ARKANSAS SCIENCE & TECHNOLOGY AUTHORITY100 Main Street, Suite 450, Little Rock, Arkansas 72201 (501) 371-3554

MINUTES OF THE 30TH REGULAR MEETING OF THEARKANSAS SCIENCE & TECHNOLOGY AUTHORITY'S

BOARD OF DIRECTORSLITTLE ROCK, ARKANSAS

MAY 20, 1988

CALL TO ORDER

The meeting was called to order at 1:33 p.m. by Dr. WinfredThompson, Chairman of the Board, in the Conference Room ofthe Department of Higher Education, Little Rock, Arkansas.Board members present included Mr. William Bowen,Dr. Joycelyn Elders, Mr. Harry Truman Moore, Mr. LouisRamsay, Mr. John Troutt, and Mr. Jerry Webster.

Visitors included Mr. Jim Keary, Arkansas Democrat.

Dr. Thompson told the Board that he could not be present tochair the entire meeting. Therefore, those business itemsrequiring action by a quorum of the Board would be discussedand voted on first, and the order of the meeting would notnecessarily follow the order listed on the agenda. Afterthese business items have been addressed, Mr. Moore willchair the remainder of the meeting.

APPROVAL OF MINUTES

Dr. Thompson called the Board's attention to the minutesfrom the March 4, 1988 meeting (Appendix I). Mr. Ramsaymoved the minutes be approved as distributed. Dr. Eldersseconded the motion; the minutes were approved by unanimousvote.

INVESTMENT COMMITTEE REPORT

Mr. Moore called the Board's attention to the InvestmentCommittee Report (Appendix II) and asked for any questionsor comments. The General Fund report to date was given withthe notation that ASTA is within its allotted expenditureamount for both the quarter and the year.

Dr. Thompson reiterated that ASTA has no funds invested inany financial institution in which a member of the Board is

MINUTES -2- May 20, 1988

a director or holds any position connected with thatinstitution.

Mr. Moore moved for the approval of the Investment Fund andGeneral Fund Reports; Mr. Webster seconded the motion; thereport was unanimously approved by the Board.

Fiscal '87 Audit Report

Mr. Moore stated that the 1987 Audit Report by theLegislative Joint Audit committee shows that the Authorityis operating within good accounting guidelines as requiredby the state. Dr. Thompson commended the Authority's stafffor the good audit report. Mr. William Parks, FiscalOfficer for the Authority, was commended for his work inthis area.

RESEARCH COMMITTEE REPORT

In Dr. Hart's absence, Dr. Elders presented the Researchcommittee Report stating that the Research committee met andreviewed three proposals. Two proposals (88-B-0007 and 88­B-0003) did not receive high enough reviews by the Researchcommittee and the outside reviewers to merit fundingconsideration.

Draft Resolution No. 88-11

Dr. Elders presented Draft Resolution 88-11 (Appendix III)for the Board's approval. Draft Resolution No. 88-11provides for the funding of one applied research proposal:

PROPOSAL No. 88-A-0002, "Development ofIndustrial Nitro-Organic Syntheses," byDr. Neil Allison and Dr. Norbert Pientaof the University of Arkansas, Fayettevillein an amount not to exceed $40,740.

Dr. Elders moved that Draft Resolution 88-11 be approved bythe Board. Mr. Ramsay seconded the motion. Dr. Ahlenrequested that the motion allow for an addition to theresolution of inserting the company's name that is makingthe 1-2 matching fund investment. with this addition to theresolution, the Board unanimously approved the motion.

MINUTES -3-

Addition to the Resolution No. 88-11:

May 20, 1988

This project is co-sponsored by GarrisonIndustries of EI Dorado in the amount of$20,377.

Dr. Thompson excused himself from the Board meeting, andMr. Moore chaired the remainder of the meeting.

PLANNING COMMITTEE REPORT

(There was no Planning committee Report.)

PRESIDENT'S REPORT

Dr. Ahlen directed the Board's attention to the President'sReport (Appendix IV) and commented that Ms. smith andDr. Gentry gave a presentation to the Joint InterimCommittee on Agricultural and Economic Development (May 19,1988). Ms. smith stated the Committee viewed an excerpt ofthe video "Science Is Golden." Informational booklets on theAuthority's Applied and Basic Research Grant Programs werehanded out to the Committee. The presentation was wellreceived.

In addition, Dr. Ahlen stated that the Applied and BasicResearch Grant Program booklets were also given to theLegislative Council. The applied research bookletidentifies those counties that have benefited from ASTA'sapplied research projects; this is a total of 62 out of the75 counties in Arkansas. The basic research booklet showsthose areas of the economy that have benefited from ASTA'sbasic research projects. Dr. Ahlen said the final word fromthe Council's chairman, Representative Newman, was that ASTAwas doing good and to keep it up.

Mr. Moore commended the Authority's staff for compiling thebooklets showing the effects of the applied and basicresearch programs.

Dr. Ahlen asked the Board to note the column by Mr. JohnBrummett of the Arkansas Gazette in which good comments weremade about the Authority. Dr. Ahlen further noted thehandouts for the Board being an updated listing of Boardmembers and sample news articles for the Board's review.

MINUTES -4- May 20, 1988

ASTA's new staff member, Ms. Megan Delamar, was introducedto the Board. As Finance Program Manager, Ms. Delamar willbe assisting Mr. Jim Benham in the Seed Capital InvestmentProgram.

OLD BUSINESS

Report on the Science and Technology Corridor(Appendix V)

Commenting on the Science and Technology Corridor materials,Dr. Ahlen stated that he held meetings in Pine Bluff andLittle Rock with area business leaders and with utilityexecutives to review the Corridor strategy and to receivequestions from those attending the meetings. From thesequestions and comments, Dr. Ahlen said he felt the next stepfor the Corridor will be preparing a detailed plan of actionto take back to each community and the utility executives.Referring to the map showing the institutions thatoriginally defined the Corridor in 1982, Dr. Ahlen statedthat a number of suggestions had been made to change thesize and shape of the Corridor; the map does not show anoutline around the Corridor. This should allow anyinstitution that wishes to participate to do so withoutregard to an artificial boundary being put around theCorridor.

Dr. Ahlen said he has received correspondence from theGovernor supporting the Corridor's public sector agenda andwill begin working with the Governor's Office to puttogether some specific items.

Dr. Ahlen commented that the private leaders have beenapprised of the Corridor concept and their interest isstimulated. Therefore, it is clear that the Authority needsto provide the leadership for the next step which is todevelop a more detailed plan of action that lists specificsas to what the utility executives and private sectorparticipants can do to help implement the Corridor plan.

Mr. Bowen requested that a study be undertaken tothe possibility of including the University ofArkansas as part of the Corridor by illustrationCorridor map, and that a recommendation be providedregard at the next Board meeting.

addressCentralon thein this

MINUTES -5- May 20, 1988

Report on Coordinating Office Effort

Reporting on the Coordinating Office effort, Ms. smithstated that funding is still a problem. A reinvigoration ofthe EPSCoR project is underway. Senator Rockefeller hasproposed that EPSCoR begin again in the original 5 states,so another 3 million dollars could be coming from NSF withthe same provisions that were attached before, which were(1) showing a plan of how the funds would be spent, and(2) securing a dollar for dollar matching fund. This 3million will be distributed over a 5 year period. Now thatASTA is established and has its research programsimplemented, it is in a good position to benefit from thisnew EPSCoR funding.

There was an amendment put on the National Bureau ofStandards Authorization Bill that would create a new UnderSecretary of Technology. This will be known as theTechnology Administration in the Department of Commerce. Inthe next 2-4 years we should see a lot of new programssimilar to our own that will be implemented by the FederalGovernment.

The National Science Foundation Authorization Bill hasseveral new programs, aside from the EPSCoR program, forbasic research. The NSF Authorization Bill also adds 50million dollars for renovation of research facilities thatwill require a 1-1 nonfederal match. A priority has beenestablished to distribute the funds more geographicallyinstead of concentrating the funds wi thin the same top 50universities. Research facilities at minority institutionshave been targeted to receive 10 percent of all the fundsallocated, and the University of Arkansas at Pine Bluff hasbeen named as a potential beneficiary. Ms. Smith said shewould communicate this information to UAPB.

There is a new SBIR program that is aimed at universi tyfaculty; it encourages faculty to take part in appliedresearch with new, small businesses. ASTA 's SBIR Programand Applied Research Program will benefit from this. Theresearcher would get a grant, or a combination of a grantand a forgivable loan. The forgivable loan would dependupon whether the results were commercially applicable ornot.

The Truck and Bus Safety Act has come out of the Senate andis in the House. The Act establishes truck brakes as thenumber one safety issue in America today, and it is beingreviewed by the Public Works Committee on which Congressman

MINUTES -6- May 20, 1988

Hammerschmidt is the ranking member. CongressmanHammerschmidt and his staff are enthusiastic about anopportunity to directly benefit a company in his district.

ASTA has been working closely with Roger Iverson ofAdvanced Brake and Clutch Company in Fayetteville;company officials met yesterday (May 19) for the firstwi th representatives of Arkansas' trucking companies.was a successful meeting.

thethe

timeIt

that Jim Benham received a call from aVirginia requesting information about

Program after he heard about ASTA's good

New ideas for technology development programs continue andshould result in new opportunities for the next year.

Ms. smith reported that Allen Hermann will be receiving fromSOl $200,000 a year for the next two years for his researchin superconductivity. Ms. smith visited the StrategicDefense Initiative Office at the Pentagon during her trip toWashington in March, and was able to influence thisconnection.

Dr. Ahlen reportedgentleman in WestASTA's Seed Capitalreputation.

Dr. Ahlen explained that these are the kinds of smallsuccess stories that are building Arkansas' reputationnationally and in this area, but are not normally reportedin the newspapers nor to the Board.

Mr. Moore suggested these accomplishments be documented byASTA in some way and made available should it be needed.

Mr. Bowen requested that a status report on the AssociatedUniversity at NCTR be given at the next Board meeting.

carnegie Foundation Report

Referring to the carnegie Foundation Report that was dis­tributed at the last Board meeting, Dr. Ahlen said Dr. Wardquestioned the staff that conducted the study as to why theMedical Sciences Campus was not mentioned in the report.Dr. Ward received a letter from Ernest Boyer, president ofthe Carnegie Foundation, which said it was clear that UAMSconstituted a "peak of excellence ll in professional educa­tion for Arkansas; for that reason it was not included inthe report. Dr. Ward thought it would be appropriate topoint this out to the Board.

MINUTES

NEW BUSINESS

-7- May 20, 1988

Next Board Meeting

The next Board meeting is tentatively scheduled forSeptember 9, 1988 at which the annual election of officerswill take place. If a need arises during the summer monthsthat requires the Board's attention, a special meeting ofthe Board will be called.

Draft Resolution No. 88-8(Appendix VI)

Dr. Ahlen presented Draft Resolution No. 88-8 which providesfor the establishment of an Ad Hoc Nominating Committeeconsisting of not more than three past chairmen of the Boardwhose purpose is to meet and propose a slate for the annualelections. The members of the Ad Hoc Nominating Committeeare Dr. Hart, Mr. Ramsay, and Mr. Bowen. Mr. Webster movedfor the resolution's approval by the Board. Mr. Ramsayseconded the motion; the Board unanimously approved themotion.

Draft Resolution No. 88-9(Appendix VII)

Mr. Moore presented for the Board's approval DraftResolution No. 88-9 which provides for recognition of theaccomplishments of Dr. Winfred L. Thompson. Mr. Trouttmoved for approval of the resolution i Dr. Elders secondedthe motion. The Board unanimously approved the motion. Mr.Moore extended the Board's appreciation and cong~atulations

to Dr. Thompson for his work with the Board and hisaccomplishments in the educational field.

Draft Resolution No. 88-10(Appendix VIII)

Mr. Moore presented Draft Resolution No. 88-10 whichprovides for recognition of the accomplishments of Dr.Joycelyn Elders. Mr. Bowen moved for approval of theresolution i Mr. Webster seconded the motion. The Boardunanimously approved the motion. Mr. Moore extended theBoard's appreciation and congratulations to Dr. Elders forher many accomplishments and very fine work as a member ofthe Board.

MINUTES -8-

FY 1988 Annual Report

May 20, 1988

Ms. Kay Kelly reported that the 1988 Annual Report should becompleted by mid-summer. The Draft 1988 Annual Report willbe sent to each Board member for comment prior to theSeptember meeting. The report will need the Board's formalapproval at the September meeting.

Presentations to civic Clubs

Mr. Moore suggested that, after receiving the 1988 AnnualReport and other materials that ASTA has provided (the videotape and the information booklets on the Applied and BasicPrograms), the Board members would have adequate informationto make presentations to civic clubs and other organizationsas a way of sharing information about ASTA and its impact onArkansas' economy. Mr. Bowen suggested that a list of ASTAsuccess stories be compiled to be used with these kinds ofpresentations as well.

ASTA Agenda For '89 Legislative Session(Appendix IX)

Dr. Ahlen called the Board's attention to the memorandumregarding ASTA's Agenda for the 1989 Legislative Session.The memo outlines funding priorities and new initiatives forthe Authority in the 1989-91 biennium and the Authority'sbudget request for fiscal years 1990 and 1991.

Dr. Ahlen said the item of highest priority for funding willbe the basic and applied research programs which are thecore of the Authority's work.

Dr. Ahlen explained that budget requests are due to theGovernor before the next Board meeting in September, and itis essential to receive the Board's input in this process.Therefore, Dr. Ahlen asked that each Board member review thememorandum and report his/her comments or suggestions withinthe next week.

Mr. Bowen, commented that the need for a constitutionalamendment (page 6 of Appendix IX) is a very important actionand steps should be taken to present this item forlegislative approval as soon as possible. Dr. Ahlen saidthe Authority would contact the Legislative Council andrequest advice on this matter.

MINUTES

ADJOURNMENT

-9- May 20, 1988

There being no further business, the meeting adjourned at2:50 p.m.

Respectfully submitted,

Harry Truman MooreSecretaryBoard of Directors

Approve{ by the Board of Directors on this 9th day ofSeptemb~r, 1988 .

. ( ~L .Ha y rum n MooreSecretaBoard of Directors

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ARKANSAS SCIENCE & TECHNOLOGY AUTHORITY100 Main Street. Suite 450. Little Rock. Arkansas 72201 (501) 371-3554

RESOLUTION NO. 88-8

PROVIDING FOR THE ESTABLISHMENT OF AN AD HOC NOMINATINGCOMMITTEE BY THE BOARD OF DIRECTORS OF THE ARKANSAS SCIENCEAND TECHNOLOGY AUTHORITY.

WHEREAS, Act 409 of 1985 as amended requires the annualelection of the officers from the members of the Authority'sBoard of Directors; and

WHEREAS, the Bylaws of the Arkansas Science &Technology Authority require the Board of Directors toprescribe by resolution the name, charge, and number ofmembers of committees;

NOW, THEREFORE, BE IT RESOLVED THAT THE FOLLOWING MOTIONSHALL BE RECOGNIZED AS POLICY FOR THE BOARD OF DIRECTORS,THEREIN:

THAT there is established a Nominating committee as anad hoc committee of the Board of Directors, composed of notmore than three past chairmen of the Board, appointed bythe Chairman to provide guidance and counsel to theAuthori ty' s Board of Directors; that the NominatingCommittee shall submit its report to the Board at theBoard's next regularly scheduled meeting; and that theNominating Committee shall cease to exist upon itssubmitting to the Board of Directors its nominating report.

APPROVED by the Board of Directorson this 20th day of ~ay, 1988.

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ARKANSAS S<:IENCE & TECHNOLOGY AUTHORITY100 Main Street, Suite 450, Little Rock, Arkansas 72201 (501) 371·3554

RESOLUTION NO. 88-9

Providing for the Recognition of "Vinfred L. Thompson, Ph.D.

Whereas Dr. Winfred L. Thompson has well se11Jed the State ofArkansas as aBoard member of the Arkansas Science & Technology Authority since· its inception; ..

"Vhereas as chainnan of the Planning Committee, Dr. Thompson guided theestablishment offive business incubators around the state, and currently se11Jes as BoardChainnan;

"Vhereas Dr. Thompson has established a record of leadership in higher educationin his positions with both Arkansas State University and the University ofArkansas,Fayetteville; and

"Vhereas Dr. Thompson has been recently selected to lead the University ofCentral Arkansas as its 7th President;

Now Therefore Be It Resolved:

That the Board of Directors of the Arkansas Science & Technology Authorityrecognizes with great pride the outstanding accomplishments ofDr. }Vinfred L. Thompsonand bestows good wishes for continued success.

APPROVED by the Board of Directorson this 20th day of May, 1988.

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Harry TrumanJVlooreSecretary, Board of Directors

ARKANSAS SCIENCE & TECHNOLOGY AUTHORITY100 Main Street, Suite 450, Little Rock. Arkansas 72201 (501) 371·355'+

RESOLUTION NO. 88-10

Providing for the Recognition of Joycelyn Elders, lVI.D.

"Vhereas Dr. Joycelyn Elders has well selVed the State ofArkansas as a Boardmernber of the Arkansas Science & Technology Authority since its inception;

Whereas Dr. Elders has provided invaluable scientific expertise as a member ofthe Research Committee in the funding of 34 basic and applied research grant projects;

"Vhereas Dr. Elders has had a distinguished career in medicine, both as apractitioner and a researcher; and in education, as a Professor ofPediatric Endocrinologyat the University ofArkansas for kIedical Sciences;

"Vhereas Governor Bill Clinton selected Dr. Elders to be Director of the ArkansasDepartment of Health; and in her short tenure as Director, she has been willing to speakout on controversial public health issues that are imp011ant to our state;

Now Therefore Be It Resolved:

That the Board ofDirectors of the Arkansas Science & Technology Authorityrecognizes with great pride the oustanding accomplishments of Dr. Joycelyn Elders andbestows good wishes for continued success.

APPROVED by the Board of Directorson this 20th day of May, 1988.

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Harry Truman MooreSecretary, Board of Directors

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ARKANSAS SCIENCE &nCHNOLOGY AUTHORITY100 Main Street. Suite 450, Little Rock, Arkansas 72201 (501) 371·3554

RESOLUTION NO. 88-11

PROVIDING THE APPROVAL FOR THE FUNDING OF ONE APPLIED RESEARCHGRANT PROPOSAL BY THE BOARD OF DIRECTORS OF THE ARKANSASSCIENCE & TECHNOLOGY AUTHORITY.

WHEREAS, Act 859 as amended empowers the Arkansas Science& Technology Authority to establish and administer an AppliedResearch Grant Program; and

WHEREAS, Act 571 of 1987 includes an appropriation of$1,800,000 for funding basic and applied research in Arkansas'colleges and universities; and

WHEREAS, there are sufficient unencumbered funds in theaforementioned appropriation; and

WHEREAS, proposals were solicited in accordance withrules and guidelines for the Program; and

WHEREAS, proposals were reviewed for eligibility andcompleteness by the Authority's staff; and evaluated on thebasis of scientific merit by peers in appropriate fields ofscience; and

WHEREAS, the Research Committee is committed torecommending to the Board of Directors those proposals thathave clear economic development potential and are ranked asbeing scientifically meritorious; and

WHEREAS, the Research Committee finds that it isappropriate for the Authority to fund only proposals that areof limited time duration;

RESOLUTION NO. 88-11

NOW THEREFORE BE IT RESOLVED:

Page 2

THAT the Arkansas Science & Technology Authority's Boardof Directors approves for funding the following proposal:

PROPOSAL NO. 88-A-0002, "Development of Industrial Nitro­Organic Syntheses," by Dr. Neil Allison and Dr. NorbertPienta of the University of Arkansas, Fayetteville in anamount not to exceed $40,740. This project is co­sponsored by Garrison Industries of EI Dorado in theamount of $20,377.

BE IT FURTHER RESOLVED:

THAT all of the above policies are subject to the actionof the Board of Directors within the framework established byAct 859 as amended.

APPROVED by the Board of Directorson is 20th day of May, 1988.

of Directors