In this subtitle the following terms have the meanings indicated. “Board” means the Human–Relevant Research Review Board established under § 10–4D–04 of this subtitle. “Corporation” has the meaning stated in § 10–401 of this title. “Fund” means the Human–Relevant Research Fund.

There is a Human–Relevant Research Fund. The purpose of the Fund is to promote State–funded research intended to develop human–relevant alternatives to using nonhuman animals in medical and product testing and research through grants and loans to public and private entities in the State. The Corporation shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: revenue distributed to the Fund under § 24–2302 of the Health – General Article; money appropriated in the State budget to the Fund; interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. Money in the Fund may be used only to: award grants and loans for State–funded, human–relevant animal testing alternatives research in accordance with the recommendations of the Board; and pay the costs necessary to administer the Fund. The State Treasurer shall invest the money in the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. The Governor may include in the State budget bill each fiscal year an appropriation to the Fund. Expenditures from the Fund may be made only in accordance with the State budget.

Subject to the provisions of this subtitle, the Corporation shall establish a grant and loan program to provide grants and loans for State–funded, human–relevant animal testing alternatives research. A grant or loan awarded under this subtitle is contingent on the recipient entering into a memorandum of understanding with the Corporation that: establishes the scope of the State’s ownership or other financial interest in the commercialization and other benefits of the results, products, inventions, and discoveries resulting from State–funded, human–relevant research; and to the extent consistent with federal and State law, reflects the intellectual property policies of the Corporation. The Corporation may not disburse grant or loan money to a recipient until the recipient meets the requirements of subsection (b) of this section.

The Corporation shall contract with an independent scientific review board composed of recognized scientific experts in the field of human–relevant animal testing alternatives to act as the Human–Relevant Research Review Board. The Board shall: review, evaluate, rank, and rate research proposals for State–funded, human–relevant animal testing alternatives research: based on the procedures and guidelines established by the Corporation; and in a manner that gives due consideration to the scientific, medical, and ethical implications of the research; and based on the rankings and ratings awarded to the research proposals by the Board, make recommendations to the Corporation for the award and disbursement of grants and loans. A member of the Board: is not eligible to receive a grant or loan for State–funded, human–relevant research from the Fund; and shall be subject to conflict of interest standards that are at least as stringent as the standards on conflict of interest adopted by the federal National Institutes of Health.

The Corporation, in consultation with the Board, shall adopt regulations to establish procedures for awarding and making the disbursement of a grant or loan.

On or before January 1 each year, the Corporation and the Board shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the progress of the human–relevant animal testing alternatives research conducted with money from grants or loans awarded under this subtitle. The report shall identify: each recipient of money from the Fund; the amount of money awarded to each recipient; and a description of the type of State–funded, human–relevant research performed by the recipient and the animal tests the research is intended to replace.