House File 453
HOUSE FILE
BY COMMITTEE ON ECONOMIC
GROWTH
(SUCCESSOR TO HSB 180)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to animal biotechnology by creating an animal
2 biotechnology commercialization fund, extending the time
3 period during which a life science enterprise may purchase
4 agricultural land, making appropriations, and providing an
5 effective date.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 10C.6, subsection 1, paragraph a,
1 2 subparagraph (1), Code 2003, is amended to read as follows:
1 3 (1) The life science enterprise acquires the agricultural
1 4 land on or before June 30, 2004 2008.
1 5 Sec. 2. Section 12E.12, subsection 1, paragraph b,
1 6 subparagraph (1), Code 2003, is amended to read as follows:
1 7 (1) The tax=exempt bond proceeds restricted capital funds
1 8 account. The net proceeds of tax=exempt bonds issued to
1 9 provide funds for capital projects, certain debt service, and
1 10 attorney fees related to the master settlement agreement which
1 11 the state treasurer is authorized and directed to deposit on
1 12 behalf of the state shall be deposited in the account and
1 13 shall be used to fund capital projects, certain debt service,
1 14 and the payment of attorney fees related to the master
1 15 settlement agreement. The funding of capital projects may
1 16 take the form of grants. With respect to capital projects, it
1 17 is the intent of the general assembly to fund capital projects
1 18 that qualify as vertical infrastructure projects as defined in
1 19 section 8.57, subsection 5, paragraph "c", to the extent
1 20 practicable in any fiscal year and without limiting other
1 21 qualifying capital expenditures considered and approved by a
1 22 constitutional majority of each house of the general assembly
1 23 and the governor.
1 24 Sec. 3. NEW SECTION. 15E.221 ANIMAL BIOTECHNOLOGY
1 25 COMMERCIALIZATION FUND.
1 26 1. An animal biotechnology commercialization fund is
1 27 created in the state treasury under the control of the
1 28 department of economic development. Moneys in the fund shall
1 29 be used to provide financial assistance in the form of grants
1 30 and loans for all of the following:
1 31 a. Constructing infrastructure and developing proprietary
1 32 biotechnology interests in order to implement life science
1 33 enterprise plans approved by the department pursuant to
1 34 section 15.104.
1 35 b. Constructing facilities for the purification of animal
2 1 life science products which facilities shall, in part, be
2 2 available in a commercially reasonable manner to other
2 3 companies engaging in the business of purification of animal
2 4 life science products. At least ten million dollars of the
2 5 total cost of constructing such a facility must be paid for
2 6 through the use of any combination of federal, local, and
2 7 private moneys.
2 8 c. Constructing commercial animal biodefense
2 9 pharmaceutical production and processing facilities in this
2 10 state, provided that an Iowa=based qualified life science
2 11 enterprise holds an equity interest in the facilities. Prior
2 12 to receiving financial assistance under this paragraph, the
2 13 recipient must be a party to a federal contract for the
2 14 construction of a facility described in this paragraph.
2 15 2. The fund shall consist of moneys appropriated by the
2 16 general assembly for deposit in the fund, and other moneys
2 17 available to and obtained or accepted by the department for
2 18 deposit in the fund. Moneys in the fund are appropriated to
2 19 the department to be used for the purposes provided in this
2 20 section.
2 21 3. Any financial assistance received from the fund shall
2 22 not be used for purposes of purchasing agricultural land.
2 23 4. a. Applications for financial assistance for projects
2 24 described in subsection 1, paragraphs "a" and "b", shall be
2 25 filed with the department not later than May 30, 2003, and
2 26 shall be acted upon by the department not later than June 30,
2 27 2003. Administrative rules relating to the time frame for the
2 28 approval or disapproval of life science enterprise plans shall
2 29 not apply to the time frame for the application process under
2 30 this subsection.
2 31 b. Applications for financial assistance for projects
2 32 described in subsection 1, paragraph "c", shall be filed with
2 33 the department not later than July 1, 2005, and financial
2 34 assistance provided to such projects shall be expended not
2 35 later than June 30, 2006.
3 1 5. A financial assistance award approved under this
3 2 section may involve the disbursement of moneys from the fund
3 3 over a period of more than one year.
3 4 6. Notwithstanding section 8.33, all moneys in the animal
3 5 biotechnology commercialization fund which remain unexpended
3 6 or unobligated at the close of the fiscal year shall not
3 7 revert, but shall remain available for expenditure for
3 8 subsequent fiscal years. Notwithstanding section 12C.7,
3 9 interest or earnings on moneys in the fund shall be credited
3 10 to the fund.
3 11 Sec. 4. TAX=EXEMPT BOND PROCEEDS RESTRICTED CAPITAL FUNDS
3 12 ACCOUNT OF THE TOBACCO SETTLEMENT TRUST FUND == APPROPRIATION.
3 13 1. There is appropriated from the tax=exempt bond proceeds
3 14 restricted capital funds account of the tobacco settlement
3 15 trust fund established in section 12E.12 to the department of
3 16 economic development for the fiscal period beginning July 1,
3 17 2002, and ending June 30, 2005, the following amounts, or so
3 18 much thereof as is necessary, to be used for the purposes
3 19 designated:
3 20 a. For deposit in the animal biotechnology
3 21 commercialization fund created in section 15E.221 to be used
3 22 for purposes of projects described in section 15E.221,
3 23 subsection 1, paragraph "b":
3 24 FY 2002=2003 ..................................... $ 5,000,000
3 25 FY 2003=2004 ..................................... $ 5,000,000
3 26 FY 2004=2005 ..................................... $ 0
3 27 b. For deposit in the animal biotechnology
3 28 commercialization fund created in section 15E.221 to be used
3 29 for purposes of projects described in section 15E.221,
3 30 subsection 1, paragraph "c":
3 31 FY 2002=2003 ..................................... $ 0
3 32 FY 2003=2004 ..................................... $ 0
3 33 FY 2004=2005 ..................................... $ 10,000,000
3 34 2. Any financial assistance awarded from the animal
3 35 biotechnology commercialization fund using moneys from the
4 1 appropriations made under this section shall be in the form of
4 2 grants.
4 3 3. Any moneys remaining in the fund from the
4 4 appropriations under this section that are unexpended or
4 5 unobligated on June 30, 2006, shall revert to the tax=exempt
4 6 bond proceeds restricted capital funds account of the tobacco
4 7 settlement trust fund on June 30, 2006.
4 8 Sec. 5. REBUILD IOWA INFRASTRUCTURE FUND == APPROPRIATION.
4 9 1. There is appropriated from the rebuild Iowa
4 10 infrastructure fund created in section 8.57, subsection 5,
4 11 paragraph "a", to the department of economic development for
4 12 the fiscal period beginning July 1, 2003, and ending June 30,
4 13 2005, the following amounts, or so much thereof as is
4 14 necessary, to be used for the purposes designated:
4 15 a. For deposit in the animal biotechnology
4 16 commercialization fund created in section 15E.221 to be used
4 17 for purposes of projects described in section 15E.221,
4 18 subsection 1, paragraph "a":
4 19 FY 2003=2004 ..................................... $ 0
4 20 FY 2004=2005 ..................................... $ 5,000,000
4 21 b. For deposit in the animal biotechnology
4 22 commercialization fund created in section 15E.221 to be used
4 23 for purposes of projects described in section 15E.221,
4 24 subsection 1, paragraph "b":
4 25 FY 2003=2004 ..................................... $ 5,000,000
4 26 FY 2004=2005 ..................................... $ 0
4 27 2. Any financial assistance awarded from the animal
4 28 biotechnology commercialization fund using moneys from the
4 29 appropriations made under this section shall be in the form of
4 30 loans, forgivable loans, loan guarantees, principal buy=downs,
4 31 interest buy=downs, equity=like investments, or cost
4 32 reimbursement for technical or professional management
4 33 services. For purposes of this subsection, "equity=like
4 34 investments" means the provision of assistance in such a
4 35 manner that the potential return on investment to the provider
5 1 varies according to the profitability of the company assisted.
5 2 "Equity=like investments" includes royalty arrangements,
5 3 warrant arrangements, or other similar forms of investments.
5 4 Repayments of principal and interest on loans made from the
5 5 animal biotechnology commercialization fund shall be deposited
5 6 in the rebuild Iowa infrastructure fund.
5 7 3. Any moneys remaining in the animal biotechnology
5 8 commercialization fund from the appropriations under this
5 9 section that are unexpended or unobligated on June 30, 2006,
5 10 shall revert to the rebuild Iowa infrastructure fund on June
5 11 30, 2006.
5 12 Sec. 6. STATE BOARD OF REGENTS APPROPRIATION. There is
5 13 appropriated from the tax=exempt bond proceeds restricted
5 14 capital funds account of the tobacco settlement trust fund
5 15 established in section 12E.12 to the state board of regents
5 16 for the fiscal year beginning July 1, 2003, and ending June
5 17 30, 2004, the following amount, or so much thereof as is
5 18 necessary, to be used for the purpose designated:
5 19 For the construction of an animal biotechnology commercial
5 20 pharmaceutical research center to be built in cooperation with
5 21 the establishment by private and local sources of an animal
5 22 biotechnology business development center:
5 23 .................................................. $ 3,000,000
5 24 Sec. 7. EFFECTIVE DATE. This Act, being deemed of
5 25 immediate importance, takes effect upon enactment.
5 26 HF 453
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