ARC 6470C

ARC 6470C

ECONOMIC DEVELOPMENT AUTHORITY[261]

Notice of Intended Action

Proposing rule making related to butchery innovation and revitalization program and providing an opportunity for public comment

The Economic Development Authority hereby proposes to amend Chapter 51, "Butchery Innovation and Revitalization Program," Iowa Administrative Code.

Legal Authority for Rule Making

This rule making is proposed under the authority provided in Iowa Code sections 15.106A and 15E.370.

State or Federal Law Implemented

This rule making implements, in whole or in part, Iowa Code section 15E.370.

Purpose and Summary

The Butchery Innovation and Revitalization Program was created in 2021 and received an appropriation of $1 million in 2022 Iowa Acts, House File 2564.

These proposed amendments to the rules implementing the program do the following:

1. Require that applicants have an assessment of the proposed investment completed by the Center for Industrial Research and Service (CIRAS) at Iowa State University.

2. Create more flexibility in designation of the application review committee by the Authority Director, in consultation with the Iowa Secretary of Agriculture.

3. Increase the maximum award amount from $50,000 to $100,000.

4. Update the scoring criteria.

The proposed amendments have been reviewed by representatives of the Iowa Department of Agriculture and Land Stewardship.

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 Authority for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199.

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 Authority no later than 4:30 p.m. on September 13, 2022. Comments should be directed to:

Public 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 rule 261—51.1(15E) as follows:

261—51.1(15E) Purpose. Pursuant to Iowa Code section 15E.370 as enacted by 2021 Iowa Acts, House File 857, section 1, the authority is authorized to provide financial assistance to businesses for projects relating to butchery innovation and revitalization as identified in this chapter.

Item 2. Adopt the following new definition of "CIRAS" in rule 261—51.2(15E):

"CIRAS" means the center for industrial research and service at Iowa state university of science and technology.

Item 3. Adopt the following new paragraph 51.3(1)"h":

h. The applicant must have an assessment of the applicant's proposed investment completed by CIRAS prior to submission of an application.

Item 4. Amend rule 261—51.4(15E) as follows:

261—51.4(15E) Application submittal and review process.

51.4(1) The authority will develop a standardized application process and make information on applying available on the authority's website. To apply for assistance under the program, an eligible business shall submit an application to the authority in the form and manner prescribed by the authority.

51.4(2) Applications will be accepted only during established application periods as announced on the authority's website. Applications will be reviewed in the order received by the authority.

51.4(3) The authority may refuse to accept incomplete applications or may refuse to accept applications because of insufficient funds.

51.4(4) A scoring committee that includes authority and department staff as described in subrule 51.5(1) will consider, evaluate, and recommend applications for financial assistance under the program. The committee will review applications for financial assistance and score the applications according to the criteria described in subrule 51.5(2). Applications deemed to meet the minimum scoring criteria will be submitted to the board for a final funding decision.

51.4(5) The board, after considering the recommendations made by the committee, will determine which applications to fund and how much should be awarded to each applicant. The board has final decision-making authority on requests for financial assistance for the program. The director will take final action on all applications for financial assistance, except those rejected pursuant to subrule 51.4(3). The board may approve an award, decline to award, or refer an application back to staff for further review and recommendation.

51.4(6) The maximum amount of financial assistance awarded to an eligible business for all applications under the program shall not exceed $50,000 $100,000. The board may increase the maximum amount of financial assistance per eligible business if funds are made available for the program in addition to the funds appropriated by 2021 Iowa Acts, House File 871.

51.4(7) Successful applicants will be notified in writing of an award of financial assistance, including any conditions and terms of the award.

Item 5. Amend rule 261—51.5(15E) as follows:

261—51.5(15E) Application scoring criteria.

51.5(1) Application scoring. A scoring committee will be composed of at least one representative of the authority individuals with relevant expertise and experience will be appointed by the director , at least one representative of the department appointed by in consultation with the secretary, and two additional members mutually agreed upon by the director and the secretary. The committee will evaluate the applications and give them an average numerical score between 0 and 100. The board may not approve a grant for an application that receives an average score of less than 75 points.

51.5(2) Scoring criteria. The criteria under which each application will be scored are:

a. The extent to which the project benefits expands processing capacity or increases efficiency: 25 points. Projects that benefit local small-scale farmers by creating or expanding opportunities to market processed meat under private labels or by providing, provide greater flexibility or convenience to have animals processed : 25 points. Projects that increase processing capacity or efficiency, or establish an essential community asset will receive more points. Projects that are likely to negatively impact existing meat processing businesses will receive fewer points. The committee may also consider the extent of any likely negative impact.

b. The extent to which the project establishes an essential community asset: 25 points. Projects that are likely to negatively impact existing meat processing businesses will receive fewer points. The committee may also consider the extent of any likely negative impact. The sufficiency of the proposed project's financing structure, the feasibility of the sources of funds, and the appropriateness of the proposed uses of the funds: 25 points. Applicants that can demonstrate that the applicant has planned for long-term use of the project will receive more points.

c. The sufficiency of the proposed project's financing structure, the feasibility of the sources of funds, and the appropriateness of the proposed uses of the funds: 15 points. The extent to which the proposed investment is consistent with the opportunities identified in the assessment completed by CIRAS pursuant to paragraph 51.3(1)"h": 15 points.

d. The extent to which the applicant has planned for long-term use of the project and the likelihood of long-term use: 15 points.

e. d.The number and quality of jobs to be created by the applicant as a result of the project or the extent to which the proposed investment uses automation to address workforce issues: 10 15 points. Projects that create more jobs or higher quality jobs will receive more points. Factors the committee will consider in assessing the quality of jobs include, but are not limited to, wages and benefits. Projects that utilize technology to address the workforce needs of the business, resulting in a more skilled workforce or increased processing capacity, will also receive more points.

f. e.The financial need of the applicant: 10 points. Applicants that received a business improvement grant from the department for expenses incurred between March 1, 2020, and December 1, 2020, or a previous grant from the program will receive fewer points.

f. The completeness of the application information and sufficiency of detail used to describe the project in the application: 10 points.

Item 6. Rescind rule 261—51.6(15E).

Item 7. Renumber rules 261—51.7(15E) to 261—51.9(15E) as 261—51.6(15E) to 261—51.8(15E).

Item 8. Amend 261—Chapter 51, implementation sentence, as follows:

These rules are intended to implement Iowa Code section 15E.370 as enacted by 2021 Iowa Acts, House File 857, section 1.