HS HB 555 -- LIFE SCIENCES RESEARCH PROGRAM AND TOBACCO
SETTLEMENT (Foley)

This substitute creates in the Department of Health the Life
Sciences Research Program which will be administered by the
Director of the Department of Health based on the
recommendations of the Life Sciences Research Board.  It also
provides for the deposit, investment, and appropriation of
tobacco settlement moneys received by the state.

In its main provisions, the substitute:

(1)  Establishes a 7-member Life Sciences Research Board and
specifies the composition of the board, terms of selection and
length of service for board members, residency requirements of
board members, and the procedures pertaining to filling board
vacancies and the appointment of additional board members;

(2)  Authorizes the board to issue conflict of interest
guidelines pertaining to the administration and operation of the
program and actions of board members.  Board members are
prohibited from making decisions to award any grants which can
lead to a conflict of interest;

(3)  Requires the board to use moneys in the Life Sciences
Research Fund for the purposes of establishing quality research
and specifies the research agenda of the program;

(4)  Details the procedure for the acceptance and approval of
applications to award grants for the purpose of conducting
research;

(5)  Outlines the powers of the board;

(6)  Specifies the use of "remaining funds" which are unexpended
moneys the board has received;

(7)  Contains provisions pertaining to the creation of program
rules;

(8)  Contains provisions pertaining to the establishment of the
Centers for Excellence for Life Science Research in Missouri;

(9)  Requires that the centers appoint a steering committee and
specifies the duties of the committee;

(10)  Requires the Governor to initially appoint a 7-member Life
Sciences Citizens Committee and specifies the duties of the
committee.  The duration of the committee and the selection of
committee members are stated;

(11)  Creates the Life Sciences Research Fund in the state
treasury and specifies the use of the fund;

(12)  Requires the board to obtain an annual financial audit
from the State Auditor or from an outside certified public
accounting firm;

(13)  Contains provisions pertaining to timely disclosure of
research findings to the scientific community and the retaining
of all rights, including copyrights and intellectual property
rights;

(14)  Prohibits grant awards from being paid to or on behalf of
an existing or proposed research project that involves abortion
services, destructive human research as defined in the
substitute, development of drugs or chemicals intended to be
used to induce an abortion, or human cloning;

(15)  Prohibits research projects from sharing costs with
another project or person not qualified to receive a grant under
the Life Sciences Research Program.  Recipients of grants will
maintain financial records, and audits will certify compliance
with this section;

(16)  Designates up to $1 million of the total amount of
Missouri small business tax credits available for qualified
investments in Missouri small businesses engaged solely in
pharmaceutical research and development.  If the entire $1
million is not used by September 1 of any year, the balance of
the credit may be used by other entities qualifying for tax
credits under the Capital Tax Credit Program.  Certain
limitations in current statutes relating to small business tax
credits will not apply to amounts allocated for this tax credit,
and the Director of the Department of Economic Development will
give preference in issuing tax credit certificates to applicants
for the credit;

(17)  Establishes trust funds and sub-accounts in the state
treasury and provides for percentage allocation of the tobacco
settlement moneys;

(18)  Creates an endowment fund known as the Fund for Missouri's
Future.  The first $125 million received by the state will be
deposited into the endowment fund and any interest earned on the
moneys will remain in the endowment fund until the corpus of the
fund reaches $1 billion.  Appropriation of moneys from the
endowment fund will only be allowed upon a two-thirds vote of
the elected members of the General Assembly by concurrent
resolution;

(19)  Requires that all moneys received after the initial $125
million and any interest earned on the endowment fund after the
corpus reaches $1 billion be deposited in the Health Care Trust
Fund, a new fund created in the substitute.  Moneys within the
Health Care Trust Fund will be divided among sub-accounts as
follows:

(a)  60% to the Prescription Drug Coverage and Health Care
Access Account;

(b)  10% to the Tobacco Prevention, Education and Cessation
Account;

(c)  10% to the Early Childhood and Youth Development Care and
Education Account; and

(d)  20% to the Life Sciences and Medical Research Account.

Moneys in the sub-accounts may only be appropriated for the
purposes of each sub-account as provided in the substitute.  The
substitute requires the Commissioner of Administration to
establish books of account to ensure deposit and expenditure of
the moneys as provided in the substitute;

(20)  Specifies that all moneys appropriated constitute
additional amounts over and above appropriation of general
revenue and will not reduce funding from general revenue below
levels as of July 1, 2000;

(21)  Excludes tobacco settlement moneys received by the state
from the classification of total state revenues and the
expenditure of the moneys from the designation as an expense of
state government as it relates to the Hancock Amendment;

(22)  Submits the provisions relating to the tobacco settlement
to voters at a statewide election on November 5, 2001, and if
approved, the provisions will become effective on July 1, 2002;
and

(23)  Specifies an official summary statement of the referendum
measure to appear on the ballot.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$$3,857,600 to $50,027,143 in FY 2002, and $435,200,000 to
$435,622,560 in FY 2003, and $164,000,000 to $164,423,778 in FY
2004.  Estimated Net Effect to Life Sciences Research Fund of $0
in FY 2002, FY 2003, and FY 2004.  Does not include grant
expenditures and auditing costs.  Estimated Net Effect to
Healthy Families Trust Fund of $0 in FY 2002, FY 2003, and FY
2004.  Estimated Net Income to Health Care Trust Fund of $0 in
FY 2002, $310,200,000 in FY 2003, and $164,000,000 in FY 2004.
Estimated Net Income to Fund for Missouri's Future of $0 in FY
2002, $125,000,000 in FY 2003, and $0 in FY 2004.

Missouri House of Representatives
Last Updated November 26, 2001 at 11:44 am