Bill Text: MN HF915 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minnesota Science and Technology Authority expanded to include a research focus, new public research infrastructure grant program established, expanded research plan required, and public post secondary research partnership established.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2013-03-18 - Author added Kahn [HF915 Detail]
Download: Minnesota-2013-HF915-Introduced.html
1.2relating to the Minnesota Science and Technology Authority; expanding the
1.3authority to include a research focus; establishing a new public research
1.4infrastructure grant program; requiring a plan for expanded research; establishing
1.5a public postsecondary research partnership; requiring a report;amending
1.6Minnesota Statutes 2012, sections 116W.01; 116W.02, subdivisions 2, 3;
1.7116W.03, subdivision 1; 116W.04, subdivisions 1, 8; 116W.06, subdivisions 1, 2;
1.8116W.25; 116W.26, subdivisions 2, 5, 6, 7, 8, 9; 116W.27; 116W.28; 116W.29;
1.9116W.30; 116W.31; 116W.32, subdivision 1; proposing coding for new law
1.10in Minnesota Statutes, chapter 116W.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2012, section 116W.01, is amended to read:
1.13116W.01 MINNESOTA SCIENCEAND, TECHNOLOGY, AND RESEARCH
1.14 AUTHORITY ACT.
1.15This chapter may be cited as the "Minnesota Scienceand, Technology, and Research
1.16 Authority Act."
1.17EFFECTIVE DATE.This section is effective the day following final enactment.
1.18 Sec. 2. Minnesota Statutes 2012, section 116W.02, subdivision 2, is amended to read:
1.19 Subd. 2. Authority. "Authority" means the Minnesota Scienceand, Technology,
1.20and Research Authority.
1.21EFFECTIVE DATE.This section is effective the day following final enactment.
1.22 Sec. 3. Minnesota Statutes 2012, section 116W.02, subdivision 3, is amended to read:
2.1 Subd. 3. Eligible recipient. "Eligible recipient" means an entity primarily operating
2.2to create and retain jobs in the state's industrial base, expand research capacity throughout
2.3the state, and maximize the economic growth of the state through:
2.4(1) high-technology research and development capabilities;
2.5(2) product and process innovation and commercialization;
2.6(3) high-technology manufacturing capabilities;
2.7(4) science and technology business environment;or
2.8(5) science and technology workforce preparation; and
2.9(6) enhanced capacity for research through expanded research infrastructure and
2.10opportunities.
2.11EFFECTIVE DATE.This section is effective the day following final enactment.
2.12 Sec. 4. Minnesota Statutes 2012, section 116W.03, subdivision 1, is amended to read:
2.13 Subdivision 1. Membership. The Minnesota Scienceand, Technology, and Research
2.14 Authority consists of the commissioner of employment and economic development, the
2.15commissioner of management and budget, the commissioner of revenue, the commissioner
2.16of commerce,and the commissioner of agriculture, the chancellor of the Minnesota State
2.17Colleges and Universities, and the president of the University of Minnesota.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
2.19 Sec. 5. Minnesota Statutes 2012, section 116W.04, subdivision 1, is amended to read:
2.20 Subdivision 1. Duties. The Scienceand, Technology, and Research Authority shall:
2.21 (1) coordinate public and private efforts to procure federal funding for collaborative
2.22research and development projects of primary benefit to small-sized and medium-sized
2.23businesses;
2.24 (2) promote contractual relationships between Minnesota businesses that are
2.25recipients of federal grants and prime contractors, and Minnesota-based subcontractors;
2.26 (3) work with Minnesota nonprofit institutions including the University of
2.27Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting
2.28collaborative efforts to respond to federal funding opportunities;
2.29 (4) develop a framework for Minnesota companies to establish sole-source
2.30relationships with federal agencies;
2.31(5) provide grants or other forms of financial assistance to eligible recipients for
2.32purposes of this chapter;
3.1 (6) coordinate workshops, assistance with business proposals, licensing, intellectual
3.2property protection, commercialization, and government auditing with the University of
3.3Minnesota and Minnesota State Colleges and Universities; and
3.4(7) develop and implement a comprehensive scienceand, technology, and research
3.5 economic development strategy for the state.
3.6 Sec. 6. Minnesota Statutes 2012, section 116W.04, subdivision 8, is amended to read:
3.7 Subd. 8. Reports. (a) The authority shall report by February 1 each year to the
3.8chairs and ranking minority members of the legislative committees and divisions with
3.9jurisdiction over finance and economic development on its progress to design, coordinate,
3.10and administer a strategic science and technology program for the state to promote the
3.11welfare of the people of the state, maximize the economic growth of the state, and create
3.12and retain jobs in the state's industrial base, and expand research capacity throughout the
3.13state, through enhancement of Minnesota's:
3.14(1) high-technology research and development capabilities;
3.15(2) product and process innovation and commercialization;
3.16(3) high-technology manufacturing capabilities;
3.17(4) science and technology business environment;and
3.18(5) science and technology workforce preparation; and
3.19(6) research capabilities.
3.20(b) The report must include a complete operating and financial statement covering
3.21the authority's operations during the year, including amounts of income from all sources.
3.22Books and records of the authority are subject to audit by the legislative auditor in the
3.23manner prescribed for state agencies.
3.24EFFECTIVE DATE.This section is effective the day following final enactment.
3.25 Sec. 7. Minnesota Statutes 2012, section 116W.06, subdivision 1, is amended to read:
3.26 Subdivision 1. Advisory commission membership. A Scienceand, Technology,
3.27and Research Initiative Advisory Commission of 18 members is established and is
3.28comprised of:
3.29(1) two representatives of the University of Minnesota, selected by the president of
3.30the university, including a faculty member actively involved in science and technology
3.31research;
3.32(2) two representatives of the Minnesota State Colleges and Universities, selected by
3.33the chancellor, including a faculty member actively involved in science and technology
3.34research;
4.1(3) the chief executive officer of Mayo Clinic or a designee;
4.2(4) six chief executive officers or designees from science-orientedor,
4.3 technology-oriented, or research-oriented companies;
4.4(5) four representatives from science-orientedand, technology-oriented, and
4.5research-oriented organizations;
4.6(6) one representative of organized labor;
4.7(7) a venture capital representative; and
4.8(8) a representative of angel investors.
4.9A member must have experience in scienceor, technology, or research in order to
4.10serve on the commission.
4.11Members of the commission listed in clauses (4) to (8) shall be appointed by the
4.12authority.
4.13EFFECTIVE DATE.This section is effective the day following final enactment.
4.14 Sec. 8. Minnesota Statutes 2012, section 116W.06, subdivision 2, is amended to read:
4.15 Subd. 2. Advisory commission duties. The advisory commission must assist
4.16the authority in developing a comprehensive scienceand, technology, and research
4.17 economic development plan to be presented to the chairs and ranking minority members
4.18of the legislative committees and divisions with jurisdiction over economic development
4.19and higher education by January 15, 2011. The plan must include recommendations in
4.20strategic areas for scienceand, technology, and research investments, recommendations on
4.21additional programs to support scienceand, technology, and research focused economic
4.22development activities in the state, selection of specific programs and grantees for support
4.23from program funds authorized by the advisory commission and ongoing assessment of
4.24the effectiveness of programmatic elements according to metrics to be developed by the
4.25authority in consultation with the advisory commission. The advisory commission may
4.26also advise and assist the authority in fulfilling its duties under section116W.04 .
4.27EFFECTIVE DATE.This section is effective the day following final enactment.
4.28 Sec. 9. Minnesota Statutes 2012, section 116W.25, is amended to read:
4.29116W.25 CITATION.
4.30Sections116W.26 to
116W.34 may be cited as the "Minnesota science and,
4.31 technology, and research program."
4.32EFFECTIVE DATE.This section is effective the day following final enactment.
5.1 Sec. 10. Minnesota Statutes 2012, section 116W.26, subdivision 2, is amended to read:
5.2 Subd. 2. Authority. "Authority" means the Minnesota Scienceand, Technology,
5.3and Research Authority established under this chapter.
5.4EFFECTIVE DATE.This section is effective the day following final enactment.
5.5 Sec. 11. Minnesota Statutes 2012, section 116W.26, subdivision 5, is amended to read:
5.6 Subd. 5. Commercialized research project. "Commercialized research project"
5.7means research conducted within a college or university or nonprofit research institution
5.8or by a qualified science and technology or research company or organization that has
5.9shown advanced commercial potential through license agreements, patents, or other forms
5.10of invention disclosure, and by which a qualified scienceand, technology, or research
5.11 company has been or is being currently formed.
5.12EFFECTIVE DATE.This section is effective the day following final enactment.
5.13 Sec. 12. Minnesota Statutes 2012, section 116W.26, subdivision 6, is amended to read:
5.14 Subd. 6. Fund. "Fund" means the Minnesota scienceand, technology, and research
5.15 fund.
5.16EFFECTIVE DATE.This section is effective the day following final enactment.
5.17 Sec. 13. Minnesota Statutes 2012, section 116W.26, subdivision 7, is amended to read:
5.18 Subd. 7. Nonprofit research institution. "Nonprofit research institution" means an
5.19entity with its principle place of business in Minnesota, that qualifies under section 501(c) of
5.20the Internal Revenue Code, and that conducts significant research or development activities
5.21in this state in the areas of science and technology, and other applied research areas.
5.22EFFECTIVE DATE.This section is effective the day following final enactment.
5.23 Sec. 14. Minnesota Statutes 2012, section 116W.26, subdivision 8, is amended to read:
5.24 Subd. 8. Program. "Program" means the Minnesota scienceand, technology, and
5.25research program.
5.26EFFECTIVE DATE.This section is effective the day following final enactment.
5.27 Sec. 15. Minnesota Statutes 2012, section 116W.26, subdivision 9, is amended to read:
5.28 Subd. 9. Qualified scienceand, technology, and research company. "Qualified
5.29scienceand, technology, and research company" means a corporation, limited liability
6.1company, S corporation, partnership, limited liability partnership, or sole proprietorship
6.2with fewer than 100 employees that is engaged in research, development, or production of
6.3science or technology in this state including, without limitation, research, development,
6.4or production directed toward developing or providing science and technology products,
6.5processes, or services, or products, processes, or services generated through applied
6.6research for specific commercial or public purposes.
6.7EFFECTIVE DATE.This section is effective the day following final enactment.
6.8 Sec. 16. Minnesota Statutes 2012, section 116W.27, is amended to read:
6.9116W.27 MINNESOTA SCIENCEAND, TECHNOLOGY, AND RESEARCH
6.10 FUND.
6.11A Minnesota scienceand, technology, and research fund is created in the state
6.12treasury. The fund is a direct-appropriated special revenue fund. Money of the authority
6.13must be paid to the commissioner of management and budget as agent of the authority and
6.14the commissioner shall not commingle the money with other money. The money in the
6.15fund must be paid out only on warrants drawn by the commissioner of management and
6.16budget on requisition of the executive director of the authority or designee.
6.17EFFECTIVE DATE.This section is effective the day following final enactment.
6.18 Sec. 17. Minnesota Statutes 2012, section 116W.28, is amended to read:
6.19116W.28 MINNESOTA SCIENCEAND, TECHNOLOGY, AND RESEARCH
6.20 FUND; AUTHORIZED USES.
6.21The Minnesota scienceand, technology, and research fund may be used for the
6.22following to:
6.23(1) establish the commercialized research program authorized under section116W.29 ;
6.24(2) establish the federal research and development support program under section
6.25116W.30
;
6.26(3) establish the industry technology and competitiveness program under section
6.27116W.31
; and
6.28(4) carry out the powers of the authority authorized under sections116W.04 and
6.29116W.32
that are in support of the programs in clauses (1) to (3).
6.30EFFECTIVE DATE.This section is effective the day following final enactment.
7.1 Sec. 18. Minnesota Statutes 2012, section 116W.29, is amended to read:
7.2116W.29 COMMERCIALIZED RESEARCH PROGRAM.
7.3(a) The authority may establish a commercialized research program. The purpose of
7.4the program is to accelerate the commercialization of scienceand, technology, and applied
7.5research products, processes, or services from colleges or universities, nonprofit research
7.6institutions, or qualified science and technology companies that lead to an increase in
7.7science and technology businesses and jobs. The program shall:
7.8(1) provide scienceand, technology, and applied research gap funding of up to
7.9$250,000 per science and technology research project to assist in the commercialization
7.10and transfer of science and technology research projects from a college or university or
7.11nonprofit research institution to a qualified science and technology company; and
7.12(2) provide funding of up to $250,000 for early stage development for qualified
7.13scienceand, technology, and research companies to conduct commercialized research
7.14projects.
7.15(b) All activities under the commercialized research program must require:
7.16(1) written criteria set by the authority for the application, award, and use of the funds;
7.17(2) matching funds by the participating qualified scienceand, technology, and
7.18research company, college or university, or nonprofit research institution;
7.19(3) no more than 15 percent of the funds awarded by the authority may be used
7.20for overhead costs; and
7.21(4) a report by the participating qualified scienceand, technology, and research
7.22 company, college or university, or nonprofit research institution that provides
7.23documentation of the use of funds and outcomes of the award. The report must be
7.24submitted to the authority within one calendar year of the date of the award.
7.25EFFECTIVE DATE.This section is effective the day following final enactment.
7.26 Sec. 19. Minnesota Statutes 2012, section 116W.30, is amended to read:
7.27116W.30 FEDERAL RESEARCH AND DEVELOPMENT SUPPORT
7.28PROGRAM.
7.29The authority may establish a federal research and development support program.
7.30The purpose of the program is to increase and coordinate efforts to procure federal funding
7.31for research projects of primary benefit to qualified scienceand, technology, and research
7.32 companies, colleges or universities, and nonprofit research institutions. The program shall:
8.1(1) develop and execute a strategy to identify specific federal agencies and programs
8.2that support the growth of scienceand, technology, and applied research industries in
8.3this state; and
8.4(2) provide grants to qualified scienceand, technology, and research companies:
8.5(i) to assist in the development of federal Small Business Innovation (SBIR) or
8.6Small Business Technology Transfer (STTR) proposals; and
8.7(ii) to match funds received through SBIR or STTR awards. No more than
8.8$1,500,000 may be awarded in a year for matching grants under this clause.
8.9EFFECTIVE DATE.This section is effective the day following final enactment.
8.10 Sec. 20. Minnesota Statutes 2012, section 116W.31, is amended to read:
8.11116W.31 INDUSTRY INNOVATION AND COMPETITIVENESS PROGRAM.
8.12(a) The authority may establish an industry technology and competitiveness program.
8.13The purpose of the program is to advance the technological capacity and competitiveness of
8.14existing and emerging scienceand, technology, and research industries. The program shall:
8.15(1) provide matching funds to programs and organizations that assist entrepreneurs
8.16in starting and growing qualified scienceand, technology, and research companies
8.17including, but not limited to, matching funds for mentoring programs, consulting and
8.18technical services, and related activities;
8.19(2) fund initiatives that retain engineering, science, technology, and mathematical
8.20occupations in the state including, but not limited to, internships, mentoring, and support
8.21of industry and professional organizations; and
8.22(3) fund initiatives that support the growth of targeted industry clusters and the
8.23competitiveness of existing qualified scienceand, technology, and research companies
8.24in developing and marketing new products and services.
8.25(b) All activities under the industry innovation and competitiveness program shall
8.26require:
8.27(1) written criteria set by the authority for the application, award, and use of the funds;
8.28(2) matching funds by the participating qualified scienceand, technology, and
8.29research company, college or university, or nonprofit research institution; and
8.30(3) a report by the participating qualified scienceand, technology, and research
8.31 company, college or university, or nonprofit research institution providing documentation
8.32on the use of the funds and outcomes of the award. The report must be submitted to the
8.33authority within one calendar year from the date of the award.
8.34EFFECTIVE DATE.This section is effective the day following final enactment.
9.1 Sec. 21. Minnesota Statutes 2012, section 116W.32, subdivision 1, is amended to read:
9.2 Subdivision 1. General powers. The authority shall have all of the powers
9.3necessary to carry out the purposes and provisions of sections116W.26 to
116W.34 ,
9.4including, but not limited to, those provided under section116W.04 and the following:
9.5(1) The authority may make awards in the forms of grants or loans, and charge and
9.6receive a reasonable interest for the loans, or take an equity position in form of stock, a
9.7convertible note, or other securities in consideration of an award. Interests, revenues, or
9.8other proceeds received as a result of a transaction authorized by use of this fund shall be
9.9deposited to the corpus of the fund and used in the same manner as the corpus of the fund.
9.10(2) In awarding money from the fund, priority shall be given to proposals from
9.11qualified scienceand, technology, and research companies that have demonstrable
9.12economic benefit to the state in terms of the formation of a new private sector business
9.13entity, the creation of jobs, or the attraction of federal and private funding.
9.14(3) In awarding money from the fund, priority shall be given to proposals from
9.15colleges or universities and nonprofit research institutions that:
9.16(i) promote collaboration between any combination of colleges or universities,
9.17nonprofit research institutions, and private industry;
9.18(ii) enhance existing research superiority by attracting new research entities,
9.19research talent, or resources to the state; and
9.20(iii) create new research superiority that attracts significant researchers and resources
9.21from outside the state.
9.22(4) Subject to the limits in this clause, money within the fund may be used
9.23for reasonable administrative expenses by the authority including staffing and direct
9.24operational expenses, and professional fees for accounting, legal, and other technical
9.25services required to carry out the intent of the program and administration of the fund.
9.26Administrative expenses may not exceed five percent of the first $5,000,000 in the fund
9.27and two percent of any amount in excess of $5,000,000.
9.28(5) Before making an award, the authority shall enter into a written agreement with
9.29the entity receiving the award that specifies the uses of the award.
9.30(6) If the award recipient has not used the award received for the purposes intended,
9.31as of the date provided in the agreement, the recipient shall repay that amount and any
9.32interest applicable under the agreement to the authority. All repayments must be deposited
9.33to the corpus of the fund.
9.34EFFECTIVE DATE.This section is effective the day following final enactment.
9.35 Sec. 22. [116W.35] PUBLIC RESEARCH CAPITAL GRANT PROGRAM.
10.1 Subdivision 1. Creation of account. A public research capital account is created in
10.2the bond proceeds fund. Money in the account may only be used for capital costs of public
10.3research facilities and improvement projects.
10.4 Subd. 2. Definitions. For purposes of this section:
10.5(1) "authority" means the Minnesota Science, Technology, and Research Authority;
10.6(2) "eligible project" means a capital improvement project in this state for a public
10.7research facility to support science, technology, and applied research;
10.8(3) "governing body" means the council, board of commissioners, board of trustees,
10.9board of regents, or other body charged with governing a local governmental unit;
10.10(4) "local governmental unit" means a county; city; town; special district; the
10.11University of Minnesota campuses at Crookston, Duluth, Morris, Rochester, and Twin
10.12Cities, and the institutions of the Minnesota State Colleges and Universities; or other
10.13political subdivision or public corporation; and
10.14(5) "public research facility" means a publicly owned facility, or improvements of a
10.15capital nature to a publicly owned facility, that supports research for science, technology,
10.16and other applied research.
10.17 Subd. 3. Grant program established. (a) The authority shall make competitive
10.18grants to local governmental units for an eligible project. The local governmental unit
10.19receiving a grant must provide for the remainder of the costs of the eligible project from
10.20other sources.
10.21(b) The amount of a grant may not exceed the lesser of the cost of the eligible
10.22project or 50 percent of the sum of the cost of the public research facility plus the cost
10.23of the completed eligible project.
10.24(c) The purpose of the program is to support and expand research in the state and
10.25the benefits of commercialization of research, including keeping or enhancing area jobs,
10.26increasing the tax base, or expanding or creating new economic development through
10.27innovative research.
10.28 Subd. 4. Application. (a) The authority must develop forms and procedures for
10.29soliciting and reviewing applications for grants under this section. At a minimum, a local
10.30governmental unit must include the following information in its application:
10.31(1) a resolution of its governing body certifying that the money required to be
10.32supplied by the local governmental unit to complete the public research facility is
10.33available and committed;
10.34(2) a detailed estimate, along with necessary supporting evidence, of the total
10.35development costs for the eligible project;
11.1(3) a description of the potential or likely use of the site for research activities after
11.2completion of the research facility and eligible project;
11.3(4) a timeline indicating the major milestones of the eligible project and the
11.4anticipated completion date;
11.5(5) a commitment from the governing body to repay the grant if the milestones are
11.6not realized by the completion date identified in clause (4); and
11.7(6) any additional information or material the authority prescribes.
11.8(b) The determination of whether to make a grant under subdivision 3 is within the
11.9discretion of the authority, subject to this section. The authority's decisions and application
11.10of the priorities are not subject to judicial review, except for abuse of discretion.
11.11 Subd. 5. Priorities. (a) If applications for grants exceed the available appropriations,
11.12grants must be made for public research facilities that, in the authority's judgment, provide
11.13the highest return in public benefits for the public costs incurred. In making this judgment,
11.14the authority shall give priority to eligible projects with one or more of the following
11.15characteristics:
11.16(1) the geographic expansion of public research facilities;
11.17(2) the ability of the local government unit to provide support for the eligible project;
11.18(3) the cross-disciplinary participation in the research plan, transportation, and
11.19environmental impact;
11.20(4) that the eligible project is not relocating substantially the same research activities
11.21from another location in the state, unless the authority determines that the eligible
11.22project cannot be reasonably accommodated within the local government unit in which it
11.23is currently located; and
11.24(5) the potential for commercialization of the research findings and the potential
11.25number of jobs created in the state through commercialization.
11.26(b) The factors in paragraph (a) are not listed in a rank order of priority; rather,
11.27the authority may weigh each factor, depending upon the facts and circumstances, as
11.28the commissioner considers appropriate.
11.29 Subd. 6. Cancellation of grant. If a grant is awarded to a local government unit
11.30and funds are not encumbered for the grant within four years after the award date, the
11.31grant must be canceled.
11.32 Subd. 7. Repayment of grant. If an eligible public research facility project funded
11.33with a grant awarded under this section is not operational in accordance with the grant
11.34application under subdivision 4 within five years after the date of the last grant payment,
11.35the grant recipient must repay the amount of the grant received. The commissioner must
12.1deposit all money received under this subdivision into the state treasury and credit it to the
12.2debt service account in the state bond fund.
12.3EFFECTIVE DATE.This section is effective the day following final enactment.
12.4 Sec. 23. MINNESOTA SCIENCE, TECHNOLOGY, AND RESEARCH
12.5AUTHORITY; EXPANDED RESEARCH CAPACITY PLAN.
12.6To realize the full potential of academic research conducted in Minnesota, the
12.7Science, Technology, and Research Authority under Minnesota Statutes, sections
12.8116W.02 to 116W.06, must develop a plan to expand academic research at postsecondary
12.9institutions and nonprofit research facilities within Minnesota. The plan must examine
12.10existing barriers to research expansion and identify methods to expand the academic
12.11research at the: University of Minnesota's campuses, including the Twin Cities,
12.12Duluth, Crookston, Morris, and Rochester campuses; campuses of the Minnesota State
12.13Colleges and Universities; campuses of private nonprofit colleges and universities in
12.14Minnesota; and Minnesota-based nonprofit research institutions. The plan must include
12.15recommendations on how to best expand academic research within the existing network
12.16of institutions and facilities in Minnesota. The authority must provide the plan with an
12.17implementation strategy and make recommendations for realizing Minnesota's research
12.18potential to the committees of the legislature responsible for economic development and
12.19higher education by February 15, 2014.
12.20EFFECTIVE DATE.This section is effective the day following final enactment.
12.21 Sec. 24. PUBLIC POSTSECONDARY RESEARCH PARTNERSHIP.
12.22The Board of Regents of the University of Minnesota and the Board of Trustees
12.23of the Minnesota State Colleges and Universities must establish a joint partnership to
12.24develop a model for the expansion of academic research activities throughout Minnesota's
12.25postsecondary institutions. In conjunction with the partnership, the University of
12.26Minnesota must provide administrative and fiscal services to facilitate and support
12.27research grant applications submitted by the faculty of the Minnesota State Colleges and
12.28Universities. By January 15, 2014, the Board of Regents and the Board of Trustees must
12.29report to committees of the legislature responsible for economic development and higher
12.30education on the research partnership outcomes. The report must include recommendations
12.31on how to expand the partnership model to encompass academic research activities at
12.32private postsecondary institutions and private nonprofit research institutions.
12.33EFFECTIVE DATE.This section is effective the day following final enactment.
1.3authority to include a research focus; establishing a new public research
1.4infrastructure grant program; requiring a plan for expanded research; establishing
1.5a public postsecondary research partnership; requiring a report;amending
1.6Minnesota Statutes 2012, sections 116W.01; 116W.02, subdivisions 2, 3;
1.7116W.03, subdivision 1; 116W.04, subdivisions 1, 8; 116W.06, subdivisions 1, 2;
1.8116W.25; 116W.26, subdivisions 2, 5, 6, 7, 8, 9; 116W.27; 116W.28; 116W.29;
1.9116W.30; 116W.31; 116W.32, subdivision 1; proposing coding for new law
1.10in Minnesota Statutes, chapter 116W.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2012, section 116W.01, is amended to read:
1.13116W.01 MINNESOTA SCIENCE
1.14 AUTHORITY ACT.
1.15This chapter may be cited as the "Minnesota Science
1.16 Authority Act."
1.17EFFECTIVE DATE.This section is effective the day following final enactment.
1.18 Sec. 2. Minnesota Statutes 2012, section 116W.02, subdivision 2, is amended to read:
1.19 Subd. 2. Authority. "Authority" means the Minnesota Science
1.20and Research Authority.
1.21EFFECTIVE DATE.This section is effective the day following final enactment.
1.22 Sec. 3. Minnesota Statutes 2012, section 116W.02, subdivision 3, is amended to read:
2.1 Subd. 3. Eligible recipient. "Eligible recipient" means an entity primarily operating
2.2to create and retain jobs in the state's industrial base, expand research capacity throughout
2.3the state, and maximize the economic growth of the state through:
2.4(1) high-technology research and development capabilities;
2.5(2) product and process innovation and commercialization;
2.6(3) high-technology manufacturing capabilities;
2.7(4) science and technology business environment;
2.8(5) science and technology workforce preparation; and
2.9(6) enhanced capacity for research through expanded research infrastructure and
2.10opportunities.
2.11EFFECTIVE DATE.This section is effective the day following final enactment.
2.12 Sec. 4. Minnesota Statutes 2012, section 116W.03, subdivision 1, is amended to read:
2.13 Subdivision 1. Membership. The Minnesota Science
2.14 Authority consists of the commissioner of employment and economic development, the
2.15commissioner of management and budget, the commissioner of revenue, the commissioner
2.16of commerce,
2.17Colleges and Universities, and the president of the University of Minnesota.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
2.19 Sec. 5. Minnesota Statutes 2012, section 116W.04, subdivision 1, is amended to read:
2.20 Subdivision 1. Duties. The Science
2.21 (1) coordinate public and private efforts to procure federal funding for collaborative
2.22research and development projects of primary benefit to small-sized and medium-sized
2.23businesses;
2.24 (2) promote contractual relationships between Minnesota businesses that are
2.25recipients of federal grants and prime contractors, and Minnesota-based subcontractors;
2.26 (3) work with Minnesota nonprofit institutions including the University of
2.27Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting
2.28collaborative efforts to respond to federal funding opportunities;
2.29 (4) develop a framework for Minnesota companies to establish sole-source
2.30relationships with federal agencies;
2.31(5) provide grants or other forms of financial assistance to eligible recipients for
2.32purposes of this chapter;
3.1 (6) coordinate workshops, assistance with business proposals, licensing, intellectual
3.2property protection, commercialization, and government auditing with the University of
3.3Minnesota and Minnesota State Colleges and Universities; and
3.4(7) develop and implement a comprehensive science
3.5 economic development strategy for the state.
3.6 Sec. 6. Minnesota Statutes 2012, section 116W.04, subdivision 8, is amended to read:
3.7 Subd. 8. Reports. (a) The authority shall report by February 1 each year to the
3.8chairs and ranking minority members of the legislative committees and divisions with
3.9jurisdiction over finance and economic development on its progress to design, coordinate,
3.10and administer a strategic science and technology program for the state to promote the
3.11welfare of the people of the state, maximize the economic growth of the state, and create
3.12and retain jobs in the state's industrial base, and expand research capacity throughout the
3.13state, through enhancement of Minnesota's:
3.14(1) high-technology research and development capabilities;
3.15(2) product and process innovation and commercialization;
3.16(3) high-technology manufacturing capabilities;
3.17(4) science and technology business environment;
3.18(5) science and technology workforce preparation; and
3.19(6) research capabilities.
3.20(b) The report must include a complete operating and financial statement covering
3.21the authority's operations during the year, including amounts of income from all sources.
3.22Books and records of the authority are subject to audit by the legislative auditor in the
3.23manner prescribed for state agencies.
3.24EFFECTIVE DATE.This section is effective the day following final enactment.
3.25 Sec. 7. Minnesota Statutes 2012, section 116W.06, subdivision 1, is amended to read:
3.26 Subdivision 1. Advisory commission membership. A Science
3.27and Research Initiative Advisory Commission of 18 members is established and is
3.28comprised of:
3.29(1) two representatives of the University of Minnesota, selected by the president of
3.30the university, including a faculty member actively involved in science and technology
3.31research;
3.32(2) two representatives of the Minnesota State Colleges and Universities, selected by
3.33the chancellor, including a faculty member actively involved in science and technology
3.34research;
4.1(3) the chief executive officer of Mayo Clinic or a designee;
4.2(4) six chief executive officers or designees from science-oriented
4.3 technology-oriented, or research-oriented companies;
4.4(5) four representatives from science-oriented
4.5research-oriented organizations;
4.6(6) one representative of organized labor;
4.7(7) a venture capital representative; and
4.8(8) a representative of angel investors.
4.9A member must have experience in science
4.10serve on the commission.
4.11Members of the commission listed in clauses (4) to (8) shall be appointed by the
4.12authority.
4.13EFFECTIVE DATE.This section is effective the day following final enactment.
4.14 Sec. 8. Minnesota Statutes 2012, section 116W.06, subdivision 2, is amended to read:
4.15 Subd. 2. Advisory commission duties. The advisory commission must assist
4.16the authority in developing a comprehensive science
4.17 economic development plan to be presented to the chairs and ranking minority members
4.18of the legislative committees and divisions with jurisdiction over economic development
4.19and higher education by January 15, 2011. The plan must include recommendations in
4.20strategic areas for science
4.21additional programs to support science
4.22development activities in the state, selection of specific programs and grantees for support
4.23from program funds authorized by the advisory commission and ongoing assessment of
4.24the effectiveness of programmatic elements according to metrics to be developed by the
4.25authority in consultation with the advisory commission. The advisory commission may
4.26also advise and assist the authority in fulfilling its duties under section
4.27EFFECTIVE DATE.This section is effective the day following final enactment.
4.28 Sec. 9. Minnesota Statutes 2012, section 116W.25, is amended to read:
4.29116W.25 CITATION.
4.30Sections
4.31 technology, and research program."
4.32EFFECTIVE DATE.This section is effective the day following final enactment.
5.1 Sec. 10. Minnesota Statutes 2012, section 116W.26, subdivision 2, is amended to read:
5.2 Subd. 2. Authority. "Authority" means the Minnesota Science
5.3and Research Authority established under this chapter.
5.4EFFECTIVE DATE.This section is effective the day following final enactment.
5.5 Sec. 11. Minnesota Statutes 2012, section 116W.26, subdivision 5, is amended to read:
5.6 Subd. 5. Commercialized research project. "Commercialized research project"
5.7means research conducted within a college or university or nonprofit research institution
5.8or by a qualified science and technology or research company or organization that has
5.9shown advanced commercial potential through license agreements, patents, or other forms
5.10of invention disclosure, and by which a qualified science
5.11 company has been or is being currently formed.
5.12EFFECTIVE DATE.This section is effective the day following final enactment.
5.13 Sec. 12. Minnesota Statutes 2012, section 116W.26, subdivision 6, is amended to read:
5.14 Subd. 6. Fund. "Fund" means the Minnesota science
5.15 fund.
5.16EFFECTIVE DATE.This section is effective the day following final enactment.
5.17 Sec. 13. Minnesota Statutes 2012, section 116W.26, subdivision 7, is amended to read:
5.18 Subd. 7. Nonprofit research institution. "Nonprofit research institution" means an
5.19entity with its principle place of business in Minnesota, that qualifies under section 501(c) of
5.20the Internal Revenue Code, and that conducts significant research or development activities
5.21in this state in the areas of science and technology, and other applied research areas.
5.22EFFECTIVE DATE.This section is effective the day following final enactment.
5.23 Sec. 14. Minnesota Statutes 2012, section 116W.26, subdivision 8, is amended to read:
5.24 Subd. 8. Program. "Program" means the Minnesota science
5.25research program.
5.26EFFECTIVE DATE.This section is effective the day following final enactment.
5.27 Sec. 15. Minnesota Statutes 2012, section 116W.26, subdivision 9, is amended to read:
5.28 Subd. 9. Qualified science
5.29science
6.1company, S corporation, partnership, limited liability partnership, or sole proprietorship
6.2with fewer than 100 employees that is engaged in research, development, or production of
6.3science or technology in this state including, without limitation, research, development,
6.4or production directed toward developing or providing science and technology products,
6.5processes, or services, or products, processes, or services generated through applied
6.6research for specific commercial or public purposes.
6.7EFFECTIVE DATE.This section is effective the day following final enactment.
6.8 Sec. 16. Minnesota Statutes 2012, section 116W.27, is amended to read:
6.9116W.27 MINNESOTA SCIENCE
6.10 FUND.
6.11A Minnesota science
6.12treasury. The fund is a direct-appropriated special revenue fund. Money of the authority
6.13must be paid to the commissioner of management and budget as agent of the authority and
6.14the commissioner shall not commingle the money with other money. The money in the
6.15fund must be paid out only on warrants drawn by the commissioner of management and
6.16budget on requisition of the executive director of the authority or designee.
6.17EFFECTIVE DATE.This section is effective the day following final enactment.
6.18 Sec. 17. Minnesota Statutes 2012, section 116W.28, is amended to read:
6.19116W.28 MINNESOTA SCIENCE
6.20 FUND; AUTHORIZED USES.
6.21The Minnesota science
6.22following to:
6.23(1) establish the commercialized research program authorized under section
6.24(2) establish the federal research and development support program under section
6.26(3) establish the industry technology and competitiveness program under section
6.28(4) carry out the powers of the authority authorized under sections
6.30EFFECTIVE DATE.This section is effective the day following final enactment.
7.1 Sec. 18. Minnesota Statutes 2012, section 116W.29, is amended to read:
7.2116W.29 COMMERCIALIZED RESEARCH PROGRAM.
7.3(a) The authority may establish a commercialized research program. The purpose of
7.4the program is to accelerate the commercialization of science
7.5research products, processes, or services from colleges or universities, nonprofit research
7.6institutions, or qualified science and technology companies that lead to an increase in
7.7science and technology businesses and jobs. The program shall:
7.8(1) provide science
7.9$250,000 per science and technology research project to assist in the commercialization
7.10and transfer of science and technology research projects from a college or university or
7.11nonprofit research institution to a qualified science and technology company; and
7.12(2) provide funding of up to $250,000 for early stage development for qualified
7.13science
7.14projects.
7.15(b) All activities under the commercialized research program must require:
7.16(1) written criteria set by the authority for the application, award, and use of the funds;
7.17(2) matching funds by the participating qualified science
7.18research company, college or university, or nonprofit research institution;
7.19(3) no more than 15 percent of the funds awarded by the authority may be used
7.20for overhead costs; and
7.21(4) a report by the participating qualified science
7.22 company, college or university, or nonprofit research institution that provides
7.23documentation of the use of funds and outcomes of the award. The report must be
7.24submitted to the authority within one calendar year of the date of the award.
7.25EFFECTIVE DATE.This section is effective the day following final enactment.
7.26 Sec. 19. Minnesota Statutes 2012, section 116W.30, is amended to read:
7.27116W.30 FEDERAL RESEARCH AND DEVELOPMENT SUPPORT
7.28PROGRAM.
7.29The authority may establish a federal research and development support program.
7.30The purpose of the program is to increase and coordinate efforts to procure federal funding
7.31for research projects of primary benefit to qualified science
7.32 companies, colleges or universities, and nonprofit research institutions. The program shall:
8.1(1) develop and execute a strategy to identify specific federal agencies and programs
8.2that support the growth of science
8.3this state; and
8.4(2) provide grants to qualified science
8.5(i) to assist in the development of federal Small Business Innovation (SBIR) or
8.6Small Business Technology Transfer (STTR) proposals; and
8.7(ii) to match funds received through SBIR or STTR awards. No more than
8.8$1,500,000 may be awarded in a year for matching grants under this clause.
8.9EFFECTIVE DATE.This section is effective the day following final enactment.
8.10 Sec. 20. Minnesota Statutes 2012, section 116W.31, is amended to read:
8.11116W.31 INDUSTRY INNOVATION AND COMPETITIVENESS PROGRAM.
8.12(a) The authority may establish an industry technology and competitiveness program.
8.13The purpose of the program is to advance the technological capacity and competitiveness of
8.14existing and emerging science
8.15(1) provide matching funds to programs and organizations that assist entrepreneurs
8.16in starting and growing qualified science
8.17including, but not limited to, matching funds for mentoring programs, consulting and
8.18technical services, and related activities;
8.19(2) fund initiatives that retain engineering, science, technology, and mathematical
8.20occupations in the state including, but not limited to, internships, mentoring, and support
8.21of industry and professional organizations; and
8.22(3) fund initiatives that support the growth of targeted industry clusters and the
8.23competitiveness of existing qualified science
8.24in developing and marketing new products and services.
8.25(b) All activities under the industry innovation and competitiveness program shall
8.26require:
8.27(1) written criteria set by the authority for the application, award, and use of the funds;
8.28(2) matching funds by the participating qualified science
8.29research company, college or university, or nonprofit research institution; and
8.30(3) a report by the participating qualified science
8.31 company, college or university, or nonprofit research institution providing documentation
8.32on the use of the funds and outcomes of the award. The report must be submitted to the
8.33authority within one calendar year from the date of the award.
8.34EFFECTIVE DATE.This section is effective the day following final enactment.
9.1 Sec. 21. Minnesota Statutes 2012, section 116W.32, subdivision 1, is amended to read:
9.2 Subdivision 1. General powers. The authority shall have all of the powers
9.3necessary to carry out the purposes and provisions of sections
9.4including, but not limited to, those provided under section
9.5(1) The authority may make awards in the forms of grants or loans, and charge and
9.6receive a reasonable interest for the loans, or take an equity position in form of stock, a
9.7convertible note, or other securities in consideration of an award. Interests, revenues, or
9.8other proceeds received as a result of a transaction authorized by use of this fund shall be
9.9deposited to the corpus of the fund and used in the same manner as the corpus of the fund.
9.10(2) In awarding money from the fund, priority shall be given to proposals from
9.11qualified science
9.12economic benefit to the state in terms of the formation of a new private sector business
9.13entity, the creation of jobs, or the attraction of federal and private funding.
9.14(3) In awarding money from the fund, priority shall be given to proposals from
9.15colleges or universities and nonprofit research institutions that:
9.16(i) promote collaboration between any combination of colleges or universities,
9.17nonprofit research institutions, and private industry;
9.18(ii) enhance existing research superiority by attracting new research entities,
9.19research talent, or resources to the state; and
9.20(iii) create new research superiority that attracts significant researchers and resources
9.21from outside the state.
9.22(4) Subject to the limits in this clause, money within the fund may be used
9.23for reasonable administrative expenses by the authority including staffing and direct
9.24operational expenses, and professional fees for accounting, legal, and other technical
9.25services required to carry out the intent of the program and administration of the fund.
9.26Administrative expenses may not exceed five percent of the first $5,000,000 in the fund
9.27and two percent of any amount in excess of $5,000,000.
9.28(5) Before making an award, the authority shall enter into a written agreement with
9.29the entity receiving the award that specifies the uses of the award.
9.30(6) If the award recipient has not used the award received for the purposes intended,
9.31as of the date provided in the agreement, the recipient shall repay that amount and any
9.32interest applicable under the agreement to the authority. All repayments must be deposited
9.33to the corpus of the fund.
9.34EFFECTIVE DATE.This section is effective the day following final enactment.
9.35 Sec. 22. [116W.35] PUBLIC RESEARCH CAPITAL GRANT PROGRAM.
10.1 Subdivision 1. Creation of account. A public research capital account is created in
10.2the bond proceeds fund. Money in the account may only be used for capital costs of public
10.3research facilities and improvement projects.
10.4 Subd. 2. Definitions. For purposes of this section:
10.5(1) "authority" means the Minnesota Science, Technology, and Research Authority;
10.6(2) "eligible project" means a capital improvement project in this state for a public
10.7research facility to support science, technology, and applied research;
10.8(3) "governing body" means the council, board of commissioners, board of trustees,
10.9board of regents, or other body charged with governing a local governmental unit;
10.10(4) "local governmental unit" means a county; city; town; special district; the
10.11University of Minnesota campuses at Crookston, Duluth, Morris, Rochester, and Twin
10.12Cities, and the institutions of the Minnesota State Colleges and Universities; or other
10.13political subdivision or public corporation; and
10.14(5) "public research facility" means a publicly owned facility, or improvements of a
10.15capital nature to a publicly owned facility, that supports research for science, technology,
10.16and other applied research.
10.17 Subd. 3. Grant program established. (a) The authority shall make competitive
10.18grants to local governmental units for an eligible project. The local governmental unit
10.19receiving a grant must provide for the remainder of the costs of the eligible project from
10.20other sources.
10.21(b) The amount of a grant may not exceed the lesser of the cost of the eligible
10.22project or 50 percent of the sum of the cost of the public research facility plus the cost
10.23of the completed eligible project.
10.24(c) The purpose of the program is to support and expand research in the state and
10.25the benefits of commercialization of research, including keeping or enhancing area jobs,
10.26increasing the tax base, or expanding or creating new economic development through
10.27innovative research.
10.28 Subd. 4. Application. (a) The authority must develop forms and procedures for
10.29soliciting and reviewing applications for grants under this section. At a minimum, a local
10.30governmental unit must include the following information in its application:
10.31(1) a resolution of its governing body certifying that the money required to be
10.32supplied by the local governmental unit to complete the public research facility is
10.33available and committed;
10.34(2) a detailed estimate, along with necessary supporting evidence, of the total
10.35development costs for the eligible project;
11.1(3) a description of the potential or likely use of the site for research activities after
11.2completion of the research facility and eligible project;
11.3(4) a timeline indicating the major milestones of the eligible project and the
11.4anticipated completion date;
11.5(5) a commitment from the governing body to repay the grant if the milestones are
11.6not realized by the completion date identified in clause (4); and
11.7(6) any additional information or material the authority prescribes.
11.8(b) The determination of whether to make a grant under subdivision 3 is within the
11.9discretion of the authority, subject to this section. The authority's decisions and application
11.10of the priorities are not subject to judicial review, except for abuse of discretion.
11.11 Subd. 5. Priorities. (a) If applications for grants exceed the available appropriations,
11.12grants must be made for public research facilities that, in the authority's judgment, provide
11.13the highest return in public benefits for the public costs incurred. In making this judgment,
11.14the authority shall give priority to eligible projects with one or more of the following
11.15characteristics:
11.16(1) the geographic expansion of public research facilities;
11.17(2) the ability of the local government unit to provide support for the eligible project;
11.18(3) the cross-disciplinary participation in the research plan, transportation, and
11.19environmental impact;
11.20(4) that the eligible project is not relocating substantially the same research activities
11.21from another location in the state, unless the authority determines that the eligible
11.22project cannot be reasonably accommodated within the local government unit in which it
11.23is currently located; and
11.24(5) the potential for commercialization of the research findings and the potential
11.25number of jobs created in the state through commercialization.
11.26(b) The factors in paragraph (a) are not listed in a rank order of priority; rather,
11.27the authority may weigh each factor, depending upon the facts and circumstances, as
11.28the commissioner considers appropriate.
11.29 Subd. 6. Cancellation of grant. If a grant is awarded to a local government unit
11.30and funds are not encumbered for the grant within four years after the award date, the
11.31grant must be canceled.
11.32 Subd. 7. Repayment of grant. If an eligible public research facility project funded
11.33with a grant awarded under this section is not operational in accordance with the grant
11.34application under subdivision 4 within five years after the date of the last grant payment,
11.35the grant recipient must repay the amount of the grant received. The commissioner must
12.1deposit all money received under this subdivision into the state treasury and credit it to the
12.2debt service account in the state bond fund.
12.3EFFECTIVE DATE.This section is effective the day following final enactment.
12.4 Sec. 23. MINNESOTA SCIENCE, TECHNOLOGY, AND RESEARCH
12.5AUTHORITY; EXPANDED RESEARCH CAPACITY PLAN.
12.6To realize the full potential of academic research conducted in Minnesota, the
12.7Science, Technology, and Research Authority under Minnesota Statutes, sections
12.8116W.02 to 116W.06, must develop a plan to expand academic research at postsecondary
12.9institutions and nonprofit research facilities within Minnesota. The plan must examine
12.10existing barriers to research expansion and identify methods to expand the academic
12.11research at the: University of Minnesota's campuses, including the Twin Cities,
12.12Duluth, Crookston, Morris, and Rochester campuses; campuses of the Minnesota State
12.13Colleges and Universities; campuses of private nonprofit colleges and universities in
12.14Minnesota; and Minnesota-based nonprofit research institutions. The plan must include
12.15recommendations on how to best expand academic research within the existing network
12.16of institutions and facilities in Minnesota. The authority must provide the plan with an
12.17implementation strategy and make recommendations for realizing Minnesota's research
12.18potential to the committees of the legislature responsible for economic development and
12.19higher education by February 15, 2014.
12.20EFFECTIVE DATE.This section is effective the day following final enactment.
12.21 Sec. 24. PUBLIC POSTSECONDARY RESEARCH PARTNERSHIP.
12.22The Board of Regents of the University of Minnesota and the Board of Trustees
12.23of the Minnesota State Colleges and Universities must establish a joint partnership to
12.24develop a model for the expansion of academic research activities throughout Minnesota's
12.25postsecondary institutions. In conjunction with the partnership, the University of
12.26Minnesota must provide administrative and fiscal services to facilitate and support
12.27research grant applications submitted by the faculty of the Minnesota State Colleges and
12.28Universities. By January 15, 2014, the Board of Regents and the Board of Trustees must
12.29report to committees of the legislature responsible for economic development and higher
12.30education on the research partnership outcomes. The report must include recommendations
12.31on how to expand the partnership model to encompass academic research activities at
12.32private postsecondary institutions and private nonprofit research institutions.
12.33EFFECTIVE DATE.This section is effective the day following final enactment.
