ARC 8454C

ARC 8454C

Rulemaking related to manufacturing 4.0 technology investment program

Pursuant to Executive Order 10 dated January 10, 2023, IEDA is rescinding Chapter 119 relating to the program and adopting a new chapter in lieu thereof. Language that duplicates statutory language or that is otherwise unnecessary has been eliminated throughout the chapter. Scoring criteria has been updated to more closely align to the intent of the program. An existing policy that excludes labor performed by a recipient’s employees from reimbursement through the program has been added to the chapter.

Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on September 18, 2024, as ARC 8223C. A public hearing was held on the following date(s):

●October 8, 2024

●October 10, 2024

No one attended the public hearings. No public comments were received. No changes from the Notice have been made.

ITEM 1.Rescind 261—Chapter 119 and adopt the following new chapter in lieu thereof:

CHAPTER 119

MANUFACTURING 4.0 TECHNOLOGY INVESTMENT PROGRAM

261—119.1(15) Purpose. The purpose of the manufacturing 4.0 technology investment program is to provide financial assistance to projects intended to lead to the adoption of, and integration of, smart technologies into existing manufacturing operations located in the state.

261—119.2(15) Definitions.

“Applicant” means a business applying for assistance under the program.

“Authority” means the economic development authority created in Iowa Code section 15.105.

“Authority’s website” means the information and related content found at www.iowaeda.com and may include integrated content at affiliate sites.

“Board” means the same as defined in Iowa Code section 15.102.

“Eligible business” means a business meeting the requirements of rule 261—119.3(15).

“Financial assistance” means the same as defined in Iowa Code section 15.102.

“Full-time equivalent job” or “full-time” means the employment of one person:

1.For 8 hours per day for a five-day, 40-hour workweek for 52 weeks per year, including paid holidays, vacations and other paid leave; or

2.The number of hours or days per week, including paid holidays, vacations and other paid leave, currently established by schedule, custom, or otherwise, as constituting a week of full-time work for the kind of service an individual performs for an employing unit, provided that the number of hours per week is at least 32 hours per week for 52 weeks per year, including paid holidays, vacations, and other paid leave.

For purposes of this definition, “employment of one person” means the employment of one natural person and does not include “job sharing” or any other means of aggregation or combination of hours worked by more than one natural person.

“Manufacturing 4.0 technology investments” or “investments” means the same as “manufacturing 4.0 technology investments” defined in Iowa Code section 15.371.

“Program” means the manufacturing 4.0 technology investment program established in this chapter.

261—119.3(15) Program eligibility. To be eligible for financial assistance under the program, an applicant must propose a manufacturing 4.0 technology investment that has not been made prior to the date of application and meet all the requirements established in Iowa Code section 15.371(5). For the purposes of determining whether an applicant employs a minimum of 3 employees and no more than 125 employees pursuant to Iowa Code section 15.371(5)“e,” “employee” means an individual filling a full-time equivalent job that is part of the payroll of the business receiving financial assistance under this program. “Employee” does not include a business’s part-time, leased, or contract employees.

261—119.4(15) Application submittal and review process.

119.4(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 applicant shall submit an application to the authority in the manner prescribed by the authority. The authority will identify specific types of investments for which it intends to provide financial assistance on the application form or forms.

119.4(2) Applications will be accepted and processed by authority staff on a continuing basis, or the authority may establish application periods as announced on the authority’s website. The authority may engage an outside technical review panel to complete technical reviews of applications. Applications will be reviewed in the order received by the authority.

119.4(3) The authority may refuse to accept incomplete applications or may refuse to accept applications because of insufficient funds.

119.4(4) The board, after considering the recommendations made by authority staff or a technical review panel, will determine the financial assistance award if the board determines that financial assistance should be awarded. The board has final decision-making authority on requests for financial assistance for the program. The board will take final action on all applications for financial assistance, except those rejected pursuant to subrule 119.4(3). The board may approve an award, decline to award, or refer an application back to staff or a technical review panel for further review and recommendation. The board will consider applications on a continuing basis.

119.4(5) An applicant may submit multiple applications for the duration of the program. However, the maximum amount of financial assistance awarded to any eligible business for all its applications under the program shall not exceed $75,000.

119.4(6) Applicants will be notified in writing of an award of financial assistance, including any conditions and terms of the award, or of a denial of an award of financial assistance.

261—119.5(15) Application scoring criteria.

119.5(1) When applications for financial assistance under the program are reviewed by authority staff or a technical review panel, the criteria below will be considered and the application scored as described.

119.5(2) The criteria under which each application will be scored are:

a.The percentage of the applicant business’s revenue derived from the sale of manufactured goods. Applicants who derive a higher percentage of revenue from the sale of manufactured goods will receive higher scores in this category.

b.The extent to which the manufacturer’s proposed manufacturing 4.0 technology investment is consistent with the opportunities identified in the assessment completed by the center for industrial research and service at Iowa state university of science and technology pursuant to Iowa Code section 15.371(5)“f.”

c.The extent to which the investment integrates smart technologies into existing manufacturing operations and the amount and scope of the business’s investment.

d.The sufficiency of the proposed investment’s financing structure, the feasibility of the sources of funds, and the appropriateness of the proposed uses of the funds.

e.The extent to which the investment will enhance an applicant’s workforce.

f.The extent to which the applicant has planned for long-term use of the manufacturing 4.0 technology investment and an overall transition to smart technologies.

g.Whether and the extent to which the business has previously received financial assistance from the program.

261—119.6(15) Contract administration.

119.6(1) The authority will prepare a contract for each award approved by the board. The contract will reflect the terms of the award and may include other terms and conditions reasonably necessary for implementation of the program pursuant to this chapter.

119.6(2) Any substantive change to a proposed investment shall require an amendment to the contract. Amendments shall be requested in writing. No amendment shall be valid until approved by the board. The authority may execute nonsubstantive or corrective changes to the contract without board approval.

261—119.7(15) Disbursement of funds. The authority will disburse funds for an investment only after a complete application has been received, an award has been approved by the board, a contract has been executed between the applicant and the authority, and all applicable conditions for disbursement have been met, including the submission of documentation pertaining to the eligible expenditures. Disbursement of funds under the contract will be on a reimbursement basis for expenses incurred by the applicant after the date of application and as provided under the contract. Expenditures for labor performed by a business’s employees are not eligible for reimbursement.

261—119.8(15) Reporting. An applicant receiving assistance under the program shall submit any information reasonably requested by the authority in sufficient detail to permit the authority to prepare any reports required by the authority, the board, the general assembly or the governor’s office.

These rules are intended to implement Iowa Code section 15.371.

[Filed 11/20/24, effective 1/15/25]

[Published 12/11/24]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 12/11/24.