8.63 - INNOVATIONS FUND.
8.63 INNOVATIONS FUND.
1. An innovations fund is created in the state treasury under the
control of the department of management for the purpose of
stimulating and encouraging innovation and entrepreneurship in state
government by the awarding of repayable loans to state agencies.
2. The director of the department of management shall establish
an eight-member committee to be called the state innovations fund
committee. The committee shall review all requests for funds and
approve loans of funds if the committee determines that the loan
meets the requirements for a project loan or an enterprise loan as
provided in this section.
3. A project loan can be funded if the committee determines that
an agency request would result in cost savings or added revenue to
the general fund of the state. Eligible projects are projects which
cannot be funded from an agency's operating budget without adversely
affecting the agency's normal service levels. Projects may include,
but are not limited to, purchase of advanced technology, contracting
for expert services, and acquisition of equipment or supplies.
4. An enterprise loan can be funded if the committee determines
that the agency or business unit has a viable business plan and the
capability to use the loan to provide internal services to
government. The enterprise is expected to receive payment for
services from its customers and use those payments to cover its
expenses, including repayment of the loan.
5. A state agency seeking a loan from the innovations fund shall
complete an application form designed by the state innovations fund
committee which employs, for projects, a return on investment concept
and demonstrates how state general fund expenditures will be reduced
or how state general fund revenues will increase, or for enterprises,
a business plan that shows how the enterprise will meet customer
needs, provide value to customers, and demonstrate financial
viability. Minimum loan requirements for state agency requests shall
be determined by the committee. As an incentive to increase state
general fund revenues, an agency may retain up to fifty percent of
savings realized in connection with a project loan from the
innovations fund. The amount retained shall be determined by the
innovations fund committee. Savings realized but not retained by an
agency shall not be deposited in the innovations fund.
6. a. In order for the innovations fund to be
self-supporting, the innovations fund committee shall establish
repayment schedules for each innovations fund loan awarded. Agencies
shall repay the funds over a period not to exceed five years with
interest, at a rate to be determined by the innovations fund
committee.
b. If the department of management and the department of
revenue certify that the savings from a proposed innovations fund
project will result in a net increase in the balance of the general
fund of the state without a corresponding cost savings to the
requesting agency, and if the requesting agency meets all other
eligibility requirements, the innovations fund committee may approve
the loan for the project and not require repayment by the requesting
agency. There is appropriated from the general fund of the state to
the department of management for deposit in the innovations fund an
amount sufficient to repay the loan amount, which amount shall not
exceed the principal amount of the loan plus interest on the loan.
7. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the innovations fund shall be
credited to the innovations fund. Notwithstanding section 8.33,
moneys remaining in the innovations fund at the end of a fiscal year
shall not revert to the general fund of the state. Section History: Recent Form
95 Acts, ch 214, §18; 99 Acts, ch 208, § 16; 2003 Acts, ch 145,
§125, 293; 2004 Acts, ch 1175, §27, 28
Referred to in § 8A.123 Footnotes
For future repeal of this section effective July 1, 2010, see 2009
Acts, ch 170, §48, 50
Transfer of unencumbered and unobligated balances in innovations
fund at the end of the fiscal year beginning July 1, 2009, as well as
moneys to be credited in succeeding fiscal years, to the general fund
of the state; 2009 Acts, ch 170, §49