Section 5701.1703 - Regional biotechnology research centers(a) Establishment of centers.--The department, in consultation with the Department of Health, shall establish three regional biotechnology research centers to facilitate research through the sharing of funds and infrastructure.(b) Nonprofit corporations to own and operate centers.--The department shall seek applicants for the purpose of forming a nonprofit corporation to own and operate regional biotechnology research centers.(c) Board of directors.--Each nonprofit corporation shall establish a board of directors consisting of at least seven but not more than 15 members. The Secretary of Community and Economic Development and the Secretary of Health or their designees shall be ex officio members of each board of directors. The board of directors shall include representatives of the for-profit and nonprofit institutions and organizations participating in the research center, as well as other representatives of local, civic or community groups.(d) Board chair.--The Secretary of Community and Economic Development shall appoint the initial chair of the board of directors who shall serve a term of two years. All subsequent board chairs shall be selected by the members of the board of directors and shall serve a term of two years.(e) Functions of centers.--The regional biotechnology research centers shall develop and implement biotechnology research projects which promote and coordinate research in this Commonwealth in order to:(1) Create or enhance research and related industries in Pennsylvania.(2) Develop high quality and commercially useful products or intellectual property.(3) Attract venture capital investments.(4) Attract and retain prominent scientists.(5) Encourage training and educational programs.(6) Develop regional research specialties.(7) Implement the commercial development of new research discoveries.(f) Application.--The board of directors of each regional biotechnology research center shall submit an application to the department which includes the following:(1) A listing of the for-profit and nonprofit institutions and organizations that will comprise the nonprofit corporation and that will own and operate the research center.(2) The names and affiliations of the members of the board of directors for the nonprofit corporation.(3) The proposed programs, activities and categories of research to be conducted at the center.(4) The plans for marketing the research center to regional institutions and corporations to build awareness and encourage participation.(5) The proposed location of the research center.(6) A proposed budget for the first year of operations of the research center, including projected infrastructure costs and projections on permanent staff to be employed at the research center.(7) The anticipated health, scientific, commercial and economic development outcomes to be achieved by the research center.(8) The amount of funds, infrastructure or other resources to be contributed by each participant to the research center.(9) Any other information deemed necessary by the department.(g) Agreement with department.--The board of directors of each biotechnology research center shall reach an agreement with the department regarding all of the following:(1) The amount of capital to be raised from the for-profit and nonprofit institutions and organizations prior to disbursement of any State funds.(2) The process for allowing access to and commercialization of intellectual property.(3) The portion of biotechnology research center earnings which will be returned to the Health Account due to intellectual property or products which are developed as a result of research conducted through the research center. All proceeds derived from royalty agreements shall be divided equally between the regional research center and the Health Account.(h) Contributions and ongoing funding.--In order to participate in research or product development at a regional biotechnology research center, financial or other substantially equivalent contributions to the research being conducted shall be made at a level established by the department. The board of directors shall develop revenue sources, including royalty agreements, to fund ongoing operations of the biotechnology research center.(i) Personnel.--A regional biotechnology research center may hire personnel to coordinate research projects.(j) Review and report.--(1) Each regional biotechnology research center shall be subject to an annual performance review by the department.(2) Each regional biotechnology research center shall, by November 30, 2002, and annually thereafter, prepare and submit a report to the department, the Department of Health, the chair and minority chair of the Appropriations Committee of the Senate, the chair and minority chair of the Appropriations Committee of the House of Representatives, the chair and minority chair of the Community and Economic Development Committee of the Senate and the chair and minority chair of the Commerce and Economic Development Committee of the House of Representatives. This report shall be in a form and manner developed by the department working in cooperation with the Department of Health and shall include the following: (i) The current members of the board of directors for the research center.(ii) A description of the research facilities, including space and equipment.(iii) The research center's current policies for the management and development of intellectual property and ownership of inventions and products created during the course of research conducted through the center.(iv) The research center's policies on conflicts of interest and the handling of confidential material.(v) A listing of all organizations and for-profit and nonprofit institutions utilizing the services of the research center during the prior year.(vi) A listing of any licenses or other contractual obligations in effect or anticipated for the intellectual property developed at the research center during the prior year.(vii) A listing of any inventions, any patent applications or patents issued, any products or other intellectual property developed as a result of research conducted through the research center during the prior year.(viii) A copy of the annual operating budget for the year, with a listing of the sources of all funds, including financial and in-kind services, personnel, equipment or other material donations and contributions by all parties involved in the research center; grants obtained by or through the research center; Federal funds leveraged and expenditures made, including infrastructure expenditures; and administrative and staffing costs.2001, June 26, P.L. 755, No. 77, § 1703, effective 7/1/2001.