SF 3044

1st Engrossment - 84th Legislature (2005 - 2006) 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.886] PURPOSE.
new text end

new text begin Sections 1 to 6 provide a framework for a biomedical science research funding
program for the purposes of which are to further the investment in biomedical sciences
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.887] 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.886 to 116J.8892, the terms in this section have the meaning 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 Sciences
Research Facilities Authority.
new text end

new text begin Subd. 3. new text end

new text begin Biomedical research science facility. new text end

new text begin "Biomedical research science
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 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 5.
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, or equipment
necessary for a biomedical research science facility.
new text end

Sec. 3.

new text begin [116J.888] MINNESOTA BIOMEDICAL SCIENCES RESEARCH
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Minnesota Biomedical Sciences Research
Facilities Authority consists of the commissioner of employment and economic
development, one member of the senate appointed by the majority leader of the senate,
one member of the senate appointed by the minority leader of the senate, one member of
the house of representatives appointed by the speaker of the house of representatives, one
member of the house of representatives appointed by the minority leader of the house of
representatives, and four members appointed by the governor who are not members of the
senate or house of representatives or officers or employees of any agency in the executive
branch. The 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 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.
new text end

new text begin Subd. 2. new text end

new text begin Chair; other officers. new text end

new text begin The commissioner of employment and economic
development shall serve as the chair and chief executive officer of the authority. The
authority may elect other officers as necessary from its members.
new text end

new text begin Subd. 3. 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. 4. new text end

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

new text begin (a) If compliance with Minnesota
Statutes, 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 Minnesota Statutes, 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 Minnesota Statutes, 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 authority and establish an annual budget for the authority. The reasonable
costs of administrative services are payable as provided in section 6.
new text end

new text begin Subd. 6. 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. 7. 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. 8. 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.889] 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 sciences research facilities program fund
established in section 5.
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

Sec. 5.

new text begin [116J.8891] 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. 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; and
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.
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 1 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 1 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.
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.8892] AUTHORIZATION OF BONDS AND ESTABLISHMENT
OF BOND FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance of bonds. 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 sections 1 to 5, the commissioner shall sell and issue bonds of the state in the aggregate
amount of $330,000,000 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.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of bond fund. 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 subdivision 1. Funds sufficient to pay the principal of, premium,
if any, and interest of bonds issued authorized pursuant to subdivision 1 are appropriated
from the biomedical science research facilities bond fund to the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Transfer. new text end

new text begin There is transferred from the general fund to the biomedical
science research facilities bond fund on October 1 of the years set forth below, the
percentage set forth for each date of the total net nondedicated general fund revenues
for the fiscal year, prior to each October 1:
new text end

new text begin Percentage of Net Nondedicated General Fund Revenues new text end	new text begin Date (October 1) new text end
new text begin .03 percent new text end	new text begin 2007 and 2008 new text end
new text begin .06 percent new text end	new text begin 2009 and 2010 new text end
new text begin .08 percent new text end	new text begin 2011 and 2012 new text end
new text begin .11 percent new text end	new text begin 2013 and 2014 new text end
new text begin .13 percent new text end	new text begin 2015 and thereafter new text end

new text begin 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 subdivision 1 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 each fiscal year.
new text end