HF 902

as introduced - 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; requiring
reports; appropriating money; 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 facility 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 finance.
new text end

new text begin Subd. 5. new text end

new text begin Cost of a project. new text end

new text begin "Cost 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 under 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 a biomedical science research facility.
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) one current and one former member of the senate appointed by the majority
leader of the senate;
new text end

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

new text begin (4) 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 (5) 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 (6) four members who are not members of the senate or house of representatives or
officers or employees of any agency in the executive branch appointed by the governor
with the advice and consent of the senate.
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.
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 so long as 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 hear clearly 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 telephone or other electronic means is used to conduct a meeting, the authority,
to the extent practical, 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 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 and establish an annual budget for the authority. The reasonable
costs of administrative services are payable as provided in section 116J.8865.
new text end

new text begin Subd. 5. new text end

new text begin Executive director. new text end

new text begin The commissioner may employ, with the concurrence
of the authority, an executive director. The director shall perform duties that the authority
may require in carrying out its responsibilities.
new text end

new text begin Subd. 6. new text end

new text begin Personal liability. new text end

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

new text begin Subd. 7. 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

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 Gifts; grants. new text end

new text begin The authority may apply for, accept, and disburse gifts,
grants, loans, or other property from the United States, the state, private sources, or
any other source for any of its purposes. Money received by the authority under this
subdivision must be deposited in the biomedical science research facilities program fund
established under section 116J.8864.
new text end

new text begin Subd. 4. 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 advisors, and other consultants or agents needed to
perform its duties and exercise its powers.
new text end

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

new text begin Subd. 2. new text end

new text begin Establishment of program fund; appropriation. new text end

new text begin The biomedical
science research facilities program fund is established as a special and dedicated fund
to be held and invested separately from all other funds of the state. All proceeds of
state bonds authorized and issued for the purposes of the biomedical science research
facilities program fund and any other money from any source which may be credited to
the biomedical science research facilities program fund pursuant to law or pursuant to
the terms of any grants, contributions, or contracts are appropriated and shall remain
available for the purposes of the biomedical science research facilities program fund until
those purposes have been fully accomplished. The biomedical science research facilities
program fund may be used only for making grants for projects pursuant to the program.
new text end

new text begin Subd. 3. new text end

new text begin Grant applications. new text end

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

new text begin (3) 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 (4) 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 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 The factors listed 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. 4. 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 stated in section 116J.8860 and meets the criteria stated in
subdivision 3. Upon determination by the authority that a project conforms to the purposes
and policies stated in section 116J.8860 and meets the criteria stated in subdivision 3, it
may approve a grant under the program for the project in an amount equal to 90 percent
of the costs of the project. The authority may approve total grants up to the percentage
of the amount of bond proceeds authorized in section 116J.8892, subdivision 1, for the
fiscal year ending June 30 as set forth opposite such date.
new text end

new text begin Percent of Bond Proceeds new text end	new text begin Fiscal Year new text end
new text begin 16.4 percent new text end	new text begin 2008 new text end
new text begin 34.4 percent new text end	new text begin 2010 new text end
new text begin 54.2 percent new text end	new text begin 2012 new text end
new text begin 76.0 percent new text end	new text begin 2014 new text end
new text begin 100.0 percent new text end	new text begin 2016 new text end

new text begin Subd. 5. 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 AND ESTABLISHMENT
OF BOND FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of bond fund; appropriation. new text end

new text begin The biomedical
science research facilities bond fund is hereby established as a special and dedicated
fund to be held and invested separately from all other funds of the state. The biomedical
science research facilities bond fund may be used only for paying the principal of,
premium, if any, and interest on bonds issued pursuant to section 8. Funds sufficient to
pay the principal of, premium, if any, and interest on bonds issued authorized pursuant to
section 8 are appropriated from the biomedical science research facilities bond fund to
the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Transfer; appropriation. new text end

new text begin (a) The commissioner shall annually transfer
from the general fund to the biomedical science research facilities bond fund on October 1
of each year the amount necessary to pay the debt service required under subdivision 1.
The amounts to be transferred are appropriated to the commissioner from the general fund.
new text end

new text begin (b) All amounts in the biomedical science research facilities bond fund not required
to pay the principal of, premium, if any, and interest on bonds issued pursuant to section 8
in any fiscal year or required to pay the authority's administrative costs shall be transferred
by the commissioner to the general fund by June 30 of such fiscal year.
new text end

Sec. 7.

new text begin [116J.996] BIOSCIENCE AND BIOTECHNOLOGY SUBSIDIES.
new text end

new text begin Subdivision 1. new text end

new text begin Reporting by subsidy recipients. new text end

new text begin Each recipient of a state subsidy
for bioscience or biotechnology must provide to the commissioner of employment and
economic development two written reports by January 15 each year. The first report must
address the projected and actual impact, if any, of the subsidy on reducing the unit cost
to consumers of pharmaceuticals, medical devices, and other bioengineered products,
including, but not limited to, agricultural products. The second report must address the
projected and actual jobs created, including information about wage levels and benefits of
all employees and consultants, as a result of the subsidy.
new text end

new text begin Subd. 2. new text end

new text begin Compilation and summary report. new text end

new text begin By March 1 each year, the
commissioner of employment and economic development must provide to the legislature
a compilation and summary report of the reports received from all recipients of state
subsidies for bioscience and biotechnology in compliance with sections 3.195 and 3.197.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all state subsidies awarded on or after January 1, 2007.
new text end

Sec. 8. new text begin BIOMEDICAL SCIENCE RESEARCH FACILITIES PROGRAM;
BOND SALE.
new text end

new text begin To provide money in the biomedical science research facilities program fund for
the purpose of the program for which the biomedical science research facilities program
fund is appropriated and dedicated under the provisions of Minnesota Statutes, sections
116J.8860 to 116J.8864, the commissioner shall sell and issue bonds of the state in the
aggregate amount of $310,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, 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.
The provisions of Minnesota Statutes, section 16A.642, do not apply to this section.
new text end