SF 3094

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to capital investment; establishing a biomedical science research
facilities funding program for the University of Minnesota; appropriating money;
proposing coding for new law in Minnesota Statutes, chapter 137.

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

Section 1.

new text begin [137.61] PURPOSE.
new text end

new text begin Sections 137.61 to 137.64 provide for a biomedical science research funding
program to further the investment in biomedical science research facilities in Minnesota to
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 this state.
new text end

Sec. 2.

new text begin [137.62] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this section apply to sections
137.51 to 137.60.
new text end

new text begin Subd. 2. new text end

new text begin Biomedical science research facility. new text end

new text begin "Biomedical science research
facility" means a facility located on the campus of the University of Minnesota to be used
as a research facility and laboratory for biomedical science and biomedical technology. A
hospital licensed under sections 144.50 to 144.56 is not a biomedical science research
facility.
new text end

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

new text begin Project costs. new text end

new text begin "Project costs" means the sum of all obligations incurred,
paid, or to be paid that 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) payments under construction contracts and payments for 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. 5. 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 part of a structure, facility, infrastructure, or
equipment necessary for a biomedical science research facility approved by the Board of
Regents.
new text end

Sec. 3.

new text begin [137.63] 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 A biomedical science research facilities
funding program is established to provide appropriations to the Board of Regents of the
University of Minnesota for up to 80 percent of the project costs for each of four projects
approved by the Board of Regents under section 137.64.
new text end

new text begin Subd. 2. new text end

new text begin Project requirements. new text end

new text begin The Board of Regents of the University of
Minnesota, either acting on its own or in collaboration with another private or public
entity, must pay at least 20 percent of the project costs for each of four projects.
new text end

Sec. 4.

new text begin [137.64] CONDITIONS FOR PAYMENTS TO UNIVERSITY.
new text end

new text begin Subdivision 1. new text end

new text begin Certifications. new text end

new text begin Before the commissioner may make any payments
authorized in this section to the Board of Regents for a biomedical science research
facility project, the commissioner must certify that the board has, by board resolution,
approved the maximum project cost for the project and complied with the requirements of
section 137.63, subdivision 2. For each project approved by the board, the board must
certify to the commissioner the amount of the annual payments of principal and interest
required to service each series of bonds issued by the University of Minnesota for the
project, and the actual amount of the state's annual payment to the University of Minnesota
under subdivision 2. The annual payment must not exceed the state's share of the amount
required to service the bonds issued for the project costs.
new text end

new text begin Subd. 2. new text end

new text begin Payments. new text end

new text begin On July 1 of each year after the certification under subdivision
1, but no earlier than July 1, 2009, and for so long thereafter as any bonds issued by the
board for the construction of a project are outstanding, the state must transfer to the board
annual payments as certified under subdivision 1, up to the maximum amounts in the
appropriation schedule under subdivision 3. Payments under this section are to reimburse
the Board of Regents for the state's share of the project costs for the biomedical science
research facility projects provided that the bonds issued to pay the state's share of such
costs shall not exceed $233,600,000.
new text end

new text begin Subd. 3. new text end

new text begin Appropriations. new text end

new text begin Annual appropriations are made from the general fund to
the commissioner of finance for transfer to the Board of Regents, as follows:
new text end

new text begin (1) up to $1,000,000 is appropriated in fiscal year 2010;
new text end

new text begin (2) up to $4,000,000 is appropriated in fiscal year 2011;
new text end

new text begin (3) up to $9,000,000 is appropriated in fiscal year 2012;
new text end

new text begin (4) up to $14,000,000 is appropriated in fiscal year 2013;
new text end

new text begin (5) up to $16,000,000 is appropriated in fiscal year 2014; and
new text end

new text begin (6) up to $16,575,000 is appropriated in fiscal year 2015 and each year thereafter, up
to 25 years following the certification of the last project by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Reinvestment. new text end

new text begin The Board of Regents must, to the extent permitted under
federal law and University of Minnesota policies, place a priority on reducing the state's
share of project costs by dedicating a share of the proceeds from any commercialization or
licensing revenues attributable to research conducted in the biomedical science facilities
to reduce the state's payment of debt service.
new text end