HB 2008-4_ Filed 04/09/2003, 17:14 Clark

SENATE MOTION


MR. PRESIDENT:

    I move
that Engrossed House Bill 2008 be amended to read as follows:

SOURCE: Page 5, line 38; (03)MO200833.5. -->     Page 5, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: IC 4-4-5.1-1.5; (03)MO200833.2. -->     "SECTION 2. IC 4-4-5.1-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1.5. (a) As used in this chapter, "advanced manufacturing" includes but is not limited to manufacturing in the automotive, electronics, aerospace, robotics, and engineering design technology industry sectors.
    (b) As used in this chapter, "information technology" includes but is not limited to informatics, certified network administration, software development, and fiber optics.
    (c) As used in this chapter, "life sciences" includes but is not limited to orthopedics, medical devices, biomedical research and development, pharmaceutical manufacturing, agribusiness, nanotechnology, and molecular manufacturing.

SOURCE: IC 4-4-5.1-3; (03)MO200833.3. -->     SECTION 3. IC 4-4-5.1-3, AS ADDED BY P.L.190-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) The Indiana twenty-first century research and technology fund is established to provide grants or loans to support proposals for economic development in one (1) or more of the following areas:
        (1) To increase the capacity of Indiana institutions of higher education, Indiana businesses, and Indiana nonprofit corporations and organizations to compete successfully for federal or private research and development funding.
        (2) To stimulate the transfer of research and technology into marketable products.
        (3) To assist with diversifying Indiana's economy by focusing investment in biomedical research and biotechnology, life sciences, advanced manufacturing, information technology, and other high technology industry clusters requiring high skill,

high wage employees.
        (4) To encourage an environment of innovation and cooperation among universities and businesses to promote research activity.
    (b) The fund shall be administered by the budget agency. The fund consists of:
         (1) appropriations from the general assembly;
        (2) money transferred from the Indiana tobacco master settlement agreement fund under IC 4-12-1-14.3(i);
and
         (3) gifts and grants to the fund.
The budget agency shall review each recommendation. The budget agency, after review by the budget committee, may approve, deny, or modify grants and loans recommended by the board. Money in the fund may not be used to provide a recurring source of revenue for the normal operating expenditures of any project.
    (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
    (d) The money in the fund at the end of a state fiscal year does not revert to the state general fund but remains in the fund to be used exclusively for the purposes of this chapter.

SOURCE: IC 4-4-5.1-5; (03)MO200833.4. -->     SECTION 4. IC 4-4-5.1-5, AS ADDED BY P.L.190-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) The board has the following powers:
        (1) To accept, analyze, and approve applications under this chapter.
        (2) To contract with experts for advice and counsel.
        (3) To employ staff to assist in carrying out this chapter, including providing assistance to applicants who wish to apply for a grant or loan from the fund, analyzing proposals, working with experts engaged by the board, and preparing reports and recommendations for the board.
        (4) To approve and recommend applications for grants or loans from the fund to the budget committee and budget agency.
    (b) The board shall give priority to applications for grants or loans from the fund that:
        (1) have the greatest economic development potential; and
        (2) require the lowest ratio of money from the fund compared with the combined financial commitments of the applicant and those cooperating on the project.
In addition, the board shall give further priority to applications that promote research and commercialization in the life sciences.
    (c) The board shall make final funding determinations for applications for grants or loans from the fund that will be submitted to the budget agency for review and approval. In making a determination on a proposal intended to obtain federal or private research funding, the board shall be advised by a peer review panel and shall consider the following factors in evaluating the proposal:
        (1) The scientific merit of the proposal.
        (2) The predicted future success of federal or private funding for the proposal.
        (3) The ability of the researcher to attract merit based scientific funding of research.
        (4) The extent to which the proposal evidences interdisciplinary or inter-institutional collaboration among two (2) or more Indiana institutions of higher education or private sector partners, as well as cost sharing and partnership support from the business community.
    (d) The peer review panel shall be chosen by and report to the board. In determining the composition and duties of a peer review panel, the board shall consider the National Institutes of Health and the National Science Foundation peer review processes as models. The members of the panel must have extensive experience in federal research funding. A panel member may not have a relationship with any private entity or academic institution in Indiana that would constitute a conflict of interest for the panel member.
    (e) In making a determination on any other application for a grant or loan from the fund involving a proposal to transfer research results and technologies into marketable products or commercial ventures, the board shall consult with experts as necessary to analyze the likelihood of success of the proposal and the relative merit of the proposal.
SOURCE: IC 4-4-5.1-6; (03)MO200833.5. -->     SECTION 5. IC 4-4-5.1-6, AS AMENDED BY P.L.291-2001, SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) The Indiana twenty-first century research and technology fund board is established. The board consists of the following:
        (1) The lieutenant governor, who shall serve as chairperson of the board.
        (2) Two (2) representatives from separate Indiana public research institutions of higher education to be appointed by the governor.
        (3) A representative of an Indiana private research institution of higher education to be appointed by the governor.
        (4) A representative from a high technology business to be appointed by the governor.
        (5) A representative from a business with high research and development expenditures in Indiana in the life sciences to be appointed by the governor.
        (6) A representative from the venture or growth capital industry to be appointed by the governor.
        (7) One (1) individual who has expertise in economic development to be appointed by the governor.
        (8) One (1) individual who:
             (A) has expertise in academic research, technology transfer, or collaborative relationships between the public and private

sectors that have resulted in the commercialization of research in the life sciences; or
            (B) has established or expanded a commercial enterprise based on the commercialization of research in the life sciences;

        to be appointed by the governor.
        (9) A representative from a high technology business to be appointed by the speaker of the house of representatives.
        (10) A representative from a high technology business to be appointed by the president pro tempore of the senate.
A board member appointed by the governor, the speaker of the house of representatives, or the president pro tempore of the senate serves a term of two (2) years.
    (b) A board member with a conflict of interest with respect to an application for a grant or loan from the fund shall abstain from any discussion, consideration, or vote on the application.
    (c) When making appointments under subsection (a), the governor shall consider the geographic areas of the state represented on the board.".

SOURCE: Page 16, line 6; (03)MO200833.16. -->     Page 16, between lines 6 and 7, begin a new paragraph and insert:
SOURCE: IC 4-12-1-14.3; (03)MO200833.11. -->     "SECTION 11. IC 4-12-1-14.3, AS AMENDED BY P.L.291-2001, SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14.3. (a) As used in this section, "master settlement agreement" has the meaning set forth in IC 24-3-3-6.
    (b) There is hereby created the Indiana tobacco master settlement agreement fund for the purpose of depositing and distributing money received under the master settlement agreement. The fund consists of:
        (1) all money received by the state under the master settlement agreement;
        (2) appropriations made to the fund by the general assembly; and
        (3) grants, gifts, and donations intended for deposit in the fund.
    (c) Money may be expended, transferred, or distributed from the fund during a state fiscal year only in amounts permitted by subsections (d) through (e), and only if the expenditures, transfers, or distributions are specifically authorized by another statute.
    (d) The maximum amount of expenditures, transfers, or distributions that may be made from the fund during the state fiscal year beginning July 1, 2000, is determined under STEP THREE of the following formula:
        STEP ONE: Determine the sum of money received or to be received by the state under the master settlement agreement before July 1, 2001.
        STEP TWO: Subtract from the STEP ONE sum the amount appropriated by P.L.273-1999, SECTION 8, to the children's health insurance program from funds accruing to the state from the tobacco settlement for the state fiscal years beginning July 1,

1999, and July 1, 2000.
        STEP THREE: Multiply the STEP TWO remainder by fifty percent (50%).
    (e) The maximum amount of expenditures, transfers, or distributions that may be made from the fund during the state fiscal year beginning July 1, 2001, and each state fiscal year after that is determined under STEP THREE of the following formula:
        STEP ONE: Determine the amount of money received or to be received by the state under the master settlement agreement during that state fiscal year.
        STEP TWO: Multiply the STEP ONE amount by sixty percent (60%).
        STEP THREE: Add to the STEP TWO product any amounts that were available for expenditure, transfer, or distribution under this subsection or subsection (d) during preceding state fiscal years but that were not expended, transferred, or distributed.
    (f) The following amounts shall be retained in the fund and may not be expended, transferred, or otherwise distributed from the fund:
        (1) All of the money that is received by the state under the master settlement agreement and remains in the fund after the expenditures, transfers, or distributions permitted under subsections (c) through (e).
        (2) All interest that accrues from investment of money in the fund, unless specifically appropriated by the general assembly. Interest that is appropriated from the fund by the general assembly may not be considered in determining the maximum amount of expenditures, transfers, or distributions under subsection (e).
    (g) The fund shall be administered by the budget agency. Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as money is invested by the public employees retirement fund under IC 5-10.3-5. The treasurer of state may contract with investment management professionals, investment advisors, and legal counsel to assist in the investment of the fund and may pay the state expenses incurred under those contracts from the fund. Interest that accrues from these investments shall be deposited in the fund. Money in the fund at the end of the state fiscal year does not revert to the state general fund.
    (h) The state general fund is not liable for payment of a shortfall in expenditures, transfers, or distributions from the Indiana tobacco master settlement agreement fund or any other fund due to a delay, reduction, or cancellation of payments scheduled to be received by the state under the master settlement agreement. If such a shortfall occurs in any state fiscal year, the budget agency shall make the full transfer to the regional health facilities construction account and then reduce all remaining expenditures, transfers, and distributions affected by the

shortfall.
     (i) For each state fiscal year beginning after June 30, 2005, and ending before July 1, 2013, the budget agency shall annually transfer an amount equal to twenty-five percent (25%) of the amount determined under subsection (e) from the fund to the Indiana twenty-first century research and technology fund established under IC 4-4-5.1 to be used for the purposes of the Indiana twenty-first century research and technology fund. The amount required to be transferred under this subsection is annually appropriated for this purpose.".

SOURCE: Page 65, line 15; (03)MO200833.65. -->     Page 65, between lines 15 and 16, begin a new paragraph and insert:
SOURCE: ; (03)MO200833.73. -->     "SECTION 73. [EFFECTIVE JULY 1, 2003] (a) The following definitions apply throughout this SECTION:
        (1) "FY 2003-2004" means the period beginning July 1, 2003, and ending June 30, 2004.
        (2) "FY 2004-2005" means the period beginning July 1, 2004, and ending June 30, 2005.
    (b) Notwithstanding IC 4-12-1-14.3, there is appropriated to the budget agency the following sums from the money deposited in the Indiana tobacco master settlement agreement fund that would otherwise be unavailable for expenditure under IC 4-12-1-14.3(f) for the purposes of the Indiana twenty-first century research and technology fund:
        (1) For FY 2003-2004, twenty million dollars ($20,000,000).
        (2) For FY 2004-2005, twenty-five million dollars ($25,000,000).
    (c) This SECTION expires January 1, 2006.
".
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 2008 as printed April 8, 2003.)

________________________________________

Senator CLARK


MO200833/DI 92     2003