House File 615 H-1235 Amend House File 615 as follows: 1 1. Page 1, by striking lines 3 through 5 and 2 inserting: 3 < NEW SUBSECTION . 3. The corporation may establish 4 one or more innovation funds for purposes of 5 stimulating early-stage and seed capital investment in 6 the state. If a fund is > 7 2. Page 1, line 10, by striking < the > and inserting 8 < an > 9 3. Page 1, line 12, after < process. > by inserting 10 < The corporation may contract with a different entity 11 for the provision of investment management services for 12 each innovation fund. > 13 4. Page 2, by striking lines 16 through 19 and 14 inserting: 15 < b. (1) The authority shall issue one or more 16 certificates totaling the amount allowed per fiscal 17 year under paragraph “a” to one or more nonprofit 18 corporations operating an innovation fund. 19 (2) In order to receive a certificate pursuant 20 to this paragraph, a nonprofit corporation shall be 21 functioning as an innovation intermediary that is 22 aligning local technologies, assets, and resources to 23 collaborate on advancing innovation in this state, and 24 shall be in compliance with the requirements of section 25 15.107A, subsection 3. 26 (3) (a) If in a fiscal year multiple nonprofit 27 corporations qualify to receive certificates issued 28 pursuant to this paragraph, certificates shall be 29 issued in such a way that each nonprofit corporation 30 operating an innovation fund receives a pro rata share 31 of the total tax credits equal to the same proportion 32 that the outstanding certified binding investment 33 commitments to that nonprofit corporation bears to 34 the total outstanding certified binding investment 35 commitments to all qualified nonprofit corporations 36 being issued a certificate under this paragraph. 37 (b) Upon the request of the authority, a nonprofit 38 corporation operating one or more innovation funds 39 shall certify to the authority the outstanding amount 40 of binding investment commitments it has received to 41 invest in innovation funds it operates. > 42 5. Page 4, by striking line 15 and inserting: 43 < 7. 8. a. An A nonprofit corporation establishing 44 an innovation fund shall submit an application > 45 6. Page 4, line 16, by striking < shall > and 46 inserting < shall may > 47 7. Page 4, line 19, by striking < a. > and inserting 48 < a. (1) > 49 8. Page 4, line 22, by striking < b. > and inserting 50 -1- HF615.1380 (1) 85 mm/sc 1/ 3 #1. #2. #3. #4. #5. #6. #7.

< b. (2) > 1 9. Page 4, line 24, by striking < c. > and inserting 2 < c. (3) > 3 10. Page 4, by striking lines 26 and 27 and 4 inserting: 5 < (4) The fund proposes to function as an innovation 6 intermediary by aligning local technologies, assets, 7 and resources to collaborate on advancing innovation in 8 this state. 9 (5) The fund proposes to provide multiple rounds 10 of funding and early-stage private sector funding to 11 innovative businesses with a high growth potential, and 12 proposes to focus such funding on innovative businesses 13 that show a clear potential to produce commercially 14 viable products or services within a reasonable period 15 of time. 16 (6) The fund proposes to operate in a manner 17 designed to complement the purposes and further the 18 policy goals of the demonstration fund and the state 19 small business credit initiative demonstration fund 20 administered by the authority pursuant to 261 IAC 105 21 and 261 IAC 117, respectively. 22 (7) The fund proposes to evaluate all 23 prospective innovative businesses using a rigorous, 24 technology-based approach and proposes to collaborate 25 and coordinate with the authority and other state 26 and local entities in an effort to achieve policy 27 consistency. 28 (8) The fund proposes to collaborate with the 29 regents institutions of this state and to leverage 30 relationships with such institutions in order to 31 commercialize research developed at those institutions. 32 (9) The fund proposes a detailed plan to support 33 the continuum of innovation in this state by addressing 34 the need for early-stage venture capital investments. 35 (10) The fund meets any other criteria adopted by 36 the authority by rule. 37 b. The board shall certify funds in such a way that 38 not more than three funds are certified as innovation 39 funds at any one time. In determining whether to 40 certify a fund the board shall consider the following: 41 (1) The total available pool of innovation fund 42 investment tax credits. 43 (2) The size of the prospective fund as compared to 44 other existing or prospective innovation funds. 45 (3) The impact that certification of the fund would 46 have on the available pool of investment capital for 47 other existing or prospective innovation funds. 48 (4) Whether certifying the fund as an innovation 49 fund would further the economic goals of the state. > 50 -2- HF615.1380 (1) 85 mm/sc 2/ 3 #9. #10.

11. By renumbering as necessary. 1 ______________________________ LOFGREN of Muscatine -3- HF615.1380 (1) 85 mm/sc 3/ 3 #11.