FIRST REGULAR SESSION

[PERFECTED]

HOUSE SUBSTITUTE FOR

HOUSE BILL NO. 555

91ST GENERAL ASSEMBLY


Taken up for Perfection April 25, 2001. House Substitute for House Bill No. 555 ordered Perfected and printed, as amended.

.

TED WEDEL, Chief Clerk

1232L.05P


AN ACT

To amend chapters 192 and 196, RSMo, by adding thereto twenty new sections relating to a life sciences research program and tobacco settlement, with a referendum clause for certain sections.




Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Chapters 192 and 196, RSMo, are amended by adding thereto twenty new sections, to be known as sections 192.1010, 192.1012, 192.1013, 192.1014, 192.1015, 192.1020, 192.1025, 192.1035,196.1075, 196.1078, 196.1081, 196.1084, 196.1087, 196.1090, 196.1093, 196.1096, 196.1099, 196.1102, 196.1105 and Section 1, to read as follows:

192.1010. 1. There is hereby established within the department of health, the "Life Sciences Research Program". The program shall be administered by the director of the department of health based upon the recommendations of the "Life Sciences Research Board", which is hereby created. The program shall consist of grant awards designed to achieve the goals stated in subsection 3 of this section.

2. The life sciences research board shall consist of seven members who shall be appointed in the following manner:

(1) Each member shall be appointed by the governor with the advice and consent of the senate for a term of six years, except for the terms of the initial members. The board shall select its own chairperson from among its members;

(2) The members of the board shall be generally familiar with the life sciences and current research trends and developments, with either technical or scientific expertise in life sciences, and with an understanding of the application of the results of life sciences research;

(3) The initial members of the life sciences research board shall not be appointed until at least six months after the effective date of this section to permit the life sciences citizens' committee to approve the organization and structure of the initial centers for excellence for life sciences research as hereinafter provided;

(4) One member of the board shall be a resident within the geographical area for a St. Louis area center for excellence, as defined in section 192.1012, and shall be referred to as the St. Louis member; one member shall be a resident within the geographical area for a Kansas City area center for excellence, as defined in section 192.1012, and shall be referred to as the Kansas City area member; and one member shall be a resident of this state and shall be referred to as the university member. The remaining four members shall be residents of this state and shall be referred to as at-large members. No more than one at-large member shall reside in a single United States congressional district when appointed. If an additional center for excellence for life sciences research is established for another geographical area pursuant to section 192.1012, the at-large position on the board that next becomes vacant shall become a position on the board for a member who resides within the geographical area of such additional center for excellence;

(5) The first appointees as the St. Louis member and the Kansas City member of the board shall be appointed to two-year terms; the first appointee as the university member of the board shall be appointed to a four-year term; two of the first two appointees as at-large members of the board shall be appointed to four-year terms; and the remaining two initial at-large members shall be appointed to six-year terms. All subsequent appointees shall be appointed to six-year terms;

(6) The St. Louis area center for excellence for life sciences research may recommend one or more persons to the governor for appointment as the St. Louis member of the board; the Kansas City area for excellence for life sciences research may recommend one or more persons to the governor for appointment as the Kansas City member of the board; the University of Missouri system center for excellence for life sciences research may recommend one or more persons to the governor for appointment as the university member of the board; and any additional center for excellence for life sciences research that is created pursuant to section 192.1012 may recommend one or more persons to the governor for appointment as the member of the board from that center's geographic area. Before making any appointment to fill a vacancy in the office of the St. Louis member, the Kansas City member, the university member or a member for an additional center's geographical area, the governor shall take into consideration any such recommendation made pursuant to this subdivision, but the governor shall not be required to follow such recommendations in making an appointment;

(7) No member of the life sciences research board shall serve more than two consecutive full six-year terms on the board;

(8) No member of the life sciences research board shall participate in the making of any decision to provide a grant-in-aid to such member, any person who is related to such member within the fourth degree of consanguinity or affinity, any public entity for which such member serves as an officer, director or other member of the entity's governing body, or any private entity for which such member or such member's spouse is employed, serves as an officer, director or other member of the entity's governing body. The board may, from time to time, issue conflict of interest guidelines and requirements with respect to the administration of the life sciences research program, the actions of its employees and agents, and the implementation of the provisions set forth in this subdivision.

3. The life sciences research board shall utilize the moneys in the life sciences research fund created in section 192.1014 to increase the capacity and infrastructure for quality life sciences research in the state of Missouri and to improve the quantity and quality of life sciences research. Such research shall include: basic research, including the discovery of new knowledge; translational research, including translating knowledge into a usable form; and developmental research and clinical research, including but not limited to health research in human development and aging, cancer, endocrine, cardiovascular, neurological, pulmonary and infectious disease, and nutrition and food safety.

4. The board shall accept and approve applications for grants-in-aid for projects which address the goals stated in subsection 3 of this section. The applications shall be designed by the department of health and shall contain information necessary to determine the potential benefits of grants-in-aid to be awarded, as well as other information deemed necessary for the administration of this program.

5. In determining projects to authorize, the board shall consider those proposals endorsed by a center for excellence, subject to a process of peer review, and shall also consider the potential of any proposal to bring both health and economic benefit to the people of Missouri. At least eighty percent of the funds that are appropriated to the board in each fiscal year shall be distributed to the institutions or organizations whose programs and proposals have been recommended by a center for excellence. Collectively, the institutions or organizations with a single center for excellence shall receive in any one fiscal year no more than fifty percent of the funds appropriated to the board for that fiscal year. Collectively, the institutions or organizations within a single center for excellence shall receive in any one fiscal year no less than ten percent of the funds appropriated to the board for that fiscal year. No single institution or organization shall receive in any consecutive fiscal three-year period more than forty percent of the funds appropriated to the board during such three-year period.

6. The life sciences research board shall have the authority to:

(1) Award research grants;

(2) Enter into contracts relating to research;

(3) Adopt research standards;

(4) Promulgate rules governing the administration of research programs, research grants, research contracts and licensing contracts, and the reimbursement of costs, utilization of intellectual property rights and conflict of interest guidelines, consistent with sections 192.1010 to 192.1035;

(5) Make provision for peer review panels to recommend and review research projects;

(6) Contract for administrative and support services;

(7) Lease or acquire facilities and equipment;

(8) Employ administrative staff; and

(9) Receive, retain, hold, invest, disburse and administer any funds which it receives.

7. The funds appropriated to the board that are not expended by the board in a fiscal year to a center for excellence or for a center for excellence endorsed program pursuant to subsection 5 of this section, if any, hereinafter referred to as "remaining funds", shall be held in reserve by the board or shall be awarded on the basis of peer review panel recommendations to research initiatives proposed by public and private not-for-profit academic, research or health care institutions or organizations, or individuals engaged in competitive research in targeted fields consistent with the provisions of this section. The remaining funds appropriated by the board may be used to increase the capacity of the state of Missouri and public and private not-for-profit institutions or organizations located in this state for quality life sciences research. Research projects receiving funding through or endorsed by a center for excellence for life sciences research shall not be eligible for additional funding from the remaining funds. The remaining funds may be awarded for research projects to such public or private institutions or organizations that are a part of a system or regional consortium constituting a center for excellence if such research projects are not endorsed by such center for excellence.

8. The board shall utilize as much of the funds as reasonably possible for research rather than for administrative expenses. The board shall not in any fiscal year expend more than two percent of the total moneys appropriated to it, the moneys which it has in reserve or the moneys which it has received from other sources for its own administrative expenses; provided that the general assembly, by appropriation from the life sciences research fund, may authorize a limited amount of additional funds to be expended for administrative costs.

9. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in sections 192.1010 to 192.1035 shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. The rulemaking authority granted in such sections and the provisions of chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2001, shall be invalid and void.

192.1012. Centers for excellence for life sciences research shall be established and shall be subject to the following provisions:

(1) A "center for excellence for life sciences research" means a system or regional consortium of public and private not-for-profit academic, research or health care institutions or organizations engaged in competitive research in targeted fields consistent with the strategic purposes of life sciences research as provided in sections 192.1010 to 192.1035;

(2) The life sciences research board shall monitor and promulgate such rules as are necessary to assure quality and accountability in the operations of the centers for excellence for life sciences research;

(3) One St. Louis area center for excellence may be established within the geographical area encompassing the City of St. Louis and St. Louis, St. Charles, Jefferson and Franklin counties. If any part of a municipality is located within any one of these counties and also encompasses a part of another county in this state, the entire area encompassed within the city limits of such municipality shall be a part of the geographical area of the St. Louis area center for excellence;

(4) One Kansas City area center for excellence may be established within the geographical area encompassing Jackson, Clay and Platte counties. If any part of a municipality is located within any one of these counties and also encompasses a part of another county in this state, the entire area encompassed within the city limits of such municipality shall be a part of the geographical area of the Kansas City area center for excellence;

(5) A University of Missouri system center for excellence may be established which shall encompass the institutions and campuses within the University of Missouri system. The board of curators of the University of Missouri may determine which institutions and campuses will participate in the University of Missouri system center for excellence, and the extent and nature of such participation. Institutions and campuses of the University of Missouri system that are within the geographical area of another center for excellence may participate in such center unless prohibited by the board of curators;

(6) The board may establish additional geographical areas within the state within which a center for excellence for life sciences research may be established. Prior to establishing such a geographical area within which a new center may be established, the board shall first find and determine that:

(a) A new center for excellence within such geographical area is needed;

(b) Resources are available for a new center for excellence within such geographical area; and

(c) The establishment of a new center for excellence within such geographical area will not adversely affect any existing center for excellence;

(7) The geographical areas specified herein for a St. Louis area center for excellence and a Kansas City area center for excellence, or a geographical area which is hereinafter established by the board for a center for excellence as herein provided may be expanded by the board to include additional contiguous areas within the state;

(8) Any center for excellence for life sciences research that is established within a geographical area specified in this section or a geographical area established by the board shall be comprised of a consortium of public and private not-for-profit academic, research or health care institutions or organizations which collectively have at least fifteen million dollars in annual research expenditures in the life sciences, including a collective minimum of two million dollars in basic research in life sciences;

(9) Each center for excellence for life sciences research shall appoint a screening committee. The centers, through their screening committees, shall solicit, collect, prioritize and forward to the board proposed research initiatives for consideration for funding by the board. Members of each screening committee shall be generally familiar with the life sciences and current trends and developments, with either technical or scientific expertise in the life sciences, with an understanding of life sciences and with an understanding of the application of the results of life sciences research. No member of a screening committee shall be employed by any public or private entity eligible to receive financial support from the board;

(10) The centers for excellence for life sciences research shall have any and all powers attendant to carrying out the operations which are not contrary to the provisions of this section or any rules, guidelines or decisions adopted by the board.

192.1013. 1. To initially implement the provisions of sections 192.1010 to 192.1035, the governor shall appoint a seven-member "Life Sciences Citizens' Committee" within ninety days of the effective date of sections 192.1010 to 192.1035. The members of the committee shall be generally familiar with the life sciences and current research trends and developments, with either technical or scientific expertise in life sciences and with an understanding of the application of the results of life sciences research.

2. The committee shall:

(1) Receive and review suggestions for the formation and composition, determine the initial composition of, and consider and approve the organizational structure of the centers for excellence for life sciences research within the St. Louis area and the Kansas City area before such centers shall be considered as a center for excellence pursuant to sections 192.1010 to 192.1035;

(2) Review, consider and approve the organization plan and structure of the University of Missouri system center for excellence before such center shall be considered a center for excellence pursuant to sections 192.1010 to 192.1035.

3. After the committee has approved the composition and organizational structure of the three centers for excellence in subsection 2 of this section, the committee shall be immediately disbanded, but in no event shall the committee be disbanded later than one year after its appointment. After the committee's disbandment, the board shall perform the functions of the committee.

4. Before any center for excellence is considered to be a center for excellence for life sciences research pursuant to sections 192.1010 to 192.1035, the center's composition and organizational structure shall be approved by the life sciences citizens' committee if that committee is in existence, and if it is not in existence, such approval shall be obtained from the life sciences research board.

5. The appointment of a person to the life sciences citizens' committee shall not disqualify a person from serving as a member, either contemporaneously or later, on the life sciences research board.

192.1014. 1. There is hereby established in the state treasury the "Life Sciences Research Fund" which shall be used only for life sciences research purposes as provided in sections 192.1010 to 192.1035.

2. Moneys in the life sciences research fund shall be used to strategically enhance, in cooperation with other governmental and not-for-profit private entities, the state's ability to serve the health and welfare of the residents of the state as a center of life sciences research and development by building on the success of research institutions located in the state and enhancing their ability to carry out their respective missions.

3. The management, governance and control of moneys in the life sciences research fund shall be vested with the life sciences research board. All moneys appropriated by the general assembly to the life sciences research fund shall be utilized by the life sciences research board.

4. Moneys in the life sciences research fund received by the board may be used for the purposes authorized in sections 192.1010 to 192.1035, including but not limited to the costs of personnel, supplies, equipment and renovation or construction of physical facilities, provided that in any single fiscal year, no more than ten percent of the funds appropriated shall be used for physical facilities.

5. Notwithstanding the provisions of section 33.080, RSMo, to the contrary, moneys in the fund shall not revert to the credit of general revenue at the end of the biennium.

192.1015. The life sciences research board shall make provision for and secure from the state auditor or outside certified public accounting firm an annual audit of its financial affairs and the funds expended from the life sciences research fund. Such audit shall be performed on a fiscal year basis. The board will make copies of each audit publicly available. Every three years the board with assistance of its staff or independent contractors as determined by the board shall prepare a comprehensive report assessing the work and progress of the life sciences research program. Such assessment report shall analyze the impact of the board's programs and research performed, shall be provided to the governor and members of the general assembly and shall be publicly available.

192.1020. Grant awards made by the life sciences research board shall provide for the reimbursement of costs. Whether reimbursement of particular costs will be allowed depends on the application of a four-part test balancing, which shall include:

(1) The reasonableness of the cost;

(2) The connection to the grant;

(3) The consistency demonstrated in assigning costs to the grant; and

(4) Conformance with the particular terms and conditions of the award.

192.1025. Grant recipients have an obligation to preserve research freedom, to ensure timely disclosure of their research findings to the scientific community, including through publications and presentations at scientific meetings, and to promote utilization, commercialization and public availability of their inventions and other intellectual property developed in the performance of research funded by a grant award. Institutions or organizations receiving grant awards shall retain all right, title and interest, including all intellectual property rights in and to any inventions, ideas, data, improvement, modifications, discoveries, know-how, creations, copyrightable material, trade secrets, methods, processes, discoveries and derivatives, whether patentable or not, which are made in the performance of work under a grant award. The life sciences research board may, however, adopt reasonable regulations to ensure that any such intellectual property rights are utilized reasonably and in a manner which is in the public interest.

192.1035. 1. Notwithstanding the provisions of sections 192.1010 to 192.1025, no grant awards shall be paid, granted or used to subsidize in whole or in part:

(1) Abortion services; or

(2) Destructive human research; or

(3) Development of drugs or chemicals intended to be used to induce an abortion; or

(4) Human cloning.

2. For purposes of this section, the following terms mean:

(1) "Abortion services", performing or inducing, assisting in performing or inducing, or referring a woman for an abortion, except when necessary to save the life of the mother;

(2) "Child", if in utero, the same as an unborn child as defined in section 188.015, RSMo, and if ex utero, a human being at any of the stages of biological development of an unborn child from conception onward;

(3) "Destructive human research", research in which there is the taking or utilization of the organs, tissue or cellular material of a:

(a) Deceased child, unless consent is given in the manner provided in sections 194.210 to 194.290, RSMo, relating to anatomical gifts, and neither parent cause the death of such child or consented to another person causing the death of such child;

(b) Living child, when the intended or likely result of such taking or utilization is to kill or cause serious harm to the health, safety or welfare of such child, or when the purpose is to target such child for possible destruction in the future;

(4) "Facilities and administrative costs", those costs that are incurred for common or joint objectives and therefor cannot be identified readily and specifically with a particular research project or any other institutional activity;

(5) "Grant awards", awards of state funds pursuant to sections 192.1010 to 192.1035;

(6) "Human cloning", the replication of a human being genetically identical to another human being;

(7) "Research project", research specified in the grant award conducted under the auspices of the institution or institutions that applied for and received such grant award pursuant to sections 192.1010 to 192.1035, regardless of whether the research is funded in whole or part by such grant award. Such research shall include basic research, including the discovery of new knowledge; translational research, including translating knowledge into a usable form; and development research and clinical research, including but not limited to health research in human development and aging, cancer, endocrine, cardiovascular, neurological, pulmonary and infectious disease, and nutrition and food safety.

3. No grant awards shall be paid or granted pursuant to sections 192.1010 to 192.1035 to or on behalf of an existing or proposed research project that involves, as part of the project, abortion services, destructive human research, development of drugs or chemicals intended to be used to induce an abortion or human cloning. A research project that receives a grant award shall not share costs with another research project, person or entity not qualified to receive a grant award pursuant to sections 192.1010 to 192.1035; provided, however, the research project that receives a grant award may pay facilities and administrative costs directly allocable to such research project. A research project that receives a grant award shall maintain financial records that demonstrate strict compliance with this section. The audit conducted pursuant to section 192.1015 shall also certify compliance with this section.

4. The grant application shall describe in detail the proposed research project and how the research project shall be conducted in compliance with the requirements of sections 192.1010 to 192.1035. The life sciences research board shall not approve a grant award unless the board makes specific written findings that such research project shall be conducted in compliance with sections 192.1010 to 192.1035. The grant application and the grant award shall be a public record within the meaning of chapter 610, RSMo. The board shall promulgate rules in accordance with chapter 536, RSMo, to implement the provisions of this subsection.

5. Any taxpayer of this state or its political subdivisions shall have standing to bring suit against the department of health, members of the board, and the officers and employees of the department and the board in any circuit court with jurisdiction to enforce the provisions of this section.

6. Sections 192.1010 to 192.1035 shall not be construed to permit or make lawful any conduct that is otherwise unlawful pursuant to the laws of this state.

7. All of the provisions of sections 192.1010 to 192.1025 are severable; provided, however, the provisions of this section are not severable from the provisions of sections 192.1010 to 192.1025. If any provision of sections 192.1010 to 192.1025 is found to be invalid, unenforceable or unconstitutional, the remaining provisions of sections 192.1010 to 192.1025 shall be and remain valid. However, if any provision of this section is found to be invalid, unenforceable or unconstitutional, all of the provisions of sections 192.1010 to 192.1025 shall be invalid and unenforceable.

196.1075. 1. As used in sections 196.1075 to 196.1105, the following terms mean:

(1) "Account", an account within the health care trust fund created in subsection 2 of this section;

(2) "Health care trust fund", the fund created in subsection 2 of this section;

(3) "MSA", the master settlement agreement entered into on November 23, 1998, as amended, in the tobacco case;

(4) "Tobacco case", the case of State of Missouri ex rel. Jeremiah W. (Jay) Nixon, Attorney General v. The American Tobacco Company, Inc., et al., case number 972-1465, filed in the circuit court of the City of St. Louis, state of Missouri;

(5) "Tobacco claim", any claim of the state of Missouri for conduct, acts or omissions arising out of or in any way related, in whole or in part, to the use, sale, distribution, manufacture, development, advertising, marketing or health affects of tobacco products; the exposure to tobacco products; or research, statements or warnings regarding the potential adverse affects of tobacco use, including those asserted in the tobacco case and any claims of the same or similar nature against any person or entity, including but not limited to the defendants in the tobacco case, provided that a claim of the state of Missouri for taxes or licensure fees shall not be considered a tobacco claim;

(6) "Tobacco claim payment", any moneys or proceeds of any moneys, including interest thereon, paid into the state treasury as a result of a tobacco claim, including but not limited to a payment to the state of Missouri pursuant to the MSA or any other tobacco claim settlement, award or judgment. Tobacco claim payment shall include any moneys paid into the state treasury that results in a direct offset or reduction of moneys received into the state treasury pursuant to the MSA or any other tobacco claim settlement, award or judgment.

2. The first one hundred twenty-five million dollars of tobacco claim payments shall be deposited in an endowment fund to be known as the "Fund for Missouri's Future" and shall not be subject to appropriation without a two-thirds vote of the members elected to each house of the general assembly as authorized by a concurrent resolution. The state treasurer shall invest moneys in the fund in the same manner as surplus funds are invested pursuant to section 30.260, RSMo. All earnings resulting from the investment of the moneys in the fund for Missouri's future shall be credited to such fund until the corpus of the fund reaches one billion dollars. A separate and special trust fund to be known as the "Health Care Trust Fund" is hereby created in the state treasury. All tobacco claim payments received by the state after the initial one hundred twenty-five million dollars is deposited in the fund for Missouri's future as provided in this subsection and all earnings resulting from the investment of the moneys in the fund for Missouri's future after the corpus of such fund reaches one billion dollars shall be deposited into the health care trust fund. All moneys received in the health care trust fund shall be allocated by the state treasurer into separate accounts within the health care trust fund in accordance with sections 196.1075 to 196.1105 and shall be subject to appropriation for smoking prevention and cessation, early childhood care and education, prescription drug coverage and health care, and life sciences and medical research. If a transfer of the one hundred twenty-five million dollars into the endowment fund is made prior to the effective date of the act, it shall satisfy the provisions of this subsection and no additional transfers into the endowment fund shall be made unless as further provided by law.

3. No moneys shall be withdrawn from the health care trust fund or any account of such fund except by an appropriation for the purpose and use authorized for such fund and any applicable account. No obligation for payment of moneys so appropriated from the health care trust fund and any applicable account of such fund shall be incurred and paid unless the commissioner of the office of administration certifies it for payment and further certifies that:

(1) The moneys were properly allocated to the health care trust fund and any applicable account by the state treasurer;

(2) The expenditure is within the purpose and use required for the health care trust fund and any applicable account;

(3) The expenditure is within any more specific purpose or use lawfully contained within the appropriation made by the general assembly; and

(4) There is an appropriation of an unencumbered balance within the health care trust fund and any applicable account sufficient to pay it.



At the time of issuance, each certification shall be entered on the general accounting books as an encumbrance on the appropriation.

196.1078. 1. The state treasurer shall allocate tobacco claim payments credited to the health care trust fund as follows:

(1) Sixty percent of such moneys shall be placed into the prescription drug coverage and health care treatment and access account created in subsection 1 of section 196.1081;

(2) Ten percent of such moneys shall be placed into the tobacco prevention, education and cessation account created in section 196.1084;

(3) Ten percent of such moneys shall be placed into the early childhood and youth development care and education account created in section 196.1087;

(4) Twenty percent of such moneys shall be placed into the life sciences and medical research account created in section 196.1090.

2. All moneys in the health care trust fund shall be appropriated by the general assembly in a separate appropriations bill.

196.1081. The "Prescription Drug Coverage and Health Care Treatment and Access Account" is hereby created within the health care trust fund. Appropriations made by the general assembly from the health care treatment and access account, shall be used and expended solely for prescription drug coverage and health care.

196.1084. The "Tobacco Prevention, Education and Cessation Account" is hereby created within the health care trust fund. Moneys in the account shall be used solely for tobacco prevention, education and/or cessation, including but not limited to programs to prevent tobacco usage by minors, to prevent or reduce tobacco usage generally, and to prevent tobacco addiction.

196.1087. The "Early Childhood and Youth Development Care and Education Account" is hereby created within the health care trust fund. Moneys in the account shall be used solely for early childhood and youth development care and/or education, including but not limited to community grants. Appropriations made by the general assembly from the account shall be used and expended solely for the purpose provided in this section.

196.1090. The "Life Sciences and Medical Research Account" is hereby created within the health care trust fund and shall be used and expended solely for life sciences and medical research purposes.

196.1093. At least ten percent of moneys appropriated from the accounts pursuant to sections 196.1081, 196,1084, 196.1087 and 196.1090, other than moneys used for prescription drug coverage, shall be used for programs and grants that benefit minorities, women and at-risk children and communities through community based not-for-profit organizations.

196.1096. The commissioner of administration shall establish such books of account as are necessary to account for the proceeds of any tobacco claim payments made to the state of Missouri and interest thereon and shall make or refuse to make such certifications as are necessary to ensure that these funds are allocated, used and expended only for the purposes and in the proportions set forth in sections 196.1075 to 196.1105.

196.1099. Moneys which are appropriated from the health care trust fund for the purposes provided in sections 196.1075 to 196.1105 shall constitute additional amounts over and above any moneys that are appropriated for such purposes from general revenue as of July 1, 2000. The state shall not reduce the level of funding that was in effect on July 1, 2000, for such a purpose from general revenue sources because of the appropriation of moneys for such purpose from the health care trust fund. This section shall not apply to amounts appropriated or expended for the purposes of administering section 135.095, RSMo.

196.1102. Any moneys received by the state as a result of the tobacco settlement agreement together with interest and earnings thereon shall not be classified as "total state revenues" as defined in sections 17 and 18 of article X of the Missouri Constitution and the expenditure of such moneys shall not be an "expense of state government" pursuant to section 20 of article X of the Missouri Constitution.

196.1105. Any funds received by the state as a result of any legal settlement or award which is not by constitution or statute dedicated to a specific fund or program shall be subject to appropriation by the general assembly for programs related to health care and education.

Section 1. Notwithstanding sections 135.403 and 135.405, RSMo, no more than one million dollars of the total amount of Missouri small business tax credits available for qualified investments in Missouri small businesses shall be used and made available for qualified investments in Missouri small businesses, which are enterprises which consist of one or more establishments assigned a SIC code of 8731 and the results of the activities of which are designed to be used by establishments assigned a SIC code of 2834, engaged solely in pharmaceutical research and development; but in the event this one million dollar set aside is not used in its entirety by September first of any year, the balance of the credit may be used by other entities qualifying for tax credits under the capital tax credit program as defined in sections 135.400 to 135.430, RSMo. The limitations of subsection 2 of section 135.403, RSMo, and section 135.405, RSMo, upon the amounts of qualified investments, the aggregate of tax credits authorized and the maximum tax credits which may be evidenced by certificates of tax credit issued or owned by a single taxpayer shall not apply to amounts allocated by this section. The director shall give preference in issuing certificates of tax credit to applicants under this section.

Section B. Sections 196.1075, 196.1078, 196.1081, 196.1084, 196.1087, 196.1090, 196.1093, 196.1096, 196.1099, 196.1102 and 196.1105 of section A of this act is hereby submitted to the qualified voters of this state for approval or rejection at a special election which is hereby ordered and which shall be held and conducted on the Tuesday immediately following the first Monday in November, 2001, pursuant to the laws and constitutional provisions of this state applicable to general elections and the submission of referendum measures by initiative petition, and it shall become effective on July 1, 2002, after approved by a majority of the votes cast thereon at such election and not otherwise.

Section C. The official summary statement for the proposed referendum measure of this act shall read as follows:

"Authorizes deposit of tobacco settlement moneys into funds for use in smoking prevention, health care and prescription drug coverage for seniors, life sciences and medical research, early childhood and youth development care and education, and an endowment fund which would not be subject to the constitutional limit on state spending. Defeat of the referendum measure would not create the funds and the moneys shall be credited to general revenue for appropriation by the general assembly.



Missouri House of Representatives