VaBIO 2010 Agenda Passed By Legislature
The Virginia Biotechnology Association is pleased to announce that every item on our 2010 legislative agenda has passed the General Assembly. On behalf of the board of directors, we would like to thank everyone who helped support VaBIO, the Virginia Bioscience Legislative Caucus, and the many requests we made for advocates to contact their elected officials on our behalf.
Here is a summary of important legislation and budget items that should be of interest to the bioscience community:
Bills and Resolutions:
HB 523 (Nixon) and SB 428 (Herring): “VA Innovation Investment Act” Income taxes, state; tax exemption for capital gains. The “Virginia Innovation Investment Act” is a capital gains exclusion on income earned from a qualified investment in an advanced technology company in Virginia. The idea is based on legislation from North Carolina designed to improve the availability of funding for companies immediately without having to make a large appropriation of state dollars in a tight budget climate.
Status: Passed General Assembly an awaiting signature by the Governor.
HB 677 (May) and SB 644 (Howell): Specialized Biotechnology Research Performance Grant Program. Establishes the Specialized Biotechnology Research Performance Grant Program for the Ignite Institute for Individualized Health. Grants would be paid to (i) make a new capital investment of at least $200 million, (ii) create at least 415 new full-time jobs, and (iii) meet any other criteria set forth in the memorandum of understanding. Grants from the program to a qualified entity shall not exceed $22 million in the aggregate.
Status: Passed General Assembly an awaiting signature by the Governor.
HJ 196 (Peace): Commending the Chesapeake Bioscience Education Foundation. RESOLVED by the House of Delegates, the Senate concurring, that the General Assembly hereby commend and congratulate the Chesapeake Bioscience Education Foundation for its service to young people across Virginia.
Status: Passed General Assembly.
HB 943 (Landes): Small Business Jobs Grant Fund. Establishes the Small Business Jobs Grant Program and Fund to be administered by the Department of Business Assistance (DBA). The purpose of the Fund is to provide grants to small businesses that create at least five new full-time positions within a 12-month period paying at least the prevailing average annual wage in the locality in which the business is located. Grants will range between $500 and $2,000 per new full-time position based on the education, training and experience required. In awarding grants, priority must be given to small businesses creating new full-time positions in areas with an annual average unemployment rate of more than 125% of the statewide average unemployment rate.
Status: Passed the General Assembly and awaiting signature by the Governor.
Budget Amendments:
1) The fund for the Angel Investor Tax Credit will increase from $3M to $5M for 2010, then revert to $3M for 2011.
Item 3-5.01 #1c: Adjustments and Modifications to Tax Collections
Qualified Equity and Subordinated Debt Investment Tax Credit Language
Language: Page 379, line 30, strike “thereafter.” and insert: “thereafter, except that for taxable years beginning on and after January 1, 2010, and before December 31, 2010, the credit shall be limited to $5,000,000.”
Explanation: (This amendment eliminates the limit on the annual cap for calendar year 2010 only so that the statutory cap of $5.0 million will apply. This is a component of the Governor’s jobs creation plan.)
2) Virginia will provide $3M for “wet-lab” development, though half of the fund will go to George Mason University for the “VA Immunology Center.”
Item 114 #3c: Commerce And Trade, Virginia Economic Development Partnership
FY 10-11: $1,500,000, FY 11-12: $1,500,000 GF
Language: Page 62, line 37, strike “$15,870,751″ and insert “$17,370,751″.
Page 62, line 37, strike “$15,742,351″ and insert “$17,242,351″.
Page 64 after line 6, insert:
“N.1. Out of the amounts provided in this item, $1,500,000 in the first year and $1,500,000 in the second year from the general fund is appropriated to establish a Virginia Biotechnology Wet-Laboratory Program at the Virginia Economic Development Partnership to provide loans, loan guarantees, or grants to construct, improve, furnish, equip, maintain, acquire and renovate biotechnology laboratories designed to accommodate and provide wet-lab space or other needed laboratory, research, or production space to attract biosciences and other related technology companies to the state, as well as to accommodate the growth of companies already located in Virginia. Funds under this program may be used for loan guarantees, credit enhancement, or grants, in cooperation with, or on behalf of, applying local governments, private development entities, or other qualified applicants under the program guidelines.
2. The promulgation of program guidelines, and any decisions regarding the size and scope of the biotechnology “shell buildings,” the selection of sites, and the selection of users, tenants or purchasers of such buildings shall be made by a panel consisting of the Secretary of Commerce and Trade, the President of the Center for Innovative Technology, the Executive Director of the Virginia Economic Development Partnership, the Executive Director of the Virginia Biotechnology Association and the President of a research university selected by the Council of University and College Presidents. The funds shall be administered within the “Virginia Shell Building Initiative” as established pursuant to § 15.2-941, Code of Virginia. By November 15 or each year the Secretary shall provide a detailed report on the number of companies and jobs created pursuant to this funding.
O.1. George Mason University, in collaboration with the University of Virginia, Virginia Tech, Virginia Commonwealth University and Eastern Virginia Medical School shall create a research consortium hereby known as the Virginia Immunology Center. The Virginia Immunology Center is authorized to solicit proposals under the Public-Private Education Facilities and Infrastructure Act (PPEA) to partner with private, for-profit companies to conduct research on vaccines for the treatment of multiple infectious diseases. In no case shall the terms of the public-private partnership obligate the Commonwealth to the appropriation of additional general funds.
2. $1,500,000 in general funds the first year is provided for George Mason University to upgrade laboratory facilities located on its Prince William County campus and to purchase the necessary antibody samples for immunology research. However, no funds authorized in this item shall be allotted or expended until the Virginia Immunology Center and consortium receives an acceptable PPEA proposal and submits the proposal to the Chairmen of the House Appropriations Committee and the Senate Finance Committee for its approval.
3. Antibody samples and/or libraries purchased with these funds are to be made available to all public colleges and universities in the Commonwealth for research purposes and are to be available without any additional charge.”
Explanation: (This amendment provides $3.0 million over the biennium to support biotechnology initiatives in the Commonwealth. This amount includes $1.5 million for a biotechnology wet lab program to be administered by the Virginia Economic Development Partnership and the Center for Innovative Technology as well as funding for a Virginia Immunology Center research consortium.)
3) The VA Economic Development Partnership will receive $4.5M over the next two years for marketing activities (such as BIO 2011)
Item 114 #6c: Commerce And Trade
FY 10-11: $2,250,000 FY 11-12: $2,250,000
Virginia Economic Development Partnership
Language: Page 62, line 37, strike “$15,870,751″ and insert “$18,120,751″.
Page 62, line 37, strike “$15,742,351″ and insert “$17,992,351″.
Page 64, after line 8, insert:
“Out of the amounts for economic development services shall be provided $2,250,000 the first year and $2,250,000 the second year from the general fund to implement an aggressive national and international advertising campaign and to market Virginia through the Virginia Economic Development Partnership.”
4) Virginia will maintain the “Carve Out” for mental health pharmaceuticals.
Item 297 #10c : Health And Human Resources, Department Of Medical Assistance Services
Explanation: (This amendment adds language to continue the current exemption of antidepressant, antianxiety and antipsychotic medications used to treat mental illness from the Medicaid Preferred Drug List. Funding is also restored that was reduced in the introduced budget from the estimated savings of including these medications in the Medicaid Preferred Drug List program. Language is added requiring the Department of Medical Assistance Services to continue to review utilization of these medications and ensure appropriate use and dosage requirements are followed. If negative prescribing patterns are detected, the department is required to notify the medical director of the Department of Behavioral Health and Developmental Services who may require peer consultation with the prescriber. However, the language does not preempt the authority of the prescriber from determining which medication to prescribe or refill. Language also requires a report to the money committees by the department on the utilization and cost of drugs exempted.)
5) The CIT “GAP” Fund will receive $1.5M over the next two years
Item 428 #1c: Technology FY 10-11: $500,000, FY 11-12: $1,000,000
Innovation And Entrepreneurship Investment Authority
Explanation: (This amendment provides $500,000 in the first year and $1.0 million in the second year to fund the GAP program for technology and life-science program administered by the Center for Innovative Technology.)
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Not on VaBIO’s Legislative Agenda, but included as an FYI:
1) Virginia will reduce funding for the “Eminent Scholars” program by $1.7M per year.
Item 138 #1c: Education: Higher Education
FY 10-11: ($1,707,499), FY 11-12: ($1,707,499)
State Council Of Higher Education For Virginia
Language: Page 103, line 25, strike “$3,489,998″ and insert “$1,782,499″.
Page 103, line 25, strike “$3,489,998″ and insert “$1,782,499″.
Page 103, line 37, strike the first “$3,414,998″ and insert “$1,707,499″.
Page 103, line 37, strike the second “$3,414,998″ and insert “$1,707,499″.
Explanation: (This amendment reduces funding for the Eminent Scholars program.)
For more information please contact the Virginia Biotechnology Association at (804) 643-6360.
