SCS/HCS/HB 688 - This act creates the Life Sciences Trust Fund in the state treasury. Beginning July 1, 2007, the Treasurer will deposit 25% of moneys received from the master settlement agreement in the fund. The moneys in the fund may not be used for other purposes without a majority vote of each house of the General Assembly.

Moneys in the fund shall be used to enhance the capacity of the state to be a center of life sciences research by building on the success of institutions in Missouri. The fund will be managed by the Life Sciences Research Board which is created in the Office of Administration and will have seven members. Members will be appointed by the Governor with the advice and consent of the Senate. Members will serve staggered terms of four years. Members shall be generally familiar with the life sciences and current research trends and developments. Member shall not be compensated and will serve no more than two terms.

Centers for life sciences research shall be established based on certain criteria specified in the act.

Moneys in the fund will be appropriated to the Board for administration. No more than 10% of the moneys appropriated shall be used for construction of physical facilities. At least 80% of the moneys appropriated shall be used for building research capacity and 20% used to promote life science technology transfer and technology commercialization.

Criteria are set forth for the Board to consider in determining projects to authorize. Moneys not distributed in any fiscal year will be held in reserve or shall be awarded on the basis of peer review panel recommendations for capacity building initiatives.

Powers of the life sciences research Board are specified. The Board is directed to spend as much as possible on building capacity for research rather than administrative purposes.

The Board shall secure the services of the state auditor or an outside public accounting firm for an annual audit of its financial affairs and the moneys expended from the fund. The audit shall be available to the public. Every three years the Board will prepare a comprehensive report assessing the work of the life sciences research program.

Costs which are to be reimbursed in a grant or contract award must meet a four-part balancing test which is specified. Grant and contract recipients shall preserve research freedom, ensure timely disclosure of research, and promote utilization of the products of the research. Institutions or organizations receiving grant or contract awards will retain intellectual property rights.

Members of the Life Sciences Research Board shall not be employed by any entity entitled to receive financial support from the fund. Conflict of interest provisions regarding participation in certain decisions are specified.

Moneys appropriated shall not be used for any project that involves abortion services, human cloning or prohibited human research. Provisions for cost sharing are provided.

Any bank account containing state funds, including the Life Sciences Research Trust Fund created pursuant to Section 196.1100, with an average daily balance of more than $10,000, shall be obtained through an open and competitive bid process.
CINDY KADLEC