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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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