HF 1881

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 01:32pm

A bill for an act
relating to economic development; establishing the Minnesota Regenerative
Medicine Research Institute and the regenerative medicine research project
funding program; repealing the long-term care insurance tax credit; appropriating
money for a state matching funds program; authorizing rulemaking; requiring
a report; proposing coding for new law in Minnesota Statutes, chapter 116J;
repealing Minnesota Statutes 2012, section 290.0672.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [116J.886] SCOPE.
new text end

new text begin Sections 116J.886 to 116J.8864 shall be known as the Regenerative Medicine
Research Act to provide further investment in regenerative medicine which will benefit
the state's economy, reduce the long-term costs for the state related to treating debilitating
illnesses, advance the regenerative medicine industry, and facilitate clinical research
opportunities in Minnesota for both private and public institutions.
new text end

Sec. 2.

new text begin [116J.8861] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For the purposes of sections 116J.886 to 116J.8864, the
following terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of employment
and economic development.
new text end

new text begin Subd. 3. new text end

new text begin Institute. new text end

new text begin "Institute" means the Minnesota Regenerative Medicine
Research Institute under section 116J.8862.
new text end

new text begin Subd. 4. new text end

new text begin Program. new text end

new text begin "Program" means the program authorized under section
116J.8864.
new text end

new text begin Subd. 5. new text end

new text begin Regenerative medicine research project. new text end

new text begin "Regenerative medicine
research project" means any research relating to basic, preclinical, or clinical work to
produce a drug, biological or chemical material, compound, or medical device designed
to augment, repair, replace, or regenerate organs and tissue that have been damaged by
disease, injury, or the natural aging process.
new text end

new text begin Subd. 6. new text end

new text begin Research funding. new text end

new text begin "Research funding" means a grant, loan, or loan
guarantee for obligations paid, to be paid, or incurred, which are reasonably required
for basic research, therapy development, and the development of pharmacologies and
treatments through preclinical or clinical trials, including:
new text end

new text begin (1) direct costs of conducting research;
new text end

new text begin (2) indirect administrative costs, not to exceed five percent for any single funding
recipient; and
new text end

new text begin (3) the purchase and installation of furniture, fixtures, and equipment, not to exceed
five percent for any single funding recipient. Research funding does not include capital
or permanent building expenses.
new text end

Sec. 3.

new text begin [116J.8862] REGENERATIVE MEDICINE RESEARCH INSTITUTE.
new text end

new text begin Subdivision 1. new text end

new text begin Established. new text end

new text begin (a) The commissioner shall establish the Minnesota
Regenerative Medicine Research Institute (MRMRI) as a nonprofit, collaborative research
and economic development initiative between the Department of Employment and
Economic Development, the University of Minnesota, the Department of Human Services,
and private industry partners. MRMRI is not a state agency.
new text end

new text begin (b) The board established in subdivision 2 shall organize and operate MRMRI as
a not-for-profit corporation and in a manner and form that the board determines best
allows MRMRI to carry out its objectives.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin (a) MRMRI is governed by a board of 11 directors, appointed by
the governor to three-year terms. The board is comprised of:
new text end

new text begin (1) the commissioner of employment and economic development;
new text end

new text begin (2) the commissioner of human services;
new text end

new text begin (3) the director of the Minnesota Stem Cell Institute at the University of Minnesota;
new text end

new text begin (4) a representative of a Minnesota-based trade association with the largest number
of bioscience companies as its membership;
new text end

new text begin (5) a representative of a Minnesota-based trade association with the largest number
of hospitals as its membership;
new text end

new text begin (6) one member of the house of representatives appointed by the speaker of the
house and one member of the house of representatives appointed by the minority leader
of the house of representatives;
new text end

new text begin (7) one member of the senate appointed by the majority leader of the senate and one
member of the senate appointed by the minority leader of the senate; and
new text end

new text begin (8) two members of the public appointed by the governor with the advice and
consent of the senate, who are not members of the senate or house of representatives or
officers or employees of any agency in the executive branch.
new text end

new text begin All members shall be residents of the state.
new text end

new text begin (b) The legislative members serve at the pleasure of the appointing authority and are
nonvoting members. Members of the board are public officials for purposes of chapter
10A. Except for legislators and members appointed under paragraph (a), clauses (1) and
(2), the terms, removal of members, and filling of vacancies for board members shall be
as provided in section 15.0575. Compensation of members, other than legislators, is as
provided in section 15.0575. The chair of the board shall be designated by the governor
from among the voting members of the board.
new text end

new text begin Subd. 3. new text end

new text begin Board actions. new text end

new text begin A majority of the board, excluding vacancies, constitutes a
quorum to conduct its business, to exercise its powers, and for all other purposes.
new text end

new text begin Subd. 4. new text end

new text begin Meeting by telephone or other means. new text end

new text begin (a) If compliance with section
13D.02 is impractical, the board may conduct a meeting of its members by telephone or
other electronic means if the following conditions are met:
new text end

new text begin (1) all members of the board participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
new text end

new text begin (2) members of the public present at the regular meeting location of the board can
clearly hear all discussion and testimony and all votes of members of the board and, if
needed, receive those services required by sections 15.44 and 15.441;
new text end

new text begin (3) at least one member of the board is physically present at the regular meeting
location; and
new text end

new text begin (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
new text end

new text begin (b) Each member of the board participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining a
quorum and participating in all proceedings.
new text end

new text begin (c) If a telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and of
the provisions of paragraph (a). The timing and method of providing notice is governed
by section 13D.04.
new text end

new text begin Subd. 5. new text end

new text begin Administrative services. new text end

new text begin The commissioner shall provide administrative
services to the institute, establish an annual budget for the institute, provide an
evaluation of project applications pursuant to section 116J.8864, and promptly inform the
commissioner of management and budget regarding all expenditures.
new text end

new text begin Subd. 6. new text end

new text begin Personal liability. new text end

new text begin Members of the board and officers of the institute are
not personally liable for any debt or obligation of the institute.
new text end

new text begin Subd. 7. new text end

new text begin In general. new text end

new text begin The institute has all the powers necessary to carry out its
duties under this chapter.
new text end

new text begin Subd. 8. new text end

new text begin Sunset. new text end

new text begin The institute established under this section expires on June 30,
2024, or two years after the last approved project is completed, whichever occurs sooner.
new text end

Sec. 4.

new text begin [116J.8863] POWERS; DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Bylaws; rules. new text end

new text begin The board of the institute shall adopt bylaws for its
organization and internal management. The commissioner may adopt rules governing the
institute's operations, properties, and facilities.
new text end

new text begin Subd. 2. new text end

new text begin Power to sue; enter contracts. new text end

new text begin The institute may sue and be sued. The
institute may make and enter into contracts, leases, and agreements with individuals and
private and public entities as necessary to perform its duties and exercise its powers.
new text end

new text begin Subd. 3. new text end

new text begin Outside funding. new text end

new text begin The institute may accept appropriations, gifts, grants,
and bequests.
new text end

new text begin Subd. 4. new text end

new text begin Employees. new text end

new text begin The institute may hire employees or delegate any of its powers
or responsibilities to a state agency or entity through mutual agreement.
new text end

new text begin Subd. 5. new text end

new text begin Revolving funds. new text end

new text begin All funds received by the institute through state
appropriations, loan repayments, or royalty payments must be held in a special account in
the state treasury by the commissioner of management and budget until June 30, 2024,
after which all remaining funds shall be returned to the general fund.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin The institute must report to the legislature by January 1 of each
odd-numbered year on implementation of projects since the last report and on plans for
the upcoming fiscal year.
new text end

Sec. 5.

new text begin [116J.8864] REGENERATIVE MEDICINE RESEARCH INSTITUTE
FUNDING PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The institute shall establish a regenerative
medicine research funding program to provide loans, grants, or loan guarantees on a
competitive basis to projects that meet the requirements described in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Grant applications; criteria. new text end

new text begin The institute shall develop a project
application process for grants, loans, or loan guarantees for qualified projects. To be
eligible for a funding under the program, a project must meet the following criteria:
new text end

new text begin (1) the institute may pay no more than 30 percent of the total costs of any project
and nonstate sources must pay at least 70 percent of the costs of the project. A nonstate
source may meet all or part of the required share of the matching costs of the project
through the prior purchase of scientific equipment and materials incidental to the project,
provided the purchase is completed not more than two years prior to the approval of
funding by the institute;
new text end

new text begin (2) the project must not duplicate or supplant any other research or project already
conducted by the federal government, or for which federal funding is otherwise available,
but federal funds may be used to meet the nonstate matching requirements in clause (1);
new text end

new text begin (3) the project must be carried out directly by the grant recipient; and
new text end

new text begin (4) at a minimum, the application must include the following information:
new text end

new text begin (i) certification that the required match is available and committed;
new text end

new text begin (ii) a detailed estimate, along with necessary supporting evidence, of the total cost
of the research project;
new text end

new text begin (iii) an assessment of the potential to attract new or continue existing public and
private research grant awards resulting from the project;
new text end

new text begin (iv) a detailed risk analysis projecting the likelihood of clinical success resulting in
revenues or royalty payments from the project;
new text end

new text begin (v) an assessment of the likelihood for and potential cost savings for publicly
funded health care and long-term care programs from the project as a result of reducing
the incidence or lowering the treatment costs of debilitating illnesses and diseases over
the next ten years;
new text end

new text begin (vi) a timeline indicating the major milestones of research projects and their
anticipated completion dates, including any previously completed similar research; and
new text end

new text begin (vii) an estimate of any potential current and future employment opportunities
within the state, stimulation of economic growth, and the possibility for advancing the
development of commercially successful and affordable regenerative medicine products,
processes, or services. These factors are not in priority order and the institute may weigh
each factor, depending upon the facts and circumstances, as the institute considers
appropriate.
new text end

new text begin Subd. 3. new text end

new text begin Grant approvals. new text end

new text begin The institute shall determine for each project for
which an application is submitted whether it meets the criteria in subdivision 2. Upon
determination by the institute that a project meets the specified criteria in subdivision 2,
the institute may approve a grant, loan, or loan guarantee under the program for the project
in an amount equal to 30 percent of the total cost of the project. Beginning January 1,
2015, the institute must report to the legislature by January 1 of each year on all projects
approved by the institute during the fiscal year. The institute may approve total grants,
loans, or guarantees to the extent of available funding.
new text end

new text begin Subd. 4. new text end

new text begin Disbursements. new text end

new text begin Disbursement of grants, loans, or loan guarantees
approved by the institute under the program must be made for eligible project costs as
incurred according to the project grant agreement and applicable state laws governing
the payment.
new text end

Sec. 6. new text begin APPROPRIATION.
new text end

new text begin $8,000,000 in fiscal year 2015 and $9,000,000 in fiscal year 2016 is appropriated
from the general fund to the commissioner of employment and economic development
for the purposes of sections 1 to 5. Up to one-half of one percent of the total amount
appropriated may be used as administrative expenses related to the staff and operations of
the institute and the board.
new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 290.0672, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end