March 24, 2005, Introduced by Senators GARCIA and HARDIMAN and referred to the Committee on Commerce and Labor.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
(MCL 125.2001 to 125.2093) by adding chapter 7A.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
CHAPTER 7A
Sec. 78. (1) The biosciences research and commercialization
center described in section 381 of 2003 PA 173 is created in the
fund and shall be located at western Michigan university in
Kalamazoo. The center shall coordinate research initiatives and
provide an organizational home for scientists as they work to
establish new businesses, obtain extramural funding to support
research programs, and develop a center of excellence to promote
life sciences research and commercialization in this state. The
center shall also undertake collaborative efforts with private
sector entities to develop novel pharmaceutical products in
specialized therapeutic areas. The center shall provide an
organizational structure for research scientists and engineers, an
entity to receive and license intellectual property, and a vehicle
for entrepreneurial activities required for commercialization. The
mission of the center will be to discover new knowledge, to
generate and acquire intellectual property, to commercialize
intellectual property, and to enrich the intellectual culture of
the community. In order to receive funding, the center shall do all
of the following:
(a) Submit a proposal and detailed business plan to the
steering committee that shows the center's ability to implement the
activities established in this subsection. The proposal shall be
reviewed by an independent peer review committee and approved by
the steering committee. The proposal shall include all of the
following:
(i) A business plan for the operations of the center, including
5-year budget forecasts.
(ii) A plan for management oversight of the center.
(iii) Intellectual property commercialization plans.
(iv) A marketing plan.
(v) A plan for private sector collaboration.
(b) Demonstrate the ability to leverage significant additional
public and private investment and provide a minimum of 25% matching
funds.
(c) Ensure that 10% of any royalties or return on investment
directly related to research or commercialization activities
developed by the center shall be provided to the commercial
development fund until the initial $10,000,000.00 appropriation
made in 2003 PA 173 is repaid. Once the initial $10,000,000.00
appropriation is repaid, 3% of any royalties or return on
investment directly related to research or commercialization
activities developed by the center shall be provided to the
commercial development fund.
(d) Demonstrate a commitment to enter into collaborative
research projects with universities or private research facilities
in this state.
(e) Establish a separate governing board of directors that
includes the following members:
(i) Chief executive officer of the Michigan economic
development corporation.
(ii) Director of the Van Andel institute.
(iii) Director of the department of labor and economic growth.
(iv) One private sector member of the life sciences steering
committee.
(v) Other members from the public and private sectors.
(f) Establish and operate the Michigan life science pipeline.
The Michigan life science pipeline shall do all of the following:
(i) Recruit Michigan based companies involved in life science
research and commercialization to affiliate themselves with the
pipeline.
(ii) Market the services of members of the pipeline to develop
business for members of the pipeline.
(iii) Otherwise assist members of the pipeline to develop life
science research and commercialization in this state.
(iv) Provide that members of the pipeline provide services to
qualified businesses under the life science investment authority
act at prices not to exceed the industry average for those services
as determined by the pipeline.
(v) Report to the life science investment authority created
under the life science investment authority act those individuals
who are members of the pipeline and which services are and are not
available from members of the pipeline.
(2) From the funds appropriated to the center, any unexpended
or unencumbered balance shall be deposited into a work project
account and subject to the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594.
(3) The Michigan economic development corporation shall
provide a report to the senate majority leader, speaker of the
house of representatives, chairs of the appropriations committees
and members of the related subcommittees, the senate and house
fiscal agencies, and the state budget director by February 1 in
each year on the status of the center, the status of the
appropriation for the center, and a listing of the activities of
the center that have been paid for with any allocation from the
appropriation.
(4) The center shall provide progress reports not later than
February 1 and July 1 to the Michigan economic development
corporation for the duration of the award to the center.
(5) The Michigan economic development corporation and steering
committee shall have access at all reasonable times to the records
of the center in order to monitor the research projects and prepare
progress reports.
(6) If the center fails to provide the Michigan economic
development corporation with the information or access required
under this section, the center is liable to this state for a
penalty of not less than $500.00 per day to commence within 10 days
after the February 1 or July 1 reporting date and not less than
$1,000.00 per day to commence 20 days after the February 1 or July
1 reporting date. A penalty under this subsection may be withheld
from future appropriations.
(7) If the center fails to return royalties or return on
investment to the commercial development fund within 5 years, a
plan shall be developed between the center and the Michigan
economic development corporation to provide repayment of
$9,500,000.00 of the $10,000,000.00 initial appropriation provided
in 2003 PA 173.
(8) As used in this section:
(a) "Center" means the biosciences research and
commercialization center created in this section.
(b) "Commercial development fund" means the commercial
development fund originally created in section 418 of 1999 PA 120.
(c) "Pipeline" means the Michigan life science pipeline
established in this section.
(d) "Steering committee" means the life sciences and
technology tri-corridor steering committee originally created in
section 410 of 2003 PA 169.