2002-12 RE: Tobacco Settlement
Version 4B
| Submitted by: |
Alex Bartlett
235 East High Street
PO Box 1251
Jefferson City, MO 65102 |
Mr. Bartlett can be reached by calling (573) 635-9118.
Petition sample form approved for circulation on December 26, 2000.
Official ballot title certified by Secretary of State on January 5, 2001.
OFFICIAL BALLOT TITLE AS CERTIFIED BY SECRETARY OF STATE
Shall the Constitution be amended to require that all tobacco litigation settlement payments to the State be placed into a state treasury trust fund to be used exclusively for health care treatment and access (including prescription drug cost assistance), tobacco use prevention initiatives, early childhood care and education initiatives and life sciences research; to create a Citizens Advisory Committee and a Life Sciences Research Board to initiate and oversee life sciences research; and to exclude tobacco settlement funds from revenue and expenditure limits in Article X, Sections 17 and 18 of the Constitution?
All tobacco claim payments must be used only for specified purposes. The payments could exceed $200 million annually and would be excluded from the Missouri Constitution Article X, Sections 17, 18 (the "Hancock Amendment"). Payments spent prior to adoption of the amendment that are contrary to the specified purposes must be replaced from general revenue.
FULL TEXT OF PROPOSITION AS SUBMITTED BY PETITIONER
VERSION 4B
THE PROPOSED AMENDMENT
Be it resolved by the people of the State of Missouri that the Constitution be amended:
One new section is adopted by adding one new section to be known as Section 38(d) of Article III to read as follows:
Section 38(d). 1. Inasmuch as Tobacco Claims by the state of Missouri arising by reason of the manufacture, sale or promotion of tobacco products are related to the results of tobacco usage and addiction, including health, human development and life sciences issues and problems, the people of the state of Missouri by adoption of this section 38(d) do hereby determine that all Tobacco Claim Payments received by the state of Missouri shall be placed into a Tobacco Trust Fund within the state treasury. All Tobacco Claim Payments shall be held in trust in the Tobacco Trust Fund which is hereinafter created within the state treasury and shall be allocated by the state treasurer into separate Accounts and Subaccounts within the Tobacco Trust Fund to be available for appropriation by the general assembly for health care treatment and access, for prevention of tobacco usage and addiction, for early childhood care and education and for life sciences research uses and purposes, all to be in accordance with the provisions hereinafter set forth in this section 38(d).
2. As used in this section 38(d) of Article III -
(1) "Account" means an account within the Tobacco Trust Fund which is created by this section 38(d).
(2) "Early Childhood Care and Education Account" means the Account within the Tobacco Trust Fund in the state treasury which is created by subsection 8 of this section 38(d).
(3) "Health Care Treatment and Access Account" means the Account within the Tobacco Trust Fund in the state treasury which is created by subsection 6 of this section 38(d).
(4) "Life Sciences Research Account" means the Account within the Tobacco Trust Fund in the state treasury which is created by subdivision (1) of subsection 9 of this section 38(d).
(5) "MSA" means the Master Settlement Agreement, as amended from time to time, in the Tobacco Case.
(6) "Subaccount" means any subaccount within an Account which is created by this section 38(d).
(7) "Tobacco Case" means 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.
(8) "Tobacco Claim" means any claim of the state of Missouri for conduct, acts or omissions arising out of or in a way related, in whole or in part, to (a) the use, sale, distribution, manufacture, development, advertising, marketing or health effects of tobacco products, (b) the exposure to tobacco products, or (c) research, statements, or warnings regarding the potential adverse effects of tobacco use, including those asserted in the Tobacco Case and also 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, however, that a claim of the state of Missouri for taxes or licensure fees shall not be considered as a Tobacco Claim.
(9) "Tobacco Claim Payment" means any monies or funds or the proceeds of any monies or funds, 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 pursuant to any other Tobacco Claim settlement, award or judgment. The term Tobacco Claim Payment shall also include any monies paid into the state treasury which results in a direct offset or reduction of monies received into the state treasury pursuant to the MSA or pursuant to any other Tobacco Claim settlement, award or judgment.
(10) "Tobacco Prevention, Education and Cessation Account" means the Account within the Tobacco Trust Fund in the state treasury which is created by subsection 7 of this section 38(d).
(11) "Tobacco Trust Fund" means the trust fund created within the state treasury pursuant to subsection 3 of this section 38(d).
3. The "Tobacco Trust Fund" is hereby created within the state treasury. All Tobacco Claim Payments, including but not limited to those made pursuant to the MSA in the Tobacco Case, which are received in the state treasury shall be credited by the state treasurer to the Tobacco Trust Fund. Monies which come into the Tobacco Trust Fund shall be allocated by the state treasurer into separate Accounts and Subaccounts within the Tobacco Trust Fund as provided in subsections 5, 6, 7, 8, and 9 of this subsection 38(d). Interest earned upon monies in each Account and Subaccount shall be added to and become a part of each such Account and Subaccount. All Tobacco Claim Payments, including but not limited to those which are received by the Tobacco Trust Fund by reason of the MSA in the Tobacco Case, shall be considered new revenues created and provided for by this section.
4. No money shall be withdrawn from the Tobacco Trust Fund or any Account or Subaccount within the Tobacco Trust Fund except pursuant to an appropriation made by law for the purpose and use authorized for the Tobacco Trust Fund and any applicable Account or Subaccount. No obligation for payment of money so appropriated from the Tobacco Trust Fund and any applicable Account or Subaccount within the Tobacco Trust Fund shall be incurred and paid unless the commissioner of administration certifies it for payment and further certifies that the monies were properly allocated to the Tobacco Trust Fund and any applicable Account or Subaccount by the state treasurer, that the expenditure is within the purpose and use required for the Tobacco Trust Fund and any applicable Account or Subaccount, that the expenditure is within any more specific purpose or use lawfully contained within the appropriation made by the general assembly and that there is an appropriation of an unencumbered balance within the Tobacco Trust Fund and any applicable Account or Subaccount sufficient to pay it. At the time of issuance each such certification shall be entered on the general accounting books as an encumbrance on the appropriation. Notwithstanding the provisions of Section 28 of Article IV, an appropriation from the Tobacco Trust Fund and any applicable Account or Subaccount may be made by the general assembly for a period which is longer than a current fiscal period and an appropriation from the Tobacco Trust Fund and any applicable Account or Subaccount shall not expire unless it is subsequently repealed by law.
5.
(1) The proceeds of the first three initial payments pursuant to section IX(b) of the MSA reached in the Tobacco Case and the first two annual payments pursuant to section IX(c)(1) of the MSA reached in the Tobacco Case shall be placed in the Tobacco Trust Fund as soon as such Tobacco Trust Fund is created by this section 38(d) and thereafter as such payments are received in the state treasury. As the aforementioned initial payments and annual payments are received in the Tobacco Trust Fund in the state treasury the state treasurer shall allocate and place -
(a) Fifty-six percent of such funds into the Health Care Treatment and Access Account. The state treasurer shall further allocate and place the funds into Subaccounts created by subdivision (2) of subsection 6 of this section 38(d) in the following manner:
a. Of the first sixty million dollars in funds received, eight and one-third percent of such funds shall be allocated and placed into the Subaccount created by paragraph (a) of said subdivision (2).
b. Of the first sixty million dollars in funds received, eleven and two-thirds percent of such funds shall be allocated and placed into the Subaccount created by paragraph (b) of said subdivision (2).
c. Of the first sixty million dollars in funds received, fifteen percent of such funds shall be allocated and placed into the Subaccount created by paragraph (c) of said subdivision (2).
d. Of the first sixty million dollars in funds received, fifteen percent of such funds shall be allocated and placed into the Subaccount created by paragraph (d) of said subdivision (2).
e. Of the first sixty million dollars in funds received, fifty percent of such funds shall be allocated and placed into the Subaccount created by paragraph (e) of said subdivision (2).
f. Any funds in excess of sixty million dollars which are received shall be placed into the Subaccount created by paragraph (f) of said subdivision (2).
(b) Twenty-five percent of such funds into the Tobacco Prevention, Education and Cessation Account created by subsection 7 of this section 38(d).
(c) Nine and one-half percent of such funds into the Early Childhood Care and Education Account created by subsection 8 of this section 38(d).
(d) Nine and one-half percent of such funds into the Life Sciences Research Account created by subsection 9 of this section 38(d).
(2) All Tobacco Claim Payments received in the state treasury other than those specified in subdivision (1) of this subsection 5 shall be placed in the Tobacco Trust Fund as soon as such Tobacco Trust Fund is created by this section 38(d) and thereafter as such Tobacco Claim Payments are received. As such Tobacco Claim Payments are received in the Tobacco Trust Fund in the state treasury, the state treasurer shall allocate and place -
(a) Sixty percent of such funds into the Health Care Treatment and Access Account and then into a Subaccount created by subdivision (2) of subsection 6 of this section 38(d). The state treasurer shall further allocate and place the funds into Subaccounts created by subdivision (2) of subsection 6 of this section 38(d) in the following manner:
a. Seventeen percent of such funds shall be allocated and placed into the Subaccount created by paragraph (a) of said subdivision (2).
b. Forty-two percent of such funds shall be allocated and placed into the Subaccount created by paragraph (b) of said subdivision (2).
c. Twelve percent of such funds shall be allocated and placed into the Subaccount created by paragraph (c) of said subdivision (2).
d. Eighteen percent of such funds, of which (i) the first fifteen million two hundred thousand dollars of such funds received during any fiscal year of the state shall be placed into the Subaccount created by paragraph (d) of said subdivision (2), and (ii) any funds received in excess of fifteen million two hundred thousand dollars during any fiscal year of the state shall be placed into the Subaccount created by paragraph (e) of said subdivision (2).
e. Eleven percent of such funds shall be allocated and placed into the Subaccount created by paragraph (e) of said subdivision (2).
(b) Ten percent of such funds into the Tobacco Prevention, Education and Cessation Account created by subsection 7 of this section 38(d);
(c) Ten percent of such funds into the Early Childhood Care and Education Account created by subsection 8 of this section 38(d);
(d) Twenty percent of such funds into the Life Sciences Research Account created by subsection 9 of this section 38(d).
(3) Notwithstanding the allocation percentages to particular Accounts and Subaccounts which are set forth in subdivisions (1) and (2) of this subsection 5, the general assembly by law may provide for different allocation percentages among the Accounts and Subaccounts specified in this section 38(d) with respect to Tobacco Claim Payments received by the state treasurer or the director of revenue more than ten years after the effective date of this section 38(d).
6.
(1) The Health Care Treatment and Access Account is hereby created within the Tobacco Trust Fund. The purposes of the account shall be to enhance access to health care coverage for low-income working adults who may not be able to afford health insurance, to moderate pressures on hospitals to raise rates for other consumers to offset losses from treating the uninsured and to support medical education and training for physicians and nurses in teaching hospitals. Appropriations which are made by the general assembly from a Subaccount of the Health Care Treatment and Access Account shall be made to the division of medical services of the department of social services or the successor agency performing the functions of said division and shall be used and expended solely for the purposes provided in this subsection 6 for such Subaccount.
(2) The following Subaccounts of the Health Care Treatment and Access Account are hereby created and funds which are placed in a Subaccount shall be used and expended solely from such Subaccount for the health care treatment and access purposes provided with respect to such Subaccount:
(a) A Subaccount for funds to be used to provide medical assistance coverage to low-income adults who may otherwise be uninsured, as provided by subparagraph (C) of paragraph (2) of subsection (b) of section 1931 of the Social Security Act, as amended (42 U.S.C. 1396u-1).
(b) A Subaccount for funds to be used to make payments as follows:
a. Such funds shall first be used to pay the state's share of restoring and maintaining the level of Medicaid disproportionate share hospital payments at levels established in state fiscal year 1999. Funds shall be appropriated from the Subaccount so as to maximize the use of available federal matching funds;
b. Funds remaining after appropriations as described in subparagraph a. of this paragraph (b) shall be used to make state-only safety net payments to hospitals, allocated using a formula that distributes state funds based upon the care provided by each hospital to the uninsured.
(c) A Subaccount for funds to fund medical assistance payments for the cost of medical education and training for physicians and nurses.
(d) A Subaccount for funds to be used to update per diem payments to reflect current costs of providing hospital services under Titles XIX and XXI of the Social Security Act, as amended, or successor programs.
(e) A Subaccount for funds to be used to provide grants to support the operation of the following clinics and health centers:
a. rural health clinics as defined in paragraph (2) of subsection (aa) of 42 U.S.C. 1395x, as amended;
b. federally qualified health centers as defined in paragraph (4) of subsection (aa) of 42 U.S.C. 1395x, as amended;
c. primary or specialty care clinics operated by a hospital as defined in section 197.020, RSMo, as amended, or by a successor organization;
d. clinics operated by municipal or county health departments that provide primary care services.
Grants may be used to develop or expand chronic disease management programs in such clinics or health centers.
(f) A Subaccount for funds to be used for one or more of the following health care or treatment purposes:
a. the purchase of medically necessary prescription drugs by senior citizens;
b. Medicaid programs to enhance access to acute and primary care services;
c. grants to communities and/or local school districts to reduce smoking;
d. the uses described in paragraphs (a) through (e) of this subdivision (2).
(3) To be eligible to receive funds appropriated from the Health Care Treatment and Access Account and its Subaccounts, a hospital shall have a written policy for providing charity care or other financial assistance to those unable to pay the full cost of their care, shall annually submit such written policy to the department of social services and shall budget the amount of annual expenditures for such charity care or other financial assistance. If a hospital is entitled to receive funds appropriated from any Subaccount of the Health Care Treatment and Access Account and subsequently ceases to operate, a successor organization created to provide the same or similar services to the residents of the area served by the hospital shall be entitled to receive any such funds to which the hospital ceasing operations was entitled.
7. The Tobacco Prevention, Education and Cessation Account is hereby created within the Tobacco Trust Fund. Monies in the Tobacco Prevention, Education and Cessation Account shall be used solely for the purpose of 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/or to prevent tobacco addiction.
8. The Early Childhood Care and Education Account is hereby created within the Tobacco Trust Fund. Monies in the Early Childhood Care and Education Account shall be used solely for the purpose of early childhood care and/or education, including but not limited to community grants. Appropriations which are made by the general assembly from the Early Childhood Care and Education Account shall be made to the department of social services or its successor agency and shall be used and expended solely for the purpose provided in this subsection 8.
9.
(1) The Life Sciences Research Account is hereby created and shall be used and expended only for life sciences research purposes as provided in this subsection 9.
(2) Monies in the Life Sciences Research Account shall be used to strategically enhance, in cooperation with other governmental and not-for-profit private entities, the State of Missouri's ability to serve the health and welfare of the residents of Missouri as a center of life sciences research and development by building on the success of research institutions located in Missouri and enhancing their ability to carry out their respective missions.
(3) The management, governance and control of monies appropriated from the Life Sciences Research Account shall be vested in the Life Sciences Research Board which is hereby created and which shall consist of seven members. The following provisions shall apply with respect to the Life Sciences Research Board and its members:
(a) Each member shall be appointed by the governor with the advice and consent of the senate pursuant to the procedures herein set forth, for a term of six years, except that the terms of the members first appointed shall be for terms as hereinafter described. The Board shall select its own chairperson from among its members.
(b) The initial members of the Life Sciences Research Board shall not be appointed until at least six months after the effective date of this amendment in order that the Life Sciences Citizens' Committee may act to approve the organization and structure of the initial Centers for Excellence for Life Sciences Research as hereinafter provided.
(c) 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.
(d) One member of the Life Sciences Research Board shall be a resident within the geographical area for a St. Louis Area Center for Excellence as herein defined and may be referred to as the St. Louis member; another member of the Board shall be a resident within the geographical area for a Kansas City Area Center for Excellence as herein defined and may be referred to as the Kansas City Area member; and another member of the Board shall be a resident of Missouri and may be referred to as the University member. The other four members of the Board shall be residents of Missouri and may 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. In the event an additional Center for Excellence for Life Sciences Research is established for another geographical area pursuant to paragraph (f) of subdivision (4) of this subsection 9, the at-large position on the Board which 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.
(e) The first appointees as the St. Louis member and the Kansas City member of the Life Sciences Research 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.
(f) 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 Life Sciences Research Board; the Kansas City Area Center 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 which is created pursuant to paragraph (f) of subdivision (4) of this subsection 9 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 of the Board or a member for an additional Center's geographical area, the governor shall take into consideration any such recommendation made pursuant to the provisions of the preceding paragraph, but the governor shall not, however, be required to follow any such recommendation in making such an appointment.
(g) No member of the Life Sciences Research Board shall serve more than two consecutive full six-year terms on the Board.
(4) Centers for Excellence for Life Sciences Research shall be established and be subject to the following provisions:
(a) A Center for Excellence for Life Sciences Research means a system or regional consortium of public and/or 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 this subsection 9.
(b) The Life Sciences Research Board shall monitor and adopt such regulations as are necessary to assure quality and accountability in the operations of the Centers for Excellence for Life Sciences Research.
(c) 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. In the event any part of a municipality is located within any one of these counties and also encompasses a part of another Missouri county, 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.
(d) One Kansas City Area Center for Excellence may be established within the geographical area encompassing Jackson, Clay and Platte counties. In the event any part of a municipality is located within any one of these counties and also encompasses a part of another Missouri county, the entire area encompassed within the city limits of such municipality shall be a part of the geographic area of the Kansas City Area Center for Excellence.
(e) 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 which are within the geographical area of another Center for Excellence may participate in such Center for Excellence unless prohibited from doing so by the board of curators.
(f) The Life Sciences Research Board may establish additional geographical areas within the state of Missouri 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 for Excellence may be established, the Life Sciences Research Board shall first find and determine (i) that a new Center for Excellence within such geographical area is needed, (ii) that resources are available for a new Center for Excellence within such geographical area and (iii) that the establishment of a new Center for Excellence within such geographical area will not adversely affect any existing Center for Excellence.
(g) The geographical areas specified herein for a St. Louis Area Center for Excellence and a Kansas City Area Center for Excellence or which are hereinafter established by the Life Sciences Research Board for a Center for Excellence as herein provided may be expanded by the Life Sciences Research Board to include additional contiguous geographical areas within the State of Missouri.
(h) Any Center for Excellence for Life Sciences Research which is established within a geographical area hereinabove specified or a geographical area which is hereafter established by the Life Sciences Research Board shall be comprised of a consortium of public and/or private not-for-profit academic, research or health care institutions or organizations which have collectively 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.
(i) 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 Life Sciences Research Board proposed research initiatives for consideration for funding by the Board. Members of each screening committee shall generally be 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 Life Sciences Research Account.
(j) 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 38(d) or rules, guidelines or decisions adopted by the Life Sciences Research Board.
(5)
(a) In order to initially implement the provisions of this subsection 9, the governor shall appoint a Life Sciences Citizens' Committee of seven members within ninety days after the effective date of this amendment. 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.
(b) The Life Sciences Citizens' Committee shall receive and review suggestions for the formation and composition of the initial Centers for Excellence for Life Sciences Research within the St. Louis Area and the Kansas City Area. After receiving and reviewing such suggestions, the Life Sciences Citizens' Committee shall determine the initial composition of the Centers for Excellence within the St. Louis Area and the Kansas City Area. The Life Sciences Citizen Committee shall also consider and approve the organizational structure for the Centers for Excellence within the St. Louis Area and the Kansas City Area before such Center for Excellence shall be considered as a Center for Excellence under the provisions of this subsection 9. The Life Sciences Citizens' Committee shall also review, consider and approve the organization plan and structure of the University of Missouri System Center for Excellence before such Center for Excellence shall be considered as a Center for Excellence under the provisions of this subsection 9.
(c) After the Life Sciences Citizens' Committee has approved the composition and organizational structure of the three Centers for Excellence, it shall be disbanded. In any event, the Life Sciences Advisory Committee shall be disbanded not later than one year after its appointment. After the Life Sciences Citizens' Committee has been disbanded, the Life Sciences Research Board shall perform the functions of the Life Sciences Citizens' Committee.
(d) Before any Center for Excellence is considered to be a Center for Excellence for Life Sciences Research under the provisions of this subsection 9, its 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.
(e) 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.
(6) All monies which are appropriated by the general assembly from the Life Sciences Research Account shall be appropriated to the Life Sciences Research Board to increase the capacity and infrastructure for quality life sciences research in the State of Missouri and to thereby improve the quantity and quality of life sciences research, including but not limited to, basic research (including the discovery of new knowledge), translational research (including translating knowledge into a usable form), developmental research and clinical research (including the literal application of a therapy or intervention to determine its efficacy), to include but not be limited to health research in human development and aging, cancer, endocrine, cardiovascular, neurological, pulmonary and infectious disease, and nutrition and food safety. Funds received by the Board may be used for purposes authorized by this subsection 9 and subject to the restrictions of this subsection 9, 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 may be used for physical facilities.
(7) In determining projects to authorize, the Life Sciences Research 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. Specifically, at least eighty percent of the funds which 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 within a single Center for Excellence shall receive in a single fiscal year no more than fifty percent of the funds appropriated to the Board during that fiscal year. Collectively, the institutions or organizations within a single Center for Excellence shall receive in a single fiscal year no less than ten percent of the funds appropriated to the Board during that fiscal year. No single institution or organization shall receive in any consecutive three fiscal year period more than forty percent of the funds appropriated to the Board during that three fiscal year period.
(8) The funds appropriated to the Life Sciences Research Board which are not distributed by the Board in any fiscal year to a Center for Excellence or for a Center for Excellence endorsed program pursuant to the provisions of the foregoing subdivision (7) of subsection 9, if any, which are sometimes hereinafter referred to as the "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/or 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 subsection 9. The "remaining funds" appropriated to the Board may also be used to increase the capacity of the State of Missouri and public and/or private not-for-profit institutions or organizations located in Missouri 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," however, may be awarded for research projects to such public and/or private institutions or organizations (or the employees of such institutions or organizations) which 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.
(9) The Life Sciences Research Board shall have the authority to award research grants; to enter into contracts relating to research; to adopt research standards; to adopt guidelines and requirements having the effect of lawfully adopted regulations governing the administration of research programs, research grants, research contracts and licensing contracts; to make provision for peer review panels to recommend and review research projects; to contract for administrative and support services; to lease or acquire facilities and equipment; to employ administrative staff; and to receive, retain, hold, invest, disburse and/or administer any funds which it receives from appropriations or from any other source.
(10) The Life Sciences Research Board shall utilize as much of the funds as reasonably possible for research rather than for administrative expenses. The Board shall not therefore in any fiscal year expend more than two percent of the total monies appropriated to it and of the monies which it has in reserve or which it has received from other sources for its own administrative expenses; provided, however, that the general assembly by appropriation from the Life Sciences Research Account may authorize a limited amount of additional funds to be expended for administrative costs.
(11) 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 Account. Such shall be performed on a fiscal year basis and the cost of such audit shall not be considered as an administrative expense for purposes of subdivision (10) of this subsection 9. The Board will make copies of each audit publicly available. Every three years the Board with assistance of its staff or independent contractor(s) 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. The cost of such assessment report shall not be considered as an administrative expense for purposes of subdivision (10) of this subsection 9.
(12) Grant awards made with funds appropriated from the Life Sciences Research Account 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 (i) the reasonableness of the cost; (ii) the connection to the grant; (iii) the consistency demonstrated in assigning costs to the grant; and (iv) conformance with the particular terms and conditions of the award. The Life Sciences Research Board may, from time to time, issue regulations and guidelines consistent with this four-part test and shall provide grant recipients with a list or other explanation of regularly allowed costs.
(13) 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 and all inventions, ideas, data, improvements, 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 insure that any such intellectual property rights are utilized reasonably and in a manner which is in the public interest.
(14) No member of the Life Sciences Research Board shall participate in the making of any decision by the Board to make any grant to (i) the Board member, (ii) any person who is related to the board member within the fourth degree, by consanguinity or affinity, (iii) any public entity for which the Board member serves as an officer, director, or other member of the entity's governing organ, or (iv) any private entity for which the Board member or the member's spouse is employed, serves as an officer, director, or other member of the entity's governing organ. 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, to govern the actions of its employees and agents and to implement the provisions set forth in this subdivision (14).
10. In the event any Tobacco Claim Payments are received in the state treasury of the state of Missouri prior to the effective date of this section 38(d), the state treasurer shall set over and credit to the Tobacco Trust Fund and the proper Account and any proper Subaccount thereof monies which have been so received and which have not previously been disbursed from the state treasury. If any such Tobacco Claim Payments received in the state treasury have been disbursed from the state treasury prior to the effective date of this section 38(d), the state treasurer shall set over from general revenue and credit to the Tobacco Trust Fund and the proper Account and any Subaccount an amount or amounts equal to the amounts of monies previously disbursed. To the extent, however, that the General Assembly appropriates such Tobacco Claim Payments and such are expended from the state treasury prior to the effective date of this section 38(d) in accordance with the provisions of this section 38(d), it shall not be necessary for the state treasurer to set over funds to the Tobacco Trust Fund and the proper Account and Subaccount as hereinabove provided in this subsection 10.
11. The provisions of this section 38(d) are self enforcing. The general assembly may enact such laws as are reasonable and necessary to further implement the provisions of this section 38(d) if such a law does not conflict with the provisions of this section 38(d). The use of this money shall be governed by the restrictions on the use of public funds codified in this Constitution or in the Revised Statutes of Missouri as of January 1, 2001. The general assembly may also provide by general law or by appropriation for monies, in addition to Tobacco Claim Payments, to be appropriated to the Tobacco Trust Fund or into particular Accounts or Subaccounts of the Tobacco Trust Fund so that said funds will be appropriated and administered in accordance with applicable provisions of this section 38(d).
12. 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 this section 38(d).
13. Any Tobacco Claim Payments heretofore or hereafter made to the state of Missouri, including interest thereon, shall not be included within the definition of "total state revenues" or "new annual revenues" in sections 17 and 18 of Article X of the Missouri Constitution. The expenditure of funds from the Tobacco Trust Fund shall not be an "expense of state government" as that term is used in Section 20 of Article X of the Missouri Constitution.
14. Monies which are appropriated from the Tobacco Trust Fund for the purposes provided in this section 38(d) shall constitute additional amounts over and above any monies which are appropriated for such purposes from general revenue as of July 1, 2000. The state shall not reduce the level of funding which was in effect on July 1, 2000, for such a purpose from general revenue sources because of the appropriation of monies for such purpose from the Tobacco Trust Fund.
15. All of the provisions of this section 38(d) are severable. If any provision of this section is found by a court of competent jurisdiction to be unconstitutional or unconstitutionally enacted, the remaining provisions of this section shall be and remain valid.