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Prepared by Martha Hess.
Leger HB No. 549
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
RESEARCH & DEVELOPMENT. Establishes the MediFund for statewide
advancement of biosciences and medical centers of excellence.
DIGEST
Proposed law establishes the MediFund as a special fund within the state treasury to support
advancement of biosciences, biomedicine, and medical centers of excellence in Louisiana.
Proposed law provides that subject to appropriation by the legislature to the MediFund Board
through the Board of Regents, the monies in the fund shall be used solely as provided in
proposed law. Proposed law prohibits appropriations from the MediFund from supplanting
funding for higher education from the state general fund.
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, all of whom shall
possess relevant experience in biosciences, biomedical, transactional, or regenerative
research, applications, or administration, and 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.
(2)Four members appointed by the governor.
(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. Page 2 of 4
Prepared by Martha Hess.
(b)Greater New Orleans, Inc.
(c)North Louisiana Economic Partnership.
(8)One member appointed by the Sponsored Programs 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.
(5)Sue and be sued in the name of the MediFund Board.
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, grants, patents, spinoff companies, scientific
discoveries, published research, and total economic benefit.
Proposed law provides that the MediFund Program shall be administered by the Board of
Regents through its Sponsored Programs Unit, in accordance with the policies promulgated
by the MediFund Board. All grant application review and selection processes shall follow
the competitive request for proposals process and external review process as may be utilized
by the Sponsored Programs Unit.
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. Provides that the use of all grant funds shall be subject to audit by
the legislative auditor.
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 Page 3 of 4
Prepared by Martha Hess.
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, with emphasis on public-private collaboration.
(d)A project monitoring process which assures that each project is carried out
according to plan and budget.
(e)Project data and outcomes tracking, including any grant monies spent,
research activities, job creation, local and regional economic impact,
published papers, patents, spinoff companies, scientific discoveries, new
grants and published research.
(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
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. Page 4 of 4
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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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the reengrossed
bill
1. Technical Amendments.
2. Adds biomedical to causes to be advanced by fund.
3. Provides monies in the fund are to be appropriated to the MediFund Board
through the Board of Regents, and prohibits the supplanting of funds.
4. Provides that all members of the board shall possess relevant experience in
biosciences, biomedical, transactional, or regenerative research, applications, or
administration.
5. Changed member appointed by Board of Regents from Experimental Program to
Stimulate Competitive Research to Board of Regents Sponsored Programs
Committee.
6. Authorizes the board to sue and be sued in the name of the MediFund Board.
7. Provides for administration of the MediFund Program by the Sponsored
Programs Unit, and that all grant application review and selection processes shall
follow the competitive request for proposals process and external review process
as may be utilized by the Sponsored Programs Unit.
8. Provides that the use of all grant funds shall be subject to audit by the legislative
auditor.