House File 5

                                   HOUSE FILE       
                                   BY  THOMAS, REASONER, MURPHY, OLDSON,
                                       WHITEAD, SMITH, LYKAM, QUIRK,
                                       D. OLSON, MYERS, BUKTA, MASCHER,
                                       WHITAKER, SWAIM, JOCHUM, GASKILL,
                                       BERRY, FREVERT, WENDT, MERTZ,
                                       COHOON, WINCKLER, LENSING, STEVENS,
                                       MILLER, FORD, PETERSEN, STRUYK,
                                       FOEGE, GREIMANN, and DANDEKAR


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act creating an Iowa new economy council.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 1392HH 80
  4 tm/pj/5

PAG LIN

  1  1    Section 1.  Section 15.108, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  12.  SCIENCE AND TECHNOLOGY.  To provide,
  1  4 through the science and technology advisor appointed by the
  1  5 governor pursuant to section 15E.225, advice to state
  1  6 governmental entities, academia, the business community, and
  1  7 other constituencies regarding science and technology issues.
  1  8    Sec. 2.  NEW SECTION.  15E.221  SHORT TITLE.
  1  9    This division shall be known and may be cited as the "Iowa
  1 10 New Economy Act".
  1 11    Sec. 3.  NEW SECTION.  15E.222  PURPOSE.
  1 12    The purpose of the Iowa new economy Act is to establish a
  1 13 structure for coordinating the development and implementation
  1 14 of a technology=led economic development strategic plan to
  1 15 competitively position Iowa as a world leader in the new
  1 16 economy and create high=wage, high=growth jobs in targeted
  1 17 industry clusters.  The Iowa new economy council will work
  1 18 with the Iowa economic development board, the community
  1 19 colleges, and the state board of regents to create regional
  1 20 technology innovation networks in areas of the state with a
  1 21 high concentration of technology=intensive businesses within
  1 22 the targeted industry clusters.
  1 23    Sec. 4.  NEW SECTION.  15E.223  DEFINITIONS.
  1 24    As used in this division, unless the context otherwise
  1 25 requires:
  1 26    1.  "Board" means the Iowa economic development board
  1 27 created in section 15.103.
  1 28    2.  "Department" means the Iowa department of economic
  1 29 development created in chapter 15.
  1 30    3.  "Industry clusters" means a group of companies that
  1 31 operate in the same or a related field, are linked by buyer=
  1 32 seller relationships, common customers, or other
  1 33 relationships, and rely on an active set of relationships
  1 34 among themselves for individual efficiency and
  1 35 competitiveness.
  2  1    4.  "Industry leadership councils" means the councils
  2  2 established pursuant to section 15E.227.
  2  3    5.  "Science and technology advisor" means the person
  2  4 appointed by the governor and employed by the department
  2  5 pursuant to section 15E.225, subsection 2.
  2  6    Sec. 5.  NEW SECTION.  15E.224  INDUSTRY CLUSTERS.
  2  7    The Iowa new economy council shall define industry clusters
  2  8 from the targeted industries listed in section 15.329,
  2  9 subsection 2.
  2 10    Sec. 6.  NEW SECTION.  15E.225  IOWA NEW ECONOMY COUNCIL.
  2 11    1.  An Iowa new economy council is created.
  2 12    2.  A science and technology advisor shall be appointed by
  2 13 the governor and employed by the department.  The advisor
  2 14 shall have significant, extensive expertise in the fields of
  2 15 science and technology.  The advisor shall advise state
  2 16 governmental entities, academia, the business community, and
  2 17 other constituencies regarding science and technology issues.
  2 18    3.  The council shall initially consist of fifteen senior=
  2 19 level decision makers, who are voting members, and five ex
  2 20 officio, nonvoting members.  With the exception of the member
  2 21 designated in paragraph "f", the fifteen senior=level decision
  2 22 makers shall be appointed by the governor.  The fifteen
  2 23 senior=level decision makers include all of the following:
  2 24    a.  One representative from each of the industry leadership
  2 25 councils.  If more than three industry leadership councils are
  2 26 established, the voting membership of the council shall be
  2 27 expanded to allow one representative of each industry
  2 28 leadership council to serve on the council.
  2 29    b.  Three additional representatives of the business
  2 30 community.  Representation under this paragraph shall be from
  2 31 various=sized companies and from different geographic areas of
  2 32 the state.
  2 33    c.  Two representatives of the university of Iowa, the
  2 34 university of northern Iowa, or Iowa state university of
  2 35 science and technology designated by the state board of
  3  1 regents on a rotating basis.
  3  2    d.  Two representatives from the community college system
  3  3 on a rotating basis.
  3  4    e.  One representative of a labor union.
  3  5    f.  The director of the department.
  3  6    g.  The science and technology advisor.
  3  7    h.  One representative of the Iowa capital investment board
  3  8 created in section 15E.63.
  3  9    i.  One representative of the insurance industry.
  3 10    4.  The ex officio members of the council shall include all
  3 11 of the following:
  3 12    a.  One representative of the primary and secondary
  3 13 educational system appointed by the governor.
  3 14    b.  The president of the senate, or a member of the senate
  3 15 appointed by the president.
  3 16    c.  The minority leader of the senate, or a member of the
  3 17 senate appointed by the minority leader.
  3 18    d.  The speaker of the house of representatives, or a
  3 19 member of the house of representatives appointed by the
  3 20 speaker.
  3 21    e.  The minority leader of the house of representatives, or
  3 22 a member of the house of representatives appointed by the
  3 23 minority leader.
  3 24    5.  Appointees to the council shall be senior=level
  3 25 decision makers within their organizations.  Any designee
  3 26 serving on the council shall also be a senior=level decision
  3 27 maker who has the ability to make a decision on behalf of the
  3 28 appointee.  The appointee or designee shall not designate a
  3 29 substitute to participate in council meetings and activities.
  3 30    6.  The administration of the council shall be coordinated
  3 31 by the science and technology advisor.
  3 32    7.  The initial appointments to the new economy council
  3 33 made pursuant to subsection 3, paragraph "a", shall be made
  3 34 after the Iowa leadership councils are established.
  3 35    8.  The Iowa new economy council shall annually elect a
  4  1 chairperson from among its members.
  4  2    9.  The council shall be subject to the open meetings law
  4  3 in chapter 21 and all meetings of the council shall be
  4  4 conducted in the presence of a representative of the
  4  5 department.  The council shall be subject to the provisions of
  4  6 chapter 22.
  4  7    Sec. 7.  NEW SECTION.  15E.226  STRATEGIC FOCUS AND
  4  8 ACTIVITIES.
  4  9    1.  The strategic focus of the Iowa new economy council
  4 10 shall be to support and strengthen the competitiveness of Iowa
  4 11 businesses within each of the industry clusters.  At a
  4 12 minimum, the council shall perform all of the following
  4 13 duties:
  4 14    a.  Develop collaborative industry=led projects in the
  4 15 industry clusters.
  4 16    b.  Lead efforts to improve Iowa's competitive position in
  4 17 the industry cluster areas.
  4 18    c.  Facilitate activities designed to strengthen
  4 19 relationships and advocate collaboration among Iowa research
  4 20 institutions and Iowa's technology intensive businesses.
  4 21    d.  Develop a three=year strategic plan with an annual
  4 22 operating plan to share with the board for consideration in
  4 23 developing the department=wide strategic plan.
  4 24    2.  The Iowa new economy council shall develop and assist
  4 25 the department in implementing activities addressing all of
  4 26 the following economic foundation issues of the new economy:
  4 27    a.  Skilled and adaptable human resources.
  4 28    b.  Access to technologies on which new products and
  4 29 processes are based.
  4 30    c.  Availability of financial capital to support new
  4 31 ventures, expansion of existing companies, and reinvestment in
  4 32 transition industries.
  4 33    d.  Support of advanced physical infrastructure for
  4 34 transportation, communications, energy and water, and waste
  4 35 handling.
  5  1    e.  A review of the regulatory and taxation environment and
  5  2 business climate resulting in recommendations to balance
  5  3 competitiveness.
  5  4    3.  The council shall focus on nondiscriminatory market
  5  5 expansion and shall foster a competitive and open environment.
  5  6 The council shall not be a mechanism to allocate markets, fix
  5  7 prices, or stifle competition.
  5  8    Sec. 8.  NEW SECTION.  15E.227  INDUSTRY LEADERSHIP
  5  9 COUNCILS.
  5 10    In conjunction with the creation of the Iowa new economy
  5 11 council, industry leadership councils shall be established in
  5 12 the advanced manufacturing, information solutions, and life
  5 13 science industry clusters as well as other industry clusters
  5 14 identified by the Iowa new economy council.  The industry
  5 15 leadership councils shall be comprised of representatives of
  5 16 business and industry, academia, government, and other
  5 17 representatives identified by the Iowa new economy council.
  5 18 The industry leadership councils shall be established to
  5 19 address issues specific to the industry clusters.  The ongoing
  5 20 structure, membership, and operational objectives of the
  5 21 industry leadership councils shall be determined by the Iowa
  5 22 new economy council.
  5 23    Sec. 9.  NEW SECTION.  15E.228  FUNDING.
  5 24    The Iowa new economy council and the industry leadership
  5 25 councils shall not receive a direct appropriation from the
  5 26 state.  The department may allocate to the Iowa new economy
  5 27 council moneys that have been appropriated to the department
  5 28 for purposes identified by the council to support council
  5 29 activities.  Public resources allocated for the operation of
  5 30 the Iowa new economy council and the industry leadership
  5 31 councils or for specific projects sponsored by the Iowa new
  5 32 economy council and the industry leadership councils shall be
  5 33 received through appropriate performance agreements
  5 34 administered by the department or other appropriate public
  5 35 entities.  Private moneys secured through contributions,
  6  1 contracts, or other means shall be administered and accounted
  6  2 for as determined by the Iowa new economy council.
  6  3    Sec. 10.  NEW SECTION.  15E.229  REPORTS.
  6  4    The Iowa new economy council shall annually submit a
  6  5 written report to the governor and the general assembly
  6  6 concerning the use of resources and the results derived from
  6  7 investments in the activities sponsored by the council.
  6  8 Copies of status reports provided under any performance
  6  9 agreement with the department or other public entity shall be
  6 10 provided to the governor and the general assembly.
  6 11    Sec. 11.  NEW SECTION.  15E.230  COUNCIL COORDINATION.
  6 12    The Iowa new economy council shall work with the Iowa
  6 13 economic development board and state board of regents to
  6 14 review, evaluate, and monitor business outreach and assistance
  6 15 programs, including university technology transfer programs on
  6 16 an ongoing basis.  In reviewing, evaluating, and monitoring
  6 17 programs and activities, the council shall seek input from
  6 18 business, academia, government, and other constituencies.  The
  6 19 council shall make recommendations to the board and state
  6 20 board of regents with respect to each of the following:
  6 21    1.  Strengthening collaboration among business and industry
  6 22 and Iowa's research institutions.
  6 23    2.  Coordinating activities to facilitate the growth of the
  6 24 industry clusters.
  6 25                           EXPLANATION
  6 26    This bill creates a 20=member Iowa new economy council, 15
  6 27 of which are voting members.  The bill provides that members
  6 28 shall be senior=level decision makers within their
  6 29 organizations.
  6 30    The bill provides that the strategic focus of the council
  6 31 shall be to support and strengthen the competitiveness of Iowa
  6 32 businesses within each of the industry clusters defined by the
  6 33 council.  The bill provides that the council shall develop
  6 34 collaborative, industry=led projects; lead efforts to improve
  6 35 Iowa's competitive position in the industry cluster areas;
  7  1 facilitate activities designed to strengthen relationships and
  7  2 advocate collaboration among Iowa research institutions and
  7  3 Iowa's technology intensive businesses; and develop a three=
  7  4 year strategic plan with an annual operating plan to share
  7  5 with the Iowa economic development board.
  7  6    The bill provides that the council shall develop and assist
  7  7 the department in implementing activities addressing skilled
  7  8 and adaptable human resources; access to technologies on which
  7  9 new products and processes are based; availability of
  7 10 financial capital to support new ventures, expansion of
  7 11 existing companies, and reinvestment in transition industries;
  7 12 support of advanced physical infrastructure for
  7 13 transportation, communications, energy and water, and waste
  7 14 handling; and a review of the regulatory and taxation
  7 15 environment and business climate.
  7 16    The bill provides that industry leadership councils shall
  7 17 be established in the advanced manufacturing, information
  7 18 solutions, and life science industry clusters as well as other
  7 19 industry clusters identified by the Iowa new economy council.
  7 20 The bill provides that the structure, membership, and
  7 21 operational objectives of the industry leadership councils
  7 22 shall be determined by the Iowa new economy council.  The bill
  7 23 provides that the industry leadership councils shall address
  7 24 issues specific to the industry clusters.
  7 25    The bill provides that a science and technology advisor
  7 26 appointed by the governor and employed by the department of
  7 27 economic development shall advise state governmental entities,
  7 28 academia, the business community, and other constituencies
  7 29 regarding science and technology issues.  The bill provides
  7 30 that the science and technology advisor shall serve as a
  7 31 voting member on the Iowa new economy council and shall
  7 32 coordinate the administration of the council.
  7 33    The bill provides that the Iowa new economy council and the
  7 34 industry leadership councils shall not receive a direct
  7 35 appropriation from the state; however, the department may
  8  1 allocate to the Iowa new economy council moneys appropriated
  8  2 to the department for purposes identified by the council to
  8  3 support council activities.
  8  4    The bill requires the Iowa new economy council to annually
  8  5 submit a written report to the governor and the general
  8  6 assembly concerning the use of resources and the results
  8  7 derived from investments in the activities sponsored by the
  8  8 council.
  8  9    The bill requires the Iowa new economy council to work with
  8 10 the Iowa economic development board and the state board of
  8 11 regents to review, evaluate, and monitor business outreach and
  8 12 assistance programs, including university technology transfer
  8 13 programs on an ongoing basis.
  8 14 LSB 1392HH 80
  8 15 tm/pj/5