HF 2799

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2016 01:22pm

A bill for an act
relating to economic development; capital improvements; creating a state research
and development authority; establishing a research and development fund;
authorizing the sale and issuance of state bonds; appropriating money; requiring
a report; proposing coding for new law in Minnesota Statutes, chapter 116W.

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

ARTICLE 1

RESEARCH AND DEVELOPMENT AUTHORITY

Section 1.

new text begin [116W.35] MINNESOTA RESEARCH AND DEVELOPMENT
AUTHORITY ACT.
new text end

new text begin Sections 116W.35 to 116W.58 may be cited as the "Minnesota Research and
Development Authority Act."
new text end

Sec. 2.

new text begin [116W.36] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For the purposes of this chapter, the terms in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin "Authority" means the Minnesota Research and Development
Authority under section 116W.37.
new text end

new text begin Subd. 3. new text end

new text begin Eligible recipient. new text end

new text begin "Eligible recipient" means an entity primarily operating
to create and retain jobs in key sectors of the state's industrial base and maximize the
economic growth of the state through enhancement of Minnesota's:
new text end

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

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

new text begin (3) manufacturing capabilities; or
new text end

new text begin (4) workforce training and preparation.
new text end

new text begin Subd. 4. new text end

new text begin Advisory commission. new text end

new text begin "Advisory commission" means the advisory
commission under section 116W.41.
new text end

new text begin Subd. 5. new text end

new text begin Key sectors. new text end

new text begin "Key sectors" means:
new text end

new text begin (1) health and life sciences;
new text end

new text begin (2) food science and technology;
new text end

new text begin (3) water, natural resources, and environmental science and technology;
new text end

new text begin (4) advanced manufacturing and technology;
new text end

new text begin (5) energy technology and production;
new text end

new text begin (6) computer science and information technology; and
new text end

new text begin (7) financial services.
new text end

new text begin The authority must periodically reassess whether the list of key sectors under this
subdivision should be modified and shall make recommendations to the legislature
regarding proposed modifications.
new text end

Sec. 3.

new text begin [116W.37] MINNESOTA RESEARCH AND DEVELOPMENT
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Minnesota Research and Development Authority
consists of the commissioner of employment and economic development, the commissioner
of management and budget, the commissioner of revenue, the commissioner of commerce,
the commissioner of agriculture, and the president of the University of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Chair; other officers. new text end

new text begin The commissioner of employment and economic
development shall serve as the chair and chief executive officer of the authority. The
authority shall rotate the position of vice-chair annually among its members. The
commissioner of employment and economic development shall convene the first meeting
of the authority no later than July 30, 2016. In the absence of the chair or vice-chair at
meetings of the authority, members may elect a chair for the meeting and may elect other
officers as necessary from its members.
new text end

new text begin Subd. 3. new text end

new text begin Delegation. new text end

new text begin In addition to any powers to delegate that members of the
authority have as commissioners, the commissioners may delegate to the chair, vice-chair,
or executive director their responsibilities as members of the authority for reviewing and
approving financing of eligible projects, projects that have been authorized by law, or
programs specifically authorized by resolution of the authority.
new text end

new text begin Subd. 4. new text end

new text begin Actions. new text end

new text begin (a) A majority of the authority, excluding vacancies, constitutes a
quorum to conduct its business, to exercise its powers, and for all other purposes.
new text end

new text begin (b) The authority may conduct its business by any technological means available
that allows for an interaction between members. If a meeting is conducted under this
paragraph, a specific location must be available for the public to attend the meeting and at
least one member must be present at that location.
new text end

new text begin Subd. 5. new text end

new text begin Executive director; staffing. new text end

new text begin The authority shall employ an executive
director in the unclassified service. The executive director is responsible for hiring staff
necessary to assist the executive director to carry out the duties and responsibilities of the
authority. The executive director shall perform duties required by the authority in carrying
out its responsibilities to manage and implement the funds and programs in sections
116W.35 to 116W.58, and comply with all state and federal program requirements, and
state and federal securities and tax laws and regulations. The executive director shall assist
the advisory board in fulfilling its duties under sections 116.35 to 116W.58.
new text end

new text begin Subd. 6. new text end

new text begin Administrative services. new text end

new text begin The authority shall enter into agreements for
administrative and professional services and technical support.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2026. Section 15.059,
subdivision 5, does not apply to the authority.
new text end

Sec. 4.

new text begin [116W.38] INFORMATION TECHNOLOGY.
new text end

new text begin To the extent the projects or grants approved by the authority or other work of the
authority impact state information systems, these information systems are subject to the
jurisdiction of the MN.IT services under chapter 16E.
new text end

Sec. 5.

new text begin [116W.39] POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin The Minnesota Research and Development Authority shall
design, coordinate, and administer a strategic research and development enhancement and
investment program to maximize the economic growth of the state and create and retain
jobs in key sectors of the state's industrial base through development of the state's research
and development capabilities including, but not limited to, investment in physical plant,
laboratories, and other infrastructure; increased translational research activities; product
and process innovation and commercialization; expanded manufacturing capabilities; and
workforce training and preparation. The authority must:
new text end

new text begin (1) coordinate public and private efforts to procure federal funding for collaborative
research and development projects of primary benefit to small- and medium-sized
businesses;
new text end

new text begin (2) promote contractual relationships between Minnesota businesses that are
recipients of federal grants and prime contractors and Minnesota-based subcontractors;
new text end

new text begin (3) work with Minnesota nonprofit institutions including the University of
Minnesota, Minnesota State Colleges and Universities, the Hormel Institute, and the Mayo
Clinic in promoting collaborative efforts to respond to federal funding opportunities;
new text end

new text begin (4) develop a framework for Minnesota companies to establish sole-source
relationships with federal agencies;
new text end

new text begin (5) provide grants or other forms of financial assistance to eligible recipients for
purposes of this chapter;
new text end

new text begin (6) coordinate assistance with business proposals, licensing, intellectual property
protection, commercialization, and government auditing with the University of Minnesota
and Minnesota State Colleges and Universities; and
new text end

new text begin (7) develop and implement a comprehensive research and development enhancement
and investment strategy for the state.
new text end

new text begin Subd. 2. new text end

new text begin Technology matchmaking. new text end

new text begin The authority must assist businesses in
identifying qualified suppliers and vendors through a program to serve as a conduit for
Minnesota-based companies to network with firms able to support their success. Firms
outside Minnesota can participate in the technology matchmaking network if one of the
participating companies is located in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Commercialization assistance. new text end

new text begin The authority must provide
commercialization assistance to Minnesota firms that have received a Phase I Small
Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer
(STTR) award and are submitting a Phase II proposal. Local service providers must assist
the applicant with developing and reviewing the required commercialization plan prior to
Phase II submission. The authority may provide SBIR Phase I proposal technical review.
new text end

new text begin Subd. 4. new text end

new text begin Power to sue; enter contracts. new text end

new text begin The authority may sue and be sued. The
authority may make and enter into contracts, leases, and agreements necessary to perform
its duties and exercise its powers.
new text end

new text begin Subd. 5. new text end

new text begin Gifts; grants. new text end

new text begin The authority may apply for, accept, and disburse gifts,
grants, loans, or other property from the United States, the state, private sources, or
any other source for any of its purposes. Money received by the authority under this
subdivision must be deposited in the Minnesota research and development fund under
section 116W.55, and is appropriated to the authority to carry out its duties.
new text end

new text begin Subd. 6. new text end

new text begin Contract for services. new text end

new text begin The authority may retain or contract for the
services of accountants, financial advisors, and other consultants or agents needed to
perform its duties and exercise its powers.
new text end

new text begin Subd. 7. new text end

new text begin Fees. new text end

new text begin The authority may establish and collect fees, subject to legislative
approval, for costs incurred by the authority, the Department of Employment and Economic
Development, the Department of Management and Budget, the Department of Revenue,
the Department of Commerce, the Department of Labor and Industry, and the Department
of Agriculture, including costs for personnel, professional, and administrative services.
new text end

new text begin Subd. 8. new text end

new text begin Reports. new text end

new text begin (a) The authority shall report by February 1 each year to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over finance and economic development on its progress to design, coordinate,
and administer a strategic research and development enhancement and investment
program for the state to promote the welfare of the people of the state, maximize the
economic growth of the state, and create and retain jobs in key sectors of the state's
industrial base through enhancement of Minnesota's:
new text end

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

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

new text begin (3) expanded manufacturing capabilities; and
new text end

new text begin (4) workforce training and preparation.
new text end

new text begin (b) The report must include a complete operating and financial statement covering
the authority's operations during the year, including amounts of income from all sources.
Books and records of the authority are subject to audit by the legislative auditor in the
manner prescribed for state agencies.
new text end

new text begin Subd. 9. new text end

new text begin Consultative and technical services. new text end

new text begin The authority may provide general
consultative and technical services to assist eligible projects and enter into agreements or
other transactions concerning the receipt or provision of those services.
new text end

new text begin Subd. 10. new text end

new text begin Financial information. new text end

new text begin Financial information, including credit reports,
financial statements, and net worth calculations, received or prepared by the authority
regarding financial assistance, is private data with regard to data on individuals as defined
in section 13.02, subdivision 12, and nonpublic data with regard to data not on individuals
as defined in section 13.02, subdivision 9.
new text end

new text begin Subd. 11. new text end

new text begin General. new text end

new text begin The authority shall have all powers necessary and appropriate to
fulfill its responsibilities under this chapter.
new text end

Sec. 6.

new text begin [116W.40] PROJECT FINANCIAL ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Determination of financial assistance. new text end

new text begin The authority shall assist
eligible recipients in identifying grants or other sources of financial assistance available to
finance projects and may assist eligible recipients in applying for and obtaining grants and
other forms of assistance.
new text end

new text begin Subd. 2. new text end

new text begin Financial feasibility review. new text end

new text begin (a) The authority shall review the proposed
financing for each project submitted to the authority to determine whether: (1) the
proposed project and financing plan is an eligible use of the money; and (2) the proposal is
in compliance with applicable state and federal tax and securities laws and regulations.
Grants in excess of $50,000 must be approved by the authority. Grants of $50,000 or less
may be authorized by the executive director. All grant approvals or disapprovals must
be completed within 30 days of submission to the authority. Grants approved by the
executive director must be reviewed by the authority each month.
new text end

new text begin (b) Unless a project is specifically authorized by law, the authority may reject the
proposed financing for a project meeting the requirements in paragraph (a), if there are not
sufficient funds available or if a majority of members believe the financing of the project
would not be in the best interests of the state or would be detrimental to the authority's
funds or programs. A determination to reject a proposed project must not be made in
an arbitrary and capricious manner and must be supported by substantive evidence and
documented by a resolution of the authority stating its findings.
new text end

Sec. 7.

new text begin [116W.41] ADVISORY COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Advisory commission membership. new text end

new text begin (a) A Research and
Development Initiative Advisory Commission is established and is comprised of:
new text end

new text begin (1) two representatives of the University of Minnesota, selected by the vice president
of research of the university, including a faculty member actively involved in research
and development;
new text end

new text begin (2) two representatives of the Minnesota State Colleges and Universities, selected by
the chancellor, including a faculty member actively involved in research and development;
new text end

new text begin (3) the chief executive officer of Mayo Clinic or a designee;
new text end

new text begin (4) the president or a designee of the Minnesota High Tech Association or its
successor organization;
new text end

new text begin (5) the executive director of the Hormel Institute or a designee;
new text end

new text begin (6) six chief executive officers or designees from research-oriented or
technology-oriented companies;
new text end

new text begin (7) four representatives from research-oriented or technology-oriented organizations;
new text end

new text begin (8) two representatives of organized labor;
new text end

new text begin (9) a venture capital representative;
new text end

new text begin (10) a representative of angel investors; and
new text end

new text begin (11) other members deemed appropriate by the authority in consultation with the
governor.
new text end

new text begin (b) A member must have experience in research and development in order to serve
on the commission.
new text end

new text begin (c) Members of the commission listed in clauses (6) to (11), shall be appointed by
the authority.
new text end

new text begin Subd. 2. new text end

new text begin Advisory commission duties. new text end

new text begin The advisory commission must assist
the authority in developing a comprehensive research and development enhancement
and investment plan to be presented to the chairs and ranking minority members of
the legislative committees and divisions with jurisdiction over economic development
and higher education by January 15, 2017. The plan must include recommendations in
strategic areas for research and development investments, recommendations on additional
programs to support research and development focused economic development activities
in the state, selection of specific programs and grantees for support from program funds
authorized by the advisory commission and ongoing assessment of the effectiveness
of programmatic elements according to metrics to be developed by the authority in
consultation with the advisory commission. The advisory commission may also advise
and assist the authority in fulfilling its duties under section 116W.39.
new text end

new text begin Subd. 3. new text end

new text begin Membership terms; vacancies; compensation. new text end

new text begin The membership terms,
removal of members, and filling of vacancies are as provided under section 15.059, unless
specified otherwise. The executive director may provide compensation to members if
funds are available.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The advisory commission expires June 30, 2026.
new text end

new text begin Subd. 5. new text end

new text begin Convening of meetings; staffing. new text end

new text begin The executive director of the authority
must convene the first meeting of the commission by September 1, 2016. The executive
director must provide administrative support and staff to the commission.
new text end

Sec. 8.

new text begin [116W.42] MONEY OF THE AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Functions of commissioner of management and budget. new text end

new text begin Except
as otherwise provided in this section, money of the authority must be paid to the
commissioner of management and budget as agent of the authority, and the commissioner
shall not commingle the money with other money. The money in the accounts of the
authority must be paid out only on warrants drawn by the commissioner of management
and budget on requisition of the executive director of the authority or of another officer or
employee as the authority authorizes. Deposits of the authority's money must, if required
by the commissioner or the authority, be secured by obligations of the United States or of
the state of a market value equal at all times to the amount of the deposit, and all banks
and trust companies are authorized to give security for the deposits. All money paid to the
commissioner as agent of the authority is appropriated to the authority. The commissioner
must annually report to the committees of the legislature with responsibility for economic
development and management and budget on the use of appropriations under this section.
new text end

new text begin Subd. 2. new text end

new text begin System of accounts. new text end

new text begin The commissioner of management and budget shall
prescribe a system of accounts.
new text end

Sec. 9.

new text begin [116W.43] NONLIABILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Nonliability of individuals. new text end

new text begin No member of the authority, staff of
the authority, or other person executing other agreements or contracts of the authority is
liable personally or is subject to any personal liability or accountability by reason of their
issuance, execution, delivery, or performance.
new text end

new text begin Subd. 2. new text end

new text begin Nonliability of state. new text end

new text begin The state is not liable on loans or other agreements
or contracts of the authority issued or entered into under this chapter and the loans or other
agreements or contracts of the authority are not a debt of the state. The loans or other
agreements or contracts of the authority must contain on their face a statement to that effect.
new text end

Sec. 10.

new text begin [116W.44] STATE PLEDGE AGAINST IMPAIRMENT OF
CONTRACTS.
new text end

new text begin The state pledges and agrees with parties to any loans or other agreements or
contracts of the authority that the state will not:
new text end

new text begin (1) limit or alter the rights vested in the authority to fulfill the terms of any agreements
made with the parties to any loans or other agreements or contracts of the authority; or
new text end

new text begin (2) in any way impair the rights and remedies of the parties to any loans or other
agreements or contracts of the authority.
new text end

new text begin The authority may include this pledge and agreement of the state in any agreement with
the parties in any loans or other agreements or contracts of the authority.
new text end

Sec. 11.

new text begin [116W.45] RESERVES; FUNDS; ACCOUNTS.
new text end

new text begin The authority may establish reserves, funds, or accounts necessary to carry out the
purposes of the authority or to comply with any agreement made by or any resolution
passed by the authority.
new text end

ARTICLE 2

RESEARCH AND DEVELOPMENT PROGRAM

Section 1.

new text begin [116W.46] CITATION.
new text end

new text begin Sections 116W.46 to 116W.58 may be cited as the "Minnesota Research and
Development Program."
new text end

Sec. 2.

new text begin [116W.47] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For the purposes of sections 116W.46 to 116W.58,
the terms in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin "Authority" means the Minnesota Research and Development
Authority established under sections 116W.46 to 116W.58.
new text end

new text begin Subd. 3. new text end

new text begin College or university. new text end

new text begin "College or university" means an institution of
postsecondary education, public or private, that grants undergraduate or postgraduate
academic degrees and conducts significant research or development activities within
key sectors of the state's industrial base.
new text end

new text begin Subd. 4. new text end

new text begin Commercialization. new text end

new text begin "Commercialization" means any of the full spectrum
of activities required for a new technology, product, or process to be developed from
its basic research or conceptual stage through applied research or development to the
marketplace including, without limitation, the steps leading up to and including licensure,
sales, and services.
new text end

new text begin Subd. 5. new text end

new text begin Commercialized research project. new text end

new text begin "Commercialized research project"
means research conducted within a college or university, nonprofit research institution, or
by a qualified research and development company that has shown advanced commercial
potential through license agreements, patents, or other forms of invention disclosure, and
by which a qualified research and development company has been or is being currently
formed.
new text end

new text begin Subd. 6. new text end

new text begin Fund. new text end

new text begin "Fund" means the Minnesota research and development fund
under section 116W.55.
new text end

new text begin Subd. 7. new text end

new text begin Nonprofit research institution. new text end

new text begin "Nonprofit research institution" means an
entity with its principle place of business in Minnesota, that qualifies under section 501(c)
of the Internal Revenue Code, and that conducts significant research or development
activities in this state in key sectors of the state's industrial base.
new text end

new text begin Subd. 8. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota research and development
program.
new text end

new text begin Subd. 9. new text end

new text begin Qualified research and development company. new text end

new text begin "Qualified research and
development company" means a corporation, limited liability company, S corporation,
partnership, limited liability partnership, or sole proprietorship with fewer than 100
employees that is engaged in research and development, or production of products,
processes, or services for specific commercial or public purposes within key sectors of
the state's industrial base.
new text end

Sec. 3.

new text begin [116W.48] COMMERCIALIZED RESEARCH PROGRAM.
new text end

new text begin (a) The authority may establish a commercialized research program to accelerate
the commercialization of research and development products, processes, or services
from colleges or universities, nonprofit research institutions, or qualified research and
development companies that lead to an increase in business activity and jobs in key sectors
of the state's industrial base. The program must:
new text end

new text begin (1) provide research and development gap funding of up to $500,000 per research
and development project to assist in the commercialization and transfer of research and
development projects from a college or university or nonprofit research institution to a
qualified research and development company;
new text end

new text begin (2) provide funding of up to $250,000 for early stage development for qualified
research and development companies to conduct commercialized research projects; and
new text end

new text begin (3) provide funding of up to $500,000 for loans to provide start-up capital to early
stage companies in key sectors of the state's industrial base.
new text end

new text begin (b) All activities under the commercialized research program require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the funds;
new text end

new text begin (2) matching funds by the participating qualified research and development
company, college or university, or nonprofit research institution;
new text end

new text begin (3) that no more than 15 percent of the funds awarded by the authority may be
used for administrative costs; and
new text end

new text begin (4) a report by the participating qualified research and development company,
college or university, or nonprofit research institution that provides documentation of the
use of funds and outcomes of the award. The report must be submitted to the authority
within one calendar year of the date of the award.
new text end

Sec. 4.

new text begin [116W.49] FEDERAL RESEARCH AND DEVELOPMENT SUPPORT
PROGRAM.
new text end

new text begin (a) The authority may establish a federal research and development support program
to increase and coordinate efforts to procure federal funding for research projects of
primary benefit to qualified research and development companies, colleges or universities,
and nonprofit research institutions. The program must:
new text end

new text begin (1) develop and execute a strategy to identify specific federal agencies and programs
that support the growth of research and development in key sectors of the state's industrial
base; and
new text end

new text begin (2) provide grants to qualified research and development companies:
new text end

new text begin (i) to assist in the development of federal Small Business Innovation (SBIR) or
Small Business Technology Transfer (STTR) proposals; and
new text end

new text begin (ii) to match funds received through SBIR or STTR awards. No more than
$1,500,000 may be awarded in a year for matching grants under this item.
new text end

new text begin (b) All activities under the federal research and development support program require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the funds;
new text end

new text begin (2) matching funds by the participating qualified research and development
company, college or university, or nonprofit research institution;
new text end

new text begin (3) that no more than 15 percent of the funds awarded by the authority may be
used for administrative costs; and
new text end

new text begin (4) a report by the participating qualified research and development company,
college or university, or nonprofit research institution that provides documentation of the
use of funds and outcomes of the award. The report must be submitted to the authority
within one calendar year of the date of the award.
new text end

Sec. 5.

new text begin [116W.50] INDUSTRIAL TECHNOLOGY INNOVATION AND
COMPETITIVENESS PROGRAM.
new text end

new text begin (a) The authority may establish an industrial technology innovation and
competitiveness program to advance the technological capacity and competitiveness of
existing and emerging research and development industries. The program must:
new text end

new text begin (1) provide matching funds to programs and organizations that assist entrepreneurs
in starting and growing qualified research and development companies including, but not
limited to, matching funds for mentoring programs, consulting and technical services,
and related activities;
new text end

new text begin (2) fund initiatives that retain engineering, science, technology, and mathematical
occupations in the state including, but not limited to, internships, mentoring, and support
of industry and professional organizations; and
new text end

new text begin (3) fund initiatives that support the growth of targeted industry clusters in key
sectors and the competitiveness of existing qualified research and development companies
in developing and marketing new products and services.
new text end

new text begin (b) All activities under the industrial technology innovation and competitiveness
program shall require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the
funds; and
new text end

new text begin (2) a report by each award recipient providing documentation on the use of the funds
and outcomes of the award. The report must be submitted to the authority within one
calendar year from the date of the award.
new text end

Sec. 6.

new text begin [116W.51] CAPITAL INNOVATIONS PROGRAM.
new text end

new text begin (a) The authority may establish a capital innovations program to provide grants to
maintain and strengthen the state's position as a leader in key sectors of the industrial
base throughout the state. Grants may be used to construct or improve infrastructure for
new research, development, and innovation activities at or conducted in partnership with
public and private institutions. The authority shall give priority to projects to restore or
develop and construct research, development, and innovation infrastructure throughout
the state. Preference must be given to projects that include at least a ... percent match
of nonstate funds.
new text end

new text begin (b) All activities under the capital innovations program require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the funds;
new text end

new text begin (2) matching funds by award recipients;
new text end

new text begin (3) unless otherwise prohibited, up to 15 percent of the funds awarded by the
authority may be used for administrative costs; and
new text end

new text begin (4) a report by each award recipient that provides documentation of the use of funds
and outcomes of the award. The report must be submitted to the authority within one
calendar year of the date of the award.
new text end

Sec. 7.

new text begin [116W.52] MINNESOTA SCIENCE, TECHNOLOGY, ENGINEERING,
MATH, AND MANUFACTURING (STEMM) GRANT PROGRAM.
new text end

new text begin (a) The authority may establish a Minnesota science, technology, engineering, math,
and manufacturing grant program to provide equipment and supplies to support STEMM
education and training programs, including education and training in the technological
skills needed for manufacturing jobs, for students in grades 7 through 12 who are:
enrolled in eligible schools located in Minnesota; or receiving STEMM education and
training programs or services from nonprofit organizations. For the purposes of this
section, "eligible schools" means a public school or nonpublic school that is accredited
by an accrediting agency recognized according to section 123B.445, or recognized by
the commissioner of education. The maximum grant award under this section may not
exceed $100,000 per eligible school. Applicants seeking funding in excess of $50,000
must demonstrate the availability of nonpublic matching funds provided by an industry
partner or foundation.
new text end

new text begin (b) All activities under paragraph (a) require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the funds;
new text end

new text begin (2) that no more than 15 percent of the funds awarded by the authority may be
used for administrative costs; and
new text end

new text begin (3) a report by the participating school or nonprofit organization that provides
documentation of the use of funds and outcomes of the award. The report must be
submitted to the authority within one calendar year of the date of the award.
new text end

Sec. 8.

new text begin [116W.53] HIGH SCHOOL OPPORTUNITY INTERNSHIP PROGRAM.
new text end

new text begin (a) The authority may establish a high school opportunity internship program
to provide opportunities for high school age students to observe and experience
manufacturing, laboratory, and other job environments in key sector industries. The
authority must work with eligible schools, host companies and other organizations to
implement the program.
new text end

new text begin (b) All activities under paragraph (a) require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the funds;
new text end

new text begin (2) matching funds by the participating eligible school or nonprofit organization;
new text end

new text begin (3) that no more than 15 percent of the funds awarded by the authority may be
used for administrative costs; and
new text end

new text begin (4) a report by the participating schools, host companies, or nonprofit organization
that provides documentation of the use of funds and outcomes of the award. The report
must be submitted to the authority within one calendar year of the date of the award.
new text end

Sec. 9.

new text begin [116W.54] CHALLENGE INTERNSHIP PROGRAM.
new text end

new text begin (a) The authority may establish a grant program to promote science, technology,
engineering, math, and manufacturing (STEMM) internship opportunities for young
adults aged 18 to 25. The program shall match young adults with paid internships within
STEMM disciplines at companies operating in key sector industries throughout the state.
Host companies may receive up to 50 percent of wages paid to an intern. The authority
must develop an evaluation of the internship program that includes information about
postinternship employment.
new text end

new text begin (b) All activities under paragraph (a) require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the funds;
new text end

new text begin (2) that no more than 15 percent of the funds awarded by the authority may be
used for administrative costs; and
new text end

new text begin (3) a report by each award recipient that provides documentation of the use of funds
and outcomes of the award. The report must be submitted to the authority within one
calendar year of the date of the award.
new text end

Sec. 10.

new text begin [116W.55] MINNESOTA RESEARCH AND DEVELOPMENT FUND.
new text end

new text begin (a) A Minnesota research and development fund is created in the state treasury.
The fund is a direct-appropriated special revenue fund. Money of the authority must be
paid to the commissioner of management and budget as agent of the authority, and the
commissioner shall not commingle the money with other money. The money in the fund
must be paid out only on warrants drawn by the commissioner of management and budget
on requisition of the executive director of the authority or designee.
new text end

new text begin (b) Funds available to the authority under this section may be expended by the
authority for any purpose authorized under this chapter.
new text end

Sec. 11.

new text begin [116W.56] MINNESOTA RESEARCH AND DEVELOPMENT
AUTHORITY; POWERS UNDER FUND.
new text end

new text begin Subdivision 1. new text end

new text begin General powers. new text end

new text begin The authority shall have all of the powers
necessary to carry out the purposes and provisions of sections 116W.35 to 116W.58
including, but not limited to, those provided under section 116W.39 and the following:
new text end

new text begin (1) the authority may make awards in the form of grants or loans, and charge and
receive a reasonable interest for the loans, or take an equity position in form of stock, a
convertible note, or other securities in consideration of an award. Interests, revenues, or
other proceeds received as a result of a transaction authorized by use of the fund shall be
deposited to the corpus of the fund and used in the same manner as the corpus of the fund;
new text end

new text begin (2) in awarding money from the fund, priority shall be given to proposals from
applicants that have demonstrable economic benefit to the state in terms of the formation
of a new private sector business entity, the creation of jobs, or the attraction of federal
and private funding;
new text end

new text begin (3) in awarding money from the fund, priority shall be given to proposals from
applicants that:
new text end

new text begin (i) promote collaboration between any combination of colleges or universities,
nonprofit research institutions, and private industry;
new text end

new text begin (ii) enhance existing research superiority by attracting new research entities,
research talent, or resources to the state; and
new text end

new text begin (iii) create new research superiority that attracts significant researchers and resources
from outside the state;
new text end

new text begin (4) subject to the limits in this clause, money within the fund may be used
for reasonable administrative expenses by the authority including staffing and direct
operational expenses, and professional fees for accounting, legal, and other technical
services required to carry out the intent of the program and administration of the fund.
Administrative expenses may not exceed five percent of the first $5,000,000 in the fund
and two percent of any amount in excess of $5,000,000;
new text end

new text begin (5) before making an award, the authority shall enter into a written agreement with
the entity receiving the award that specifies the uses of the award; and
new text end

new text begin (6) if the award recipient has not used the award received for the purposes intended,
as of the date provided in the agreement, the recipient shall repay that amount and any
interest applicable under the agreement to the authority. All repayments must be deposited
to the corpus of the fund.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The authority may adopt rules to implement the programs
authorized under this chapter.
new text end

Sec. 12.

new text begin [116W.57] REPAYMENT.
new text end

new text begin An entity must repay all or a portion of the amount of any award, grant, loan, or
financial assistance of any type paid by the authority under sections 116W.40 and 116W.48
to 116W.54, if the entity relocates outside the state or ceases operation in Minnesota
within four years from the date the authority provided the financial award. If the entity
relocates outside of this state or ceases operation in Minnesota within three years of the
financial award, the entity must repay 100 percent of the award. If the entity relocates or
ceases operation in Minnesota after a period of three years, but before four years from the
date of the financial award, the entity must repay 75 percent of the financial award.
new text end

Sec. 13.

new text begin [116W.58] EXPIRATION.
new text end

new text begin Sections 116W.46 to 116W.56 expire on the expiration date of the authority under
section 116W.37, subdivision 7. Section 116W.57 expires four years from the date of
the expiration of the authority. Any unused money in the fund shall be deposited in the
general fund.
new text end

Sec. 14. new text begin BOND SALE.
new text end

new text begin To provide the money appropriated in section 15 from the bond proceeds fund, the
commissioner of management and budget shall sell and issue bonds of the state in an
amount up to $500,000,000 in the manner, upon the terms, and with the effect prescribed
by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution,
article XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15. new text begin BOND APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $500,000,000 is appropriated from the bond
proceeds fund to the research and development authority to make grants to eligible public
entities under the capital innovations program under Minnesota Statutes, section 116W.51,
to predesign, design, acquire land or an interest in land, construct, reconstruct, renovate,
furnish, equip, and make other related publicly owned infrastructure improvements.
new text end

new text begin Subd. 2. new text end

new text begin Schedule. new text end

new text begin This appropriation is for $50,000,000 each year in fiscal years
2017 through 2026.
new text end

new text begin Subd. 3. new text end

new text begin Cancellation. new text end

new text begin The appropriation under this section is not subject to
Minnesota Statutes, section 16A.642.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16. new text begin APPROPRIATION.
new text end

new text begin $500,000,000 in fiscal year 2017 is appropriated from the general fund to the
commissioner of management and budget for deposit into the Minnesota research and
development fund. This appropriation is available until expended.
new text end