ENROLLED
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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, BROWN, BUFFINGTON,
CORTEZ, CROWE, DORSEY-COLOMB, ERDEY, HEI TMEIER, JOHNS,
KOSTELKA, MILLS, MORRELL, MORRISH, MURRAY, NEVERS, PETERSON,
RISER, GARY SMITH, TARVER, AND THOMPSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
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, biomedical, and medical centers of excellence; to provide for purposes7
of the fund; to create and provide for the composition of a governing board for the8
fund; to provide for duties and authority of the governing board; to provide9
guidelines for programs and projects to be funded by the MediFund; to establish a10
termination date for the MediFund; to repeal provisions relative to the Dedicated11
Research Investment 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
§651. Transfer of boards, commissions, departments, and agencies to Department15
of Education; boards, commissions, and agencies within Department of16
Education17
* * *18 ENROLLEDHB NO. 549
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CC. The MediFund Board (R.S. 51:2214) is hereby placed within the Board1
of Regents and shall exercise and perform its powers, duties, functions, and2
responsibilities in the manner provided in R.S. 36:802.23.3
* * *4
§802.23. Transfer; MediFund Board5
The MediFund Board, transferred by the provisions of R.S. 36:651(CC), is6
transferred to and placed within the Board of Regents and shall continue to be7
composed and selected as provided by law, and shall continue to exercise all of the8
powers, duties, functions, and responsibilities as provided in Chapter 37-A of Title9
51 of the Louisiana Revised Statutes.10
Section 2. Chapter 37-A of Title 51 of the Louisiana Revised Statutes of 1950,11
comprised of R.S. 51:2211 through 2216, is hereby enacted to read as follows: 12
CHAPTER 37-A. LOUISIANA MEDIFUND13
§2211. Purpose and goals14
A. The provisions of this Chapter establish the MediFund as a special fund15
within the state treasury to support advancement of biosciences, biomedical, and16
medical centers of excellence in Louisiana. The MediFund governing board shall17
endeavor to achieve this purpose by coordinating and deploying public and private18
resources to strategically develop and enhance this state's competitiveness in19
biosciences, biomedical, and medical centers of excellence.20
B. The goals of the MediFund shall include all of the following:21
(1) Create regional and national medical centers of excellence for22
biosciences and biomedicine in order to promote destination health care.23
(2) Contribute to improvement of health outcomes for consumers of health24
care services in Louisiana.25
(3) Support strategic research and clinical partnerships.26
(4) Facilitate a competitive process for funding program proposals and27
projects based on an objectively determined potential for positive economic28
development impact.29 ENROLLEDHB NO. 549
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§2212. Definitions1
As used in this Chapter, the following terms shall have the meanings ascribed2
to them below:3
(1) "Biosciences" means any of the branches of natural science dealing with4
the structure and behavior of living organisms, including but not limited to5
translational and regenerative research, development, manufacture, testing,6
marketing or distribution of pharmaceuticals, biotechnology products, biotechnology7
and health-related software, and medical devices that will eventually be used by8
health care providers to treat, cure, prevent, or mitigate disease or health conditions.9
(2) "Board" means the MediFund governing board.10
(3) "Fund" means the MediFund created by the provisions of this Chapter.11
§2213. MediFund; creation12
A. The MediFund, hereafter referred to as the "fund", is hereby created as13
a special fund in the state treasury. The source of monies for the fund may include14
but shall not be limited to any appropriation by the legislature, including federal15
funds; any public or private donations, gifts, or grants from individuals, corporations,16
nonprofit organizations, or other business entities; venture capital; and any other17
monies which may be provided by law.18
B. All money received by the fund, except as otherwise provided by Article19
VII, Section 9(B) of the Constitution of Louisiana relative to the Bond Security and20
Redemption Fund, shall be deposited immediately upon receipt into the state21
treasury.22
C. The monies in the fund shall be invested by the state treasurer in the same23
manner as monies in the state general fund. Interest earned on the investment of24
monies in the fund shall be credited to the fund following compliance with the25
requirements of Article VII, Section 9(B) of the Constitution of Louisiana. All26
unexpended and unencumbered monies in the fund at the end of each fiscal year shall27
remain in the fund.28
D. Subject to appropriation by the legislature to the MediFund Board29
through the Board of Regents, the monies in the fund shall be used solely for the30 ENROLLEDHB NO. 549
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purposes provided in this Chapter. The monies appropriated by the legislature and1
disbursed from the MediFund shall not displace, replace, or supplant funding for2
higher education for a purpose for which a general fund appropriation was made in3
the previous year unless the total appropriation for that fiscal year from the state4
general fund for such purpose exceeds general fund appropriations for the previous5
year.6
E.(1)(a) Except as provided for in Paragraph (3) of this Subsection, in no7
fiscal year shall the amount transferred or appropriated to the MediFund exceed8
twenty percent of any increase in state general fund and dedicated funds in the9
aggregate in the operating budget as contained in the general appropriation bill for10
higher education from the prior fiscal year.11
(b) Increases in the appropriation for the Louisiana Taylor Opportunity12
Program for Students, the administrative costs of the management boards of higher13
education, the Louisiana Education Quality Support Fund, and the Louisiana Marine14
Consortium shall not count as increases for higher education for purposes of this15
Section.16
(2) Except as provided for in Paragraph (3) of this Subsection, state17
appropriations and transfers into the fund shall not exceed twenty-five million dollars18
in any fiscal year.19
(3) The restrictions on transfers and appropriations to the fund provided for20
in this Section shall not apply to the following:21
(a) Any tax or fee enacted after June 30, 2013, which provides by law for22
deposit into the fund; and23
(b) An initial, one-time deposit of up to two hundred fifty thousand dollars24
of state funds as required for deposit in treasury in Article VII, Section 9 of the25
Constitution of Louisiana, notwithstanding the provisions of Paragraphs (1) and (2)26
of this Subsection; and27
(c) Non-state funds.28
(4) State monies received by the fund may be allocated to public and not-for-29
profit institutions, provided that no grant shall be made to a not-for-profit institution30 ENROLLEDHB NO. 549
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if the grant does not include a public institution with a substantial role unless no1
public institution possesses the expertise or interest necessary to participate.2
Likewise, any such grants awarded by the fund to a public institution, as the primary3
applicant, shall include a not-for-profit institution as a collaborative grant partner,4
with a substantial role, unless no not-for-profit institution in this state possesses the5
expertise necessary or the interest to participate in such collaboration. This6
limitation shall not include non-state funds.7
F. Three percent of the balance of the fund or an amount not to exceed six8
hundred thousand dollars, whichever is lesser, shall be used for administrative fees9
to accomplish the purpose of this Chapter, as approved by the MediFund board.10
§2214. Governing board; authority; duties11
A. There is hereby established within the Board of Regents the MediFund12
Board, hereafter referred to as the "board", which shall be composed as provided in13
Subsection B of this Section. The commissioner of higher education shall take such14
actions as are necessary to have the roster of initial board members compiled on or15
before September 1, 2013, and to convene the first meeting of the board on or before16
November 1, 2013.17
B. The board shall be composed of thirteen members, each of whom shall18
possess significant experience in biosciences, biomedical, translational, or19
regenerative research, or applications, and none of whom may be employed by an20
entity that is eligible to receive MediFund grants; as follows:21
(1) One member appointed by the commissioner of higher education.22
(2) Four members appointed by the governor.23
(3) One member appointed by the secretary of the Department of Health and24
Hospitals.25
(4) One member appointed by the secretary of the Department of Economic26
Development.27
(5) One member appointed by the speaker of the House of Representatives.28
(6) One member appointed by the president of the Senate.29 ENROLLEDHB NO. 549
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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 Sponsored Programs Committee of the7
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
Louisiana State University System Research Technology Foundation, New Orleans25
BioInnovation Center, BioDistrict New Orleans, Pennington Biomedical Research26
Center, Ochsner Health System, Tulane University, Xavier University, Louisiana27
State University Health Sciences Center at New Orleans, Louisiana State University28
Health Sciences Center at Shreveport, Willis Knighton Health System, and the29
BioMedical Research Foundation of Northwest Louisiana to determine priority30 ENROLLEDHB NO. 549
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research concentrations and commercialization strategies, or other matters as may1
be requested by the board.2
(2) Form special committees, advisory councils, or similar bodies to study3
and make policy recommendations to the board concerning priority research areas,4
research commercialization strategies, or other matters as may be requested by the5
board.6
(3) Enter into contracts as necessary, through the Sponsored Programs Unit7
of the Board of Regents, for development of proposal evaluation criteria,8
coordination of a proposal evaluation process, or other functions related to evaluation9
of funding proposals and applications for funding submitted to the board.10
(4) Promulgate all such rules, in accordance with the Administrative11
Procedure Act, as are necessary to carry out the programs and functions of the12
MediFund.13
(5) Sue and be sued in the name of the board.14
H. On or before January 1, 2015, and annually thereafter, the board shall15
submit to the House and Senate committees on education, the House and Senate16
committees on commerce, and the Louisiana Innovation Council a report which17
addresses funding activities undertaken and performance outcomes by the MediFund18
in the most recent one-year period and any other information which the board deems19
appropriate to convey a clear understanding of the operations and impact of the20
MediFund on commercialization of bioscience research, improvement of health21
outcomes, number of new jobs created, grants, patents, spinoff companies, scientific22
discoveries, published research, and total economic benefit.23
§2215. MediFund program guidelines24
A. The MediFund Program shall be administered by the Board of Regents25
through its Sponsored Programs Unit, in accordance with the policies promulgated26
by the MediFund Board. All grant application review and grant selection processes27
shall follow the competitive request for proposals process and external review28
process as may be utilized by the Sponsored Programs Unit, including published29
criteria, so as to ensure impartial and merit-based grant selection.30 ENROLLEDHB NO. 549
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B. The board shall promulgate rules and regulations governing the use of1
monies of the MediFund and shall adopt policies for governance of any program or2
funding action that it implements prior to initiation of the program or funding action.3
The rules and regulations of the MediFund shall establish a maximum amount or4
percentage of total funds that may be awarded to any individual project recipient or5
that may be utilized by the board for administrative expenses. The rules and6
regulations provided for in this Section shall be adopted in accordance with the7
Administrative Procedure Act. The use of all grant funds shall be subject to audit by8
the legislative auditor.9
C. The board shall delineate the programs which it implements and the10
functions that each program fulfills. For this purpose, the board shall implement a11
tiered system of funding to consist of awards known as "planning grants", "program12
grants", and "proof of concept grants", with corresponding monetary ranges for each13
grant type.14
D. Grants and other funding of the MediFund shall be committed only to15
public or not-for-profit entities.16
E. The board shall apply the following guidelines for proposal selection,17
project monitoring, and matching funds:18
(1) Proposal solicitation, review, selection, and monitoring processes shall19
be implemented in such a manner as to ensure efficient operations and the attainment20
of the following objectives:21
(a) A proposal solicitation process which involves publicizing of board22
programs among academic, clinical, and research institutions and within relevant23
industries.24
(b) A proposal review process which assures complete, competent, and25
objective review of all proposals.26
(c) A grantee selection process which assures that funding will be awarded27
on a competitive basis, with emphasis on public-private collaboration.28
(d) A project monitoring process which assures that each project is carried29
out according to plan and budget.30 ENROLLEDHB NO. 549
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(e) Project data and outcomes tracking, including any grant monies spent,1
research activities, job creation, local and regional economic impact, published2
papers, patents, spinoff companies, scientific discoveries, new grants, and published3
research.4
(2) For all grants other than those classified by the board as "planning5
grants", the board shall establish through its rules and regulations certain criteria for6
matching resources to be contributed by MediFund grantees to support the respective7
program or project funded by the MediFund. Such matching resources may include8
cash, in-kind donations, other grant monies received to support the respective9
program or project funded by the MediFund, and any other resources as the board10
deems appropriate.11
§2216. Termination12
The provisions of this Chapter shall terminate on December 31, 2018.13
Section 3. Chapter 37 of Title 51 of the Louisiana Revised Statutes of 1950,14
comprised of R.S. 51:2201 through 2205, is hereby repealed in its entirety.15
Section 4. This Act shall become effective upon signature by the governor or, if not16
signed by the governor, upon expiration of the time for bills to become law without signature17
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If18
vetoed by the governor and subsequently approved by the legislature, this Act shall become19
effective on the day following such approval.20
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: