SCS HCS HB 688 -- LIFE SCIENCES RESEARCH TRUST FUND

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

(1)  Requires moneys in the fund to be held separate from all
public moneys and funds, 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 2007;

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

(4)  Requires moneys in the fund to be used strategically and in
cooperation with other governmental 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
bill 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, St. Louis, and Springfield areas.  A
statewide center will be established which consists of
institutions, agricultural research centers, and the campuses of
the University of Missouri system and regions of Missouri not
encompassed within another center for excellence;

(8)  Requires the board to approve any formation, 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 bill.  In any fiscal year, no
more than 10% of the moneys can be appropriated for the
construction of physical facilities.  Eighty percent of the
moneys appropriated must be used to build research capacity and
20% for life sciences technology transfers and commercialization.
Of the moneys appropriated to build research capacity, 20% must
be appropriated for research on tobacco-related illnesses;

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

(13)  Requires 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.  The report will be submitted to the
Governor and the General Assembly and made available to the
public;

(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 bill as
revealed by a financial audit;

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

(25)  Requires any bank account, including the trust fund, with
an average daily balance of $10,000 or more to be obtained
through an open and competitive bid process.

The bill contains a non-severability clause.

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