15E.63 - IOWA CAPITAL INVESTMENT BOARD.
15E.63 IOWA CAPITAL INVESTMENT BOARD.
1. The Iowa capital investment board is created as a state
governmental board and the exercise by the board of powers conferred
by this division shall be deemed and held to be the performance of
essential public purposes. The purpose of the board shall be to
mobilize venture equity capital for investment in such a manner that
will result in a significant potential to create jobs and to
diversify and stabilize the economy of the state.
2. The board shall consist of five voting members and four
nonvoting advisory members who are members of the general assembly.
Members shall be selected based upon demonstrated expertise and
competence in the supervision of investment managers, in the
fiduciary management of investment funds, or in the management and
administration of tax credit allocation programs. Members shall not
have an interest in any person to whom a tax credit is allocated and
issued by the board.
a. The five voting members shall be appointed by the governor
and confirmed by the senate pursuant to section 2.32. One nonvoting
member shall be appointed by the majority leader of the senate after
consultation with the president of the senate and one nonvoting
member shall be appointed by the minority leader of the senate. One
nonvoting member shall be appointed by the speaker of the house of
representatives after consultation with the majority leader of the
house of representatives and one nonvoting member shall be appointed
by the minority leader of the house of representatives.
b. The five voting members shall be appointed to five-year
staggered terms that shall be structured to allow the term of one
member to expire each year. The nonvoting members shall serve terms
as provided in section 69.16B. Vacancies shall be filled in the same
manner as the appointment of the original members.
c. Members shall be compensated by the board for direct
expenses and mileage but members shall not receive a director's fee,
per diem, or salary for service on the board.
3. The board shall have the power to engage consultants, expend
funds, invest funds, contract, bond or insure against loss, or
perform any other act necessary to carry out its purpose, provided,
however, that the board shall not hire employees.
4. Members of the board shall be indemnified against loss to the
broadest extent permissible under chapter 669.
5. Meetings of the board shall, except to the extent necessary to
protect confidential information with respect to investments in the
Iowa fund of funds, be subject to chapter 21.
6. The board shall, in cooperation with the department of
revenue, establish criteria and procedures for the allocation and
issuance of tax credits to designated investors by means of
certificates issued by the board. The criteria shall include the
contingencies that must be met for a certificate to be redeemable by
a designated investor or transferee in order to receive a tax credit.
The contingencies to redemption shall be tied to the scheduled rates
of return of equity interests purchased by designated investors in
the Iowa fund of funds. The procedures established by the board, in
cooperation with the department of revenue, shall relate to the
procedures for the issuance of the certificates and the related tax
credits, for the transfer of a certificate and related tax credit by
a designated investor, and for the redemption of a certificate and
related tax credit by a designated investor or transferee. The board
shall also establish criteria and procedures for assessing the
likelihood of future certificate redemptions by designated investors
and transferees, including, without limitation, criteria and
procedures for evaluating the value of investments made by the Iowa
fund of funds and the returns from the Iowa fund of funds.
7. Pursuant to section 15E.66, the board shall issue certificates
which may be redeemable for tax credits to provide incentives to
designated investors to make equity investments in the Iowa fund of
funds. The board shall issue the certificates so that not more than
twenty million dollars of tax credits may be initially redeemable in
any fiscal year. The board shall indicate on the tax certificate the
principal amount of the tax credit and the date or dates on which the
credit may be first claimed.
8. The board may charge a placement fee to the Iowa fund of funds
with respect to the issuance of a certificate and related tax credit
to a designated investor, but the fee shall be charged only to pay
for reasonable and necessary costs of the board and shall not exceed
one-half of one percent of the equity investment of the designated
investor.
9. The board shall, in consultation with the Iowa capital
investment corporation, publish an annual report of the activities
conducted by the Iowa fund of funds, and present the report to the
governor and the general assembly. The annual report shall include a
copy of the audit of the Iowa fund of funds and a valuation of the
assets of the Iowa fund of funds, review the progress of the
investment fund allocation manager in implementing its investment
plan, and describe any redemption or transfer of a certificate issued
pursuant to this division, provided, however, that the annual report
shall not identify any specific designated investor who has redeemed
or transferred a certificate. Every five years, the board shall
publish a progress report which shall evaluate the progress of the
state of Iowa in accomplishing the purposes stated in section 15E.61.
10. The board shall redeem a certificate submitted to the board
by a designated investor and shall calculate the amount of the
allowable tax credit based upon the investment returns received by
the designated investor and its predecessors in interest and the
provisions of the certificate. Upon submission of a certificate for
redemption, the board shall issue a verification to the department of
revenue setting forth the maximum tax credit which may be claimed by
the designated investor with respect to the redemption of the
certificate.
11. The board shall adopt rules pursuant to chapter 17A necessary
to administer the duties of the board. Section History: Recent Form
2002 Acts, ch 1005, §3; 2002 Acts, ch 1006, §13, 14; 2003 Acts, ch
145, §286; 2005 Acts, ch 7, §1, 4; 2008 Acts, ch 1156, §18, 58; 2009
Acts, ch 41, §16
Referred to in § 15E.42, 15E.51, 15E.62
Additional board duties; §15E.41--15E.46, 15E.51