PART I
DEPARTMENT STRUCTURE
CHAPTER 1
ORGANIZATION
261—1.1(15) Mission. The Iowa department of economic development was established in 1986 pursuant to Iowa Code chapter 15. The authority delegated to the department had previously been delegated to the Iowa development commission and the office for planning and programming. The mission of the Iowa department of economic development is to continually improve the economic well-being of all Iowans by working in focused partnerships with businesses, entrepreneurs, communities and educational entities. The department’s primary responsibilities are in the areas of finance, marketing, local government and service coordination, exporting, tourism, job training and entrepreneurial assistance, and small business.
261—1.2(15) Definitions. As used in these rules, unless the context otherwise requires:
“Board” or “IDED board” means the Iowa economic development board created by Iowa Code chapter 15.
“Department” or “IDED” means the Iowa department of economic development authorized by Iowa Code chapter 15.
“Director” means the director of the Iowa department of economic development or the director’s designee.
[ARC 7970B, IAB 7/15/09, effective 7/1/09]
261—1.3(15) Iowa department of economic development board.
	1.3(1) Composition.
	a. 	Board size. The board consists of 15 voting members appointed by the governor and 7 ex officio nonvoting members. The ex officio nonvoting members are 4 legislative members, 2 state senators and 2 state representatives; 1 president, or the president’s designee, of the University of Northern Iowa, University of Iowa, or Iowa State University of Science and Technology designated by the state board of regents on a rotating basis; 1 president, or the president’s designee, of a private college or university appointed by the Iowa association of independent colleges and universities; and 1 superintendent, or the superintendent’s designee, of a merged area school, appointed by the Iowa association of community college presidents.
	b. 	Terms. Board members are appointed for four-year terms that begin and end as provided by Iowa Code section 69.19.
	1.3(2) Meetings.
	a. 	The board generally meets monthly at the department’s offices located at 200 East Grand Avenue in Des Moines, Iowa. By notice of the regularly published meeting agendas, the board and its committees may hold regular or special meetings at other locations within the state. Meeting agendas are available on the department’s Web site at www.iowalifechanging.com.
	b. 	The board shall meet in May of each year for the purpose of receiving recommendations from the nominations committee, if established by the chairperson, and electing one of its voting members as chairperson and one of its voting members as vice chairperson. Nominations may also be made from the floor at the time of the election provided the consent of the nominee has been obtained. The chairperson and the vice chairperson shall not be from the same political party. The board shall meet at the call of the chairperson or when any eight members of the board file a written request with the chairperson for a meeting. Written notice of the time and place of each meeting shall be given to each member of the board. A majority of the voting members constitutes a quorum.
	c. 	Any interested party may attend and observe board and committee meetings except for such portion as may be closed pursuant to Iowa Code section 21.5.
	d. 	Observers may use cameras or recording devices during the course of a meeting so long as the use of such devices does not materially hinder the proceedings. The chairperson may order that the use of these devices be discontinued if they cause interference and may exclude any person who fails to comply with that order.
	e. 	Open session and closed session proceedings are electronically recorded. Minutes of open meetings are available for viewing at the department’s offices.
	1.3(3) Duties. The board shall perform the duties as outlined in Iowa Code section 15.104, and other functions as necessary and proper to carry out its responsibilities.
	1.3(4) Board committees. The board shall establish the following statutorily authorized committees: a due diligence committee pursuant to Iowa Code section 15.103(6), a loan and credit guarantee committee pursuant to Iowa Code section 15.103(6) as amended by 2009 Iowa Acts, Senate File 344, section 18, and a technology commercialization committee pursuant to Iowa Code section 15.116 as amended by 2009 Iowa Acts, Senate File 344, section 22. The board may, from time to time, establish other standing committees that the board members deem necessary to assist the board in carrying out its duties. Meetings of standing committees are open to the public pursuant to Iowa Code chapter 21. The board chairperson may appoint such other ad hoc advisory committees as deemed necessary for specific purposes. An ad hoc committee appointed by the chairperson shall be comprised of less than a quorum of the board. Meetings of ad hoc committees or subcommittees appointed by the board chairperson are not open to the public.
	1.3(5) Standing committees.
	a. 	Due diligence committee. The due diligence committee shall be an advisory committee composed of voting members of the board elected annually by the voting members of the board. The size of the committee and the terms of committee members will be established annually by the board. Duties of the due diligence committee include, but are not limited to, carrying out any duties assigned by the board in relation to programs administered by the department, reviewing applications for financial assistance, conducting a thorough review of proposed projects and making recommendations to the board regarding funding. A majority of committee members constitutes a quorum. Nonvoting, ex officio members of the board may be appointed by the chairperson of the due diligence committee to serve on the due diligence committee as nonvoting, ex officio members.
	b. 	Loan and credit guarantee committee. The loan and credit guarantee committee shall be an advisory committee composed of voting members of the board elected annually by the voting members of the board. The size of the committee and the terms of committee members will be established annually by the board. Duties of the loan and credit guarantee committee include, but are not limited to, carrying out any duties assigned by the board in relation to the loan and credit guarantee program administered by the department, reviewing loan and credit guarantee applications and making recommendations to the board regarding funding. A majority of committee members constitutes a quorum. Nonvoting, ex officio members of the board may be appointed by the chairperson to serve on the loan and credit guarantee committee as nonvoting, ex officio committee members. The loan and credit guarantee program was repealed by 2009 Iowa Acts, Senate File 344. This board committee shall continue to exist until the program has been closed out.
	c. 	Technology commercialization committee. To evaluate and approve funding for projects and programs under Iowa Code section 15G.111 as amended by 2009 Iowa Acts, Senate File 344, section 2, the board shall create a technology commercialization committee composed of members with expertise in the areas of biosciences, engineering, manufacturing, pharmaceuticals, materials, information solutions, software, and energy. At least one member of the technology commercialization committee shall be a member of the economic development board. The size of the committee and the terms of committee members will be established annually by the board. An organization designated by the department, composed of members from both the public and private sectors and composed of subunits or subcommittees in the areas of already identified bioscience platforms, education and workforce development, commercialization, communication, policy and governance, and finance, shall provide funding recommendations to the technology commercialization committee. A majority of committee members constitutes a quorum.
	d. 	Community and workforce development committee. The community and workforce development committee shall be an advisory committee to the board on workforce development matters. The committee shall review and make recommendations regarding programs such as CDBG and HOME programs which include housing, public infrastructure and public facilities funding programs; main street Iowa and downtown resource center; tourism office; training programs established by Iowa Code chapters 260E, 260F and 260G; workforce and economic development training fund; and programs administered by the innovation and commercialization division such as internship, career awareness, up-skilling and related programs.
	1.3(6) Ad hoc committees. The board chairperson or committee chairpersons, as applicable, may appoint ad hoc advisory committees and subcommittees that meet for specific, limited purposes including but not limited to:
	a. 	Nominations committee. Prior to May 1 of each year, the board chairperson may appoint a nominations committee comprised of voting members of the board for the purpose of developing recommendations to the full board for the election of a board chairperson, vice-chairperson, and membership on the board’s standing committees. Upon recommendation of the nominations committee, the board shall elect the members of the committees, and the board chairperson shall designate the chairpersons and vice-chairpersons of all committees.
	b. 	Finance review committee. The board chairperson may appoint a finance review committee comprised of voting members of the board for the purpose of periodically meeting with department officials to review the department’s regularly maintained financial records and other financial information requested by the board. The finance review committee may also attend audit entrance and exit interviews conducted by the auditor of state with department officials. The finance review committee is advisory only and may provide recommendations to the board.
	c. 	Due diligence subcommittee. The due diligence committee chairperson may appoint a due diligence subcommittee comprised of voting members of the board for the purpose of reviewing requests for project extensions, amended awards, workouts and project restructures. The due diligence subcommittee is advisory only and may provide recommendations to the due diligence committee.
	1.3(7) Appeals of department of revenue decisions—wage-benefit tax credit program appeals. A business whose application for a wage-benefit tax credit has been denied by the department of revenue may appeal the decision to the board. The appeal must be made in writing and received by the department within 30 days of the date on the notice of denial sent to the business by the department of revenue. The board may uphold or overturn the decision of the department of revenue. If the IDED board overturns the decision of the department of revenue, the department of revenue will be instructed, subject to availability, to issue a tax credit certificate.
[ARC 7970B, IAB 7/15/09, effective 7/1/09]
261—1.4(15) Department structure.
	1.4(1) General. The department’s organizational structure consists of the director, deputy director, and four divisions.
	1.4(2) Director. The Iowa department of economic development is administered by a director appointed by the governor, who serves at the pleasure of the governor and is subject to confirmation by the senate. The director is the chief administrative officer of the department and in that capacity administers the programs and services of the department in compliance with applicable federal and state laws and regulations. The duties of the director are as authorized in Iowa Code section 15.106 and include preparing a budget subject to board approval, establishing an internal administrative structure and employing personnel, reviewing and submitting to the board legislative proposals, recommending rules to the board, reporting to the board on grants and contracts awarded by the department, and other actions to administer and direct the programs of the department.
The administrators of the four divisions and the deputy director report to the director.
	1.4(3) Deputy director. The deputy director, appointed by the director, directs and administers the department in the director’s absence.
	1.4(4) Divisions. The director has established the following administrative divisions within the department in order to most efficiently and effectively carry out the department’s responsibilities:
	1.	Administration division;
	2.	Business development division;
	3.	Community development division; and
	4.	Innovation and commercialization division.
	1.4(5) Attachment for administrative purposes; board support. The Iowa department of economic development provides office space and staff support to the city development board pursuant to Iowa Code sections 368.9 and 15.108(3)“a”(2). The department provides administrative support to the vision Iowa board pursuant to Iowa Code section 15F.104 and the renewable fuel infrastructure board pursuant to Iowa Code section 15G.202.
	1.4(6) Advisory committees. The director may appoint committees to serve in an advisory capacity to the department that are deemed necessary to accomplish the work of the department. The size of the committee and the terms of committee members will be established by the director. These committees may be dissolved as deemed appropriate by the director, and other committees may from time to time be established for specific purposes.
261—1.5(15) Information. The general public may obtain information about the Iowa department of economic development by contacting the Iowa Department of Economic Development, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)242-4700; or through the department’s Web site at www.iowalifechanging.com.
These rules are intended to implement Iowa Code chapter 15 as amended by 2009 Iowa Acts, Senate File 344, chapter 15G as amended by 2009 Iowa Acts, Senate File 344, and section 17A.3.
[Filed emergency 12/19/86—published 1/4/87, effective 12/19/86]
[Filed emergency 6/10/88—published 6/29/88, effective 7/1/88]
[Filed 6/26/95, Notice 5/10/95—published 7/19/95, effective 8/23/95]
[Filed 1/22/99, Notice 9/9/98—published 2/10/99, effective 3/17/99]
[Filed 6/20/03, Notice 5/14/03—published 7/9/03, effective 8/13/03]
[Filed emergency 7/7/05—published 8/3/05, effective 7/7/05]
[Filed 10/21/05, Notice 8/3/05—published 11/9/05, effective 12/14/05]
[Filed emergency 6/15/07—published 7/4/07, effective 6/15/07]
[Filed 8/22/07, Notice 7/4/07—published 9/26/07, effective 10/31/07]
[Filed 2/22/08, Notice 12/19/07—published 3/12/08, effective 4/16/08]
[Filed Emergency ARC 7970B, IAB 7/15/09, effective 7/1/09]