1.1 	A bill for an act
1.2 	relating to economic development; providing for efficient government 
1.3 	involvement with future science- and technology-specific economic 
1.4 	development; defining terms; requiring a report;proposing coding for new law 
1.5 	in Minnesota Statutes, chapter 116J.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [116J.658] DEFINITIONS.
1.8 		Subdivision 1.Definition. For the purposes of sections 116J.6581 to 116J.6587, 
1.9 	"SBIR/STTR" means Small Business Innovation Research and Small Business 
1.10 	Technology Transfer programs.

1.11 	Sec. 2. [116J.6581] MINNESOTA SCIENCE AND TECHNOLOGY ECONOMIC 
1.12 	DEVELOPMENT ASSISTANCE.
1.13 	(a) The commissioner of employment and economic development shall lead a 
1.14 	public-private project with science and technology experts from public, academic, and 
1.15 	private sectors to advise state agency collaboration to design, coordinate, and administer a 
1.16 	strategic science and technology program for the state designed to promote the welfare of 
1.17 	the people of the state, maximize the economic growth of the state, and create and retain 
1.18 	jobs in the state's industrial base through enhancement of Minnesota's:
1.19 	(1) high technology research and development capabilities;
1.20 	(2) product and process innovation and commercialization;
1.21 	(3) high technology manufacturing capabilities;
1.22 	(4) science and technology business environment; and
1.23 	(5) science and technology workforce preparation.
2.1 	(b) As part of the project, the commissioner shall guide and manage the state's 
2.2 	investment in science and technology in the interest of the objectives described in 
2.3 	paragraph (a).
2.4 	(c) As part of the project, the commissioner of employment and economic 
2.5 	development shall:
2.6 	(1) contract with, retain the services of, or designate and fix the compensation of 
2.7 	financial consultants, accountants, other consultants and advisors, and other independent 
2.8 	contractors as may be necessary or desirable to carry out the objectives described in 
2.9 	paragraph (a);
2.10 	(2) make grants and loans to individuals, public agencies, private companies or 
2.11 	organizations, or joint ventures for the broad range of activities related to science and 
2.12 	technology advancement;
2.13 	(3) recommend to the legislature a series of specific programs designed to address 
2.14 	critical science and technology needs required to satisfy the objectives under paragraph (a) 
2.15 	and recommend sufficient appropriation levels for the programs;
2.16 	(4) determine the infrastructure and translational research requirements and 
2.17 	appropriations needed to create public and private centers of innovation, initially the 
2.18 	categories of nanotechnology, bioinformatics, and biomass, and select appropriate 
2.19 	academic scientists, engineers, and industry experts to design the centers and the centers' 
2.20 	missions;
2.21 	(5) establish a competitive process for the award of grants and loans designed to 
2.22 	fund the most meritorious proposals and, when appropriate, provide for peer review of 
2.23 	proposals;
2.24 	(6) set forth a plan for periodic strategic assessments of the types of state investments 
2.25 	in research, commercialization, and workforce development to create jobs and business 
2.26 	opportunities in the state and produce the most beneficial long-term improvements to 
2.27 	the economic well-being of Minnesotans;
2.28 	(7) solicit input and comments from specialized industry, professional, and other 
2.29 	relevant interest groups concerning the project's purposes;
2.30 	(8) develop a series of metrics and measures that will be applied to evaluate the 
2.31 	effectiveness of individual programs established under this section and to monitor and 
2.32 	account for effectiveness of individual grants, awards, or loans made; and
2.33 	(9) work to develop and recommend to the legislature processes for implementation 
2.34 	of the Minnesota commercialization enhancement program, the Small Business Federal 
2.35 	Grant Competitiveness Center, and other programs to advance Minnesota science and 
2.36 	technology economic development.
3.1 	(d) The commissioner of employment and economic development shall continuously 
3.2 	assess its overall effectiveness, its individual component programs, and the mechanisms 
3.3 	implemented to govern investments. The commissioner must report to the legislative 
3.4 	committees having jurisdiction over science and technology and economic development 
3.5 	issues on its activities and must recommend changes or additions to the project, based 
3.6 	upon its annual assessment, including specific recommendations for necessary legislation.

3.7 	Sec. 3. [116J.6583] SMALL BUSINESS FEDERAL GRANT 
3.8 	COMPETITIVENESS CENTER.
3.9 		Subdivision 1.Creation. (a) The Small Business Federal Grant Competitiveness 
3.10 	Center is established in the Department of Employment and Economic Development, in 
3.11 	cooperation and consultation with science and technology experts from public, academic, 
3.12 	and private sectors.
3.13 	(b) For purposes of this section, "the center" means the Small Business Federal 
3.14 	Grant Competitiveness Center.
3.15 		Subd. 2.Duties.  The center shall recommend to the legislature ways to:
3.16 	(1) focus on increasing science and technology jobs by increasing the funding success 
3.17 	rate of Small Business Innovation Research and Small Business Technology Transfer 
3.18 	programs (SBIR/STTR) and other federal grant and contract proposals, particularly as 
3.19 	submitted by Minnesota development stage companies to the National Institutes of Health, 
3.20 	the National Science Foundation, the Department of Defense, and other federal agencies;
3.21 	(2) coordinate with technical assistance centers, trade organizations, regional 
3.22 	economic development agencies, and corporations in Minnesota to maximize opportunities 
3.23 	for small businesses and small business innovation research programs located in the state;
3.24 	(3) set a performance objective of increasing the successful SBIR/STTR Phase I and 
3.25 	Phase II programs and related federal grants and contracts awarded to businesses located 
3.26 	in this state by 33 percent by July 31, 2011;
3.27 	(4) provide the administrative management of any programs established to provide 
3.28 	matching funds for SBIR/STTR or other federal grant awards to small businesses; and
3.29 	(5) provide resources needed to meet the performance objective described in clause 
3.30 	(3) by July 31, 2011. The resources may include but are not limited to the following:
3.31 	(i) entering into contracts with grant writing and management consultants and 
3.32 	technical consultants to provide services to small businesses for grant proposal preparation 
3.33 	and award management, including presubmission technical review services where 
3.34 	appropriate;
4.1 	(ii) providing access to market research related to preparing commercialization 
4.2 	plans for grant proposals;
4.3 	(iii) providing training in federal grant financial management and reporting 
4.4 	requirements, including using specific accounting software that may be required to meet 
4.5 	reporting requirements;
4.6 	(iv) facilitating access to university laboratories and researchers that may be needed 
4.7 	to obtain technical information, assist the small business with research plan development, 
4.8 	and provide access to analytical instrumentation, laboratories, animal testing, and any other 
4.9 	resources that may be required either for grant proposal preparation or for collaborative 
4.10 	research and subcontract development during the course of a funded grant project;
4.11 	(v) providing free or subsidized access to technical and business library services that 
4.12 	may be operated by the state, state-funded universities, and not-for-profit organizations in 
4.13 	the state; and
4.14 	(vi) developing other programs that may enhance the outcome success of Minnesota 
4.15 	companies competing for federal grants.
4.16 		Subd. 3.Administration. The center is located and operated within the Department 
4.17 	of Employment and Economic Development. The staff of the Office of Science and 
4.18 	Technology, supplemented by a support person and technical staff person, shall operate 
4.19 	the center and prepare its initial business plan and program of services. The director of the 
4.20 	Office of Science and Technology is executive director of the center. The development 
4.21 	plan must include the percentage of funds used for grants, loans, and operating expenses.
4.22 		Subd. 4.Powers. The center may exercise those powers, privileges, and authorities 
4.23 	that the Department of Employment and Economic Development may invest in it.
4.24 		Subd. 5.Limitations. The center shall not use any state funds to construct or 
4.25 	renovate a building for its own use.

4.26 	Sec. 4. [116J.6585] MINNESOTA COMMERCIALIZATION ENHANCEMENT 
4.27 	PROGRAM.
4.28 		Subdivision 1.Program. As part of the project as described in section 116J.6581, 
4.29 	paragraph (a), the commissioner of employment and economic development shall plan for 
4.30 	the establishment of the Minnesota commercialization enhancement program (MCEP) 
4.31 	under the Department of Employment and Economic Development to support the 
4.32 	commercialization of new products and services created through SBIR/STTR research 
4.33 	and development projects. The MCEP will be designed to provide commercialization 
4.34 	costs and to otherwise reduce the time-to-commercial market of SBIR/STTR developed 
4.35 	technologies.
5.1 		Subd. 2.Grants. The Minnesota commercialization enhancement program shall be 
5.2 	designed to award grants to enhance the likelihood of successful commercialization of 
5.3 	new products and services resulting from SBIR/STTR program-supported research and 
5.4 	development. The grants must be used to:
5.5 	(1) support thoughtfully structured commercialization plans of SBIR/STTR Phase II 
5.6 	recipients;
5.7 	(2) accelerate and enhance commercial impacts of SBIR/STTR technologies; and
5.8 	(3) establish and enhance successful technology-based businesses in Minnesota.
5.9 		Subd. 3.Proposals. (a) The MCEP must solicit proposals for projects involving 
5.10 	an active Phase II contract or grant with a federal agency. Proposals must outline how 
5.11 	the Minnesota commercialization enhancement program funds will be used to accelerate 
5.12 	commercialization activities including, but not limited to, the following:
5.13 	(1) intellectual property protection;
5.14 	(2) market analysis;
5.15 	(3) business development;
5.16 	(4) cost engineering;
5.17 	(5) manufacturing planning; and
5.18 	(6) sourcing of materials, systems, or other partners.
5.19 	(b) Requests for proposals must be posted in a timely manner on the Department of 
5.20 	Employment and Economic Development's Web site and wherever else the commissioner 
5.21 	deems necessary.
5.22 		Subd. 4.Eligibility.  An applicant is eligible for a Minnesota commercialization 
5.23 	enhancement program grant if:
5.24 	(1) the applicant has a principal place of business in Minnesota;
5.25 	(2) the applicant is a small business that has received a SBIR/STTR Phase II award 
5.26 	that is active at time of proposal submission;
5.27 	(3) at least 50 percent of the federal program dollars are expended prior to 
5.28 	submission of a proposal;
5.29 	(4) the applicant provides evidence in the proposal of current progress toward 
5.30 	achievement of Phase II objectives; and
5.31 	(5) the technology being commercialized is directly related to the technology funded 
5.32 	under the SBIR/STTR Phase II award.
5.33 		Subd. 5.Limitations. There is no limit as to the number of proposals that a single 
5.34 	company may submit. However, only one grant per company may be awarded per award 
5.35 	cycle, as established by the commissioner.
6.1 		Subd. 6.Use of appropriation. Depending on funding allocated to MCEP, the 
6.2 	commissioner shall work with science and technology experts from public, academic, and 
6.3 	private sectors to determine grant appropriation levels.

6.4 	Sec. 5. REPORT.
 6.5 	(a) By January 1, 2010, the commissioner of employment and economic 
6.6 	development must file a report to the legislature on its progress in implementing the 
6.7 	project objectives under Minnesota Statutes, section 116J.6581, paragraph (a).
6.8 	(b) By October 2010, the commissioner of employment and economic development 
6.9 	shall submit to the governor and the legislature a recommendation for a permanent 
6.10 	governance structure for an entity to manage the project under Minnesota Statutes, section 
6.11 	116J.6581, paragraph (a), whether that be a government commission, a not-for-profit 
6.12 	economic development corporation, or some other alternative that will achieve the 
6.13 	objectives listed under Minnesota Statutes, section 116J.6581, paragraph (a), as well as 
6.14 	an expanded plan for the programs to be established under the project and the scope of 
6.15 	appropriations and bonding that will be required to implement that plan.
6.16 	(c) By January 2011, the commissioner of employment and economic development 
6.17 	shall submit to the governor and the legislature a ten-year strategic science and technology 
6.18 	plan for the state, together with its updated recommendations for the programs and scope 
6.19 	of appropriations and bonding that will be required to implement and maintain the projects 
6.20 	as described in Minnesota Statutes, section 116J.6581, paragraph (a).