SF 1882

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:24am

A bill for an act
relating to economic development; providing for efficient government
involvement with future science- and technology-specific economic
development; defining terms; requiring a report; proposing coding for new law
in Minnesota Statutes, chapter 116J.

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

Section 1.

new text begin [116J.658] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of sections 116J.6581 to 116J.6587,
"SBIR/STTR" means Small Business Innovation Research and Small Business
Technology Transfer programs.
new text end

Sec. 2.

new text begin [116J.6581] MINNESOTA SCIENCE AND TECHNOLOGY ECONOMIC
DEVELOPMENT ASSISTANCE.
new text end

new text begin (a) The commissioner of employment and economic development shall lead a
public-private project with science and technology experts from public, academic, and
private sectors to advise state agency collaboration to design, coordinate, and administer a
strategic science and technology program for the state designed to promote the welfare of
the people of the state, maximize the economic growth of the state, and create and retain
jobs in the state's industrial base through enhancement of Minnesota's:
new text end

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

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

new text begin (3) high technology manufacturing capabilities;
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new text begin (4) science and technology business environment; and
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new text begin (5) science and technology workforce preparation.
new text end

new text begin (b) As part of the project, the commissioner shall guide and manage the state's
investment in science and technology in the interest of the objectives described in
paragraph (a).
new text end

new text begin (c) As part of the project, the commissioner of employment and economic
development shall:
new text end

new text begin (1) contract with, retain the services of, or designate and fix the compensation of
financial consultants, accountants, other consultants and advisors, and other independent
contractors as may be necessary or desirable to carry out the objectives described in
paragraph (a);
new text end

new text begin (2) make grants and loans to individuals, public agencies, private companies or
organizations, or joint ventures for the broad range of activities related to science and
technology advancement;
new text end

new text begin (3) recommend to the legislature a series of specific programs designed to address
critical science and technology needs required to satisfy the objectives under paragraph (a)
and recommend sufficient appropriation levels for the programs;
new text end

new text begin (4) determine the infrastructure and translational research requirements and
appropriations needed to create public and private centers of innovation, initially the
categories of nanotechnology, bioinformatics, and biomass, and select appropriate
academic scientists, engineers, and industry experts to design the centers and the centers'
missions;
new text end

new text begin (5) establish a competitive process for the award of grants and loans designed to
fund the most meritorious proposals and, when appropriate, provide for peer review of
proposals;
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new text begin (6) set forth a plan for periodic strategic assessments of the types of state investments
in research, commercialization, and workforce development to create jobs and business
opportunities in the state and produce the most beneficial long-term improvements to
the economic well-being of Minnesotans;
new text end

new text begin (7) solicit input and comments from specialized industry, professional, and other
relevant interest groups concerning the project's purposes;
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new text begin (8) develop a series of metrics and measures that will be applied to evaluate the
effectiveness of individual programs established under this section and to monitor and
account for effectiveness of individual grants, awards, or loans made; and
new text end

new text begin (9) work to develop and recommend to the legislature processes for implementation
of the Minnesota commercialization enhancement program, the Small Business Federal
Grant Competitiveness Center, and other programs to advance Minnesota science and
technology economic development.
new text end

new text begin (d) The commissioner of employment and economic development shall continuously
assess its overall effectiveness, its individual component programs, and the mechanisms
implemented to govern investments. The commissioner must report to the legislative
committees having jurisdiction over science and technology and economic development
issues on its activities and must recommend changes or additions to the project, based
upon its annual assessment, including specific recommendations for necessary legislation.
new text end

Sec. 3.

new text begin [116J.6583] SMALL BUSINESS FEDERAL GRANT
COMPETITIVENESS CENTER.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin (a) The Small Business Federal Grant Competitiveness
Center is established in the Department of Employment and Economic Development, in
cooperation and consultation with science and technology experts from public, academic,
and private sectors.
new text end

new text begin (b) For purposes of this section, "the center" means the Small Business Federal
Grant Competitiveness Center.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The center shall recommend to the legislature ways to:
new text end

new text begin (1) focus on increasing science and technology jobs by increasing the funding success
rate of Small Business Innovation Research and Small Business Technology Transfer
programs (SBIR/STTR) and other federal grant and contract proposals, particularly as
submitted by Minnesota development stage companies to the National Institutes of Health,
the National Science Foundation, the Department of Defense, and other federal agencies;
new text end

new text begin (2) coordinate with technical assistance centers, trade organizations, regional
economic development agencies, and corporations in Minnesota to maximize opportunities
for small businesses and small business innovation research programs located in the state;
new text end

new text begin (3) set a performance objective of increasing the successful SBIR/STTR Phase I and
Phase II programs and related federal grants and contracts awarded to businesses located
in this state by 33 percent by July 31, 2011;
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new text begin (4) provide the administrative management of any programs established to provide
matching funds for SBIR/STTR or other federal grant awards to small businesses; and
new text end

new text begin (5) provide resources needed to meet the performance objective described in clause
(3) by July 31, 2011. The resources may include but are not limited to the following:
new text end

new text begin (i) entering into contracts with grant writing and management consultants and
technical consultants to provide services to small businesses for grant proposal preparation
and award management, including presubmission technical review services where
appropriate;
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new text begin (ii) providing access to market research related to preparing commercialization
plans for grant proposals;
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new text begin (iii) providing training in federal grant financial management and reporting
requirements, including using specific accounting software that may be required to meet
reporting requirements;
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new text begin (iv) facilitating access to university laboratories and researchers that may be needed
to obtain technical information, assist the small business with research plan development,
and provide access to analytical instrumentation, laboratories, animal testing, and any other
resources that may be required either for grant proposal preparation or for collaborative
research and subcontract development during the course of a funded grant project;
new text end

new text begin (v) providing free or subsidized access to technical and business library services that
may be operated by the state, state-funded universities, and not-for-profit organizations in
the state; and
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new text begin (vi) developing other programs that may enhance the outcome success of Minnesota
companies competing for federal grants.
new text end

new text begin new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin The center is located and operated within the Department
of Employment and Economic Development. The staff of the Office of Science and
Technology, supplemented by a support person and technical staff person, shall operate
the center and prepare its initial business plan and program of services. The director of the
Office of Science and Technology is executive director of the center. The development
plan must include the percentage of funds used for grants, loans, and operating expenses.
new text end

new text begin Subd. 4. new text end

new text begin Powers. new text end

new text begin The center may exercise those powers, privileges, and authorities
that the Department of Employment and Economic Development may invest in it.
new text end

new text begin Subd. 5. new text end

new text begin Limitations. new text end

new text begin The center shall not use any state funds to construct or
renovate a building for its own use.
new text end

Sec. 4.

new text begin [116J.6585] MINNESOTA COMMERCIALIZATION ENHANCEMENT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin As part of the project as described in section 116J.6581,
paragraph (a), the commissioner of employment and economic development shall plan for
the establishment of the Minnesota commercialization enhancement program (MCEP)
under the Department of Employment and Economic Development to support the
commercialization of new products and services created through SBIR/STTR research
and development projects. The MCEP will be designed to provide commercialization
costs and to otherwise reduce the time-to-commercial market of SBIR/STTR developed
technologies.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The Minnesota commercialization enhancement program shall be
designed to award grants to enhance the likelihood of successful commercialization of
new products and services resulting from SBIR/STTR program-supported research and
development. The grants must be used to:
new text end

new text begin (1) support thoughtfully structured commercialization plans of SBIR/STTR Phase II
recipients;
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new text begin (2) accelerate and enhance commercial impacts of SBIR/STTR technologies; and
new text end

new text begin (3) establish and enhance successful technology-based businesses in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Proposals. new text end

new text begin (a) The MCEP must solicit proposals for projects involving
an active Phase II contract or grant with a federal agency. Proposals must outline how
the Minnesota commercialization enhancement program funds will be used to accelerate
commercialization activities including, but not limited to, the following:
new text end

new text begin (1) intellectual property protection;
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new text begin (2) market analysis;
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new text begin (3) business development;
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new text begin (4) cost engineering;
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new text begin (5) manufacturing planning; and
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new text begin (6) sourcing of materials, systems, or other partners.
new text end

new text begin (b) Requests for proposals must be posted in a timely manner on the Department of
Employment and Economic Development's Web site and wherever else the commissioner
deems necessary.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin An applicant is eligible for a Minnesota commercialization
enhancement program grant if:
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new text begin (1) the applicant has a principal place of business in Minnesota;
new text end

new text begin (2) the applicant is a small business that has received a SBIR/STTR Phase II award
that is active at time of proposal submission;
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new text begin (3) at least 50 percent of the federal program dollars are expended prior to
submission of a proposal;
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new text begin (4) the applicant provides evidence in the proposal of current progress toward
achievement of Phase II objectives; and
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new text begin (5) the technology being commercialized is directly related to the technology funded
under the SBIR/STTR Phase II award.
new text end

new text begin Subd. 5. new text end

new text begin Limitations. new text end

new text begin There is no limit as to the number of proposals that a single
company may submit. However, only one grant per company may be awarded per award
cycle, as established by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Use of appropriation. new text end

new text begin Depending on funding allocated to MCEP, the
commissioner shall work with science and technology experts from public, academic, and
private sectors to determine grant appropriation levels.
new text end

Sec. 5. new text begin REPORT.
new text end

new text begin (a) By January 1, 2010, the commissioner of employment and economic
development must file a report to the legislature on its progress in implementing the
project objectives under Minnesota Statutes, section 116J.6581, paragraph (a).
new text end

new text begin (b) By October 2010, the commissioner of employment and economic development
shall submit to the governor and the legislature a recommendation for a permanent
governance structure for an entity to manage the project under Minnesota Statutes, section
116J.6581, paragraph (a), whether that be a government commission, a not-for-profit
economic development corporation, or some other alternative that will achieve the
objectives listed under Minnesota Statutes, section 116J.6581, paragraph (a), as well as
an expanded plan for the programs to be established under the project and the scope of
appropriations and bonding that will be required to implement that plan.
new text end

new text begin (c) By January 2011, the commissioner of employment and economic development
shall submit to the governor and the legislature a ten-year strategic science and technology
plan for the state, together with its updated recommendations for the programs and scope
of appropriations and bonding that will be required to implement and maintain the projects
as described in Minnesota Statutes, section 116J.6581, paragraph (a).
new text end