Senate File 2309 - Introduced
SENATE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO SSB 3216)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to technology transfer and commercialization in
2 certain core platform areas.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5790SV 81
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PAG LIN
1 1 Section 1. NEW SECTION. 262B.101 SHORT TITLE.
1 2 This subchapter shall be known and may be cited as the
1 3 "Technology and Commercialization Act".
1 4 Sec. 2. NEW SECTION. 262B.102 RESEARCH AND DEVELOPMENT
1 5 PLATFORMS.
1 6 1. For purposes of this subchapter, "core platform areas"
1 7 means the areas of advanced manufacturing, biosciences,
1 8 information solutions, and financial services.
1 9 2. The state board of regents shall do all of the
1 10 following:
1 11 a. Recruit employees, build capacity, and invest moneys to
1 12 ensure rapid scientific progress in the core platform areas.
1 13 b. Create endowed chair positions and employ persons with
1 14 entrepreneurial expertise.
1 15 c. Invest in technology development infrastructure to
1 16 strengthen and accelerate scientific and commercialization
1 17 work in the core platform areas.
1 18 d. Provide financial assistance in the form of grants for
1 19 purposes of accelerating the transformation of new and ongoing
1 20 research and development initiatives in the core platform
1 21 areas into commercial opportunities.
1 22 e. Actively participate in advisory groups dedicated to
1 23 the areas of advanced manufacturing, biosciences, and
1 24 information solutions.
1 25 Sec. 3. NEW SECTION. 262B.103 TECHNOLOGY AND
1 26 COMMERCIALIZATION RESOURCE FOUNDATION OF IOWA.
1 27 1. The general assembly finds and declares that the public
1 28 good requires that Iowa successfully participate and compete
1 29 in the emerging world economy and that this participation and
1 30 competition is a public purpose. A technology and
1 31 commercialization resource foundation of Iowa shall be
1 32 established as provided in subsection 5 for the public purpose
1 33 of formulating and implementing plans and programs for the
1 34 core platform areas and for the public purpose of facilitating
1 35 the commercial application of work in the core platform areas
2 1 within the state. The foundation shall also do all of the
2 2 following:
2 3 a. Collaborate with seed capital entities to acquire new
2 4 technology where appropriate.
2 5 b. Broker relationships furthering the mission of the
2 6 foundation among the regents universities, community colleges,
2 7 and private colleges and universities, and private investors,
2 8 entrepreneurs, and executives of existing businesses.
2 9 c. Promote communication and inventory resources and
2 10 assist in the coordination of business and technology
2 11 assistance activities of the regents universities, community
2 12 colleges, and private colleges and universities with the
2 13 private sector, the department of economic development, and
2 14 local and regional economic development groups.
2 15 2. The mission of the foundation shall be to act as a
2 16 single, unified agent of the regents universities, to
2 17 significantly increase the efficiency and effectiveness of
2 18 university=based commercialization, to increase the overall
2 19 value and impact of commercial opportunities created by the
2 20 regents universities, and to create a comprehensive
2 21 commercialization strategy integrated into the mission of the
2 22 regents universities.
2 23 3. The technology and commercialization resource
2 24 foundation of Iowa shall receive recommendations from the
2 25 regents universities regarding research projects in the core
2 26 platform areas which have commercialization potential.
2 27 Through an appeal process developed and implemented by the
2 28 technology and commercialization resource foundation of Iowa,
2 29 the foundation shall also receive recommendations directly
2 30 from individuals regarding research projects in the core
2 31 platform areas which have commercialization potential if the
2 32 projects have been rejected by a regents university for
2 33 submission to the foundation. In cooperation with
2 34 commercialization experts in the private sector, the
2 35 foundation shall conduct a due diligence examination of
3 1 research project submissions and make recommendations
3 2 regarding which projects should receive funding and how much
3 3 funding such projects should receive. The recommendations of
3 4 the foundation shall be forwarded to the state board of
3 5 regents. The state board of regents shall review the
3 6 recommendations and may approve, deny, or modify the
3 7 recommendations. If the state board of regents modifies a
3 8 recommendation, the modified recommendation shall be returned
3 9 to the technology and commercialization resource foundation of
3 10 Iowa for consideration and for recommendation. The state
3 11 board of regents may award financial assistance to approved
3 12 research projects. The state board of regents may award
3 13 financial assistance to approved research projects in
3 14 accordance with section 262B.102, subsection 2.
3 15 4. The technology and commercialization resource
3 16 foundation of Iowa shall implement a direct application
3 17 process to receive recommendations from other colleges and
3 18 universities and community colleges for research projects in
3 19 the core platform areas which have commercialization
3 20 potential. The procedure for the review of such submissions,
3 21 for funding recommendations, and for the approval, denial, or
3 22 modification of funding recommendations shall be the same as
3 23 provided in subsection 3. The state board of regents may
3 24 award project specific financial assistance to approved
3 25 research projects as provided in section 262B.102, subsection
3 26 2, paragraph "d".
3 27 5. A technology and commercialization resource foundation
3 28 of Iowa shall be incorporated under chapter 504. The
3 29 foundation shall not be regarded as a state agency, except for
3 30 purposes of chapter 17A. A member of the board of directors
3 31 is not considered a state employee, except for purposes of
3 32 chapter 669. A natural person employed by the foundation is a
3 33 state employee for purposes of the Iowa public employees'
3 34 retirement system, state health and dental plans, and other
3 35 state employee benefit plans and chapter 669. Chapters 8, 8A,
4 1 and 20, and other provisions of law that relate to
4 2 requirements or restrictions dealing with state personnel or
4 3 state funds, do not apply to the foundation or any employees
4 4 of the board of directors or the foundation except to the
4 5 extent provided in this chapter. The foundation may receive
4 6 moneys appropriated by the general assembly.
4 7 6. The board of directors of the foundation shall consist
4 8 of nine voting members as follows:
4 9 a. The president of the state board of regents.
4 10 b. The three members of the economic development
4 11 subcommittee of the state board of regents.
4 12 c. The chief technology officer of the state who shall
4 13 serve as the president of the board.
4 14 d. The chairperson of the Iowa bioscience advisory council
4 15 established pursuant to section 262B.104.
4 16 e. The chairperson of the Iowa advanced manufacturing
4 17 advisory council established pursuant to section 262B.104.
4 18 f. The chairperson of the Iowa information technology
4 19 advisory council established pursuant to section 262B.104.
4 20 g. A private sector business representative with venture
4 21 capital experience appointed by the governor and confirmed by
4 22 the senate pursuant to section 2.32.
4 23 7. A vacancy on the board shall be filled by the
4 24 appointing authority. Members are eligible for actual expense
4 25 reimbursement while fulfilling duties of the board.
4 26 Sec. 4. NEW SECTION. 262B.104 ADVISORY COUNCILS.
4 27 1. Three advisory councils are established within the
4 28 foundation consisting of the Iowa bioscience advisory council,
4 29 the Iowa advanced manufacturing advisory council, and the Iowa
4 30 information technology advisory council.
4 31 2. Membership on each of the advisory councils shall be
4 32 determined by the department of economic development.
4 33 Membership on the Iowa bioscience advisory council shall
4 34 consist of the same membership as on the biosciences
4 35 development organization designated by the department of
5 1 economic development pursuant to section 15G.111, subsection
5 2 2.
5 3 3. The advisory councils shall make recommendations to the
5 4 foundation in the areas of bioscience, advanced manufacturing,
5 5 and information technology.
5 6 4. The advisory councils shall direct the implementation
5 7 of strategies and actions provided in separate consultant
5 8 reports on bioscience, advanced manufacturing, and information
5 9 technology submitted to the department of economic development
5 10 in calendar years 2004 and 2005.
5 11 Sec. 5. NEW SECTION. 262B.105 VENTURE RESOURCES
5 12 CORPORATION.
5 13 1. A venture resources corporation shall be selected
5 14 through a request for proposals process to perform the duties
5 15 set out in subsection 2. The request for proposals shall be
5 16 developed and administered by the department of economic
5 17 development in cooperation with the Iowa bioscience advisory
5 18 council. The department shall review the responses to the
5 19 request for proposals and shall select the venture resources
5 20 corporation and enter into an agreement with the corporation.
5 21 At a minimum, the agreement shall include provisions
5 22 addressing all of the following:
5 23 a. The scope of service.
5 24 b. Accountability and performance measures.
5 25 c. Contract termination provisions.
5 26 d. Annual reporting requirements which shall include
5 27 financial information and investment prospects.
5 28 e. Any payment to the department of net profits earned by
5 29 the corporation.
5 30 2. The venture resources corporation selected pursuant to
5 31 subsection 1 must be incorporated under chapter 490 and shall
5 32 do all of the following:
5 33 a. Establish a seed fund for early=stage investment in
5 34 emerging opportunities in this state.
5 35 b. Develop a partnership with an experienced venture fund
6 1 willing to manage the seed fund and coinvest in the seed fund.
6 2 c. Coordinate efforts with existing seed funds located in
6 3 this state and leverage moneys in such funds into investments
6 4 in entities with a higher value.
6 5 d. Establish partnerships with large venture capital funds
6 6 for purposes of funding start=up companies after the initial
6 7 start=up moneys have been invested in the companies.
6 8 e. Support regional venture funds in raising moneys.
6 9 f. Establish extensive non=venture capital sources of
6 10 funding.
6 11 g. Be self=sustaining through equity=based venture
6 12 investments.
6 13 3. By January 31 of each year, the department of economic
6 14 development shall submit a report to the technology and
6 15 commercialization of resource foundation of Iowa, the
6 16 governor, and the general assembly regarding the activities of
6 17 the venture resources corporation during the previous calendar
6 18 year. The report shall include information received from the
6 19 corporation pursuant to subsection 1, paragraph "d".
6 20 4. The corporation may receive state moneys from a state
6 21 entity for purposes of carrying out the duties provided in
6 22 subsection 2.
6 23 EXPLANATION
6 24 This bill relates to technology transfer and
6 25 commercialization in certain core platform areas. The bill
6 26 defines "core platform areas" as the areas of advanced
6 27 manufacturing, biosciences, information solutions, and
6 28 financial services.
6 29 The bill requires a technology and commercialization
6 30 resource foundation of Iowa to be established for the public
6 31 purpose of formulating and implementing plans and programs for
6 32 the core platform areas and for the public purpose of
6 33 facilitating the commercial application of work in the core
6 34 platform areas. The foundation shall be incorporated as a
6 35 nonprofit corporation and shall not be regarded as a state
7 1 agency except for purposes of Code chapter 17A. The bill
7 2 provides for a nine=member board of directors with the chief
7 3 technology officer of the state to serve as the president of
7 4 the board.
7 5 The bill provides that the foundation shall receive
7 6 recommendations from the regents universities regarding
7 7 research projects in the core platform areas which have
7 8 commercialization potential. The bill allows, through an
7 9 appeal process, the foundation to receive recommendations
7 10 directly from individuals regarding research projects in the
7 11 core platform areas if the projects have been rejected by a
7 12 regents university for submission to the foundation. The bill
7 13 provides that the foundation shall conduct a due diligence
7 14 examination of research project submissions and make
7 15 recommendations to the state board of regents regarding which
7 16 projects should receive funding and how much funding such
7 17 projects should receive. The bill provides that the state
7 18 board of regents shall review the recommendations and may
7 19 approve, deny, or modify the recommendations. The bill
7 20 provides that modified recommendations shall be returned to
7 21 the foundation for additional consideration and that the state
7 22 board of regents may award financial assistance to approved
7 23 research projects.
7 24 The bill provides that the foundation shall implement and
7 25 administer a direct application process to receive
7 26 recommendations from other colleges and universities and
7 27 community colleges for research projects in the core platform
7 28 areas which have commercialization potential. The bill
7 29 provides that the procedure for review of such submissions,
7 30 for funding recommendations, and for the approval, denial, or
7 31 modification of funding recommendations shall be the same as
7 32 the procedure for submissions received from regents
7 33 universities.
7 34 The bill establishes within the foundation an Iowa
7 35 bioscience advisory council, an Iowa advanced manufacturing
8 1 advisory council, and an Iowa information technology advisory
8 2 council. The bill provides that the councils shall direct the
8 3 implementation of strategies and actions provided in separate
8 4 consultant reports on biosciences, advanced manufacturing, and
8 5 information technology submitted to the department of economic
8 6 development in calendar years 2004 and 2005.
8 7 The bill requires a venture resources corporation to be
8 8 selected through a request for proposals process administered
8 9 by the department of economic development in cooperation with
8 10 the Iowa bioscience advisory council. The bill provides that
8 11 the department shall select the corporation and enter into an
8 12 agreement with the corporation to establish a seed fund for
8 13 early=stage investment in emerging opportunities, to develop a
8 14 partnership with an experienced venture capital fund willing
8 15 to manage the seed fund and coinvest the seed fund, to
8 16 coordinate efforts with existing seed funds located in this
8 17 state and leverage moneys in such funds into investments in
8 18 entities with a higher value, to establish partnerships with
8 19 large venture capital funds, to support regional venture funds
8 20 in raising moneys, to establish extensive non=venture capital
8 21 sources of funding, and to be self=sustaining through equity=
8 22 based venture investments.
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