Iowa Admin. Code r. 261-116.4 - Maintenance, reporting, and revocation of certification
(1) In order to maintain certification, an
innovation fund must demonstrate compliance with the eligibility criteria set
forth in subrule 116.3(3) at all times during participation in the program. A
failure to comply with the eligibility criteria on an ongoing basis may result
in revocation of certification. The authority will notify an innovation fund if
the authority finds that the fund is not in compliance and will allow the
innovation fund a period of not more than 120 days in which to address such
noncompliance. If after 120 days the innovation fund remains in noncompliance,
the board may revoke the fund 's certification. The authority will not issue tax
credit certificates to investors in an innovation fund if such equity
investments are made at any point after the innovation fund has been found to
be in noncompliance or if the innovation fund 's certification has been
revoked.
(2) On or before December
31 of each year, each certified innovation fund shall collect and provide to
the board , in the manner and form prescribed by the authority , the following
information:
a. The amount of equity
investments made in the innovation fund , both on an annual and a cumulative
basis.
b. For each investment by an
innovation fund in a business:
(1) The amount
and date of the investment.
(2) The
name and industry of the business.
(3) The location or locations from which the
business operates.
(4) The number
of employees of the business located in Iowa and the number of employees of the
business located outside Iowa on the date of the initial investment by the
innovation fund in the business.
(5) The number of employees of the business
located in Iowa and the number of employees of the business located outside
Iowa at the close of the fiscal year which is the subject of the
report.
c. In order to
establish that an innovation fund has met the criterion found in subparagraph
116.3(3)"b"(5), the innovation fund shall provide
documentation and information in the manner and form required by the authority .
Such documentation and information may include, without limitation, contracts,
memoranda of understanding, letters of support, affidavits, joint press
releases, or a list and summary description of the dates and locations for
meetings held between the innovation fund and the other entities which allowed
for collaboration and coordination between the innovation fund and those
entities in an effort to achieve policy consistency.
d. In order to establish that an innovation
fund has met the criterion found in subparagraph
116.3(3)"b"(6), the innovation fund shall provide
documentation and information in the manner and form required by the authority .
Such documentation and information may include, without limitation, contracts,
memoranda of understanding, letters of support, affidavits, joint press
releases, or a list and summary description of the dates and locations for
meetings held between the innovation fund and regents institutions, the names
of representatives of regents institutions with whom the innovation fund has
met, and a brief summary of the discussions at those meetings. The innovation
fund shall also indicate if any business in which it has invested is
commercializing research developed at one of the regents
institutions.
(3) Upon
obtaining the required minimum threshold of $15 million in binding investment
commitments, an innovation fund shall submit a statement containing the names,
addresses, equity interests issued and consideration paid for the interests of
all limited partners or members who may initially qualify for the tax credits.
An innovation fund shall submit an amended statement as may be necessary from
time to time to reflect new equity interests or transfers in equity among
current equity holders or as any other information on the list may change. The
authority will consider requests submitted under Iowa Code section 15118. to
treat investor names and amounts as confidential.
(4) The board may revoke an innovation fund 's
certification if any of the following events occur:
a. An innovation fund fails to secure the
required $15 million in initial binding investment commitments within one year
of the date of certification by the board or fails at any point thereafter to
secure investment from its investors of at least $15 million. If an investor in
an innovation fund fails to make a capital call by the innovation fund and that
failure would cause the innovation fund to fail to secure the required minimum
$15 million in investment, then the authority will provide the innovation fund
a period of not more than 120 days after receiving notice of the failed capital
call to secure additional investment commitments sufficient to meet the
required minimum investment.
b. An
innovation fund fails to timely submit the report required in subrule
116.4(2).
c. An innovation fund
fails to maintain the eligibility criteria as set forth in subrule 116.3(3).
The
(5) If the board finds
that a fund is in noncompliance or revokes an innovation fund 's certification,
the board will not issue tax credit certificates to investors in the innovation
fund until the innovation fund manager demonstrates to the board that the
innovation fund again meets the eligibility criteria set forth in rule
261-1163. (15E). If an investor makes an equity investment prior to a notice of
noncompliance and a revocation of an innovation fund 's certification, the board
will issue the tax credit certificate as set forth in rule 261-1166. (15E). If
an investor is issued a tax credit certificate prior to a revocation of
certification, the investor shall have all the rights described in Iowa Code
section 15E52(5). as amended by 2013 Iowa Acts, House File 615.
Notes
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