Sec. 1. 5 MRSA §1519 is enacted to read:

§1519.__Applied Research and Development Fund

1.__Applied Research and Development Fund.__There is created the Applied Research and Development Fund, referred to in this section as the "fund," to be used for operational costs of applied research and development relevant to the State's economy.__ Uses of the fund include, but are not limited to, development of new technology to create high-value jobs and businesses in the State; contribution toward commercialization of new technology and products;__promotion of international research and development cooperation; enhancement of worldwide competitiveness of state industries; and leverage and matching grants for available federal funding.

2.__Appropriations to fund.__One percent of total actual General Fund revenue of the previous fiscal year must be appropriated to the fund.

3.__Nonlapsing fund.__Any unexpended money appropriated or allocated to the fund may not lapse, but must be carried forward.

4.__Disbursements.__Disbursements from the fund must be made by a nonprofit organization established by the Legislature to distribute and account for all awards.__In awarding funds, the organization shall consider the expected return on investment of the award and other expected outcomes that must be defined and measurable.__The organization shall provide status reports to the Governor and to the Legislature by December 31st and June 30th of each year.

5.__Applied Research and Development Governing Board.__The Applied Research and Development Governing Board is established to oversee the activities of the nonprofit organization.__The board consists of 12 members as follows:

A.__Six members from private industry to be appointed by a majority vote of the Legislative Council;

B.__One Legislator to be appointed by a majority vote of the Legislative Council;

C.__The Commissioner of Economic and Community Development or the commissioner's designee;

D.__The President of the Maine Science and Technology Foundation or the president's designee;