as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 02/02/1998 |
1.1 A bill for an act 1.2 relating to economic development; modifying Minnesota 1.3 Technology, Inc.'s seed capital fund; amending 1.4 Minnesota Statutes 1996, section 116O.122, as amended; 1.5 Minnesota Statutes 1997 Supplement, section 116O.05, 1.6 subdivision 4. 1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 1997 Supplement, section 1.9 116O.05, subdivision 4, is amended to read: 1.10 Subd. 4. [SUPPORTING ORGANIZATIONS.] On making a 1.11 determination that the public policies and purposes of this 1.12 chapter will be carried out to a greater extent than what might 1.13 otherwise occur, the board may cause to be created and may 1.14 delegate, assign, or transfer to one or more entities, including 1.15 without limitation a corporation, nonprofit corporation, limited 1.16 liability company, partnership, or limited partnership, any or 1.17 all rights and duties, assets and liabilities, powers or 1.18 authority created, authorized, or allowed under this chapter, 1.19 including without limitation those pertaining to theseed1.20capitalequity fund under section 116O.122, except to the extent 1.21 specifically limited by the constitution or by law. 1.22 Sec. 2. Minnesota Statutes 1996, section 116O.122, as 1.23 amended by Laws 1997, chapter 200, article 1, section 62, is 1.24 amended to read: 1.25 116O.122 [SEED CAPITALEQUITY FUND.] 1.26 Subdivision 1. [ESTABLISHMENT.] The corporation shall, in 2.1 consultation with private venture and seed capital companies and 2.2 other public and private organizations as appropriate,implement2.3 facilitate the implementation of a centrally managedseed2.4capitalequity fund to invest in early stage companies and small 2.5 companies in Minnesota through equity or equity-type 2.6 investments. Theseed capitalequity fund may receive 2.7 contributions from the corporation, as well as from local, 2.8 state, or federal government, private foundations, private 2.9 investors, pension funds, or other sources.Total investments2.10by the seed capital fund in seven-county metropolitan area based2.11companies must not exceed 20 percent of the total capitalization2.12appropriated by the legislature or provided by the corporation.2.13Investments which contribute to the 20 percent metropolitan area2.14limitation are those which will primarily enhance the operations2.15of a metropolitan based facility. Investments that benefit a2.16Greater Minnesota facility of a metropolitan based company are2.17not subject to the limitation.The fund may be established 2.18 outside of the corporation. The corporation may invest in the 2.19 fund so long as its primary investment market is Minnesota, with 2.20 a focus on greater Minnesota. The corporation's investmentsby2.21 in theseed capitalequity fund must be matched by other sources 2.22 of capital at a ratioto be determined by the corporationof 2.23 three to one. Theseed capitalequity fund shall identify 2.24 sources of technical, management, and marketing assistance 2.25 for funded companiesfunded by the seed capital programand make 2.26 appropriate referrals. Theseed capitalequity fund shall 2.27 establish a procedure for liquidating private investments. 2.28 Subd. 2. [REGIONALSEED CAPITALEQUITY REPORT.] By 2.29 February 15, the board shall submit to the legislature and 2.30 governor an annual report on the activities of theseed capital2.31 equity program.