1.1 	A bill for an act
1.2 	relating to economic development; establishing the Minnesota Biomedical 
1.3 	Sciences Research Facilities Authority and the biomedical sciences research 
1.4 	project funding program; providing for the University of Minnesota to apply 
1.5 	for facility program funds; authorizing sale of state bonds to fund program; 
1.6 	proposing coding for new law in Minnesota Statutes, chapter 116J.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [116J.886] PURPOSE.
1.9 	Sections 1 to 6 provide a framework for a biomedical science research funding 
1.10 	program for the purposes of which are to further the investment in biomedical sciences 
1.11 	research facilities in the state which will benefit the state's economy, advance the 
1.12 	biomedical technology industry, benefit human health, and facilitate research collaboration 
1.13 	between the University of Minnesota and other private and public institutions in the state.

1.14 	Sec. 2. [116J.887] DEFINITIONS.
1.15 		Subdivision 1.Definitions. For the purposes of this chapter, the terms in this section 
1.16 	have the meaning given them.
1.17 		Subd. 2.Authority. "Authority" means the Minnesota Biomedical Sciences 
1.18 	Research Facilities Authority.
1.19 		Subd. 3.Biomedical research science facility. "Biomedical research science 
1.20 	facility" means a facility located in the state to be used as research facilities and 
1.21 	laboratories for biomedical science and biomedical technology.
1.22 		Subd. 4.Commissioner. "Commissioner" means the commissioner of finance.
2.1 		Subd. 5.Costs. "Costs" of a project means the sum of all obligations paid, or 
2.2 	to be paid, or incurred which are reasonably required for the design, construction, and 
2.3 	completion of the project, including, but not limited to: 
2.4 	(1) site acquisition; 
2.5 	(2) soil and environmental testing, surveys, estimates, plans and specifications, 
2.6 	supervision of construction, and other engineering and architectural services; 
2.7 	(3) payment under construction contracts and for payment and performance bonds; 
2.8 	and 
2.9 	(4) purchase and installation of furniture, fixtures, and equipment.
2.10 		Subd. 6.Program. "Program" means the program authorized by section 5.
2.11 		Subd. 7.Project. "Project" means the acquisition, construction, improvement, 
2.12 	expansion, repair, or rehabilitation of all or any part of any structure, facility, or equipment 
2.13 	necessary for a biomedical research science facility.

2.14 	Sec. 3. [116J.888] MINNESOTA BIOMEDICAL SCIENCES RESEARCH 
2.15 	AUTHORITY.
2.16 		Subdivision 1.Membership. The Minnesota Biomedical Sciences Research 
2.17 	Facilities Authority consists of the commissioner of employment and economic 
2.18 	development, one member of the senate appointed by the majority leader of the senate, 
2.19 	one member of the senate appointed by the minority leader of the senate, one member of 
2.20 	the house of representatives appointed by the speaker of the house of representatives, one 
2.21 	member of the house of representatives appointed by the minority leader of the house of 
2.22 	representatives, and four members appointed by the governor who are not members of the 
2.23 	senate or house of representatives or officers or employees of any agency in the executive 
2.24 	branch. The legislative members serve at the pleasure of the appointing authority and 
2.25 	are nonvoting members. The members of the authority, other than the commissioner of 
2.26 	employment and economic development, shall be appointed for staggered terms of four 
2.27 	years. The initial members of the authority appointed by the governor shall be appointed 
2.28 	for a term of one, two, three, and four years, respectively, as specified by the governor.  
2.29 		Subd. 2.Chair; other officers. The commissioner of employment and economic 
2.30 	development shall serve as the chair and chief executive officer of the authority. The 
2.31 	authority may elect other officers as necessary from its members.
2.32 		Subd. 3.Authority actions. A majority of the authority, excluding vacancies, 
2.33 	constitutes a quorum to conduct its business, to exercise its powers, and for all other 
2.34 	purposes.
3.1 		Subd. 4.Meeting by telephone or other means. (a) If compliance with Minnesota 
3.2 	Statutes, section 13D.02, is impractical, the authority may conduct a meeting of its 
3.3 	members by telephone or other electronic means so long as the following conditions 
3.4 	are met:
3.5 	(1) all members of the authority participating in the meeting, wherever their physical 
3.6 	location, can hear one another and can hear all discussion and testimony;
3.7 	(2) members of the public present at the regular meeting location of the authority can 
3.8 	hear clearly all discussion and testimony and all votes of members of the authority and, if 
3.9 	needed, receive those services required by Minnesota Statutes, sections 15.44 and 15.441;
3.10 	(3) at least one member of the authority is physically present at the regular meeting 
3.11 	location; and
3.12 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
3.13 	identified and recorded.
3.14 	(b) Each member of the authority participating in a meeting by telephone or other 
3.15 	electronic means is considered present at the meeting for purposes of determining a 
3.16 	quorum and participating in all proceedings.
3.17 	(c) If telephone or other electronic means is used to conduct a meeting, the authority, 
3.18 	to the extent practical, shall allow a person to monitor the meeting electronically from a 
3.19 	remote location. The authority may require the person making such a connection to pay for 
3.20 	documented marginal costs that the authority incurs as a result of the additional connection.
3.21 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
3.22 	emergency meeting, the authority shall provide notice of the regular meeting location, 
3.23 	of the fact that some members may participate by telephone or other electronic means, 
3.24 	and of the provisions of paragraph (c). The timing and method of providing notice is 
3.25 	governed by Minnesota Statutes, section 13D.04.
3.26 		Subd. 5.Administrative services. The commissioner shall provide administrative 
3.27 	services to the authority and establish an annual budget for the authority. The reasonable 
3.28 	costs of administrative services are payable as provided in section 6.
3.29 		Subd. 6.Executive director. The commissioner may employ, with the concurrence 
3.30 	of the authority, an executive director. The director shall perform duties that the authority 
3.31 	may require in carrying out its responsibilities.
3.32 		Subd. 7.Personal liability. Members and officers of the authority are not liable 
3.33 	personally for any debt or obligation of the authority.
3.34 		Subd. 8.In general. The authority has all the powers necessary and convenient 
3.35 	to carry out its duties under this chapter.

4.1 	Sec. 4. [116J.889] POWERS; DUTIES.
4.2 		Subdivision 1.Bylaws; rules. The authority shall adopt bylaws for its organization 
4.3 	and internal management. The commissioner may adopt rules governing the authority's 
4.4 	operations, properties, and facilities.
4.5 		Subd. 2.Power to sue; enter contracts. The authority may sue and be sued. The 
4.6 	authority may make and enter into contracts, leases, and agreements necessary to perform 
4.7 	its duties and exercise its powers.
4.8 		Subd. 3.Gifts; grants. The authority may apply for, accept, and disburse gifts, 
4.9 	grants, loans, or other property from the United States, the state, private sources, or 
4.10 	any other source for any of its purposes. Money received by the authority under this 
4.11 	subdivision must be deposited in the biomedical sciences research facilities program fund 
4.12 	established in section 5.
4.13 		Subd. 4.Contract for services. The authority may retain or contract for the 
4.14 	services of accountants, financial advisors, and other consultants or agents needed to 
4.15 	perform its duties and exercise its powers.

4.16 	Sec. 5. [116J.8891] BIOMEDICAL SCIENCE RESEARCH FACILITIES 
4.17 	FUNDING PROGRAM.
4.18 		Subdivision 1.Program established. The authority will establish a biomedical 
4.19 	science research facilities funding program to provide grants to the Board of Regents 
4.20 	of the University of Minnesota for 90 percent of the costs of projects approved under 
4.21 	subdivision 4.
4.22 		Subd. 2.Establishment of program fund. The biomedical science research 
4.23 	facilities program fund is established as a special and dedicated fund to be held and 
4.24 	invested separately from all other funds of the state. All proceeds of state bonds authorized 
4.25 	and issued for the purposes of the biomedical science research facilities program fund 
4.26 	and any other money from any source which may be credited to the biomedical science 
4.27 	research facilities program fund pursuant to law or pursuant to the terms of any grants, 
4.28 	contributions, or contracts are appropriated and shall remain available for the purposes of 
4.29 	the biomedical science research facilities program fund until those purposes have been 
4.30 	fully accomplished. The biomedical science research facilities program fund may be used 
4.31 	only for making grants for projects pursuant to the program.
4.32 		Subd. 3.Grant applications. Applications for grants for a project are to be made 
4.33 	by the Board of Regents of the University of Minnesota to the authority. To be eligible for 
4.34 	a grant under the program a project must meet the following criteria:
5.1 	(1) the University of Minnesota, either acting on its own or in collaboration with 
5.2 	another private or public institution, must pay ten percent of the costs of the project and 
5.3 	the University of Minnesota must be responsible for the ongoing facilities maintenance 
5.4 	and operations of the biomedical science research facility resulting from the project;
5.5 	(2) if the application is for a project in which the University of Minnesota proposes 
5.6 	to work in collaboration with another private or public institution, such other institution 
5.7 	must be one that generates at least $75,000,000 annually in competitive federal funding 
5.8 	from the National Institute of Health, National Science Foundation, or similar agency; and
5.9 	(3) the biomedical science research facility resulting from the project will be owned 
5.10 	by the Board of Regents of the University of Minnesota.
5.11 		Subd. 4.Grant approvals. The authority shall determine for each project for which 
5.12 	an application is submitted whether it appears in the authority's judgment to conform to 
5.13 	the purposes and policies stated in section 1 and meets the criteria stated in subdivision 
5.14 	3. Upon determination by the authority that a project conforms to the purposes and 
5.15 	policies stated in section 1 and meets the criteria stated in subdivision 3, it may approve 
5.16 	a grant under the program for the project in an amount equal to 90 percent of the costs 
5.17 	of the project.
5.18 		Subd. 5.Disbursements. Disbursement of grants approved by the authority under 
5.19 	the program must be made for eligible project costs as incurred according to the project 
5.20 	grant agreement and applicable state laws governing the payment.

5.21 	Sec. 6. [116J.8892] AUTHORIZATION OF BONDS AND ESTABLISHMENT 
5.22 	OF BOND FUND.
5.23 		Subdivision 1.Issuance of bonds. To provide money in the biomedical science 
5.24 	research facilities program fund for the purpose of the program for which the biomedical 
5.25 	science research facilities program fund is appropriated and dedicated under the provisions 
5.26 	of sections 1 to 5, the commissioner shall sell and issue bonds of the state in the aggregate 
5.27 	amount of $330,000,000 in the manner, upon the terms, and with the effect prescribed by 
5.28 	Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, 
5.29 	article XI, sections 4 to 7. Before the issuance of any series of bonds the authority shall 
5.30 	determine that the proceeds of the series of bonds to be issued will be needed to make 
5.31 	disbursements of grants approved by the authority under the program.
5.32 		Subd. 2.Establishment of bond fund. The biomedical science research facilities 
5.33 	bond fund is hereby established as a special and dedicated fund to be held and invested 
5.34 	separately from all other funds of the state. The biomedical science research facilities 
5.35 	bond fund may be used only for paying the principal of, premium, if any, and interest on 
6.1 	bonds issued pursuant to subdivision 1. Funds sufficient to pay the principal of, premium, 
6.2 	if any, and interest of bonds issued authorized pursuant to subdivision 1 are appropriated 
6.3 	from the biomedical science research facilities bond fund to the commissioner.
6.4 		Subd. 3.Transfer. There is transferred from the general fund to the biomedical 
6.5 	science research facilities bond fund on October 1 of the years set forth below, the 
6.6 	percentage set forth for each date of the total net nondedicated general fund revenues 
6.7 	for the fiscal year, prior to each October 1:

6.8
6.9	Percentage of Net Nondedicated General 
Fund Revenues
	Date (October 1)
	
6.10	.03 percent
	2007 and 2008
	
6.11	.06 percent
	2009 and 2010
	
6.12	.08 percent
	2011 and 2012
	
6.13	.11 percent
	2013 and 2014
	
6.14	.13 percent
	2015 and thereafter
	
6.15 	All amounts in the biomedical science research facilities bond fund not required to pay the 
6.16 	principal of, premium, if any, and interest on bonds issued pursuant to subdivision 1 in any 
6.17 	fiscal year or required to pay the authority's administrative costs shall be transferred by the 
6.18 	commissioner to the general fund by June 30 of each fiscal year.