HF 3142

Introduction - 85th Legislature (2007 - 2008)

Posted on 12/15/2009 12:00 a.m.

A bill for an act
relating to state government; encouraging the State Board of Investment to make
certain of its venture capital investments in Minnesota businesses; requiring
reporting; amending Minnesota Statutes 2006, section 11A.24, by adding
subdivisions.

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

Section 1.

Minnesota Statutes 2006, section 11A.24, is amended by adding a
subdivision to read:

new text begin Subd. 6a. new text end

new text begin Minnesota venture capital investments. new text end

new text begin The board must attempt to
ensure that at least one percent of the value of its private equity investments are in venture
capital businesses, a majority of whose employees are in Minnesota. The board must
report to the legislature by January 15 each year on compliance with this subdivision
during the fiscal year ending the prior June 30.
new text end

Sec. 2.

Minnesota Statutes 2006, section 11A.24, is amended by adding a subdivision
to read:

new text begin Subd. 6b. new text end

new text begin Venture capital reporting. new text end

new text begin (a) Before committing money to a venture
capital manager, the board must require the manager to:
new text end

new text begin (1) provide the board an initial written estimate and agree to provide an annual
update of the number of jobs that will be created with money the board is investing and
the number of these jobs anticipated to be located in Minnesota;
new text end

new text begin (2) provide the board an annual written summary of the number of businesses
the manager considered investing in with assets provided by the board, the number
of businesses the manager actually invested in with these assets, and the number of
businesses considered and actually invested in that are based in Minnesota; and
new text end

new text begin (3) agree to provide the legislative auditor information the auditor requests for
purposes of the auditor's report under subdivision 6c.
new text end

new text begin (b) By January 15 each year, the board must report to the legislative auditor:
new text end

new text begin (1) the number of new venture capital managers that the board considered for board
investment, and the primary office location of those managers;
new text end

new text begin (2) the names of new venture capital managers selected by the board, and the
primary office location of those managers;
new text end

new text begin (3) the names of all venture capital managers investing money for the board during
the year covered by the report, and the primary office location of those managers;
new text end

new text begin (4) all information submitted to the board by venture capital managers under
paragraph (a); and
new text end

new text begin (5) any other information requested by the legislative auditor, as necessary to
produce the report required in subdivision 6c.
new text end

Sec. 3.

Minnesota Statutes 2006, section 11A.24, is amended by adding a subdivision
to read:

new text begin Subd. 6c. new text end

new text begin Effect on venture capital investments on Minnesota jobs. new text end

new text begin By July 1
each year, the legislative auditor must report to the legislature on the net impact of the
State Board of Investment's venture capital investments on jobs in Minnesota during
the year ending June 30 of the prior year.
new text end

Sec. 4. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin Sections 1 to 3 are effective July 1, 2008. The board's first report to the legislature
under section 1 is due January 15, 2009. The board's first report to the legislative auditor
under section 2 is due January 15, 2009. The legislative auditor's first report under section
3 is due July 1, 2009.
new text end