SB825 HFIN AM
McO
The Committee on Finance moves to amend the bill on page one, following the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
The following words used in this article shall, unless the context clearly indicates a different meaning, be construed as follows:
(1) "Agreement" means any agreement being entered into between a governing board and a corporation pursuant to section four §18B-12-4 or §18B-12-11 of this article code.
(2) "Corporation" means a nonstock, not-for-profit corporation established under the general corporation laws of the state which meets the description presented by section three §18B-12-3 or §18B-12-11 of this article code.
(3) "Corporate directors" means the board of directors of a corporation.
(a) The Legislature finds and determines that the future economic development in the state will depend in part upon research developed at the state institutions of higher education, and enhanced research opportunities for state institutions of higher education will promote the general economic welfare of the citizens of the state. In order to enhance the competitive position of state institutions of higher education in the current environment for research and development, expenditures for equipment and material for research projects must be handled in an expeditious fashion, and the acquisition and utilization of research grants can be simplified and expedited through the utilization of private corporations.
(b) The interest of the citizens of the state will be best met by agreements entered into and carried out by the governing boards and corporations to provide research assistance for state institutions of higher education. Therefore, in order to facilitate research and development grants, economic development, and opportunities for state institutions of higher education, it is appropriate to authorize the governing boards to contract with private corporations organized for the purpose of providing such services to state institutions of higher education or established exclusively for purposes of economic development and job creation.
(a) Notwithstanding any other provision of this article to the contrary, any state institution of higher education may enter into an agreement with a nonstock, not-for-profit corporation which qualifies as an exempt organization under section 501(c) of the Internal Revenue Code of 1986, as amended, established under corporation laws of the state exclusively for purposes of economic development and job creation.
(b) Each governing board for a state institution of higher education may enter into agreements and any other contractual relationships with one or more corporations described in subsection (a) of this section under such terms as are mutually agreed upon to foster future economic development in the state. For purposes of this section:
(1) The president and the president's appointees from the institution may, but are not required to, serve as the corporation’s voting corporate directors;
(2) The meetings of the corporate directors are exempt from the provisions of §6-9A-3 of this code;
(3) The assets of the corporation are not subject to the provisions of §18B-12-3 of this code;
(4) The corporation and agreements between the corporation and the state institution of higher education are not subject to the provisions of §18B-12-4 of this code; and
(5) The corporation may be designated as the economic development entity for the state institution of higher education.
ADOPTED
REJECTED