HCS HB 688 -- LIFE SCIENCES RESEARCH TRUST FUND

SPONSOR:  Holand (Hanaway)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Health
Care Policy by a vote of 12 to 0.

This substitute establishes the Life Sciences Research Trust Fund
in the state treasury.  In its main provisions, the substitute:

(1)  Requires moneys in the fund to be held separate from all
public moneys, including the Tobacco Securitization Trust Fund
moneys;

(2)  Requires the State Treasurer to deposit 25% of moneys
received from the Tobacco Master Settlement Agreement into the
fund each fiscal year, beginning in Fiscal Year 2006;

(3)  Requires that moneys in the fund will not be subject to
appropriations for purposes inconsistent with the substitute
without a two-thirds vote in each house of the General Assembly;

(4)  Requires moneys in the fund to be used strategically and in
cooperation with other governmental entities and nonprofit
entities.  The moneys will be used for the purposes of enhancing
the capacity of the State of Missouri to perform life sciences
research, build upon existing research institutions, and
commercialize life sciences technologies;

(5)  Establishes a seven-member Life Sciences Research Board
within the Office of Administration as a Type-III division.  The
substitute contains the terms and qualifications of board
members;

(6)  Requires the board to manage and control moneys allocated
from the fund;

(7)  Establishes centers for excellence for life sciences
research in the Kansas City area, the St. Louis area, and the
Springfield area.  A statewide center will be established which
consists of the campuses of the University of Missouri system;

(8)  Requires the board to approve any composition and
organizational structure of a center for excellence before its
operation;

(9)  Specifies the organizational composition of a center for
excellence.  Each center is required to establish a screening
committee which will review and prioritize funding proposals
before submitting the proposals to the board;

(10)  Requires moneys appropriated by the General Assembly from
the fund to be appropriated to the board for stated purposes;

(11)  Requires that any funds received by the board will be
subject to the provisions of the substitute.  In any fiscal year,
up to 10% of the moneys can be appropriated for the construction
of physical facilities and at least 20% of the moneys will be
appropriated for life science technology transfers and
commercialization;

(12)  Requires the board to consider proposals endorsed by a
center for excellence.  The substitute contains requirements for
dispersing funds to institutions and organizations approved to
conduct life sciences research;

(13)  Requires that moneys which are not distributed by the board
to be held in reserve or be awarded based on a peer-review panel
recommendation;

(14)  Requires the board to secure the State Auditor or an
external certified public accounting firm to conduct an annual
audit of the administration of the fund.  The board is required
to make copies of the audit available to the public;

(15)  Requires the board, with assistance from its staff or
independent contractors, to prepare a comprehensive report
assessing the work and progress of the life sciences research
program every three years;

(16)  Requires grant and contract awards utilizing moneys from
the fund to be used for the reimbursement of costs.
Reimbursement of costs will be determined by a four-part
balancing process;

(17)  Requires grants and contract recipients to preserve
research freedoms and to ensure the timely disclosure of research
findings.  Recipients of research funds will retain intellectual
property rights;

(18)  Contains a conflict-of-interest provision;

(19)  Prohibits public moneys appropriated to the board from
being used to finance existing or proposed research projects that
involve abortion services, human cloning, or prohibited human
research.  A research project that receives an award of public
funds cannot share costs with another research project, person,
or entity that is ineligible to receive public funds;

(20)  Requires all applicants for and recipients of public funds
to comply with cost accounting principles contained in Part 9905,
Title 48, of the Code of Federal Regulations or successor
regulations;

(21)  Requires all moneys for research purposes to be expended by
checks, drafts, or electronic transfers and to use a separate
accounting process;

(22)  Prohibits moneys from any award from being diverted through
other research projects unless it is included in the original
application for an award or stated in subsequent amendments or a
request is made to use separate contractors;

(23)  Requires award recipients to maintain separate financial
records that demonstrate strict compliance with the substitute as
revealed by a financial audit; and

(24)  Provides taxpayers of Missouri standing to bring suit
against the state or a recipient of public funds if violations of
the substitute occur.

The substitute contains a non-severability clause.

FISCAL NOTE:  Estimated Net Loss to General Revenue of $0 in FY
2004, $0 in FY 2005, and $36,500,000 in FY 2006.  Estimated Net
Effect on Life Sciences Research Trust Fund of $0 in FY 2004, $0
in FY 2005, and $0 or Unknown in FY 2006.

PROPONENTS:  Supporters say that it is vitally important to
finance life sciences research in Missouri.  Advancing life
sciences research will result in various benefits in the areas of
job creation, public health, agriculture, and technology
transfers.  Establishing a funding source for life sciences
research in Missouri will lead to effective partnerships with the
public and private sectors in order to conduct and apply life
sciences research in Missouri.

Testifying for the bill were Speaker Hanaway; William Romjue,
President, Missouri Biotechnology Association; Citizens for a
Healthy Missouri; Campaign Life of Missouri; and Missouri
Catholic Conference.

OPPONENTS:  There was no opposition voiced to the committee.

Joseph Deering, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am