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| 5 | 5 | | 2023 -- S 1085 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC003108 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO HEALTH AND SAFETY -- THE RHODE ISLAND LIFE SCIENCE HUB |
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| 16 | 16 | | ACT |
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| 17 | 17 | | Introduced By: Senator Dominick J. Ruggerio |
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| 18 | 18 | | Date Introduced: May 26, 2023 |
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| 19 | 19 | | Referred To: Senate Finance |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby 1 |
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| 24 | 24 | | amended by adding thereto the following chapter: 2 |
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| 25 | 25 | | CHAPTER 99 3 |
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| 26 | 26 | | THE RHODE ISLAND LIFE SCIENCE HUB ACT 4 |
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| 27 | 27 | | 23-99-1. Short title. 5 |
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| 28 | 28 | | This act shall be known and may be cited as the "Rhode Island Life Science Hub Act". 6 |
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| 29 | 29 | | 23-99-2. Legislative purpose. 7 |
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| 30 | 30 | | The purpose of this chapter shall be to create and lawfully manage a quasi-public corporate 8 |
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| 31 | 31 | | body and agency of the state for the express purpose of acting as the central entity and coordinating 9 |
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| 32 | 32 | | organization of life science initiatives on behalf of the state that shall: 10 |
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| 33 | 33 | | (1) Facilitate the development of medical advances and scientific breakthroughs with 11 |
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| 34 | 34 | | companies who specialize in the fields of: medical devices, biomedical technology, medical 12 |
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| 35 | 35 | | therapeutic therapies, biogenetics, biomedical engineering, biopharmaceuticals, genomics, and 13 |
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| 36 | 36 | | related fields; and, 14 |
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| 37 | 37 | | (2) Through targeted investment of grants, tax credits, and incentives, fund and incubate 15 |
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| 38 | 38 | | Rhode Island-based life science companies that will promote economic and workforce development 16 |
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| 39 | 39 | | within the state and that shall allow the state to successfully compete in the national and 17 |
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| 40 | 40 | | international life science industries. 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC003108 - Page 2 of 8 |
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| 44 | 44 | | 23-99-3. Definitions. 1 |
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| 45 | 45 | | As used in this chapter, the following words shall have the following meanings: 2 |
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| 46 | 46 | | (1) “Affiliate” means any business which, or person who, directly or indirectly controls or 3 |
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| 47 | 47 | | is controlled by or is under direct or indirect common control of another business including, but not 4 |
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| 48 | 48 | | limited to, any business, or person, with which a business is merged or consolidated, or which 5 |
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| 49 | 49 | | purchases all or substantially all of the assets of a business. 6 |
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| 50 | 50 | | (2) “Board” means the board of directors of the Rhode Island life science hub. 7 |
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| 51 | 51 | | (3) “Certification proposal” means a written proposal submitted by a life science company 8 |
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| 52 | 52 | | for approval as a certified life sciences company. 9 |
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| 53 | 53 | | (4) “Certified life sciences company” means a company that has been certified by the board 10 |
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| 54 | 54 | | as being eligible to receive grants and incentives from the investment fund. 11 |
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| 55 | 55 | | (5) “Company” means a business corporation, partnership, firm, unincorporated 12 |
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| 56 | 56 | | association, or other entity engaged or proposing to engage in economic activity within the state, 13 |
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| 57 | 57 | | and any affiliate thereof. 14 |
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| 58 | 58 | | (6) “Hub” means the Rhode Island life science hub established by § 23-99-4. 15 |
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| 59 | 59 | | (7) “Investment fund” means the hub investment fund established by § 23-99-6. 16 |
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| 60 | 60 | | (8) “Life science” means and shall include, but not be limited to: biopharma, medical 17 |
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| 61 | 61 | | devices, bio-manufacturing, diagnostics, digital health, and other biotechnological advancements. 18 |
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| 62 | 62 | | (9) “Life science company” means a corporation, partnership, firm, unincorporated 19 |
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| 63 | 63 | | association, or other entity engaged in life science research, development, manufacturing, or 20 |
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| 64 | 64 | | commercialization in Rhode Island, and any affiliate thereof. 21 |
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| 65 | 65 | | (10) “Person” means a natural person, corporation, association, partnership, or other legal 22 |
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| 66 | 66 | | entity. 23 |
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| 67 | 67 | | (11) “State” means the State of Rhode Island. 24 |
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| 68 | 68 | | 23-99-4. Rhode Island life science hub established. 25 |
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| 69 | 69 | | (a) There is hereby constituted as an independent public instrumentality and body corporate 26 |
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| 70 | 70 | | and politic for the purposes set forth in this chapter with a separate legal existence from the state to 27 |
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| 71 | 71 | | be known as the Rhode Island life science hub hereinafter to be referred as the “hub”. The exercise 28 |
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| 72 | 72 | | by the hub of the powers conferred by this chapter shall be considered to be the performance of an 29 |
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| 73 | 73 | | essential governmental function. 30 |
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| 74 | 74 | | (b) The hub shall be governed and its corporate powers exercised by a board of directors 31 |
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| 75 | 75 | | consisting of eleven (11) directors: one of whom shall be a senior executive with extensive 32 |
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| 76 | 76 | | background in the banking, grant making, and fundraising fields; appointed by the governor; one 33 |
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| 77 | 77 | | of whom shall be the secretary of commerce; three (3) of whom shall be the president of Rhode 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 80 | 80 | | LC003108 - Page 3 of 8 |
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| 81 | 81 | | Island college, or designee, the president of the university of Rhode Island, or designee, and the 1 |
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| 82 | 82 | | president of Brown university, or designee; one of whom shall be the dean of the Warren Alpert 2 |
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| 83 | 83 | | Medical School of Brown university, or designee; one of whom shall be a member of a life science 3 |
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| 84 | 84 | | trade association, appointed by the governor; one of whom shall be the president and chief 4 |
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| 85 | 85 | | executive officer of the Lifespan Corporation, or designee; and three (3) of whom shall be appointed 5 |
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| 86 | 86 | | by the governor, one of whom shall be the president or a senior executive of a Rhode Island life 6 |
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| 87 | 87 | | science company, or designee, one of whom shall be a senior executive of Amgen, or designee, and 7 |
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| 88 | 88 | | one of whom shall be a member of the public who shall be a certified public accountant and a 8 |
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| 89 | 89 | | member of the Rhode Island society of certified public accountants. 9 |
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| 90 | 90 | | (c) The chair of the board shall be appointed by the governor and shall be an individual 10 |
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| 91 | 91 | | who served in the capacity as a senior executive with extensive background in the banking, grant 11 |
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| 92 | 92 | | making, and fundraising fields. The vice-chair of the board shall be the secretary of commerce. Six 12 |
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| 93 | 93 | | (6) directors shall constitute a quorum, and any action to be taken by the board under the provisions 13 |
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| 94 | 94 | | of this chapter may be authorized by resolution approved by a majority of the directors present and 14 |
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| 95 | 95 | | entitled to vote at any regular or special meeting at which a quorum is present. No votes may be 15 |
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| 96 | 96 | | taken unless the chair is present and voting, and in the event of a tie, the chair shall have an 16 |
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| 97 | 97 | | additional vote. A vacancy in the membership of the board of directors shall not impair the right of 17 |
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| 98 | 98 | | a quorum to exercise all of the rights and perform all of the duties of the board. Board members are 18 |
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| 99 | 99 | | authorized to participate remotely in open public meetings of the board; provided, however, that: 19 |
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| 100 | 100 | | (1) The remote member(s) and all persons present at the meeting location are clearly 20 |
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| 101 | 101 | | audible and visible to each other; 21 |
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| 102 | 102 | | (2) A quorum of the body is participating; 22 |
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| 103 | 103 | | (3) If videoconferencing is used to conduct a meeting, the public notice for the meeting 23 |
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| 104 | 104 | | shall inform the public that videoconferencing will be used and include instructions on how the 24 |
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| 105 | 105 | | public can access the virtual meeting; and 25 |
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| 106 | 106 | | (4) The board shall adopt rules defining the requirements of remote participation including 26 |
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| 107 | 107 | | its use for executive session, and the conditions by which a member is authorized to participate 27 |
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| 108 | 108 | | remotely. 28 |
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| 109 | 109 | | (d) Each board member shall serve a term of four (4) years. In the event that the chair of 29 |
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| 110 | 110 | | the board position becomes vacant for any reason, the vice chair shall serve as the interim chair 30 |
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| 111 | 111 | | until the appointment of a new chair by the governor. In making this appointment, the governor 31 |
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| 112 | 112 | | shall give due consideration in appointing an individual from a list of six (6) candidates, three (3) 32 |
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| 113 | 113 | | of whom shall be provided to the governor by the speaker of the house and three (3) of whom shall 33 |
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| 114 | 114 | | be provided to the governor by the president of the senate. Any person appointed to fill a vacancy 34 |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | LC003108 - Page 4 of 8 |
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| 118 | 118 | | in the office of an appointed director of the board shall be appointed in a like manner and shall 1 |
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| 119 | 119 | | serve for the unexpired term of such director. Any director shall be eligible for reappointment. 2 |
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| 120 | 120 | | (e) The member of the board who is a member of the public and who is a certified public 3 |
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| 121 | 121 | | accountant and a member of the Rhode Island society of certified public accountants shall serve as 4 |
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| 122 | 122 | | treasurer and shall be charged with keeping the funds, books of account and accounting records of 5 |
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| 123 | 123 | | the hub. No funds shall be transferred by the hub without the approval of the board and the signature 6 |
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| 124 | 124 | | of the treasurer. The board shall annually elect one of its members as secretary who shall keep a 7 |
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| 125 | 125 | | record of the proceedings of the board and shall be custodian of all books, documents, and papers 8 |
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| 126 | 126 | | filed by the board and of its minute book and seal. 9 |
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| 127 | 127 | | (f) Members of the board shall serve without compensation, but each member shall be 10 |
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| 128 | 128 | | entitled to reimbursement for actual, reasonable, and necessary expenses while engaged in the 11 |
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| 129 | 129 | | performance of official duties. Board members, officers, and employees shall not be liable to the 12 |
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| 130 | 130 | | state, the hub, or to any other person as a result of their activities except for malfeasance in office 13 |
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| 131 | 131 | | or intentional violations of law. 14 |
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| 132 | 132 | | (g) The board shall establish an application review committee consisting of not less than 15 |
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| 133 | 133 | | three (3) members of the board, which shall review proposals for funding submitted by life sciences 16 |
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| 134 | 134 | | companies that shall be supported by independently verifiable information, and the board shall 17 |
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| 135 | 135 | | make a record of findings based on the certification proposal, documents submitted therewith, and 18 |
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| 136 | 136 | | any additional evidence that the life science company meets all criteria that the hub may prescribe. 19 |
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| 137 | 137 | | (h) Certified life science companies shall be eligible to receive funding from the hub, upon 20 |
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| 138 | 138 | | a majority vote of the board, for the following benefits which shall be awarded by the board on a 21 |
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| 139 | 139 | | competitive basis: 22 |
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| 140 | 140 | | (1) Grants, loans or other investments; 23 |
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| 141 | 141 | | (2) Assistance from the hub in obtaining federal, state, and nonprofit monies; or 24 |
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| 142 | 142 | | (3) Assistance from the hub in facilitating clinical trials. 25 |
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| 143 | 143 | | (i) Notwithstanding any other provisions of law in relation to their tenure of office, the 26 |
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| 144 | 144 | | governor may remove any board member for the neglect of any duty required by law, 27 |
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| 145 | 145 | | incompetence, unprofessional conduct, or willful misconduct. 28 |
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| 146 | 146 | | (j) Each director shall make full disclosure, in accordance with §§ 36-14-1 through 36-14-29 |
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| 147 | 147 | | 7, of any financial interest, if any, in any matter before the board. 30 |
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| 148 | 148 | | (k) The board shall have the power to appoint and employ a president, who shall also serve 31 |
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| 149 | 149 | | as the chief executive officer of the hub, and to establish compensation and conditions of 32 |
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| 150 | 150 | | employment for the president and chief executive officer. 33 |
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| 151 | 151 | | (l) The Rhode Island commerce corporation shall provide operating quarters for the hub 34 |
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| 152 | 152 | | |
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| 153 | 153 | | |
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| 154 | 154 | | LC003108 - Page 5 of 8 |
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| 155 | 155 | | for, at a minimum, the first year of the hub’s operation. 1 |
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| 156 | 156 | | 23-99-5. Hub powers. 2 |
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| 157 | 157 | | (a) The hub shall have the following powers and all powers necessary to carry out and 3 |
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| 158 | 158 | | effectuate its purposes, including, without limitation, all powers necessary for the performance of 4 |
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| 159 | 159 | | the following: 5 |
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| 160 | 160 | | (1) To have perpetual succession as a quasi-public corporate body and agency of the state 6 |
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| 161 | 161 | | and to adopt bylaws, rules, regulations, and procedures for its governance and conduct of its 7 |
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| 162 | 162 | | business; 8 |
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| 163 | 163 | | (2) To act as the central entity and coordinating organization of bio-life science initiatives 9 |
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| 164 | 164 | | on behalf of the state and to work in collaboration with governmental entities, bodies, centers, hubs, 10 |
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| 165 | 165 | | and facilities to promote life sciences; 11 |
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| 166 | 166 | | (3) To engage accountants, architects, attorneys, engineers, planners, real estate experts, 12 |
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| 167 | 167 | | and other consultants as may be necessary in its judgment to carry out the purposes of this chapter; 13 |
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| 168 | 168 | | (4) To obtain liability insurance for board members, officers, and employees in order to 14 |
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| 169 | 169 | | indemnify said persons against the claims of others; 15 |
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| 170 | 170 | | (5) To administer the Rhode Island life science investment fund, established pursuant to 16 |
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| 171 | 171 | | this chapter for the purposes of making appropriations, allocations, grants, or loans; 17 |
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| 172 | 172 | | (6) To apply for and accept contributions of any source of money, property, labor, or any 18 |
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| 173 | 173 | | other things of value and to invest, disburse, appropriate, grant, loan, or allocate any funds for the 19 |
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| 174 | 174 | | purpose of investing in any life science initiative; 20 |
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| 175 | 175 | | (7) To create access to capital, funding, and business support programs; 21 |
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| 176 | 176 | | (8) To enter into contracts and agreements to further scientific research in the state, aid in 22 |
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| 177 | 177 | | the promotion the health of residents, foster jobs in the life sciences, and promote overall economic 23 |
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| 178 | 178 | | growth; and 24 |
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| 179 | 179 | | (9) To issue bonds, notes, and any other obligations of the hub, subject to the provisions of 25 |
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| 180 | 180 | | chapter 18 of title 35 ("Rhode Island public corporation debt management"). 26 |
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| 181 | 181 | | 23-99-6. Hub investment fund. 27 |
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| 182 | 182 | | (a) There shall be established and placed within the hub, a fund to be known as the Rhode 28 |
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| 183 | 183 | | Island life science investment fund, hereinafter referred to as the "fund", to be held by the hub to 29 |
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| 184 | 184 | | finance the operations and initiatives of the hub. The fund shall be credited any appropriations, 30 |
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| 185 | 185 | | bond proceeds, federal grants or loans, or other such additional funds as are subject to the direction 31 |
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| 186 | 186 | | and control of the hub, which may properly be applied in furtherance of the objectives of the hub. 32 |
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| 187 | 187 | | (b) The fund shall be held and applied by the hub to make qualified investments, grants, 33 |
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| 188 | 188 | | research and other funding, and loans designed to advance public purposes for the life science 34 |
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| 189 | 189 | | |
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| 190 | 190 | | |
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| 191 | 191 | | LC003108 - Page 6 of 8 |
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| 192 | 192 | | industry in the state and shall use the fund for such purposes. 1 |
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| 193 | 193 | | (c) The state shall not be liable for the payment of the principal of, or interest on, any bonds 2 |
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| 194 | 194 | | or notes of the hub, or for the performance of any pledge, mortgage, obligation, or agreement of 3 |
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| 195 | 195 | | any kind whatsoever which may be undertaken by the hub, and none of the bonds or notes of the 4 |
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| 196 | 196 | | hub nor any of its agreements or obligations shall be construed to constitute an indebtedness of the 5 |
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| 197 | 197 | | state. Payments related to any transaction involving, or investment by, the hub shall be payable 6 |
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| 198 | 198 | | solely from the fund. 7 |
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| 199 | 199 | | (d) The board shall promulgate rules, regulations or guidelines necessary to carry out the 8 |
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| 200 | 200 | | provisions of this section. 9 |
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| 201 | 201 | | 23-99-7. Annual reports. 10 |
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| 202 | 202 | | (a) The hub shall submit a report, beginning on or before October 1, 2024, and annually 11 |
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| 203 | 203 | | thereafter, to the governor, the speaker of the house, and the president of the senate. This report 12 |
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| 204 | 204 | | shall include: 13 |
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| 205 | 205 | | (1) The hub’s receipts and expenditures during such fiscal year; 14 |
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| 206 | 206 | | (2) The hub’s assets and liabilities at the end of its fiscal year; 15 |
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| 207 | 207 | | (3) A list of all certified life sciences companies; 16 |
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| 208 | 208 | | (4) A complete list of grants awarded by the hub and any other funding activities; 17 |
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| 209 | 209 | | (5) Reports of patents or products resulting from funded activities; 18 |
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| 210 | 210 | | (6) The status of construction of any real estate project resulting from certification, 19 |
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| 211 | 211 | | including whether construction is on-time and on-budget; 20 |
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| 212 | 212 | | (7) Any federal initiatives that have an impact on life science companies doing business in 21 |
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| 213 | 213 | | the state; and 22 |
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| 214 | 214 | | (8) Any concerns surrounding pending or threatened litigation, pending legislation both 23 |
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| 215 | 215 | | state and federal, or any other known material risks. 24 |
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| 216 | 216 | | 23-99-8. Accountability and audit. 25 |
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| 217 | 217 | | (a) The board shall be responsible for establishing accountability standards, reporting 26 |
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| 218 | 218 | | standards, and outcome measurements for all of its expenditures, including all investments and 27 |
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| 219 | 219 | | grants. 28 |
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| 220 | 220 | | (b) The board and the hub shall comply with provisions of chapter 155 of title 42, the 29 |
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| 221 | 221 | | ("quasi-public corporations accountability and transparency act.") 30 |
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| 222 | 222 | | (c) In addition to the requirements pursuant to the provisions of subsection (b) of this 31 |
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| 223 | 223 | | section and § 42-155-7, the books and records of the hub shall be audited by the Rhode Island 32 |
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| 224 | 224 | | auditor general, at least on an annual basis, in accordance with generally accepted accounting 33 |
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| 225 | 225 | | principles and generally accepted government auditing standards. 34 |
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| 226 | 226 | | |
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| 227 | 227 | | |
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| 228 | 228 | | LC003108 - Page 7 of 8 |
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| 229 | 229 | | 23-99-9. Severability. 1 |
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| 230 | 230 | | If any section, clause, provision, or portion of this chapter is held to be invalid or 2 |
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| 231 | 231 | | unconstitutional by any court of competent jurisdiction, that holding shall not affect any other 3 |
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| 232 | 232 | | section, clause, or provision of this chapter which is not in and of itself unconstitutional. 4 |
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| 233 | 233 | | SECTION 2. This act shall take effect on September 1, 2023. 5 |
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| 234 | 234 | | ======== |
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| 235 | 235 | | LC003108 |
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| 237 | 237 | | |
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| 238 | 238 | | |
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| 239 | 239 | | LC003108 - Page 8 of 8 |
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| 240 | 240 | | EXPLANATION |
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| 241 | 241 | | BY THE LEGISLATIVE COUNCIL |
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| 242 | 242 | | OF |
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| 243 | 243 | | A N A C T |
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| 244 | 244 | | RELATING TO HEALTH AND SAFETY -- THE RHODE ISLAND LIFE SCIENCE HUB |
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| 245 | 245 | | ACT |
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| 246 | 246 | | *** |
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| 247 | 247 | | This act would create the Rhode Island life science hub, a quasi-public corporate body and 1 |
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| 248 | 248 | | agency of the state to coordinate life science initiatives on behalf of Rhode Island. 2 |
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| 249 | 249 | | This act would take effect on September 1, 2023. 3 |
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| 250 | 250 | | ======== |
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| 251 | 251 | | LC003108 |
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| 252 | 252 | | ======== |
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| 253 | 253 | | |
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