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PAG LIN 1 1 Section 1. NEW SECTION. 15E.181 PURPOSE. 1 2 The purpose of this division is to enhance the quality of 1 3 life for citizens of the state by encouraging the creation of 1 4 new jobs, industry, products, and wealth through the increased 1 5 availability and accessibility to capital, particularly at the 1 6 seed capital and venture capital investment stages. 1 7 Sec. 2. NEW SECTION. 15E.182 IOWA CAPITAL INVESTMENT 1 8 BOARD. 1 9 1. An Iowa capital investment board is established and 1 10 shall be composed of the following members: 1 11 a. The treasurer of state. 1 12 b. The director of the department. 1 13 c. Three members selected by the governor and confirmed by 1 14 the senate pursuant to section 2.32. 1 15 2. a. The three members selected by the governor shall 1 16 serve six-year staggered terms as determined by the governor. 1 17 A vacancy shall be filled by the governor for the remaining 1 18 portion of the unexpired term. A member is eligible for 1 19 reappointment. 1 20 b. Members of the board are entitled to receive a per diem 1 21 as specified in section 7E.6 for each day spent in performance 1 22 of duties as members and shall be reimbursed for all actual 1 23 and necessary expenses incurred in the performance of duties 1 24 as members. 1 25 c. The board shall annually elect a chairperson from among 1 26 its members. 1 27 3. The Iowa capital investment board shall do the 1 28 following: 1 29 a. Facilitate public and private investment in a series of 1 30 regional or national seed and venture capital funds willing to 1 31 invest in Iowa seed and venture capital opportunities. Funds 1 32 selected for investment must focus on economic or industry 1 33 sectors targeted for development by the state. 1 34 b. Facilitate the creation of and the state's investment 1 35 in a small business investment company to maximize the 2 1 leverage from available federal and private sources for 2 2 investment in seed and venture stage companies in the state. 2 3 c. Coordinate with other existing publicly created or 2 4 supported seed and venture investment funds to gain the 2 5 highest investment leverage with the lowest possible 2 6 administrative costs for the state. 2 7 d. Report annually to the governor and the general 2 8 assembly on the investments made pursuant to this division, 2 9 the current and anticipated value of such investments, the 2 10 current and anticipated value of any tax credits given, and 2 11 the estimated current and anticipated impact such investments 2 12 have on the state. 2 13 4. If tax credits are used to facilitate investment 2 14 pursuant to subsection 3, paragraph "a" or "b", the tax 2 15 credits shall only be redeemed for the amount of principal 2 16 invested, and only based on losses at the time of the 2 17 termination or insolvency of the Iowa capital investment 2 18 board. 2 19 5. The general assembly is not obligated to appropriate 2 20 any moneys to pay for any defaults or to appropriate any 2 21 moneys to be credited to the board programs beyond the tax 2 22 credits approved in section 15E.183, and the board in 2 23 administering this section shall not give or lend the credit 2 24 of the state of Iowa. 2 25 6. On or before July 1, 1998, the Iowa capital investment 2 26 board shall select and appoint, through a competitive 2 27 selection process and based on criteria established by the 2 28 board, an executive director to conduct the affairs of the 2 29 board. To the extent feasible, the selection of any fund 2 30 managers, investment advisors, or other consultants shall also 2 31 be through a competitive bid procedure and based on criteria 2 32 established by the board. 2 33 7. The Iowa capital investment board shall adopt 2 34 procedures, policies, rules pursuant to chapter 17A, and other 2 35 administrative measures necessary to carry out the purpose of 3 1 this division and administer the programs and business of the 3 2 board. 3 3 Sec. 3. NEW SECTION. 15E.183 TAX CREDITS. 3 4 1. The state of Iowa shall issue tax credits to the 3 5 department of revenue and finance equaling fifty million 3 6 dollars. The tax credits shall only be used as directed by 3 7 the Iowa capital investment board for purposes consistent with 3 8 section 15E.182, subsection 3, paragraphs "a" and "b". If the 3 9 tax credits are claimed, they may be claimed as either a 3 10 corporate or individual tax credit. An individual may claim 3 11 the credit allowed a partnership, subchapter S corporation, 3 12 estate, or trust electing to have the income taxed directly to 3 13 the individual. The amount claimed by the individual shall be 3 14 based on the pro rata share of the individual's earnings from 3 15 the partnership, subchapter S corporation, estate, or trust. 3 16 Any tax credit in excess of the taxpayer's liability for the 3 17 tax year may be credited to the tax liability for the 3 18 following five years or until depleted, whichever is earlier. 3 19 2. The department of revenue and finance shall, in 3 20 consultation with the Iowa capital transition board, develop a 3 21 system for the registration, issuance, transfer, or redemption 3 22 of tax credits issued by the state under this section. The 3 23 department shall also, in consultation with the Iowa capital 3 24 transition board, adopt any other policies, procedures, or 3 25 rules pursuant to chapter 17A necessary for the administration 3 26 of tax credits issued by the state under this section. 3 27 Sec. 4. NEW SECTION. 15E.184 SUPPORT. 3 28 The department shall provide staff assistance, physical 3 29 facilities, and other support as necessary. 3 30 Sec. 5. TERMINATION OF THE IOWA SEED CAPITAL CORPORATION. 3 31 On or before June 30, 1998, the board of directors of the Iowa 3 32 seed capital corporation shall wind up the affairs of the 3 33 corporation, including the transfer of remaining assets and 3 34 liabilities to the Iowa capital investment board, termination 3 35 of staff, and dissolution of the corporation. In the event 4 1 that the remaining assets and liabilities cannot be 4 2 transferred to the Iowa capital investment board, the board of 4 3 directors of the Iowa seed capital corporation shall liquidate 4 4 all assets, settle existing liabilities, and transfer 4 5 remaining moneys to the general fund of the state. 4 6 Sec. 6. IOWA CAPITAL TRANSITION BOARD. 4 7 1. The Iowa capital transition board is created to 4 8 coordinate the transition from the state's present seed and 4 9 venture capital activity to the opportunities provided by the 4 10 Iowa capital investment board. 4 11 2. The membership on the Iowa capital transition board 4 12 shall consist of all of the following members: 4 13 a. The treasurer of state. 4 14 b. The director of the department. 4 15 c. The administrator of the Iowa public employees' 4 16 retirement system. 4 17 d. The chairperson of the board of directors of the Iowa 4 18 seed capital corporation. 4 19 e. Three other private citizen members selected by a 4 20 majority of the Iowa capital transition board members 4 21 designated in paragraphs "a" through "d". Selection shall be 4 22 based on established experience, expertise, and background in 4 23 the areas of venture capital investments, entrepreneurial 4 24 businesses, and seed and venture capital issues in general. 4 25 3. The Iowa capital transition board shall select a 4 26 chairperson from among its members once all of the members of 4 27 the board have been selected. 4 28 4. The duties of the Iowa capital transition board shall 4 29 include, but are not limited to, the following: 4 30 a. Advise and consult with the department of revenue and 4 31 finance in the development of the capital tax credits system. 4 32 b. Advise and consult with the board of directors of the 4 33 Iowa seed capital corporation in the transition of Iowa seed 4 34 capital corporation assets and liabilities to the Iowa capital 4 35 investment board. 5 1 c. Advise and consult with the board of directors of the 5 2 department of economic development on the coordination of 5 3 existing department financial assistance programs with the 5 4 seed and venture capital opportunities provided by this 5 5 division. 5 6 d. Provide recommendations to the Iowa capital investment 5 7 board regarding the carrying out of the Iowa capital 5 8 investment board's duties. 5 9 5. The department of economic development shall provide 5 10 the board with staff assistance, physical facilities, and 5 11 other support as necessary. 5 12 6. The existence of the Iowa capital transition board 5 13 shall be terminated on July 1, 1998, unless the board is 5 14 terminated at an earlier time by a majority vote of the 5 15 members. 5 16 Sec. 7. EFFECTIVE DATE. This Act, being deemed of 5 17 immediate importance, takes effect upon enactment. 5 18 EXPLANATION 5 19 This bill provides for the creation of the Iowa capital 5 20 investment board. The board shall consist of the treasurer of 5 21 state, the director of the department of economic development, 5 22 and three members to be selected by the governor. The bill 5 23 provides that the board has the following four functions: 5 24 1. Facilitate public and private investment in regional or 5 25 national seed and venture capital funds willing to invest in 5 26 Iowa seed and venture capital opportunities in targeted 5 27 sectors. 5 28 2. Facilitate the creation of and the state's investment 5 29 in a small business investment company. 5 30 3. Coordinate with other existing publicly created or 5 31 supported seed and venture investment funds. 5 32 4. Report annually to the governor and the general 5 33 assembly regarding the current and anticipated value of the 5 34 investments, tax credits, and impact of the investments on the 5 35 state. 6 1 The bill provides that the tax credits shall only be 6 2 redeemed for the amount of principal invested, and only based 6 3 on losses at the time of the termination or insolvency of the 6 4 Iowa capital investment board. 6 5 The bill provides that the Iowa capital investment board 6 6 shall select and appoint, through a competitive bid process, 6 7 an executive director to conduct the affairs of the board. To 6 8 the extent feasible, any fund managers, investment advisors, 6 9 or other consultants shall be selected in the same manner. 6 10 The board shall adopt procedures, policies, administrative 6 11 rules, and other administrative measures necessary to carry 6 12 out the purpose of this Act. 6 13 The bill provides that the state shall issue $50,000,000 in 6 14 tax credits to be held by the department of revenue and 6 15 finance. The tax credits shall only be used as directed by 6 16 the Iowa capital investment board for purposes consistent with 6 17 this chapter. If the tax credits are claimed, they may be 6 18 claimed as either a corporate or individual tax credit. The 6 19 department of revenue and finance, in consultation with the 6 20 Iowa capital transition board, shall develop a system for the 6 21 registration, issuance, transfer, or redemption of the tax 6 22 credits. 6 23 The bill provides that the department of economic 6 24 development shall provide staff assistance, physical 6 25 facilities, and other support as necessary. 6 26 The bill provides that the Iowa seed capital corporation 6 27 shall wind up its affairs on or before July 1, 1998. The 6 28 winding up of affairs shall include the transfer of remaining 6 29 assets and liabilities to the Iowa capital investment board, 6 30 termination of staff, and dissolution of the corporation. 6 31 The bill provides for the establishment of the Iowa capital 6 32 transition board. This board shall coordinate the transition 6 33 from the state's present seed and venture capital activity to 6 34 the opportunities provided by the Iowa capital investment 6 35 board. The duties of the Iowa capital transition board shall 7 1 include the following: 7 2 1. Advise and consult with the department of revenue and 7 3 finance in the development of the capital tax credits system. 7 4 2. Advise and consult with the Iowa seed capital 7 5 corporation in the transition of the Iowa seed capital 7 6 corporation assets and liabilities to the Iowa capital 7 7 investment board. 7 8 3. Advise and consult with the board of directors of the 7 9 department of economic development on the coordination of 7 10 existing department financial assistance programs with the 7 11 seed and venture capital opportunities provided for in this 7 12 Act. 7 13 4. Provide recommendations to the Iowa capital investment 7 14 board regarding the carrying out of the Iowa capital 7 15 investment board's duties. 7 16 The bill provides that the department of economic 7 17 development shall provide assistance to the Iowa capital 7 18 transition board as necessary. The bill provides that the 7 19 existence of the Iowa capital transition board shall terminate 7 20 on July 1, 1998, unless the board is terminated at an earlier 7 21 time by a majority vote of its members. 7 22 LSB 2157SC 77 7 23 tm/cf/24
Text: SSB00230 Text: SSB00232 Text: SSB00200 - SSB00299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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