Section 1. Section 10C.6, subsection 1, paragraph a, subparagraph (1), Code 2003, is amended to read as follows:

(1) The life science enterprise acquires the agricultural

land on or before June 30, 20042008.

Sec. 2. Section 12E.12, subsection 1, paragraph b, subparagraph (1), Code 2003, is amended to read as follows:

(1) The tax-exempt bond proceeds restricted capital funds

account. The net proceeds of tax-exempt bonds issued to

provide funds for capital projects, certain debt service, and

attorney fees related to the master settlement agreement which

the state treasurer is authorized and directed to deposit on

behalf of the state shall be deposited in the account and

shall be used to fund capital projects, certain debt service,

and the payment of attorney fees related to the master

settlement agreement. The funding of capital projects may

take the form of grants. With respect to capital projects, it

is the intent of the general assembly to fund capital projects

that qualify as vertical infrastructure projects as defined in

section 8.57, subsection 5, paragraph "c", to the extent

practicable in any fiscal year and without limiting other

qualifying capital expenditures considered and approved by a

constitutional majority of each house of the general assembly

and the governor.

Sec. 3. NEW SECTION 15E.221 ANIMAL BIOTECHNOLOGY COMMERCIALIZATION FUND.

1. An animal biotechnology commercialization fund is

created in the state treasury under the control of the

department of economic development. Moneys in the fund shall

be used to provide financial assistance in the form of grants

and loans for all of the following:

a. Constructing infrastructure and developing proprietary

biotechnology interests in order to implement life science

enterprise plans approved by the department pursuant to

section 15.104.

b. Constructing facilities for the purification of animal

life science products which facilities shall, in part, be

available in a commercially reasonable manner to other

companies engaging in the business of purification of animal

life science products. At least ten million dollars of the

total cost of constructing such a facility must be paid for

through the use of any combination of federal, local, and

private moneys.

c. Constructing commercial animal biodefense

pharmaceutical production and processing facilities in this

state, provided that an Iowa-based qualified life science

enterprise holds an equity interest in the facilities. Prior

to receiving financial assistance under this paragraph, the

recipient must be a party to a federal contract for the

construction of a facility described in this paragraph.

2. The fund shall consist of moneys appropriated by the

general assembly for deposit in the fund, and other moneys

available to and obtained or accepted by the department for

deposit in the fund. Moneys in the fund are appropriated to

the department to be used for the purposes provided in this

section.

3. Any financial assistance received from the fund shall

not be used for purposes of purchasing agricultural land.

4.

a. Applications for financial assistance for projects

described in subsection 1, paragraphs "a" and "b", shall be

filed with the department not later than May 30, 2003, and

shall be acted upon by the department not later than June 30,

2003. Administrative rules relating to the time frame for the

approval or disapproval of life science enterprise plans shall

not apply to the time frame for the application process under

this subsection.

b. Applications for financial assistance for projects

described in subsection 1, paragraph "c", shall be filed with

the department not later than July 1, 2005, and financial

assistance provided to such projects shall be expended not

later than June 30, 2006.

5. A financial assistance award approved under this

section may involve the disbursement of moneys from the fund

over a period of more than one year.

6. Notwithstanding section 8.33, all moneys in the animal

biotechnology commercialization fund which remain unexpended

or unobligated at the close of the fiscal year shall not

revert, but shall remain available for expenditure for

subsequent fiscal years. Notwithstanding section 12C.7,

interest or earnings on moneys in the fund shall be credited

to the fund.

Sec. 4.

TAX-EXEMPT BOND PROCEEDS RESTRICTED CAPITAL FUNDS ACCOUNT OF THE TOBACCO SETTLEMENT TRUST FUND — APPROPRIATION.

1. There is appropriated from the tax-exempt bond proceeds

restricted capital funds account of the tobacco settlement

trust fund established in section 12E.12 to the department of

economic development for the fiscal period beginning July 1,

2002, and ending June 30, 2005, the following amounts, or so

much thereof as is necessary, to be used for the purposes

designated:

a. For deposit in the animal biotechnology

commercialization fund created in section 15E.221 to be used

for purposes of projects described in section 15E.221,

subsection 1, paragraph "b":

FY 2002-2003 ..................................... $ 5,000,000

FY 2003-2004 ..................................... $ 5,000,000

FY 2004-2005 ..................................... $ 0

b. For deposit in the animal biotechnology

commercialization fund created in section 15E.221 to be used

for purposes of projects described in section 15E.221,

subsection 1, paragraph "c":

FY 2002-2003 ..................................... $ 0

FY 2003-2004 ..................................... $ 0

FY 2004-2005 ..................................... $ 10,000,000

2. Any financial assistance awarded from the animal

biotechnology commercialization fund using moneys from the

appropriations made under this section shall be in the form of

grants.

3. Any moneys remaining in the fund from the

appropriations under this section that are unexpended or

unobligated on June 30, 2006, shall revert to the tax-exempt

bond proceeds restricted capital funds account of the tobacco

settlement trust fund on June 30, 2006.

Sec. 5.

REBUILD IOWA INFRASTRUCTURE FUND — APPROPRIATION.

1. There is appropriated from the rebuild Iowa

infrastructure fund created in section 8.57, subsection 5,

paragraph "a", to the department of economic development for

the fiscal period beginning July 1, 2003, and ending June 30,

2005, the following amounts, or so much thereof as is

necessary, to be used for the purposes designated:

a. For deposit in the animal biotechnology

commercialization fund created in section 15E.221 to be used

for purposes of projects described in section 15E.221,

subsection 1, paragraph "a":

FY 2003-2004 ..................................... $ 0

FY 2004-2005 ..................................... $ 5,000,000

b. For deposit in the animal biotechnology

commercialization fund created in section 15E.221 to be used

for purposes of projects described in section 15E.221,

subsection 1, paragraph "b":

FY 2003-2004 ..................................... $ 5,000,000

FY 2004-2005 ..................................... $ 0

2. Any financial assistance awarded from the animal

biotechnology commercialization fund using moneys from the

appropriations made under this section shall be in the form of

loans, forgivable loans, loan guarantees, principal buy-downs,

interest buy-downs, equity-like investments, or cost

reimbursement for technical or professional management

services. For purposes of this subsection, "equity-like

investments" means the provision of assistance in such a

manner that the potential return on investment to the provider

varies according to the profitability of the company assisted.

"Equity-like investments" includes royalty arrangements,

warrant arrangements, or other similar forms of investments.

Repayments of principal and interest on loans made from the

animal biotechnology commercialization fund shall be deposited

in the rebuild Iowa infrastructure fund.

3. Any moneys remaining in the animal biotechnology

commercialization fund from the appropriations under this

section that are unexpended or unobligated on June 30, 2006,

shall revert to the rebuild Iowa infrastructure fund on June

30, 2006.

Sec. 6.

STATE BOARD OF REGENTS APPROPRIATION.

There is

appropriated from the tax-exempt bond proceeds restricted

capital funds account of the tobacco settlement trust fund

established in section 12E.12 to the state board of regents

for the fiscal year beginning July 1, 2003, and ending June

30, 2004, the following amount, or so much thereof as is

necessary, to be used for the purpose designated:

For the construction of an animal biotechnology commercial

pharmaceutical research center to be built in cooperation with

the establishment by private and local sources of an animal

biotechnology business development center:

.................................................. $ 3,000,000

Sec. 7.

EFFECTIVE DATE.

This Act, being deemed of

immediate importance, takes effect upon enactment.