1.1                          A bill for an act 
  1.2             relating to agriculture; expanding the duties of the 
  1.3             board of directors of the agricultural utilization 
  1.4             research institute; allowing the board of directors 
  1.5             the discretion to establish an advisory board; 
  1.6             amending Minnesota Statutes 1996, section 116O.09, 
  1.7             subdivisions 2, 5, and 9. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 116O.09, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [DUTIES.] (a) In addition to the duties and 
  1.12  powers assigned to the institutes in section 116O.08, the 
  1.13  agricultural utilization research institute shall: 
  1.14     (1) identify the various market segments characterized by 
  1.15  Minnesota's agricultural industry, address each segment's 
  1.16  individual needs, and identify development opportunities in each 
  1.17  segment; 
  1.18     (2) develop and implement a utilization program for each 
  1.19  segment that addresses its development needs and identifies 
  1.20  techniques to meet those needs; 
  1.21     (3) coordinate research among the public and private 
  1.22  organizations and individuals specifically addressing procedures 
  1.23  to transfer new technology to businesses, farmers, and 
  1.24  individuals; and 
  1.25     (4) provide research grants to public and private 
  1.26  educational institutions and other organizations that are 
  2.1   undertaking basic and applied research that would promote the 
  2.2   development of the various agricultural industries; and 
  2.3      (5) provide financial assistance including, but not limited 
  2.4   to:  (i) direct loans, guarantees, interest subsidy payments, 
  2.5   and equity investments; and (ii) participation in loan 
  2.6   participations.  The board of directors shall establish the 
  2.7   terms and conditions of the financial assistance. 
  2.8      (b) The agricultural utilization research institute board 
  2.9   of directors, with the concurrence of the advisory board, shall 
  2.10  have the sole approval authority for establishing agricultural 
  2.11  utilization research priorities, requests for proposals to meet 
  2.12  those priorities, awarding of grants, hiring and direction of 
  2.13  personnel, and other expenditures of funds consistent with the 
  2.14  adopted and approved mission and goals of the agricultural 
  2.15  utilization research institute.  The actions and expenditures of 
  2.16  the agricultural utilization research institute are subject to 
  2.17  audit and regular annual report to the legislature in general 
  2.18  and specifically the house of representatives agriculture 
  2.19  committee, the senate agriculture and rural development 
  2.20  committee, the house of representatives appropriations 
  2.21  environment and natural resources finance committee, and the 
  2.22  senate finance committee environment and agriculture budget 
  2.23  division. 
  2.24     Sec. 2.  Minnesota Statutes 1996, section 116O.09, 
  2.25  subdivision 5, is amended to read: 
  2.26     Subd. 5.  [ADVISORY BOARD.] A 26-member advisory board 
  2.27  is may be established to identify priorities for the 
  2.28  agricultural utilization research institute.  Members of the 
  2.29  advisory board are appointed by the board.  The advisory board 
  2.30  consists of:  the chair of the Minnesota house of 
  2.31  representatives agricultural committee; the chair of the 
  2.32  Minnesota senate agricultural committee; a representative from 
  2.33  each of the ten largest agricultural-related businesses in the 
  2.34  state as determined by the corporation; a member from each of 
  2.35  the appropriate trade organizations representing producers of 
  2.36  beef cattle, dairy, corn, soybeans, pork, wheat, turkey, barley, 
  3.1   wild rice, edible beans, eggs, and potatoes; a member of the 
  3.2   Farmers's Union; and a member of the Farm Bureau.  Terms and 
  3.3   removal of members must be set by the board and members of the 
  3.4   advisory board serve without compensation but shall receive 
  3.5   their necessary and actual expenses. 
  3.6      The advisory board shall annually provide a list of 
  3.7   priorities and suggested research and marketing studies that 
  3.8   should be performed by the agricultural utilization research 
  3.9   institute. 
  3.10     Sec. 3.  Minnesota Statutes 1996, section 116O.09, 
  3.11  subdivision 9, is amended to read: 
  3.12     Subd. 9.  [MEETINGS.] The board of directors shall meet at 
  3.13  least twice each year and may hold additional meetings upon 
  3.14  giving notice in accordance with the bylaws of the institute.  
  3.15  Board meetings are subject to section 471.705, except 
  3.16  subdivision 1b as it pertains to proprietary information.  The 
  3.17  board may close any portion of a meeting during which 
  3.18  proprietary information is to be discussed.