1. An Iowa capital investment board is established and shall be composed of the following members:
a. The treasurer of state.
b. The director of the department*.
c. Three members selected by the governor and confirmed by the senate pursuant to section 2.32.
2. a. The three members selected by the governor shall serve six-year staggered terms as determined by the governor. A vacancy shall be filled by the governor for the remaining portion of the unexpired term. A member is eligible for reappointment.
b. Members of the board are entitled to receive a per diem as specified in section 7E.6 for each day spent in performance of duties as members and shall be reimbursed for all actual and necessary expenses incurred in the performance of duties as members.
c. The board shall annually elect a chairperson from among its members.
3. The Iowa capital investment board shall do the following:
a. Facilitate public and private investment in a series of state, regional, or national seed and venture capital funds willing to invest in Iowa seed and venture capital opportunities. Funds selected for investment must focus on economic or industry sectors targeted for development by the state. To the extent feasible, priority shall be given to state funds before consideration of regional or national funds. In selecting funds for investment, the board shall seek to maximize benefits which inure to seed and venture capital opportunities in Iowa.
b. Facilitate the creation of a small business investment company to maximize the leverage from available federal and private sources for investment in seed and venture stage companies in the state.
c. Coordinate with other existing publicly created or supported seed and venture investment funds to gain the highest investment leverage with the lowest possible administrative costs for the state.
d. Report annually to the governor and the general assembly on the investments made pursuant to this division, the current and anticipated value of such investments, the current and anticipated value of any tax credits given, and the estimated current and anticipated impact such investments have on the state.
e. Conduct an annual risk analysis which matches the current and anticipated value of investments made pursuant to this division with the current and anticipated value of any tax credits given. If the anticipated value of any tax credits given exceeds the anticipated value of investments, the department* shall establish a reserve account within the strategic investment fund sufficient to cover such losses to the general fund of the state in the event of the termination of the Iowa capital investment board.
4. If tax credits are used to facilitate investment pursuant to subsection 3, paragraph "a" or "b", the tax credits shall only be redeemed for the amount of principal invested, and only based on losses at the time of the termination or insolvency of the Iowa capital investment board.
5. The general assembly is not obligated to appropriate any moneys to pay for any defaults or to appropriate any moneys to be credited to the board programs beyond the tax credits approved in section 15E.183, and the board in administering this section shall not give or lend the credit of the state of Iowa.
6. On or before July 1, 1998, the Iowa capital investment board shall select and appoint, through a competitive selection process and based on criteria established by the board, an executive director to conduct the affairs of the board. To the extent feasible, the selection of any fund managers, investment advisors, or other consultants shall also be through a competitive selection process and based on criteria established by the board.
7. The Iowa capital investment board shall adopt procedures, policies, and rules pursuant to chapter 17A, and other administrative measures necessary to carry out the purpose of this division and administer the programs and business of the board.
97 Acts, ch 143, §2
*Department of economic development probably intended; corrective legislation is pending
© 1998 Cornell College and League of Women Voters of Iowa
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Last update: Fri Jun 5 16:07:06 CDT 1998
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