HOUSE BILL NO. 368
INTRODUCED BY D. HEDGES
AN ACT CLARIFYING THAT THE RESEARCH AND COMMERCIALIZATION EXPENDABLE TRUST MAY BE USED FOR GRANTS FOR PRODUCTION AGRICULTURE RESEARCH AND COMMERCIALIZATION PROJECTS; AMENDING SECTIONS 90-3-1002 AND 90-3-1003, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 90-3-1002, MCA, is amended to read:
"90-3-1002. Research and commercialization expendable trust. (1) There is a research and commercialization expendable trust fund within the state treasury. The purpose of the fund is to establish a permanent source of funding for research and commercialization projects to be conducted at research and commercialization centers in the state.
(2) The research and commercialization expendable trust fund must be invested by the board of investments. Earnings
on the expendable trust fund must be deposited in the fund for distribution pursuant to 90-3-1003(3), (4), and (5) (7)."
Section 2. Section 90-3-1003, MCA, is amended to read:
"90-3-1003. Research and commercialization expendable trust -- use. (1) The research and commercialization expendable trust fund provided for in 90-3-1002 is statutorily appropriated, as provided in 17-7-502, to the board of research and commercialization technology, provided for in 2-15-1819, for the purposes provided in this section.
(2) The establishment of the expendable trust fund in 90-3-1002 is intended to enhance the economic growth opportunities for Montana and constitute a public purpose.
(3) The expendable trust fund may be used only for:
(a) loans that are to be used for research and commercialization projects to be conducted at research and commercialization centers located in Montana;
(b) grants that are to be used for production agriculture research and commercialization projects to be conducted at
research and commercialization centers located in Montana; or for
(c) matching funds for grants from nonstate sources that are to be used for research and commercialization projects to be conducted at research and commercialization centers located in Montana.
(4) At least 20% of the investments made trust funds approved for research and commercialization projects must be
directed toward projects that enhance production agriculture. An amount allocated for matching funds must be matched by
at least a 1-to-1 ratio.
(5) An applicant for a grant shall provide matching funds from nonstate sources equal to 25% of total project costs. The requirement to provide matching funds is a qualifier, but not a criterion, for approval of a grant.
(4)(6) The board shall establish policies, procedures, and criteria that achieve the objectives in their its research and
commercialization strategic plan for the awarding of grants and loans. The criteria must include:
(a) the project's potential to diversify or add value to a traditional basic industry of the state's economy;
(b) whether the project shows promise for enhancing technology-based sectors of Montana's economy or promise for commercial development of discoveries;
(c) whether the project employs or otherwise takes advantage of existing research and commercialization strengths within the state's public university and private research establishment;
(d) whether the project involves a realistic and achievable research project design;
(e) whether the project develops or employs an innovative technology;
(f) verification that the project activity is located within the state;
(g) whether the project's research team possesses sufficient expertise in the appropriate technology area to complete the research objective of the project;
(h) verification that the project was awarded based on its scientific merits, following review by a recognized federal agency, philanthropic foundation, or other private funding source; and
(i) whether the project includes research opportunities for students.
(5)(7) The board shall direct the state treasurer to distribute funds for approved projects. Unallocated interest and
earnings from the expendable trust fund must be retained in the fund. Repayments of loans and any agreements authorizing
the board to take a financial right to licensing or royalty fees paid in connection with the transfer of technology from a
research and commercialization center to another nonstate organization or ownership of corporate stock in a private sector
organization must be deposited in the fund.
(6)(8) The board shall refer grant applications to external peer review groups. The board shall compile a list of persons
willing to serve on peer review groups for purposes of this section. The peer review group shall review the application and
make a recommendation to the board as to whether the application for a grant should be approved. The board shall review
the recommendation of the peer review group and either approve or deny a grant application.
(7)(9) The board shall identify whether a grant or loan is to be used for basic research, applied research, or some
combination of both. For the purposes of this section, "applied research" means research that is conducted to attain a
specific benefit or solve a practical problem and "basic research" means research that is conducted to uncover the basic
function or mechanism of a scientific question."
Section 3. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
Section 4. Effective date. [This act] is effective on passage and approval.
- END -
Latest Version of HB 368 (HB0368.ENR)
Processed for the Web on April 12, 2001 (6:40PM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.
Status of this Bill | 2001 Legislature | Leg. Branch Home
All versions of this bill (PDF Format)
Authorized print version w/line numbers (PDF format)
(406)444-3064