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Regular Session, 2013
HOUSE BILL NO. 549
BY REPRESENTATIVES LEGER, ABRAMSON, BARROW, BILLIOT, WESLEY
BISHOP, BROSSETT, TIM BURNS, BURRELL, CARTER, CHAMPAGNE,
CHANEY, FOIL, GUILLORY, HUNTER, JAMES, LEBAS, LEOPOLD,
MORENO, JIM MORRIS, SIMON, ST. GERMAIN, STOKES, THIERRY, AND
PATRICK WILLIAMS AND SENATORS BROOME, HEITMEIER, 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 enact R.S. 36:651(CC), 802.23, and Chapter 37-A of Title 51 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S. 51:2211 through 2216, and to repeal3
Chapter 37 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S.4
51:2201 through 2205, relative to a fund for support of scientific research and5
development; to establish the MediFund as a special fund for advancement of6
biosciences and medical centers of excellence; to provide for purposes of the fund;7
to create and provide for the composition of a governing board for the fund; to8
provide for duties and authority of the governing board; to provide guidelines for9
programs and projects to be funded by the MediFund; to establish a termination date10
for the MediFund; to repeal provisions relative to the Dedicated Research Investment11
Fund; and to provide for related matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 36:651(CC) and 802.23 are hereby enacted to read as follows:14 HLS 13RS-809 REENGROSSED
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§651. Transfer of boards, commissions, departments, and agencies to Department1
of Education; boards, commissions, and agencies within Department of2
Education3
* * *4
CC. The MediFund Board (R.S. 51:2214) is hereby placed within the Board5
of Regents and shall exercise and perform its powers, duties, functions, and6
responsibilities in the manner provided in R.S. 36:802.23.7
* * *8
§802.23. Transfer; MediFund Board9
The MediFund Board, transferred by the provisions of R.S. 36:651(CC), is10
transferred to and placed within the Board of Regents and shall continue to be11
composed and selected as provided by law, and shall continue to exercise all of the12
powers, duties, functions, and responsibilities provided or authorized by the13
constitution or laws which are in the nature of policymaking, rulemaking, regulation,14
enforcement, or adjudication and also shall continue to exercise all advisory powers,15
duties, functions, and responsibilities provided by law.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 REENGROSSED
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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 to11
translational and regenerative research, development, manufacture, testing,12
marketing or distribution of pharmaceuticals, biotechnology products, biotechnology13
and health-related software, and medical devices that will eventually be used by14
health care providers to treat, cure, prevent, or mitigate disease or health conditions.15
(2) "Board" means the MediFund governing board.16
(3) "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; venture capital; and any other23
monies which may 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 REENGROSSED
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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 Board of Regents the MediFund10
Board, hereafter referred to as the "board", which shall be composed as provided in11
Subsection B of this Section. The commissioner of higher education shall take such12
actions as are necessary to have the roster of initial board members compiled on or13
before 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 thirteen members, none of whom may be16
employed by an entity which is eligible to receive MediFund grants, as follows:17
(1) One member appointed by the commissioner of higher education.18
(2) Four members appointed by the governor who each possess significant19
experience in bioscience, translational, or regenerative research; or biomedical20
administration.21
(3) One member appointed by the secretary of the Department of Health and22
Hospitals.23
(4) One member appointed by the secretary of the Louisiana Economic24
Development.25
(5) One member appointed by the speaker of the House of Representatives.26
(6) One member appointed by the president of the Senate.27 HLS 13RS-809 REENGROSSED
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(7) Three members appointed in the number of one member apiece by each1
of the following organizations which collectively represent the top three regions of2
the state for National Institutes of Health funding amounts:3
(a) Baton Rouge Area Chamber.4
(b) Greater New Orleans, Inc.5
(c) North Louisiana Economic Partnership.6
(8) One member appointed by the Experimental Program to Stimulate7
Competitive Research (EPSCoR) Committee of the Board of Regents.8
C. Board members shall serve without compensation and shall receive no per9
diem.10
D. A simple majority of the members of a board shall constitute a quorum11
for the transaction of business. At its first meeting and annually thereafter with at12
least two-thirds of the members present, the board shall elect one of its members as13
chairman, one member as vice chairman, and one member as secretary.14
E. The board shall adopt bylaws to provide for the governance of the board.15
The bylaws shall include but not be limited to procedures and grounds for the16
removal of any board member. Grounds for removal shall include conviction of a17
felony and may include failure to meet board attendance rules as provided in the18
bylaws.19
F. Procedures for filling a vacancy created by the removal, resignation, or20
death of any board member prior to the end of the board member's term shall follow21
those used for initial appointments.22
G. The board shall have the authority to take all of the following actions:23
(1) Form a Research Advisory Council composed of representatives of the24
BioDistrict New Orleans, Pennington Biomedical Research Center, Ochsner Health25
System, Tulane University, and the BioMedical Research Foundation of Northwest26
Louisiana to determine priority research concentrations and commercialization27
strategies, or other matters as may be requested by the board.28 HLS 13RS-809 REENGROSSED
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(2) Form special committees, advisory councils, or similar bodies to study1
and make policy recommendations to the board concerning priority research areas,2
research commercialization strategies, or other matters as may be requested by the3
board.4
(3) Enter into contracts as necessary for development of proposal evaluation5
criteria, coordination of a proposal evaluation process, or other functions related to6
evaluation of funding proposals and applications for funding submitted to the board.7
(4) Promulgate all such rules, in accordance with the Administrative8
Procedure Act, as are necessary to carry out the programs and functions of the9
MediFund.10
H. On or before January 1, 2015, and annually thereafter, the board shall11
submit to the House and Senate committees on health and welfare, the House and12
Senate committees on commerce, and the Louisiana Innovation Council a report13
which addresses funding activities undertaken by the MediFund in the most recent14
one-year period and any other information which the board deems appropriate to15
convey a clear understanding of the operations and impact of the MediFund on16
commercialization of bioscience research, improvement of health outcomes, number17
of new jobs created, and total economic benefit.18
§2215. MediFund program guidelines19
A. The board shall promulgate rules and regulations governing the use of20
monies of the MediFund and shall adopt policies for governance of any program or21
funding action that it implements prior to initiation of the program or funding action.22
The rules and regulations of the MediFund shall establish a maximum amount or23
percentage of total funds that may be awarded to any individual project recipient or24
that may be utilized by the board for administrative expenses. The rules and25
regulations provided for in this Section shall be adopted in accordance with the26
Administrative Procedure Act.27
B. The board shall delineate the programs which it implements and the28
functions that each program fulfills. For this purpose, the board shall implement a29 HLS 13RS-809 REENGROSSED
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tiered system of funding to consist of awards known as "planning grants", "program1
grants", and "proof of concept grants", with corresponding monetary ranges for each2
grant type.3
C. Grants and other funding of the MediFund shall be committed only to4
public or not-for-profit entities.5
D. The board shall apply the following guidelines for proposal selection,6
project monitoring, and matching funds:7
(1) Proposal solicitation, review, selection, and monitoring processes shall8
be implemented in such a manner as to ensure efficient operations and the attainment9
of the following objectives:10
(a) A proposal solicitation process which involves publicizing of board11
programs among academic, clinical, and research institutions and within relevant12
industries.13
(b) A proposal review process which assures complete, competent, and14
objective review of all proposals.15
(c) A grantee selection process which assures that funding will be awarded16
on a competitive basis.17
(d) A project monitoring process which assures that each project is carried18
out according to plan and budget.19
(e) A project data and outcomes tracking requirement, including grant20
monies spent, research activities, job creation, and local and regional economic21
impact.22
(2) For all grants other than those classified by the board as "planning23
grants", the board shall establish through its rules and regulations certain criteria for24
matching resources to be contributed by MediFund grantees to support the respective25
program or project funded by the MediFund. Such matching resources may include26
cash, in-kind donations, other grant monies received to support the respective27
program or project funded by the MediFund, and any other resources as the board28
deems appropriate.29 HLS 13RS-809 REENGROSSED
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§2216. Termination1
The provisions of this Chapter shall terminate on December 31, 2018.2
Section 3. Chapter 37 of Title 51 of the Louisiana Revised Statutes of 1950,3
comprised of R.S. 51:2201 through 2205, is hereby repealed in its entirety.4
Section 4. This Act shall become effective upon signature by the governor or, if not5
signed by the governor, upon expiration of the time for bills to become law without signature6
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If7
vetoed by the governor and subsequently approved by the legislature, this Act shall become8
effective on the day following such approval.9
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 the Board of Regents and provides the
board with rulemaking authority. Requires the commissioner of higher education 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 13 members, none of whom may
be employed by an entity which is eligible to receive MediFund grants, as follows:
(1)One member appointed by the commissioner of higher education. HLS 13RS-809 REENGROSSED
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(2)Four members appointed by the governor who each possess significant experience
in bioscience, translational, or regenerative research; or biomedical administration.
(3)One member appointed by the secretary of DHH.
(4)One member appointed by the secretary of LED.
(5)One member appointed by the speaker of the House of Representatives.
(6)One member appointed by the president of the Senate.
(7)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.
(8)One member appointed by the Experimental Program to Stimulate Competitive
Research (EPSCoR) Committee of the Board of Regents.
Proposed law provides that board members shall serve without compensation and shall
receive no per diem.
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 a Research Advisory Council composed of representatives of the BioDistrict
New Orleans, Pennington Biomedical Research Center, Ochsner Health System,
Tulane University, and the BioMedical Research Foundation of Northwest Louisiana
to determine priority research concentrations and commercialization strategies, or
other matters as may be requested by the board.
(2)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.
(3)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.
(4)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, 2015, and annually thereafter, the board shall
submit to the legislative committees on health and welfare, the legislative committees on
commerce, and the Louisiana Innovation Council, 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 on commercialization of bioscience research,
improvement of health outcomes, number of new jobs created, and total economic benefit. HLS 13RS-809 REENGROSSED
HB NO. 549
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are additions.
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",
"program grants", and "proof of concept 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.
(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 and 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 criteria 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.
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.
(Adds R.S. 36:651(CC), 802.23, and R.S. 51:2211-2216; Repeals R.S. 51:2201-2205)
Summary of Amendments Adopted by House HLS 13RS-809 REENGROSSED
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Committee Amendments Proposed by House Committee on Appropriations to the
original bill.
1. Changes the placement of the MediFund Board from the Department of Health
and Hospitals to the Board of Regents.
2. Changes definition of "biosciences".
3. Adds venture capital as a source of funding that can be deposited in the
MediFund.
4. Increases MediFund Board membership from 11 to 13 by adding one member
appointed by the commissioner of higher education and one member appointed
by the Experimental Program to Stimulate Competitive Research (EPSCoR)
Committee of the Board of Regents.
5. Provides the MediFund Board with additional authority, including forming a
Research Advisory Council.
6. Adds "proof of concept grants" as an additional award type.
7. Deletes threshold for matching resource requirement.
House Floor Amendments to the engrossed bill.
1. Deletes provision that powers, duties, and functions of the board are independent
of the commissioner of higher education.
2. Changes responsibilities regarding establishment of the initial board from the
DHH secretary to the commissioner of higher education.
3. Deletes authority for board members to receive reimbursement for expenses
incurred.
4. Adds representatives of Ochsner and Tulane to the membership of the Research
Advisory Council.
5. Changes the date of the initial report of the board from January 1, 2014 to
January 1, 2015. Requires the report to also be submitted to the House and
Senate committees on commerce and the Louisiana Innovation Council.