CHAPTER 104
TARGETED INDUSTRIES INTERNSHIP PROGRAM
261—104.1(82GA,HF829) Authority. The authority for establishing rules governing the development of the targeted industries internship program is provided in 2007 Iowa Acts, House File 829, section 1(6).
261—104.2(82GA,HF829) Purpose. The purpose of the targeted industries internship program is to link Iowa students to internship opportunities in small and medium-sized firms in the biosciences, advanced manufacturing and information technology industries and to convert interns into prospective employees.
261—104.3(82GA,HF829) Definitions.
“Board” means the Iowa economic development board established in Iowa Code section 15.103.
“Committee” means the technology commercialization committee created by the board pursuant to Iowa Code section 15.116.
“Community college” means a community college established under Iowa Code chapter 260C.
“Department” means the Iowa department of economic development.
“Internship” means temporary employment of a student that focuses on providing the student with work experience in the student’s field of study.
“Prospective employee” means a student who is anticipated to be hired upon graduation.
“Student” means a student of one of the Iowa community colleges, private colleges, or institutions of higher learning under the control of the state board of regents.
“Targeted industry” means the industries of advanced manufacturing, biosciences, and information technology.
261—104.4(82GA,HF829) Program funding.
	104.4(1) The maximum award shall not exceed $3,100 for any single internship or $9,300 for any single business.
	104.4(2) Funds shall only be used for reimbursement of wages during the designated internship period. Students hired as interns shall be paid at least twice the minimum wage.
	104.4(3) The department shall issue funds to a business based upon department approval of a completed application and the execution of a contract between the business and the department.
	104.4(4) A business may receive financial assistance in an amount of one dollar for every two dollars paid by the business to the intern.
261—104.5(82GA,HF829) Eligible business. The targeted industries internship program is available to Iowa businesses that meet all of the following criteria:
	104.5(1) An applicant must be an Iowa-based business with fewer than 500 employees, with a significant portion employed within the state of Iowa.
	104.5(2) An applicant must be engaged in one of the targeted industries of biosciences, advanced manufacturing or information technology.
	104.5(3) An applicant must offer the internship to students of Iowa community colleges, private colleges, or institutions of higher learning under the control of the state board of regents.
	104.5(4) An applicant’s summer internships must last a minimum of 8 weeks (averaging no less than 30 hours per week), and an applicant’s semester internships must last a minimum of 14 weeks (averaging no less than 10 hours per week).
261—104.6(82GA,HF829) Ineligible business. The following businesses are not eligible for this program:
	104.6(1) A business which is engaged in retail sales or which provides health services is ineligible.
	104.6(2) A business which closes or substantially reduces its workforce by more than 20 percent at existing operations in order to relocate substantially the same operations to another area of the state is ineligible for 36 consecutive months at any of its Iowa sites from the date the new establishment opens.
261—104.7(82GA,HF829) Eligible students. Students must be within one to two years of graduation and enrolled at one of Iowa’s community colleges, private colleges, or institutions of higher learning under the control of the state board of regents. The department shall encourage youth who reside in economically distressed areas, youth adjudicated to have committed a delinquent act, and youth transitioning out of foster care to participate in the targeted industries internship program.
261—104.8(82GA,HF829) Ineligible students. Students who are more than two years from graduation are ineligible. Students who are immediate family members of management employees or board members of the applicant business are ineligible.
261—104.9(82GA,HF829) Application submittal and review process.
	104.9(1) The department shall develop a standardized application and make the application available to eligible businesses. To apply for moneys from the program, a business shall submit an application to the department. Applications must be submitted to the Iowa Department of Economic Development, Innovation and Commercialization Division, 200 East Grand Avenue, Des Moines, Iowa 50309. Required forms and instructions are available at this address or at the department’s Web site at www.iowalifechanging.com.
	104.9(2) The application will be reviewed by department staff, the committee and the board. The committee will make a recommendation to the board regarding an application. The board has final decision-making authority on requests for financial assistance for this program. The board may approve, defer or deny an application.
261—104.10(82GA,HF829) Application content and other requirements.
	104.10(1) Applicants must complete an application for internship assistance and submit it to the department. Successful applicants must enter into a contract with the department prior to posting or advertising the internship.
	104.10(2) If an award is made, the business shall secure an intern within the time period stated in the contract between IDED and the business.
	104.10(3) The application shall include, but not be limited to, all of the following:
	a. 	The dates and location of the internship.
	b. 	A statement of duties the intern will be performing at the business site. The intern is to be involved in a substantive experience in one or more of the following areas: research and development; engineering; process management and production; product experimentation and analysis; product development; market research; business planning and administration. The application shall also include information regarding the intern’s work space (i.e., access to telephone, computer, and other necessary items).
	c. 	The name of the business’s representative who will train and supervise the intern.
	d. 	A statement of the anticipated workforce needs at the business, which shall include an explanation of the current workforce shortage and identify the intern’s potential for prospective employment with the business following graduation.
	104.10(4) The department reserves the right to require additional information from the business.
261—104.11(82GA,HF829) Selection process. Applications will be reviewed in the order received by the department. The board may approve, defer or deny each application for financial assistance, based on the availability of funds. The department and the committee will score applications according to the criteria specified in rule 261—104.12(82GA,HF829). To be considered for funding, an application must receive a minimum score of 65 out of a possible 100 points and meet all other eligibility criteria specified in these rules.
261—104.12(82GA,HF829) Application scoring criteria. When applications for financial assistance are reviewed, the following criteria shall be considered:
	104.12(1) The intern is involved in a substantive experience in one or more of the following areas: research and development; engineering; process management and production; product experimentation and analysis; product development; market research; business planning and administration. 25 points.
	104.12(2) The explanation of the applicant’s anticipated workforce needs and of the intern’s potential for prospective employment with the business following graduation. 20 points.
	104.12(3) The extent to which the internship duties require independent judgment, creativity, and intelligence to complete and contribute to the business’s goals or processes. 10 points.
	104.12(4) The internship will have a positive impact on the intern’s skills, knowledge and abilities. 15 points.
	104.12(5) The internship pays more than twice the minimum wage. 10 points.
	104.12(6) The business’s contribution to the internship program is above the minimum program match requirement. 10 points.
	104.12(7) Intern applications will be accepted from more than one private college, university or community college. 5 points.
	104.12(8) The application documents that all considerations, including funding required to begin the internship, have been addressed. 5 points.
261—104.13(82GA,HF829) Contract and reporting.
	104.13(1) Notice of award. Successful applicants will be notified in writing of an award of assistance, including any conditions and terms of the approval.
	104.13(2) Contract required. The department shall prepare a contract, which includes, but is not limited to, a description of the internship to be completed; conditions to disbursement; required reports; and the repayment requirements imposed in the event the business does not fulfill its obligations described in the contract and other specific repayment provisions (“clawback” provisions) to be established on an individual basis.
	104.13(3) Reporting. An applicant shall submit any information requested by the department in sufficient detail to permit the department to prepare the report pursuant to 2007 Iowa Acts, House File 829, section 10, and any other reports deemed necessary by the department, the board, the general assembly or the governor’s office.
These rules are intended to implement 2007 Iowa Acts, House File 829.
[Filed 9/20/07, Notice 8/15/07—published 10/10/07, effective 11/14/07]
[Filed emergency 2/22/08—published 3/12/08, effective 2/22/08]
[Filed 2/22/08, Notice 12/19/07—published 3/12/08, effective 4/16/08]