CHAPTER 15-69CENTERS OF EXCELLENCE15-69-01. (Effective through July 31, 2011) Definitions. In this chapter, unless thecontext otherwise requires:1."Board" means the state board of higher education.2."Center" means a center of excellence relating to economic development which has<br>been designated or named under this chapter.3."Commission" means the centers of excellence commission.4."Foundation" means the North Dakota economic development foundation.5."Industry cluster" means one of the following industries:a.Advanced manufacturing;b.Energy;c.Information and technology;d.Tourism;e.Value-added agriculture; orf.An industry, including the aerospace industry, specifically identified by the<br>department of commerce as an industry that will contribute to the gross state<br>product.6."Infrastructure" means new building construction or major building renovation. The<br>term does not include a purchase of equipment or remodel of an existing building.15-69-02. (Effective through July 31, 2011) Centers of excellence.1.The board shall establish a centers of excellence program relating to economic<br>development.Workforce may not be the primary need addressed by a center.Through the program the commission shall make funding award recommendations<br>for commission-approved applications to the board, the foundation, the emergency<br>commission, and the budget section of the legislative management. A center must<br>be an institution of higher education under the control of the board or a nonprofit<br>university-related or college-related foundation of an institution of higher education<br>under the control of the board. In order to be considered for center designation, the<br>institution of higher education or nonprofit foundation must be working in partnership<br>with the private sector. In addition to any center designated under this chapter, the<br>North Dakota state university center for technology enterprise and the university of<br>North Dakota center for innovation are centers.2.A commission funding award recommendation must be for a specified amount.<br>Designation of a center occurs upon board, foundation, and budget section approval<br>of a commission funding award recommendation.In considering whether todesignate a center, the board, foundation, and budget section may not modify the<br>commission recommendation.The budget section may not take action on anoriginalcommissionfundingawardrecommendationuntiltheemergencycommissionreviewsthecommissionrecommendationandmakesarecommendation to the budget section.Upon receipt of a commission fundingPage No. 1award recommendation, the budget section shall approve the recommendation,<br>reject the recommendation, or rerefer the recommendation to the commission with<br>recommendedmodifications.Ifthecommissionreceivesarereferredrecommendation from the budget section, the commission shall determine whether<br>to modify the recommendation or whether to retain the recommendation and provide<br>additional information with the recommendation.a.If within thirty days of the budget section rereferring a recommendation the<br>commission makes a determination of whether to modify the recommendation<br>or to retain the recommendation and within the same thirty days the emergency<br>commission meets to review the modified recommendation or the retained<br>recommendation accompanied by additional information, the emergency<br>commission shall approve or reject the recommendation. If within the thirty<br>days following the budget section rereferral the emergency commission acts<br>under this subdivision, the determination of the emergency commission is final<br>and the recommendation is approved or rejected.b.If thirty days expire following the budget section's rereferral and the process<br>under subdivision a is not completed timely, the commission shall submit to the<br>budget section the modified recommendation or the retained recommendation.<br>Upon receipt of the recommendation under this subdivision, the budget section<br>shall approve or reject the recommendation.The budget section may notrerefer a recommendation received under this subdivision.3.A center that receives funds distributed under this chapter is not qualified to receive<br>subsequent designations as a center until the biennium following the center's most<br>recent designation.4.The board rules adopted under subsection 9 of section 15-10-17, relating to<br>ownership of intellectual property, inventions, and discoveries, must address<br>activities and issues unique to centers.15-69-03. (Effective through July 31, 2011) Centers of excellence commission. Thecenters of excellence commission consists of six members. The foundation shall appoint three of<br>the foundation's members to serve on the commission and the board shall appoint three of the<br>board's members to serve on the commission. The commission members shall designate a<br>chairman and a vice chairman of the commission. Each member of the commission shall serve<br>for a term of three years, beginning July first; may be reappointed for additional terms; and<br>serves at the pleasure of the appointing entity. If a commission member ceases to serve as a<br>member of the appointing entity, that member's membership on the commission ceases<br>immediately and the appointing entity shall appoint a new member for the remainder of the term.<br>Terms of commission members must be staggered.On a meeting-by-meeting basis, anappointing entity may substitute a member of that appointing entity to serve in place of one of the<br>regular members appointed by that entity. If the commission chairman and vice chairman are<br>not present at a meeting, the commission members present at that meeting shall select a<br>commission member to serve as chairman for that meeting. A commission member may receive<br>compensation and travel and expense reimbursement from the appointing entity.Thedepartment of commerce shall provide the commission with appropriate staff services as may be<br>requested by the commission.15-69-04. (Effective through July 31, 2011) Application - Eligibility requirements.1.The department of commerce shall provide center application forms, accept<br>applications, review applications for completeness and compliance with board and<br>commission policy, forward complete applications to the commission in accordance<br>with guidelines established by the commission, and assist with preaward reviews<br>and postaward monitoring as may be requested by the commission. No more than<br>two applications per campus of an institution of higher education under the control ofPage No. 2the board may be submitted to the department of commerce for each round of<br>center funding.2.The commission shall meet as necessary to review all complete applications;<br>consider the potential need for independent, expert review of complete applications;<br>approveordisapprovecompleteapplications;makefundingawardrecommendationsforcommission-approvedproposedcenters;directthedepartment of commerce to distribute funds to the centers; monitor centers for<br>compliance with award requirements; review changes in assertions made in center<br>applications; and conduct postaward monitoring of centers.3.In considering whether to approve or disapprove an application, the commission<br>shall determine whether the applicant has conducted the due diligence necessary to<br>put together a viable proposal, the commission shall determine whether the<br>applicant has provided information in the application which clearly outlines how the<br>matching fund requirement will be met, and the commission shall consider whether<br>the center will:a.Use university or college research to promote private sector job growth and<br>expansion of knowledge-based industries or use university or college research<br>to promote the development of new products, high-tech companies, or skilled<br>jobs in this state;b.Create high-value private sector employment opportunities in this state;c.Provide for public-private sector involvement and partnerships;d.Leverage other funding, including cash from the private sector;e.Increase research and development activities that may involve federal funding<br>from the national science foundation experimental program to stimulate<br>competitive research;f.Foster and practice entrepreneurship;g.Promote the commercialization of new products and services in industry<br>clusters;h.Become financially self-sustaining; andi.Establish and meet a deadline for acquiring and expending all public and<br>private funds specified in the application.4.In considering whether to approve an application, the commission may provide for<br>an independent, expert review of the application to determine whether the proposed<br>center is viable and whether the proposed center is likely to have the desired<br>economic impact.As necessary, the commission may contract for additionaltechnical review of applications. The commission may not approve an application<br>unless the commission determines the proposed center has a high likelihood of<br>viability and success in positively impacting economic development in the state.5.For no fewer than six years and no more than ten years following center designation,<br>the commission shall monitor the center's activities in order to determine whether<br>the center is having the desired economic impact.15-69-05.(Effective through July 31, 2011) Use of funds - Terms of funds -Distribution of funds.Page No. 31.A center shall use funds awarded under this chapter to enhance capacity and<br>leverage state, federal, and private sources of funding. A center awarded funds<br>under this chapter may not use the funds for infrastructure, to supplant funding for<br>current operations or academic instructions, or to pay indirect costs.2.As a condition for receipt of funds under this chapter, a center shall agree to provide<br>the board, foundation, and budget section of the legislative management with annual<br>audits on all funds distributed to the center under this chapter. The annual audits<br>must be provided until the completion of the commission's postaward monitoring of<br>the center. As a condition for receipt of funds under this chapter, a center shall<br>agree to provide the commission with the information necessary to monitor the<br>postaward activities of the center.3.Before the commission directs the department of commerce to distribute funds<br>awarded under this chapter, the center shall provide the commission with detailed<br>documentation of private sector participation and the availability of two dollars of<br>matching funds for each dollar of state funds to be distributed under this chapter. Of<br>the two dollars of matching funds, at least one dollar must be cash, of which at least<br>fifty cents must be from the private sector. The matching funds may include funds<br>facilitated through the collaboration of the private sector participants with other<br>funding entities.The noncash matching funds may include in-kind assets withitemized value.Private sector participation may be established through equityinvestments or through contracts for services with private sector entities. In making<br>funding recommendations and designation determinations, the commission, board,<br>foundation, and budget section shall give major consideration to the portion of the<br>matching funds provided in cash by the private sector.4.The commission shall direct the department of commerce to distribute the funds<br>awarded under this chapter in disbursements consistent with the center's budget and<br>timeframe outlined in the approved award.The commission may not directdistribution of funds under this chapter if there are no private sector partners<br>participating or if the statutorily required matching funds are not available.5.If, before funds are distributed by the department of commerce, a center undergoes<br>a change in the terms of or assertions made in its application, the commission may<br>direct that the department of commerce withhold all or a portion of any undistributed<br>funds pending commission review of the changes.6.The commission may use funds appropriated for the centers of excellence program<br>to pay for the commission's administrative expenses, which may include contracting<br>for independent, expert reviews of complete applications and centers of excellence<br>forums. The amount of funds the commission uses each biennium for administrative<br>expenses may not exceed two and one-half percent of the funds appropriated for the<br>program that biennium.15-69-06. Centers of excellence fund - Continuing appropriation. The centers ofexcellence fund is a special fund in the state treasury. All moneys in the centers of excellence<br>fund are appropriated to the department of commerce on a continuing basis for the purpose of<br>implementing and administering this chapter. Interest earned on moneys in the fund must be<br>credited to the fund.Page No. 4Document Outlinechapter 15-69 centers of excellence
CHAPTER 15-69CENTERS OF EXCELLENCE15-69-01. (Effective through July 31, 2011) Definitions. In this chapter, unless thecontext otherwise requires:1."Board" means the state board of higher education.2."Center" means a center of excellence relating to economic development which has<br>been designated or named under this chapter.3."Commission" means the centers of excellence commission.4."Foundation" means the North Dakota economic development foundation.5."Industry cluster" means one of the following industries:a.Advanced manufacturing;b.Energy;c.Information and technology;d.Tourism;e.Value-added agriculture; orf.An industry, including the aerospace industry, specifically identified by the<br>department of commerce as an industry that will contribute to the gross state<br>product.6."Infrastructure" means new building construction or major building renovation. The<br>term does not include a purchase of equipment or remodel of an existing building.15-69-02. (Effective through July 31, 2011) Centers of excellence.1.The board shall establish a centers of excellence program relating to economic<br>development.Workforce may not be the primary need addressed by a center.Through the program the commission shall make funding award recommendations<br>for commission-approved applications to the board, the foundation, the emergency<br>commission, and the budget section of the legislative management. A center must<br>be an institution of higher education under the control of the board or a nonprofit<br>university-related or college-related foundation of an institution of higher education<br>under the control of the board. In order to be considered for center designation, the<br>institution of higher education or nonprofit foundation must be working in partnership<br>with the private sector. In addition to any center designated under this chapter, the<br>North Dakota state university center for technology enterprise and the university of<br>North Dakota center for innovation are centers.2.A commission funding award recommendation must be for a specified amount.<br>Designation of a center occurs upon board, foundation, and budget section approval<br>of a commission funding award recommendation.In considering whether todesignate a center, the board, foundation, and budget section may not modify the<br>commission recommendation.The budget section may not take action on anoriginalcommissionfundingawardrecommendationuntiltheemergencycommissionreviewsthecommissionrecommendationandmakesarecommendation to the budget section.Upon receipt of a commission fundingPage No. 1award recommendation, the budget section shall approve the recommendation,<br>reject the recommendation, or rerefer the recommendation to the commission with<br>recommendedmodifications.Ifthecommissionreceivesarereferredrecommendation from the budget section, the commission shall determine whether<br>to modify the recommendation or whether to retain the recommendation and provide<br>additional information with the recommendation.a.If within thirty days of the budget section rereferring a recommendation the<br>commission makes a determination of whether to modify the recommendation<br>or to retain the recommendation and within the same thirty days the emergency<br>commission meets to review the modified recommendation or the retained<br>recommendation accompanied by additional information, the emergency<br>commission shall approve or reject the recommendation. If within the thirty<br>days following the budget section rereferral the emergency commission acts<br>under this subdivision, the determination of the emergency commission is final<br>and the recommendation is approved or rejected.b.If thirty days expire following the budget section's rereferral and the process<br>under subdivision a is not completed timely, the commission shall submit to the<br>budget section the modified recommendation or the retained recommendation.<br>Upon receipt of the recommendation under this subdivision, the budget section<br>shall approve or reject the recommendation.The budget section may notrerefer a recommendation received under this subdivision.3.A center that receives funds distributed under this chapter is not qualified to receive<br>subsequent designations as a center until the biennium following the center's most<br>recent designation.4.The board rules adopted under subsection 9 of section 15-10-17, relating to<br>ownership of intellectual property, inventions, and discoveries, must address<br>activities and issues unique to centers.15-69-03. (Effective through July 31, 2011) Centers of excellence commission. Thecenters of excellence commission consists of six members. The foundation shall appoint three of<br>the foundation's members to serve on the commission and the board shall appoint three of the<br>board's members to serve on the commission. The commission members shall designate a<br>chairman and a vice chairman of the commission. Each member of the commission shall serve<br>for a term of three years, beginning July first; may be reappointed for additional terms; and<br>serves at the pleasure of the appointing entity. If a commission member ceases to serve as a<br>member of the appointing entity, that member's membership on the commission ceases<br>immediately and the appointing entity shall appoint a new member for the remainder of the term.<br>Terms of commission members must be staggered.On a meeting-by-meeting basis, anappointing entity may substitute a member of that appointing entity to serve in place of one of the<br>regular members appointed by that entity. If the commission chairman and vice chairman are<br>not present at a meeting, the commission members present at that meeting shall select a<br>commission member to serve as chairman for that meeting. A commission member may receive<br>compensation and travel and expense reimbursement from the appointing entity.Thedepartment of commerce shall provide the commission with appropriate staff services as may be<br>requested by the commission.15-69-04. (Effective through July 31, 2011) Application - Eligibility requirements.1.The department of commerce shall provide center application forms, accept<br>applications, review applications for completeness and compliance with board and<br>commission policy, forward complete applications to the commission in accordance<br>with guidelines established by the commission, and assist with preaward reviews<br>and postaward monitoring as may be requested by the commission. No more than<br>two applications per campus of an institution of higher education under the control ofPage No. 2the board may be submitted to the department of commerce for each round of<br>center funding.2.The commission shall meet as necessary to review all complete applications;<br>consider the potential need for independent, expert review of complete applications;<br>approveordisapprovecompleteapplications;makefundingawardrecommendationsforcommission-approvedproposedcenters;directthedepartment of commerce to distribute funds to the centers; monitor centers for<br>compliance with award requirements; review changes in assertions made in center<br>applications; and conduct postaward monitoring of centers.3.In considering whether to approve or disapprove an application, the commission<br>shall determine whether the applicant has conducted the due diligence necessary to<br>put together a viable proposal, the commission shall determine whether the<br>applicant has provided information in the application which clearly outlines how the<br>matching fund requirement will be met, and the commission shall consider whether<br>the center will:a.Use university or college research to promote private sector job growth and<br>expansion of knowledge-based industries or use university or college research<br>to promote the development of new products, high-tech companies, or skilled<br>jobs in this state;b.Create high-value private sector employment opportunities in this state;c.Provide for public-private sector involvement and partnerships;d.Leverage other funding, including cash from the private sector;e.Increase research and development activities that may involve federal funding<br>from the national science foundation experimental program to stimulate<br>competitive research;f.Foster and practice entrepreneurship;g.Promote the commercialization of new products and services in industry<br>clusters;h.Become financially self-sustaining; andi.Establish and meet a deadline for acquiring and expending all public and<br>private funds specified in the application.4.In considering whether to approve an application, the commission may provide for<br>an independent, expert review of the application to determine whether the proposed<br>center is viable and whether the proposed center is likely to have the desired<br>economic impact.As necessary, the commission may contract for additionaltechnical review of applications. The commission may not approve an application<br>unless the commission determines the proposed center has a high likelihood of<br>viability and success in positively impacting economic development in the state.5.For no fewer than six years and no more than ten years following center designation,<br>the commission shall monitor the center's activities in order to determine whether<br>the center is having the desired economic impact.15-69-05.(Effective through July 31, 2011) Use of funds - Terms of funds -Distribution of funds.Page No. 31.A center shall use funds awarded under this chapter to enhance capacity and<br>leverage state, federal, and private sources of funding. A center awarded funds<br>under this chapter may not use the funds for infrastructure, to supplant funding for<br>current operations or academic instructions, or to pay indirect costs.2.As a condition for receipt of funds under this chapter, a center shall agree to provide<br>the board, foundation, and budget section of the legislative management with annual<br>audits on all funds distributed to the center under this chapter. The annual audits<br>must be provided until the completion of the commission's postaward monitoring of<br>the center. As a condition for receipt of funds under this chapter, a center shall<br>agree to provide the commission with the information necessary to monitor the<br>postaward activities of the center.3.Before the commission directs the department of commerce to distribute funds<br>awarded under this chapter, the center shall provide the commission with detailed<br>documentation of private sector participation and the availability of two dollars of<br>matching funds for each dollar of state funds to be distributed under this chapter. Of<br>the two dollars of matching funds, at least one dollar must be cash, of which at least<br>fifty cents must be from the private sector. The matching funds may include funds<br>facilitated through the collaboration of the private sector participants with other<br>funding entities.The noncash matching funds may include in-kind assets withitemized value.Private sector participation may be established through equityinvestments or through contracts for services with private sector entities. In making<br>funding recommendations and designation determinations, the commission, board,<br>foundation, and budget section shall give major consideration to the portion of the<br>matching funds provided in cash by the private sector.4.The commission shall direct the department of commerce to distribute the funds<br>awarded under this chapter in disbursements consistent with the center's budget and<br>timeframe outlined in the approved award.The commission may not directdistribution of funds under this chapter if there are no private sector partners<br>participating or if the statutorily required matching funds are not available.5.If, before funds are distributed by the department of commerce, a center undergoes<br>a change in the terms of or assertions made in its application, the commission may<br>direct that the department of commerce withhold all or a portion of any undistributed<br>funds pending commission review of the changes.6.The commission may use funds appropriated for the centers of excellence program<br>to pay for the commission's administrative expenses, which may include contracting<br>for independent, expert reviews of complete applications and centers of excellence<br>forums. The amount of funds the commission uses each biennium for administrative<br>expenses may not exceed two and one-half percent of the funds appropriated for the<br>program that biennium.15-69-06. Centers of excellence fund - Continuing appropriation. The centers ofexcellence fund is a special fund in the state treasury. All moneys in the centers of excellence<br>fund are appropriated to the department of commerce on a continuing basis for the purpose of<br>implementing and administering this chapter. Interest earned on moneys in the fund must be<br>credited to the fund.Page No. 4Document Outlinechapter 15-69 centers of excellence
CHAPTER 15-69CENTERS OF EXCELLENCE15-69-01. (Effective through July 31, 2011) Definitions. In this chapter, unless thecontext otherwise requires:1."Board" means the state board of higher education.2."Center" means a center of excellence relating to economic development which has<br>been designated or named under this chapter.3."Commission" means the centers of excellence commission.4."Foundation" means the North Dakota economic development foundation.5."Industry cluster" means one of the following industries:a.Advanced manufacturing;b.Energy;c.Information and technology;d.Tourism;e.Value-added agriculture; orf.An industry, including the aerospace industry, specifically identified by the<br>department of commerce as an industry that will contribute to the gross state<br>product.6."Infrastructure" means new building construction or major building renovation. The<br>term does not include a purchase of equipment or remodel of an existing building.15-69-02. (Effective through July 31, 2011) Centers of excellence.1.The board shall establish a centers of excellence program relating to economic<br>development.Workforce may not be the primary need addressed by a center.Through the program the commission shall make funding award recommendations<br>for commission-approved applications to the board, the foundation, the emergency<br>commission, and the budget section of the legislative management. A center must<br>be an institution of higher education under the control of the board or a nonprofit<br>university-related or college-related foundation of an institution of higher education<br>under the control of the board. In order to be considered for center designation, the<br>institution of higher education or nonprofit foundation must be working in partnership<br>with the private sector. In addition to any center designated under this chapter, the<br>North Dakota state university center for technology enterprise and the university of<br>North Dakota center for innovation are centers.2.A commission funding award recommendation must be for a specified amount.<br>Designation of a center occurs upon board, foundation, and budget section approval<br>of a commission funding award recommendation.In considering whether todesignate a center, the board, foundation, and budget section may not modify the<br>commission recommendation.The budget section may not take action on anoriginalcommissionfundingawardrecommendationuntiltheemergencycommissionreviewsthecommissionrecommendationandmakesarecommendation to the budget section.Upon receipt of a commission fundingPage No. 1award recommendation, the budget section shall approve the recommendation,<br>reject the recommendation, or rerefer the recommendation to the commission with<br>recommendedmodifications.Ifthecommissionreceivesarereferredrecommendation from the budget section, the commission shall determine whether<br>to modify the recommendation or whether to retain the recommendation and provide<br>additional information with the recommendation.a.If within thirty days of the budget section rereferring a recommendation the<br>commission makes a determination of whether to modify the recommendation<br>or to retain the recommendation and within the same thirty days the emergency<br>commission meets to review the modified recommendation or the retained<br>recommendation accompanied by additional information, the emergency<br>commission shall approve or reject the recommendation. If within the thirty<br>days following the budget section rereferral the emergency commission acts<br>under this subdivision, the determination of the emergency commission is final<br>and the recommendation is approved or rejected.b.If thirty days expire following the budget section's rereferral and the process<br>under subdivision a is not completed timely, the commission shall submit to the<br>budget section the modified recommendation or the retained recommendation.<br>Upon receipt of the recommendation under this subdivision, the budget section<br>shall approve or reject the recommendation.The budget section may notrerefer a recommendation received under this subdivision.3.A center that receives funds distributed under this chapter is not qualified to receive<br>subsequent designations as a center until the biennium following the center's most<br>recent designation.4.The board rules adopted under subsection 9 of section 15-10-17, relating to<br>ownership of intellectual property, inventions, and discoveries, must address<br>activities and issues unique to centers.15-69-03. (Effective through July 31, 2011) Centers of excellence commission. Thecenters of excellence commission consists of six members. The foundation shall appoint three of<br>the foundation's members to serve on the commission and the board shall appoint three of the<br>board's members to serve on the commission. The commission members shall designate a<br>chairman and a vice chairman of the commission. Each member of the commission shall serve<br>for a term of three years, beginning July first; may be reappointed for additional terms; and<br>serves at the pleasure of the appointing entity. If a commission member ceases to serve as a<br>member of the appointing entity, that member's membership on the commission ceases<br>immediately and the appointing entity shall appoint a new member for the remainder of the term.<br>Terms of commission members must be staggered.On a meeting-by-meeting basis, anappointing entity may substitute a member of that appointing entity to serve in place of one of the<br>regular members appointed by that entity. If the commission chairman and vice chairman are<br>not present at a meeting, the commission members present at that meeting shall select a<br>commission member to serve as chairman for that meeting. A commission member may receive<br>compensation and travel and expense reimbursement from the appointing entity.Thedepartment of commerce shall provide the commission with appropriate staff services as may be<br>requested by the commission.15-69-04. (Effective through July 31, 2011) Application - Eligibility requirements.1.The department of commerce shall provide center application forms, accept<br>applications, review applications for completeness and compliance with board and<br>commission policy, forward complete applications to the commission in accordance<br>with guidelines established by the commission, and assist with preaward reviews<br>and postaward monitoring as may be requested by the commission. No more than<br>two applications per campus of an institution of higher education under the control ofPage No. 2the board may be submitted to the department of commerce for each round of<br>center funding.2.The commission shall meet as necessary to review all complete applications;<br>consider the potential need for independent, expert review of complete applications;<br>approveordisapprovecompleteapplications;makefundingawardrecommendationsforcommission-approvedproposedcenters;directthedepartment of commerce to distribute funds to the centers; monitor centers for<br>compliance with award requirements; review changes in assertions made in center<br>applications; and conduct postaward monitoring of centers.3.In considering whether to approve or disapprove an application, the commission<br>shall determine whether the applicant has conducted the due diligence necessary to<br>put together a viable proposal, the commission shall determine whether the<br>applicant has provided information in the application which clearly outlines how the<br>matching fund requirement will be met, and the commission shall consider whether<br>the center will:a.Use university or college research to promote private sector job growth and<br>expansion of knowledge-based industries or use university or college research<br>to promote the development of new products, high-tech companies, or skilled<br>jobs in this state;b.Create high-value private sector employment opportunities in this state;c.Provide for public-private sector involvement and partnerships;d.Leverage other funding, including cash from the private sector;e.Increase research and development activities that may involve federal funding<br>from the national science foundation experimental program to stimulate<br>competitive research;f.Foster and practice entrepreneurship;g.Promote the commercialization of new products and services in industry<br>clusters;h.Become financially self-sustaining; andi.Establish and meet a deadline for acquiring and expending all public and<br>private funds specified in the application.4.In considering whether to approve an application, the commission may provide for<br>an independent, expert review of the application to determine whether the proposed<br>center is viable and whether the proposed center is likely to have the desired<br>economic impact.As necessary, the commission may contract for additionaltechnical review of applications. The commission may not approve an application<br>unless the commission determines the proposed center has a high likelihood of<br>viability and success in positively impacting economic development in the state.5.For no fewer than six years and no more than ten years following center designation,<br>the commission shall monitor the center's activities in order to determine whether<br>the center is having the desired economic impact.15-69-05.(Effective through July 31, 2011) Use of funds - Terms of funds -Distribution of funds.Page No. 31.A center shall use funds awarded under this chapter to enhance capacity and<br>leverage state, federal, and private sources of funding. A center awarded funds<br>under this chapter may not use the funds for infrastructure, to supplant funding for<br>current operations or academic instructions, or to pay indirect costs.2.As a condition for receipt of funds under this chapter, a center shall agree to provide<br>the board, foundation, and budget section of the legislative management with annual<br>audits on all funds distributed to the center under this chapter. The annual audits<br>must be provided until the completion of the commission's postaward monitoring of<br>the center. As a condition for receipt of funds under this chapter, a center shall<br>agree to provide the commission with the information necessary to monitor the<br>postaward activities of the center.3.Before the commission directs the department of commerce to distribute funds<br>awarded under this chapter, the center shall provide the commission with detailed<br>documentation of private sector participation and the availability of two dollars of<br>matching funds for each dollar of state funds to be distributed under this chapter. Of<br>the two dollars of matching funds, at least one dollar must be cash, of which at least<br>fifty cents must be from the private sector. The matching funds may include funds<br>facilitated through the collaboration of the private sector participants with other<br>funding entities.The noncash matching funds may include in-kind assets withitemized value.Private sector participation may be established through equityinvestments or through contracts for services with private sector entities. In making<br>funding recommendations and designation determinations, the commission, board,<br>foundation, and budget section shall give major consideration to the portion of the<br>matching funds provided in cash by the private sector.4.The commission shall direct the department of commerce to distribute the funds<br>awarded under this chapter in disbursements consistent with the center's budget and<br>timeframe outlined in the approved award.The commission may not directdistribution of funds under this chapter if there are no private sector partners<br>participating or if the statutorily required matching funds are not available.5.If, before funds are distributed by the department of commerce, a center undergoes<br>a change in the terms of or assertions made in its application, the commission may<br>direct that the department of commerce withhold all or a portion of any undistributed<br>funds pending commission review of the changes.6.The commission may use funds appropriated for the centers of excellence program<br>to pay for the commission's administrative expenses, which may include contracting<br>for independent, expert reviews of complete applications and centers of excellence<br>forums. The amount of funds the commission uses each biennium for administrative<br>expenses may not exceed two and one-half percent of the funds appropriated for the<br>program that biennium.15-69-06. Centers of excellence fund - Continuing appropriation. The centers ofexcellence fund is a special fund in the state treasury. All moneys in the centers of excellence<br>fund are appropriated to the department of commerce on a continuing basis for the purpose of<br>implementing and administering this chapter. Interest earned on moneys in the fund must be<br>credited to the fund.Page No. 4Document Outlinechapter 15-69 centers of excellence
