A BILL TO BE ENTITLED
AN ACT TO CREATE A LIFE SCIENCES REVENUE BOND AUTHORITY.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 159D of the General Statutes is amended by adding a new Article to read:
"Article 3.
"Life Sciences Revenue Bond Authority.
"§ 159D-65.  Legislative findings.
The General Assembly finds the following:
(1)	The life sciences, including biology, zoology, agronomy, biochemistry, genetics, and molecular biology, have developed and are continuing to develop new commercially viable products designed to diagnose and treat diseases, produce therapeutic proteins and industrial enzymes, synthesize nutritional supplements and specialty chemicals in microorganisms, plants, and animals, and accomplish other beneficial purposes.
(2)	The commercialization of life science products has provided, and will continue to provide, significant economic benefits for the citizens of North Carolina through increased business development and employment.
(3)	North Carolina has a strong life sciences infrastructure in place, fostered over many years by the General Assembly, public and private universities, the North Carolina Biotechnology Center, life sciences companies and investors, and various State, regional, and local economic development initiatives. 
(4)	Nationally and within North Carolina, the life sciences industry has an immediate need for additional manufacturing capacity for the extraction, separation, purification, and packaging of products at various stages of the development, testing, and commercialization process, and the demand for this manufacturing capacity is likely to increase significantly in the next three to five years.
(5)	Employment opportunities created by life sciences manufacturing facilities are ideally suited for rural and urban regions of North Carolina currently undergoing significant economic challenges, and ancillary employment opportunities in construction, logistical support, transportation, raw material supply, and other fields will be enhanced through the construction and operation of life sciences manufacturing facilities in the State. 
(6)	A Life Sciences Revenue Bond Authority to help finance bioprocessing development facilities and bioprocessing manufacturing facilities addresses a critical need for companies that are formulating products, conducting field and clinical trials, and engaging in the production of new products. 
(7)	It is in the interest of the people of North Carolina that the State take steps to encourage the development of these facilities in the State and that the State seek to achieve a position of national leadership and innovation in the field of bioprocess manufacturing by facilitating the construction of economically sound and sustainable facilities in the State.
"§ 159D-66.  Definitions.
The following definitions apply in this Article:
(1)	Authority. – The Life Sciences Revenue Bond Authority.
(2)	Board. – The Board of Directors of the Authority.
"§ 159D-67.  Creation and purposes of Life Sciences Revenue Bond Authority.
(a)	Creation. – The Life Sciences Revenue Bond Authority is created within the Department of State Treasurer for organizational and budgetary purposes only. The Authority shall be governed by a Board of Directors. The Board of Directors is authorized to administer the Authority independently in accordance with the requirements of this Article.
(b)	Purposes. – The Authority has the following purposes:
(1)	To examine alternatives for enhancing North Carolina's construction financing infrastructure for life sciences manufacturing facilities by credit enhancement vehicles such as revenue bonds.
(2)	To establish proposed guidelines for the deployment, oversight, promotion, monitoring, and management of these credit enhancement vehicles.
(3)	To identify prospective life sciences enterprises that might benefit from the establishment of credit enhancement vehicles.
(4)	To advise and make recommendations to the General Assembly regarding further legislation to achieve the goals of the Authority.
(5)	To serve as the central life sciences revenue bond policy planning body in the State through collaboration and coordination with State, regional, local agencies, The University of North Carolina System, the North Carolina Biotechnology Center, the State Treasurer, and private entities in order to develop and foster a life sciences credit enhancement infrastructure for the benefit of the citizens of North Carolina.
"§ 159D‑68.  Board of Directors.
(a)	Members. – The Board of Directors consists of seven voting members, as follows:
(1)	Two members appointed by the Governor.
(2)	Two members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121.
(3)	Two members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120‑121.
(4)	The State Treasurer of North Carolina or the Treasurer's designee.
(b)	Terms. – The initial terms of office begin on the date of appointment and expire on June 30, 2005. Board members appointed for subsequent terms shall serve terms of three years. Board members may serve up to two full consecutive three‑year terms. All members of the Board shall remain in office until their successors are appointed and qualify.
(c)	Vacancies. – A vacancy in an appointment made by the Governor shall be filled by the Governor for the remainder of the term. A vacancy in an appointment made by the General Assembly shall be filled in accordance with G.S. 120‑122 for the remainder of the term. A person appointed to fill a vacancy must qualify in the same manner as a person appointed for a full term.
(d)	Chair. – The members of the Board shall elect a Chair from among their members. The Chair shall serve in that position at the pleasure of the Board.
"§ 159D‑69.  Powers and duties of Authority.
(a)	Powers. – The Authority has all of the powers necessary or convenient to carry out this Article, including the following powers:
(1)	To adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules and policies in connection with the performance of its functions and duties. 
(2)	To adopt and modify an official seal. 
(3)	To maintain an office at any place within the State as it may determine.
(4)	To apply for, accept, and utilize grants, contributions, and appropriations in order to carry out its duties as provided in this Article.
(5)	To employ, contract with, direct, and supervise all personnel and consultants and to enter into other contracts as necessary to accomplish the purposes of this Article, within the resources available to the Authority for that purpose. 
(6)	To review and recommend changes in laws, rules, programs, and policies of the State and its agencies and subdivisions to further the enhancement of the life sciences construction financing infrastructure within the State.
(b)	Duties. – The Authority has the following duties:
(1)	To establish an organizational structure and operational procedures to administer the Authority's programs. 
(2)	To examine various alternatives for encouraging the expansion of North Carolina's life sciences manufacturing industry by the use of credit enhancement vehicles such as revenue bonds and otherwise.
(3)	To establish proposed guidelines for the deployment, oversight, promotion, monitoring, and management of these credit enhancement vehicles.
(4)	To collaborate and coordinate with State, regional, and local agencies, The University of North Carolina System, the North Carolina Biotechnology Center, the State Treasurer, and private entities in order to develop and foster a life sciences credit enhancement infrastructure for the benefit of the citizens of North Carolina.
(5)	To develop the detailed procedures that could be employed to identify and qualify applicants for credit enhancement programs, including procedures to evaluate the scientific, business, and financial qualifications of these applicants. 
(6)	To receive and process test or pro forma applications from potential applicants for credit enhancement programs to demonstrate the need for the programs and to assess and collect fees from the potential applicants to cover the costs of processing and reviewing the applications."
SECTION 2.  The Life Sciences Revenue Bond Authority created in this act shall provide a written report to the General Assembly by March 31, 2004, setting forth its findings regarding the steps required to encourage and foster the expansion of the North Carolina life sciences manufacturing industry, including proposed legislation if considered appropriate by the Authority.
SECTION 3.  Nothing in this act requires the General Assembly to appropriate funds to implement it.
SECTION 4.  This act is effective when it becomes law.