HCS HB 1671 -- LIFE SCIENCES RESEARCH

SPONSOR:  Wright (Hanaway)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 9 to 0.

Beginning in Fiscal Year 2007, the president of any public
university in Missouri may present to the Life Sciences Research
Board on behalf of any campus within its system:

(1)  A commitment from any budgetary source other than the state
to pay to the university as an endowment a minimum of $2 million
or $100,000 a year for a minimum of 20 years toward the funding
of an academic position within the health and life sciences
fields to be designated as an endowed life sciences research
chair; and

(2)  A commitment from the university, including any of its
separate campuses, to pay a minimum of $100,000 a year for the
endowed chair position for a minimum of 20 years.

After the funding commitments for the endowed chair position have
been made, the board is required to review the commitments and
upon approval pay the university from the Life Sciences Research
Trust Fund $100,000 a year for 20 years.  The board is also
required to commit from the fund a one-time disbursement of
research and programmatic start-up moneys of $500,000 over a two-
year period, beginning with the hiring for the endowed chair
position.  The one-time disbursement is required to include a
$100,000 payment from the fund.

The funding commitments must be confirmed by a notarized letter
of intent and the establishment of an escrow account containing
at least 10% of the total commitment of moneys by the non-state
entity or the university.  Matching moneys for the endowed chair
position will not exceed $10 million in any fiscal year.  If the
commitment of moneys is not fulfilled by either the non-state
entity or the university, the board's commitment of moneys will
terminate.

When a Missouri public university receives the funding
commitments from budgetary sources other than the state or if the
funding commitments are made prior to the appointment of any
member to the board, the president of the university must
document the date and time of the receipt of the funding
commitments.  The board is also required to provide its matching
moneys for the endowed chair position in the order in which
funding commitments are received.

Any Missouri public university or other qualified entity that has
a formal contract with a public university may hold the matching
moneys provided by the board for the endowed chair position and
any life sciences research conducted under the direction of the
endowed chair.  A university or entity is prohibited from
spending, loaning, or encumbering the matching moneys for any
other purpose.

Within 90 days of receipt of the funding commitments for the
endowed chair and annually thereafter, any public or private
entity may submit a proposal for life sciences research to be
conducted.  The funding commitments may be made in conjunction
with the entities desiring to submit proposals.  The board is
required to establish criteria for selecting proposals
competitively.

Any moneys withdrawn from the Life Sciences Trust Fund but not
expended according to the substitute are to be distributed in
accordance with the provisions of Sections 196.1100 - 196.1130,
RSMo, pertaining to life sciences research.  Financial resources
from any source will be treated as though they had been
appropriated to the research board and must be used in accordance
with Section 196.1127, which limits how public funds may be used.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that the state needs a tool to
recruit scientists to public universities.  Endowed chairs are
very cost effective, returning many times the cost of the
investment.  The life sciences are a major focus of economic
development for Missouri.

Testifying for the bill were Speaker Hanaway; University of
Missouri System; University of Missouri, Kansas City; Stowers
Medical Institute; and Kansas City Southern.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am