HF 2057

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:57am

A bill for an act
relating to economic development; promoting a science and technology initiative;
creating a commission; establishing a center; creating economic development
grant programs; defining terms; requiring reports; appropriating money;
proposing coding for new law in Minnesota Statutes, chapter 116J; repealing
Minnesota Statutes 2008, section 116J.657.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [116J.658] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 116J.6581 to 116J.6587, the
following terms have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin North Star Rising; NSR. new text end

new text begin "North Star Rising" and "NSR" mean North Star
Rising Science and Technology Economic Development Commission.
new text end

new text begin Subd. 3. new text end

new text begin SBIR/STTR. new text end

new text begin "SBIR/STTR" means Small Business Innovation Research
and Small Business Technology Transfer Programs.
new text end

Sec. 2.

new text begin [116J.6581] NORTH STAR RISING SCIENCE AND TECHNOLOGY
ECONOMIC DEVELOPMENT COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; purpose. new text end

new text begin (a) The North Star Rising Science and
Technology Economic Development Commission, also known as "North Star Rising" or
"NSR," is created. The objectives of North Star Rising are to design, coordinate, and
administer a strategic science and technology program for the state, designed to promote
the welfare of the people of the state, maximize the economic growth of the state, and
create and retain jobs in the state's industrial base through enhancement of Minnesota's:
new text end

new text begin (1) high-technology research and development capabilities;
new text end

new text begin (2) product and process innovation and commercialization;
new text end

new text begin (3) high-technology manufacturing capabilities;
new text end

new text begin (4) science and technology business environment; and
new text end

new text begin (5) science and technology workforce preparation.
new text end

new text begin (b) North Star Rising shall guide and manage the state's investment in science and
technology in the interest of the objectives described in paragraph (a).
new text end

new text begin Subd. 2. new text end

new text begin Membership; terms. new text end

new text begin (a) North Star Rising membership shall consist
of science and technology experts from public, academic, and private sectors. A
member must have a background in science or technology in order to serve on the
commission. NSR shall consist of at least 13 members as follows: a representative
of the University of Minnesota; a representative of Minnesota State Colleges and
Universities; the CEO of Mayo Clinic or a designee; and six CEOs or designees from
science- or technology-oriented companies and four representatives from science- and
technology-oriented trade organizations, appointed by the governor.
new text end

new text begin (b) Of the ten persons appointed by the governor, initial terms of service are to be
determined by the governor as follows: three members for one year, four members for
two years, and three members for three years. Thereafter, appointments are for three-year
terms. Members may be reappointed and vacancies must be filled in the same manner as
appointments.
new text end

new text begin Subd. 3. new text end

new text begin Chair. new text end

new text begin The membership of North Star Rising shall select a chair from
among the members, who shall serve for a term of two years.
new text end

new text begin Subd. 4. new text end

new text begin Meetings. new text end

new text begin North Star Rising shall establish its own meeting schedule,
sufficient to accomplish the objectives set forth in subdivision 1, and may be at the call of
the chair. A majority of all members of NSR constitutes a quorum and no action shall be
taken without the concurrence of a majority of the members.
new text end

new text begin Subd. 5. new text end

new text begin Conflict of interest. new text end

new text begin Members of North Star Rising may not participate in
or vote on a decision of the board relating to an organization in which the member has
either a direct or indirect financial interest.
new text end

new text begin Subd. 6. new text end

new text begin Powers and duties. new text end

new text begin North Star Rising shall:
new text end

new text begin (1) contract with, retain the services of, or designate and fix the compensation of
financial consultants, accountants, other consultants and advisors, and other independent
contractors as may be necessary or desirable to carry out NSR duties;
new text end

new text begin (2) make grants and loans to individuals, public agencies, private companies or
organizations, or joint ventures for the broad range of activities related to science and
technology advancement;
new text end

new text begin (3) recommend to the legislature a series of specific programs designed to address
critical science and technology needs required to satisfy the objectives under subdivision 1
and recommend sufficient appropriation levels for the programs;
new text end

new text begin (4) determine the infrastructure and translational research requirements and
appropriations needed to create public and private centers of innovation, initially the
categories of nanotechnology, bioinformatics, and biomass, and select appropriate
academic scientists, engineers, and industry experts to design the centers and the centers'
missions;
new text end

new text begin (5) establish a competitive process for the award of grants and loans designed to
fund the most meritorious proposals and, when appropriate, provide for peer review of
proposals;
new text end

new text begin (6) set forth a plan for periodic strategic assessments of the types of state investments
in research, commercialization, and workforce development to create jobs and business
opportunities in the state and produce the most beneficial long-term improvements to
the economic well-being of Minnesotans;
new text end

new text begin (7) solicit input and comments from specialized industry, professional, and other
relevant interest groups concerning NSR purposes;
new text end

new text begin (8) develop a series of metrics and measures that will be applied to evaluate the
effectiveness of individual programs established under this section and to monitor and
account for effectiveness of individual grants, awards, or loans made; and
new text end

new text begin (9) cooperate with the Department of Employment and Economic Development
in implementing the Minnesota Commercialization Enhancement program, the Small
Business Federal Grant Competitiveness Center, and other NSR programs.
new text end

new text begin Subd. 7. new text end

new text begin Member compensation. new text end

new text begin North Star Rising members shall serve without
compensation, but shall receive reimbursement of their reasonable and necessary expenses
incurred in the conduct of NSR business.
new text end

new text begin Subd. 8. new text end

new text begin Appropriations; costs. new text end

new text begin North Star Rising shall administer money
appropriated to it by the legislature. NSR must use appropriations for administrative costs
associated with the operation of NSR and for programs or activities administered by NSR.
To reduce costs, existing space and administration support will be provided by state or
public academic institutions or private companies whenever possible.
new text end

new text begin Subd. 9. new text end

new text begin Report requirements. new text end

new text begin North Star Rising must continuously assess
its overall effectiveness, its individual component programs, and the mechanisms
implemented to govern investments. NSR must report to the legislative committees
having jurisdiction over science and technology and economic development issues on its
activities and must recommend changes or additions to its organization, based upon its
annual assessment, including specific recommendations for necessary legislation.
new text end

Sec. 3.

new text begin [116J.6583] SMALL BUSINESS FEDERAL GRANT
COMPETITIVENESS CENTER.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin (a) The Small Business Federal Grant Competitiveness
Center is established in the Department of Employment and Economic Development, in
cooperation and consultation with North Star Rising Science and Technology Economic
Development Commission (NSR) and replaces the Office of Science and Technology.
new text end

new text begin (b) For purposes of this section, "the center" means the Small Business Federal
Grant Competitiveness Center.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The center shall:
new text end

new text begin (1) focus on increasing science and technology jobs by increasing the funding success
rate of Small Business Innovation Research and Small Business Technology Transfer
Programs (SBIR/STTR) and other federal grant and contract proposals, particularly as
submitted by Minnesota development stage companies to the National Institutes of Health,
the National Science Foundation, the Department of Defense, and other federal agencies;
new text end

new text begin (2) coordinate with technical assistance centers, trade organizations, regional
economic development agencies, and corporations in Minnesota to maximize opportunities
for small businesses and small business innovation research programs located in the state;
new text end

new text begin (3) set a performance objective of increasing the successful SBIR/STTR Phase I and
Phase II programs and related federal grants and contracts awarded to businesses located
in this state by 33 percent by July 31, 2011;
new text end

new text begin (4) provide the administrative management of any programs established to provide
matching funds for SBIR/STTR or other federal grant awards to small businesses,
following the guidelines established by North Star Rising; and
new text end

new text begin (5) provide resources needed to meet the performance objective described in clause
(3) by July 31, 2011. The resources may include but are not limited to the following:
new text end

new text begin (i) entering into contracts with grant writing and management consultants and
technical consultants to provide services to small businesses for grant proposal preparation
and award management, including presubmission technical review services where
appropriate;
new text end

new text begin (ii) providing access to market research related to preparing commercialization
plans for grant proposals;
new text end

new text begin (iii) providing training in federal grant financial management and reporting
requirements, including using specific accounting software that may be required to meet
reporting requirements;
new text end

new text begin (iv) facilitating access to university laboratories and researchers that may be needed
to obtain technical information, assist the small business with research plan development,
and provide access to analytical instrumentation, laboratories, animal testing, and any other
resources that may be required either for grant proposal preparation or for collaborative
research and subcontract development during the course of a funded grant project;
new text end

new text begin (v) providing free or subsidized access to technical and business library services that
may be operated by the state, state-funded universities, and not-for-profit organizations in
the state; and
new text end

new text begin (vi) developing other programs that may enhance the outcome success of Minnesota
companies competing for federal grants.
new text end

new text begin new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin The center is located and operated within the Department
of Employment and Economic Development and reports to NSR. The staff of the former
Office of Science and Technology shall operate the center supplemented by a support
person and technical staff person to operate the center and prepare its initial business plan
and program of services. The former director of the Office of Science and Technology is
executive director of the center. Additional staff may be hired once a business plan has
been developed and approved by North Star Rising. The development plan must include
the percentage of funds used for grants, loans, and operating expenses.
new text end

new text begin Subd. 4. new text end

new text begin Powers. new text end

new text begin The center may exercise those powers, privileges, and authorities
that the Department of Employment and Economic Development and North Star Rising
may invest in it.
new text end

new text begin Subd. 5. new text end

new text begin Limitations. new text end

new text begin The center shall not use any state funds to construct or
renovate a building for its own use.
new text end

Sec. 4.

new text begin [116J.6585] MINNESOTA COMMERCIALIZATION ENHANCEMENT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin The Minnesota commercialization enhancement program
is established under North Star Rising to support the commercialization of new products
and services created through SBIR/STTR research and development projects. The
program is designed to provide commercialization costs and to otherwise reduce the
time-to-commercial market of SBIR/STTR developed technologies.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The Minnesota commercialization enhancement program shall
award grants to enhance the likelihood of successful commercialization of new products
and services resulting from SBIR/STTR program-supported research and development.
The grants must be used to:
new text end

new text begin (1) support thoughtfully structured commercialization plans of SBIR/STTR Phase II
recipients;
new text end

new text begin (2) accelerate and enhance commercial impacts of SBIR/STTR technologies; and
new text end

new text begin (3) establish and enhance successful technology-based businesses in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Proposals. new text end

new text begin (a) North Star Rising must solicit proposals for projects
involving an active Phase II contract or grant with a federal agency. Proposals must
outline how the Minnesota commercialization enhancement program funds will be used to
accelerate commercialization activities including, but not limited to, the following:
new text end

new text begin (1) intellectual property protection;
new text end

new text begin (2) market analysis;
new text end

new text begin (3) business development;
new text end

new text begin (4) cost engineering;
new text end

new text begin (5) manufacturing planning; and
new text end

new text begin (6) sourcing of materials, systems, or other partners.
new text end

new text begin (b) Requests for proposals must be posted in a timely manner on North Star Rising's
Web site and wherever else NSR deems necessary.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin An applicant is eligible for a Minnesota commercialization
enhancement program grant if:
new text end

new text begin (1) the applicant has a principal place of business in Minnesota;
new text end

new text begin (2) the applicant is a small business that has received a SBIR/STTR Phase II award
that is active at time of proposal submission;
new text end

new text begin (3) at least 50 percent of the federal program dollars are expended prior to
submission of a proposal;
new text end

new text begin (4) the applicant provides evidence in the proposal of current progress toward
achievement of Phase II objectives; and
new text end

new text begin (5) the technology being commercialized is directly related to the technology funded
under the SBIR/STTR Phase II award.
new text end

new text begin Subd. 5. new text end

new text begin Limitations. new text end

new text begin There is no limit as to the number of proposals that a single
company may submit. However, only one grant per company may be awarded per award
cycle, as established by NSR.
new text end

new text begin Subd. 6. new text end

new text begin Use of appropriation. new text end

new text begin Depending on funding allocated to this program,
North Star Rising may elect to increase the amount per award from $250,000 up to a
maximum award of $500,000 per individual grant. The awards must be made with
performance periods of up to two years and are contingent on the availability of funds.
new text end

Sec. 5. new text begin BIOBUSINESS ALLIANCE APPROPRIATION.
new text end

new text begin (a) $1,100,000 is appropriated each year in fiscal years 2010 and 2011 from the
general fund to the commissioner of employment and economic development for the
operation of the BioBusiness Alliance of Minnesota. Funds must be used to:
new text end

new text begin (1) create, recruit, retain, and expand biobusiness activity in Minnesota;
new text end

new text begin (2) implement the destination 2025 statewide plan to promote the growth of
biobusiness in Minnesota including medical devices, biologics, biopharmaceuticals,
animal health, food, renewable energy, and renewable materials business activity in
Minnesota;
new text end

new text begin (3) update a statewide assessment of the bioscience industry and the competitive
position of Minnesota-based bioscience businesses relative to other states and other
nations; and
new text end

new text begin (4) develop and implement business and scenario-planning models to create, recruit,
retain, and expand biobusiness activity in Minnesota.
new text end

new text begin (b) The BioBusiness Alliance must report each year by February 15 to the
committees of the house of representatives and the senate having jurisdiction over
bioscience industry activity in Minnesota on:
new text end

new text begin (1) the use of funds;
new text end

new text begin (2) the number of bioscience businesses and jobs created, recruited, retained, or
expanded in the state since the last reporting period;
new text end

new text begin (3) the competitive position of the biobusiness industry; and
new text end

new text begin (4) utilization rates and results of the business and scenario-planning models and
outcomes resulting from utilization of the business and scenario-planning models.
new text end

Sec. 6. new text begin NORTH STAR RISING SCIENCE AND TECHNOLOGY ECONOMIC
DEVELOPMENT COMMISSION; APPROPRIATION; REPORT.
new text end

new text begin (a) $500,000 in fiscal year 2010 and $500,000 in fiscal year 2011 are appropriated
from the general fund to the commissioner of employment and economic development for
the creation and implementation of North Star Rising Science and Technology Economic
Development Commission (NSR) to design, coordinate, and administer a strategic science
and technology program for the state, to promote the welfare of the people of the state,
to maximize the economic growth of the state, and to create and retain jobs in the state's
industrial base, under Minnesota Statutes, section 116J.6581.
new text end

new text begin (b) By January 1, 2010, NSR must file a report to the legislature on its progress
in implementing its objectives.
new text end

new text begin (c) By October 2010, NSR shall submit to the governor and the legislature a
recommendation for a governance structure for NSR, whether that be a government
commission, a not-for-profit economic development corporation, or some other alternative
that will achieve the objectives listed under Minnesota Statutes, section 116J.6581,
subdivision 1, paragraph (a), as well as an expanded plan for the programs to be
established under NSR and the scope of appropriations and bonding that will be required
to implement that plan.
new text end

new text begin (d) By January 2011, NSR will submit to the governor and the legislature a
ten-year strategic science and technology plan for the state, together with its updated
recommendations for the programs and scope of appropriations and bonding that will be
required to implement and maintain NSR.
new text end

Sec. 7. new text begin SMALL BUSINESS FEDERAL GRANT COMPETITIVENESS
CENTER; APPROPRIATION.
new text end

new text begin $1,000,000 in fiscal year 2010 and $1,000,000 in fiscal year 2011 are appropriated
from the general fund to the commissioner of employment and economic development
for grants to small businesses under Minnesota Statutes, section 116J.6583, to be used
for consulting services that provide assistance with grant identification and preparation,
including access to costly market research and patent search services needed to write a
commercially viable grant.
new text end

Sec. 8. new text begin MINNESOTA COMMERCIALIZATION ENHANCEMENT PROGRAM;
APPROPRIATION.
new text end

new text begin $2,000,000 is appropriated in the 2010-2011 biennium for the Minnesota
commercialization enhancement program under Minnesota Statutes, section 116J.6585,
for matching grants. A total of eight grants must be made to eligible applicants each in the
amount of $250,000. Only one grant per company is allowed.
new text end

Sec. 9. new text begin INTERNSHIPS; APPROPRIATION.
new text end

new text begin $250,000 in fiscal year 2010 and $250,000 in fiscal year 2011 are appropriated
from the general fund to the commissioner of employment and economic development in
cooperation with the North Star Rising Science and Technology Economic Development
Commission for internships for university researchers or student interns at a small
company or for industry researchers to intern at a university laboratory. The program may
reimburse up to 50 percent of the intern's wages, but no more than $3,000 per intern.
new text end

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 116J.657, new text end new text begin is repealed.
new text end