Senate File 2213 - Introduced
SENATE FILE
BY HATCH
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act establishing a technology and commercialization foundation
2 of Iowa and fund.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6006XS 81
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PAG LIN
1 1 Section 1. Section 12.30, subsection 1, paragraph a, Code
1 2 Supplement 2005, is amended to read as follows:
1 3 a. "Authority" means a department, or public or quasi=
1 4 public instrumentality of the state including, but not limited
1 5 to, the authority created under chapter 12E, 16, 16A, 175,
1 6 257C, 261A, 327I, or 463C, and section 15E.152 which has the
1 7 power to issue obligations, except that "authority" does not
1 8 include the state board of regents or the Iowa finance
1 9 authority to the extent it acts pursuant to chapter 260C.
1 10 "Authority" also includes a port authority created under
1 11 chapter 28J.
1 12 Sec. 2. NEW SECTION. 15E.152 TECHNOLOGY AND
1 13 COMMERCIALIZATION FOUNDATION OF IOWA ESTABLISHED == MISSION.
1 14 The general assembly finds and declares that the public
1 15 good requires that Iowa successfully participate and compete
1 16 in the emerging world economy. A technology and
1 17 commercialization foundation of Iowa is established to
1 18 formulate and implement plans and programs for the development
1 19 of advanced sciences and technologies and to facilitate their
1 20 commercial application within the state, including determining
1 21 the needs of individual Iowa businesses and farms for
1 22 scientific and technological innovations to improve products
1 23 and processes, and encouraging the transfer of the technology
1 24 from the laboratory to the market.
1 25 The mission of the foundation shall include but is not
1 26 limited to the following:
1 27 1. A program to identify barriers which may hinder the
1 28 development and exploitation of technology in the global
1 29 economy.
1 30 2. Continued development of Iowa's capacity for scientific
1 31 and technological innovation.
1 32 3. A cooperative, coordinated program of forecasting,
1 33 assessment, development, and commercial transfer involving
1 34 Iowa's capacity for scientific and technological innovation.
1 35 4. Formulation of a long=range strategic plan to guide
2 1 state investment in applied research, development, and
2 2 commercial transfer of selected scientific and technological
2 3 innovation and in the development of Iowa science
2 4 infrastructure.
2 5 5. A mechanism to organize funding from a variety of
2 6 sources to support the development and commercial transfer of
2 7 scientific and technological innovation.
2 8 6. An outreach program to actively seek and improve
2 9 products and processes with Iowa's scientific and
2 10 technological innovations.
2 11 7. Establishment of a seed capital fund which shall be
2 12 administered by the board to provide seed capital for the
2 13 commercialization of products, or the development of processes
2 14 or materials through research at Iowa colleges and
2 15 universities or by private industry.
2 16 The foundation consists of a board of directors, an
2 17 advisory council, and staff.
2 18 Sec. 3. NEW SECTION. 15E.153 AUTHORIZED CORPORATION.
2 19 A technology and commercialization foundation of Iowa shall
2 20 be incorporated under chapter 504. The foundation shall not
2 21 be regarded as a state agency, except for purposes of chapter
2 22 17A. A member of the board of directors is not considered a
2 23 state employee, except for purposes of chapter 669. A natural
2 24 person employed by the foundation is a state employee for
2 25 purposes of the Iowa public employees' retirement system,
2 26 state health and dental plans, and other state employee
2 27 benefit plans and chapter 669. Chapters 8, 8A, and 20, and
2 28 other provisions of law that relate to requirements or
2 29 restrictions dealing with state personnel or state funds, do
2 30 not apply to the foundation or any employees of the board or
2 31 the foundation except to the extent provided in this chapter.
2 32 Sec. 4. NEW SECTION. 15E.154 BOARD OF DIRECTORS.
2 33 1. The board of directors of the foundation shall consist
2 34 of thirteen voting members as follows:
2 35 a. The president of the state board of regents who shall
3 1 serve as the president of the board.
3 2 b. Two members of the state board of regents appointed by
3 3 the governor and confirmed by the senate pursuant to section
3 4 2.32.
3 5 c. The director of the department of economic development,
3 6 or the director's designee.
3 7 d. Two members of the Iowa economic development board
3 8 appointed by the governor and confirmed by the senate pursuant
3 9 to section 2.32.
3 10 e. One member appointed by the governor and confirmed by
3 11 the senate pursuant to section 2.32.
3 12 f. The president, or the president's designee, of the
3 13 state university of Iowa, the university of northern Iowa, and
3 14 the Iowa state university of science and technology.
3 15 g. One member of the Iowa bioscience advisory council
3 16 established in section 15E.160, appointed by the governor and
3 17 confirmed by the senate pursuant to section 2.32.
3 18 h. One member of the Iowa advanced manufacturing advisory
3 19 council established in section 15E.160, appointed by the
3 20 governor and confirmed by the senate pursuant to section 2.32.
3 21 i. One member of the Iowa information technology advisory
3 22 council established in section 15E.160, appointed by the
3 23 governor and confirmed by the senate pursuant to section 2.32.
3 24 2. The terms of the appointed members shall be staggered
3 25 as determined by vote of the board at its first meeting after
3 26 July 1, 2007. A vacancy shall be filled by the appointing
3 27 authority. Members are eligible for actual expense
3 28 reimbursement while fulfilling duties of the board.
3 29 Sec. 5. NEW SECTION. 15E.155 GENERAL POWERS AND DUTIES.
3 30 The board of directors shall have all the general powers
3 31 needed to carry out its mission and duties including but not
3 32 limited to the following:
3 33 1. To prepare and adopt a strategic plan as defined in
3 34 section 15E.157.
3 35 2. To fund research projects as described in section
4 1 15E.158.
4 2 3. To sue and be sued in its own name.
4 3 4. To adopt a corporate seal.
4 4 5. To adopt bylaws for its management consistent with the
4 5 provisions of this division.
4 6 6. To make and execute agreements, contracts, and other
4 7 instruments, with any public or private entity, including but
4 8 not limited to a state, federal, or other governmental agency.
4 9 7. To accept contributions, including but not limited to
4 10 appropriations, gifts, grants, loans, services, or other aid
4 11 or assistance from public or private entities. A record of
4 12 all contributions, stating the type, amount, and donor, shall
4 13 be clearly set forth in the board's annual report along with a
4 14 record of other receipts.
4 15 8. To establish policy in the general administration of
4 16 the affairs of the foundation.
4 17 9. To perform the following duties:
4 18 a. Employ and direct staff to operate and manage the
4 19 foundation under the direction of the board. Foundation staff
4 20 shall not also be employed by a state agency or department.
4 21 b. Receive and approve an annual report of the
4 22 foundation's activities and fiscal condition, including:
4 23 (1) Matters relating to operations and accomplishments.
4 24 (2) A summary of receipts and expenditures, in accordance
4 25 with the classifications the board establishes for its
4 26 operating accounts.
4 27 (3) A summary of assets and liabilities and the status of
4 28 special accounts.
4 29 (4) A statement of proposed and projected activities.
4 30 (5) Recommendations to the general assembly.
4 31 (6) An identification of performance goals of the
4 32 foundation and the extent of progress during the reporting
4 33 period in attaining the goals.
4 34 c. Collect pertinent information on research in process
4 35 and funding requests where appropriate at Iowa state
5 1 university of science and technology, the university of Iowa,
5 2 and the university of northern Iowa for the purpose of
5 3 encouraging technology transfer where appropriate.
5 4 10. To seek to achieve through the powers of the board the
5 5 findings and mission described in section 15E.152.
5 6 11. To collaborate with entities provided for in chapter
5 7 262B.
5 8 12. To provide as necessary staff services for the
5 9 advisory councils.
5 10 13. To convene the advisory councils annually to receive
5 11 the board of directors' recommendations.
5 12 14. To establish committees of business, agriculture,
5 13 academic specialists, or others as deemed necessary.
5 14 15. Submit an annual report to the governor, the secretary
5 15 of the senate, and the chief clerk of the house of
5 16 representatives, not later than November 1 of each year.
5 17 16. To collaborate with seed capital entities to acquire
5 18 new technology where appropriate.
5 19 17. To broker relationships furthering the mission of the
5 20 foundation among state board of regents institutions of higher
5 21 education, community colleges, and private colleges and
5 22 universities, and private investors, entrepreneurs, and
5 23 executives of existing businesses.
5 24 18. To promote communication, inventory resources, and
5 25 assist in the coordination of business and technology
5 26 assistance activities of state board of regents institutions,
5 27 community colleges, and private colleges and universities with
5 28 the private sector, the department of economic development,
5 29 and local and regional economic development groups.
5 30 Sec. 6. NEW SECTION. 15E.157 STRATEGIC PLAN FOR SCIENCE
5 31 AND TECHNOLOGY DEVELOPMENT.
5 32 1. The foundation shall prepare a strategic plan for
5 33 development of advanced technologies in Iowa. The plan shall
5 34 serve as the basis for general foundation activities.
5 35 2. The plan shall set forth the foundation's findings with
6 1 regard to fields of scientific research which offer the
6 2 greatest potential for commercial development within the
6 3 state. The plan shall propose programs to enhance the
6 4 effectiveness of Iowa university and college and private
6 5 sector research facility participation in such fields of
6 6 research and for improving the transfer of research technology
6 7 to the private sector.
6 8 3. The plan shall include findings and recommendations for
6 9 the coordination of activities of technology centers operated
6 10 by regents universities, the center for industrial research
6 11 and service, small business development centers, and programs
6 12 of the department of economic development, all of which shall
6 13 cooperate with the foundation in formulation of the plan.
6 14 4. The plan shall be formulated in cooperation with
6 15 university=based research consortia at the three regents
6 16 universities, private colleges and universities, community
6 17 colleges, and private business. The plan shall include
6 18 findings with regard to the research interest of private
6 19 business and agriculture, improving the accessibility of
6 20 private business to university technology resources,
6 21 identification of barriers to effective technology transfer,
6 22 and fields of research having potential for commercial
6 23 utilization by Iowa businesses and farms. The plan shall
6 24 include the availability and possible acquisition of advanced
6 25 technology nationally and internationally for transfer to Iowa
6 26 technological projects.
6 27 5. The plan shall be formulated to provide for the
6 28 strengthening and expansion of existing industry and
6 29 agriculture, the creation of new business where deemed
6 30 necessary and feasible, and the attraction of technology=based
6 31 businesses to the state.
6 32 6. The plan shall include directions for participation by
6 33 the foundation, through direct investment or in partnership or
6 34 joint venture with a commercial investor or other financial
6 35 source, in providing funds for development of existing or new
7 1 businesses in Iowa engaged in commercial exploitation of
7 2 products or technologies related to the research interests of
7 3 the foundation.
7 4 Sec. 7. NEW SECTION. 15E.158 FUNDING OF ACTIVITIES.
7 5 1. The foundation may receive state appropriations and
7 6 other resources for purposes including but not limited to the
7 7 following:
7 8 a. To provide financial assistance to research projects
7 9 which are consistent with the commercial development
7 10 objectives of the strategic plan and which involve
7 11 collaboration between an Iowa college, community college, or
7 12 university and a private business. The foundation shall
7 13 provide a peer review process for projects and research funded
7 14 by the foundation.
7 15 b. To undertake market studies and other analyses of
7 16 commercial applications of existing or potential research and
7 17 development efforts.
7 18 c. To provide applied technology outreach services and
7 19 programs.
7 20 d. To review existing licenses and patents and bring
7 21 potentially applicable information to the attention of the
7 22 board and the Iowa=based industries for which the patent and
7 23 license information might be applicable.
7 24 e. To review current research.
7 25 f. To regularly monitor the industrial and agricultural
7 26 base of Iowa and, when possible, to encourage contact between
7 27 research efforts and appropriate industries.
7 28 2. The foundation shall have authority over state funds
7 29 appropriated to the foundation for research, development, and
7 30 technology transfer projects. State funds awarded by the
7 31 foundation shall be matched by nonstate sources. The
7 32 foundation shall establish by administrative rule the
7 33 requirements for the matching of state funds by nonstate
7 34 sources. The rules shall include but are not limited to the
7 35 following nonstate sources for meeting the matching
8 1 requirements:
8 2 a. Laboratory space provided by the private sector
8 3 collaborator.
8 4 b. Financial assistance.
8 5 c. Personnel and technical services.
8 6 d. Machinery or equipment.
8 7 3. The foundation shall seek financial support for its
8 8 activities from private sources and from programs of the
8 9 federal government for support of the research interests and
8 10 other activities set forth in the strategic plan.
8 11 4. The foundation is to encourage aggressive pursuit of
8 12 sponsored research by persons affiliated with Iowa colleges
8 13 and universities and by private business, without regard to
8 14 the relationship of such research to the foundation's program
8 15 or to the strategic plan. The foundation shall not control
8 16 research prerogatives of colleges or universities, their
8 17 faculty, or private persons or businesses. The foundation
8 18 may, upon request, provide assistance to colleges and
8 19 universities for acquisition of financial support for research
8 20 activities from the federal government and other sources.
8 21 5. The foundation shall coordinate with other state and
8 22 federal entities the following activities:
8 23 a. The establishment of funding for the projects under
8 24 subsection 1.
8 25 b. The review of current research policy direction.
8 26 c. The provision of technical outreach services to
8 27 existing Iowa business, industry, and agriculture.
8 28 The foundation may sponsor applications of or formally
8 29 recommend specific projects to any private, state, federal, or
8 30 local program.
8 31 6. As a goal, not less than seventy=five percent of the
8 32 efforts of the foundation should be directed at existing
8 33 business and industry or for industry consortia or in broadly
8 34 based manufacturing technology programs that include
8 35 significant participation by established businesses.
9 1 Sec. 8. NEW SECTION. 15E.159 ADVISORY COUNCILS.
9 2 1. There are established within the foundation three
9 3 advisory councils consisting of the Iowa bioscience advisory
9 4 council, the Iowa advanced manufacturing advisory council, and
9 5 the Iowa information technology advisory council.
9 6 2. Membership on each of the advisory councils shall be
9 7 determined by the department of economic development. The
9 8 advisory councils shall be bipartisan and gender balanced in
9 9 accordance with sections 69.16 and 69.16A.
9 10 3. The advisory councils shall make recommendations to the
9 11 foundation in the areas of bioscience, advanced manufacturing,
9 12 and information technology.
9 13 4. The advisory councils shall direct the implementation
9 14 of strategies and actions provided in separate consultant
9 15 reports on bioscience, advanced manufacturing, and information
9 16 technology submitted to the department of economic development
9 17 in the calendar years 2004 and 2005.
9 18 Sec. 9. NEW SECTION. 15E.160 TECHNOLOGY AND
9 19 COMMERCIALIZATION FOUNDATION FUND.
9 20 1. There shall be created by the board of directors a
9 21 technology and commercialization foundation fund. The fund is
9 22 composed of moneys appropriated by the general assembly for
9 23 that purpose, and moneys available to and obtained or accepted
9 24 by the board under this chapter, including moneys from the
9 25 United States, other states, foreign nations, state agencies,
9 26 political subdivisions, and private sources, and moneys from
9 27 fees charged under this chapter.
9 28 2. The fund shall be a revolving fund from which moneys
9 29 may be used for purposes described in this chapter, including
9 30 loans, grants, matching financing, and administrative costs.
9 31 Notwithstanding section 12C.7, subsection 2, all interest
9 32 earned on proceeds in the fund shall remain in the fund.
9 33 3. The foundation shall arrange, at least annually, for
9 34 regular independent audits of the fund and shall submit a
9 35 certified report relating to the condition of the fund to the
10 1 governor and general assembly.
10 2 4. In administering the fund, the board may do all of the
10 3 following:
10 4 a. Contract, sue and be sued, and adopt rules necessary to
10 5 carry out the provisions of this section, but the board shall
10 6 not in any manner, directly or indirectly, pledge the credit
10 7 of the state.
10 8 b. Authorize payment from the fund, from fees and from any
10 9 income received by investment of moneys in the fund, for
10 10 costs, commissions, attorney fees, and other reasonable
10 11 expenses related to and necessary for making and protecting
10 12 direct loans under this section, and for the recovery of
10 13 moneys loaned or the management of property acquired in
10 14 connection with the loans.
10 15 5. Section 8.33 shall not apply to moneys in the fund.
10 16 EXPLANATION
10 17 This bill establishes a technology and commercialization
10 18 foundation of Iowa to formulate and implement plans and
10 19 programs for the development of economic development of
10 20 advanced sciences and technologies and to facilitate their
10 21 commercial application within the state, including determining
10 22 the needs of individual Iowa businesses and farms for
10 23 scientific and technological innovations to improve products
10 24 and processes, and encouraging the transfer of the technology
10 25 from the laboratory to the market. The bill provides that the
10 26 foundation consists of a board of directors, three advisory
10 27 councils, and staff.
10 28 The bill provides that the foundation shall be organized as
10 29 a nonprofit corporation and shall not be regarded as a state
10 30 agency, except for purposes of Code chapter 17A.
10 31 The bill provides that the board of directors shall have
10 32 all the general powers needed to carry out its mission and
10 33 duties including preparing and adopting a strategic plan,
10 34 funding research projects, suing and being sued in its own
10 35 name, adopting a corporate seal, adopting bylaws for its
11 1 management, making and executing agreements, contracts and
11 2 other instruments, accepting contributions, establishing
11 3 policy in the general administration of the affairs of the
11 4 foundation, performing certain duties related to staffing,
11 5 annual reports, collecting information, and adopting rules,
11 6 seeking to achieve certain legislative findings, collaborating
11 7 with certain technology transfer entities, providing staff
11 8 services for the advisory councils, convening the advisory
11 9 councils annually to receive the board of directors'
11 10 recommendations, establishing committees of business,
11 11 agriculture, academic specialists, or others as deemed
11 12 necessary, submitting an annual report not later than November
11 13 1 of each year, collaborating with seed capital entities to
11 14 acquire new technology where appropriate, brokering
11 15 relationships furthering the mission of the foundation among
11 16 state board of regents institutions of higher education,
11 17 community colleges, and private colleges and universities, and
11 18 private investors, entrepreneurs, and executives of existing
11 19 businesses, and promoting communication, inventorying
11 20 resources, and assisting in the coordination of business and
11 21 technology assistance activities of state board of regents
11 22 institutions, community colleges, and private colleges and
11 23 universities with the private sector, the department of
11 24 economic development, and local and regional economic
11 25 development groups.
11 26 The bill requires the foundation to prepare a strategic
11 27 plan for development of advanced technologies in Iowa which
11 28 shall serve as the basis for general foundation activities.
11 29 The bill requires the plan to set forth the foundation's
11 30 findings with regard to fields of scientific research which
11 31 offer the greatest potential for commercial development within
11 32 the state. The bill requires the plan to include findings and
11 33 recommendations for the coordination of activities of
11 34 technology centers operated by certain entities, all of which
11 35 shall cooperate with the foundation in formulation of the
12 1 plan. The bill requires the plan to be formulated to provide
12 2 for the strengthening and expansion of existing industry and
12 3 agriculture, the creation of new business where deemed
12 4 necessary and feasible, and the attraction of technology=based
12 5 businesses to the state. The bill requires the plan to
12 6 include directions for participation by the foundation,
12 7 through direct investment or in partnership or joint venture
12 8 with a commercial investor or other financial source, in
12 9 providing funds for development of existing or new businesses
12 10 in Iowa engaged in commercial exploitation of products or
12 11 technologies related to the research interests of the
12 12 foundation.
12 13 The bill allows the foundation to receive state
12 14 appropriations and other resources to provide financial
12 15 assistance to research projects which are consistent with the
12 16 commercial development objectives of the strategic plan and
12 17 which involve collaboration between an Iowa college, community
12 18 college, or university and a private business, to undertake
12 19 market studies and other analyses of commercial applications
12 20 of existing or potential research and development efforts, to
12 21 provide applied technology outreach services and programs, to
12 22 review existing licenses and patents and bring potentially
12 23 applicable information to the attention of the board and the
12 24 Iowa=based industries for which the patent and license
12 25 information might be applicable, to review current research,
12 26 to regularly monitor the industrial and agricultural base of
12 27 Iowa, to encourage contact between research efforts and
12 28 appropriate industries, and for the manufacturing technology
12 29 program. The foundation is to encourage aggressive pursuit of
12 30 sponsored research by persons affiliated with Iowa colleges
12 31 and universities and by private business, without regard to
12 32 the relationship of such research to the foundation's program
12 33 or to the strategic plan.
12 34 The bill establishes within the foundation three advisory
12 35 councils consisting of the Iowa bioscience advisory council,
13 1 the Iowa advanced manufacturing advisory council, and the Iowa
13 2 information technology advisory council with membership
13 3 determined by the department of economic development. The
13 4 bill requires the advisory councils to make recommendations to
13 5 the foundation in the areas of bioscience, advanced
13 6 manufacturing, and information technology. The bill requires
13 7 the advisory councils to direct the implementation of
13 8 strategies and actions provided in separate consultant reports
13 9 on bioscience, advanced manufacturing, and information
13 10 technology submitted to the department of economic development
13 11 in the calendar years 2004 and 2005.
13 12 The bill requires the board of directors to create a
13 13 technology and commercialization foundation fund. The bill
13 14 requires the foundation to arrange, at least annually, for
13 15 regular independent audits of the fund.
13 16 LSB 6006XS 81
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