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Senate File 228 - EnrolledAn Actrelating to bioscience-based economic development, the
establishment of a bioscience development corporation, and
membership on the Iowa innovation council.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 8.11, subsection 2, paragraph a, Code
2019, is amended to read as follows:
a. “Disability” means the same as provided defined in
section 15.102, subsection 10, paragraph “b”, subparagraph (1).
Sec. 2. Section 12.34, subsection 1, Code 2019, is amended
to read as follows:
1. The treasurer of state may invest up to the lesser of
one hundred eight million dollars or twenty-five percent of
the balance of the state pooled money fund in certificates
of deposit in eligible lending institutions as provided
in section 12.32, this section, and sections 12.35 through
12.43. One-half of the moneys invested pursuant to this
section shall be made available under the program implemented
pursuant to section 12.43 to increase the availability of lower
cost moneys for purposes of injecting needed capital into
small businesses which are fifty-one percent or more owned,
operated, and actively managed by one or more women, minority
persons, or persons with disabilities. “Disability” means and
“minority person” mean the same as defined in section 15.102,
subsection 10. A “minority person” means the same as defined
in section 15.102, subsection 10. The treasurer shall invest
the remaining one-half of the moneys invested pursuant to this
section to support any other eligible applicant as provided in
section 12.43.
Sec. 3. Section 15.102, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION. 1A. “Bioscience-based economic development”
means economic development related to industries involved in
any of the bioscience development platforms.
NEW SUBSECTION. 1B. “Bioscience development platforms”
means industries involved in any of the following:
a. Vaccines and immunotherapeutics.
b. Biobased chemicals.
c. Precision and digital agriculture.
d. Medical devices and medical diagnostics.
-1- Sec. 4. Section 15.102, subsection 5, Code 2019, is amended
to read as follows:
5. “Corporation” means the Iowa innovation a bioscience
development corporation created pursuant to section 15.107.
Sec. 5. Section 15.106B, subsection 2, paragraph b, Code
2019, is amended to read as follows:
b. Establish a nonprofit corporation pursuant to
section 15.107, for the purpose of receiving and disbursing
funds from public or private sources to be used to enhance
bioscience-based economic development in the state and to
further the overall development and economic well-being of the
state.
Sec. 6. Section 15.106B, subsection 2, paragraph d,
subparagraph (1), Code 2019, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (i) Services to expand,
enhance, and advance the bioscience development platforms.
Sec. 7. Section 15.107, Code 2019, is amended by striking
the section and inserting in lieu thereof the following:
15.107 Bioscience development corporation.
1. The authority shall establish a bioscience development
corporation as a nonprofit corporation organized under chapter
504 and qualifying under section 501(c)(3) of the Internal
Revenue Code as an organization exempt from taxation. Unless
otherwise provided in this subchapter, the corporation is
subject to the provisions of chapter 504. The corporation
shall be established for the purpose of providing services and
receiving and disbursing funds from public or private sources
to enhance bioscience-based economic development in the state
and to further the overall development and economic well-being
of the state.
2. The corporation shall collaborate with the authority as
described in this subchapter, but the corporation shall not
be considered, in whole or in part, an agency, department, or
administrative unit of the state.
-2- a. The corporation shall not receive appropriations from the
general assembly.
b. The corporation shall not be required to comply with
any requirements that apply to a state agency, department, or
administrative unit and shall not exercise any sovereign power
of the state.
c. The corporation shall not have authority to pledge the
credit of the state, and the state shall not be liable for
the debts or obligations of the corporation. All debts and
obligations of the corporation shall be payable solely from the
corporation’s funds.
3. a. The corporation shall be established so that
donations and bequests to the corporation qualify as tax
deductible under state income tax laws and under section
501(c)(3) of the Internal Revenue Code.
b. The corporation shall be established for the purpose of
expanding bioscience-based economic development opportunities
in the state of Iowa and for Iowa businesses, and to further
the overall development and economic well-being of the state.
The corporation may effectuate this purpose by performing
certain functions delegated to it by the authority pursuant to
section 15.106B.
4. The articles of the corporation shall provide for its
governance and its efficient management. In providing for its
governance, the articles of the corporation shall address the
following:
a. A board of directors to govern the corporation.
(1) The board of directors shall initially be comprised of
seven members appointed by the governor to concurrent terms
of three years. Two of such members shall be subject to
confirmation by the senate.
(2) For appointments subsequent to the initial appointments
pursuant to subparagraph (1), two of the members shall be
appointed by the governor, subject to confirmation by the
senate, to staggered terms of three years each, and the
-3-remaining five members shall be selected by a majority vote of
the board of directors of the corporation for terms the length
of which shall be provided in the articles of the corporation.
(3) The governor and the board of directors of the
corporation shall not appoint or select any person who is
either the spouse or a relative within the first degree of
consanguinity of a serving member of the board of directors or
of the authority board.
b. The appointment of a chief executive officer by the board
to manage the corporation’s daily operations.
c. The delegation of such powers and responsibilities
to the chief executive officer as may be necessary for the
corporation’s efficient operation.
d. The employment of personnel necessary for the efficient
performance of the duties assigned to the corporation. All
such personnel shall be considered employees of a private,
nonprofit corporation and shall be exempt from the personnel
requirements imposed on state agencies, departments, and
administrative units.
e. The financial operations of the corporation including the
authority to receive and expend funds from public and private
sources and to use its property, money, or other resources for
the purpose of the corporation.
5. The board of directors of the corporation and the chief
executive officer shall act to ensure all of the following:
a. That the corporation reviews and, at the board’s
direction, implements the applicable portions of the strategic
plan developed by members of the authority pursuant to section
15.105.
b. That the corporation prepares an annual budget that
includes funding levels for the corporation’s activities and
that shows sufficient moneys are available to support those
activities.
c. That the corporation annually completes and files an
information return as described in section 422.15 and that the
-4-information return is submitted to the general assembly.
Sec. 8. Section 15.107A, subsection 2, unnumbered paragraph
1, Code 2019, is amended to read as follows:
The corporation shall, to the extent its articles so provide
and within its public purpose, do all of the following with
the purpose of increasing innovation in Iowa’s economy, and
bringing more innovative businesses to the state, and enhancing
and expanding the bioscience development platforms:
Sec. 9. Section 15.107A, subsection 2, paragraph b, Code
2019, is amended to read as follows:
b. Act as an innovation intermediary by aligning local
technologies, assets, and resources to work together on
advancing innovation and the bioscience development platforms.
Sec. 10. Section 15.107C, subsection 2, paragraph b, Code
2019, is amended to read as follows:
b. The report shall describe how the operations and
activities serve the interests of the state, enhance
bioscience-based economic development in the state, and further
economic development.
Sec. 11. Section 15.117A, subsection 2, paragraph a,
subparagraphs (1) and (2), Code 2019, are amended to read as
follows:
(1) Twenty members selected by the board to serve staggered,
two-year terms beginning and ending as provided in section
69.19. Of the members selected by the board, seven fourteen
shall be representatives from businesses in the targeted
industries and thirteen six shall be individuals who serve
on the technology commercialization committee created in
section 15.116, or other committees of the board, and who
have expertise with the targeted industries. At least ten of
the members selected pursuant to this subparagraph shall be
executives actively engaged in the management of a business in
a targeted industry. The members selected pursuant to this
paragraph shall reflect the size and diversity of businesses
in the targeted industries and of the various geographic areas
-5-of the state.
(2) One member, selected by the governor board, who also
serves on the Iowa capital investment board created in section
15E.63 has experience supporting businesses in the targeted
industries.
Sec. 12. TRANSITION — APPOINTMENT AND TERMS OF IOWA
INNOVATION COUNCIL MEMBERS. This Act shall not affect the
appointment or term of a member serving on the Iowa innovation
council immediately prior to the effective date of this Act.
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
LINDA UPMEYERSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 228, Eighty-eighth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2019______________________________
KIM REYNOLDSGovernorko/tm
establishment of a bioscience development corporation, and
membership on the Iowa innovation council.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 8.11, subsection 2, paragraph a, Code
2019, is amended to read as follows:
a. “Disability” means the same as provided defined in
section 15.102, subsection 10, paragraph “b”, subparagraph (1).
Sec. 2. Section 12.34, subsection 1, Code 2019, is amended
to read as follows:
1. The treasurer of state may invest up to the lesser of
one hundred eight million dollars or twenty-five percent of
the balance of the state pooled money fund in certificates
of deposit in eligible lending institutions as provided
in section 12.32, this section, and sections 12.35 through
12.43. One-half of the moneys invested pursuant to this
section shall be made available under the program implemented
pursuant to section 12.43 to increase the availability of lower
cost moneys for purposes of injecting needed capital into
small businesses which are fifty-one percent or more owned,
operated, and actively managed by one or more women, minority
persons, or persons with disabilities. “Disability” means and
“minority person” mean the same as defined in section 15.102,
subsection 10. A “minority person” means the same as defined
in section 15.102, subsection 10. The treasurer shall invest
the remaining one-half of the moneys invested pursuant to this
section to support any other eligible applicant as provided in
section 12.43.
Sec. 3. Section 15.102, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION. 1A. “Bioscience-based economic development”
means economic development related to industries involved in
any of the bioscience development platforms.
NEW SUBSECTION. 1B. “Bioscience development platforms”
means industries involved in any of the following:
a. Vaccines and immunotherapeutics.
b. Biobased chemicals.
c. Precision and digital agriculture.
d. Medical devices and medical diagnostics.
-1- Sec. 4. Section 15.102, subsection 5, Code 2019, is amended
to read as follows:
5. “Corporation” means the Iowa innovation a bioscience
development corporation created pursuant to section 15.107.
Sec. 5. Section 15.106B, subsection 2, paragraph b, Code
2019, is amended to read as follows:
b. Establish a nonprofit corporation pursuant to
section 15.107, for the purpose of receiving and disbursing
funds from public or private sources to be used to enhance
bioscience-based economic development in the state and to
further the overall development and economic well-being of the
state.
Sec. 6. Section 15.106B, subsection 2, paragraph d,
subparagraph (1), Code 2019, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (i) Services to expand,
enhance, and advance the bioscience development platforms.
Sec. 7. Section 15.107, Code 2019, is amended by striking
the section and inserting in lieu thereof the following:
15.107 Bioscience development corporation.
1. The authority shall establish a bioscience development
corporation as a nonprofit corporation organized under chapter
504 and qualifying under section 501(c)(3) of the Internal
Revenue Code as an organization exempt from taxation. Unless
otherwise provided in this subchapter, the corporation is
subject to the provisions of chapter 504. The corporation
shall be established for the purpose of providing services and
receiving and disbursing funds from public or private sources
to enhance bioscience-based economic development in the state
and to further the overall development and economic well-being
of the state.
2. The corporation shall collaborate with the authority as
described in this subchapter, but the corporation shall not
be considered, in whole or in part, an agency, department, or
administrative unit of the state.
-2- a. The corporation shall not receive appropriations from the
general assembly.
b. The corporation shall not be required to comply with
any requirements that apply to a state agency, department, or
administrative unit and shall not exercise any sovereign power
of the state.
c. The corporation shall not have authority to pledge the
credit of the state, and the state shall not be liable for
the debts or obligations of the corporation. All debts and
obligations of the corporation shall be payable solely from the
corporation’s funds.
3. a. The corporation shall be established so that
donations and bequests to the corporation qualify as tax
deductible under state income tax laws and under section
501(c)(3) of the Internal Revenue Code.
b. The corporation shall be established for the purpose of
expanding bioscience-based economic development opportunities
in the state of Iowa and for Iowa businesses, and to further
the overall development and economic well-being of the state.
The corporation may effectuate this purpose by performing
certain functions delegated to it by the authority pursuant to
section 15.106B.
4. The articles of the corporation shall provide for its
governance and its efficient management. In providing for its
governance, the articles of the corporation shall address the
following:
a. A board of directors to govern the corporation.
(1) The board of directors shall initially be comprised of
seven members appointed by the governor to concurrent terms
of three years. Two of such members shall be subject to
confirmation by the senate.
(2) For appointments subsequent to the initial appointments
pursuant to subparagraph (1), two of the members shall be
appointed by the governor, subject to confirmation by the
senate, to staggered terms of three years each, and the
-3-remaining five members shall be selected by a majority vote of
the board of directors of the corporation for terms the length
of which shall be provided in the articles of the corporation.
(3) The governor and the board of directors of the
corporation shall not appoint or select any person who is
either the spouse or a relative within the first degree of
consanguinity of a serving member of the board of directors or
of the authority board.
b. The appointment of a chief executive officer by the board
to manage the corporation’s daily operations.
c. The delegation of such powers and responsibilities
to the chief executive officer as may be necessary for the
corporation’s efficient operation.
d. The employment of personnel necessary for the efficient
performance of the duties assigned to the corporation. All
such personnel shall be considered employees of a private,
nonprofit corporation and shall be exempt from the personnel
requirements imposed on state agencies, departments, and
administrative units.
e. The financial operations of the corporation including the
authority to receive and expend funds from public and private
sources and to use its property, money, or other resources for
the purpose of the corporation.
5. The board of directors of the corporation and the chief
executive officer shall act to ensure all of the following:
a. That the corporation reviews and, at the board’s
direction, implements the applicable portions of the strategic
plan developed by members of the authority pursuant to section
15.105.
b. That the corporation prepares an annual budget that
includes funding levels for the corporation’s activities and
that shows sufficient moneys are available to support those
activities.
c. That the corporation annually completes and files an
information return as described in section 422.15 and that the
-4-information return is submitted to the general assembly.
Sec. 8. Section 15.107A, subsection 2, unnumbered paragraph
1, Code 2019, is amended to read as follows:
The corporation shall, to the extent its articles so provide
and within its public purpose, do all of the following with
the purpose of increasing innovation in Iowa’s economy, and
bringing more innovative businesses to the state, and enhancing
and expanding the bioscience development platforms:
Sec. 9. Section 15.107A, subsection 2, paragraph b, Code
2019, is amended to read as follows:
b. Act as an innovation intermediary by aligning local
technologies, assets, and resources to work together on
advancing innovation and the bioscience development platforms.
Sec. 10. Section 15.107C, subsection 2, paragraph b, Code
2019, is amended to read as follows:
b. The report shall describe how the operations and
activities serve the interests of the state, enhance
bioscience-based economic development in the state, and further
economic development.
Sec. 11. Section 15.117A, subsection 2, paragraph a,
subparagraphs (1) and (2), Code 2019, are amended to read as
follows:
(1) Twenty members selected by the board to serve staggered,
two-year terms beginning and ending as provided in section
69.19. Of the members selected by the board, seven fourteen
shall be representatives from businesses in the targeted
industries and thirteen six shall be individuals who serve
on the technology commercialization committee created in
section 15.116, or other committees of the board, and who
have expertise with the targeted industries. At least ten of
the members selected pursuant to this subparagraph shall be
executives actively engaged in the management of a business in
a targeted industry. The members selected pursuant to this
paragraph shall reflect the size and diversity of businesses
in the targeted industries and of the various geographic areas
-5-of the state.
(2) One member, selected by the governor board, who also
serves on the Iowa capital investment board created in section
15E.63 has experience supporting businesses in the targeted
industries.
Sec. 12. TRANSITION — APPOINTMENT AND TERMS OF IOWA
INNOVATION COUNCIL MEMBERS. This Act shall not affect the
appointment or term of a member serving on the Iowa innovation
council immediately prior to the effective date of this Act.
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
LINDA UPMEYERSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 228, Eighty-eighth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2019______________________________
KIM REYNOLDSGovernorko/tm