HLS 13RS-809 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 549
BY REPRESENTATIVES LEGER, ABRAMSON, BROSSETT, BURRELL, FOIL, AND
SIMON AND SENATORS BROOME, HEI TMEIER, AND MORRELL
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
RESEARCH & DEVELOPMENT: Establishes the MediFund for statewide advancement
of biosciences and medical centers of excellence
AN ACT1
To amend and reenact R.S. 36:802(introductory paragraph), to enact R.S. 36:259(NN) and2
Chapter 37-A of Title 51 of the Louisiana Revised Statutes of 1950, to be comprised3
of R.S. 51:2211 through 2216, and to repeal Chapter 37 of Title 51 of the Louisiana4
Revised Statutes of 1950, comprised of R.S. 51:2201 through 2205, relative to a fund5
for support of scientific research and development; to establish the MediFund as a6
special fund for advancement of biosciences and medical centers of excellence; to7
provide for purposes of the fund; to create and provide for the composition of a8
governing board for the fund; to provide for duties and authority of the governing9
board; to provide guidelines for programs and projects to be funded by the10
MediFund; to establish a termination date for the MediFund; to repeal provisions11
relative to the Dedicated Research Investment Fund; and to provide for related12
matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 36:802(introductory paragraph) is hereby amended and reenacted and15
R.S. 36:259(NN) is hereby enacted to read as follows:16
§259. Transfer of agencies and functions to Department of Health and Hospitals17
* * *18 HLS 13RS-809 ORIGINAL
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NN. The MediFund Board (R.S. 51:2214) is hereby placed within the1
Department of Health and Hospitals and shall perform and exercise its powers,2
duties, functions, and responsibilities as provided for agencies transferred as3
provided in R.S. 36:802.4
* * *5
§802. Transfer; retention of policymaking and rulemaking functions6
The agencies transferred by the provisions of R.S. 36:209(Q), 259(MM) and7
(NN), 309(B), 409(C), 459(B), 610(B), 629(I), and 769(C) shall continue to be8
composed and selected as provided by law, and each shall continue to exercise all9
of the powers, duties, functions, and responsibilities provided or authorized for each10
by the constitution or laws which are in the nature of policyma king, rulemaking,11
licensing, regulation, enforcement, or adjudication and also shall continue to exercise12
all advisory powers, duties, functions, and responsibilities provided by law. Such13
powers, duties, functions, and responsibilities shall be exercised independently of the14
secretary and any assistant secretary, except that:15
* * *16
Section 2. Chapter 37-A of Title 51 of the Louisiana Revised Statutes of 1950,17
comprised of R.S. 51:2211 through 2216, is hereby enacted to read as follows: 18
CHAPTER 37-A. LOUISIANA MEDIFUND19
§2211. Purpose and goals20
A. The provisions of this Chapter establish the MediFund as a special fund21
within the state treasury to support advancement of biosciences and medical centers22
of excellence in Louisiana. The governing board of the MediFund shall endeavor to23
achieve this purpose by coordinating and deploying public and private resources to24
strategically develop and enhance this state's competitiveness in biosciences and25
medical centers of excellence.26
B. The goals of the MediFund shall include all of the following:27
(1) Create regional and national medical centers of excellence for28
biosciences in order to promote destination health care.29 HLS 13RS-809 ORIGINAL
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(2) Contribute to improvement of health outcomes for consumers of health1
care services in Louisiana.2
(3) Support strategic research and clinical partnerships.3
(4) Facilitate a competitive process for funding program proposals and4
projects based on objectively determined potential for positive economic5
development impact in terms of job creation and generation of tax revenue.6
§2212. Definitions7
As used in this Chapter, the following terms shall have the meanings ascribed8
to them below:9
(1) "Biosciences" means any of the branches of natural science dealing with10
the structure and behavior of living organisms, including but not limited to research,11
development, manufacture, testing, marketing or distribution of pharmaceuticals,12
biotechnology products, and medical devices that will eventually be used by health13
care providers to treat, cure, prevent, or mitigate disease or health conditions.14
(2) "Board" means the MediFund governing board.15
(3) "Department" means the Department of Health and Hospitals.16
(4) "Fund" means the MediFund created by the provisions of this Chapter.17
§2213. MediFund; creation18
A. The MediFund, hereafter referred to as the "fund", is hereby created as19
a special fund in the state treasury. The source of monies for the fund may include20
but shall not be limited to any appropriation by the legislature, including federal21
funds; any public or private donations, gifts, or grants from individuals, corporations,22
nonprofit organizations, or other business entities; and any other monies which may23
be provided by law.24
B. All money received by the fund, except as otherwise provided by Article25
VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and26
Redemption Fund, shall be deposited immediately upon receipt into the state27
treasury.28 HLS 13RS-809 ORIGINAL
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C. The monies in the fund shall be invested by the state treasurer in the same1
manner as monies in the state general fund. Interest earned on the investment of2
monies in the fund shall be credited to the fund following compliance with the3
requirements of Article VII, Section 9(B) of the Constitution of Louisiana. All4
unexpended and unencumbered monies in the fund at the end of each fiscal year shall5
remain in the fund.6
D. The monies in the fund shall be used solely for the purposes provided in7
this Chapter.8
§2214. Governing board; authority; duties9
A. There is hereby established within the department the MediFund Board,10
hereafter referred to as the "board", which shall be composed as provided in11
Subsection B of this Section. The secretary of the department shall take such actions12
as are necessary to have the roster of initial board members compiled on or before13
September 1, 2013, and to convene the first meeting of the board on or before14
November 1, 2013.15
B. The board shall be composed of eleven members, none of whom may be16
employed by an entity which is eligible to receive MediFund grants, as follows:17
(1) Four members appointed by the governor who each possess significant18
experience in biomedical research or clinical administration.19
(2) One member appointed by the secretary of the Department of Health and20
Hospitals.21
(3) One member appointed by the secretary of the Louisiana Economic22
Development.23
(4) One member appointed by the speaker of the House of Representatives.24
(5) One member appointed by the president of the Senate.25
(6) Three members appointed in the number of one member apiece by each26
of the following organizations which collectively represent the top three regions of27
the state for National Institutes of Health funding amounts:28
(a) Baton Rouge Area Chamber.29 HLS 13RS-809 ORIGINAL
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(b) Greater New Orleans, Inc.1
(c) North Louisiana Economic Partnership.2
C. Board members shall serve without compensation and shall receive no per3
diem but may be reimbursed for their actual expenses incurred while in attendance4
at board meetings or in the conduct of board business.5
D. A simple majority of the members of a board shall constitute a quorum6
for the transaction of business. At its first meeting and annually thereafter with at7
least two-thirds of the members present, the board shall elect one of its members as8
chairman, one member as vice chairman, and one member as secretary.9
E. The board shall adopt bylaws to provide for the governance of the board.10
The bylaws shall include but not be limited to procedures and grounds for the11
removal of any board member. Grounds for removal shall include conviction of a12
felony and may include failure to meet board attendance rules as provided in the13
bylaws.14
F. Procedures for filling a vacancy created by the removal, resignation, or15
death of any board member prior to the end of the board member's term shall follow16
those used for initial appointments.17
G. The board shall have the authority to take all of the following actions:18
(1) Form special committees, advisory councils, or similar bodies to study19
and make policy recommendations to the board concerning priority research areas,20
research commercialization strategies, or other matters as may be requested by the21
board.22
(2) Enter into contracts as necessary for development of proposal evaluation23
criteria, coordination of a proposal evaluation process, or other functions related to24
evaluation of funding proposals and applications for funding submitted to the board.25
(3) Promulgate all such rules, in accordance with the Administrative26
Procedure Act, as are necessary to carry out the programs and functions of the27
MediFund.28 HLS 13RS-809 ORIGINAL
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H. On or before January 1, 2014, and annually thereafter, the board shall1
submit to the House and Senate committees on health and welfare a report which2
addresses funding activities undertaken by the MediFund in the most recent one-year3
period and any other information which the board deems appropriate to convey a4
clear understanding of the operations and impact of the MediFund.5
§2215. MediFund program guidelines6
A. The board shall promulgate rules and regulations governing the use of7
monies of the MediFund and shall adopt policies for governance of any program or8
funding action that it implements prior to initiation of the program or funding action.9
The rules and regulations of the MediFund shall establish a maximum amount or10
percentage of total funds that may be awarded to any individual project recipient or11
that may be utilized by the board for administrative expenses. The rules and12
regulations provided for in this Section shall be adopted in accordance with the13
Administrative Procedure Act.14
B. The board shall delineate the programs which it implements and the15
functions that each program fulfills. For this purpose, the board shall implement a16
tiered system of funding to consist of awards known as "planning grants" and17
"program grants", with corresponding monetary ranges for each grant type.18
C. Grants and other funding of the MediFund shall be committed only to19
public or not-for-profit entities.20
D. The board shall apply the following guidelines for proposal selection,21
project monitoring, and matching funds:22
(1) Proposal solicitation, review, selection, and monitoring processes shall23
be implemented in such a manner as to ensure efficient operations and the attainment24
of the following objectives:25
(a) A proposal solicitation process which involves publicizing of board26
programs among academic, clinical, and research institutions and within relevant27
industries.28 HLS 13RS-809 ORIGINAL
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(b) A proposal review process which assures complete, competent, and1
objective review of all proposals.2
(c) A grantee selection process which assures that funding will be awarded3
on a competitive basis.4
(d) A project monitoring process which assures that each project is carried5
out according to plan and budget.6
(e) A project data and outcomes tracking requirement, including grant7
monies spent, research activities, job creation, and local, regional economic impact.8
(2) For all grants other than those classified by the board as "planning9
grants", the board shall establish through its rules and regulations certain10
requirements for matching resources to be contributed by MediFund grantees to11
support the respective program or project funded by the MediFund. Such matching12
resources may include cash, in-kind donations, other grant monies received to13
support the respective program or project funded by the MediFund, and any other14
resources as the board deems appropriate. In each case when matching resources are15
required, such resources shall amount to no less than fifteen percent of total cost of16
the funded program or project.17
§2216. Termination18
The provisions of this Chapter shall terminate on December 31, 2018.19
Section 3. Chapter 37 of Title 51 of the Louisiana Revised Statutes of 1950,20
comprised of R.S. 51:2201 through 2205, is hereby repealed in its entirety.21
Section 4. This Act shall become effective upon signature by the governor or, if not22
signed by the governor, upon expiration of the time for bills to become law without signature23
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If24
vetoed by the governor and subsequently approved by the legislature, this Act shall become25
effective on the day following such approval.26 HLS 13RS-809 ORIGINAL
HB NO. 549
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are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Leger HB No. 549
Abstract: Establishes the MediFund for statewide advancement of biosciences and medical
centers of excellence.
Proposed law establishes the MediFund as a special fund within the state treasury to support
advancement of biosciences and medical centers of excellence in Louisiana.
Proposed law provides that the goals of the MediFund shall include:
(1)Create regional and national medical centers of excellence for biosciences in order
to promote destination health care.
(2)Contribute to improvement of health outcomes for consumers of health care services
in Louisiana.
(3)Support strategic research and clinical partnerships.
(4)Facilitate a competitive process for funding program proposals and projects based
on objectively determined potential for positive economic development impact in
terms of job creation and generation of tax revenue.
Proposed law creates the MediFund Board within DHH and provides the board with
independent rulemaking authority. Requires the secretary of DHH to have the roster of
initial board members compiled on or before Sept. 1, 2013, and to convene the first meeting
of the board on or before Nov. 1, 2013.
Proposed law provides that the board shall be composed of 11 members, none of whom may
be employed by an entity which is eligible to receive MediFund grants, as follows:
(1)Four members appointed by the governor who each possess significant experience
in biomedical research or clinical administration.
(2)One member appointed by the secretary of DHH.
(3)One member appointed by the secretary of LED.
(4)One member appointed by the speaker of the House of Representatives.
(5)One member appointed by the president of the Senate.
(6)Three members appointed in the number of one member apiece by each of the
following organizations which collectively represent the top three regions of the state
for National Institutes of Health funding amounts:
(a)Baton Rouge Area Chamber.
(b)Greater New Orleans, Inc.
(c)North Louisiana Economic Partnership. HLS 13RS-809 ORIGINAL
HB NO. 549
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law provides that board members shall serve without compensation and shall
receive no per diem, but may be reimbursed for their actual expenses incurred while in
attendance at board meetings or in the conduct of board business.
Proposed law requires the board to adopt bylaws to provide for the governance of the board.
Provides that the bylaws shall include procedures and grounds for the removal of any board
member. Further provides that grounds for removal shall include conviction of a felony and
may include failure to meet board attendance rules as provided in the bylaws.
Proposed law authorizes the board to take all of the following actions:
(1)Form special committees, advisory councils, or similar bodies to study and make
policy recommendations to the board concerning priority research areas, research
commercialization strategies, or other matters as may be requested by the board.
(2)Enter into contracts as necessary for development of proposal evaluation criteria,
coordination of a proposal evaluation process, or other functions related to evaluation
of funding proposals and applications for funding submitted to the board.
(3)Promulgate all such rules, in accordance with the Administrative Procedure Act, as
are necessary to carry out the programs and functions of the MediFund.
Proposed law provides that on or before Jan. 1, 2014, and annually thereafter, the board shall
submit to the legislative committees on health and welfare a report which addresses funding
activities undertaken by the MediFund in the most recent one-year period, and any other
information which the board deems appropriate to convey a clear understanding of the
operations and impact of the MediFund.
Proposed law requires the board to promulgate rules and regulations governing the use of
monies of the MediFund and adopt policies for governance of any program or funding action
that it implements prior to initiation of the program or funding action. Requires the rules and
regulations of the MediFund to establish a maximum amount or percentage of total funds
that may be awarded to any individual project recipient or that may be utilized by the board
for administrative expenses.
Proposed law requires the board to delineate the programs which it implements and the
functions that each program fulfills. For this purpose, proposed law provides that the board
shall implement a tiered system of funding to consist of awards known as "planning grants"
and "program grants", with corresponding monetary ranges for each grant type.
Proposed law stipulates that grants and other funding of the MediFund be committed only
to public or not-for-profit entities.
Proposed law requires the board to apply the following guidelines for proposal selection,
project monitoring, and matching funds:
(1)Proposal solicitation, review, selection, and monitoring processes shall be
implemented in such a manner as to ensure efficient operations and the attainment
of the following objectives:
(a)A proposal solicitation process which involves publicizing of board programs
among academic, clinical, and research institutions and within relevant
industries.
(b)A proposal review process which assures complete, competent, and objective
review of all proposals. HLS 13RS-809 ORIGINAL
HB NO. 549
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are additions.
(c)A grantee selection process which assures that funding will be awarded on
a competitive basis.
(d)A project monitoring process which assures that each project is carried out
according to plan and budget.
(e)A project data and outcomes tracking requirement, including grant monies
spent, research activities, job creation, and local, regional economic impact.
(2)For all grants other than those classified by the board as "planning grants", the board
shall establish through its rules and regulations certain requirements for matching
resources to be contributed by MediFund grantees to support the respective program
or project funded by the MediFund. Such matching resources may include cash,
in-kind donations, other grant monies received to support the respective program or
project funded by the MediFund, and any other resources as the board deems
appropriate. In each case when matching resources are required, such resources shall
amount to no less than fifteen percent of total cost of the funded program or project.
Proposed law provides that proposed law shall terminate on Dec. 31, 2018.
Proposed law repeals present law which creates the Dedicated Research Investment Fund
for support of biomedical and biotechnological research and development.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 36:802(intro. para.); Adds R.S. 36:259(NN) and R.S. 51:2211-2216; Repeals
R.S. 51:2201-2205)