrangements.      a.    Qualifying agreements.    (1)   All contracts and business arrangements entered into by a facility are subject to commission jurisdiction. Written and verbal contracts and business arrangements involving a related party or in which the term exceeds three years or the total value in a calendar year exceeds $100,000 regardless of payment method are agreements that qualify for submission to and approval by the commission. Contracts and business arrangements with entities licensed pursuant to rule 491—11.13(99F) to obtain gambling games and implements of gambling, as defined by rule 491—11.1(99F), are exempt from submission to and approval by the commission. For the purpose of this subrule, a qualifying agreement shall be limited to:
  1. Any obligation that expends, encumbers, or loans facility assets to anyone other than a not-for-profit entity, a unit of government for the payment of taxes, or an entity that provides water, sewer, gas or electric utility services to the facility.
  2. Any disposal of facility assets or provision of goods and services at less than market value to anyone other than a not-for-profit entity or a unit of government.
  3. A previously approved qualifying agreement, if consideration exceeds the approved amount in a calendar year by the greater of $100,000 or 25 percent or if the commission approval date of an ongoing contract is more than five years old.
  4. Any type of contract, regardless of value or term, where a third party provides electronic or mechanical access to cash or credit for a patron of the facility. The contract must contain a clause that provides for immediate notification and implementation when technology becomes available to allow a person to voluntarily bar the person’s access to receive cash or credit from such devices located on the licensed premises.
    (2)   A debt transaction greater than $3 million entered into by a licensee or licensee’s parent company assigning an obligation to a licensee, except a debt transaction previously approved in subrule 5.4(20), is subject to commission jurisdiction. The request for approval shall include:
  1. The names and addresses of all parties;
  2. The amount and source of funds;
  3. The nature and amount of security and collateral provided;
  4. The specific nature and purpose of the transaction; and
  5. The term sheet or executive summary of the transaction.
    (3)   A qualifying agreement must be submitted within 30 days of execution. Commission approval must be obtained prior to implementation, unless the qualifying agreement contains a written clause stating that the agreement is subject to commission approval. Qualifying agreements need only be submitted on initiation, unless there is a material change in terms or noncompliance with 5.4(8)“b”(4) or to comply with 5.4(8)“a”(1)“3.”
    b.    Purpose of review.The commission conducts reviews to serve the public interest to ensure that:    (1)   Gaming is free from criminal and corruptive elements.    (2)   Gaming-related funds are directed to the lawful recipient.    (3)   Gaming profits are not improperly distributed.    (4)   Iowa resources, goods and services are utilized. Resources, goods, and services shall be considered to be made in Iowa, be provided by Iowans, or emanate from Iowa if one or more of the following apply:
  1. Goods are manufactured in Iowa.
  2. Goods are distributed through a distributor located in Iowa.
  3. Goods are sold by a retailer/wholesaler located in Iowa.
  4. Resources are produced or processed in Iowa.
  5. Services are provided by a vendor whose headquarters/home office is in Iowa.
  6. Goods, resources or services are provided by a vendor whose headquarters/home office is located outside Iowa, but which has a tangible business location (not simply a post office box) and does business in Iowa.
  7. Services beyond selling are provided by employees who are based in Iowa.
A facility shall be considered to have utilized a substantial amount of Iowa resources, goods, services and entertainment in compliance with Iowa Code sections 99D.9 and 99F.7(4) if the facility demonstrates to the satisfaction of the commission that preference was given to the extent allowed by law and other competitive factors.
    c.    Related parties.Other submittal requirements notwithstanding, agreements negotiated between the facility and a related party must be accompanied by an economic and qualitative justification. For the purpose of this subrule, related party shall mean any one of the following having any beneficial interest in any other party with whom the facility is seeking to negotiate an agreement:    (1)   Any corporate officer or member of a facility’s board of directors.    (2)   Any owner with more than a 5 percent interest in a facility.    (3)   A member of either the qualified sponsoring organization or the qualifying organization under Iowa Code section 99D.8 associated with a facility.    d.    Review criteria.The commission shall approve all qualifying agreements that, in the commission’s sole opinion, represent a normal business transaction and may impose conditions on an approval. The commission may deny approval of any agreement that, in the commission’s sole opinion, represents a distribution of profits that differs from commission-approved ownership and beneficial interest. This subrule does not prohibit the commission from changing the approved ownership or beneficial interest.
    5.4(9) Checks.  All checks accepted must be deposited in a bank by the close of the banking day following acceptance.    5.4(10) Taxes and fees.      a.    Annual taxes and fees.All taxes and fees, whose collection by the state is authorized under Iowa Code chapters 99D and 99F, shall be accounted for on a fiscal-year basis, each fiscal year beginning on July 1 and ending on June 30.    b.    Submission ofgambling game taxes and fees.    (1)   All moneys collected for and owed to the commission or state of Iowa under Iowa Code chapter 99F shall be accounted for and itemized on a weekly basis in a format approved by the commission. Each day on the report shall be an accurate representation of the gaming activities. A week shall begin on Monday and end on Sunday.     (2)   The reporting form must be received in the commission office by noon on Wednesday following the week’s end. The moneys owed, according to the reporting form, must be received in the treasurer’s office by 11 a.m. on the Thursday following the week’s end.    (3)   Pursuant to Iowa Code section 99F.1(1), taxes from promotional play receipts that are received within the same gaming week but after the date when the limit set forth in the definition of “adjusted gross receipts” is exceeded, as determined by the administrator, will be credited to each facility in the next available gaming week within the same fiscal year.     c.    Calculation of promotional play receipts.For the purpose of calculating the amount of taxes received from promotional play receipts during a fiscal year, the commission will consider promotional play receipts as taxed in proportion to total adjusted gross receipts for each gaming day.    d.    Submission of sports wagering net receipts taxes.    (1)   A tax is imposed on the sports wagering net receipts received each fiscal year from sports wagering. “Sports wagering net receipts” means the gross receipts less winnings paid to wagerers on sports wagering. Voided and canceled transactions are not considered receipts for the purpose of this calculation. Any offering used to directly purchase a wager shall be considered receipts for the purpose of this calculation.    (2)   All moneys collected for and owed to the state of Iowa under Iowa Code chapter 99F for the payment of sports wagering taxes shall be accounted for, itemized, and paid on a monthly basis by the fifteenth of each month in a format approved by the commission. If sports wagering net receipts for a month are negative, a credit for sports wagering taxes may be given in the subsequent month.    (3)   Licensees under Iowa Code section 99F.7 or 99F.7A are responsible for the payment of all sports wagering taxes.    (4)   Controls shall be established by the licensee and approved by the administrator which easily allow for the designation and recording of sports wagering net receipts to an individual licensee and the redemption of winnings to the respective licensee.    5.4(11) Rate of tax revenue.  Each licensee shall prominently display at the licensee’s gambling facility the annual percentage rate of state and local tax revenue collected by state and local government from the gambling facility annually.    5.4(12) Problem gambling.      a.    The holder of a license to operate gambling games and the holder of a license to accept simulcast wagering shall adopt and implement policies and procedures designed to:    (1)   Identify problem gamblers;     (2)   Comply with the process established by the commission to allow a person to be voluntarily excluded from the gaming floor of an excursion gambling boat, from the wagering area as defined in Iowa Code section 99D.2,from the sports wagering area as defined in Iowa Code section 99F.1(24), and from the gaming floor of all other licensed facilities or gambling activities regulated under Iowa Code chapters 99D and 99F; and    (3)   Allow persons to be voluntarily excluded for five years or life from all facilities on a form prescribed by the commission. Each facility will disseminate information regarding the exclusion to all other licensees and the commission.    b.    The policies and procedures shall be developed in cooperation with the gambling treatment program and shall include without limitation the following:    (1)   Training of key employees to identify and report suspected problem gamblers;    (2)   Procedures for recording and tracking identified problem gamblers;    (3)   Policies designed to prevent serving alcohol to intoxicated casino patrons;    (4)   Steps for removing problem gamblers from the casino; and    (5)   Procedures for preventing reentry of problem gamblers.    c.    A licensee shall include information on the availability of the gambling treatment program in a substantial number of its advertisements and printed materials.    d.    Money forfeited by a voluntarily excluded person pursuant to Iowa Code sections 99D.7(23) and 99F.4(22) shall be withheld by the licensee and remitted to the general fund of the state by the licenseeunder Iowa Code chapters 99D and 99F.    5.4(13) Records regarding ownership.      a.    In addition to other records and information required by these rules, each licensee shall maintain the following records regarding the equity structure and owners:    (1)   If a corporation:
  1. A certified copy of articles of incorporation and any amendments thereto.
  2. A copy of bylaws and amendments thereto.
  3. A current list of officers and directors.
  4. Minutes of all meetings of stockholders and directors.
  5. A current list of all stockholders and stockholders of affiliates, including their names and the names of beneficial shareholders.
  6. A complete record of all transfers of stock.
  7. A record of amounts paid to the corporation for issuance of stock and other capital contributions and dates thereof.
  8. A record, by stockholder, of all dividends distributed by the corporation.
  9. A record of all salaries, wages, and other remuneration (including perquisites), direct and indirect, paid by the corporation during the calendar or fiscal year to all officers, directors, and stockholders with an ownership interest at any time during the calendar or fiscal year, equal to or greater than 5 percent of the outstanding stock of any class of stock.
    (2)   If a partnership:
  1. A schedule showing the amounts and dates of capital contributions, the names and addresses of the contributors, and percentage of interest in net assets, profits, and losses held by each.
  2. A record of the withdrawals of partnership funds or assets.
  3. A record of salaries, wages, and other remuneration (including perquisites), direct and indirect, paid to each partner during the calendar or fiscal year.
  4. A copy of the partnership agreement and certificate of limited partnership, if applicable.
    (3)   If a sole proprietorship:
  1. A schedule showing the name and address of the proprietor and the amount and date of the original investment.
  2. A record of dates and amounts of subsequent additions to the original investment and withdrawals therefrom.
  3. A record of salaries, wages, and other remuneration (including perquisites), direct or indirect, paid to the proprietor during the calendar or fiscal year.
    b.    All records regarding ownership shall be located in a place approved by the commission.    c.    If the licensee is publicly held, upon the request of the administrator, the licensee shall submit to the commission one copy of any report required to be filed by such licensee or affiliates with the Securities and Exchange Commission or other domestic or foreign securities regulatory agency. If the licensee is privately held, upon the request of the administrator, the licensee shall submit financial, ownership, or other entity records for an affiliate.
    5.4(14) Retention, storage, and destruction of books, records, and documents.      a.    Except as otherwise provided, all original books, records, and documents pertaining to the licensee’s operations shall be:    (1)   Prepared and maintained in a complete and accurate form.    (2)   Retained at a site approved by the administrator until audited.    (3)   Held immediately available for inspection by the commission during business hours of operations.    (4)   Organized and indexed in such a manner as to provide immediate accessibility to the commission.    b.    For the purpose of this subrule, “books, records, and documents” shall be defined as any book, record, or document pertaining to or prepared or generated by the licensee including, but not limited to, all forms, reports, accounting records, ledgers, subsidiary records, computer-generated data, internal audit records, correspondence, contracts, and personnel records, including information concerning a refusal to submit to drug testing and test results conducted pursuant to Iowa Code section 730.5.    c.    All original books, records, and documents may be copied and stored on microfilm, microfiche, or other suitable media system approved by the administrator.    d.    No original book, record, document, or suitable media copy may be destroyed by a licensee, for three years, without the prior approval of the administrator.    5.4(15) Remodeling.  For any construction that changes the specific function of a public space of the facility, the licensee must first submit plans to and receive the approval of the administrator.    5.4(16) Officers, agents, and employees.  Licensees are accountable for the conduct of their officers, agents, and employees. The commission or commission representative reserves the right to impose penalties against the license holder or its officer, agent, employee, or both as the commission or commission representative determines appropriate. In addition, the licensee shall be responsible for the conduct of nonlicensed persons in nonpublic areas of the excursion gambling boat, gambling structure, or racetrack enclosure.    5.4(17) Designated gaming floor.  The designated gaming floor is all areas occupied by or accessible from a gambling game, not otherwise obstructed by a wall, door, partition, barrier, or patron entrance. A patron entrance shall be identified by a sign visible to patrons approaching the gaming floor. The sign shall denote entrance to the gaming floor and specify that the gaming floor is not accessible to persons under the age of 21. A floor plan identifying the area shall be filed with the administrator for review and approval. Modification to a previously approved plan must be submitted for approval at least ten days prior to implementation.    5.4(18) State fire and building codes.      a.    Barges, as defined in 5.6(1)“c,” and other land-based gaming facilities and such facilities that undergo major renovation shall comply with the state building code created by Iowa Code chapter 103A, if there is no local building code in force in the local jurisdiction in which the facility is located. A licensee shall submit construction documents and plans to the state building code commissioner and receive approval prior to construction, if a facility is subject to the state building code.    b.    If there is no enforcement of fire safety requirements by a local fire department, a licensee shall also submit construction plans and documents to the state fire marshal and receive approval prior to construction. The fire marshal may cause a facility subject to this paragraph to be inspected for compliance with fire marshal rules prior to operation of the facility and shall notify the commission and the licensee of the results of any such inspection.    c.    If a proposed new or renovated facility is subject to both paragraphs “a” and “b,” a single submission of construction plans and documents to the building code commissioner, with a cover letter stating that review and approval are required with respect to both the state building code and rules of the fire marshal, is sufficient to meet both requirements. Facilities subject to both paragraphs “a” and “b” shall have received approval from both the fire marshal and the building code commissioner prior to construction.    5.4(19) Gambling setoff.  Each licensee shall adopt and implement policies and procedures designed to set off winnings of patrons who have a valid lien established under Iowa Code chapters 99D and 99F.    5.4(20) Shelf application for debt.      a.    The commission may grant approval of a shelf application for a period not to exceed three years.    b.    Licensees whose parent company has issued publicly traded debt or publicly traded securities may apply to the commission for a shelf approval of debt transactions if the parent company has:    (1)   A class of securities listed on the New York Stock Exchange, the American Stock Exchange or the National Association of Securities Dealers Automatic Quotation System (NASDAQ) or has stockholders’ equity in the amount of $15 million or more as reported in the parent company’s most recent report on Form 10-K or Form 10-Q filed with the Securities and Exchange Commission (SEC) immediately preceding application; and    (2)   Filed all reports required by the SEC.    c.    The application shall be in writing and shall contain:    (1)   Proof of qualification to make the application in accordance with the criteria of this subrule.    (2)   A statement of the amount of debt sought to be approved and the intended use of potential proceeds.    (3)   Duration sought for the shelf approval.    (4)   Financing rate sought during shelf approval.    (5)   Evidence of signature by authorized representative of the licensee under oath.    (6)   Other supplemental documentation requested by the commission or commission representative following the initial submission.    d.    Once an application is approved by the commission:    (1)   The licensee shall notify the commission representative of all debt transactions within ten days of consummation, including subsequent amendments and modifications of debt transactions, and provide executed copies of the documents evidencing the transactions as may be required.    (2)   The commission representative may rescind a shelf approval without prior written notice. The rescission shall be in writing and set forth the reasons for the rescission and shall remain in effect until lifted by the commission upon the satisfaction of any such terms and conditions as required by the commission.    5.4(21) Network security.      a.    The licensee shall biennially submit the results of an independent network security risk assessment to the administrator for review, subject to the following requirements:     (1)   The testing organization must be independent of the licensee and shall be qualified by the administrator.    (2)   The network security risk assessment shall be conducted no later than 90 days after the start of the licensee’s fiscal year in each year an assessment is required.    (3)   Results from the network security risk assessment shall be submitted to the administrator no later than 90 days after the assessment is conducted.    b.    At the discretion of the administrator, additional network security risk assessments may be required.

    ITEM 17.    Amend rule 491—6.1(99D,99F) as follows:

491—6.1(99D,99E,99F) Definitions.          "Applicant" means an individual applying for an occupational license.        "Beneficial interest" means any and all direct and indirect forms of ownership or control, voting power, or investment power held through any contract, lien, lease, partnership, stockholding, syndication, joint venture, understanding, relationship (including family relationship), present or reversionary right, title or interest, or otherwise.        "Board" means either the board of stewards or the gaming board, as appointed by the administrator, whichever is appropriate. The administrator may serve as a board of one.        "Commission" means the Iowa racing and gaming commission.        "Commission representative" means a gaming representative, steward, or any person designated by the commission or commission administrator.        "Conviction" means the act or process of judicially finding someone guilty of a crime; the state of a person’s having been proved guilty; the judgment that a person is guilty of a crime or criminal offense, which includes a guilty plea entered in conjunction with a deferred judgment, and a juvenile who has been adjudicated delinquent. The date of conviction shall be the date the sentence and judgment is entered.        "Deceptive practice" means any deception or misrepresentation made by the person with the knowledge that the deception or misrepresentation could result in some benefit to the person or some other person.        "Facility" means an entity licensed by the commission to conduct pari-mutuel wagering,or gamingor sports wagering operations in Iowa.        "Internet fantasy sports contest service provider" means a person, including a licensee under Iowa Code chapter 99D or 99F, who conducts an internet fantasy sports contest as authorized by Iowa Code chapter 99E.        "Jockey" means a person licensed to ride a horse in a race.        "Kennel/stable name " means any type of name other than the legal name or names used by an owner or lessee and registered with the commission.        "Licensee" means a person licensed by the commission to perform an occupation which the commission has identified as requiring a license for a person to work in the pari-mutuel, gambling structure, or excursion gambling boat, sports wagering or internet fantasy sports contest industry in Iowa.        "Occupation" means a license category listed on the commission’s occupational license application form.        "Owner" means a person or entity that holds any title, right or interest, whole or partial, in a racing animal.        "Rules" means the rules promulgated by the commission to regulate the racing and gaming industries, sports wagering, and internet fantasy sports contests.        "Sports wagering" means the acceptance of wagers on an authorized sporting event by any system of wagering as authorized by the commission. “Sports wagering” does not include placing a wager on the performance or nonperformance of any individual athlete participating in a single game or match of a collegiate sporting event in which a collegiate team from this state is a participant, or placing a wager on the performance of athletes in an individual international sporting event governed by the international olympic committee in which any participant in the international sporting event is under 18 years of age.        "Theft" includes, but is not limited to:
  1. The act of taking possession or control of either facility property or the property of another without the express authorization of the owner;
  2. The use, disposition, or destruction of property in a manner which is inconsistent with or contrary to the owner’s rights in such property;
  3. Misappropriation or misuse of property the person holds in trust for another; or
  4. Any act which constitutes theft as defined by Iowa Code chapter 714. No specific intent requirement is imposed by rule 491—6.5(99D,99E,99F) nor is it required that there be any showing that the licensee received personal gain from any act of theft.
        "Year" means a calendar year.

    ITEM 18.    Amend rule 491—6.2(99D,99F,252J) as follows:

491—6.2(99D,99E,99F,252J) Occupational licensing.      6.2(1)   Alllicensees for internet fantasy sports contests and all persons participating in any capacity at a racing or gaming facility, with the exception of certified law enforcement officers while they are working for the facility as uniformed officers, are required to be properly licensed by the commission.    a.    License applicants may be required to furnish to the commission a set of fingerprints and may be required to be refingerprinted or rephotographed periodically.    b.    License applicants must supply current photo identification and proof of their social security number and date of birth.    c.    License applicants must complete and sign the application form prescribed and published by the commission. An incomplete application shall not be processed. The application shall state the full name, social security number, residence, date of birth, and other personal identifying information of the applicant that the commission deems necessary. The application shall include, in part, whether the applicant has any of the following:    (1)   A record of conviction of a felony or misdemeanor, including a record involving the entry of a deferred judgment and adjudications of delinquency;    (2)   An addiction to alcohol or a controlled substance;    (3)   A history of mental illness or repeated acts of violence;    (4)   Military convictions;    (5)   Adjudication of delinquency; or    (6)   Overdue income taxes, fines, court-ordered legal obligations, or judgments.    d.    License applicants for designated positions of higher responsibility may be required to complete a division of criminal investigation (DCI) background form.    e.    A fee set by the commission shall be assessed to each license applicant. Once a license is issued, the fee cannot be refunded.    f.    License applicants must pay an additional fee set by the Federal Bureau of Investigation (FBI) and by the department of public safety (DCI and bureau of identification) to cover the cost associated with the search and classification of fingerprints.    g.    All racing and gaming commission fees for applications or license renewals must be paid by applicants or licensees before a license will be issued or renewed or, if the applicant is an employee of a facility, the commission fees will be directly billed to the facility.    h.    An applicant who knowingly makes a false statement on the application is guilty of an aggravated misdemeanor.    i.    Participation in racing and gaming, sports wagering, and internet fantasy sports contests in the state of Iowa is a privilege and not a right. The burden of proving qualifications to be issued any license is on the applicant at all times. An applicant must accept any risk of adverse public notice, embarrassment, criticism, or other action, as well as any financial loss that may result from action with respect to an application.    j.    All licenses are conditional until completion of a necessary background investigation including, but not limited to, fingerprint processing through the DCI and the FBI and review of records on file with national organizations, courts, law enforcement agencies, and the commission.    k.    Any licensee who allows another person use of the licensee’s license badge for the purpose of transferring any of the benefits conferred by the license may be fined, have the license suspended or revoked, or be subject to any combination of the above-mentioned sanctions. No license shall be transferable and no duplicate licenses shall be issued except upon submission of an application form and payment of the license fee.    l.    It shall be the affirmative responsibility and continuing duty of each applicant to provide all information, documentation, and assurances pertaining to qualifications required or requested by the commission or commission representatives and to cooperate with commission representatives in the performance of their duties. A refusal by any person to comply with a request for information from a commission representative shall be a basis for fine, suspension, denial, revocation, or disqualification.    m.    Non-U.S. citizens must supply documentation authorizing them to work in the United States or supply documentation demonstrating compliance with the North American Free Trade Agreement.    n.    Portions of all completed applications accepted by the commission are confidential. The following persons have the explicit right to review all information contained on the application: the applicant, all commission officials and employees, the track steward, and DCI agents or other law enforcement officers serving in their official capacity.    o.    A license may not be issued or held by an applicant who is unqualified, by experience or otherwise, to perform the duties required.    p.    A license may not be issued to applicants who have not previously been licensed in the following occupations except upon recommendation by the commission representative: trainers, assistant trainers, jockeys, apprentice jockeys, exercise persons, and other occupations the commission may designate. The commission representative may, for the purpose of determining a recommendation under this subrule, consult a representative of the facility, horsemen, or jockeys.    6.2(2)   All facility board membersand internet fantasy sports contest board members shall undergo a background investigation and be licensed immediately upon appointment.For the purposes of this chapter, the term “board members” shall also include managers of limited liability companies.    6.2(3)   Multiple license restrictions.    a.    A person may work outside the licensed occupation as long as the person is licensed in an equal or higher occupation.    b.    In horse racing only, the following restrictions apply:    (1)   A person licensed as a jockey or veterinarian may not be licensed in another capacity.    (2)   A person may not be licensed as an owner and a jockey agent.    (3)   No racing official may serve or act in another capacity at a race meeting at which that person is licensed as an official except if there is no conflict of interest or duties as determined by the commission representative.    6.2(4)   Application endorsements. The responsibility of licensing an employee rests with the employer. Therefore, a license may not be issued to any employee unless the application includes prior endorsement of the facility’s authorized representative. All facilities must submit a list of representatives authorized to sign applications. This list shall not exceed six names. This authorization list shall be sent to the commission licensing office associated with each facility.    6.2(5)   An applicant who has not held a license for the previous calendar year shall be considered a first-time applicant.    6.2(6)   Interim identification badge.    a.    All interim identification badges issued by a facility must be recorded in a logbook, which is available for inspection by commission or DCI representatives. The logbook must reflect the following information: date issued; user’s name and date of birth (verified by photo ID); occupation; badge number; issuer; time issued; and time returned. Badges shall only be issued on a daily basis and must be returned before the employee leaves facility premises. A badge shall be effective only until the commission licensing office’s next day of business, and may not be used to avoid obtaining a duplicate license.    b.    A badge shall only be issued if:    (1)   An employee is hired during a time that the commission licensing office is closed; or    (2)   An employee is not in possession of the employee’s occupational license.

    ITEM 19.    Amend rule 491—6.3(99D,99F), parenthetical implementation statute, as follows:

491—6.3(99D,99E,99F) Waiver of privilege.  

    ITEM 20.    Amend rule 491—6.4(99D,99F), parenthetical implementation statute, as follows:

491—6.4(99D,99E,99F) License acceptance.  

    ITEM 21.    Amend rule 491—6.5(99D,99F) as follows:

491—6.5(99D,99E,99F) Grounds for denial, suspension, or revocation of a license or issuance of a fine.  The commission or commission representative shall deny an applicant a license or, ifa license is already issued, a licensee shall be subject to probation, fine, suspension, revocation, or other disciplinary measures, if the applicant or licensee:    6.5(1)   Does not qualify under the following screening policy:    a.    Applicants must be at least 18 years of age to work in areas where gaming or wagering is conducted.    b.    Applicants must be at least 16 years of age to be eligible to be licensed to work for a trainer of racing animals.     c.    A license shall be denied if, within the last five years, an applicant has had:    (1)   A felony conviction;    (2)   A conviction for an offense involving theft or fraudulent practice in excess of $500;    (3)   A conviction for an offense involving the use of an alias in connection with fraud; or    (4)   A conviction for an offense involving ownership, operation, or an interest in any bookmaking or other illegal enterprise or if the applicant is or has been connected with or associated with any illegal enterprise.If the conviction occurred more than five years before application, a license shall not be issued unless the commission representative determines that sufficient evidence of rehabilitation exists.    d.    Unless sufficient evidence of rehabilitation exists, a license shall be denied if any applicant has had:    (1)   A conviction of a serious or aggravated misdemeanor or the equivalent; or    (2)   Multiple convictions of simple misdemeanors.    e.    A license shall be temporarily denied or suspended until the outcome of any pending charges is known if conviction would disqualify the applicant and the commission representative determines that the applicant poses an immediate danger to the public health, safety, or welfare of the patrons, participants, or animals associated with a facility licensed under Iowa Code chapter 99D, 99E or 99F.    f.    A license shall be denied if the applicant has an addiction to alcohol or a controlled substance without sufficient evidence of rehabilitation, has a history of mental illness without demonstrating successful treatment by a licensed medical physician, or has a history of repeated acts of violence without sufficient evidence of rehabilitation.     g.    A license may be temporarily denied or a probationary license may be issued until outstanding, overdue court-ordered obligations are satisfied. These obligations include, but are not limited to, criminal or civil fines, state or federal taxes, or conditions imposed upon the applicant by a court of law that the applicant has failed to meet in a timely manner.     h.    A license may be denied if an applicant is ineligible to participate in gaming in another state and it would not be in the best interest of racing or gaming to license the applicant in Iowa. A license shall be denied if an applicant is ineligible to participate in racing in another state whose regulatory agency is recognized by and reciprocates in the actions of this state.     i.    A license shall be denied and not reinstated if an applicant has been denied patron privileges by order of the commission.    j.    A license shall be denied if the applicant falsifies the application form and would be ineligible for licensure under one or more of the provisions set forth in paragraphs “a” through “i” above. In other cases of falsification, a license may be issued and the applicant shall be subject to a suspension, fine, or both.    k.    A license shall be denied if an applicant is not of good repute or moral character. Any evidence concerning a licensee’s current or past conduct, dealings, habits, or associations relevant to that individual’s character or reputation may be considered. The commission representative shall decide what weight and effect evidence shall have in the determination of whether there is substantial evidence that the individual is not of good reputation or character. Applicants who hold positions of higher responsibility may be held to a more stringent standard of conduct and reputation than others with a less significant interest or role.    l.    A license shall be denied if the applicant is a board member of an internet fantasy sports contest and is under the age of 21.    6.5(2)   Has not demonstrated financial responsibility or has failed to meet any monetary obligation in the following circumstances connected with racing,or gaming, sports wagering, or an internet fantasy sports contest:    a.    Issuance or passing of bad checks.No person shall write, issue, make, or present any check in payment for any license fee, nomination fee, entry fee, starting fee, or purse payment when that person knows or should reasonably know that the check will be refused for payment by the bank upon which it is written, or that the account upon which it is written does not contain sufficient funds for payment of the check, or that the check is written on a closed or nonexistent account.    b.    Judgments.Whenever any person licensed to engage in racing suffers a final judgment entered against that person in any court of competent jurisdiction within the United States, when that judgment is based wholly, or in part, upon an indebtedness incurred by that person for supplies, equipment, or services furnished in connection with racing, the commission representatives shall schedule a hearing at which the licensee shall be required to show cause as to why the license should not be suspended.    c.    Timely payment.Should an owner fail to make timely payment of any jockey fee, nomination fee, entry fee, starting fee, or any other reasonable charge normally payable to the facility, the facility shall notify the commission representatives who shall in turn give notice to the owner that a hearing will be held where the owner will be required to show cause why the license should not be suspended for failure to make the required payments.    6.5(3)   Has been involved in any fraudulent or corrupt practices, including, but not limited to:    a.    Offering, promising, giving, accepting, or soliciting a bribe in any form, directly or indirectly, to or by a person licensed by the commission to violate these rules or the laws of the state related to racing,or gaming, sports wagering or internet fantasy sports contests.    b.    Failing to report any bribe or solicitation as in 6.5(3)“a” above.    c.    Soliciting by any licensee, except the facility,licensed advance deposit sports wagering operator or licensed internet fantasy sports contest service provider of bets by the public.    d.    Violation of any law of the state or rule of the commission, or aiding or abetting any person in the violation of any such law or rule.    e.    Theft or deceptive practice of any nature on the premises of a facilityor in the performance of duties associated with advance deposit sports wagering or internet fantasy sports contests.    f.    Giving under oath any false statement or refusing to testify, after proper notice, to the commission representative about any matter regulated by the commission, except in the exercise of a lawful legal privilege.    g.    Failing to comply with any request for information or any order or ruling issued by the commission representative pertaining to a racing,or gaming, sports wagering or internet fantasy sports contest matter.    h.    Disorderly or offensive conduct; use of profane, abusive, or insulting language to, or interference with, commission representatives or racing or gaming officials while they are discharging their duties.    i.    Conduct in Iowa or elsewherethat has been dishonest, undesirable,or detrimental to, or reflects negatively on, the integrity or best interests of racing,and gaming, sports wagering or internet fantasy sports contests.    j.    Illegal sale, possession, receipt, or use of a controlled substance or drug paraphernalia; intoxication; use of profanity; fighting; making threatening or intimidating statements; engaging in threatening or intimidating behavior; or any conduct of a disorderly nature on facility premises.    k.    Discontinuance of or ineligibility for activity for which the license was issued.    l.    Possessing a firearm on facility property without written permission from the commission representative.    m.    Improperly influencing or attempting to improperly influence the results of a race,or a gambling game,a sporting event that is subject to sports wagering, or an internet fantasy sports contest, singularly or in combination with any person.    n.    Failing to report any attempt to improperly influence the result of a race,or a gambling game, a sporting event that is subject to sports wagering, or an internet fantasy sports contest as in 6.5(3)“m” above.    o.    Having had two rulings related to attempts to affect a race result or odds (rulings for electrical devices, serious positives, for example) in a lifetime or one ruling within the last three years. A license may be issued if one ruling has occurred outside of three years if sufficient evidence of rehabilitation exists. A license may be denied if a lengthy record of rulings from other jurisdictions exists.    p.    Possessing any equipment for hypodermic injection, any substance for hypodermic administration, or any container designed to hold an injectable substance (narcotics, medications, drugs, or substances which could be used to alter the speed of racing animals) by anyone other than a veterinarian licensed by the commission. Notwithstanding the provisions of this subrule, any person may have possession of any chemical or biological substance for the person’s own treatment within a restricted area, provided that, if the chemical substance is prohibited from being dispensed without a prescription by any federal law or law of this state, the person is in possession of documentary evidence that a valid prescription has been issued to the person. Notwithstanding the provisions of this subrule, any person may have in possession within any restricted area any hypodermic syringe or needle for the purpose of self-administering to the person a chemical or biological substance, provided that the person has notified the commission representatives of the possession of the device, the size of the device, and the chemical substance to be administered and has obtained written permission for possession and use from the commission representative. A restricted area is a designated area for sample collection, paddock, racetrack, or any other area where officials carry out the duties of their positions.    q.    Subjecting an animal to cruel and inhumane treatment by failing to supply it with adequate food, water, medical treatment, exercise, bedding, sanitation, and shelter; or by neglect or intentional act causing an animal to suffer unnecessary pain.    r.    Offering or receiving money or other benefit for withdrawing a racing animal from a race.    s.    Making a wager for a jockey by any person other than the owner or trainer of the horse ridden by the jockey.    t.    Making a wager for a jockey on a horse by an owner or trainer other than that ridden by the jockey. This shall not be construed to include bets on another horse in combination with the horse ridden by the jockey in multiple wagering bets.    u.    Offering or giving a jockey money or other benefit concerning a race, except by the owner or trainer of the horse to be ridden.    v.    Entering or starting a racing animal known or believed to be ineligible or disqualified.    w.    Possessing any device designed to increase or decrease the speed of a racing animal during a race other than an ordinary riding whip without written permission from the commission representative.    x.    Communicating with or contacting a person who is voluntarily excluded pursuant to Iowa Code chapter 99D or 99F for gaming-relatedgaming-, wagering-, or internet fantasy sports contest-related activities.

    ITEM 22.    Amend rule 491—6.6(99D,99F), parenthetical implementation statute, as follows:

491—6.6(99D,99E,99F) Applications for license after denial, revocation, or suspension.  

    ITEM 23.    Amend rule 491—6.7(99D,99F), parenthetical implementation statute, as follows:

491—6.7(99D,99E,99F) Probationary period placed on a license.  

    ITEM 24.    Amend rule 491—6.8(99D,99F), parenthetical implementation statute, as follows:

491—6.8(99D,99E,99F) Duration of license.  

    ITEM 25.    Amend rule 491—6.9(99D,99F), parenthetical implementation statute, as follows:

491—6.9(99D,99E,99F) Licensed employees moving from one location to another.  

    ITEM 26.    Amend rule 491—6.10(99D,99F) as follows:

491—6.10(99D,99E,99F) Required report of discharge of licensed employee.  Upon discharge of any licensed employee by any licensed employer for violation of rules or laws within the jurisdiction of the commission, the employer must report that fact in writing, within 72 hours, to the local commission office, including the name and occupation of the discharged licensee.In the case of a board member of an internet fantasy sports contest service provider, the employer must report that fact in writing, within 72 hours, to the Des Moines commission office, including the name and occupation of the discharged licensee.

    ITEM 27.    Amend 491—Chapter 8, title, as follows:PARI-MUTUELWAGERING, SIMULCASTING AND ADVANCE DEPOSIT WAGERING

    ITEM 28.    Amend rule 491—8.1(99D), definitions of “Account,” “Advance deposit wagering center” and “Advance deposit wagering operator,” as follows:        "Account" means an account approved by the commission forpari-mutuel advance deposit wagering with a complete record of credits, wagers and debits established by a licensee account holder and managed by a licensee or ADWO.        "Advance deposit wagering center" means an actual location, the equipment, and the staff of a licensee, ADWO, or both involved in the management, servicing and operation ofthe pari-mutuel advance deposit wagering for the licensee.        "Advance deposit wagering operator" "ADWO" means an advance deposit wagering operator licensed by the commission who has entered into an agreement with the licensee of the horse racetrack in Polk County and the Iowa Horsemen’s Benevolent and Protective Association to providepari-mutuel advance deposit wagering.

    ITEM 29.    Amend paragraph 8.6(2)"a" as follows:    a.    A person must have an established account in order to place advance deposit wagers. An account may be established in person at the licensee’s facility or with the ADWO by mail or electronic means. For establishing an account, the application must be signed or otherwise authorized in a manner acceptable to the commission and shall include the applicant’s full legal name, principal residence address, telephone number, and date of birth and any other information required by the commission.The licensee and ADWO shall have a process to verify that the player is not on the statewide self-exclusion list set forth in Iowa Code section 99F.4(22) prior to establishing an account. The licensee and ADWO shall review and deactivate accounts of newly enrolled participants of the statewide self-exclusion program and comply with all other requirements set forth by the commission and in Iowa Code section 99F.4(22).

    ITEM 30.    Adopt the following new 491—Chapter 13: CHAPTER 13SPORTS WAGERING

491—13.1(99F) Definitions.  As used in these rules, unless the context otherwise requires, the following definitions apply:         "Administrator" means the administrator of the racing and gaming commission or the administrator’s designee.        "Advance deposit sports wagering" means a method of sports wagering in which an eligible individual may, in an account established with a licensee under Iowa Code section 99F.7A, deposit moneys into the account and use the account balance to pay for sports wagering. Prior to January 1, 2021, an account must be established by an eligible individual in person with a licensee.         "Advance deposit sports wagering operator" means an advance deposit sports wagering operator licensed by the commission who has entered into an agreement with a licensee under Iowa Code section 99F.7A to provide advance deposit sports wagering.         "Authorized sporting event" means a professional sporting event, collegiate sporting event, international sporting event, or professional motor race event. “Authorized sporting event” does not include a race as defined in Iowa Code section 99D.2, a fantasy sports contest as defined in Iowa Code section 99E.1, minor league sporting event, or any athletic event or competition of an interscholastic sport as defined in Iowa Code section 9A.102.         "Collegiate sporting event" means an athletic event or competition of an intercollegiate sport as defined in Iowa Code section 9A.102.         "Commission" means the racing and gaming commission created under Iowa Code section 99D.5.        "Designated sports wagering area" means an area, as designated by a licensee and approved by the commission, in which sports wagering is conducted.        "Eligible individual" means an individual who is at least 21 years of age or older who is located within this state.        "Facility" means an entity licensed by the commission to conduct pari-mutuel wagering, gaming or sports wagering operations in Iowa.        "International sporting event" means an international team or individual sporting event governed by an international sports federation or sports governing body, including but not limited to sporting events governed by the international olympic committee and the international federation of association football.         "Licensee" means any person licensed under Iowa Code section 99F.7 or 99F.7A.        "Minor league sporting event" means a sporting event conducted by a sports league which is not regarded as the premier league in the sport as determined by the commission.         "Professional sporting event" means an event, excluding a minor league sporting event, at which two or more persons participate in sports or athletic events and receive compensation in excess of actual expenses for their participation in such event.        "Sports wagering" means the acceptance of wagers on an authorized sporting event by any system of wagering as authorized by the commission. “Sports wagering” does not include placing a wager on the performance or nonperformance of any individual athlete participating in a single game or match of a collegiate sporting event in which a collegiate team from this state is a participant, or placing a wager on the performance of athletes in an individual international sporting event governed by the international olympic committee in which any participant in the international sporting event is under 18 years of age.         "Sports wagering net receipts" means the gross receipts less winnings paid to wagerers on sports wagering.

491—13.2(99F) Conduct of all sports wagering.      13.2(1) Commission policy.  It is the policy of the commission to require that all industry participants conduct sports wagering in a manner suitable to protect the public health, safety, morals, good order, and general welfare of the state. Responsibility for selecting, implementing, and maintaining suitable methods of operation rests with the facility, vendor, and advance deposit sports wagering operator. Willful or persistent use or toleration of methods of operation deemed unsuitable in the sole discretion of the commission will constitute grounds for disciplinary action, up to and including revocation.    13.2(2) Activities prohibited.  A facility, vendor, or advance deposit sports wagering operator is expressly prohibited from the following activities:    a.    Failing to conduct advertising and public relations activities in accordance with decency, dignity, good taste, and honesty.    b.    Failing to comply with or make provision for compliance with all federal, state, and local laws and rules pertaining to the operation of a facility or advance deposit sports wagering operation including, but not limited to, payment of license fees, withholding payroll taxes, and violations of alcoholic beverage laws or regulations.    c.    Permitting cheating, failing to discover cheating that should have been discovered with reasonable inquiry, or failing to take action to prevent cheating.    d.    Failing to conduct sports wagering operations in accordance with proper standards of custom, decorum, and decency; or permitting any type of conduct that reflects negatively on the state or commission or acts as a detriment to the sports wagering industry.    e.    Performing any type of sports wagering activity, at any time, that is contrary to the representation made to the commission, commission representatives, or the public.    f.    Denying a commissioner or commission representative, upon proper and lawful demand, information, documents, or access to inspect any portion of the sports wagering operation.    13.2(3) Wagers.  Wagers may only be made by persons 21 years of age or older and on activities authorized pursuant to Iowa Code chapter 99F which are approved by the commission.    13.2(4) Public notice.  The public shall have access to the sports wagering rules, available wagers, odds or payouts, the payout period, and the source of the information used to determine the outcome of a sports wager. All licensees and advance deposit sports wagering operators shall require participants to follow the rules of play. The sports wagering rules shall be:    a.    Displayed in the licensee’s sports wagering area.    b.    Posted on the internet site or mobile application used to conduct advance deposit sports wagering.    c.    Included in any terms and conditions disclosure statements of the advance deposit sports wagering system.    13.2(5) Bond.  A licensee shall post a bond or irrevocable letter of credit, at an amount determined by the commission, to the state of Iowa to guarantee that the licensee and any vendor or advance deposit sports wagering operator licensed in conjunction with the licensee faithfully makes the payments, keeps its books and records and makes reports, and conducts its gambling games and sports wagering in conformity with Iowa Code chapter 99F and the rules adopted by the commission.    13.2(6) Reserve.  A reserve in the form of cash or cash equivalents segregated from operational funds, an irrevocable letter of credit, payment processor reserves and receivables, a bond, or a combination thereof, shall be maintained in the amount necessary to cover the outstanding sports wagering liability. An accounting of this reserve shall be made available for inspection to the commission upon request. The method of reserve shall be submitted to and approved by the administrator prior to implementation.    13.2(7) Internal controls.  Licensees and advance deposit sports wagering operators shall submit a description of internal controls to the administrator. The submission shall be made at least 30 days before sports operations are to commence unless otherwise approved by the administrator. All internal controls must be approved by the administrator prior to commencement of sports operations. The operator shall submit to the administrator any changes to the internal controls previously approved at least 15 days before the changes are to become effective unless otherwise directed by the administrator. It shall be the affirmative responsibility and continuing duty of each licensee and advance deposit sports wagering operator and their employees to follow and comply with all internal controls. The submission shall include controls and reasonable methods that provide for the following:    a.    To prohibit wagering by coaches, athletic trainers, officials, players, or other individuals who participate in an authorized sporting event in which wagers may be accepted.    b.    To prohibit wagering by persons who are employed in a position with direct involvement with coaches, players, athletic trainers, officials, athletes or participants in an authorized sporting event in which wagers may be accepted.    c.    To promptly report to the commission any criminal or disciplinary proceedings commenced against the licensee or its employees.    d.    To promptly report to the commission any abnormal wagering activity or patterns that may indicate a concern about the integrity of an authorized sporting event or events, and any other conduct with the potential to corrupt a wagering outcome of an authorized sporting event for purposes of financial gain, including but not limited to match fixing, and suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place wagers, or use of false identification. Integrity-monitoring procedures shall also provide for the sharing of information with other licensees, other governing authorities, and accredited sports governing entities by participating in an integrity-monitoring association or group or by another method as approved by the administrator.     e.    To report within 72 hours any incident where an employee or customer is detected violating a provision of Iowa Code chapter 99F, a commission rule or order, or internal controls. In addition to the written report, the licensee or advance deposit sports wagering operator shall provide immediate notification to the commission if an incident involves employee theft, criminal activity, Iowa Code chapter 99F violations or sports wagering receipts.    f.    The segregation of incompatible functions so that no employee is in a position to perpetrate and conceal errors or irregularities in the normal course of the employee’s duties.    g.    User access controls for all sensitive and secure, physical and virtual, areas and systems within a sports wagering operation.    h.    Treatment of problem gambling by:    (1)   Identifying problem gamblers.    (2)   Complying with the process established by the commission pursuant to Iowa Code section 99F.4(22) and 491—subrule 5.4(12).    (3)   Cooperating with the Iowa gambling treatment program in creating and establishing controls.    (4)   Making available to customers, patrons, and bettors a substantial number of the Iowa gambling treatment program advertisements and printed materials.    i.    Setoff winnings of customers who have a valid lien established under Iowa Code chapter 99F.     13.2(8) Revenue reporting.  Reports generated from the sports wagering system shall be made available as determined by the commission. The reporting system shall be capable of issuing reports by wagering day, wagering month, and wagering year. Wagering data shall not be purged unless approved by the commission. The reporting system shall provide for a mechanism to export the data for the purposes of data analysis and auditing or verification. The reporting system shall be able to provide, at a minimum, the following sports wagering information:    a.    The date and time each event started and ended.    b.    Total amount of wagers collected.    c.    Total amount of winnings paid to players.    d.    Total amount of wagers canceled, voided, and expired.    e.    Commission or fees collected.    f.    Total value of promotional play or free play used to purchase or execute a sports wager.     g.    Event status.    h.    Total amount held by the operator for the player accounts.    i.    Total amount of wagers placed on future events.    j.    Total amount of winnings owed but unpaid by the operator on winning wagers.    13.2(9) Unclaimed winnings and abandoned accounts.  Unclaimed winnings and abandoned accounts are subject to the following requirements:    a.    Unclaimed winnings of over 90 days at the close of a licensee’s fiscal year shall be disallowed as a deduction from gross receipts for the calculation of sports wagering net receipts for the sports wagering tax.     b.    Abandoned player accounts under this rule are subject to Iowa Code chapter 556.    c.    Player accounts are considered abandoned if no activity by the account holder has occurred for three years. Player activity includes making a wager, making an account deposit, or withdrawing funds.    d.    No licensee or advance deposit sports wagering operator shall charge an administration fee or maintenance fee for any inactive player account derived from state of Iowa residents at any time for any reason.

491—13.3(99F) Approval of sports wagers.      13.3(1) Approval.  Prior to offering a sports wager, a facility or advance deposit sports wagering operator shall request that the administrator investigate and approve the sports wager for compliance with commission rules and any other standards as required by the commission. The administrator may require the facility or advance deposit sports wagering operator, at the facility’s or operator’s own expense, to provide additional information as deemed necessary to make a determination. Prior to approval, the administrator may require a trial period of any sports wager offering. Once a sports wager is approved by the administrator, unless it is subsequently disapproved for any reason deemed appropriate by the administrator, the sports wager is available for all operators under the conditions approved and subject to subrule 13.3(2).    13.3(2) Sports wager submissions.  Prior to conducting a sports wager approved pursuant to subrule 13.3(1), a licensee or advance deposit sports wagering operator shall submit proposals for the wager, including but not limited to wagering rules, payout information, source of the information used to determine the outcome of the sports wager, and any restrictive features of the wager. The sports wager submission, or requests for modification to an approved wager, shall be submitted in writing and approved by the administrator prior to implementation.    13.3(3) Sports promotional contests, tournaments, or promotional activities.  Sports promotional contests, tournaments, or promotional activities may be permitted by the licensee, vendor, or advance deposit sports wagering operator providing the following:    a.    Rules shall be made available to participants for review prior to registering. Rules shall include, at a minimum: all conditions registered players must meet to qualify to enter or advance through the event, available prizes or awards, fees, and distribution of prizes or awards based on specific outcomes.    b.    Rules are followed. Changes to rules shall not be made after participants have registered.    c.    Results shall be made available for the registered players to review at the same location at which or in the same manner in which players registered. Results shall include, at a minimum: name of the event, date of the event, total number of entries, amount of entry fees, total prize pool, and amount paid for each winning category.    d.    Fees collected, less cash prizes paid, are subject to the wagering taxes pursuant to Iowa Code section 99F.11(4). In determining sports wagering net receipts, to the extent that cash prizes paid out exceed fees collected, the licensee or advance deposit sports wagering operator shall be deemed to have paid the fees for the participants.    e.    There is compliance with all other federal, state, and local laws and rules outside of the commission’s jurisdiction.

491—13.4(99F) Designated sports wagering area.  A floor plan identifying the designated sports wagering area, including the location of any wagering kiosks, shall be filed with the administrator for review and approval. Modification to a previously approved plan must be submitted for approval at least ten days prior to implementation. A sign shall denote that the area is not accessible to persons under the age of 21. Exceptions to this rule must be approved in writing by the administrator. The sports wagering area is subject to compliance with 491—subrule 5.4(7).

491—13.5(99F) Advance deposit sports wagering.      13.5(1) Authorization to conduct advance deposit sports wagering.  A licensee or advance deposit sports wagering operator shall receive specific authorization from the commission to conduct advance deposit sports wagering prior to conducting advance deposit sports wagering. The granting of an advance deposit sports wagering license or approval of any agreements between a licensee and an advance deposit sports wagering operator to conduct advance deposit sports wagering does not constitute authorization. Any entity authorized to conduct advance deposit sports wagering is expected to comply with all requirements of this chapter, except for rule 491—13.4(99F), and all other applicable federal, state, local, and commission requirements.    13.5(2) Account registration.  A person must have an established account in order to place advance deposit sports wagers. Prior to January 1, 2021, an account shall be established at the facility as required by Iowa Code section 99F.9(3A) with a process approved by the administrator. To establish an account, an application for an account shall be signed or otherwise authorized in a manner approved by the administrator and shall include the applicant’s full legal name, principal residential address, date of birth, and any other information required by the administrator. The account registration process shall also include:    a.    Age verification to prevent persons under the legal age for sports wagering from establishing an account.    b.    Player verification of legal name, physical address, and age to correctly identify account holders.    c.    Verification that the player is not on the statewide self-exclusion list set forth in Iowa Code section 99F.4(22) prior to establishing an account.    d.    Availability and acceptance of a set of terms and conditions that is also readily accessible to the player before and after registration and noticed when updated. Notices shall include, at a minimum, the following:    (1)   Explanation of rules in which any unrecoverable malfunctions of hardware/software are addressed including, but not limited to, if the unrecoverable malfunction, wagering event cancellation, or other catastrophic malfunction results in the voiding of any wagers.    (2)   Procedures to deal with interruptions caused by the suspension of data flow from the network server during an event.    (3)   Specifications advising players to keep their account credentials secure.    (4)   Statement that no underage individuals are permitted to participate in wagering.    (5)   Statement that only players legally permitted by their respective jurisdictions can participate in wagering.    (6)   Explanation of conditions under which an account is declared inactive and actions undertaken on the account once this declaration is made.    e.    Availability and acceptance of a privacy policy that is also readily accessible to the player before and after registration and noticed when updated and that includes, at a minimum, the following:    (1)   Statement of information that is collected, the purpose for information collection, and the conditions under which information may be disclosed.    (2)   Statement that any information obtained in respect to player registration or account establishment must be done in compliance with the privacy policy.    (3)   Requirement that any information about player accounts which is not subject to disclosure pursuant to the privacy policy must be kept confidential, except where the release of that information is required by law.    (4)   Requirement that all player information must be securely erased from hard disks, magnetic tapes, solid state memory, and other devices before the device is properly disposed of by the licensee. If erasure is not possible, the storage device must be destroyed.    13.5(3) Operation of an account.  The advance deposit sports wagering operator or a licensee shall submit controls, approved by the commission, that include the following for operating an account:    a.    Specific procedures and technology partners to fulfill the requirements set forth in subrule 13.5(2).    b.    Location detection procedures to reasonably detect and dynamically monitor the location of a player attempting to place any wager. A player outside the permitted boundary shall be rejected, and the player shall be notified. The confidence radius shall be entirely located within the permitted boundary.    c.    Specific controls set forth in subrule 13.2(7).    d.    Limitation of one active account, per individually branded website, at a time unless otherwise authorized by the commission.    e.    Authentication for log in through a username and password or other secure alternative means as authorized by the commission. Processes for retrieving lost usernames and passwords shall be available, secure, and clearly disclosed to the player. Players shall be allowed to change their passwords.    f.    Immediate notification to the player when changes are made to any account used for financial transactions or to registration information or when financial transactions are made unless other notification preferences are established by the player.    g.    Process to immediately notify a player and lock an account in the event that suspicious activity is detected. A multifactor authentication process must be employed for the account to be unlocked.    h.    Process to easily and prominently impose limitations or notifications for wagering parameters including, but not limited to, deposits and wagers. Upon receipt, any self-imposed limitations must be employed correctly and immediately as indicated to the player. No changes can be made reducing the severity of the self-imposed limitations for at least 24 hours.    i.    Process to easily and prominently self-exclude from wagering for a specified period of time or indefinitely and easily and obviously direct participants, via a link, to exclude themselves pursuant to Iowa Code section 99F.4(22). Upon receipt, any self-exclusion limitations must be employed correctly and immediately as indicated to the player. No changes can be made to reduce the severity of the self-exclusion limitations for at least 24 hours. In the event of indefinite self-exclusion, the advance deposit sports wagering operator or licensee must ensure that the players are paid in full for their account balance within a reasonable time provided that the advance deposit sports wagering operator or licensee acknowledges that the funds have cleared. This control does not supersede the requirements set forth in Iowa Code section 99F.4(22).    j.    Process to review and deactivate accounts of newly enrolled participants of the statewide self-exclusion program set forth in Iowa Code section 99F.4(22). The operator must ensure that players are paid in full for their account balance within a reasonable time provided that the operator acknowledges that the funds have cleared.    k.    Provide for an easy and obvious method for a player to make a complaint and to enable the player to notify the commission if such complaint has not been or cannot be addressed by the advance deposit sports wagering operator or licensee.    13.5(4) Account funds.  The following requirements apply to the maintenance of funds associated with a player account:    a.    Positive player identification, including any PIN entry or other approved secure methods, must be completed before the withdrawal of any moneys held by the advance deposit sports wagering operator or licensee can be made.    b.    Payments from an account are to be paid directly to an account with a financial institution in the name of the player or made payable to the player and forwarded to the player’s address or through another method that is not prohibited by state or federal law.    c.    An advance deposit sports wagering operator or licensee must have in place security or authorization procedures to ensure that only authorized adjustments can be made to player accounts and that changes are auditable.    d.    It shall not be possible to transfer funds between two player accounts.    e.    An advance deposit sports wagering operator or licensee shall provide a transaction log or account statement history to players upon request. Information provided shall include sufficient information to allow players to reconcile the statement or log against their own financial records.    f.    Requests for withdrawals shall not be unreasonably withheld and shall be completed in a timely manner.    13.5(5) Annual audit.  An audit of the advance deposit sports wagering operations for the advance deposit sports wagering operator or licensee or parent company of the advance deposit sports wagering operator or licensee shall be conducted by certified public accountants authorized to practice in the state of Iowa and provided to the commission within 90 days of the licensee’s fiscal year and meet the following conditions:    a.    Inclusion of an internal control letter, audited balance sheet, and audited profit-and-loss statement including a breakdown of expenditures and subsidiaries of advance deposit sports wagering activities.    b.    Inclusion of a supplement schedule indicating financial activities on a calendar-year basis if the advance deposit sports wagering operator’s or licensee’s fiscal year does not correspond to the calendar year.    c.    Report of any material errors or irregularities that may be discovered during the audit.    d.    Availability, upon request, of an engagement letter for the audit between the advance deposit sports wagering operator or licensee or parent company of the advance deposit sports wagering operator or licensee and the auditing firm.

491—13.6(99F) Testing.      13.6(1) Initial testing.  All equipment and systems integral to the conduct of sports wagering and advance deposit sports wagering shall be tested and certified for compliance with commission rules and the standards required by a commission-designated independent testing laboratory. Certification and commission approval must be received prior to the use of any equipment or system to conduct sports wagering. The commission may designate more than one independent testing laboratory.    13.6(2) Change control.  The licensees and advance deposit sports wagering operators shall submit change control processes that detail evaluation procedures for all updates and changes to equipment and systems to the administrator for approval. These processes shall include details for identifying criticality of updates and determining of submission of updates to an independent testing laboratory for review and certification.    13.6(3) Annual testing.      a.    A system integrity and security risk assessment shall be performed annually on the sports wagering and advance deposit sports wagering system.     (1)   The testing organization must be independent of the licensee and shall be qualified by the administrator.     (2)   The system integrity and security risk assessment shall be conducted no later than 90 days after the start of the licensee’s fiscal year.    (3)   Results from the risk assessment shall be submitted to the administrator no later than 30 days after the assessment is conducted.    b.    At the discretion of the administrator, additional assessments or specific testing criteria may be required.

491—13.7(99F) Licensing.      13.7(1) Application and payment of fee.  The commission shall, upon payment of an initial license fee of $45,000 and submission of an application consistent with the requirements of Iowa Code section 99F.6, issue a license to conduct sports wagering to a facility.    13.7(2) Application procedure for a facility.  Application for a license for a facility to conduct sports wagering shall be made to the commission. In addition to the application, the following must be completed and presented when the application is filed:    a.    Name of the entity to be licensed by the commission to conduct sports wagering operations in Iowa.    b.    Disclosure of agreements with entities to manage or operate sports wagering with or on behalf of the facility.     c.    Disclosure of operating agreements for up to two individually branded internet sites to conduct advance deposit wagering for the facility.     d.    Compliance with Iowa Code section 99F.6(4)“a”(2) and (3) requirements for qualified sponsoring organizations or horse racing purses.    e.    A bond or irrevocable letter of credit on behalf of the facility in an amount to be determined by the commission.    f.    A bank or cashier’s check made payable to Iowa Racing and Gaming Commission for $45,000 for an initial license or $10,000 for a renewal license.    13.7(3) Application procedure for an advance deposit sports wagering operator.  Application for a license for an advance deposit sports wagering operator with an agreement with a facility shall be made to the commission for approval by the administrator. In addition to the application, the following must be completed and presented when the application is filed:    a.    Disclosure of ownership interest, directors, or officers of applicant.    (1)   An applicant or licensee shall notify the administrator of the identity of each director, corporate officer, owner, partner, joint venture participant, trustee, or any other person who has any beneficial interest of 5 percent or more, direct or indirect, in the business entity. For any of the above, as required by the administrator, the applicant or licensee shall submit background information on forms supplied by the division of criminal investigation and any other information the administrator may require.For purposes of this rule, the term “beneficial interest” includes all direct and indirect forms of ownership or control, voting power, or investment power held through any contract, lien, lease, partnership, stockholding, syndication, joint venture, understanding, relationship (including family relationship), present or reversionary right, title or interest, or otherwise.    (2)   For ownership interests of less than 5 percent, the administrator may request a list of these interests. The list shall include names, percentages owned, addresses, social security numbers, and dates of birth. The administrator may request the same information required of those individuals in subparagraph 13.7(3)“a”(1) above.    b.    Investigative fees.    (1)   Advance payment. The department of public safety may request payment of the investigative fee in advance as a condition to beginning investigation.    (2)   Payment required. The administrator may withhold final action with respect to any application until all investigative fees have been paid in full.    c.    A copy of each of the following:    (1)   List of employees of the aforementioned who may have contact with persons within the state of Iowa.    (2)   Agreement with facility to operate or manage the advance deposit sports wagering operation.    d.    Any and all changes in the applicant’s legal structure, directors, officers, or the respective ownership interests must be promptly filed with the administrator.    e.    The administrator may deny, suspend, or revoke the license of an applicant or licensee in which a director, corporate officer, or holder of a beneficial interest includes or involves any person or entity which would be, or is, ineligible in any respect, such as through want of character, moral fitness, financial responsibility, professional qualifications, or due to failure to meet other criteria employed by the administrator, to participate in gaming regardless of the percentage of ownership interest involved. The administrator may order the ineligible person or entity to terminate all relationships with the licensee or applicant, including divestiture of any ownership interest or beneficial interest at acquisition cost.    f.    Disclosure of the full nature and extent of all beneficial interests may be requested by the administrator and shall include the names of individuals and entities, the nature of their relationships, and the exact nature of their beneficial interest.    g.    Public disclosure is made for the benefit of the public, and documents pertaining to the ownership filed with the administrator shall be available for public inspection in accordance with 491—Chapter 3.    13.7(4) Supplementary information.  Each applicant shall promptly furnish the administrator with all additional information pertaining to the application or the applicant which the administrator may require. Failure to supply the requested information within five days after the request has been received by the applicant shall constitute grounds for delaying consideration of the application.    13.7(5) Temporary license certificates.      a.    A temporary license certificate may be issued at the discretion of the administrator.    b.    Any temporary license certificate issued at the discretion of the administrator shall be valid for a maximum of 120 calendar days from the date of issue. Failure to obtain a permanent license within the designated time may result in revocation of license eligibility, fine, or suspension.    13.7(6) Withdrawal of application.   A written notice of withdrawal of application may be filed by an applicant at any time prior to final action. No application shall be permitted to be withdrawn unless the administrator determines the withdrawal to be in the public interest. No fee or other payment relating to any application shall become refundable by reason of withdrawal of the application.    13.7(7) Record keeping.      a.    Record storage required. Licensees and advance deposit sports wagering operators shall maintain adequate records of business operations, which shall be made available to the administrator upon request. These records shall include:    (1)   All correspondence with the administrator and other governmental agencies on the local, state, and federal level.    (2)   All correspondence between the licensee and advance deposit sports wagering operators and any of their customers who are applicants or licensees under Iowa Code chapter 99F.    (3)   A personnel file on each employee of the licensee and advance deposit sports wagering operator, including sales representatives.    (4)   Financial records of all transactions with facilities and all other licensees and advance deposit sports wagering operators under these rules.    b.    Record retention. Records other than those listed in subrule 13.2(8) shall be retained as required by 491—subrule 5.4(14).    13.7(8) Violation of laws or regulations.  Violation of any provision of any laws of the state or of the United States of America or of any rules of the commission may constitute an unsuitable method of operation, subjecting the licensee to limiting, conditioning, restricting, revoking or suspending the license, or fining the licensee or advance deposit sports wagering operator, or any combination of the above. The commission has the discretion to suspend mobile gaming operations of its licensees by written order if necessary.       These rules are intended to implement Iowa Code chapters 99D and 99F as amended by 2019 Iowa Acts, Senate File 617.

    ITEM 31.    Adopt the following new 491—Chapter 14: CHAPTER 14FANTASY SPORTS CONTESTS

491—14.1(99E) Definitions.  As used in these rules, unless the context otherwise requires, the following definitions apply:        "Administrator" means the administrator of the racing and gaming commission or the administrator’s designee.        "Applicant" means an internet fantasy sports contest service provider applying for a license to conduct internet fantasy sports contests under this chapter.        "Commission" means the state racing and gaming commission created under Iowa Code section 99D.5.        "Entry fee" means cash or cash equivalent that is required to be paid by an internet fantasy contest player to an internet fantasy sports contest service provider in order to participate in a fantasy sports contest.        "Fantasy sports contest" "contest" means a fantasy or simulated game or contest in which:
  1. The fantasy sports contest operator is not a participant in the game or contest;
  2. The value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest;
  3. All winning outcomes reflect the relative knowledge and skill of the participants;
  4. The outcome shall be determined by accumulated statistical results of the performance of individuals, including athletes in the case of sporting events; and
  5. No winning outcome is solely based on the score, point spread, or any performance or performances of any single actual team or solely on any single performance of an individual athlete or player in any single actual event. However, until May 1, 2020, “fantasy sports contest” does not include any fantasy or simulated game or contest in which any winning outcomes are based on statistical results from a collegiate sporting event as defined in Iowa Code section 99F.1.
        "Fantasy sports contest service provider" means a person, including a licensee under Iowa Code chapter 99D, 99E or 99F, who conducts an internet fantasy sports contest as authorized by this chapter.        "Highly experienced player" means a person who has entered more than 1,000 contests conducted by a single fantasy sports contest service provider or has won more than three fantasy contest prizes of $1,000 or more from a single fantasy sports contest service provider.        "Internal controls" means the fantasy sports contest service provider’s system of internal controls.        "Licensee" means any person licensed under Iowa Code section 99E.5 to conduct internet fantasy sports contests.        "Location percentage" means, for each internet fantasy sports contest, the percentage, rounded to the nearest tenth of a percent, equal to the total charges and fees collected from all internet fantasy sports contest players located in this state divided by the total charges and fees collected from all participants in the internet fantasy sports contest.        "Net revenue" means an amount equal to the total entry and administrative fees collected from all participants entering fantasy sports contests less winnings paid to participants in the contest, multiplied by the location percentage.        "Player" "customer" means a person who is at least 21 years of age and participates in an internet fantasy sports contest operated by an internet fantasy sports contest service provider.        "Prize" means anything of value, including cash or a cash equivalent, contest credits, merchandise or entry to another contest in which a prize may be awarded.        "Script" means a list of commands that a fantasy sports-related computer program can execute and is created by fantasy sports players, or by third parties for the use of all players, to automate processes on a fantasy sports contest internet platform.

491—14.2(99E) Application for fantasy sports contest service provider license and licensing.  A fantasy sports contest service provider must be licensed by the commission to offer an internet fantasy sports contest under Iowa Code chapter 99E. Any individuals who are required to be occupationally licensed by the commission shall comply with the license requirements of Iowa Code section 99E.5 and rules 491—6.2(99D,99E,99F,252J) to 491—6.13(99D,99F,272D). Occupational licensees are also subject to 491—Chapter 4.    14.2(1) Licensing standards.  Standards which shall be considered when determining the qualifications of an applicant shall include, but are not limited to, financial stability; business ability and experience; good character and reputation of the applicant as well as all directors, officers, partners, and employees and integrity of financial backers. For the purposes of this rule, the term “applicant” includes each member of the board of directors or other governing body of an applicant.    a.    The commission shall not grant a license to an applicant if there is substantial evidence that any of the following apply:    (1)   A license issued to the applicant to conduct internet fantasy sports contests in another jurisdiction has been revoked, or a request for a license to conduct internet fantasy sports contests in another jurisdiction has been denied, by an entity licensing persons to conduct such contests in that jurisdiction.    (2)   The applicant has not demonstrated financial responsibility sufficient to adequately meet the requirements of the enterprise proposed.    (3)   The applicant does not adequately disclose the true owners of the enterprise proposed.    (4)   The applicant has knowingly made a false statement of a material fact to the commission.    (5)   The applicant has failed to meet a monetary obligation in connection with conducting an internet fantasy sports contest.    (6)   The applicant is not of good repute and moral character or the applicant has pled guilty to, or has been convicted of, a felony.    (7)   Any member of the board of directors or governing body of the applicant is not 21 years of age or older.    b.    A person who knowingly makes a false statement on the application is guilty of an aggravated misdemeanor.    14.2(2) Application procedure.   Application for an internet fantasy sports contest service provider license shall be made to the commission on the form prescribed and published by the commission. In addition to the application, the following must be completed and presented when the application is filed:    a.    Disclosure of ownership interest, directors, or officers of applicant.    b.    The identity and date of birth of each member of the board of directors or other governing body of the applicant.    c.    The identity of each director, corporate officer, owner, partner, joint venture participant, trustee, or any other person who has any beneficial interest of 5 percent or more, direct or indirect, in the business entity. For any of the above, as required by the administrator, the applicant or licensee shall submit background information on forms supplied by the division of criminal investigation and any other information the administrator may require. For purposes of this rule, the term “beneficial interest” includes all direct and indirect forms of ownership or control, voting power, or investment power held through any contract, lien, lease, partnership, stockholding, syndication, joint venture, understanding, relationship (including family relationship), present or reversionary right, title or interest, or otherwise.    d.    For ownership interests of less than 5 percent, the administrator may request a list of these interests. At a minimum, the list shall include names, percentages owned, addresses, social security numbers, and dates of birth. The administrator may request the same information required of those individuals in subrule 14.2(1).    e.    A list of employees of the aforementioned who may be conducting business directly or indirectly on behalf of the applicant in the state of Iowa.    f.    A bond or irrevocable letter of credit on behalf of the applicant or other satisfactory evidence, as determined by the commission, of a safe and reliable means of fulfilling the applicant’s obligations to customers and the state of Iowa in an amount determined by the commission.    14.2(3) Investigative fee.      a.    Advance payment. The department of public safety may request payment of the investigative fee in advance as a condition to beginning the investigation.    b.    Payment required. The administrator may withhold final action with respect to any application until all investigative fees have been paid in full.    14.2(4) Application fee.  A bank or cashier’s check shall be made payable to Iowa Racing and Gaming Commission for $5,000.    14.2(5) Reporting of changes.  Any and all changes in the applicant’s legal structure, directors, officers, or the respective ownership interests must be promptly filed with the administrator.    14.2(6) Ineligibility.  The administrator may deny, suspend, or revoke the license of an applicant or licensee in which a director, corporate officer, or holder of a beneficial interest includes or involves any person or entity which would be, or is, ineligible in any respect, such as through want of character, moral fitness, financial responsibility, professional qualifications, or due to failure to meet other criteria employed by the administrator, to participate in gaming regardless of the percentage of ownership interest involved. The administrator may order the ineligible person or entity to terminate all relationships with the licensee or applicant, including divestiture of any ownership interest or beneficial interest at acquisition cost.    14.2(7) Disclosure.  Disclosure of the full nature and extent of all beneficial interests may be requested by the administrator and shall include the names of individuals and entities, the nature of their relationships, and the exact nature of their beneficial interest.    14.2(8) Public disclosure.  Disclosure is made for the benefit of the public, and all documents pertaining to the ownership filed with the administrator shall be available for public inspection.    14.2(9) Supplementary information.  Each applicant shall promptly furnish the administrator with all additional information pertaining to the application or the applicant which the administrator may require. Failure to supply the requested information within five days after the request has been received by the applicant shall constitute grounds for delaying consideration of the application.    14.2(10) Requirements placed upon applicants and licensees.  For purposes of this chapter, the requirements placed upon an applicant shall become a requirement to the licensee once a license has been granted. Every license is granted upon the condition that the license holder shall accept, observe, and enforce the rules and regulations of the commission. It is the affirmative responsibility and continuing duty of each officer, director, and employee of said license holder to comply with the requirements of the application and conditions of license and to observe and enforce the rules. The holding of a license is a privilege. The burden of proving qualifications for the privilege to receive any license is on the licensee at all times. A licensee must accept all risks of adverse public notice or public opinion, embarrassment, criticism, or financial loss that may result from action with respect to a license. Licensees further covenant and agree to hold harmless and indemnify the Iowa racing and gaming commission from any claim arising from any action of the commission in connection with that license.

491—14.3(99E) Temporary license certificates.      14.3(1)   A temporary license certificate may be issued at the discretion of the administrator.    14.3(2)   Any temporary license certificate issued at the discretion of the administrator shall be valid for a maximum of 120 calendar days from the date of issue. Failure to obtain a permanent license within the designated time may result in revocation of license eligibility, fine, or suspension.

491—14.4(99E) Withdrawal of application.  A written notice of withdrawal of application may be filed by an applicant at any time prior to final action. No application shall be permitted to be withdrawn unless the administrator determines the withdrawal to be in the public interest. No fee or other payment relating to any application shall become refundable by reason of withdrawal of the application.

491—14.5(99E) Fees.      14.5(1) Initial license.  Once the commission is satisfied that the requirements of this chapter have been met, an applicant will be granted an initial license for up to three years.    14.5(2) Annual license fee.  After the initial licensing period, a licensee shall pay an annual fee of $1,000 for licensees with a yearly adjusted gross revenue under $150,000 or $5,000 for licensees with a yearly adjusted gross revenue of $150,000 or greater. The administrator shall set the time period for determining a licensee’s adjusted gross revenue. Licenses must be renewed annually in a manner established by the commission.

491—14.6(99E) Taxes.      14.6(1)   The licensee shall pay a tax rate pursuant to Iowa Code section 99E.6 on adjusted revenue from fantasy sports contests. “Adjusted revenue” means the amount equal to the total charges and fees collected from all participants entering the fantasy sports contest less winnings paid to participants in the contest, multiplied by the location percentage defined in Iowa Code section 99E.1.    14.6(2)   Voided and canceled transactions are not considered receipts for the purpose of this calculation.    14.6(3)   Any offering used to directly participate in a contest shall be considered receipts for the purpose of this calculation.     14.6(4)   Any other fee collected to participate in a fantasy sports contest shall be subject to the wagering tax pursuant to Iowa Code section 99E.6.    14.6(5)   All moneys collected for and owed to the state of Iowa under Iowa Code chapter 99E for the payment of fantasy sports contests shall be accounted for, itemized and paid on a monthly basis in a format approved by the commission.

491—14.7(99E) Account registration.  A person must have an established account in order to participate in fantasy sports contests. To establish an account, an application for an account shall be authorized in a manner approved by the administrator and shall include the applicant’s full legal name, principal residential address, date of birth and any other information required by the commission. The account registration process shall also include:    14.7(1)   Age verification to prevent persons under the legal age from participating in fantasy sports contests and establishing an account.    14.7(2)   Customer verification of legal name, physical address and age to correctly identify account holders.    14.7(3)   Verification that the customer is not on the statewide self-exclusion list set forth in Iowa Code section 99F.4(22) prior to establishing an account.    14.7(4)   Availability and acceptance of a set of terms and conditions that are also readily accessible to the customer before and after registration and noticed when updated. Notices shall include, at a minimum, the following:    a.    Explanation of rules in which any unrecoverable malfunctions of hardware/software are addressed including, but not limited to, if the unrecoverable malfunction, fantasy sports event cancellation, or any other catastrophic malfunction results in the voiding of any contests.    b.    Procedures to deal with interruptions caused by the suspension of data flow from the network server during a contest.    c.    Specifications advising customers to keep their account credentials secure.    d.    Statement that no underage individuals are permitted to participate in contests.    e.    Statement that only players legally permitted by their respective jurisdiction can participate in contests.    14.7(5)   Availability and acceptance of a privacy policy that is also readily accessible to the customer before and after registration and noticed when updated that include, at a minimum, the following:    a.    Statement of information that is collected, the purpose for information collection and the conditions under which information may be disclosed.    b.    Statement that any information obtained in respect to customer registration or account establishment must be done in compliance with the privacy policy.    c.    Requirement that any information about customer accounts which is not subject to disclosure pursuant to the privacy policy must be kept confidential, except where the release of that information is required by law.    d.    Requirement that all customer information must be securely erased from hard disks, magnetic tapes, solid state memory and other devices before the device is properly disposed of by the licensee. If erasure is not possible, the storage device must be destroyed.

491—14.8(99E) Fantasy sports contest service provider requirements.      14.8(1) Internal controls.  Licensees shall submit a description of internal controls to the administrator. The submission shall be made at least 30 days before fantasy sports contest operations are to commence unless otherwise approved by the administrator. All internal controls must be approved by the administrator prior to commencement of contest operations. The service provider shall submit to the administrator any changes to the internal controls previously approved at least 15 days before the changes are to become effective unless otherwise directed by the administrator. It shall be the affirmative responsibility and continuing duty of each licensee and its employees to follow and comply with all internal controls. The submission shall include controls and reasonable methods that provide for the following:    a.    Prevent employees of the internet fantasy sports contest service provider and relatives living in the same household of such employees from competing in any internet fantasy sports contest on the service provider’s digital platform in which the service provider offers a prize to the public.    b.    Verify that any fantasy sports contest player is 21 years of age or older.    c.    Ensure that coaches, officials, athletes, contestants, or other individuals who participate in a game or contest that is the subject of an internet fantasy sports contest are restricted from entering an internet fantasy sports contest in which the outcome is determined, in whole or in part, by the accumulated statistical results of a team of individuals in the game or contest in which they participate.    d.    Provide for an easy and obvious method for a player to make a complaint and to enable the player to notify the commission if such complaint has not been or cannot be resolved by the licensee.    e.    Description of the measures used to determine the true identity, date of birth, and address of each player seeking to open an account.     f.    Description of standards and procedures used to monitor fantasy sports contests to detect the use of unauthorized scripts and restrict players found to have used such scripts from further fantasy sports contests.     g.    Controls to prevent unauthorized withdrawals from a registered player’s account by the service provider or others.    h.    Description on how the service provider will accept wagers within the permitted boundary.    i.    Description on how the service provider will segregate fantasy sports contest player funds from operational funds.    j.    The methods by which the fantasy sports contest service provider will protect a fantasy sports contestant’s personal and private information.    14.8(2) Records.  Licensees shall provide all information requested by the commission. Access to this information shall be immediate, and copies of the information shall be delivered within seven days or less as ordered by the commission. The licensees shall ensure all books and records and their retention comply with 491—subrule 5.4(14). All records pertaining to contests shall be available to allow for player complaint resolution.     14.8(3) Reporting.  The licensee shall provide immediate notification of any facts which the licensee has reasonable grounds to believe indicate a violation of law or commission rule committed by licensees, their key persons, or their employees, including without limitation, the performance of licensed activities different from those permitted under their license. The licensee is also required to provide a detailed written report within 72 hours from the discovery for any of the following:    a.    Criminal or disciplinary proceedings commenced against the service provider in connection with its operations;    b.    Abnormal contest activity or patterns that may indicate a concern about the integrity of an internet fantasy sports contest;    c.    Any other conduct with the potential to corrupt an outcome of an internet fantasy sports contest for purposes of financial gain, including but not limited to match fixing;    d.    Suspicious or illegal internet fantasy sports contest activities, including the use of funds derived from illegal activity, deposits of money to enter an internet fantasy sports contest to conceal or launder funds derived from illegal activity;    e.    The use of agents to enter an internet fantasy sports contest, or use of false identification.    14.8(4) Technical and testing requirements.      a.    Initial testing.All equipment and systems integral to the conduct of fantasy sports contests shall be tested and certified for compliance with commission rules and the standards required by a commission-designated independent testing laboratory. Certification and commission approval must be received prior to the use of any equipment or system to conduct a fantasy sports contest. The commission may designate more than one independent testing laboratory.    b.    Change control.The fantasy sports contest service providers shall submit change control processes that detail evaluation procedures for all updates and changes to equipment and systems to the administrator for approval. These processes shall include details for identifying criticality of updates and determining of submission of updates to an independent testing laboratory for review and certification.    c.    Annual testing.    (1)   A system integrity and security risk assessment shall be performed annually on the fantasy sports contest system.    1.   The testing organization must be independent of the licensee and shall be qualified by the administrator.    2.   The system integrity and security risk assessment shall be conducted no later than 90 days after the start of the licensee’s fiscal year.    3.   Results from the risk assessment shall be submitted to the administrator no later than 30 days after the assessment is conducted.    (2)   At the discretion of the administrator, additional assessments or specific testing criteria may be required.    d.    Limit on number of websites and platforms.A fantasy sports contest service provider is authorized to conduct no more than two websites or platforms maintained and operated by the service provider.     14.8(5) Operating requirements.  A fantasy sports contest service provider shall ensure the following:    a.    Players winning fantasy sports contests shall have winning funds deposited into their player account or be paid by other means approved by the administrator within 48 hours from the end of the contest. If funds are unable to be placed in a player’s account, the fantasy sports contest service provider shall mail the funds to the player’s address on file within ten days.    b.    Player withdrawal of funds maintained in the player account shall be completed within five business days of the request unless the licensed fantasy sports contest service provider believes, in good faith, that the player engaged in fraud or other illegal activity pursuant to Iowa Code chapter 99D, 99E or 99F.     c.    Procedures allow for a player to close an account and access player history, including all fantasy sports contests in which the player participated.     d.    Employees of the licensee are prohibited from participation in any fantasy sports contest offered by the licensee in which a cash prize is offered to the public. This includes relatives living in the same household as such employees from competing in any fantasy sports contests offered by any licensee.    e.    Prohibit the sharing of confidential information that could affect fantasy contest play with third parties until the information is made publicly available.    f.    Players are allowed to voluntarily self-exclude in compliance with Iowa Code section 99F.4(22), and a fantasy sports contest service provider shall follow all resolutions associated with the process.

491—14.9(99E) Contest rules.      14.9(1)   Prior to conducting a new type of fantasy sports contest, a fantasy sports contest service provider shall submit proposals for the contest format including, but not limited to: contest rules, prize information, source of the information used to determine the outcome of the contest, and any restrictive features of the contest. The contest submission, or requests for modification to an approved contest, shall be in writing and approved by the administrator prior to implementation. Once a contest is approved, the contest is available for all providers unless the contest format is subsequently disapproved by the administrator for any reason the commission deems appropriate. Service providers may offer minor variations of an approved contest type without seeking administrator approval. Minor variations include:    a.    Offering the contest format for any sport, league, association or organization previously approved by the administrator for any fantasy contest type;    b.    The size of the contest and number of entries permitted;    c.    Nonmaterial changes to entry fee and prize structure;    d.    The number of athletes that a contestant selects to fill a roster when completing an entry;    e.    The positions that must be filled when completing an entry;    f.    Adjustments to the scoring system; and    g.    Adjustments to a salary cap.    14.9(2)   Licensees are required to comply with and ensure the following:    a.    Advertisements for contests and prizes offered by a licensee shall not target prohibited participants, underage persons, or self-excluded persons.    b.    The values of all prizes and awards offered to winning players must be established and made known to the players in advance of the contest.    c.    Introductory procedures for players are prominently displayed on the main page of the licensee’s platform to explain contest play and how to identify a highly experienced player.    d.    The platform must identify all highly experienced players in every fantasy sports contest by a symbol attached to the players’ usernames, or by other easily visible means, on all platforms supported by the licensee.    e.    The platform does not offer contests based on the performance of participants in high school or youth sports events. However, until May 1, 2020, “fantasy sports contest” does not include any fantasy or simulated game or contest in which any winning outcomes are based on statistical results from a collegiate sporting event as defined in Iowa Code section 99E.1.    f.    Representations or implications about average winnings from contests shall not be unfair or misleading.     g.    Prohibit the use of third-party scripts or scripting programs for any contest and ensure that measures are in place to deter, detect, and prevent cheating to the extent reasonably possible. “Cheating” includes collusion and the use of cheating devices, including the use of software programs that submit entry fees or adjust the athletes selected by a player.    h.    Prominently include information about the maximum number of entries that may be submitted for that contest for all advertised fantasy sports contests.    i.    Disclose the number of entries that a player may submit to each fantasy sports contest and provide reasonable steps to prevent players from submitting more than the allowable number.    j.    Provide players with an opportunity to file a patron dispute.    k.    The licensee shall conspicuously disclose the source of the data utilized in any results.

491—14.10(99E) Segregation account requirements and financial reserves.      14.10(1) Segregation.   Fantasy sports contest service providers shall segregate all fantasy sports contest player funds from operational funds.    14.10(2) Financial reserves.  For the protection of the funds of contest participants held in paid fantasy sports accounts, the fantasy sports contest service provider shall maintain a reserve in the form of cash, cash equivalents, an irrevocable letter of credit, payment processor reserves and receivables, a bond, or a combination thereof in the amount of the deposits in internet fantasy sports contest player accounts.    a.    The method of reserve shall be submitted and approved by the commission prior to implementation.    b.    The amount of the reserve shall be equal to, at a minimum, the sum of all registered players’ funds held in player accounts originating in Iowa.    c.    If, at any time, the licensee’s total available cash and cash equivalent reserve is less than the amount required, the licensee shall notify the commission of this deficiency within 48 hours.    d.    Each licensee shall continuously monitor and maintain a record of all player deposits and the licensee’s cash reserves to ensure compliance with the cash reserves requirement.    e.    The licensee shall provide the commission with documentation including the amount of deposits in players’ accounts and the amount in cash reserves as of the last day of each month. The information is due by the fifteenth day of the month for the preceding month.

491—14.11(99E) Annual audit.  An audit of the fantasy sports contest operations for the licensee or parent company of the licensee shall be conducted by certified public accountants authorized to practice in the state of Iowa and provided to the commission within 180 days of the licensee’s fiscal year and meet the following conditions:    14.11(1)   Inclusion of an internal control letter, audited balance sheet, and audited profit-and-loss statement including a breakdown of expenditures and subsidiaries of fantasy sports contest activities.    14.11(2)   Inclusion of a supplement schedule indicating financial activities on a calendar-year basis if the licensee’s fiscal year does not correspond to the calendar year.    14.11(3)   Report of any material errors or irregularities that may be discovered during the audit.    14.11(4)   Availability, upon request, of an engagement letter for the audit between the licensee or parent company of the licensee and the auditing firm.

491—14.12(99E) Abandoned accounts.      14.12(1)   Abandoned player accounts under this rule are subject to Iowa Code chapter 556. Player accounts are considered abandoned if no activity by the account holder has occurred for three years. Player activity includes entering a contest, making an account deposit, or withdrawing funds.    14.12(2)   No internet fantasy sports contest service provider shall charge an administration fee or maintenance fee for any inactive player account derived from state of Iowa residents at any time for any reason.

491—14.13(99E) Problem gambling.      14.13(1)   The licensee shall adopt and implement the following:    a.    Policies and procedures designed to identify problem gamblers.    b.    Policies and procedures designed to comply with the process established by the commission pursuant to Iowa Code section 99F.4(22).    c.    Policies and procedures designed to cooperate with the Iowa gambling treatment program in creating and establishing controls.    d.    Policies and procedures designed to make information available to customers concerning assistance for compulsive play in Iowa, including websites or toll-free numbers directing customers to reputable resources containing further information, which shall be free of charge.    e.    A process to easily and prominently impose limitations or notifications for deposits and monetary participation in a contest. Upon receipt, any self-imposed limits must be employed correctly and immediately as indicated to the player. No changes can be made reducing the severity of the self-imposed limitations for at least 24 hours.    f.    A process to easily and prominently self-exclude for a specified period of time or indefinitely and easily and obviously direct participants, via a link, to exclude themselves pursuant to Iowa Code section 99F.4(22). Upon receipt, any self-exclusion limits must be employed correctly and immediately as indicated to the player. No changes can be made to reduce the severity of the self-exclusion limitations for at least 24 hours. In the event of indefinite self-exclusion, the licensee must ensure that the player is paid in full for the player’s account balance within a reasonable time provided that the licensee acknowledges that the funds have cleared. This control does not supersede the requirements set forth in Iowa Code section 99F.4(22).    g.    A process to review and deactivate accounts of newly enrolled participants of the statewide self-exclusion program set forth in Iowa Code section 99F.4(22). The licensee must ensure that the player is paid in full for the player’s account balance provided that the licensee acknowledges that the funds have cleared.    14.13(2)   The licensee shall also include on the internet site or mobile application the statewide telephone number of the Iowa department of public health to provide problem gambling information and extensive responsible gaming features in addition to those described in Iowa Code section 99F.4(22).    14.13(3)   Money forfeited by a voluntarily excluded person pursuant to Iowa Code section 99F.4(22) shall be withheld by the licensee and remitted to the general fund of the state by the licensee.

491—14.14(99E) Licensing of internet fantasy sports contest service providers.      14.14(1) Operation.  The internet fantasy sports contest service provider shall submit the following for commission approval:    a.    Internal controls for the operation of the account.    b.    A detailed description and certification of systems and procedures used by the internet fantasy sports contest service provider to validate the identity, age and location of licensee account holders and to validate the legality of wagers accepted.    c.    Certification of secure retention of all records related to internet fantasy sports contests and accounts for a period of not less than three years or such longer period as specified by the commission.    d.    Certification of prompt commission access to all records relating to account holder identity, age and location in hard-copy or standard electronic format acceptable to the commission.    e.    Verification that the player is not on the statewide voluntary self-exclusion list set forth in Iowa Code section 99F.4(22) prior to establishing an account.    14.14(2) Record keeping.      a.    Record storage required. Internet fantasy sports contest service providers shall maintain adequate records of business operations, which shall be made available to the administrator upon request. These records shall include:    (1)   All correspondence with the administrator and other governmental agencies on the local, state, and federal level.    (2)   All correspondence between the licensee and any of its customers who are applicants or licensees under Iowa Code chapter 99E.    (3)   Financial records of all transactions with players and all other licensees under these regulations.    b.    Record retention. The records listed in paragraph 14.14(2)“a” shall be retained as required by 491—subrule 5.4(14).    14.14(3) Violation of laws or regulations.   Violation of any provision of any laws of the state or of the United States of America or of any rules of the commission may constitute an unsuitable method of operation, subjecting the licensee to limiting, conditioning, restricting, revoking or suspending the license, or fining the licensee, or any combination of the above. The commission has the discretion to suspend fantasy sports contest operations of its licensees by written order if necessary.        These rules are intended to implement Iowa Code chapter 99E as enacted by 2019 Iowa Acts, Senate File 617, and Iowa Code chapters 99D and 99F as amended by 2019 Iowa Acts, Senate File 617.
    [Filed Emergency 7/31/19, effective 7/31/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4632CCredit Union Division[189]Adopted and Filed

Rule making related to board of directors and branch applications

    The Credit Union Division hereby amends Chapter 2, “Organization, Chartering and Field of Membership of a Credit Union,” and Chapter 6, “Branch Offices,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code sections 533.104(5) and 533.107(6).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 533.113A, 533.205(3)“c” and 533.301(19).Purpose and Summary    The amendment to Chapter 2 moves the content of existing rule 189—2.9(533) to rule 189—2.8(533) and codifies in rule 189—2.9(533) board of directors meeting requirements with respect to frequency of meetings and quorum requirements. The amendments to Chapter 6 reflect a modernization of the current requirements for filing branch applications and establish a penalty for failure to comply with the applicable application requirements.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on March 13, 2019, as ARC 4331C. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Credit Union Review Board on April 17, 2019.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Division for a waiver of the discretionary provisions, if any, pursuant to rule 189—17.20(533) and the process outlined in 189—Chapter 23.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 2, 2019.    The following rule-making actions are adopted:

    ITEM 1.    Amend rules 189—2.8(533) and 189—2.9(533) as follows:

189—2.8(533) Incorporationand commencement of business.      2.8(1) Organization meeting.  Proposed members shall meet and through a majority vote approve the incorporation of the credit union chartered by the division.    2.8(2) Filing of corporate records.      a.    Articles of incorporation.Upon the division’s grant of a charter, the applicants shall file the credit union’s articles of incorporation, with the certificate of approval attached, with the county recorder of the county where the credit union is to have its principal place of business.    b.    Oath of office.Within ten days after the meeting to incorporate the new credit union, and within ten days after each annual meeting thereafter, a notarized oath of office including the name, signature, position, and address of each member of the board of directors shall be filed with the superintendent. Within ten days of the appointment or election of any new member of the board of directors, a notarized oath of office shall be filed in the same manner.    2.8(3) Commencement of business.  A credit union shall not commence business (which shall include, but not be limited to, the incurring of any obligation or the commitment of any of its assets) until its chartering and incorporation are completed, and deposit insurance is obtained as required by law. A newly chartered credit union must commence business within 60 days after the date its charter is approved, or the credit union’s certificate of approval may be revoked by the superintendent.

189—2.9(533) Commencement of businessBoard of directors meeting requirements.  A credit union shall not commence business (which shall include, but not be limited to, the incurring of any obligation or the commitment of any of its assets) until its chartering and incorporation are completed, and deposit insurance is obtained as required by law. A newly chartered credit union must commence business within 60 days after the date its charter is approved, or the credit union’s certificate of approval may be revoked by the superintendent.    2.9(1)   The board of directors shall hold at least 12 regular meetings each calendar year. No more than one regular meeting shall be held in one calendar month.    2.9(2)   A quorum shall be required to undertake any credit union business and required at any meeting of the board of directors called by the superintendent pursuant to Iowa Code chapter 533.       This rule is intended to implement Iowa Code sections 533.205(3)“c” and 533.113A.

    ITEM 2.    Amend subrule 6.1(2) as follows:    6.1(2) Application.  A state chartered credit union desiring to establish and operate a branchor administrative office shall submit to the superintendent an “Application to Establish a Branchor Office.”A state chartered credit union owning an interest in a credit union service organization shall submit to the superintendent an “Application to Establish a Branch or Office” for any building which is intended to be used primarily by the credit union or credit union members, even if the building is owned by the credit union service organization. The application and instructions for preparing and filing it are furnished upon request.However, the superintendent may waive the application requirement when in the superintendent’s opinion the waiver is necessary or desirable.

    ITEM 3.    Adopt the following new subrule 6.1(7):    6.1(7) Failure to file application.  Failure to file an “Application to Establish a Branch or Office” prior to closing on existing real estate or breaking ground on a building project may result in a fine of $100 per day, upon notice from the credit union division, until the application is submitted to the credit union division.     [Filed 8/8/19, effective 10/2/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4633CEducational Examiners Board[282]Adopted and Filed

Rule making related to student loan default

    The Educational Examiners Board hereby rescinds Chapter 9, “Student Loan Default/Noncompliance with Agreement for Payment of Obligation,” and amends Chapter 11, “Complaints, Investigations, Contested Case Hearings,” and Chapter 25, “Code of Professional Conduct and Ethics,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 272.2 and 2019 Iowa Acts, Senate File 304.Purpose and Summary    These amendments are intended to implement 2019 Iowa Acts, Senate File 304, which eliminates the suspension or revocation of a license issued to a person who is in default or is delinquent on repayment or a service obligation under federal or state postsecondary educational loans or public or private services-conditional postsecondary tuition assistance solely on the basis of such default or delinquency.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 19, 2019, as ARC 4503C. A public hearing was held on July 10, 2019, at 1 p.m. in Room 3 Southwest, Grimes State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.    Adoption of Rule Making    This rule making was adopted by the Board on August 7, 2019.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 282—Chapter 6. Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 2, 2019.    The following rule-making actions are adopted:

    ITEM 1.    Rescind and reserve 282—Chapter 9.

    ITEM 2.    Amend subparagraph 11.4(1)"e" as follows:    (1)   The executive director receives information that a practitioner:
  1. Has been convicted of a felony criminal offense, or a misdemeanor criminal offense wherein the victim of the crime was 18 years of age or younger, and the executive director expressly determines within the complaint that the nature of the offense clearly and directly impacts the practitioner’s fitness or ability to retain the specific license(s) or authorization(s) which the practitioner holds; or
  2. Has been the subject of a founded report of child abuse placed upon the central registry maintained by the department of human services pursuant to Iowa Code section 232.71D and the executive director expressly determines within the complaint that the nature of the offense clearly and directly impacts the practitioner’s fitness or ability to retain the specific license(s) or authorization(s) which the practitioner holds; or
  3. Has not met a reporting requirement stipulated by Iowa Code section 272.15, Iowa Code section 279.43, 281—subrule 102.11(2), 282—Chapter 11, or 282—Chapter 25; or
  4. Has falsified a license or authorization issued by the board; or
  5. Has submitted false information on a license or authorization application filed with the board; or
  6. Does not hold the appropriate license for the assignment for which the practitioner is currently employed; or
  7. Has assigned another practitioner to perform services for which the practitioner is not properly licensed; or
  8. Has failed to comply with a board order as prohibited by 282—paragraph 25.3(7)“d”25.3(7)“c”; and

    ITEM 3.    Amend subrule 25.3(7) as follows:    25.3(7) Standard VII—compliance with state law governing obligations to state or local governments, student loan obligations, child support obligations, and board orders.  Violation of this standard includes:    a.    Failing to comply with 282—Chapter 8 concerning payment of debts to state or local governments.    b.    Failing to comply with 282—Chapter 9 concerning repayment of student loans.    c.    b.    Failing to comply with 282—Chapter 10 concerning child support obligations.    d.    c.    Failing to comply with a board order.    [Filed 8/8/19, effective 10/2/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4634CEducational Examiners Board[282]Adopted and Filed

Rule making related to abuse identification and reporting training

    The Educational Examiners Board hereby amends Chapter 15, “Special Education Support Personnel Authorizations,” Chapter 19, “Evaluator Endorsement and License,” Chapter 20, “Renewals,” Chapter 22, “Authorizations,” Chapter 23, “Behind-the-Wheel Driving Instructor Authorization,” and Chapter 24, “Paraeducator Certificates,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 272.2 and sections 232.69 and 235B.16 as amended by 2019 Iowa Acts, House File 731.Purpose and Summary    These amendments are intended to implement 2019 Iowa Acts, House File 731, which amends Iowa Code sections 232.69 and 235B.16 by modifying the mandatory child abuse and dependent adult abuse identification and reporting training requirements.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 19, 2019, as ARC 4504C. A public hearing was held on July 10, 2019, at 1 p.m. in Room 3 Southwest, Grimes State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on August 7, 2019.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa. Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Training requirements for mandatory reporters are set forth in Iowa Code sections 232.69 and 235B.16 and therefore cannot be waived.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 2, 2019.    The following rule-making actions are adopted:

    ITEM 1.    Amend subparagraph 15.7(6)"d" as follows:    (2)   Submit documentation of completion of the child and dependent adult abuse training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply under the following conditions with appropriate documentation of any of the following:
  1. A person is engaged in active duty in the military service of this state or of the United States.
  2. The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.
  3. A person is practicing a licensed profession outside this state.
  4. A person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse training in this state.

    ITEM 2.    Amend subrule 19.8(1) as follows:    19.8(1) Child and dependent adult abuse trainingtrainings.  All applicants renewing an evaluator license must submit documentation of completion of the child and dependent adult abuse training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply if a person submits appropriate documentation of any of the following:    a.    A person is engaged in active duty in the military service of this state or of the United States.    b.    The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.    c.    A person is practicing a licensed profession outside this state.    d.    A person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse training in this state.

    ITEM 3.    Amend subrule 20.3(4), introductory paragraph, as follows:    20.3(4) Child and dependent adult abuse trainingtrainings.  Every renewal applicant must submit documentation of completion of the child and dependent adult abuse trainingtrainings approved by the state abuse education review paneldepartment of human services.The completion documentation must be no more than three years old at the time of application. A waiver of this requirement may apply under the following conditions with appropriate documentation of any of the following:

    ITEM 4.    Amend subparagraph 22.1(4)"a" as follows:    (3)   Complete child and dependent adult abuse trainingtrainings. Every renewal applicant must submit documentation of completion of the child and dependent adult abuse training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). This certificationThese trainings combined may be used for a maximumtotal of one planned activity/course required in 22.1(4)“a”(1). A waiver of this requirement may apply if a person is engaged in active duty in the military service of this state or of the United States.

    ITEM 5.    Amend subparagraph 22.1(7)"b" as follows:    (4)   Successful completion of an approvedthe child and dependent adult abuse mandatory reporter training coursetrainings pursuant to 282—subrule 20.3(4).

    ITEM 6.    Amend subparagraph 22.2(1)"c" as follows:    (2)   Child and dependent adult abuse trainingtrainings. Every renewal applicant must submit documentation of completion of the child and dependent adult abuse training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply under the following conditions with appropriate documentation of any of the following:
  1. A person is engaged in active duty in the military service of this state or of the United States.
  2. The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.
  3. A person is practicing a licensed profession outside this state.
  4. A person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse training in this state.
  5. The person has previously renewed a license or another authorization issued by the board of educational examiners and, at that time, reported the completion, within the past five years, of child and dependent adult abuse training approved by the state abuse education review panel.

    ITEM 7.    Amend paragraph 22.3(7)"b" as follows:    b.    Child and dependent adult abuse mandatory reporter trainingtrainings. Every renewal applicant must submit documentation of completion of the child and dependent adult abuse mandatory reporter training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply under any of the following appropriately documented conditions:    (1)   The person is engaged in active duty in the military service of this state or of the United States.    (2)   The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.    (3)   The person is practicing in a licensed profession outside this state.    (4)   The person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse mandatory reporter training in this state.    (5)   The person has previously renewed a license or another authorization issued by the board of educational examiners and, at that time, reported the completion, within the past five years, of child and dependent adult abuse mandatory reporter training approved by the state abuse education review panel.

    ITEM 8.    Amend subparagraph 22.7(7)"b" as follows:    (2)   Child and dependent adult abuse mandatory reporter trainingtrainings. Every renewal applicant must submit documentation of completion of the child and dependent adult abuse mandatory reporter training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply under any of the following appropriately documented conditions:
  1. The person is engaged in active duty in the military service of this state or of the United States.
  2. The person has previously renewed a license or another authorization issued by the board of educational examiners and, at that time, reported the completion, within the past five years, of child and dependent adult abuse mandatory reporter training approved by the state abuse education review panel.

    ITEM 9.    Amend subrule 23.5(3) as follows:    23.5(3)   Effective September 1, 2002, the childChild and dependent adult abuse training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply under the following conditions with appropriate documentation of any of the following:    a.    The person is engaged in active duty in the military service of this state or of the United States.    b.    The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.    c.    The person is practicing a licensed profession outside this state.    d.    The person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse training in this state.    e.    The person has previously renewed a license or authorization issued by the board of educational examiners and, at that time, reported the completion, within the past five years, of child and dependent adult abuse training approved by the state abuse education review panel.

    ITEM 10.    Amend subrule 24.6(2) as follows:    24.6(2)   All applicants renewing a paraeducator certificate must submit documentation of completion of the child and dependent adult abuse training approved by the state abuse education review paneltrainings pursuant to 282—subrule 20.3(4). A waiver of this requirement may apply under the following conditions with appropriate documentation of any of the following:    a.    A person is engaged in active duty in the military service of this state or of the United States.    b.    The application of this requirement would impose an undue hardship on the person for whom the waiver is requested.    c.    A person is practicing a licensed profession outside this state.    d.    A person is otherwise subject to circumstances that would preclude the person from satisfying the approved child and dependent adult abuse training in this state.    [Filed 8/8/19, effective 10/2/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4635CEducational Examiners Board[282]Adopted and Filed

Rule making related to preservice substitute authorization

    The Educational Examiners Board hereby amends Chapter 22, “Authorizations,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 272.2.State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code section 272.2.Purpose and Summary    This amendment creates a new preservice substitute authorization to allow certain teacher preparation candidates to serve as substitute teachers.Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 19, 2019, as ARC 4501C. A public hearing was held on July 10, 2019, at 1 p.m. in Room 3 Southwest, Grimes State Office Building, Des Moines, Iowa. No one attended the public hearing. No public comments were received. No changes from the Notice have been made.Adoption of Rule Making    This rule making was adopted by the Board on August 7, 2019.Fiscal Impact     This rule making has no fiscal impact to the State of Iowa.Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Board for a waiver of the discretionary provisions, if any, pursuant to 282—Chapter 6.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 2, 2019.    The following rule-making action is adopted:

    ITEM 1.    Adopt the following new subrule 22.2(4):    22.2(4) Preservice substitute authorization.  A nonrenewable preservice substitute authorization may be issued to applicants who do not meet the requirements in subrule 22.2(1) but who are enrolled in a state-approved Iowa teacher preparation program.    a.    Requirements.Eligible applicants for the preservice substitute authorization shall meet the following requirements:    (1)   Recommendation from the designated recommending official at the Iowa institution where the applicant is enrolled as a teacher preparation candidate. The recommending official will verify the following for each applicant:
  1. Full admission into a teacher preparation program, which must include passing scores on entry assessments.
  2. Junior or senior standing.
  3. Exemplary classroom readiness as identified by the teacher preparation program.
    (2)   Background check. Applicants must complete the background check requirements set forth in rule 282—13.1(272).     (3)   Minimum age. Applicants must have attained a minimum age of 21 years.
    b.    Validity.The preservice substitute authorization is valid for a maximum of two years. Holders of this authorization may not use substituting experience to supplant required field experiences or student teaching. This authorization may not be renewed or extended.
    [Filed 8/8/19, effective 10/2/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4636CEducation Department[281]Adopted and Filed

Rule making related to pupil transportation

    The State Board of Education hereby amends Chapter 43, “Pupil Transportation,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 256.7(5).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 285.8, 321.375 and 321.377.Purpose and Summary    Chapter 43 outlines requirements regarding pupil transportation. These amendments to Chapter 43 reflect requests from the field, provide clarifying language and technical corrections, and reflect changes to Department of Education practices. A more detailed explanation of these amendments follows:    Item 1 removes a restriction on load capacity, allows a school or school district to extend the current student ride time restriction by up to 15 minutes subsequent to a public hearing, and clarifies responsibilities for bus route reviews.    Items 2, 3, 5 to 7, 9 to 11, 17, 19, and 21 provide updated or clarifying language and technical corrections.    Item 4 clarifies that a private contractor is not prohibited from establishing variance in fees if a difference in transportation is necessary in order to meet student needs.    Item 8 modifies provisions related to nonroute uses of school buses, including broadening the type of staff members that can be involved and specifying that chaperones shall ride rather than accompany the bus. This item also clarifies requirements pertaining to passenger seating and requires schools utilizing buses in which 3-point lap-shoulder belts are installed to adopt a Board policy regarding use of these lap-shoulder belts by passengers.    Item 12 clarifies that for districts transporting students through a private contractor, billing for semiannual inspections of school buses will be presented to the contracting district for payment (current Department practice). This item also strikes a provision requiring that a “school bus driver and passenger safety education plan” be a component of the Department’s annual school transportation budget.    Item 13 modifies responsibilities pertaining to the submission of school bus driver authorization information to the Department of Education.    Item 14 modifies required local board procedures regarding the purchase of school buses.    Item 15 clarifies that the purchase of a school bus can be made from a fund other than the general fund as allowed by statute.    Item 16 increases the bus inspection fee from $40 to $50 per inspection, effective July 1, 2020. The increased fee will accommodate increased costs to the Department of Education related to the inspection process and allow for inspection staff training opportunities. The inspection fee was last raised in 2013.    Item 18 makes revisions to language requirements for contracts with private providers to transport school pupils.    Item 20 removes a requirement for the superintendent of schools to report accidents involving any vehicle used as a school bus to the Department of Education on the Department of Transportation Iowa Accident Report Form. This information is available to the Department of Education from the Department of Transportation.    Item 22 changes rule language to allow a driver to permit firearms or other weapons and ammunition to be transported in a school vehicle, provided these items are not in the passenger compartment of any school vehicle transporting pupils. The intent is to accommodate schools and school districts whose student activity programs include shooting sports, such as those organized through the Department of Natural Resources.    Item 23 updates language regarding civil defense projects to better allow for implementation of school emergency operation plans.    Item 24 adds language specifying when twice-annual safe riding instruction and emergency evacuation drills are to be provided to pupils and adds a requirement for schools to maintain documentation of these drills for five years and that the documentation be made available upon request. This item also modifies requirements pertaining to pretrip and posttrip vehicle inspections, provides a definition of “common carrier,” and removes the requirement for common carriers to provide accident reports to the Department of Education (similar to Item 19).Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 5, 2019, as ARC 4478C. A public hearing was held on June 25, 2019, at 9 a.m. in the State Board Room, Second Floor, Grimes State Office Building, Des Moines, Iowa. Four people attended and commented on the rules. A total of eight comments were received regarding the rules. One minor change was made to subrule 43.44(3) regarding seating to align the rule with 2019 Iowa Acts, House File 499. The word “for” was added to the Division IV header in Item 7.Adoption of Rule Making    This rule making was adopted by the State Board on August 1, 2019.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. However, the increase in inspection fee in Item 16 will have a minimal impact on local school transportation costs. Since vehicles are inspected semiannually, the new fee amount will result in a $20 annual increase per vehicle. School transportation costs are referenced when determining distribution of transportation equity funding under Iowa Code section 257.16C, open enrollment transportation assistance under Iowa Code section 282.18(10)“c,” and nonpublic transportation reimbursement under Iowa Code section 285.1(12).Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    An agencywide waiver provision is provided in 281—Chapter 4.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 2, 2019.    The following rule-making actions are adopted:

    ITEM 1.    Amend rule 281—43.1(285) as follows:

281—43.1(285) Intra-area education agency routes.      43.1(1)   Bus routes within the boundaries of transporting districts as well as within designated areas must be as efficient and economical as possible under existing conditions. Duplication of service facilities shall be avoided insofar as possible.    43.1(2)   A route shall provide a load of at least 75 percent capacity of the bus.    43.(3) 43.1(2)   The riding time, under normal conditions, from the designated stop to the attendance center, or on the return trip, shall not exceed 75 minutes for high school pupils or 60 minutes for elementary pupils.A school district may extend the riding time limits up to 15 minutes subsequent to a public hearing. (These limits may be waived upon request of the parents.)    43.(4) 43.1(3)   Pupils whose residence is within two miles of an established stop on a bus route are within the area served by the bus and are not eligible for parent or private transportation at public expense to the school served by the bus, except as follows:    a.    Bus is fully loaded.    b.    Physical handicapdisability makes bus transportation impractical.All parents or guardians who are required by their school district to furnish transportation for their children up to two miles to an established stop on a bus route shall be reimbursed pursuant to Iowa Code subsectionsection285.1(4).    43.(5) 43.1(4)   Transporting districts shall arrange routes to provide the greatest possible convenience to the pupils. DistanceThe distance for pupils who are required to transport themselvestravel to meet the bus shall be kept to the minimum consistent with road conditions, uniform standards, and legal requirements for locating bus routes.    43.(6) 43.1(5)   Each bus route shall be reviewed annuallyby local transportation staff for safety hazards.A record of the annual review must be maintained.

    ITEM 2.    Amend subrule 43.2(5) as follows:    43.2(5)   All interarea education agency bus routes must be approved each year. If there has been no change in the designations, nor in the proposed route,the transportation plan may be made and agreement indicated by letter.

    ITEM 3.    Amend rule 281—43.3(285) as follows:

281—43.3(285) Contract required.  All private contractors wishing to transport pupils to and from school in privately owned vehicles must be under contract with thelocal board of education. This requirement willdoes not apply to individuals who transport their own children or other children on a not-for-hire basis.The contract form used shall be that providedinclude, but not be limited to, all provisions prescribed by the department of education. (Form TR-F-4-497)

    ITEM 4.    Amend rule 281—43.4(285) as follows:

281—43.4(285) Uniform charge.  The contract must provide for a uniform charge for all pupils transported. No differentiations may be made between pupils of different districts except as provided in Iowa Code section 285.1(12).Nothing shall prohibit a private contractor from establishing variance in fees when differences in how transportation is provided are necessary in order to meet student needs.

    ITEM 5.    Amend rule 281—43.7(285) as follows:

281—43.7(285) Vehicle requirements.  Any vehicle used, other than that used by individuals to transport their own children or other children on a not-for-hire basis, is considered to be a school bus and must meet all requirements for the type of vehicle used, including semiannual inspection. (This requirement is not intended to restrict the use of passenger carsvehicles during the time the vehicles are not actually engaged in transporting school pupils.)

    ITEM 6.    Amend rule 281—43.9(285) as follows:

281—43.9(285) Activity trips deducted.  Transporting school districts which use their equipment for activity trips, or educational tours, or other types of transportation services as permitted in Iowa Code sections 285.10(9) and 285.10(10), must deduct the cost of trips from the total yearly transportation cost. In other words,These costs may not be included in the pro rata costs which determine the charge to sending districts.AccurateTransporting school districts must maintain accurate and complete accounting records must be kept so that the cost of transportation to and from school may be ascertained.

    ITEM 7.    Amend 281—Chapter 43, Division IV title, as follows:DIVISION IVUSE OF SCHOOL BUSESOTHER THAN FOR ROUTES

    ITEM 8.    Amend subrules 43.10(3) to 43.10(6) as follows:    .(3)   The program or activity must beis sponsored by a school or group of schools cooperatively and beis under the direct control of a qualified teacher or recreational or playground directorstaff member of a school district.    a.    A regularly certificated teacher must be in charge of the program. Several or all schools may engage the same instructorstaff member on a cooperative basis.    b.    In transporting pupils to Red Cross swimming classes a superintendent of schools may be designated by action of the district board as the supervisor or director of the activity and may use the Red Cross instructor to carry on the actual instruction in swimming.    c.    If the Red Cross instructor holds a regular teacher’s certificate issued by the board of educational examiners, the instructor can be named as general supervisor of the activity by the several schools.    .(4)   The bus shall be driven by a regularlyan approved driver holding an appropriate driver’s license and a school bus driver’s authorization. In addition, the buses must be accompanied by a member of the faculty or other employee of the school or a parent or other adult volunteer as authorized by a school administrator who will be responsible for the conduct and the general supervision of the pupils on the bus and at the place of the activity.This person shall ride the bus. If the faculty member is an approved driver, that person can act both as a driver and faculty sponsor.    .(5)   School buses may be used by an organization of, or sponsoring activities for, senior citizens, children, handicappedindividuals with disabilities, and other persons and groups, and for transportation of persons other than pupils to activities in which pupils from the school are participants or are attending the activity or for which the school is a sponsor under the following conditions:    a.    The “school bus” signs shall be covered and the flashing warning lamps and stop arm made inoperable when the bus is being used in a nonschool-sponsored activity.    b.    Transportation outside the state of Iowa shall not be provided without the approval of the Federal Motor Carrier Safety Administration of the United States Department of Transportation.    c.    A chaperone shall accompanyride each bus to assist the passengers in boarding and disembarking from the bus and to aid them in case of illness or injury.    d.    The driver of the bus shall be approved by the local board of education and must possess an appropriate driver’s license and a school bus driver’s authorization.    e.    The driver of the bus shall observe the maximum speed limitsall motor vehicle laws for school buses at all times.    .(6)   SeatingThe bus meets passenger seating requirements.    a.    Each passenger shall have a comfortable seat, with no part of the passenger’s body extending into the aisle.    b.    Student passengers shall have a minimum of 13 inches of allowable seating per person.    c.    For adult groups, no more than two persons shall occupy a 39-inch seat.    d.    Standees are prohibited in all situations, whether the bus is transporting students or adults.    e.    The maximum number of passengers shall never exceed the rated capacity of the vehicle as it is equipped.    f.    Districts with buses utilizing 3-point lap-shoulder belts shall adopt a board policy regarding use of these lap-shoulder belts by passengers.

    ITEM 9.    Amend rule 281—43.11(285) as follows:

281—43.11(285) Teacher transportation.  PublicA public school teachersteacher who areis transported should be included in the average number transported andto or from the teacher’s school should be charged the pro rata cost by the transporting district.

    ITEM 10.    Amend rule 281—43.12(285), introductory paragraph, as follows:

281—43.12(285) Driver qualifications.  General character and emotional stability are qualities which must be given careful consideration by boards of education in the selection of school bus drivers. Elements that should be considered in setting a character standard areinclude, but are not limited to:

    ITEM 11.    Amend rule 281—43.15(285) as follows:

281—43.15(285) Physical fitness.  Except for insulin-dependent diabetics, an applicant for a school bus driver’s authorization must undergo a biennial physical examination by a certified medical examiner who is listed on the National Registry of Certified Medical Examiners. The applicant must submit annually to the applicant’s employer the signed medical examiner’s certificate (pursuant to Federal Motor Carrier Safety Administration regulations 49 CFR Sections 391.41 to 391.49), indicating, among other requirements, sufficient physical capacity to operate the bus effectively and to render assistance to the passengers in case of illness or injury and freedom from any communicable disease. At the discretion of the chief administrator or designee of the employer or prospective employer, the chief administrator or designee shall evaluate the applicant’s ability in operating a school bus, including all safety equipment, in providing assistance to passengers in evacuation of the school bus, and in performing other duties required of a school bus driver.

    ITEM 12.    Amend rule 281—43.22(321) as follows:

281—43.22(321) Fee collection and distribution of funds.  The department of education, commencing with the biannual school bus inspections for the 2002-2003 school year and each year thereafter, shall assess a feefor semiannual school bus inspections for each school bus or allowable alternative vehicle (pursuant to rule 761—911.7(321)) inspected by the department. The department shall present for payment a fee statement to the owner of each school bus or allowable alternative vehicle inspected.For districts transporting pupils through a private contractor under rule 281—43.3(285), the fee statement shall be presented to the contracting district for payment.The department of education shall submit an annual budget request for an amount equal to 100 percent of the total projected fees to be collected during the next fiscal year, which shall be based on an amount equal to the number of school bus and allowable alternative vehicle inspections completed during the previous school year multiplied by the inspection fee authorized by statute.One component of the annual budget shall be an annual “school bus driver and passenger safety education plan.” The plan shall outline the projects and activities to be included during each year. These projects and activities may include, but not be limited to, curriculum development costs, printing and distribution of safety literature and manuals, purchase of equipment used in conducting school bus safety education programs, and other expenditures deemed appropriate by the department of education.

    ITEM 13.    Amend rule 281—43.23(285) as follows:

281—43.23(285) Application formDriver authorization.  The school bus driver and thelocal board of educationor its designee shall submit an application for the school bus driver’s authorizationfor each of the board’s drivers annually, and upon a form prescribed by the department of education.

    ITEM 14.    Amend subrules 43.25(1) to 43.25(8) as follows:    .(1)   Rescinded IAB 12/15/10, effective 1/19/11Request bids unless the bus is a used or demonstrator bus.    .(2)   Notify dealers of intent to purchase school transportation equipment and request bids.    .(3)   Reserve right to reject all bids.    .(4)   Require all bids to be on comparable equipment which meets all state and federal requirements.    .(5)   Hold an open meeting for dealers to present merits of their equipment.    .(6)   Review bids, tabulate all bids, make a record of action taken.    .(7)   Sign contracts or orders for purchase of school transportation equipment. The purchase agreement must provide that the dealer will deliver equipment which will pass initial state inspection at no further cost to the school and further provide that the school board shall withhold at least $150 until the vehicle passes initial state inspection.    .(8)   Notify the bureau of nutrition programs and school transportation of the state department of education of purchase and date of delivery so that arrangements can be made for the initial school bus inspection. No school bus canshall be put into service until it has passed a pre-use inspection conducted pursuant to Form TR-F-27B, documented, and reported by the local board of education and theor its designee on a form has been provided to the bureau of nutrition programs and school transportationprescribed by the department of education. The initial school bus inspection will be conducted at the earliest possible time convenient to the school and the department of education.

    ITEM 15.    Amend subrule 43.26(1) as follows:    43.26(1)   The board may pay all of the cost of each bus from funds on hand inthe general fundor other funds allowed by statute.

    ITEM 16.    Amend rule 281—43.30(285) as follows:

281—43.30(285) Semiannual inspection.  To facilitate the semiannual inspection program, school and school district officials shall send their buses to inspection centers as scheduled. A sufficient number of drivers or other school personnel shall be available at the inspection to operate the equipment for the inspectors. The fee for each vehicle inspected shall be $20 effective July 1, 2005; $25 effective July 1, 2007; and $28 effective July 1, 2009. Effective July 3, 2013, the fee for each vehicle inspected shall be $40effective July 3, 2013.Effective July 1, 2020, the fee for each vehicle inspected shall be $50.

    ITEM 17.    Amend rule 281—43.31(285) as follows:

281—43.31(285) Maintenance record.  School officials shall cause the chassis of all buses and allowable alternative vehicles, whether publicly or privately owned, to be inspected annually and all necessary repairs made before the vehicle is put into service. The inspection and repairs shall be recorded on a form (TR-F-27A) prescribed by the department of education. The completed form (TR-F-27A) shall be signed by the mechanic and carried in the glove compartment of the bus.

    ITEM 18.    Amend rule 281—43.34(285) as follows:

281—43.34(285) Contract—privately owned buses.  The board of education and a contractor who undertakes to transport school pupils for the board, in privately owned vehicles, shall sign a contract substantially similar to that prescribed by the department of education (Form TR-F-4-497). The contract shall containthat contains, but is not limited to, the following provisions:    43.34(1)   To furnish and operate at the contractor’s own expense a legally approved vehicle of transportation (or a legally approved chassis on which may be mounted a school bus body supplied and maintained by the board of education) to and from the . . . . . . . . . . . . . . . . . school each day beginning on the date set by the board over route as described, . . . . . . . . . . . . . . . . . . . . . . transporting only children attending the school designated by the board of education.    43.34(2)   To comply with all legal and established uniform standards of operation as required by statute or by legally constituted authorities.    43.34(3)   To comply with all uniform standards, established for protection of health and safety for pupils transported.    43.34(4)   To comply with all rules and regulations adopted by the board of education for the protection of the children, or to govern the conduct ofthe driver of bus.    43.34(5)   To keep bus in good mechanical condition and up to standards required by statutes or by legally constituted authorities.    43.34(6)   To take school bus to official inspection when held by state authorities with no additional expense to party of second part.    43.34(7)   To see that the bus is swept and the windows cleaned each day and that registration plates and all lights are cleaned before each trip. Further, that the bus is washed and the floor swept and scrubbed with a good disinfectant each week. In case of an epidemic the entire bus shall be washed with a disinfectant.    43.34(8)   To use only drivers and substitute drivers who have been approved by the board of education and have received a school bus driver’s authorization.    43.34(9)   To furnish the board of education an approved certificate of medical examination for each person who is approved by the board of education to drive the bus.    43.34(10)   To attend a school of instruction for bus drivers as prescribed by the bureau of nutrition programs and school transportation of the department of education. (If the owner does not drive the bus, the regular approved driver of the bus shall attend.).    43.34(11)   To carry insurance on bus and pupils in the coverages and limits as determined by the board of education. Copy of policy to be filed with superintendent of schools.    43.34(12)   To make such reports as may be required by state department of education, area education agency board of education, and superintendent of schools.    43.34(13)   ThatTo use the school bus shall be used only for transporting regularly enrolled students to and from public school and to extracurricular activities approved and designated by the board of education and further to comply with all legal restrictions on use of bus.    43.34(14)   To obtain, if possible, the registrationlicense plate numbers of all carsvehicles violating the school bus passing law, Iowa Code section 321.372, and file information for prosecution.    43.34(15)   TheTo reserve the right of the board of education hereby reserves the right to change routing of the bus and, if additional mileage is required, it shall be atallow for an extra cost not exceeding $. . . . . . . . per additional mile per month. If shortened. . . . . . . . . . . . . . . . . . . . . . . .    43.34(16)   ImmoralTo ensure immoral conduct or the use of alcoholic beverages by the contractor or driver employed by the contractor shall result in appropriate sanctions as provided in Iowa Code section 321.375.    43.34(17)   Contract mayTo allow the contract to be terminated on 90-day notice by either party,as provided by Iowa Code section 285.5(4).    43.34(18)   The contractor agreesAn agreement that, if the contractor desires to terminate the contract, the school bus will be sold to the board of education at its request as provided in Iowa Code section 285.5(1). (This requirement does not apply to a passenger autovehicle used as a school bus.)

    ITEM 19.    Amend rule 281—43.35(285) as follows:

281—43.35(285) Contract—district-owned buses.  The board of education and a private individual undertaking to transport school pupils for the board in school district-owned vehicles shall sign a contract substantially similar to that prescribed by the department of education (Form TR-F-5-497(revised)). The contract shall contain the following provisions:    43.35(1)   To conform to all rules of the board of education in and for the district adopted for the protection of the children and to govern the conduct of the person in charge of the conveyance.    43.35(2)   To make reports as may be required by the state department of education, area education agency, or superintendent of schools.    43.35(3)   To conform to all standards for operation of the school buses as required by statute or by legally constituted authorities.    43.35(4)   That the employee shall be entitled to benefits as outlined in the school board policy for the school district.    43.35(5)   To attend a school of instruction for bus drivers as prescribed by the bureau of nutrition and school transportation of the department of education.    43.35(6)   That the employer can terminate the contract and dismiss the employee for failure to conform to all laws of the state of Iowa and rules promulgated by the Iowa department of education applicable to drivers of school buses.    43.35(7)   That thisthe contract shall not be in force until the driver presents an official school bus driver’s authorization.

    ITEM 20.    Rescind and reserve rule 281—43.36(285).

    ITEM 21.    Amend rule 281—43.37(285) as follows:

281—43.37(285) Railroad crossings.  The driver of any school bus shall bring the bus to a complete stop at allwithin 50 feet, but not less than 15 feet, from railroad crossings, as required in Iowa Code section 321.343, regardless of whether or not there are any pupils in the bus, and regardless of whether or not there is an automatic signal at the crossing. After stopping, the driver shall open the entrance door,shall look and listen for approaching trains, and shall not proceed to cross the tracks until it is safe to do so.

    ITEM 22.    Amend rule 281—43.38(285) as follows:

281—43.38(285) Driver restrictions.      43.38(1)   The driver of a school busvehicle shall not smoke on the busin the vehicle or on any school property.    43.38(2)   The driver shall not permit firearmsor other weapons, nor ammunition, to be carried in the buspassenger compartment of any school vehicle transporting pupils.    43.38(3)   The driver shall not fill the fuel tank while the motor is running or when there are passengers on the busin the vehicle.    43.38(4)   The driver shall ensure that aisles and exits are not blocked.

    ITEM 23.    Amend subrules 43.39(3) to 43.39(5) as follows:    .(3)   All such projects, except an actual emergency operation where time is of the essence, shall have prior approval of the state department of education.    .(4) .(3)   The bus shall be driven by an approved driver holding an appropriate driver’s license and a regular school bus driver’s authorization except that in actual emergency situations, where regularapproved drivers are not available, certain other drivers, including students and teachers, may be used providing the following conditions are metif allowed by local school board policy. The driver shall:    a.    Be approved by the local board of education.    b.    Be at least 18 years of age, be physically and mentally competent, and not possess personal or moral habits which would be detrimental to the best interests of the safety and welfare of the children transported.    .(5)   Rescinded IAB 12/8/04, effective 1/12/05.

    ITEM 24.    Amend rules 281—43.40(285) to 281—43.44(285) as follows:

281—43.40(285) Pupil instruction.  At least twice during each school year,once in the fall and once in the spring, each pupil who is transported in a school vehicle shall be instructed in safe riding practices and participate in emergency evacuation drills.Documentation of these drills shall be maintained locally for five years and made available upon request.

281—43.41(285) Trip inspections.  A pretrip inspection of each school bus shall be performed and recorded prior to each trip. A written report shall be submitted promptly to the superintendent of schools, transportation supervisor, school bus mechanic, or other person charged with the responsibility for the school transportation program, if any defects or deficiencies are discovered that may affect the safety of the vehicle’s operation or result in its mechanical breakdown. A posttrip inspection of the interior of the school bus shall be performed after each trip.    43.41(1)   A pretrip inspection of each school vehicle shall be performed and recorded prior to each trip to determine if any defects or deficiencies exist that may affect the safety of the vehicle’s operation or result in its mechanical breakdown. The pretrip inspection report shall be signed by the driver and submitted promptly to the superintendent of schools, transportation supervisor, school bus mechanic, or other person charged with the responsibility for the school transportation program. Any defects or deficiencies that merit an OOS (out of service) rating pursuant to department of education school bus inspection guidelines must be repaired prior to use of the vehicle. All other defects or deficiencies should be repaired as soon as possible but do not prohibit the use of the vehicle.    43.41(2)   A posttrip inspection of the interior of the school vehicle shall be performed after each trip to ensure no passengers remain.

281—43.42(285) Loading and unloading areas.  Restricted loading and unloading areas shall be established for school buses at, or near schools.

281—43.43(285) Communication equipment.  Each school bus shall have a two-way communications system or cellular telephone capable of emergency communication between the driver of the bus and the school’s base of operations for school transportation.

281—43.44(285) Standards for common carriers.  These standards are intended to apply to any vehicle operated by a common carrier when used exclusively for student transportation to and from school.“Common carrier” refers to a person or entity in the business of transporting goods or people for hire as a public service.    43.44(1) Vehicles.      a.    The vehicles need not be painted yellow and black as required for conventional school buses.    b.    The vehicles shall, while transporting children to and from school, be equipped with temporary signs, located conspicuously on the front and back of the vehicle. The sign on the front shall have the words “School Bus” printed in black letters not less than six inches high, on a background of national school bus glossy yellowNational School Bus Yellow. The sign on the rear shall be at least ten square feet in size and shall be painted national school bus glossy yellowNational School Bus Yellow, and have the words “School Bus” printed in black letters not less than eight inches high. The yellow is to be in accordance with the colorimetric specification of Federal Standard No. 595a, Color 13432; the black matching Federal Standard 595a, Color 17038. Both the six-inch and eight-inch letters shall be Series “D” as specified in the Standard Alphabet—Federal Highway Administration, 1966.The colors shall conform to those described within 281—subrule 44.3(10).    c.    Rescinded, effective 8/11/82.    43.44(2) Drivers.      a.    The driver shall have an appropriate driver’s license issued by the Iowa department of transportation.    b.    The driver shall possess a school bus driver’s authorization issued by the Iowa department of education.    c.    The driver shall receive training in accordance with state requirements for school bus drivers.    43.44(3) Seating.  Each passenger shall have a seat; standees are prohibited. No passenger shall be present in the bed of a pickup when the vehicle is being operated.    a.    Each passenger shall have a comfortable seat.    b.    Standees are prohibited.    43.44(4) Loading and unloading procedures.      a.    VehicleThe vehicle shall pull close enough tothe curb to prevent another vehicle from passing onits right side.    b.    Ifthe vehicle is not equipped with flashing warning lights orand stop arm, or if use of this equipment is prohibited by law, the pupils, on unloading, shall be instructed to remain at the curb untilthe bus has pulled away and it is safe for them to cross the street.    43.44(5) Inspection of vehicles.      a.    Drivers shall be required to perform daily pretrip inspections of their vehicles and todetermine if any defects or deficiencies exist that may affect the safety of the vehicle’s operation or result in its mechanical breakdown. The pretrip inspection report promptly and in writing any defects or deficiencies discovered that may affect the safety of the vehicle’s operation or result in its mechanical breakdown in accordance with rule 281—43.41(285)shall be submitted promptly to the person charged with maintenance of the vehicle.Any defects or deficiencies that merit an OOS (out of service) rating pursuant to department of education school bus inspection guidelines must be repaired prior to use of the vehicle. All other defects or deficiencies should be repaired as soon as possible but do not prohibit the use of the vehicle.    b.    Vehicles shall be inspected semiannually by personnel of the department of education in accordance with the provisions of Iowa Code section 285.8(4).    43.44(6) Other requirements.      a.    Local school officials shall provide the carrier with passenger conduct rules and the driver shall abide by the policies and procedures established by the local district.    b.    The carrier shall make a report to the bureau of nutrition and school transportation of the department of education on any accident involving property damage or personal injury while a vehicle is being used as a school bus. The report shall be made on the Iowa Accident Report Form.    c.    b.    Student instruction for passenger safety shall be the responsibility of the local school district as specified in rule 281—43.40(285).
    [Filed 8/5/19, effective 10/2/19][Published 8/28/19]Editor’s Note: For replacement pages for IAC, see IAC Supplement 8/28/19.
ARC 4637CEducation Department[281]Adopted and Filed

Rule making related to school bus construction standards

    The State Board of Education hereby amends Chapter 44, “School Buses,” Iowa Administrative Code.Legal Authority for Rule Making    This rule making is adopted under the authority provided in Iowa Code section 256.7(5).State or Federal Law Implemented    This rule making implements, in whole or in part, Iowa Code sections 285.8 and 321.373.Purpose and Summary    Chapter 44 outlines the construction standards for school buses used in Iowa. The amendments to Chapter 44 reflect changes to these standards as recommended by the National School Transportation Specifications and Procedures Manual 2015 and the Department of Education’s Chapter 44 Update Group and in requests from the field.    All references to “FMVSS” pertain to Federal Motor Vehicle Safety Standards. This abbreviation is identified in rule 281—44.1(285).Public Comment and Changes to Rule Making    Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on June 5, 2019, as ARC 4479C. A public hearing was held on June 25, 2019, at 10 a.m. in the State Board Room, Second Floor, Grimes State Office Building, Des Moines, Iowa. Two people attended the public hearing. Five comments were received.    The following changes were made to the rule as a result of public comment. One commenter questioned why the rules did not include changes from 2019 Iowa Acts, House File 499, regarding allowing certain vans or pickups to be used to transport students to activities or home in the event of an emergency. In subrule 44.2(5), the word “nine” was changed to “12” in order to reflect the increased capacity for Type III vehicles. One commenter requested that cameras on buses be able to hang down 1½ inches. This change was made to paragraph 44.3(38)“i.” One commenter wanted clarification that the rules regarding seatbelts were for “new” buses only and that old buses would not be required to retrofit seatbelts. This clarification was added to paragraph 44.3(57)“b.”Adoption of Rule Making    This rule making was adopted by the State Board on August 1, 2019.Fiscal Impact    This rule making has no fiscal impact to the State of Iowa. However, certain specifications may result in an increased cost of school buses used in the state. This may, in turn, impact local school transportation costs which are referenced when determining distribution of transportation equity funding under Iowa Code section 257.16C, open enrollment transportation assistance under Iowa Code section 282.18(10)“c,” and nonpublic transportation reimbursement under Iowa Code section 285.1(12).Jobs Impact    After analysis and review of this rule making, no impact on jobs has been found.Waivers    An agencywide rule waiver provision is provided for in 281—Chapter 4.Review by Administrative Rules Review Committee    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).Effective Date    This rule making will become effective on October 2, 2019.    The following rule-making actions are adopted:

    ITEM 1.    Amend rule 281—44.2(285) as follows:

281—44.2(285) School bus—type classifications.  A bus owned, leased, contracted to or operated by a school or school district and regularly used to transport students to and from school or school-related activities, but not including a charter bus or transit bus, meets all applicable FMVSS, and is readily identified by alternately flashing lights, national school bus yellowNational School Bus Yellow (NSBY) paint, and the legend “School Bus.”Schools and school districts in Iowa are prohibited from owning or leasing motor coaches, but may charter them for activities.    44.2(1) Type A.  A Type A school bus is a conversion or bus constructed utilizing a cutaway front-section vehicle with a left side driver’s door. This definition includes two classifications: Type A-1, with a gross vehicle weight rating (GVWR) of 14,500 pounds or less; and Type A-2, with a GVWR greater than 14,500 and less than or equal to 21,500 pounds.    44.2(2) Type B.  A Type B school bus is constructed utilizing a stripped chassis. The entrance door is behind the front wheels. This definition includes two classifications: Type B-1, with a GVWR of 10,000 pounds or less; and Type B-2, with a GVWR greater than 10,000 pounds.    44.2(3) Type C.  A Type C school bus, also known as a conventional school bus, is constructed utilizing a chassis with a hood and front fender assembly. The entrance door is behind the front wheels. This type of school bus also includes the cutaway truck chassis or truck chassis with cab with or without a left side door and with a GVWR greater than 21,500 pounds.    44.2(4) Type D.  A Type D school bus, also known as a rear or front engine transit-style school bus, is constructed utilizing a stripped chassis. The entrance door is ahead of the front wheels.    44.2(5) Type III.  Type III vehicles are not regular school buses but nonetheless are used to transport students in a school-related context and may be marked as a “school bus.” A Type III vehicle is a passenger car (including a minivan, SUV, or station wagon) or van. The difference between a family automobile and an equivalent Type III vehicle is not the vehicle itself, but rather its use: Type III vehicles are used by schools for purposes of pupil transportation. To qualify as a Type III vehicle, the vehicle must carry a maximum of nine12 or fewer people, including the driver, and weigh 10,000 pounds or less.These vehicles will be subject to school bus inspections per Iowa Code and rule requirements.    44.2(6) Specially equipped.  A specially equipped school bus is a school bus designed, equipped, or modified to accommodate students with special needs.    44.2(7) Multifunction school activity bus (MFSAB).  A multifunction school activity bus is a school bus whose purposes do not include transporting students to and from home or school bus stops as defined in 49 CFR 571.3. MFSABs meet all FMVSS for school buses except the traffic control requirements (alternately flashing signal and stop arm). MFSABs are not allowed for use by schools or school districts in the state of Iowa.These vehicles will be subject to school bus inspections per Iowa Code and rule requirements.

    ITEM 2.    Amend rule 281—44.3(285) as follows:

281—44.3(285) School bus body and chassis specifications.      44.3(1) Air cleaner.      a.    The engine air intake cleaning system shall be furnished and properly installed by the chassis manufacturer to meet engine manufacturer’s specifications.    b.    The intake air system for diesel engines shall have an air cleaner restriction indicator properly installed by the chassis manufacturer to meet engine specifications.    44.3(2) Aisle.      a.    All emergency doors shall be accessible by a 12-inch minimum aisle. Aisles shall be unobstructed at all times by any type of barrier, seat, wheelchair, tie-down, or other object(s), with the exception of a flip seat that is installed and occupied at a side emergency door position. The track of a track-seating system is exempt from this requirement. A flip seat in the unoccupied (up) position shall not obstruct the 12-inch minimum aisle to any side emergency door.    b.    The seat backs shall be slanted sufficiently to give aisle clearance of 15 inches at the top of the seat backs.    44.3(3) Alternator.      a.    All alternators shall be a minimum of 130 amperes while maintaining a minimum of 50 amperes while at the manufacturer’s suggested idle speed.    b.    All Type C and Type D buses shall be equipped with a heavy-duty truck or bus-type alternator meeting SAE J180 or incorporating a pad-type mounting.    44.(4) 44.3(3) Axles.      a.    The front and rear axle and suspension systems shall have gross axle weight rating (GAWR) at ground commensurate with the respective front and rear weight loads that will be imposed by the bus.    b.    The front axles on Type B, C and D buses shall be equipped with a wet hub-type lubrication system.    44.(5) 44.3(4) Backup warning alarm.  An automatic audible alarm shall be installed behind the rear axle on every school bus/vehicle and shall comply with the published Backup Alarm Standards (SAE J994B), providing a minimum of 112 dBA. A variable volume feature is not allowed.    44.3(6) Battery compartment.      a.    Battery(ies) shall be furnished by the manufacturer.    b.    Battery(ies) shall be mounted in the body skirt of the vehicle and shall be accessible for convenient servicing from outside the bus. The manufacturer shall securely attach the battery(ies) on a slide-out or swing-out tray with a safety stop to prevent the battery(ies) from dropping to the ground at the outermost extremity of tray travel.    c.    The battery compartment door or cover shall be hinged at the top, bottom or forward side of the door. When hinged at the top, a fastening device shall be provided which will secure the door in an open position. The door or cover over the compartment opening shall completely cover and, as completely as practical, seal the opening and shall be secured by an adequate and conveniently operated latch or other type of fastener to prevent free leakage of the battery contents into the passenger compartment should the vehicle overturn. Battery cables installed by the manufacturer shall meet SAE requirements. Battery cables shall be of sufficient length to allow the battery tray to fully extend and to allow some slack in the cables. In Type A buses, if batteries cannot be installed under the hood, a battery compartment is required.    d.    The top surface area of the inside of the battery compartment (the area likely to come into contact with battery electrical terminals as the result of a blow to, and upward collapse of, the bottom of the battery box in the event of an accident or other event) shall be covered with a rubber matting or other impact-resistant nonconductive material. The matting shall be a minimum of 1/8-inch thick and cover the entire top inside surface of the battery box. The matting shall be securely installed to maintain its position at all times.    e.    The word “BATTERY” in 2-inch black letters shall be placed on the door covering the battery opening.    44.3(7) Battery system.  A 12-volt battery system tested at 0 degrees Fahrenheit shall be provided which meets or exceeds the following capacity ratings:    a.    Gasoline engines (greater than 10,000 pounds GVWR): 150 minutes reserve and 500 cold cranking ampere capacity.    b.    Gasoline engines (10,000 pounds GVWR or less): 125 minutes reserve and 450 cold cranking ampere capacity.    c.    Diesel engines (all): 200 minutes reserve and 1,000 cold cranking ampere capacity, or a cold cranking ampere capacity not less than the engine manufacturer’s minimum requirements, whichever is greater.    44.(8) 44.3(5) Body sizes.  Type A vehicles may be purchased with manufacturer’s recommended seating capacities when the chassis is manufactured with rear dual tires.    44.(9) 44.3(6) Brakes.      a.    Brakes, all, general requirements.    (1)   The chassis brake system shall conform to the provisions of FMVSS No. 105, Hydraulic and Electric Brake Systems, No.106, Brake Hoses, and No. 121, Air Brake Systems, as applicable.All buses shall have either a parking pawl in the transmission or a parking brake interlock that requires the service brake to be applied to allow release of the parking brake.    (2)   The antilock brake system (ABS), provided in accordance with FMVSS No. 105 or No. 121, shall provide wheel speed sensors for each front wheel and for each wheel on at least one rear axle. The system shall provide antilock braking performance for each wheel equipped with sensors (Four Channel System).    (3)   All brake systems shall be designed to permit visual inspection of brake lining wear without removal of any chassis component(s).    (4)   The brake lines, booster-assist lines, and control cables shall be protected from excessive heat, vibration and corrosion and installed in a manner which prevents chafing.    (5)   The parking brake system for either air or hydraulic service brake systems may be of a power-assisted design. The power parking brake actuator should be a device located on the instrument panel within reach of a seated 5th percentile female driver. As an option, the parking brake may be set by placing the automatic transmission shift control mechanism in the “park” position.    (6)   The power-operated parking brake system may be interlocked to the engine key switch. Once the parking brake has been set and the ignition switch turned to the “off” position, the parking brake cannot be released until the key switch is turned back to the “on” position.    b.    Hydraulic brakes, general requirements.Buses using a hydraulic-assist brake shall be equipped with audible and visible warning signals that provide a continuous warning to the driver indicating a loss of fluid flow from the primary source or a failure of the backup pump systemmeet requirements of FMVSS No. 105.    c.    Air brakes, general requirements.    (1)   The air pressure supply system shall include a desiccant-type air dryer installed according to the manufacturer’s recommendations. The air pressure storage tank system may incorporate an automatic drain valve.    (2)   The manufacturer shall provide an accessory outlet for other air-operated systems installed in or on the bus. This outlet shall include a pressure protection valve to prevent loss of air pressure in the service brake reservoir.    (3)   For air brake systems, an air pressure gauge capable of complying with commercial driver’s license (CDL) pretrip inspection requirements shall be provided in the instrument panel.    (4)   All air brake-equipped buses may be equipped with a service brake interlock. If the bus is equipped with a service brake interlock, the parking brake cannot be released until the brake pedal is depressed.    (5)   (4)   Air brake systems shall include a system for anticompounding of the service brakes and parking brakes.    (6)   (5)   Air brakes shall have a warning device that is both visible and audible and that provides warning to the driver whenever the air pressure falls below the level where warnings are required under FMVSS No. 121.    d.    Brakes, all, specific requirements.    (1)   The braking system shall include the service brake, an emergency brake that is part of the service brake system and controlled by the service brake pedal, and a parking brake meeting FMVSS at date of manufacture.    (2)   Buses using air or vacuum in the operation of the brake system shall be equipped with warning signals readily audible and visible to the driver. The signal shall give a continuous warning when the air pressure available in the system for braking is 60 psi (pounds per square inch) or less or the vacuum available in the system for braking is 8 inches of mercury or less. An illuminated gauge shall be provided that will indicate to the driver the air pressure in psi or the inches of mercury available for the operation of the brakes.    (3)   Buses using a hydraulic-assist brake system shall be equipped with warning signals readily audible and visible to the driver. The warning signal shall provide continuous warning in the event of a loss of fluid flow from primary source and in the event of discontinuity in that portion of the vehicle electrical system that supplies power to the backup system.    (4)   (3)   Brake system reservoirs.
  1. Every brake system which employs air or vacuum shall include a reservoir of the following capacity, where applicable, for brake operation: Vacuum-assist brake systems shall have a reservoir used exclusively for brakes that shall adequately ensure a full-stroke application so that loss in vacuum shall not exceed 30 percent with the engine off. Brake systems on gas-powered engines shall include suitable and convenient connections for the installation of a separate vacuum reservoir.
  2. Any brake system with a dry reservoir shall be equipped with a check valve or equivalent device to ensure that, in the event of failure or leakage in its connection to the source of compressed air or vacuum, the stored dry air or vacuum shall not be depleted by the leakage or failure.
  3. Connection for auxiliary accessory reservoir. The brake system shall include a suitable and convenient connection for installation of an auxiliary air or vacuum reservoir by the bus manufacturer.
    (5)   (4)   An air brake system is required on every chassis meeting one or more of the following:
  1. Wheelbase equal to or greater than 274 inches.
  2. Designed seating capacity rating greater than 66 passengers. Designed seating capacity, also known as manufacturer’s seating capacity, is the actual or theoretical passenger capacity of the vehicle if it were constructed with the maximum number of seating positions.
    (6)   (5)   An air brake system shall comply with the following system and component designs:
  1. The system cannot be of wedge design.
  2. The system shall include an air dryer system having design features equal to or exceeding the Bendix Westinghouse Model AD9. The system shall be self-purging and capable of removing oil, dirt, and moisture. The dryer system shall also be equipped with a heater to prevent the freezing of moisture within the system. All plumbing from air compressor to input of air dryer or after-cooler shall provide soft flow bends not producing sumps in the air compressor line having direct entry into the dryer. An automatic moisture ejector or “spitter valve” does not meet the above requirement.
  3. Automatic slack adjusters areA system of automatic adjustment compensating for service brake wear is required to be installed at all wheel positions.
  4. The air compressor shall produce a minimum output of 12.0 cubic feet per minute (CFM).
    (7)   (6)   Vehicles with 10,000 pounds GVWR or less shall be equipped with a hydraulic, dual-braking system of manufacturer’s standard, with power assist.    (8)   (7)   Antilock brake systems for either air or hydraulic brakes shall include control of all axles in compliance with FMVSSNo. 105 orNo. 121.
    44.(10) 44.3(7) Bumper, front.      a.    All school buses shall be equipped with a front bumper painted glossy black, a chrome front bumper, or a front bumper coated with a black corrosion-resistant texturized material.    b.    The front bumper on buses of Type A-2 (with GVWR greater than 14,500 pounds), Type B, Type C, and Type D shall be equivalent in strength and durability to pressed steel channel at least 3/16 inches thick and not less than 8 inches wide (high). The front bumper shall extend beyond the forward-most part of the body, grille, hood and fenders and shall extend to the outer edges of the fenders at the bumper’s top line. Type A buses having a GVWR of 14,500 pounds or less may be equipped with an original equipment manufacturer (OEM)-supplied front bumper. The front bumper shall be of sufficient strength to permit its being pushed by another vehicle on a smooth surface with a 5 degree (8.7 percent) grade, without permanent distortion to the bumper, chassis or body. The contact point on the front bumper is intended to be between the frame rails, with as wide a contact area as possible. If the front bumper is used for lifting, the contact points shall be under the bumper attachments to the frame rail brackets unless the manufacturer specifies different lifting points in the owner’s manual. Contact and lifting pressures should be applied simultaneously at both lifting points.    c.    The front bumper, except breakaway bumper ends, shall be of sufficient strength to permit pushing a vehicle of equal gross vehicle weight, per paragraph 44.3(10)“b,”44.3(7)“b,” without permanent distortion to the bumper, chassis or body.    d.    The bumper shall be designed or reinforced so that it will not deform when the bus is lifted by a chain that is passed under the bumper (or through the bumper if holes are provided for this purpose) and attached to both tow hooks/eyes. For the purpose of meeting this specification, the bus shall be empty and positioned on a level, hard surface and both tow hooks/eyes shall share the load equally.    e.    Tow eyes or hooks are required on Type B, C, and D buses of 14,501 pounds GVWR or greater. Two tow eyes or hooks shall be installed by the bus manufacturer so as not to project beyond the front bumper.    f.    An optional energy-absorbing front bumper may be used, provided its design incorporates a self-restoring, energy-absorbing system of sufficient strength to:    (1)   Push another vehicle of similar GVWR without permanent distortion to the bumper, chassis, or body; and    (2)   Withstand repeated impacts without damage to the bumper, chassis, or body according to the following performance standards:
  1. 7.5 mph fixed-barrier impact (FMVSS cart and barrier test).
  2. 4.0 mph corner impact at 30 degrees (Part 581, CFR Title 49).
  3. 20.0 mph into parked passenger car (Type B, C, and D buses of 18,000 pounds GVWR or more).
The manufacturer of the energy-absorbing bumper system shall provide evidence of conformance to the above standards from an approved test facility capable of performing the above FMVSS tests.
    44.(11) 44.3(8) Bumper, rear.      a.    All school buses shall be equipped with a rear bumper painted glossy blackor coated with a black corrosion-resistant texturized material.    b.    The rear bumper shall be pressed steel channel or equivalent material, at least 3/16 inches thick and shall be a minimum of 8 inches wide (high) on Type A-2 vehicles and a minimum of 9½ inches wide (high) on Type A-1, B, C and D buses. The rear bumper shall be of sufficient strength to permit its being pushed by another vehicle without permanent distortion to the bumper, body, or chassis.    c.    The rear bumper shall be wrapped around the back corners of the bus. It shall extend forward at least 12 inches, measured from the rear-most point of the body at the floor line and shall be flush-mounted to the body side or protected with an end panel.    d.    The rear bumper shall be attached to the chassis frame in such a manner that the bumper may be easily removed. It shall be braced so as to resist deformation of the bumper resulting from a rear or side impact. It shall be designed so as to discourage the hitching of rides.    e.    The bumper shall extend at least 1 inch beyond the rear-most part of body surface measured at the floor line.    f.    Additions or alterations to the rear bumper, including the installation of trailer hitches, are prohibited.    g.    An optional energy-absorbing rear bumper may be used, provided a self-restoring, energy-absorbing bumper system attached to prevent the hitching of rides is of sufficient strength to:    (1)   Permit pushing by another vehicle without permanent distortion to the bumper, chassis, or body; and    (2)   Withstand repeated impacts without damage to the bumper, chassis, or body according to the following FMVSS performance standards:
  1. 2.0 mph fixed barrier impact (FMVSS cart and barrier test).
  2. 4.0 mph corner impact at 30 degrees (Part 581, CFR Title 49).
  3. 5.0 mph center impact (Part 581, CFR Title 49).
The manufacturer of the energy-absorbing system shall provide evidence of conformance to the above standards from an approved test facility capable of performing the above FMVSS tests.
    44.(12) 44.3(9) Certification.  The manufacturer(s) shall, upon request, certify to the Iowa department of education that the manufacturer’s product(s) meets Iowa minimum standards on items not covered by FMVSS certification requirements of 49 CFR Part 567.    44.(13) 44.3(10) Color.      a.    Chassis shall be black. Body cowl, hood, and fenders shall be national school bus yellowNational School Bus Yellow. The flat top surface of the hood may be nonreflective national school bus yellowNational School Bus Yellow; black is not acceptable.    b.    Wheels and rims shall be gray, black, or national school bus yellowNational School Bus Yellow.Aluminum wheels are also allowed.    c.    The grille must be gray, black, or national school bus yellowNational School Bus Yellow. Chrome is not acceptable.    d.    The school bus body shall be painted national school bus yellowNational School Bus Yellow. (See color standard, Appendix B, National School Transportation Specifications and Procedures Manual 2010, available from Missouri Safety Center, Central Missouri State University, Humphreys Suite 201, Warrensburg, Missouri 640932015.)    e.    The body exterior trim shall be glossy black, including the rear bumper, exterior lettering, numbering, body trim, rub rails, lamp hoods (if any), and emergency door arrow. This may also include the entrance door and window sashes. As an alternativeIn addition, the rear bumper may be covered with a black retroreflective material as described in subrule 44.3(52)44.3(51). When the bus number is placed on the front or rear bumper, the number shall be national school bus yellowNational School Bus Yellow.    f.    As an option, the roof of the bus may be painted white extending down to within 6 inches above the drip rails on the sides of the body, except that the vertical portion of the front and rear roof caps shall remain national school bus yellowNational School Bus Yellow.    g.    Commercial advertising is forbidden on the exterior and in the interior of all school buses.    44.(14) 44.3(11) Construction.      a.    The school bus body shall be constructed of materials certified to be durable under normal operating conditions and shall meet all applicable FMVSS at the date of manufacture as certified by the bus body manufacturer.    b.    Construction shall be reasonably dustproof and watertight.    c.    Body joints present in that portion of the Type A school bus body furnished exclusively by the body manufacturer shall conform to the performance requirements of FMVSSNo. 221. This does not include the body joints created when body components are attached to components furnished by the chassis manufacturer.    d.    A flat floor system featuring no wheel wells and no step-up at the rear of the passenger compartment may be used in accordance with the following:    (1)   The inside height of the body shall remain at least 72 inches, when measured in accordance with subrule 44.3(41)44.3(40), when this option is installed.    (2)   If this option utilizes a raised floor that is stepped up behind the driver’s area, the forward edge of the aisle shall have a white or yellow stripe and be labeled “Step Up” visible to passengers upon entering the aisle; and a label “Step Down” shall be visible to passengers as they exit the aisle. Minimum headroom of 72 inches shall be maintained at all times.    (3)   A flat floor design shall provide for the additional option for a track-mounted seating system using button-type (L track) and a wheelchair securement system meeting Iowa specifications but mounting into the track of the track-seating system. Aisle clearances shall be maintained in accordance with these rules.    44.(15) 44.3(12) Crossing control arms.      a.    Type A, B, and C school buses shall be equipped, and Type D buses may be equipped, with a crossing control arm which is mounted on the right side of the front bumper and which shall not open more than 90 degrees. This requirement does not apply to Type D vehicles having transit-style design features.When opened, the crossing control arm shall extend in a line parallel to the body side and aligned with the right front wheel.    b.    The crossing control arm shall incorporate a system of quick-disconnect connectors (electrical, vacuum, or air) at the crossing control arm base unit and shall be easily removable to allow for towing of the bus.    c.    All components of the crossing control arm and all connections shall be weatherproofed.    d.    The crossing control arm shall be constructed of noncorrodible or nonferrous material or treated in accordance with the body sheet metal standard. See subrule 44.3(42)44.3(41).    e.    There shall be no sharp edges or projections that could cause hazard or injury to students.    f.    The crossing control arm shall extend a minimum of 70 inches from the front bumper when in the extended position. This measurement shall be taken from the arm assembly attachment point on the bumper. However, the crossing control arm shall not extend past the ends of the bumper when in the stowed position.    g.    The crossing control arm shall extend simultaneously with the stop arm(s) by means of the stop arm controls.    h.    The crossing control arm system shall be designed to operate in extreme weather conditions, including freezing rain, snow and temperatures below 0 degrees Fahrenheit, without malfunctioning. The crossing control arm itself shall be constructed of a material that will prevent the arm from prematurely extending or from failing to retract due to sustained wind or wind gusts of up to 40 miles per hour.    i.    To ensure that the unit mounts flush and operates properly, the chassis bumper mounting bracket must be designed for the specific model chassis on which it will be mounted.    j.    A single, cycle-interrupt switch with automatic reset shall be installed in the driver’s compartment and shall be accessible to the driver from the driver’s seat.    k.    The assembly may include a device attached to the bumper near the end of the arm to automatically retain the arm while in the stowed position. That device shall not interfere with normal operations of the crossing control arm.    44.(16) 44.3(13) Daytime running lights (DRL).   See subrule 44.3(33)44.3(32).    44.(17) 44.3(14) Defrosters.      a.    Defrosting and defogging equipment shall direct a sufficient flow of heated air onto the interior surfaces of the windshield, the window to the left of the driver, and the glass in the viewing area directly to the right of the driver to eliminate frost, fog and snow.    b.    The defrosting system shall conform to SAE Standard J381.    c.    The defroster and defogging system shall be capable of furnishing heated outside ambient air; however, the part of the system furnishing additional air to the windshield, entrance door and step well may be of the recirculating air type.    d.    Auxiliary fans are required; however, they are not considered defrosting or defogging systems. See also subrule 44.3(80)44.3(78).    e.    Portable heaters shall not be used.    44.(18) 44.3(15) Doors and exits.      a.    Service door.    (1)   The service door shall be heavy-duty power- or manually operated under the control of the driver and shall be designed to afford easy release and prevent accidental opening. When a hand lever is used, no parts shall come together to shear or crush fingers. Manual door controls shall not require more than 25 pounds of force to operate at any point throughout the range of operation. A power-operated door must provide for manual operation in case of power failure.In all instances, the power-operated door control shall be located in the steering wheel or to the right of the driver.    (2)   Theprimary service door shall be located on the right side of the bus opposite the driver and within the driver’s direct view and shall remain closed anytime the vehicle is in motion.    (3)   The service door shall have a minimum horizontal opening of 24 inches and a minimum vertical opening of 68 inches. Type A vehicles shall have a minimum opening of 1,200 square inches.    (4)   The service door shall be of split or jackknife type. (Split door includes any sectioned door which divides and opens inward or outward.) If one section of the split door opens inward and the other opens outward, the front section shall open outward.The entrance door shall be a split-type door and shall open outward.    (5)   Lower as well as upper panels shall be of approved safety glass. The bottom of each lower glass panel shall not be more than 10 inches from the top surface of the bottom step. The top of each upper glass panel shall not be more than 3 inches from the top of the door.    (6)   The upper window panels of the service door shall be of insulated double glass. This standard applies to all vehicles equipped with a service door as described in paragraph 44.3(18)“a.”    (7)   (6)   Vertical closing edges on split or folding entrance doors shall be equipped with flexible material to protect children’s fingers.    (8)   (7)   There shall be no door to the left of the driver on Type B, C or D vehicles. All Type A vehicles may be equipped with the chassis manufacturer’s standard left side (driver’s side) door.    (9)   (8)   All doors shall be equipped with padding at the top edge of each door opening. Padding shall be at least 3 inches wide and 1 inch thick and shall extend horizontally the full width of the door opening.    (10)   Door hinges shall be secured to the body without the use of metal screws.    (11)   (9)   There shall be no grab handle installed on the exterior of the service door.    (12)   (10)   A door-locking mechanism may be installed in accordance with subrule 44.3(79)44.3(77).    (13)   (11)   On power-operated service doors, the emergency release valve, switch or device to release the service door must be placed abovethe service door, to the right side of the driver console, or to the left or right of the service door and be clearly labeled. The emergency release valve, switch or device shall work in the absence of power.    b.    Emergency doors.    (1)   Emergency door(s) and other emergency exits shall comply with the requirements of FMVSSNo. 217 and any of the requirements of these rules that exceed FMVSSNo. 217.    (2)   The upper portion of the emergency door shall be equipped with approved safety glazing, the exposed area of which shall be at least 400 square inches. The lower portion of the rear emergency doors on Type A-2, B, C and D vehicles shall be equipped with a minimum of 350 square inches of approved safety glazing.The exposed area of the upper panel of emergency doors shall be a minimum of 400 square inches of approved safety glazing. If installed, all other glass panels on emergency doors shall be of approved safety glazing.    (3)   There shall be no steps leading to an emergency door.    (4)   The emergency door(s) shall be equipped with padding at the top edge of each door opening. Padding shall be at least 3 inches wide and 1 inch thick and shall extend the full width of the door opening.    (5)   There shall be no obstruction higher than ¼ inch across the bottom of any emergency door opening.Fasteners used within the emergency exit opening shall be free of sharp edges or burrs.    c.    Emergency exit requirements.    (1)   Any installed emergency exit shall comply with the design and performance requirements of FMVSSNo. 217, Bus Emergency Exits and Window Retention and Release, applicable to that type of exit, whether or not that exit is required by FMVSSNo. 217, and shall comply with any of the requirements of these rules that exceed FMVSSNo. 217.    (2)   An emergency exit may include either an emergency door or emergency exit-type windows. Where emergency exit-type windows are used, they shall be installed in pairs, one on each side of the bus. Type A, B, C, and D vehicles shall be equipped with a total number of emergency exits as follows for the designed capacities of vehicles:
  1. 0 to 42 passengers = 1 emergency exit per side and 1 roof hatch.
  2. 43 to 78 passengers = 2 emergency exits per side and 2 roof hatches.
  3. 79 to 90 passengers = 3 emergency exits per side and 2 roof hatches.
These emergency exits are in addition to the rear emergency door or rear pushout window/side emergency door combination required by FMVSSNo. 217. Additional emergency exits installed to meet the capacity-based requirements of FMVSSNo. 217 may be included to comprise the total number of exits specified. All roof hatches shall have design features as specified in subrule 44.3(80)44.3(78).
    (3)   Side and rear emergency doors and each emergency window exit shall be equipped with an audible warning device.    (4)   Roof hatches shall be equipped with an audible warning deviceand shall work appropriately without the wiring becoming disconnected from the switch.    (5)   Rear emergency windows on Type D rear-engine buses shall have a lifting-assistance device that will aid in lifting and holding the rear emergency window open.    (6)   Side emergency windows may be either top-hinged or vertically hinged on the forward side of the window. No side emergency exit window will be located above a stop sign.    (7)   On the inside surface of each school bus, located directly beneath or above all emergency doors and windows, shall be a “DO NOT BLOCK” label in a color that contrasts with the background of the label. The letters on this label shall be at least 1 inch high.
    44.(19) 44.3(16) Drive shaft.  The drive shaft shall be protected by a metal guard or guards around the circumference of the drive shaft to reduce the possibility of its whipping through the floor or dropping to the ground if broken.    44.(20) 44.3(17) Driver’s compartment.      a.    The driver’s seat supplied by the body company shall be a high-back seat with a minimum seat back adjustment of 15 degrees, not requiring the use of tools, and with a head restraint to accommodate a 95th percentile adult male, as defined in FMVSSNo. 208. The driver’s seat shall be secured with nuts, bolts, and washers or flange-headed nuts.    b.    The driver’s seat positioning and range of adjustments shall be designed to accommodate comfortable actuation of the foot control pedals by 95 percent of the male and female adult population.    c.    See also subrule 44.3(56)44.3(55).    d.    A driver’s document compartment or pouch shall be provided. The document compartment or pouch shall measure at least 17 inches × 12 inches × 4 inches. If a document pouch, rather than a covered compartment, is provided, it shall be located on the barrier behind the driver. It shall be constructed of a material of equal durability to that of the covering on the barrier and shall have a lid or cover with a latching device to hold the cover or lid closed.    e.    A manual noise suppression switch shall be required and located in the control panel within easy reach of the driver while seated. The switch shall be labeled. This switch shall be an on/off type that deactivates body equipment that produces noise, including, at least, the AM/FM radio, heaters, air conditioners, fans, and defrosters. This switch shall not deactivate safety systems, such as windshield wipers, lighting systems, or two-way radio communication systems.Mobile data terminals are allowed. Programs loaded on the data terminal shall be specific to school bus operations such as, but not limited to, passenger accountability, routing, navigation, emergency notification, tracking, messaging, and equipment monitoring.    (1)   The data terminal shall be mounted within the driver’s compartment in a location which allows the driver to see the data terminal display screen at a glance but shall not obstruct the driver’s view in any direction when the driver is seated in a normal driving position. This would include, but not be limited to, impeding the view of the road, mirrors, highway signs, signals, other instruments, entrance door, and passengers. The data terminal display screen and audio turn-by-turn instructions may remain active while the bus is in motion.    (2)   Overhead mounting of the data terminal is not allowed. The device shall not impede space within the aisle, nor shall it be mounted in such a way as to be a snagging hazard in the student loading area of the service door.    (3)   The data terminal shall be securely mounted to the vehicle when in use in such a way as to minimize sharp edges. The device may be removed when not in use.    (4)   The data terminal shall not be connected to the passenger compartment sound system.    (5)   Distractive manipulation of a data terminal is prohibited while the school bus is being driven. For the purposes of this subparagraph, “driven” means operating a school bus, with the motor running, including while temporarily stationary because of traffic, a traffic control device, or other momentary delays such as picking up or discharging students. “Driven” does not include operating a school bus, with or without the motor running, when the school bus is legally stopped or parked upon the highway for a prolonged period of time.    f.    Commercially produced pedal blocks are allowed.    44.(21) 44.3(18) Electrical system.  See subrule 44.3(85).    a.    Battery.    (1)   The storage batteries shall have a minimum cold cranking capacity rating (cold cranking amps) equal to the cranking current required for 30 seconds at 0 degrees Fahrenheit and a minimum reserve capacity rating of 120 minutes at 25 amps. Higher capacities may be required, depending upon optional equipment and local environmental conditions.    (2)   The manufacturer shall securely attach the battery on a slide-out or swing-out tray in a closed, vented compartment in the body skirt or chassis frame so that the battery is accessible for convenient servicing from the outside. When in the stored position, the tray shall be retained by a securing mechanism capable of holding the tray (with battery[ies]) in position when subjected to a 5g load from any direction. The battery compartment door or cover, if separate from the tray, shall be hinged at the front or top. It shall be secured by a positive operated latching system or other type fastener. The door may be an integral part of the battery slide tray. The door or cover must fit tightly to the body and not present sharp edges or snagging points. Battery cables shall meet Society of Automotive Engineers (SAE) requirements. Battery cables shall be of sufficient length to allow the battery tray to fully extend. Any chassis frame-mounted batteries shall be relocated to a battery compartment on Type A buses.     (3)   All batteries are to be secured in a sliding tray except that on van conversion or cutaway front-section chassis, batteries may be secured in accordance with the manufacturer’s standard configuration. In these cases, the final location of the battery and the appropriate cable lengths shall be agreed upon mutually by the chassis and body manufacturers. However, in all cases, the battery cable provided with the chassis shall have sufficient length to allow some slack and shall be of sufficient gauge to carry the required amperage.    (4)   The top surface area of the inside of the battery compartment (the area likely to come into contact with battery electrical terminals as the result of a blow to, and upward collapse of, the bottom of the battery box in the event of an accident or other event) shall be covered with a rubber matting or other impact-resistant nonconductive material. The matting shall be a minimum of ⅛ inch thick and cover the entire top inside surface of the battery box. The matting shall be securely installed to maintain its position at all times.    (5)   Buses may be equipped with a battery shut-off switch. The switch is to be placed in a location not readily accessible to the driver or passengers.    b.    Alternator.    (1)   All Type A and Type B buses with a GVWR of 15,000 pounds or less shall have a minimum 130-amp alternator. Buses equipped with an electrically powered wheelchair lift, air conditioning, or both shall be equipped with the highest rated capacity available from the chassis OEM.    (2)   All buses over 15,000 pounds GVWR shall be equipped with a heavy-duty truck- or bus-type alternator that has a minimum output rating of 200 amps or higher and that produces a minimum current output of 50 percent of the rating at engine idle speed.    (3)   Buses other than those described in subparagraph 44.3(18)“b”(1) equipped with an electrically powered wheelchair lift, air conditioning, or both shall have a minimum alternator output of 240 amps and may be equipped with a device that advances the engine idle speed when the voltage drops to, or below, a pre-set level.    (4)   A belt-driven alternator shall be capable of handling the rated capacity of the alternator with no detrimental effect on any other driven components. (For estimating required alternator capacity, see School Bus Manufacturers Technical Council’s publication “School Bus Technical Reference,” available at www.nasdpts.org.)    (5)   A direct/gear-drive alternator is permissible in lieu of a belt-driven alternator.    c.    Electrical components.Materials in electrical components shall contain no mercury.    d.    Wiring, chassis.    (1)   All wiring shall conform to current applicable recommended practices of the Society of Automotive Engineers (SAE). All wiring shall use color and at least one other method for identification. The other method shall be either a number code or name code, and each chassis shall be delivered with a wiring diagram that illustrates the wiring of the chassis.    (2)   The chassis manufacturer of an incomplete vehicle shall install a readily accessible terminal strip or connector on the body side of the cowl or in an accessible location in the engine compartment of vehicles designed without a cowl. The strip or connector shall contain the following terminals for the body connections:    (3)   An appropriate identifying diagram (color plus a name or number code) for all chassis electrical circuits shall be provided to the body manufacturer for distribution to the end user.    (4)   Wiring for the headlamp system must be separate from the electronic controlled body solenoid/module.    e.    Wiring, body.    (1)   All wiring shall conform to current applicable SAE recommended practices.    (2)   All wiring shall have an amperage capacity exceeding the design load by at least 25 percent. All wiring splices are to be accessible and noted as splices on the wiring diagram.    (3)   A body wiring diagram, sized to be easily read, shall be furnished with each bus body or affixed to an area convenient to the electrical accessory control panel.    (4)   The body power wire shall be attached to a special terminal on the chassis.    (5)   Each wire passing through metal openings shall be protected by a grommet.    (6)   Wires not enclosed within the body shall be fastened securely at intervals of not more than 18 inches. All joints shall be soldered or joined by equally effective connectors, which shall be water-resistant and corrosion-resistant.    (7)   Wiring shall be arranged in circuits, as required, with each circuit protected by a fuse breaker or electronic protection device. A system of color- and number-coding shall be used and an appropriate identifying diagram shall be provided to the end user, along with the wiring diagram provided by the chassis manufacturer. The wiring diagrams shall be specific to the bus model supplied and shall include any changes to wiring made by the body manufacturer. Chassis wiring diagrams shall be supplied to the end user. The following body interconnecting circuits shall be color-coded, as noted:FUNCTIONCOLORLeft Rear Directional LampYellowRight Rear Directional LampDark GreenStop LampsRedBack-Up LampsBlueTail LampsBrownGroundWhiteIgnition Feed, Primary FeedBlackThe color of the cables shall correspond to SAE J1128, Low-Tension Primary Cable.    (8)   Wiring shall be arranged in at least six regular circuits, as follows:    1.   Head, tail, stop (brake), clearance and instrument panel lamps;    2.   Step well lamps, which shall be actuated when the entrance door is open;    3.   Dome lamps;    4.   Ignition and emergency door signal;    5.   Turn signal lamps; and    6.   Alternately flashing signal lamps.    (9)   Any of the above combination circuits may be subdivided into additional independent circuits.    (10)   Heaters and defrosters shall be wired on an independent circuit.    (11)   Whenever possible, all other electrical functions (such as sanders and electric-type windshield wipers) shall be provided with independent and properly protected circuits.    (12)   Each body circuit shall be coded by number or letter on a diagram of circuits and shall be attached to the body in a readily accessible location.    (13)   Buses may be equipped with a 12-volt power port in the driver’s area.    (14)   There shall be a manual noise suppression switch installed in the control panel. The switch shall be labeled and alternately colored. This switch shall be an on/off type that deactivates body equipment that produces noise, including at least the AM/FM radio, heaters, air conditioners, fans and defrosters. This switch shall not deactivate safety systems, such as windshield wipers or lighting systems.    (15)   The entire electrical system of the body shall be designed for the same voltage as the chassis on which the body is mounted.    44.(22) 44.3(19) Emergency equipment.      a.    All Type A, B, C, and D school buses shall be equipped with the following emergency equipmentmounted in the driver’s compartment: first-aidfirst aid kit, fire extinguisher, webbing cutter,and body fluid cleanup kit, and triangular warning devices.Triangular warning devices are required in each vehicle and may be mounted in the driver’s compartment or behind the rear seat.    b.    All emergency equipment shall be securely mounted so that, in the event the bus is overturned, this equipment is held in place. Emergency equipment, with the exception of the webbing cutter mounted in a location accessible to the driver, may be mounted in an enclosed compartment provided that the compartment is labeled in not less than 1-inch letters, stating the piece(s) of equipment contained therein.    c.    Fire extinguishers shall meet the following requirements:    (1)   The bus shall be equipped with at least one five-pound5-pound capacity, UL-approved, pressurized dry chemical fire extinguisher complete with hose. The extinguisher shall be located in the driver’s compartment readily accessible to the driver and passengers and shall be securely mounted in a heavy-duty automotive bracket so as to prevent accidental release in case of a crash or in the event the bus overturns.    (2)   A calibrated or marked gauge shall be mounted on the extinguisher to indicate the amount of pressure in the extinguisher and shall be easily read without moving the extinguisher from its mounted position. Plastic discharge heads and related parts are not acceptable.    (3)   The fire extinguisher shall have a rating of 2A-10BC or greater. The operating mechanism shall be sealed with a type of seal which will not interfere with the use of the fire extinguisher.    (4)   All fire extinguishers shall be inspected and maintained in accordance with the National Fire Protection Association requirements.    (5)   Each extinguisher shall have a tag or label securely attached that indicates the month and year the extinguisher received its last maintenance and the identity of the person performing the service.    d.    First-aidFirst aid kit.    (1)   The bus shall have a removable moistureproof and dustproof first-aidfirst aid kit in an accessible place in the driver’s compartment. It shall be mounted and secured, and identified as a first-aidfirst aid kit. The location for the first-aidfirst aid kit shall be marked.    (2)   Type III vehicles used as school buses shall be equipped with a ten-unit first-aidfirst aid kit containing the following items:1 1-inch adhesive compress.1 2-inch bandage compress.1 4-inch bandage compress.1 3-inch × 3-inch plain gauze pad.1 gauze roller bandage (4-inch × 5 yards).1 plain absorbent gauze compress (2 piece, 18-inch × 36-inch).1 plain absorbent gauze compress (24-inch × 72-inch).2 triangular bandages.1 wire splint (instant splints may be substituted).    (3)   A first-aidfirst aid kit meeting the national standards (National Standards First-Aid Kit) (per NCST – National Congress on School Transportation Specifications and Procedures 2010Manual 2015first-aidfirst aid kit) and containing the following items is required on all Type A, B, C and D school buses:2 1-inch × 2½-yard adhesive tape rolls.24 3-inch × 3-inch sterile gauze pads.100 ¾-inch × 3-inch adhesive bandages.8 2-inch bandage compresses.10 3-inch bandage compresses.2 2-inch × 6-foot sterile gauze roller bandages.2 39-inch × 35-inch × 54-inch nonsterile triangular bandages with two safety pins.3 36-inch × 36-inch sterile gauze pads.3 sterile eye pads.1 pair medical examination gloves.1 mouth-to-mouth airway.    e.    Body fluid cleanup kit. Each bus shall be equipped with a disposable, removable, and moistureproof body fluid cleanup kit in a disposable container which includes the following items:     (1)   An EPA-registered liquid germicide (tuberculocidal) disinfectant;    (2)   A fully disposable wiping cloth;    (3)   A water-resistant spatula;    (4)   Step-by-step directions;    (5)   Absorbent material with odor counteractant;    (6)   Two pairs of gloves (latex);    (7)   One package towelettes;    (8)   A discard bag (nonlabeled paper bag with a plastic liner and a twist tie). This bag shall be approximately 4 inches × 6 inches × 14 inches and shall be of a nonsafety color (i.e., the bag shall not be red, orange, or yellow). The kit shall be mounted by a method that will retain the kit in place during normal school bus operation and shall be removable without the use of tools. The kit container shall be sealed with a breakable, nonreusable seal and must be accessible to the driver.    f.    Triangular warning devices. Each school bus shall contain at least three reflectorized triangle road warning devices mountedeither in an accessible placethe driver’s compartment or behind the rear seat. These devices must meet requirements in FMVSSNo. 125.    g.    Each bus shall be equipped with a durable webbing cutter having a full-width handgrip and a protected, replaceable or noncorrodible blade. This device shall be mounted in an easily detachable manner and in a location accessible to the seated driver.    h.    Axes are not allowed.    44.(23) 44.3(20) Exhaust system.      a.    The exhaust pipe, muffler and tailpipe shall be outside the bus body compartment and attached to the chassis so as not to damage any other chassis component.    b.    The tailpipe shall be constructed of a corrosion-resistant tubing material at least equal in strength and durability to 16-gauge steel tubing.    c.    Chassis manufacturers shall furnish an exhaust system with tailpipe of sufficient length to extend at least 5 inches beyond the end of the chassis frame to the vertical line of the rear end of the body, but not beyond the rear bumper. The exhaust may exit at the left side or rear of the bus body provided that the exit is no more than 18 inches forward of the front edge of the rear wheelhouse opening. If designed to exit to the left side of the bus, the tailpipe shall extend at least 48.5 inches (51.5 inches if the body is to be 102 inches wide) outboard from the chassis centerline. Final positioning shall result in the exhaust system’s extending to, but not beyond, the body limits on the left side of the bus.The tailpipe may be flush with, or shall not extend more than 2 inches beyond, the perimeter of the body for side-exit pipe or the bumper for rear-exit pipe. The exhaust system shall be designed such that exhaust gas will not be trapped under the body of the bus.    d.    On Type A-1 chassis greater than 15,000 pounds GVWR, Type C and Type D vehicles, the tailpipe shall not exit beneath a fuel fill or emergency door exit.The tailpipe shall exit to the left or right of the emergency exit door in the rear of the vehicle or to the left side of the bus in front of or behind the rear drive axle or the tailpipe may extend through the bumper. The tailpipe exit location on all Type A-1 or B-1 buses may be in accordance with the manufacturer’s standards. The tailpipe shall not exit beneath any fuel filler location, emergency door or lift door.    e.    On Type A-2 and Type B chassis of 15,000 pounds GVWR or less, the tailpipe may be furnished with the manufacturer’s standard tailpipe configuration.    f.    e.    The exhaust system on a chassis shall be adequately insulated from the fuel system.    g.    f.    The muffler shall be constructed of corrosion-resistant material.    h.    g.    The exhaust system on vehicles equipped with a power lift unit may be routed to the left of the right frame rail to allow for the installation of a power lift unit on the right side of the vehicle.    i.    The tailpipe shall not exit beneath the fuel fill, lift door or emergency door.    h.    The design of the aftertreatment systems shall not allow active (non-manual) regeneration of the particulate filter during the loading and unloading of passengers. Manual regeneration systems will be designed such that unintentional operation will not occur.    i.    For aftertreatment systems that require diesel exhaust fluid (DEF) to meet federally mandated emissions:    (1)   The composition of diesel exhaust fluid (DEF) must comply with International Standard ISO 22241-1. Refer to engine manufacturer for any additional DEF requirements.    (2)   The DEF supply tank shall be sized to meet a minimum ratio of 3 diesel fills to 1 DEF fill.    44.(24) 44.3(21) Fenders, front and hood.  This subrule does not apply to Type A or D vehicles.    a.    The total spread of outer edges of front fenders, measured at the fender line, shall exceed the total spread of front tires when the front wheels are in the straight-ahead position.    b.    Front fenders shall be properly braced and free from any body attachmentshall not require attachment to any part of the body.    c.    Chassis sheet metal shall not extend beyond the rear face of the cowl.    d.    Front fenders and hood may be of manufacturer’s standard material and construction.    e.    The hood shall not require more than 20 pounds of force to open and shall include design features to secure the hood in an open position.    44.3(22) Fire suppression system.   An automatic fire suppression system may be installed. Fire suppression system nozzles shall be located in the engine compartment, under the bus, in the electrical panel or under the dash, but they shall not be located in the passenger compartment. The system must include a lamp or buzzer to alert the driver that the system has been activated.    44.(25) 44.3(23) Floor insulation and covering.      a.    The floor structure of Type A, B, C and D school buses shall be covered with an insulating layer of either a 5-ply minimum 5/8-inch-thick plywood, or a material of equal or greater strength and insulation R-value, having properties equal to or exceeding exterior-type softwood plywood, C-D grade as specified in standards issued by the United States Department of Commerce. All edges shall be sealed.    b.    Type A buses may be equipped with a minimum ½-inch-thick plywood meeting the above requirements.    c.    The floor in the under-seat area of Type B, C, and D buses, including tops of wheelhousings, driver’s compartment and toeboard, shall be covered with an elastomer floor covering having a minimum overall thickness of 1/8.125 inch and a calculated burn rate of 0.1mm per minute or less using the test methods, procedures and formulas listed in FMVSSNo. 302. The floor covering of the driver’s area and toeboard area on all Type A buses may be the manufacturer’s standard flooring and floor covering.    d.    The floor covering inthe aisles of all buses shall be of a ribbed or other raised-pattern elastomer, having a coefficient of friction of 0.85, using ASTM 1894 or 0.65 using ASTM 2047, andhave a calculated burn rate of 0.1mm per minute or less using the test methods, procedures and formulas listed in FMVSSNo. 302. Minimum overall thickness shall be 3/16.187 inch measured from tops of ribs.    e.    Floor covering must be permanently bonded to the floor and must not crack when subjected to sudden changes in temperature. Bonding or adhesive material shall be waterproof and shall be of a type recommended by the manufacturer of the floor-covering material. All seams must be sealed with waterproof sealer.One-piece floor covering is allowed.    f.    On Type B, C and D buses, access to the fuel tank sending unit shall be provided. The access opening shall be large enough and positioned to allow easy removal of the sending unit. Any access opening in the body shall be capable of being sealed with a screw-down plate from within the body. When in place, the screw-down plate shall seal out dust, moisture and exhaust fumes. This plate shall not be installed under flooring material.    g.    Cove molding or watertight sealant shall be used along the sidewalls and rear corners. All joints or seams in the floor covering shall be covered with nonferrous metal stripping or stripping constructed of material exhibiting equal durability and sealing qualities.    44.(26) 44.3(24) Frame.      a.    The frame or equivalent shall have design and strength characteristics corresponding at least to standard practice for trucks of the same general load characteristics which are used for highway service.    b.    Any secondary manufacturer that modifies the original chassis frame shall guarantee the performance of workmanship and materials resulting from such modification.    c.    Extensions of frame lengths are permissible only when alterations are behind the rear hanger of the rear spring or in front of the front hanger of front spring and shall not be for the purpose of extending the wheelbase.    d.    Holes in top or bottom flanges or side units of the frame and welding to the frame shall not be permitted except as provided or accepted by the chassis manufacturer.    e.    Frame lengths shall be established in accordance with the design criteria for the complete vehicle.    44.(27) 44.3(25) Fuel system.      a.    All fuel tanks, including auxiliary fuel tanks, fuel tank filler pipes, and fuel tank connections shall conform to all applicable FMVSS at the date of manufacture and shall be installed in accordance with SBMTC School Bus Design Objectives, August 1996 edition.    b.    a.    On all Type B, C, and D vehicles, theThe fuel tanksystem shall comply with FMVSSNo. 301, Fuel System Integrity, and with Federal Motor Carrier Safety Regulations, Section 393.67, paragraphs (c) through (f), with reference to material and method of construction, leak testing and certification. On Type A-1 and A-2 vehicles, the fuel tank may be of the manufacturer’s standard construction.    c.    b.    On chassis with a wheelbase greater than 170 inches, at least one fuel tank of 60-gallon capacity shall be provided and installed by the manufacturer. Chassis with a wheelbase of 170 inches or less shall be equipped with at least one fuel tank of 30-gallon25-gallon minimum capacity, as provided and installed by the manufacturer.    d.    c.    The fuel tank(s) may be mounted between the chassis frame rails or outboard of the frame rails on either the left or right side of the vehicle by the manufacturer. Tanks shall be mounted directly to the chassis frame, filled, and vented outside the body, in a location where accidental fuel spillage will not drip or drain on any part of the exhaust system.    e.    d.    Fuel filtration shall be accomplished by means of the following:    (1)   Gasoline-powered systems—one in-line fuel filter shall be installed between the fuel tank and the engine.    (2)   Diesel-powered systems—one engine-mounted fuel filter with water/fuel separator shall be supplied and installed by the engine manufacturer.    f.    e.    The actual draw capacity of each fuel tank shall be 83 percent of the tank capacity.    g.    Unless specific agreement has been made between the body and chassis manufacturers, fuel tanks and filler spouts shall not be located in spaces restricted by SBMTC School Bus Design Objectives, August 1996 edition.    44.(28) 44.3(26) Fuel system, alternative fuels.  An alternative fuel is defined as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), electricity, hydrogen, methanol, ethanol, clean diesel, biodiesel, soydiesel, reformulated gasoline, or any type of hybrid system. Vehicles that operate on an alternative fuel shall meet the following requirements:    a.    Chassis shall meet all standards of this rule.    b.    Chassis shall meet all applicable FMVSS standards including, but not limited to, the fuel system integrity standards of FMVSSNo. 301 or FMVSSNo. 303 and FMVSSNo. 304.    c.    Original equipment manufacturers (OEMs) and conversion systems using compressed natural gas (CNG) shall comply with NFPA Standard 52, “Compressed Natural Gas Vehicular Fuel Systems,” in effect at the time of installation. Fuel systems using liquefied petroleum gas (LPG) shall comply with the NFPA Standard 58, “Liquefied Petroleum Gases Engine Fuel Systems,” in effect at the time of installation.    d.    All alternative fuel buses shall travel a loaded range of not less than 200 miles, except those powered by electricity, which shall travel not less than 80 miles.    e.    Liquefied natural gas (LNG)-powered buses shall comply with NFPA Standard 57, “Liquefied Natural Gas Vehicular-Fueled Systems,” and be equipped with an interior/exterior gas detection system. All natural gas-powered buses shall be equipped with a fire detection and suppression system.    f.    All materials and assemblies used to transfer or store alternative fuels shall be installed outside the passenger/driver compartment.    g.    The total weight shall not exceed the GVWR when loaded to rated capacity.    h.    The manufacturer supplying the alternative fuel equipment must provide the owner and operator with adequate training and certification in fueling procedures, scheduled maintenance, troubleshooting, and repair of alternative fuel equipment.Overflow protection device (OPD) testing must be done yearly by a tester trained in this procedure and whose training has been documented. Documentation of the annual OPD valve test shall be a label or identification tag affixed to the step well of the bus, signed and dated by the test person with permanent marker. The label shall indicate the expiration date of the successful test.    i.    All fueling equipment shall be designed specifically for fueling motor vehicles and shall be certified by the manufacturer as meeting all applicable federal, state and industry standards.    j.    All on-board fuel supply containers shall meet all appropriate requirements of the ASME code, the DOT regulations, or applicable FMVSS and NFPA standards.    k.    All fuel supply containers shall be securely mounted to withstand a static force of eight times their weight in any direction.    l.    All safety devices that may discharge to the atmosphere shall be vented to the outside of the vehicle. The discharge line from the safety relief valve on all school buses shall be located in a manner appropriate to the characteristics of the alternative fuel. Discharge lines shall not pass through the passenger compartment. Discharge lines shall be kept clear with flapper-valve or other device which will allow low-pressure discharge but prevent clogging by foreign matter or insects.    m.    A positive, quick-acting (¼ turn), shut-off control valve shall be installed in the gaseous fuel supply lines as close to the fuel supply containers as possible. The controls for this valve shall be placed in a location easily operable from the exterior of the vehicle. The location of the valve control shall be clearly marked on the exterior surface of the bus.    n.    A grounding system shall be required for grounding of the fuel system during maintenance-related venting.    o.    Automatic engine shut-down systems are not permissible.    p.    Storage batteries for hybrid power systems shall be protected from crash impacts and shall be encased in a nonconductive, acid-resistant compartment. This compartment must be well-ventilated to preclude the possibility of hydrogen gas buildup.    44.(29) 44.3(27) Fuel system, fuel fill opening and cover.  Where an opening in the school bus body skirt is needed for access to the fuel fill cap, the opening shall be large enough to permit filling the fuel tank without the need for special fuel nozzle adapters, a funnel, or other device. The opening shall be equipped with a forward hinged cover held closed by a spring or other conveniently operated device. The cover may be of a lockable design. Type A buses are exempt from the requirement of a cover.    44.(30) 44.3(28) Governor.  An electronic engine speed limiter shall be provided and set to limit engine speed, not to exceed the maximum revolutions per minute as recommended by the engine manufacturer.    44.3(29) Handrails.  At least one handrail shall be installed. The handrail shall be a minimum of 1 inch in diameter and be constructed from corrosion-resistant material(s). The handrail(s) shall assist passengers during entry or exit and shall be designed to prevent entanglement, as evidenced by the passing of the National Highway Traffic Safety Administration (NHTSA) string and nut test.    44.(31) 44.3(30) Heating and air conditioning.      a.    EachThe heater shall be hot-water or combustion type, electric heating element, or heat pump.    b.    If only one heater is used, it shall be a fresh-air or combination fresh-air and recirculation type.    c.    If more than one heater is used, additional heaters may be recirculating air type.    d.    The heating system shall be capable of maintaining bus interior temperatures as specified in SAE test procedure J2233.    e.    Auxiliary fuel-fired heating systems are permitted, provided that they comply with the following:    (1)   The auxiliary heating system shall utilize the same type of fuel as specified for the vehicle engine.    (2)   Heater(s) may be direct hot air or connected to the engine’s coolant system.    (3)   An auxiliary heating system, when connected to the engine’s coolant system, may be used to preheat the engine coolant or preheat and add supplementary heat to the bus’s heating system.    (4)   Auxiliary heating systems must be installed pursuant to the manufacturer’s recommendations and shall not direct exhaust in a manner that will endanger bus passengers.    (5)   Auxiliary heating systems which operate on diesel fuel shall be capable of operating on #1, #2 or blended diesel fuel without the need for system adjustment.    (6)   The auxiliary heating system shall be low voltage.    (7)   Auxiliary heating systems shall comply with all applicable FMVSS including FMVSSNo. 301 as well as SAE test procedures.    f.    Heater hoses shall be adequately supported to guard against excessive wear due to vibration. The hoses shall not dangle or rub against the chassis or any sharp edges and shall not interfere with or restrict the operation of any engine function. Heater hoses shall conform to SAE Standard J20c, Coolant System Hoses. Heater lines, cores, and elements on the interior of the bus shall be shielded to prevent scaldingor burning of the driver or passengers.    g.    Each hot water system installed by a body manufacturer shall include one shut-off valve in the pressure line and one shut-off valve in the return line with both valves at the engine in an accessible location, except that on all Type A and B buses, the valves may be installed in another accessible location.    h.    Each hot water heating system shall be equipped with a device that is installed in the hot water pressure line that regulates the water flow to all heaters and that is located for convenient operation by the driver while seated.    i.    All combustion heaters shall be in compliance with current Federal Motor Carrier Safety Regulations.    j.    Accessible bleeder valves shall be installed in an appropriate place in the return lines of body manufacturer-installed heaters to remove air from the heater lines.    k.    Access panels shall be provided to make heater motors, cores,elements, and fans readily accessible for service. An outside access panel may be provided for the driver’s heater.    l.    Air-conditioning systems may be installed in accordance with the following:    (1)   Evaporator cases, lines and ducting (as equipped) shall be designed so that all condensation is effectively drained to the exterior of the bus below floor level under all conditions of vehicle movement without leakage on any interior portion of the bus.    (2)   Any evaporator or ducting system shall be designed and installed so as to be free of injury-producing projections or sharp edges. Installation shall not reduce compliance with any FMVSS applicable to the school bus. Ductwork shall be installed so that exposed edges face the front of the bus and do not present sharp edges.    (3)   Any evaporators used must be copper-cored (aluminum or copper fins acceptable), except that the front evaporator, if provided by a Type A chassis manufacturer, may be aluminum-cored.    (4)   Air intake for any evaporator assembly(ies) except for the front evaporator of a Type A bus shall be equipped with replaceable air filter(s) accessible without disassembly of the evaporator case.    (5)   On buses equipped for the transportation of persons with disabilities, the evaporator and ducting shall be placed high enough so that they will not obstruct existing or potential occupant securement shoulder strap upper attachment points. This clearance shall be provided along the entire length of the passenger area on both sides of the bus interior to allow for potential retrofitting of new wheelchair positions and occupant securement devices throughout the bus.    (6)   The total air-conditioning system shall be warranted, including parts and labor, for at least two years and shall include, but not be limited to, compressor-mounting bracketry and hardware and any belts which, directly or indirectly, drive the compressor(s). Air-conditioning compressor applications must be approved in writing by the chassis engine manufacturer, stating that the installations will not void or reduce the engine manufacturer’s warranty or extended service coverage liabilities in any way.    (7)   All components requiring periodic servicing must be readily accessible for servicing.    (8)   Parts and service manuals shall be provided for the entire system including, but not limited to, compressor(s), wiring (includes wiring diagram), evaporators, condensers, controls, hoses and lines.    (9)   Electrical requirements for the air-conditioning system shall be provided to the customer prior to vehicle purchase or, in the case of an after-purchase installation, prior to installing the air-conditioning system to ensure that adequate electrical demands imposed by the air-conditioning system are capable of being met.    (10)   The installed air-conditioning system should cool the interior of the bus down to at least 80 degrees Fahrenheit, measured at a minimum of three points, located 4 feet above the floor at the longitudinal centerline of the bus. The three points shall be: near the driver’s location; at the midpoint of the body; and 2 feet forward of the emergency door, or for Type D rear engine buses, 2 feet forward of the end of the aisle. Test conditions will be those as outlined in the National School Transportation Specifications and Procedures Manual 2010, Missouri Safety Center, Central Missouri State University, Humphreys Suite 201, Warrensburg, Missouri 640932015.    44.(32) 44.3(31) Heating system, provisions for.      a.    The chassis engine shall have plugged openings for the purpose of supplying hot water for the bus heating system. The openings shall be suitable for attaching ¾-inch or metric equivalent pipe thread/hose connector.    b.    a.    The engine shall be capable of supplying watercoolant having a temperature of at least 170 degrees Fahrenheit at athe engine coolant thermostat opening. The coolant flow rate ofshall be 50 pounds per minute at the return end of 30 feet of one-inch inside-diameter automotive hot water heater hose. Engine temperature performance shall be measured in accordance with the School Bus Manufacturer’s Technical Council Standard Number 001—Procedures for Testing and Rating Automotive Bus Hot Water Heating and Ventilating Equipment, July 1996.(See SBMTC-001, Standard Code for Testing and Rating Automotive Bus Hot Water Heating and Ventilating Equipment, of the School Bus Manufacturers Technical Council (SBMTC).)    c.    b.    For Type A vehicles with GVWR of 10,000 pounds or less, the chassis manufacturer shall provide a fresh-air front heater and defroster of recirculating hot water type. See also subrules 44.3(17)44.3(14) and 44.3(31)44.3(30).    44.(33) 44.3(32) Headlamps.      a.    Buses shall be equipped with a minimum of two headlamps meeting FMVSSNo. 108 with circuit protection.    b.    The headlamp switch shall be of adequate ampere capacity to carry the load of the clearance and identification lamps in addition to the headlamps and tail lamps since these will be activated by the same switch.    c.    There shall be a manually operated switch for selection of high- or low-beam distribution of the headlamps.    d.    The headlight system must be wired separately from the body-controlled solenoid.    e.    A daytime running lamp (DRL) system shall be provided.    44.(34) 44.3(33) Hinges.  All exposed metal passenger-door hinges subject to corrosion shall be designed to allow lubrication without disassembly. All passenger-door hinges shall be securely bolted to the bus body. Metal screws are not acceptable.    44.(35) 44.3(34) Horn.  ChassisThe bus shall be equipped with a hornhorn(s) of standard make capable of producing a complex sound in a bandbands of audio frequencies between approximately 250 and 2,000 cycles per second and tested in accordance with Society of Automotive Engineers (SAE) Standard J377SAE J377, Horn—Forward Warning—Electric—Performance, Test, and Application.    44.(36) 44.3(35) Identification.      a.    The body shall bear the words “SCHOOL BUS” in black letters at least 8 inches high on both front and rear of the body or on attached signs. The lettering shall be placed as high as possible without impairment of its visibility. The lettering shall conform to Series B of Standard Alphabets of Highway Signs. “SCHOOL BUS” lettering shall have a reflective background or, as an option, may be illuminated by backlighting.    b.    The bus, whether school-owned or contractor-owned, shall have displayed at the beltline on each side of the vehicle the official name of the school in black standard unshaded letters at least 5 inches high, but not more than 7 inches high.Examples:    (1)   Blank community school district.    (2)   Blank independent school district.    (3)   Blank consolidated school district.If there is insufficient space due to the length of the name of the school district, the words “community,” “independent,” “consolidated,” and “district” may be abbreviated. If, after these abbreviations, there is still insufficient space available, the words “community school district” may be replaced by the uppercase letters “CSD” upon prior approval by the school transportation consultant of the Iowa department of education.    c.    The incorporated names of cities located within an officially reorganized school district may be placed on either side of the bus in a single line situated beneath the official school district name. The lettering shall not exceed 2 inches in height and shall be black. This paragraph shall apply only when the names of the cities are not included in the official school district name on the beltline.    d.    Buses privately owned and operated by an individual or individuals and used exclusively for transportation of students shall bear the name of the owner, at the beltline on each side of the vehicle in black standard unshaded letters at least 5 inches high, but not more than 7 inches high.    e.    The words “RATED CAPACITY,” along with the appropriate number indicating the rated pupil seating capacity of the bus, shall be printed to the left of the entrance door, at least 6 inches below the name of the school district and on the bulkhead of the bus above the right windshield. The letters shall be black in color and at least 2 inches in height. The word “CAPACITY” may be abbreviated and shown as “CAP.” where necessary.    f.    The number of the bus shall be printed in not less than 5-inch nor more than 8-inch black letters, except as otherwise noted in this subrule, and shall be displayed on both sides, the front and the rear of the bus. The location of the bus number is at the discretion of the vehicle owner except that the number:    (1)   Shall be located to the rear of the service door not more than 36 inches from the ground on the right side of the bus and at the same respective position on the left side of the bus.    (2)   Shall be yellow if located on either the front or rear bumper.    (3)   May be placed on the roof of the bus at a position representing the approximate lateral and longitudinal midpoint of the bus. The bus number shall be black and shall measure not less than 24 inches in length.    (4)   Shall not be located on the same line as the name of the school district on either side of the bus, on the emergency door, or in a location that will interfere with the words “SCHOOL BUS.”    g.    Buses privately owned by individuals, a company, or a contractor shall also bear the name of the owner, followed by the word “OWNER” in not more than 2-inch characters printed approximately 6 inches below the bus capacity on the right side of the bus.    h.    Symbols, characters or letters, for the purpose of vehicle or route identification by students, may be displayed in the lower, split-sash, glass portion of the third passenger window from the front on the service entrance side of the bus. Such symbols, characters or lettering, if used, shall not exceed 36 square inches. This requirement applies to all school buses regardless of date of purchase.    i.    Symbols identifying the bus as equipped for or transporting students with special needs shall be displayed. See subrule 44.4(2).    j.    The words “UNLAWFUL TO PASS WHEN LIGHTS FLASH” shall be displayed on the rear emergency door of the bus between the upper and lower window glass sections. The letters shall be black and not less than 2 inches nor more than 6 inches in height. If there is not sufficient space on the emergency door, letter size may be reduced upon approval of the Iowa department of education.    k.    The word “BATTERY” in 2-inch black letters shall be placed on the door covering the battery opening.    l.    Pressure-sensitive markings of vinyl material may be used for the lettering mentioned in this subrule in lieu of painting.    m.    Any lettering, including the name of the school’s athletic team(s), numbers, drawings, bumper stickers, characters,holiday decorations, or mascot symbols other than the bus manufacturer’s registered trademarks or those specifically noted in paragraphs 44.3(36)“a”44.3(35)“a” through “k” above are prohibited.    n.    Fuel type shall be clearly displayed in 2-inch letters either on the fuel door or directly above the fuel door. Examples:Gasoline or Gasoline OnlyDiesel or Diesel Fuel or Diesel OnlyPropane or Propane OnlyDiesel Exhaust Fluid (DEF)    o.    A “No Trespassing” sign may be affixed to the face of the top step in 2-inch black letters on a white background.     44.(37) 44.3(36) Instruments and instrument panel.      a.    Chassis shall be equipped with an instrument panel having, as a minimum, the following instrumentation: (Lights in lieu of gauges are not acceptable except as noted.)    (1)   Speedometer.    (2)   Odometer with accrued mileage including tenths of miles unless tenths of miles are registered on a trip odometer.    (3)   Voltmeter with graduated scale.    (4)   Oil pressure gauge.    (5)   Water temperature gauge.    (6)   Fuel gauge.    (7)   Upper-beamHigh-beam headlamp indicator.    (8)   Air pressure gauge, where air brakes are used. A light indicator in lieu of a gauge is permitted on vehicles equipped with hydraulic-over-hydraulic brake system.    (9)   Turn signal indicator.    (10)   Glow-plug indicator light, where appropriate.    (11)   Tachometer required on vehicles 14,500 pounds GVWR and greater.    b.    Gauges shall be displayed as single-gauge installations or as gauges contained in a multifunction instrument display. The multifunction instrument display shall comply, as a minimum, with the following design criteria:    (1)   The driver must be able to manually select any displayable function of the gauge on a multifunction display whenever desired.    (2)   Whenever an out-of-limits condition occurs, which would be displayed on one or more functions of a multifunction gauge, the multifunction gauge controller should automatically display this condition on the instrument cluster. This should be in the form of an illuminated warning light as well as having the multifunction gauge automatically display the out-of-limits indications. Should two or more functions displayed on the multifunction gauge go out of limits simultaneously, the multifunction gauge should automatically sequence between those functions continuously until the condition(s) is corrected.    (3)   The use of a multifunction instrument display does not relieve the requirement of audible warning devices as required in this subrule.    c.    All instruments shall be easily accessible for maintenance and repair.    d.    Instruments and gauges shall be mounted on the instrument panel so each is clearly visible to the driver in a normal seated position in accordance with SBMTC School Bus Design Objectives, August 1996 edition.    e.    The instrument panel shall have rheostatically controlled lamps of sufficient candlepower to illuminate all instruments, gauges, and the shift selector indicator for automatic transmission.    44.(38) 44.3(37) Insulation.      a.    Thermal insulation in the ceiling and walls shall be fire-resistant, UL-approved, and approximately 1½-inch thick with a minimum R-value of 5.5. Insulation shall be installed in such a way as to prevent it from sagging.    b.    Roof bows shall be insulated in accordance with paragraph 44.3(38)“a.”44.3(37)“a.”    44.(39) 44.3(38) Interior.      a.    The interior of the bus shall be free of all unnecessary projections, including luggage racks and attendant handrails, to minimize the potential for injury. This standard requires inner lining on ceilings and walls. If the ceiling is constructed to contain lapped joints, the forward panel shall be lapped by the rear panel and exposed edges shall be beaded, hemmed, flanged, or otherwise treated to minimize sharp edges. Buses may be equipped with a storage compartment for tools, tire chains, and tow chains. See also subrule 44.3(64).    b.    Radio speakers are permitted in the passenger compartment area only. No radio speaker, other than that which is necessary for use with two-way communication equipment, shall be located within the driver’s compartment area. All radio speakers shall be flush-mounted with the roof or side panels and shall be free of sharp edges which could cause injury to a child.    c.    The driver’s area forward of the foremost padded barriers shall permit the mounting of required safety equipment and vehicle operation equipment.    d.    Every school bus shall be constructed so that the noise level taken at the ear of the occupant nearest to the primary vehicle noise source shall not exceed 85 dBA when tested according to the procedure found in Appendix B, National School Transportation Specifications and Procedures Manual 2010, Missouri Safety Center, Central Missouri State University, Humphreys Suite 201, Warrensburg, Missouri 640932015.    e.    An access panel must be provided, front and rear, so lights and wiring for the 8-light warning system may be repaired or serviced without removing ceiling panels.    f.    Ceiling material designed to reduce noise within the driver compartment or passenger compartment may be installed by the manufacturer.    g.    An electronic “child check” monitor shall be installed. This monitor shall operate in such a way as to require the driver to physically walk to the back of the bus to disengage the monitor system after having first shut off the engine of the bus.    h.    Mobile Wi-Fi Internet isand USB ports are allowed, in accordance with other provisions of subrule 44.3(39)44.3(38).    i.    On-board interior bus camera heads are allowed within the passenger area of the bus. Camera heads shall not extend more than 1½inchinches from the ceiling and shall have rounded edges as much as possible. Camera heads shall not be mounted directly above the aisle.Exterior cameras are allowed.    44.(40) 44.3(39) Lamps and signals.      a.    All lamps and lamp components shall meet or exceed applicable standards established by the Society of Automotive Engineers (SAE), the American Association of Motor Vehicle Administrators (AAMVA), and FMVSS. These lamps shall be of incandescent or LED design.    b.    Clearance lamps. The body shall be equipped with two amber clearance lamps at the front and two red clearance lamps at the rear mounted at the highest and widest portion of the body.    c.    Identification lamps. The bus shall be equipped with three amber identification lamps on the front and three red identification lamps on the rear. Each group shall be evenly spaced not less than 6 or more than 12 inches apart along a horizontal line near the top of the vehicle.    d.    Intermediate side marker lamps. On all buses over 30 feet long, one amber side lamp is required on each side, located midway between the front and rear clearance lamps.    e.    Stop/tail (brake) lamps. Buses shall be equipped with four combination, red stop/tail lamps meeting SAE specifications. Each lamp shall have double filament lamp bulbs or LEDs that are connected to the headlamp and brake-operated stop lamp circuits. These should be positioned as follows:    (1)   Two combination lamps with a minimum diameter of 7 inches or, if a shape other than round, a minimum of 38 square inches of illuminated area shall be mounted on the rear of the bus just to the inside of the turn signal lamps.    (2)   Two combination lamps with a minimum diameter of 4 inches or, if a shape other than round, a minimum of 12 square inches of illuminated area shall be mounted on the rear of the body between the beltline and the floor line. The rear license plate lamp may be combined with one lower tail lamp. Stop lamps shall be activated by the service brakes and shall emit a steady light when illuminated. Type A-2 buses with bodies supplied by the chassis manufacturer may have the manufacturer’s standard stop and tail lamps.    f.    Items described in paragraphs 44.3(40)44.3(39)“b,” “c,” “d,” and “e” shall be connected to the headlamp switch.    g.    Backup lamps. The bus body shall be equipped with two white rear backup lamps. All vehicles shall be equipped with lamps at least 4 inches in diameter or, if a shape other than round, a minimum of 13 square inches of illuminated area. All lamps shall have a white or clear lens and shall meet SAE specifications. If backup lamps are placed on the same line as the brake lamps and turn signal lamps, they shall be to the inside.Exterior perimeter lighting behind rear axle, activated by reverse switch, is allowed.    h.    Interior lamps. Interior lamps shall be provided which adequately illuminate the interior aisle and the step well. Step well lightsand exterior boarding lights are required and shall be illuminated by a service door-operated switch, to illuminate only when headlights and clearance lights are on and the service door is open. In addition, the following interior lamps shall be provided:    (1)   Supervisor’s light. The rearmost ceiling light or a separate light may be used as a supervisor’s light and shall be activated by a separate switch controlled by the driver.    (2)   Driver’s area dome light. This light shall have a separate switch controlled by the driver and shall illuminate the driver’s compartment area.    (3)   Body instrument panel lights shall be controlled by a rheostat switch.    (4)   On buses equipped with a monitor for the front and rear lamps of the school bus, the monitor shall be mounted in full view of the driver. If the full circuit current passes through the monitor, each circuit shall be protected by a fuse or circuit breaker against any short circuit or intermittent shorts.    i.    License plate lamp. The bus shall be equipped with a rear license plate illuminator. This lamp may be combined with one of the tail lamps.    j.    Reflectors. Reflectors shall be securely attached to the body with sheet metal screws or another method having equivalent securement properties and installed in accordance with the requirements of FMVSSNo. 108; however, the vehicle shall, as a minimum, be equipped with the following:    (1)   Two amber reflectors, one on each side at the lower front and corner of the body approximately at floor level and back of the door on the right side, and at a similar location on the left side. For all buses over 30 feet long, an additional amber reflector is required on each side at or near the midpoint between the front and rear side reflectors.    (2)   Four red reflectors, one at each side at or near the rear and two on the rear, one at each side.    (3)   Reflectors are to be mounted at a height not more than 42 inches or less than 30 inches above the ground on which the vehicle stands.    k.    Warning signal lamps.    (1)   Buses shall be equipped with two red lamps at the rear of the vehicle and two red lamps at the front of the vehicle.    (2)   In addition to the four red lamps described above, four amber lamps shall be installed so that one amber lamp is located near each red signal lamp, at the same level, but closer to the vertical centerline of the bus. The system of red and amber signal lamps shall be wired so that amber lamps are energized manually and the red lamps are automatically energized (sequential), with amber lamps being automatically de-energized, when the stop signal arm is extended or when the bus service door is opened. An amber pilot light and a red pilot light shall be installed adjacent to the driver controls for the flashing signal lamp to indicate to the driver which lamp system is activated.    (3)   The area immediately around the lens of each alternately flashing signal lamp shall be black. In installations where there is no flat vertical portion of body immediately surrounding the entire lens of the lamp, there shall be a circular or square band of black immediately below and to both sides of the lens, on the body or roof area against which the signal lamp is seen from a distance of 500 feet along the axis of the vehicle. Black visors or hoods, with a minimum depth of 4 inches, may be provided.    (4)   Red lamps shall flash at any time the stop signal arm is extended.    (5)   All flashers for alternately flashing red and amber signal lamps shall be enclosed in the body in a readily accessible location.    (6)   Strobe lights are permissible.    (7)   Additional electronic/lighted warning devices mounted on the rear of the bus are allowed. Each design shall be evaluated and approved by Iowa department of education personnel per established criteria.    (8)   Supplemental warning lights may be installed by the vehicle owner. The supplemental warning lights may be mounted to the front and rear of all Type A, B, C and D school buses and shall meet the following requirements:    1.   Must be wired into the existing 8-way warning light system, operate only with the existing red lights of that system, and use the same flash pattern.    2.   Must be a four-light system (two front, two rear) and shall not be mounted directly to either the front or rear bumper.
  • Front lights must be located between the outer edge of the grill opening and the outer edge of the headlight(s), and must sit horizontally rather than vertically. The lens of the light must be approximately perpendicular to the ground and to the outside edge of the bus body.
  • Rear lights must be located 1 inch to 3 inches above the bumper, with a maximum of 4 inches above the bumper; must be located at least 1 inch inboard from the outside edge of the bus, but left and right of the emergency door; and must sit horizontally rather than vertically. The lens of the light must be approximately perpendicular to the ground and to the outside edge of the bus body.
  •     l.    Turn signal lamps.    (1)   The bus body shall be equipped with amber rear turn signal lamps that meet SAE specifications and are at least 7 inches in diameter or, if a shape other than round, a minimum of 38 square inches of illuminated area. These signal lamps must be connected to the chassis hazard warning switch to cause simultaneous flashing of turning signal lamps when needed as a vehicular traffic hazard warning. Turn signal lamps are to be placed as far apart as practical, and their centerline shall be approximately 8 inches below the rear window. Type A-2 conversion vehicle lamps must be at least 21 square inches in lens area and in the manufacturer’s standard color.    (2)   Buses shall be equipped with amber side-mounted turn signal lights. The turn signal lamp on the left side shall be mounted rearward of the stop signal arm, and the turn signal lamp on the right side shall be mounted rearward of the service door.    m.    A white flashing strobe light rated for outdoor use and weather-sealed shall be installed on the roof of the bus not less than 1 foot or more than 18 inches from the rear center of the bus. The strobe light shall be located to the rear of the rearmost emergency roof hatch to prevent the roof hatch from diminishing the effectiveness of the strobe light. In addition:    (1)   The strobe light shall have a single clear lens emitting light 360 degrees around its vertical axis and may not extend above the roof more than the maximum legal height.    (2)   The strobe light must be controlled by a separate switch with an indicator light which when lit will indicate that the strobe light is turned on.    (3)   The light shall be used only in fog, rain, snow, or at times when visibility is restricted.    (4)   Each model strobe shall be approved by the motor vehicle division, Iowa department of transportation.    n.    Pedestrian safety crossing lights are allowed. The safety crossing light(s) must be a minimum of 500 lumens with a maximum of 1,000 lumens of brightness per light, and must be in a flood light pattern.    (1)   The light(s) shall be mounted on the face of the front bumper, facing right or left or both, and angled 45 degrees toward the ground to illuminate students waiting for the bus or to illuminate the path for students crossing the road to get to the bus.    (2)   The light(s) shall activate automatically with the red warning lights and stop arm and shall deactivate automatically when the red warning lights and stop arm operations are canceled.
        44.(41) 44.3(40) Measurements.      a.    Interior body height shall be 72 inches or more, measured metal to metal, at any point on the longitudinal centerline from the front vertical bow to the rear vertical bow. Inside body height of Type A-2 buses shall be 62 inches or more.     b.    Overall height, length and width of the bus shall not exceed the maximums allowed by the Iowa department of transportation.    44.(42) 44.3(41) Metal treatment.      a.    All metal, except high-grade stainless steel or aluminum, used in construction of the bus body shall be zinc-coated or aluminum-coated to prevent corrosion. This requirement applies to, but is not limited to, such items as structural members, inside and outside panels, door panels and floor sills. Excluded are such items as door handles, grab handles, interior decorative parts and other interior plated parts.    b.    All metal parts that will be painted shall be, in addition to above requirements, chemically cleaned, etched, zinc-phosphate coated and zinc-chromate or epoxy primed to improve paint adhesion.    c.    In providing for these requirements, particular attention shall be given lapped surfaces, welded connections of structural members, cut edges, punched or drilled hole areas in sheet metal, closed or box sections, unvented or undrained areas, and surfaces subjected to abrasion during vehicle operation.    d.    As evidence that the above requirements have been met, samples of materials and sections used in construction of the bus body subjected to a 1,000-hour salt spray test as provided for in the latest revision of ASTM Standard B-117 shall not lose more than 10 percent of material by weightshall be subjected to cyclic corrosion testing as outlined in SAE J1563.    44.(43) 44.3(42) Mirrors.      a.    The interior mirror shall be either clear view laminated glass or clear view glass bonded to a backing that retains the glass in the event of breakage. The mirror shall have rounded corners and protected edges. All Type A buses shall have a minimum of a 6-inch × 16-inch mirror; and Type B, C, and D buses shall have a minimum of a 6-inch × 30-inch mirror.    b.    Each school bus shall be equipped with exterior mirrors meeting the requirements of FMVSSNo. 111. Mirrors shall be easily adjustable, but shall be rigidly braced so as to reduce vibration.    c.    Heated right- and left-side rearview mirrors shall be provided.    d.    Systems offering a design feature permitting the driver to remotely adjust rearview mirrors from the driver’s compartment shall be utilized.    e.    The right-side rearview mirrors must be unobstructed by the unwiped section of the windshield.    f.    Heated cross-view mirrors shall be provided.    g.    Stainless steel mirror brackets are allowed.    44.(44) 44.3(43) Mounting.      a.    The chassis frame shall support the rear body cross member. Except where chassis components interfere, the bus body shall be attached to the chassis frame at each main floor sill in such manner as to prevent shifting or separation of the body from the chassis under severe operating conditions.    b.    Isolators shall be placed at all contact points between the body and chassis frame and shall be secured by a positive means to the chassis frame or body to prevent shifting, separation, or displacement of the isolators under severe operating conditions.    c.    The body front shall be attached and sealed to the chassis cowl to prevent entry of water, dust, and fumes through the joint between the chassis cowl and body.    d.    The refurbishing or reconditioning of a body-on-chassis school bus is restricted to the repair and replacement of school bus body or chassis components. The original body and chassis, as certified by the original equipment manufacturers (OEMs), shall be retained as a unit upon completion of repairs. It is not permissible to exchange or interchange school bus bodies and chassis. The refurbisher or reconditioner shall certify that the vehicle meets all state and federal construction standards in effect as of the date of manufacture and shall provide suitable warranty on all work performed. See also subrule 44.6(1).    44.(45) 44.3(44) Mud flaps.      a.    Mud flaps or guards are required and shall be provided and installed by the body manufacturer or manufacturer’s representative for both front and rear wheels.    b.    Front mud flaps or guards shall be of adequate size to protect body areas vulnerable to road debris from wheels and shall be mounted so as to be free of wheel movement at all times.    c.    Rear mud flaps or guards shall be comparable in size to the width of the rear wheelhousing and shall reach within approximately 9 inches of the ground when the bus is empty. They shall be mounted at a distance from the wheels to permit free access to spring hangers for lubrication and maintenance and to prevent their being damaged by tire chains or being pulled off while the vehicle is in reverse motion.    d.    All mud flaps shall be constructed of rubber. Vinyl or plastic is not acceptable.    44.(46) 44.3(45) Oil filter.  An oil filter with a replaceable element or cartridge shall be of manufacturer’s recommended capacity and shall be connected by flexible oil lines if it is not of built-in or engine-mounted design.    44.(47) 44.3(46) Openings.  All openings in the floorboard or fire wall between the chassis and passenger compartment, such as for gearshift selector and parking brake lever, shall be sealed.    44.(48) 44.3(47) Passenger load.      a.    Actual gross vehicle weight (GVW) is the sum of the chassis weight, plus the body weight, plus the driver’s weight, plus the total seated pupil weight.    (1)   For purposes of calculation, the driver’s weight is 150 pounds.    (2)   For purposes of calculation, the pupil weight is 120 pounds per pupil.    b.    Actual gross vehicle weight (GVW) shall not exceed the chassis manufacturer’s GVWR for the chassis, nor shall the actual weight carried on any axle exceed the chassis manufacturer’s gross axle weight rating.    44.(49) 44.3(48) Passenger securement seating system.      a.    All vehicles shall conform to all FMVSS at date of manufacture.    b.    Unless otherwise required by FMVSS, school bus seats may be equipped with passenger securement systems for passengers with disabilities in accordance with 281—Chapter 41 when the child’s individual education program staffing team determines that special seating and positioning are necessary during transportation. When the staffing team determines that a passenger securement system is necessary to safely transport a student with a disability, the need shall be documented in the student’s individual education plan (IEP).    c.    When a child securement system is required in paragraph 44.3(49)“b,”44.3(48)“b,” the seat, including seat frame, seat cushion, belt attachment points, belts and hardware, shall comply with all applicable FMVSS at the time of manufacture. When it is determined that the securement system is no longer necessary to provide seating assistance to a child with a disability, the securement system shall be removed from the seat frame.    d.    Children transported in child safety seats shall be secured to a school bus seat utilizing a seat belt-ready seat frame, according to the child safety seat manufacturer’s instructions.    44.(50) 44.3(49) Public address system.  A public address system permitting interior, exterior or both interior and exterior communication with passengers may be installed.    44.(51) 44.3(50) Radio/communication system.  Each school bus shall have a communication system to allow communication between the driver of the bus and the school’s base of operations for school transportation. This system shall be a two-way radio, cellular phone, or similar device as allowed by local and state policies regarding use of handheld communication equipment.    44.(52) 44.3(51) Retroreflective material.      a.    Retroreflective material shall be provided in accordance with the following:    (1)   The rear of the bus body shall be marked with strips of reflective NSBY material to outline the perimeter of the back of the bus using material which conforms with the “Retroreflective Sheeting Daytime Color Specification Proposal” of Appendix B, National School Transportation Specifications and Procedures Manual 2010, Central Missouri State University, Humphreys Suite 201, Warrensburg, Missouri 64093requirements of FMVSS No. 131, School Bus Pedestrian Safety Devices, Table 1. The perimeter marking of rear emergency exits in accordance withper FMVSSNo. 217 and, Bus Emergency Exits and Window Retention and Release, or the use of reflectiveretroreflective “SCHOOL BUS” signs partially accomplish the objective of this requirement. To complete the perimeter marking of the back of the bus, strips of at least 1¾-inch reflectiveretroreflective NSBY material, a minimum of 1 inch and a maximum of 2 inches in width, shall be applied horizontally above the rear windows and above the rear bumper, extending from the rear emergency exit perimeter marking outward to the left and right rear corners of the bus; and vertical. Vertical strips shall be applied at the corners connecting these horizontal strips.Multifunction school activity buses (MFSABs) shall be exempt from these color requirements.    (2)   “SCHOOL BUS” signs, if not of lighted design, shall be marked with reflective NSBY material comprising background for lettering of the front and rear “SCHOOL BUS” signs.    (3)   Sides of the bus body shall be marked with reflective NSBY material at least 1¾ inches in width, extending the length of the bus body and located within 6 inches above or below the floor line or on the beltline.    b.    Front and rear bumpers may be marked diagonally 45 degrees down to centerline of pavement with 2-inch +/- ¼ inch wide strips of noncontrasting reflective material. This material shall appear black during daylight hours; however, it will be seen as a reflective material during periods of reduced light conditions when a direct light source strikes the material.    44.(53) 44.3(52) Road speed control.  When it is desired to accurately control vehicle maximum speed, a road speed control device may be utilized. A vehicle cruise control may also be utilized.    44.(54) 44.3(53) Rub rails.      a.    One rub rail located on each side of the bus at, or no more than 8 inches above, the seat level shall extend from the rear side of the entrance door completely around the bus body (except for emergency door or any maintenance access door) to the point of curvature near the outside cowl on the left side.    b.    One rub rail located at, or no more than 10 inches above, the floor line shall cover the same longitudinal area as the upper rub rail, except at wheelhousings, and shall extend only to radii of the right and left rear corners.    c.    Rub rails at or above the floor line shall be attached at each body post and all other upright structural members.    d.    Each rub rail shall be 4 inches or more in width in its finished form, shall be of 16-gauge steel or suitable material of equivalent strength, and shall be constructed in corrugated or ribbed fashion.    e.    Rub rails shall be applied to outside body or outside body posts. Pressed-in or snap-on rub rails do not satisfy this requirement. For all buses using a rear luggage or rear engine compartment, rub rails need not extend around rear corners.    f.    The bottom edge of the body side skirts shall be stiffened by application of a rub rail, or the edge may be stiffened by providing a flange or other stiffeners.    g.    Rub rails shall be painted black or shall be covered with black retroreflective material.    44.(55) 44.3(54) Seating, crash barriers.      a.    All school buses (including Type A) shall be equipped with restraining barriers which conform to FMVSSNo. 222.    b.    Crash barriers shall be installed conforming to FMVSSNo. 222; however, all Type A-2 school bus bodies shall be equipped with padded crash barriers, one located immediately to the rear of the driver’s seat and one at the service door entrance immediately to the rear of the step well.    c.    Crash barriers and passenger seats mayshall be constructed with materials that enable the crash barriers and passenger seats to meet the criteria contained in the School Bus Seat Upholstery Fire Block Test specified in the National School Transportation Specifications and Procedures Manual 2010, Central Missouri State University, Humphreys Suite 201, Warrensburg, Missouri 640932015. Fire block material, when used, shall include the covering of seat bottoms.    d.    All crash/restraining barriers shall be the same height as the passenger seating height in the bus.    44.(56) 44.3(55) Seating, driver.      a.    Type A school buses shall be equipped with a driver’s seat of manufacturer’s standard design meeting FMVSS.    b.    All Type B, C, and D school buses shall have a driver’s seat equipped with a one-piece high back designed to minimize the potential for head and neck injuries in rear impacts, providing minimum obstruction to the driver’s view of passengers and meeting applicable requirements of FMVSSNo. 222. The height of the seat back shall be sufficient to provide the specified protection for a 5th percentile adult female up to a 95th percentile adult male, as defined in FMVSSNo. 208. The seat shall be centered behind the steering wheel with a backrest a minimum distance of 11 inches behind the steering wheel. The seat shall be securely mounted to the floor of the bus with grade 5 or better bolts and shall be secured with locking nuts or lock washers and nuts.    c.    All air brake-equipped school buses may be equipped with an air suspension driver’s seat meeting the following additional requirements:    (1)   The air control for height adjustment shall be within easy reach of the driver in the seated position.    (2)   The seat cushion shall be a minimum of 19½ inches wide, shall be fully contoured for maximum comfort, and shall have a minimum of four adjustment positions to allow changes in seat bottom angle.    (3)   The backrest shall include adjustable lumbar support.    (4)   The seat shall have a minimum of 7 inches of forward and rearward travel, adjustable with the driver in the seated position. This requirement applies to the seat mechanism. Reduction of this requirement to no less than 4 inches due to barrier placement on 89-passenger capacity buses will be acceptable.    (5)   The seat shall have a minimum of 4 inches of up and down travel.    (6)   Seat back shall include adjustability of tilt angle.    (7)   All adjustments shall be by fingertip controls without the use of tools.    (8)   The seat shall comply with all applicable FMVSS.    d.    Buses shall be equipped with a Type 2 lap belt/shoulder harness seat belt assembly for the driver. This assembly may be integrated into the driver’s seat. The seat belt assembly and anchorage shall meet applicable FMVSS. The design shall also meet the following additional requirements:    (1)   The design shall incorporate a fixed female push-button-type latch on the right side at seat level, and a male locking-bar tongue on the left retracting side.    (2)   The assembly shall be equipped with a single, dual-sensitive emergency locking retractor (ELR) for the lap and shoulder belt. This system shall be designed to minimize “cinching down” on air sprung and standard seats.    (3)   The lap portion of the belt shall be anchored or guided at the seat frame by a metal loop or other such device attached to the right side of the seat to prevent the driver from sliding sideways out of the seat.    (4)   There shall be a minimum of 7 inches of adjustment of the “D” loop of the driver’s shoulder harness on a nonintegrated style of seat belt assembly.    (5)   Shoulder belt tension shall be no greater than is necessary to provide reliable retraction of the belt and removal of excess slack.    (6)   The driver’s seat belt assembly shall incorporate high-visibility material.An audible alarm is also allowed.    44.(57) 44.3(56) Seating, passenger.      a.    All seats, component parts, and seat anchorage shall comply with applicable federal requirements as of the date of manufacture.    b.    All seats shall have a minimum cushion depth of 15 inches, shall have a seat back height of 24 inches above the seating reference point, and shall comply with all other requirements of FMVSSNo. 222.    c.    In determining the rated seating capacity of the bus, allowable average rump width shall be:    (1)   Thirteen inches where a three-three seating plan is used.    (2)   Fifteen inches where a three-two seating plan is used.    d.    The following knee room requirements shall apply to all school bus bodies:    (1)   Knee room shall meet the requirements of FMVSSNo. 222 and shall be measured, on Type A-2, B, C and D school buses, at the center of the transverse line of the seat and at seat cushion height. The distance from the front of a seat back (cushion) to the back surface of the cushion on the preceding seat shall be not less than 24 inches. The seat upholstery may be placed against the seat cushion padding, but without compressing the padding, before the measurement is taken.    (2)   On Type A-1 school buses, seat spacing shall be of the manufacturer’s standard spacing.    e.    All seats shall be forward-facing with seat frames attached to the seat rail with two bolts, washers and nuts or flange-headed nuts. Each seat leg shall be secured to the floor by a minimum of two bolts, washers, and nuts. Flange-headed nuts may be used in lieu of nuts and washers, or seats may be track-mounted in conformance with FMVSSNo. 222. This information shall be on a label permanently affixed to the bus.    f.    Jump seats or portable seats are prohibited; however, use of a flip seat at any side emergency door location in conformance with FMVSSNo. 222, including required aisle width to side door, is acceptable. Any flip seat shall be free of sharp projections on the underside of the seat bottom. The underside of the flip-up seat bottoms shall be padded or contoured to reduce the possibility of snagged clothing or injury during use. Flip seats shall be constructed to prevent passenger limbs from becoming entrapped between the seat back and the seat cushion when in an upright position. The seat cushion shall be designed to rise to a vertical position automatically when not occupied.    g.    Seats and seat back cushions shall be covered with a material having 42-ounce finished weight, 54-inch width, and finished vinyl coating of 1.06 broken twill or other material with equal tensile strength, tear strength, seam strength, adhesion strength, and resistance to abrasion, cold and flex separation.    h.    All fabric seams shall be chain- or lock-stitch sewn with two threads, each equal to or exceeding the tensile strength of “F”-rated nylon thread.    i.    g.    Passenger seats shall be constructed with materials that enable them to meet the criteria contained in the School Bus Seat Upholstery Fire Block Test specified in the National School Transportation Specifications and Procedures Manual 2010, Central Missouri State University, Humphreys Suite 201, Warrensburg, Missouri 640932015. Fire block material, when used, shall include the covering of seat bottoms.    j.    h.    Seat cushions shall contain a positive locking mechanism that requires removal of a security device before the seat may be unlatched.    i.    For Type C and D buses, the distance between the rearmost portion of the seat backs of the rear row of seats and outside rear of the bus body (rear seat buffer zone), measured at the floor line, must be at least 8 inches. For Type A buses, the distance must be at least 6 inches.    44.(58) 44.3(57) Seating, passenger restraints.      a.    Lap belts shall not be installed on passenger seats in large school buses (over 10,000 pounds GVWR) except in conjunction with child safety restraint systems that comply with the requirements of FMVSSNo. 213, Child Restraint Systems.    b.    Three-point (3-point) lap shoulderlap-shoulder belts mayshall be installed in allnew buses. If installed, theThe restraint system shall include a flexible design feature, thus allowing three-two seating on the same 39-inch seat, depending on student size.     44.(59) 44.3(58) Shock absorbers.  Buses shall be equipped with double-action shock absorbers compatible with manufacturer’s rated axle capacity at each wheel location.    44.3(59) Steering gear.      a.    The steering gear shall be approved by the chassis manufacturer and designed to ensure safe and accurate performance when the vehicle is operated with maximum load and at maximum speed.    b.    If external adjustments are required, the steering mechanism shall be accessible.    c.    No changes shall be made in the steering apparatus, including the addition of spinners or knobs which are not approved by the chassis manufacturer.    d.    There shall be a clearance of at least 2 inches between the steering wheel and cowl, instrument panel, windshield, or any other surface.    e.    Power steering is required and shall be of the integral type with integral valves. Electric power-assisted steering systems are allowed.    f.    The steering system shall be designed to provide a means for lubrication of all wear points, if wear points are not permanently lubricated.    g.    Tilting and telescopic steering wheels are acceptable.    44.3(60) Steps.      a.    The first step at the service door shall be not less than 10 inches and not more than 14 inches from the ground when measured from the top surface of the step to the ground, based on standard chassis specifications, except that on Type D vehicles, the first step at the service door shall be 11 inches to 16 inches from the ground. A step well guard/skid plate shall be installed by the manufacturer on all Type D vehicles.    b.    Step risers shall not exceed a height of 10 inches. When plywood is used on a steel floor or step, the riser height may be increased by the thickness of the plywood.    c.    Steps shall be enclosed to prevent accumulation of ice and snow.    d.    Steps shall not protrude beyond the side body line.    e.    A suitable device(s) shall be installed within the service entrance door area to assist passengers during entry or egress from the bus. The device(s) shall be designed so as to prevent injury or fatality to passengers from being dragged by the bus after becoming entangled in the device(s).    44.3(61) Step treads.      a.    All steps, including floor line platform area, shall be covered with an elastomer floor covering having a minimum overall thickness of 3/16 inch.    b.    Grooved design step treads shall be such that grooves run at a 90-degree angle to the long dimension of the step tread. The step covering shall be permanently bonded to a durable backing material that is resistant to corrosion.    c.    Step treads shall have a l½-inch white or yellow nosing as an integral piece without any joint.    d.    Step treads shall have abrasion resistance, slip resistance, weathering resistance, and flame resistance as outlined in the National School Transportation Specifications and Procedures Manual 2010, Missouri Safety Center, Central Missouri State University, Humphreys Suite 201, Warrensburg, Missouri 640932015.    e.    A 3-inch white or yellow rubber step edge at floor level, flush with the floor covering, shall be provided.    f.    Step treads shall have a calculated burn rate of .01 mm per minute or less using the test methods, procedures and formulas listed in FMVSS No. 302, Flammability of Interior Materials.    g.    A spray-on application type material that meets all other step tread requirements may be used in lieu of the floor covering described in paragraph 44.3(61)“a.” The material shall be applied not only to the interior surfaces of the service door step treads but also to the exterior if the exterior is not covered by undercoating.    44.3(62) Stirrup steps.      a.    There shall be at least one folding stirrup step or recessed foothold and suitably located handles on each side of the front of the body for easy accessibility for cleaning. Handles on the service door are prohibited.    b.    Steps or cutouts are permitted in the front bumper only, in lieu of the stirrup steps, if the windshield and lamps are easily accessible for cleaning from that position.    44.3(63) Stop signal arm.      a.    The stop signal arm shall be a flat 18-inch octagon exclusive of brackets for mounting.Stop arms or other warning devices shall not extend more than 30 inches beyond the side of the bus body. All lamps and lamp components shall comply with the requirements of FMVSSNo. 131.    b.    Both surfaces of the sign shall be covered with reflectorized material having a reflective capability equal to or exceeding that of 3M Corporation high-intensity sheeting.    c.    The application of the reflective sheeting material shall be in accordance with the sheeting manufacturer’s suggested application process. All copy shall be sharply defined and clean cut.    d.    The stop arm blade shall be mounted in the area below the driver’s window on the left side of the bus.    e.    A second stop signal arm mayshall be installed on the left side at or near the left rear corner of theType C and D school busbuses and shall meet the requirements of FMVSSNo. 131.    f.    Each stop arm blade shall be automatically extended upon activation of the red warning signal lamp system and remain extended until the red signal lamps are deactivated. In addition, each stop arm blade shall be equipped with two double-faced, 4-inch, alternately flashing red lights. The use of strobe lamps in the stop arm blade is acceptable.    g.    A wind guard shall be installed which prevents air currents from circulating behind the blades.    h.    The stop arm shall be vacuum-, electric-, or air-operated; and the system must positively hold the sign in extended or retracted position to prevent whipping in the wind.    i.    If the air for an air-operated stop arm comes from the regular air brake system, the body manufacturer shall provide the necessary check valve and pressure reduction valve to safeguard the air supply for brake application.    j.    The two double-faced, 4-inch flashing lights may be replaced with an LED illuminated, high-visibility display, spelling out the word “STOP” visible to the front and rear. This lighting system shall comply with applicable FMVSS prior to installation.    44.3(64) Storage compartments.      a.    An enclosed space shall be provided in the driver’s compartment for storing manuals and bus driver records. See also subrule 44.3(20)44.3(17).    b.    A storage container for tools, tire chains, and tow chains may be located either inside or outside the passenger compartment; but, if inside, it shall have a cover (seat cushion may not serve this purpose) capable of being securely latched and fastened to the floor, convenient to either the service or emergency door.    c.    Luggage compartments located within the area comprising the wheelbase of the vehicle are allowed. Compartments shall include a door and a means of holding the door in an open position when the compartment is being loaded or unloaded.    44.3(65) Suspensions.      a.    The capacity of springs or suspension assemblies shall be commensurate with the chassis manufacturer’s GVWR rating.    b.    Steel leaf rear springs shall be a progressive rate or multistage design. Front leaf springs shall have a stationary eye at one end and shall be protected by a wrapped leaf in addition to the main leaf. Parabolic or taper-leaf springs are acceptable.    c.    Air suspension systems are acceptable. Air bags, hoses, hose routing, and all related hardware shall conform to the chassis manufacturer’s recommendations.    44.3(66) Steering gear.      a.    The steering gear shall be approved by the chassis manufacturer and designed to ensure safe and accurate performance when the vehicle is operated with maximum load and at maximum speed.    b.    If external adjustments are required, the steering mechanism shall be accessible.    c.    No changes shall be made in the steering apparatus including addition of spinners or knobs which are not approved by the chassis manufacturer.    d.    There shall be a clearance of at least 2 inches between the steering wheel and cowl, instrument panel, windshield, or any other surface.    e.    Power steering is required and shall be of the integral type with integral valves.    f.    The steering system shall be designed to provide a means for lubrication of all wear points, if wear points are not permanently lubricated.    g.    Tilting and telescopic steering wheels are acceptable.    44.(67) 44.3(66) Sun shield.      a.    For Type B, C, and D vehicles, an interior adjustable transparent sun shield not less than 6 inches × 30 inches with a finished edge shall be installed in a position convenient for use by the driver.An interior adjustable transparent driver’s side mounted sun shield of manufacturer’s specification is allowed.    b.    On all Type A buses, the sun shield shall be the manufacturer’s standard.    44.(68) 44.3(67) Tailpipe.  See subrule 44.3(23)44.3(20).    44.(69) 44.3(68) Throttle.      a.    The force required to operate the throttle shall not exceed 16 pounds throughout the full range of accelerator pedal travel.    b.    A driver-operated, mechanical or electronic variable-speed hand throttle, or a fast idle switch, shallmay be provided on all Type C and D vehicles.    c.    OEM adjustable pedals are acceptable as an option.    44.(70) 44.3(69) Tires and rims.      a.    Tires and rims of the proper size and tires with a load rating commensurate with the chassis manufacturer’s gross vehicle weight rating (GVWR) shall be provided.    b.    Tires shall be of tubeless, steel-belted, radial (standard or low-profile) construction.    c.    “Bud” type, hub-piloted steel rims are required. Multipiece and “Dayton” rims are prohibited.    d.    Dual tires shall be provided on all vehicles listed in rule 281—44.2(285), except Type III vehicles.    e.    All tires on a vehicle shall be of the same size, and the load range of the tires shall meet or exceed the GVWR as required by FMVSSNo. 120.    f.    Spare tires are not required; however, if specified, the spare tire shall be located outside the passenger compartment. The spare tire may not be attached to any part of the rear portion of the body including the emergency door, bumper or roof. If a tire carrier is required, it shall be suitably mounted in an accessible location outside the passenger compartment.    g.    Recapped tires are permissible as replacements on equipment now in operation for use on rear wheels only, providing tires are guaranteed by the seller. Recapped tires are not permissible where single rear wheels are used.    h.    Tires, when measured on any two or more adjacent tread grooves, shall have a tread groove pattern depth of at least 4/32 of an inch on the front wheels and 2/32 of an inch on the rear wheels. No measurement shall be made where tire bars, humps, or fillets are located. On Type A-1 and Type A-2 buses with single front and rear wheels, the tread groove pattern depth shall be at least 4/32 of an inch. Where specific measurement points are provided by the tire manufacturer, they shall be utilized in determining tires approved for service. This requirement also applies to buses now in service.    i.    Tire pressure equalizing systems for dual rear wheels are acceptable.    j.    Traction-assisting devices, including hopper-sanders, tire chains or automatic traction chains, may be installed.    k.    j.    Wheel check indicators for lug nuts are allowed.    44.(71) 44.3(70) Tow hooks, front.  Tow eyes or hooks are required on Type B, C and D buses of 14,501 pounds GVWR or greater. Two tow eyes or hooks shall be installed by the manufacturer so as not to project beyond the front bumper.    44.(72) 44.3(71) Tow hooks, rear.  Two rear tow hooks are required on all school buses. Rear tow hooks shall be attached to the chassis frame and located under the rear bumper so the hook portion is under the body.    44.(73) 44.3(72) Traction-assisting devices.  Traction-assisting devices including hopper-sanders, tire chains or automatic traction chains may be installed.    44.(74) 44.3(73) Transmission.      a.    Automatic transmissions shall provide for not less than three forward speeds and one reverse speed. The shift lever, if applicable, shall provide a detent between each gear position when the gear selector quadrant and shift lever are not steering column-mounted.    b.    Automatic transmissions incorporating a parking pawl shall have a transmission shifter interlock controlled by the application of the service brake to prohibit accidental engagement of the transmission. All non-parking pawl transmissions shall incorporate a park brake interlock that requires the service brake to be applied to allow release of the parking brake.    44.(75) 44.3(74) Trash container and holding device.      a.    When a trash container is placed on the school bus, it shall comply with the following:    (1)   Meet the requirements of FMVSSNo. 302, Flammability of Interior Materials.    (2)   Be no greater than 20-quart capacity.    (3)   Be secured by a holding device that is designed to prevent movement and to allow easy removal and replacement.    b.    The container shall be placed in an accessible location in the driver’s compartment of the school bus subject to Iowa department of education approval. The container shall not obstruct the aisle of the bus, access to safety equipment or passenger use of the service entrance door.    c.    Trash containers meeting the requirements of paragraph 44.3(74)“a” are allowable behind the rear seat.    44.(76) 44.3(75) Turning radius.      a.    A chassis with a wheelbase of 264 inches or less shall have a right and left turning radius of not more than 42½ feet, curb-to-curb measurement.    b.    A chassis with a wheelbase of 265 inches or more shall have a right and left turning radius of not more than 44½ feet, curb-to-curb measurement.    44.(77) 44.3(76) Undercoating.      a.    The entire underside of the bus body, including floor sections, cross member and below floor line side panels, and chassis front fenders shall be coated with rustproofing material for which the material manufacturer has issued to the bus body manufacturer a notarized certification that materials meet or exceed all performance requirements of SAE J1959, Sept. 2003 Edition.    b.    Undercoating material shall be applied with suitable airless or conventional spray equipment to the undercoating material manufacturer’s recommended film thickness and shall show no evidence of voids in cured film.    c.    The undercoating material shall not cover any exhaust components of the chassis.    d.    If chassis is built as a separate unit, the chassis manufacturer or its agents shall be responsible for providing undercoating to the chassis areas.    44.3(78) Vacuum check valve.  A vacuum check valve shall be provided and installed on the chassis by the school bus body manufacturer for connecting vacuum accessory items.    44.(79) 44.3(77) Vandal lock.      a.    The school bus may be equipped with a vandal locking system for securing the service entrance,and emergency, and wheelchair lift door(s).    b.    The vandal locking system shall include the following design features:    (1)   The entrance door is to be locked by an exterior key with a dead bolt, a remote control (cable) device or an electric device. The system must prevent the door from being accidentally locked by any motion the bus may encounter during its normal operation. This requirement does not apply to Type A vehicles with a left-side driver’s door.    (2)   When the bus is equipped with a rear-mounted engine, the emergency door and rear emergency exit window are to be locked by an interior slide bolt which shall activate a buzzer when the door or emergency exit window is locked and the ignition of the bus is turned on. The locking mechanism must be capable of being locked or unlocked without the use of a separate key or other similar device.    (3)   The engine starting system of the bus shall not operate if the rear or side emergency door or rear emergency exit window over the rear engine compartment is locked from either the inside or outside of the bus.    (4)   Hasp-type devices may not be attached to the bus for the purpose of securing any door or window.    44.(80) 44.3(78) Ventilation.      a.    The body ventilation system on Type A, B, C and D buses shall include one static, nonclosing exhaust vent in the low-pressure area of the roof and one or more combination roof ventilation/emergency escape hatches in accordance with 44.3(18)44.3(15). The ventilation system shall be capable of being controlled and shall have sufficient capacity to maintain a proper quantity of air under operating conditions without the opening of windows except in extremely warm weather.    b.    Each combination roof ventilation/emergency escape hatch shall be installed by the school bus body manufacturer or the body manufacturer’s approved representative and shall have the following design and installation features:    (1)   Multiposition fresh air ventilation.    (2)   Release handle(s) permitting operation as an emergency exit(s), accessible inside and outside the vehicle.    (3)   An audible warning system which sounds an alarm in the driver’s compartment area when the emergency roof hatch is unlatched shall be installed as a design feature by the manufacturer.    (4)   When more than one ventilation/emergency roof hatch is required, one shall be installed forward of the intersection of the horizontal and longitudinal midpoints of the bus in a low-pressure area of the roof. The second unit shall be installed on the roof in a location behind the rear axle. When only one ventilation/emergency roof hatch is required, it shall be installed in a low-pressure area of the roof at or near the longitudinal midpoint of the bus.    (5)   Ventilation/emergency escape hatches may include static-type nonclosable ventilation.    c.    Auxiliary fans shall be installed and shall meet the following requirements:    (1)   Two adjustable fans shall be installed on Type B, C and D buses. Fans for left and right sides shall be placed in a location where they can be adjusted for maximum effectiveness and do not obstruct vision to any mirror.    (2)   Fans shall be a nominal 6-inch diameter except where noted below.    (3)   Fan blades shall be covered with a protective cage. Each fan shall be controlled by a separate switch capable of two-speed operation.    (4)   Type A buses shall have at least one fan that has a nominal diameter of at least 4 inches and meets the above requirements.    44.(81) 44.3(79) Wheelhousings.      a.    The wheelhousing opening shall allow for easy tire removal and service.    b.    The wheelhousing shall be attached to the floor sheets in such a manner as to prevent any dust, water or fumes from entering the bus body. Wheelhousings shall be constructed of at least 16-gauge steel or other material capable of withstanding passenger or other expected loads applied internally or externally without deformation.    c.    The inside height of the wheelhousing above the floor line shall not exceed 12 inches.    d.    The wheelhousing shall provide clearance for installation and use of tire chains on single and dual (if so equipped) power-driving wheels.    e.    No part of a raised wheelhousing shall extend into the emergency door opening.    44.(82) 44.3(80) Windshield and windows.      a.    All glass in windshield, windows, and doors shall be of approved safety glass consistent with American National Standard, Safety Code for Safety Glazing Materials for Glazing Motor Vehicles Operating on Land Highways, ANSI/SAE Z-26.1-1990, mounted so the permanent mark is visible, and of sufficient quality to prevent distortion of view in any direction.    b.    Glass in windshields may be heat-absorbing and may contain a shaded band across the top. Location of “fade out” shall be above the upper limit for maximum visibility.    c.    Each full side window, other than emergency exits designated to comply with FMVSSNo. 217, shall be split-sash type and shall provide an unobstructed emergency opening of at least 9 inches high, but not more than 13 inches high, and 22 inches wide, obtained by lowering the window. When the driver’s window consists of two sections, both sections shall be capable of being moved or opened.    d.    Insulated double glass is required in both sections of the left-side driver’s window and in the upper glass portion(s) of the service entrance door.    e.    Window glass forward of the service door and in the driver’s direct line of sight for observing exterior rearview mirrors and traffic shall be of insulated double glassor may incorporate an electric grid heating system for the purpose of clearing the windows. The door glass in Type A-2 vehicles equipped with a manufacturer’s standard van-type, right-side service door may be of the manufacturer’s standard design.    f.    The school bus body manufacturer may design and install a protective device over the inside, lower window glass of a rear emergency door to protect it from being damaged or broken during normal operation. The protective device shall be securely mounted by the manufacturer, shall be free of projections which might harm passengers, and shall permit visibility through the device to the area outside and to the rear of the bus.    g.    Tinted glazing capable of reducing the amount of light passing through a window may be installed consistent with rules established by the Iowa department of public safety relating to automotive window transparency standards, except that the following windows shall be of AS-II clear glass rating:    (1)   All glass to the immediate left of the driver.    (2)   All glass forward of the driver and service door.    (3)   All glass in the service entrance door.    h.    The entire windshield area shall be of AS-I rating.    44.(83) 44.3(81) Windshield washer system.      a.    All buses shall be equipped with electric wet-arm windshield washers which conform to the body manufacturer’s recommendation as to type and size for the bus on which they are to be used. The windshield washer system on Type A vehicles may be of the manufacturer’s standard design. On Type A-2 vehicles, the windshield washer system shall be of the manufacturer’s standards.    b.    The washer control(s) shall be located within easy reach of the driver.    44.(84) 44.3(82) Windshield wiper system.      a.    For Type A vehicles, windshield wipers shall be supplied by the chassis manufacturer and shall be of the manufacturer’s standard design.    b.    Type B, C and D buses shall be equipped with two positive-action, two-speed or variable-speed electric or air windshield wipers. Windshield wipers shall have an intermittent wiping feature and shall be operated by a single switch.    c.    The wipers shall be operated by one or more air or electric motors of sufficient power to operate wipers. If one motor is used, the wipers shall work in tandem to give a full sweep of the windshield.    d.    Wiper control(s) shall be located within easy reach of the driver and shall be designed to move the blades from the driver’s view when the wiper control is in the “off” position.    e.    Windshield wipers shall meet the requirements of FMVSSNo. 104.    44.3(85) Wiring.      a.    All wiring shall conform to current, applicable SAE-recommended practices.    b.    All wiring shall use a standard color or number coding system or a combination of color and number. Each chassis shall be delivered with a wiring diagram that illustrates the wiring of the chassis.    c.    The chassis manufacturer of an incomplete vehicle shall install a readily accessible terminal strip or plug on the body side of the cowl, or in an accessible location in the engine compartment of vehicles designed without a cowl, that shall contain the following terminals for the body connections:    (1)   Main 100-amp body circuit.    (2)   Tail lamps.    (3)   Right turn signal.    (4)   Left turn signal.    (5)   Stop lamps.    (6)   Backup lamps.    (7)   Instrument panel lights (rheostat controlled by headlamp switch).    d.    Circuits.    (1)   An appropriate identifying diagram (coded by color or number or both) for electrical circuits shall be provided to the body manufacturer for distribution to the end user.    (2)   The headlight system must be wired separately from the body-controlled solenoid.    (3)   Wiring shall be arranged in circuits, as required, with each circuit protected by a fuse or circuit breaker or circuit protection device.     (4)   A master wiring diagram shall be supplied for each vehicle provided by the body manufacturer. Chassis wiring diagrams, including any changes to wiring made by the body manufacturer, shall also be supplied to the end user.    (5)   The following body interconnecting circuits shall be color-coded as noted, and the color of cables shall correspond to SAE J1128:FUNCTIONCOLORLeft rear directional lightYellowRight rear directional lightDark greenStoplightsRedBackup lightsBlueTaillightsBrownGroundWhiteIgnition feed, primary feedBlack    e.    Wiring shall be arranged in at least six regular circuits as follows:    (1)   Head, tail, stop (brake) and instrument panel lamps.    (2)   Clearance and step well lamps, which shall be actuated when the service door is opened.    (3)   Dome lamp.    (4)   Ignition and emergency door signal.    (5)   Turn signal lamps.    (6)   Alternately flashing signal lamps.    f.    Any of the above combination circuits may be subdivided into additional independent circuits.    g.    Whenever heaters and defrosters are used, at least one additional circuit shall be installed.    h.    Whenever possible, all other electrical functions, such as sanders and electric-type windshield wipers, shall be provided with independent and properly protected circuits.    i.    Each body circuit shall be coded by number or letter on a diagram of circuits which shall be attached to the body in a readily accessible location.    j.    The entire electrical system of the body shall be designed for the same voltage as the chassis on which the body is mounted.    k.    All wiring shall have an amperage capacity exceeding the design load by at least 25 percent. All wiring splices are to be made at an accessible location and noted as splices on wiring diagram.    l.    A body wiring diagram, of a size which can be easily read, shall be furnished with each bus body or affixed in an area convenient to the electrical accessory control panel.    m.    The body power wire shall be attached to a special terminal on the chassis.    n.    Each wire passing through a metal opening shall be protected by a grommet.    o.    Wires not enclosed within the body shall be fastened securely at intervals of not more than 18 inches. All joints shall be soldered or joined by equally effective connectors, which shall be water-resistant and corrosion-resistant.

        ITEM 3.    Amend rule 281—44.4(285) as follows:

    281—44.4(285) Construction of vehicles for children with mobility challenges.  The following shall apply to vehicles constructed for the transportation of children with mobility challenges of such severity that the children are prohibited from utilizing the regular service door entrance. Vehicles constructed for transporting these children shall meet all FMVSS relating to school bus construction and Iowa school bus construction requirements as described in rules 281—44.1(285) and 281—44.3(285). The following standards shall also apply:    44.4(1) General requirements.      a.    Certification of these vehicles as multipurpose passenger vehicles due to capacity rating shall not relieve the manufacturer of the responsibility to provide a completed vehicle meeting all FMVSS for school buses as well as rules 281—44.1(285) to 281—44.3(285) relating to the construction of a school bus.    b.    Alteration of the interior of the vehicle is permissible if all seats and barriers, component parts, anchorages, wheelchair securement devices, and placement of seats and barriers and wheelchair securement devices comply with federal requirements as of date of manufacture. All equipment must be supplied by the original manufacturer and installed per the original manufacturer’s specification. Alteration which would return the vehicle to conventional passenger seating shall include removal of all wheelchair securement devices, removal of the power lift, and rendering the special service door inoperable.    c.    Any school bus that is used for the transportation of children who are confined to a wheelchair or other restraining devices which prohibit use of the regular service entrance shall be equipped with a power lift located on the right side of the bus body andlocated either forward ofor behind the rear wheels on a TypeA, B, C, or D bus. Wheelchair lift placement behind the rear wheels is allowed on Type A buses only. See paragraph 44.4(2)“f.”    d.    The actual rated seating capacity following modification of a vehicle shall be placed at locations indicated in paragraph 44.3(36)“e.”44.3(35)“e.”    e.    Ramps are not permitted.    44.4(2) Specific requirements.      a.    Aisle.    (1)   Aisles leading from wheelchair placement(s) to the special service door and the service door shall at all times be a minimum of 30 inches wide.    (2)   Aisles leading to all the emergency doors from wheelchair placement(s) shall at all times be at least 20 inches in width.Additionally, all school buses shall provide a pathway of at least 30 inches in width leading from any wheelchair position to at least one 30-inch-wide emergency exit door.    (3)   A wheelchair securement position shall not be located directly in front of a power lift door.    b.    Barriers.    (1)   Barriers shall comply with and be installed as required by federal standards as of date of manufacture.    (2)   A heavy-duty padded barrier or stanchion shall be provided immediately to the rear of the step well opening extending from the side wall of the bus to approximately the aisle to prevent a person from accidentally falling into the step well opening from floor level. A barrier or stanchion as mentioned above shall also be placed directly behind the driver.    (3)   The power lift mechanism shall be padded and protected to prevent a child from accidentally getting any part of the child’s body caught in the power lift mechanism or special service door at any time.    (4)   All crash/restraining barriers shall be the same height as the passenger seating height in the bus.    c.    Glazing.Tinted glazing may be installed in all doors, windows, and windshield.    d.    Heaters.An additional heater(s) may be installed in the rear portion of the bus on or behind wheel wells.    e.    Identification.Buses with wheelchair lifts used for transporting physically handicapped childrenwith physical disabilities shall display universal handicapped symbolsthe International Symbol of Accessibility located on the front and rear of the vehicle below the window line. Emblems shall be white on blue, shall not exceed 12 × 12 inches in size, and may be reflectorized.    f.    Power lift.    (1)   The lifting mechanism shall be able to lift a minimum payload of 800 pounds.    (2)   The power lift shall be located on the right side of the body and in no way be attached to the exterior sides of the bus, but should be confined within the perimeter of the school bus body when not extended. The power lift shallmay be locatedeither forward ofor behind the rear wheels of the vehicle on TypeA, B, C and D buses. Wheelchair lift placement behind the rear wheels is allowed on Type A buses only.    (3)   When the platform is in the fully “up” position, it shall be locked in position mechanically by means other than a support or lug in the door.    (4)   All lift controls shall be portable and conveniently located on the inside of the bus near the special service door opening. Controls shall be easily operable from inside or outside the bus by either a platform standee or person seated in a wheelchair when the lift is in any position. A master cut-off switch controlling on/off power to the lift shall be located in the driver’s compartment. There shall be a means of preventing the lift platform from falling while in operation due to a power failure.    (5)   Power lifts shall be equipped so they may be manually raised or lowered in the event of power failure of the power lift mechanism.    (6)   The platform shall accommodate a wheelchair which is 30 inches wide. The platform shall be not less than 44 inches long, including guard panels or rails.    (7)   The power lift platform shall be covered with skid-resistant material or be designed to prevent slipping.    (8)   The lift platform shall be constructed to permit vision through that portion of the platform covering the window of the special service door when the platform is in the “up” position.    (9)   All edges of the platform shall be designed to restrain a wheelchair and to prevent the operator’s feet from being entangled during the raising and lowering process.    (10)   The platform shall be fitted on both sides with full width shields which extend above the floor line of the lift platform.    (11)   An operating safety barrier shall be affixed to the outer edge (curb end) of the platform that will prohibit the wheelchair from rolling off the platform when the lift is in any position other than fully extended to ground level. The barrier shall not be capable of being manually operated.    (12)   A self-adjusting, skid-resistant plate shall be installed on the outer edge of the platform to minimize the incline from the lift platform to the ground level. This plate, if so designed, may also suffice as the restraining device described in subparagraph (11)44.4(2)“f”(11) above.    (13)   The power lift shall be designed so the lift will not operate unless the special service door(s) is opened and the lift platform is in the “down” or horizontal position.    (14)   The lift travel shall allow the lift platform to rest securely on the ground.    (15)   A circuit breaker, fuse, or other electrical protection device shall be installed between the power source and the lift motor if electrical power is used.    (16)   When hydraulic pressure is used in the lifting process, the system shall be equipped with adjustable limit switches or bypass valves to prevent excessive pressure from building in the hydraulic system when the platform reaches the full “up” position or full “down” position.    (17)   All exposed parts of the power lift which are in direct line with the forward or rearward travel of a wheelchair student or attendant shall be padded with energy-absorbing material.    g.    Ramps.Ramps are not permitted, with the exception of the MV-1 purpose-built wheelchair accessible vehicle.    h.    Regular service entrance.    (1)   An additional fold-out or slide-out step may be provided which will provide for the step level to be no more than 6 inches from the ground level to assist persons with handicapping conditionsdisabilities that prohibit the use of the standard entrance step. This step, when stored and not in use, shall not impede or in any way block the normal use of the entrance.    (2)   On power lift-equipped vehicles, service entrance steps shall be the full width of the step well, excluding the thickness of the doors in the open position.    (3)   In addition to the standard handrail required in all buses, an additional handrail may be provided on all specially equipped school buses. If so equipped, this rail shall be located on the opposite side of the entrance door from the required rail and shall meet the same requirements for handrails.    i.    Seating and seating arrangements.    (1)   All seat spacing, seats, and related components shall comply with applicable federal standards as of date of manufacture.    (2)   All seats shall be forward facing. Side-facing seats are prohibited.    (3)   Seat frames may be equipped by the school bus body manufacturer with rings or other devices to which passenger restraint systems may be attached.    j.    Special light.Light(s) shall be placed inside the bus to sufficiently illuminate the lift area and shall be activated from the door area.    k.    Special service opening.    (1)   There shall be an enclosed service opening located on the right side (curb side) of the body forward of the rear wheels to accommodate a wheelchair lift on Type B, C and D buses. This service opening may be placed on the right side (curb side) of the body behind the rear wheels on Type A buses only to accommodate a wheelchair lift in that location.    (2)   The opening shall be at least 52 inches high and 40 inches wide and with doors open shall be of sufficient width to allow for the installation of various power lifts and related accessories as well as a lifting platform at least 32 inches wide.    (3)   The opening shall be positioned far enough to the rear of the regular service door opening to prevent interference of the special service door(s) opening with the regular service doors.    (4)   A drip molding shall be installed above the opening to effectively divert water from the entrance.    (5)   Doorposts, headers, and all floor sections around this special opening shall be reinforced to provide strength and support equivalent to adjacent side wall and floor construction of an unaltered model.    (6)   A header pad at least 3 inches wide, extending the width of special service door, shall be placed above the opening on the inside of the bus.    l.    Special service door(s).    (1)   All doors shall open outwardly.    (2)   All doors shall have positive fastening devices to hold doors in the open position.    (3)   All doors shall be equipped with heavy-duty hinges and shall be hinged to the side of the bus.    (4)   All doors shall be weather sealed; and on buses with double doors, each door shall be of the same size and constructed so a flange on the forward door overlaps the edge of the rear door when closed.    (5)   If optional power doors are installed, the design shall permit release of the doors for opening and closing by the attendant from the platform inside the bus.    (6)   When manually operated dual doors are provided, the rear door shall have at least a one-point fastening device to the header. The forward-mounted door shall have at least three-point fastening devices: One shall be to the header, one shall be to the floor line of the body, and the other shall be into the rear door. These locking devices shall afford maximum safety when the doors are in the closed position. The door and hinge mechanism shall be of a strength that will provide the same type of use as that of a standard entrance door.    (7)   If the door is made of one-piece construction, the door shall be equipped with a slidebar, cam-operated locking device.    (8)   Each door shall have installed a safety glass window, set in a waterproof manner, and aligned with the lower line of adjacent sash and as nearly as practical to the same size as other bus windows.    (9)   Door materials, panels, and structural strength shall be equivalent to the conventional service and emergency doors. Color, rub rail extensions, lettering, and other exterior features shall match adjacent sections of the body.    (10)   The door(s) shall be equipped with a device(s) that will actuate a flashing visible signal located in the driver’s compartment when the door(s) is not securely closed. (An audible signal is not permitted.)    m.    Special student restraining devices.    (1)   Each wheelchair station shall be equipped with a lap and torso restraint system that meets applicable FMVSS.    (2)   Special restraining devices such as shoulder harnesses, lap belts, and chest restraint systems may be installed to the seats providing that the devices do not require the alteration in any form of the school bus seat, seat cushion, framework, or related seat components. These restraints must be for the sole purpose of restraining passengers.    (3)   All child safety restraint systems shall comply with the requirements of FMVSSNo. 213, Child Restraint Systems.    n.    Wheelchair securement systems.    (1)   Securement systems for wheelchairs