Senate Study Bill 1084 - IntroducedA Bill ForAn Act 1relating to bioscience-based economic development, the
2establishment of a bioscience development corporation, and
3membership on the Iowa innovation council.
1   Section 1.  Section 8.11, subsection 2, paragraph a, Code
22019, is amended to read as follows:
   3a.  “Disability” means the same as provided defined in
4section 15.102, subsection 10, paragraph “b”, subparagraph (1).
5   Sec. 2.  Section 12.34, subsection 1, Code 2019, is amended
6to read as follows:
   71.  The treasurer of state may invest up to the lesser of
8one hundred eight million dollars or twenty-five percent of
9the balance of the state pooled money fund in certificates
10of deposit in eligible lending institutions as provided
11in section 12.32, this section, and sections 12.35 through
1212.43. One-half of the moneys invested pursuant to this
13section shall be made available under the program implemented
14pursuant to section 12.43 to increase the availability of lower
15cost moneys for purposes of injecting needed capital into
16small businesses which are fifty-one percent or more owned,
17operated, and actively managed by one or more women, minority
18persons, or persons with disabilities. “Disability” means and
19“minority person” mean
the same as defined in section 15.102,
20subsection 10
. A “minority person” means the same as defined
21in section 15.102, subsection 10.
The treasurer shall invest
22the remaining one-half of the moneys invested pursuant to this
23section to support any other eligible applicant as provided in
24section 12.43.
25   Sec. 3.  Section 15.102, Code 2019, is amended by adding the
26following new subsections:
27   NEW SUBSECTION.  1A.  “Bioscience-based economic development”
28means economic development related to industries involved in
29any of the bioscience development platforms.
30   NEW SUBSECTION.  1B.  “Bioscience development platforms”
31means industries involved in any of the following:
   32a.  Vaccines and immunotherapeutics.
   33b.  Biobased chemicals.
   34c.  Precision and digital agriculture.
   35d.  Medical devices and medical diagnostics.
1   Sec. 4.  Section 15.102, subsection 5, Code 2019, is amended
2to read as follows:
   35.  “Corporation” means the Iowa innovation a bioscience
corporation created pursuant to section 15.107.
5   Sec. 5.  Section 15.106B, subsection 2, paragraph b, Code
62019, is amended to read as follows:
   7b.  Establish a nonprofit corporation pursuant to
8section 15.107, for the purpose of receiving and disbursing
9funds from public or private sources to be used to enhance
10bioscience-based economic development in the state and to

11 further the overall development and economic well-being of the
13   Sec. 6.  Section 15.106B, subsection 2, paragraph d,
14subparagraph (1), Code 2019, is amended by adding the following
15new subparagraph division:
16   NEW SUBPARAGRAPH DIVISION.  (i)  Services to expand,
17enhance, and advance the bioscience development platforms.
18   Sec. 7.  Section 15.107, Code 2019, is amended by striking
19the section and inserting in lieu thereof the following:
   2015.107  Bioscience development corporation.
   211.  The authority shall establish a bioscience development
22corporation as a nonprofit corporation organized under chapter
23504 and qualifying under section 501(c)(3) of the Internal
24Revenue Code as an organization exempt from taxation. Unless
25otherwise provided in this subchapter, the corporation is
26subject to the provisions of chapter 504. The corporation
27shall be established for the purpose of providing services and
28receiving and disbursing funds from public or private sources
29to enhance bioscience-based economic development in the state
30and to further the overall development and economic well-being
31of the state.
   322.  The corporation shall collaborate with the authority as
33described in this subchapter, but the corporation shall not
34be considered, in whole or in part, an agency, department, or
35administrative unit of the state.
   1a.  The corporation shall not receive appropriations from the
2general assembly.
   3b.  The corporation shall not be required to comply with
4any requirements that apply to a state agency, department, or
5administrative unit and shall not exercise any sovereign power
6of the state.
   7c.  The corporation shall not have authority to pledge the
8credit of the state, and the state shall not be liable for
9the debts or obligations of the corporation. All debts and
10obligations of the corporation shall be payable solely from the
11corporation’s funds.
   123.  a.  The corporation shall be established so that
13donations and bequests to the corporation qualify as tax
14deductible under state income tax laws and under section
15501(c)(3) of the Internal Revenue Code.
   16b.  The corporation shall be established for the purpose of
17expanding bioscience-based economic development opportunities
18in the state of Iowa and for Iowa businesses, and to further
19the overall development and economic well-being of the state.
20The corporation may effectuate this purpose by performing
21certain functions delegated to it by the authority pursuant to
22section 15.106B.
   234.  The articles of the corporation shall provide for its
24governance and its efficient management. In providing for its
25governance, the articles of the corporation shall address the
   27a.  A board of directors to govern the corporation.
   28(1)  The board of directors shall initially be comprised of
29seven members appointed by the governor to concurrent terms
30of three years. Two of such members shall be subject to
31confirmation by the senate.
   32(2)  For appointments subsequent to the initial appointments
33pursuant to subparagraph (1), two of the members shall be
34appointed by the governor, subject to confirmation by the
35senate, to staggered terms of three years each, and the
-3-1remaining five members shall be selected by a majority vote of
2the board of directors of the corporation for terms the length
3of which shall be provided in the articles of the corporation.
   4(3)  The governor and the board of directors of the
5corporation shall not appoint or select any person who is
6either the spouse or a relative within the first degree of
7consanguinity of a serving member of the board of directors or
8of the authority board.
   9b.  The appointment of a chief executive officer by the board
10to manage the corporation’s daily operations.
   11c.  The delegation of such powers and responsibilities
12to the chief executive officer as may be necessary for the
13corporation’s efficient operation.
   14d.  The employment of personnel necessary for the efficient
15performance of the duties assigned to the corporation. All
16such personnel shall be considered employees of a private,
17nonprofit corporation and shall be exempt from the personnel
18requirements imposed on state agencies, departments, and
19administrative units.
   20e.  The financial operations of the corporation including the
21authority to receive and expend funds from public and private
22sources and to use its property, money, or other resources for
23the purpose of the corporation.
   245.  The board of directors of the corporation and the chief
25executive officer shall act to ensure all of the following:
   26a.  That the corporation reviews and, at the board’s
27direction, implements the applicable portions of the strategic
28plan developed by members of the authority pursuant to section
   30b.  That the corporation prepares an annual budget that
31includes funding levels for the corporation’s activities and
32that shows sufficient moneys are available to support those
   34c.  That the corporation annually completes and files an
35information return as described in section 422.15 and that the
-4-1information return is submitted to the general assembly.
2   Sec. 8.  Section 15.107A, subsection 2, unnumbered paragraph
31, Code 2019, is amended to read as follows:
   4The corporation shall, to the extent its articles so provide
5and within its public purpose, do all of the following with
6the purpose of increasing innovation in Iowa’s economy, and
7 bringing more innovative businesses to the state, and enhancing
8and expanding the bioscience development platforms
9   Sec. 9.  Section 15.107A, subsection 2, paragraph b, Code
102019, is amended to read as follows:
   11b.  Act as an innovation intermediary by aligning local
12technologies, assets, and resources to work together on
13advancing innovation and the bioscience development platforms.
14   Sec. 10.  Section 15.107C, subsection 2, paragraph b, Code
152019, is amended to read as follows:
   16b.  The report shall describe how the operations and
17activities serve the interests of the state, enhance
18bioscience-based economic development in the state,
and further
19economic development.
20   Sec. 11.  Section 15.117A, subsection 2, paragraph a,
21subparagraphs (1) and (2), Code 2019, are amended to read as
   23(1)  Twenty members selected by the board to serve staggered,
24two-year terms beginning and ending as provided in section
2569.19. Of the members selected by the board, seven fourteen
26 shall be representatives from businesses in the targeted
27industries and thirteen six shall be individuals who serve
28on the technology commercialization committee created in
29section 15.116, or other committees of the board, and who
30have expertise with the targeted industries. At least ten of
31the members selected pursuant to this subparagraph shall be
32executives actively engaged in the management of a business in
33a targeted industry. The members selected pursuant to this
34paragraph shall reflect the size and diversity of businesses
35in the targeted industries and of the various geographic areas
-5-1of the state.
   2(2)  One member, selected by the governor board, who also
3serves on the Iowa capital investment board created in section
 has experience supporting businesses in the targeted
  This Act shall not affect the
8appointment or term of a member serving on the Iowa innovation
9council immediately prior to the effective date of this Act.
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
   13This bill relates to bioscience-based economic development,
14the establishment of a bioscience development corporation, and
15membership on the Iowa innovation council.
   16The bill replaces the Iowa innovation corporation with a
17bioscience development corporation. The bioscience development
18corporation is structured similarly and functions similarly to
19the Iowa innovation corporation. The bioscience development
20corporation has the added duty and responsibility of enhancing
21the state’s bioscience-based economic development. The bill
22defines “bioscience-based economic development” as economic
23development related to industries involved in any of the
24“bioscience development platforms”, which are defined as
25industries involved in vaccines and immunotherapeutics,
26biobased chemicals, precision and digital agriculture, and
27medical devices and diagnostics.
   28The bill changes the number of members who are selected by
29the board for the Iowa innovation council. Members who are
30representatives from businesses in targeted industries increase
31from 7 to 14, and members who are individuals who serve on the
32technology commercialization committee, or other committees of
33the board, and who have expertise with the targeted industries
34are reduced from 13 to 6. In addition, one member will be
35selected by the board and must have experience supporting
-6-1businesses in the targeted industries. Currently, that member
2is selected by the governor and has to also serve on the Iowa
3capital investment board. The bill provides that a member
4serving on the council immediately prior to the effective date
5of this Act shall continue to serve until the member’s term