HF 132

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; establishing the Minnesota Biomedical
Sciences Research Facilities Authority and the biomedical sciences research
project funding program; providing for the University of Minnesota to apply
for facility program funds; authorizing sale of state bonds to fund program;
proposing coding for new law in Minnesota Statutes, chapter 116J.

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

Section 1.

new text begin [116J.8860] PURPOSE.
new text end

new text begin Sections 116J.8861 to 116J.8865 provide a framework for a biomedical science
research funding program to further the investment in biomedical science research
facilities in the state which will benefit the state's economy, advance the biomedical
technology industry, benefit human health, and facilitate research collaboration between
the University of Minnesota and other private and public institutions in the state.
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 Definitions. new text end

new text begin Notwithstanding section 116J.03, for the purposes of
sections 116J.8860 to 116J.8865, the terms in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin "Authority" means the Minnesota Biomedical Science
Research Facilities Authority.
new text end

new text begin Subd. 3. new text end

new text begin Biomedical science research facility. new text end

new text begin "Biomedical science research
facility" means a building located in the state to be used as research facilities and
laboratories for biomedical science and biomedical technology.
new text end

new text begin Subd. 4. 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. 5. new text end

new text begin Costs. new text end

new text begin "Costs" of a project means the sum of all obligations paid, or
to be paid, or incurred which are reasonably required for the design, construction, and
completion of the project, including, but not limited to:
new text end

new text begin (1) site acquisition;
new text end

new text begin (2) soil and environmental testing, surveys, estimates, plans and specifications,
supervision of construction, and other engineering and architectural services;
new text end

new text begin (3) payment under construction contracts and for payment and performance bonds;
and
new text end

new text begin (4) purchase and installation of furniture, fixtures, and equipment.
new text end

new text begin Subd. 6. new text end

new text begin Program. new text end

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

new text begin Subd. 7. new text end

new text begin Project. new text end

new text begin "Project" means the acquisition, construction, improvement,
expansion, repair, or rehabilitation of all or any part of any structure, facility, infrastructure,
or equipment necessary for biomedical science research.
new text end

Sec. 3.

new text begin [116J.8862] MINNESOTA BIOMEDICAL SCIENCE RESEARCH
FACILITIES AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) The Minnesota Biomedical Science Research
Facilities Authority consists of:
new text end

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

new text begin (2) the general manager of the bioscience business incubator facility established in
2003 as a 501(c)(3) organization under the Internal Revenue Code and located adjacent to
the University of Minnesota bus transit way in St. Paul, Minnesota;
new text end

new text begin (3) one current and one former member of the senate appointed by the majority
leader of the senate;
new text end

new text begin (4) one current and one former member of the senate appointed by the minority
leader of the senate;
new text end

new text begin (5) one current and one former member of the house of representatives appointed by
the speaker of the house of representatives;
new text end

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

new text begin (7) four members 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. All members appointed by the governor
shall be residents of the state.
new text end

new text begin (b) The current legislative members serve at the pleasure of the appointing authority
and are nonvoting members. The members of the authority, other than the commissioner
of employment and economic development, shall be appointed for staggered terms of
four years. The initial four members of the authority appointed by the governor shall be
appointed for a term of one, two, three, and four years, respectively, as specified by the
governor. Members of the authority are public officials for purposes of chapter 10A.
Except for current legislators and members appointed under paragraph (a), clauses (1) and
(2), the terms, removal of members, and filling of vacancies for authority members shall be
as provided in section 15.0575. Compensation of members, other than current legislators,
is as provided in section 15.0575. The chair of the authority shall be designated by the
governor from among the voting members of the authority.
new text end

new text begin Subd. 2. new text end

new text begin Authority actions. new text end

new text begin A majority of the authority, 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. 3. 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 authority 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 authority 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 authority
can clearly hear all discussion and testimony and all votes of members of the authority
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 authority 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 authority 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 meeting, the
authority, to the extent practicable, shall allow a person to monitor the meeting
electronically from a remote location. The authority may require the person making such a
connection to pay for documented marginal costs that the authority incurs as a result of
the additional connection.
new text end

new text begin (d) If a telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the authority 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 (c). The timing and method of providing notice
is governed by section 13D.04.
new text end

new text begin Subd. 4. new text end

new text begin Administrative services. new text end

new text begin The commissioner shall provide administrative
services to the authority, establish an annual budget for the authority, provide an evaluation
of grant applications pursuant to section 116J.8864, subdivision 2, and promptly inform
the commissioner of finance regarding all grant approvals.
new text end

new text begin Subd. 5. new text end

new text begin Personal liability. new text end

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

new text begin Subd. 6. new text end

new text begin In general. new text end

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

new text begin Subd. 7. new text end

new text begin Sunset. new text end

new text begin The authority established under this section expires on June 30,
2019, 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 authority shall adopt bylaws for its organization
and internal management. The commissioner may adopt rules governing the authority'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 authority may sue and be sued. The
authority may make and enter into contracts, leases, and agreements necessary to perform
its duties and exercise its powers.
new text end

new text begin Subd. 3. new text end

new text begin Contract for services. new text end

new text begin The authority may retain or contract for the
services of accountants, financial advisers, and other consultants or agents needed to
perform its duties and exercise its powers.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

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

Sec. 5.

new text begin [116J.8864] BIOMEDICAL SCIENCE RESEARCH FACILITIES
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 authority shall establish a biomedical
science research facilities funding program to provide grants to the Board of Regents
of the University of Minnesota for 90 percent of the costs of projects approved under
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Grant applications. new text end

new text begin The Board of Regents of the University of Minnesota
shall submit applications for grants for a project to the authority. To be eligible for a grant
under the program, a project must meet the following criteria:
new text end

new text begin (1) the University of Minnesota, either acting on its own or in collaboration with
another private or public institution, must pay ten percent of the costs of the project
and may meet all or part of the required share of the 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 a grant by
the authority;
new text end

new text begin (2) the University of Minnesota must be responsible for the ongoing facilities
maintenance and operations of the biomedical science research facility resulting from
the project;
new text end

new text begin (3) if the application is for a project in which the University of Minnesota proposes
to work in collaboration with another private or public institution, the other institution
must be one that generates at least $75,000,000 annually in competitive federal funding
from the National Institutes of Health, National Science Foundation, or similar agency;
new text end

new text begin (4) the biomedical science research facility resulting from the project will be owned
by the Board of Regents of the University of Minnesota; and
new text end

new text begin (5) at a minimum, the application must include the following information:
new text end

new text begin (i) a resolution of the governing body 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 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 facility operating financial analysis projecting the annual expected
revenues and costs associated with the project;
new text end

new text begin (v) a timeline indicating the major milestones of the project and their anticipated
completion dates; and
new text end

new text begin (vi) an assessment of the likelihood of public benefits from the project, including
benefitting public health and enhancement of employment opportunities within the state,
stimulation of economic growth, and the potential for advancing the development of
commercially successful and affordable products, processes, or services.
new text end

new text begin These factors are not in priority order and the authority may weigh each factor, depending
upon the facts and circumstances, as the authority 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 authority shall determine for each project for which
an application is submitted whether it appears in the authority's judgment to conform to the
purposes and policies in section 116J.8860 and meets the criteria in subdivision 2. Upon
determination by the authority that a project conforms to the purposes in section 116J.8860
and meets the specified criteria in subdivision 2, the authority may approve a grant under
the program for the project in an amount equal to 90 percent of the costs of the project.
Beginning in calendar year 2008, the authority must report to the legislature by March 1 of
each year on all projects approved by the authority during the preceding 12 months. The
authority may approve total grants up to the percentage of the amount of bond proceeds
authorized in section 116J.8865, for the fiscal year ending June 30 for the following years:
new text end

new text begin Fiscal Year new text end	new text begin Percent of Bond Proceeds new text end
new text begin 2008 new text end	new text begin 5.8 percent new text end
new text begin 2009 new text end	new text begin 21.5 percent new text end
new text begin 2011 new text end	new text begin 45.0 percent new text end
new text begin 2013 new text end	new text begin 71.0 percent new text end
new text begin 2015 new text end	new text begin 100.0 percent new text end

new text begin Subd. 4. new text end

new text begin Disbursements. new text end

new text begin Disbursement of grants approved by the authority 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 [116J.8865] AUTHORIZATION OF BONDS.
new text end

new text begin To provide money in the biomedical science research facilities funding program
under Minnesota Statutes, section 116J.8864, the commissioner of finance shall sell and
issue bonds of the state in the aggregate amount of $279,000,000 in the manner, upon
the terms, and with the effect prescribed by sections 16A.631 to 16A.675 and by the
Minnesota Constitution, article XI, sections 4 to 7. Before the issuance of any series of
bonds, the authority shall determine that the proceeds of the series of bonds to be issued
will be needed to make disbursements of grants approved by the authority under the
program. Section 16A.642 does not apply to this section.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective the day following final enactment.
new text end