House File 829 - Reprinted



                                       HOUSE FILE       
                                       BY  COMMITTEE ON ECONOMIC
                                           GROWTH

                                       (SUCCESSOR TO HSB 266)


    Passed House, Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the development and commercialization of
  2    businesses in the targeted industry areas of advanced
  3    manufacturing, bioscience, and information technology and
  4    including a contingent effective date provision.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2726HV 82
  7 tm/gg/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  15.411  TARGETED INDUSTRIES
  1  2 DEVELOPMENT FUND == FINANCIAL ASSISTANCE.
  1  3    1.  A targeted industries development fund is created in
  1  4 the state treasury under the control of the department and
  1  5 consisting of any moneys appropriated by the general assembly
  1  6 and any other moneys available to and obtained or accepted by
  1  7 the department for placement in the fund.  The fund shall be
  1  8 used to provide financial assistance under this section.
  1  9 Payments of interest, repayments of moneys loaned pursuant to
  1 10 this section, and recaptures of financial assistance shall be
  1 11 deposited in the fund.  Moneys in the fund are not subject to
  1 12 section 8.33.  Notwithstanding section 12C.7, interest or
  1 13 earnings on moneys in the fund shall be credited to the fund.
  1 14    2.  The department shall provide financial assistance to
  1 15 encourage research and development activities that have a
  1 16 clear potential to lead to commercially viable products or
  1 17 services within a reasonable period of time in the industries
  1 18 of advanced manufacturing, bioscience, and information
  1 19 technology.  Financial assistance shall be awarded on a per
  1 20 project basis.  A recipient shall not receive financial
  1 21 assistance for more than one hundred fifty thousand dollars.
  1 22 In order to receive financial assistance, an applicant must
  1 23 demonstrate the ability to secure one dollar of nonstate
  1 24 moneys for every two dollars received from the fund.
  1 25 Financial assistance shall be provided from the targeted
  1 26 industries development fund created in subsection 1.
  1 27    3.  The department shall provide financial assistance for
  1 28 up to seven initiatives designed to encourage joint research
  1 29 and development work between insurance or financial services
  1 30 companies in the state and information technology and software
  1 31 companies in the state.  Financial assistance shall not exceed
  1 32 one hundred thousand dollars per project.  In order to receive
  1 33 financial assistance, an applicant must demonstrate the
  1 34 ability to secure two dollars of nonstate moneys for every one
  1 35 dollar received from the fund.  Financial assistance shall be
  2  1 awarded to projects that will result in technologies being
  2  2 developed as commercial products for sale by Iowa companies
  2  3 rather than as custom applications for proprietary use by a
  2  4 participating insurance or financial services company.
  2  5 Financial assistance shall be provided from the targeted
  2  6 industries development fund created in subsection 1.
  2  7    4.  The department shall provide financial assistance to
  2  8 information technology businesses for purposes of upgrading
  2  9 existing employees skills.  Financial assistance shall be
  2 10 provided from the targeted industries development fund created
  2 11 in subsection 1.  In order to receive financial assistance, an
  2 12 applicant must demonstrate the ability to secure two dollars
  2 13 of nonstate moneys for every one dollar received from the
  2 14 fund.
  2 15    Sec. 2.  NEW SECTION.  15.412  LEAN MANUFACTURING
  2 16 INSTITUTE.
  2 17    The department of economic development shall establish a
  2 18 lean manufacturing institute for purposes of providing
  2 19 executive level, in=depth training assistance to manufacturing
  2 20 entities in the state.  The department of economic development
  2 21 may seek nonstate moneys for purposes of supporting the lean
  2 22 manufacturing institute.
  2 23    Sec. 3.  NEW SECTION.  15.413  STATEWIDE COMMERCIALIZATION
  2 24 DEVELOPMENT SERVICES ENTITY.
  2 25    Through a request for proposals process, the department
  2 26 shall contract with a provider for services related to
  2 27 statewide commercialization development in the industries of
  2 28 advanced manufacturing, bioscience, and information
  2 29 technology.  The services provided by the provider shall
  2 30 include all of the following:
  2 31    1.  Assistance provided directly to businesses by
  2 32 experienced serial entrepreneurs for all of the following
  2 33 activities:
  2 34    a.  Business plan development.
  2 35    b.  Due diligence.
  3  1    c.  Market assessments.
  3  2    d.  Technology assessments.
  3  3    e.  Other planning activities.
  3  4    2.  Operation and coordination of various available
  3  5 competitive seed and prototype development funds.
  3  6    3.  Connecting businesses to private angel investors and
  3  7 the venture capital community.
  3  8    4.  Assistance in obtaining access to an experienced pool
  3  9 of managers and operations talent that can staff, mentor, or
  3 10 advise start=up enterprises.
  3 11    5.  Support and advice for accessing sources of early stage
  3 12 financing.
  3 13    Sec. 4.  NEW SECTION.  15.414  TARGETED INDUSTRIES
  3 14 INTERNSHIP PROGRAM == FINANCIAL ASSISTANCE.
  3 15    The department shall establish and administer a targeted
  3 16 industries internship program.  A community college, private
  3 17 college, or an institution of higher learning under the
  3 18 control of the state board of regents and an employer may
  3 19 enter into an agreement for purposes of providing internship
  3 20 opportunities to students of the community college, private
  3 21 college, or university.  Upon entering into such an agreement,
  3 22 the employer may apply to the department for financial
  3 23 assistance.  An employer may receive financial assistance in
  3 24 an amount of one dollar for every one dollar spent by the
  3 25 employer.  An employer shall not receive financial assistance
  3 26 of more than three thousand one hundred dollars per student.
  3 27 In order to be eligible to receive moneys under this section,
  3 28 the employer must have five hundred or fewer employees and
  3 29 must be engaged in an advanced manufacturing, bioscience, or
  3 30 information technology industry.
  3 31    Sec. 5.  NEW SECTION.  15.415  MATH AND SCIENCE EDUCATOR
  3 32 STIPENDS.
  3 33    Each fiscal year, a public or private secondary school may
  3 34 apply to the department for a one hundred fifty dollar per day
  3 35 stipend, not to exceed seven hundred fifty dollars, to pay a
  4  1 teacher at the school for attending an educational workshop
  4  2 designed to enhance the ability of the teacher to incorporate
  4  3 math and science in the daily instruction of students.
  4  4    Sec. 6.  NEW SECTION.  15.416  RULES.
  4  5    The board shall adopt rules pursuant to chapter 17A
  4  6 necessary for the administration of this part.
  4  7    Sec. 7.  Section 262B.22, Code 2007, is repealed.
  4  8    Sec. 8.  STATEWIDE SUPPLIER CAPACITY AND PRODUCT DATABASE.
  4  9 The department of economic development shall contract with a
  4 10 third party to create a statewide supplier capacity and
  4 11 product database to assist the department in linking suppliers
  4 12 to Iowa=based advanced manufacturing companies.  The
  4 13 department shall select the third party through a request for
  4 14 proposals process.
  4 15    Sec. 9.  CONTINGENT EFFECTIVE DATE.  This Act shall take
  4 16 effect when moneys appropriated to the department of economic
  4 17 development are deposited in the targeted industries
  4 18 development fund.  The department shall notify the Code editor
  4 19 regarding the date of the deposit.
  4 20 HF 829
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