SF 2468

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; renaming Minnesota Technology, Inc. to
Enterprise Minnesota, Inc.; updating provisions; making technical changes;
recodifying the Agricultural Utilization Research Institute provisions in a new
chapter; amending Minnesota Statutes 2006, sections 116O.01; 116O.011;
116O.02, subdivision 6; 116O.03, subdivisions 1a, 7; 116O.04, subdivisions 1,
2; 116O.05, subdivisions 1, 2, 4; proposing coding for new law in Minnesota
Statutes, chapter 116O; proposing coding for new law as Minnesota Statutes,
chapter 116V; repealing Minnesota Statutes 2006, sections 116O.03, subdivision
11; 116O.06; 116O.07; 116O.071; 116O.072; 116O.08; 116O.09, subdivisions 1,
1a, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 116O.091, subdivisions 1, 4, 5, 6; 116O.10;
116O.11; 116O.12; 116O.122; 116O.13; Minnesota Statutes 2007 Supplement,
section 116O.09, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 116O.01, is amended to read:

116O.01 CITATION.

Sections 116O.01 to may be cited as the " deleted text begin Minnesota Technology,
Inc. Act deleted text end new text begin Enterprise Minnesota, Inc. Act new text end ."

Sec. 2.

Minnesota Statutes 2006, section 116O.011, is amended to read:

116O.011 NAME CHANGE.

deleted text begin The Greater Minnesota Corporation is renamed deleted text end Minnesota Technology, Inc. new text begin ,
formerly known as the Greater Minnesota Corporation, is renamed Enterprise Minnesota,
Inc.
new text end

Sec. 3.

Minnesota Statutes 2006, section 116O.02, subdivision 6, is amended to read:

Subd. 6.

Technology-related assistance.

"Technology-related assistance" means
the deleted text begin transfer deleted text end new text begin application and utilization new text end of technological information and technologies to
assist in the development and production of new technology-related products or services
or to increase the productivity or otherwise enhance the production or delivery of existing
products or services. "Technology-related assistance" includes assistance in utilizing and
developing processes and products that conserve energy.

Sec. 4.

Minnesota Statutes 2006, section 116O.03, subdivision 1a, is amended to read:

Subd. 1a.

Purpose.

The purpose of the corporation is to foster long-term
economic growth and job creation by stimulating innovation and the development of new
products, services, and production processes through energy conservation, technology
deleted text begin transfer, applied research deleted text end new text begin application and utilization new text end , and financial assistance. The
corporation's purpose is not to create new programs or services but to build on the existing
educational, business, and economic development infrastructure. The primary focus of
the corporation's activities must be to benefit new or existing small and medium-sized
businesses in greater Minnesota.

Sec. 5.

Minnesota Statutes 2006, section 116O.03, subdivision 7, is amended to read:

Subd. 7.

Application and investigative data.

The following data is classified as
private data with regard to data on individuals under section 13.02, subdivision 12, or as
nonpublic data with regard to data not on individuals under section 13.02, subdivision 9,
whichever is applicable:

(1) financial data, statistics, and information furnished in connection with assistance
or proposed assistance under section deleted text begin 116O.06 deleted text end new text begin 116O.061 new text end , including credit reports, financial
statements, statements of net worth, income tax returns, either personal or corporate, and
any other business and personal financial records; or

(2) security information, trade secret information, or labor relations information, as
defined in section 13.37, subdivision 1, disclosed to members of the corporation board or
employees of the corporation under section deleted text begin 116O.06 deleted text end new text begin 116O.061 new text end .

Sec. 6.

Minnesota Statutes 2006, section 116O.04, subdivision 1, is amended to read:

Subdivision 1.

Generally.

The board shall appoint and set the compensation for
a president, who serves as chief executive officer of the corporation, and who may
appoint subordinate officers. deleted text begin The president's salary may not exceed 95 percent of the
governor's salary. deleted text end The board may designate the president as its general agent. Subject to
the control of the board, the president shall employ employees, consultants, and agents the
president considers necessary. The staff of the corporation must include individuals new text begin with
operational experience and new text end knowledgeable in commercial and industrial financing, energy
conservation, research and development, economic development, and general fiscal affairs.
The board shall define the duties and designate the titles of the employees and agents.

Sec. 7.

Minnesota Statutes 2006, section 116O.04, subdivision 2, is amended to read:

Subd. 2.

Status of employees.

deleted text begin (a) deleted text end Employees, officers, and directors of the
corporation and programs governed by this chapter are not state employees, but are
covered by section 3.736 and, at the option of the board, may participate in the state
retirement plan and the state deferred compensation plan for employees in the unclassified
service and an insurance plan administered by the commissioner of employee relations.

deleted text begin (b) The board of Minnesota Project Innovation, Inc., may extend the health care
insurance benefits and coverage referenced in paragraph (a) to all of its employees.
deleted text end

Sec. 8.

Minnesota Statutes 2006, section 116O.05, subdivision 1, is amended to read:

Subdivision 1.

General corporate powers.

(a) The corporation has the powers
granted to a business corporation by section 302A.161, subdivisions 3; 4; 5; 7; 8; 9; 11;
12; 13, except that the corporation may not act as a general partner in any partnership; 14;
15; 16; 17; 18; and 22.

(b) The state is not liable for the obligations of the corporation.

(c) Section 302A.041 applies to this chapter and the corporation in the same manner
that it applies to business corporations established under chapter 302A.

deleted text begin (d) The corporation is a state agency for the purposes of the following accounting
and budgeting requirements:
deleted text end

deleted text begin (1) financial reports and other requirements under section 16A.06;
deleted text end

deleted text begin (2) the state budget system under sections 16A.095, 16A.10, and 16A.11;
deleted text end

deleted text begin (3) the state allotment and encumbrance, and accounting systems under sections
16A.14, subdivisions 2, 3, 4, and 5; and 16A.15, subdivisions 2 and 3; and
deleted text end

deleted text begin (4) indirect costs under section 16A.127.
deleted text end

Sec. 9.

Minnesota Statutes 2006, section 116O.05, subdivision 2, is amended to read:

Subd. 2.

Duties.

(a) The primary duties of the corporation shall include:

(1) deleted text begin applied research deleted text end new text begin development of new products and processes for operational
efficiency and excellence, enabling company growth new text end ; and

(2) deleted text begin technology transfer and early stage funding to small manufacturers deleted text end new text begin business
development services with technology utilization and application, primarily for small
and medium-sized manufacturers new text end .

(b) The corporation shall also:

(1) deleted text begin establish programs, activities, and policies that provide technology transfer
and applied research and development assistance to individuals, sole proprietorships,
partnerships, corporations, other business entities, and nonprofit organizations in the
state that are primarily new and existing small and medium-sized businesses in greater
Minnesota;
deleted text end

deleted text begin (2) deleted text end provide or provide for technology-related assistance to individuals, sole
proprietorships, partnerships, corporations, other business entities, and nonprofit
organizations; new text begin and
new text end

deleted text begin (3) provide financial assistance under section 116O.06 to assist the development of
new products, services, or production processes, to assist in energy conservation, or to
assist in bringing new products or services to the marketplace;
deleted text end

deleted text begin (4) provide or provide for research services including on-site research and testing of
production techniques and product quality;
deleted text end

deleted text begin (5) establish and operate regional research institutes as provided for in section
116O.08;
deleted text end

deleted text begin (6) make matching research grants for applied research and development to public
and private postsecondary education institutes as provided for in section 116O.11;
deleted text end

deleted text begin (7) enter into contracts for establishing formal relationships with public or private
research institutes or facilities;
deleted text end

deleted text begin (8) establish the Agricultural Utilization Research Institute under section 116O.09;
and
deleted text end

deleted text begin (9) deleted text end new text begin (2) new text end not duplicate existing services or activities provided by other public and
private organizations but shall build on the existing educational, business, and economic
development infrastructure.

Sec. 10.

Minnesota Statutes 2006, section 116O.05, subdivision 4, is amended to read:

Subd. 4.

Supporting organizations.

On making a determination that the public
policies and purposes of this chapter will be carried out to a greater extent than what
might otherwise occur, the board may cause to be created and may delegate, assign, or
transfer to one or more entities, including without limitation a corporation, nonprofit
corporation, limited liability company, partnership, or limited partnership, any or all rights
and duties, assets and liabilities, powers or authority created, authorized, or allowed under
this chapter, deleted text begin including without limitation those pertaining to the seed capital fund under
section 116O.122, deleted text end except to the extent specifically limited by the Constitution or by law.

Sec. 11.

new text begin [116O.061] FINANCIAL ASSISTANCE.
new text end

new text begin (a) Financial assistance may be provided to sole proprietorships, corporations, other
entities, or nonprofit organizations. Financial assistance includes, but is not limited to,
assisting a qualified company or organization with business services and products that
will enhance the operations of the entity.
new text end

new text begin (b) Preference and priority will be given to business entities that are expanding their
operations in Minnesota. Priority will be assigned to:
new text end

new text begin (1) projects whose return, in economic benefits, are most substantial and clear;
new text end

new text begin (2) projects whose outcomes are best accelerated through internal resources of
the corporation; and
new text end

new text begin (3) companies and organizations not typically able to leverage external assistance.
new text end

new text begin (c) The corporation may enter into agreements with, or solicit grants from, other
organizations to jointly promote:
new text end

new text begin (1) business improvements;
new text end

new text begin (2) the application of technology, energy conservation, new product development,
and other initiatives leading to economic development; and
new text end

new text begin (3) job creation.
new text end

Sec. 12.

new text begin [116V.01] DEFINITIONS.
new text end

new text begin For purposes of this chapter:
new text end

new text begin (1) "institute" means the Agricultural Utilization Research Institute established
in section 116V.02; and
new text end

new text begin (2) "board" means the board of directors of the Agricultural Utilization Research
Institute.
new text end

Sec. 13.

new text begin [116V.02] AGRICULTURAL UTILIZATION RESEARCH INSTITUTE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Agricultural Utilization Research Institute is
established as a nonprofit corporation under section 501(c)(3) of the Internal Revenue
Code of 1986, as amended. The institute shall conduct onsite and applied research,
promote the establishment of new products and product uses and the expansion of existing
markets for the state's agricultural commodities and products, including direct financial
and technical assistance for Minnesota entrepreneurs. The institute must establish or
maintain facilities and work with private and public entities to leverage the resources
available to achieve maximum results for Minnesota agriculture.
new text end

new text begin Subd. 2. new text end

new text begin Board of directors. new text end

new text begin The board of directors of the institute is comprised of:
new text end

new text begin (1) the chairs of the senate and the house of representatives standing committees
with jurisdiction over agriculture finance or the chairs' designee;
new text end

new text begin (2) two representatives of statewide farm organizations;
new text end

new text begin (3) two representatives of agribusiness; and
new text end

new text begin (4) three representatives of the commodity promotion councils.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The institute shall:
new text end

new text begin (1) identify development opportunities for agricultural products;
new text end

new text begin (2) implement a program that identifies techniques to meet those opportunities;
new text end

new text begin (3) monitor and coordinate research among the public and private organizations and
individuals specifically addressing procedures to transfer new technology to businesses,
farmers, and individuals;
new text end

new text begin (4) provide research grants to public and private educational institutions and other
organizations that are undertaking basic and applied research to promote the development
of emerging agricultural industries;
new text end

new text begin (5) assist organizations and individuals with market analysis and product marketing
implementations;
new text end

new text begin (6) to the extent possible earn and receive revenue from contracts, patents, licenses,
royalties, grants, fees-for-service, and memberships;
new text end

new text begin (7) work with the Department of Agriculture, the United States Department of
Agriculture, the Department of Employment and Economic Development, and other
agencies to maximize marketing opportunities locally, nationally, and internationally; and
new text end

new text begin (8) leverage available funds from federal, state, and private sources to develop new
markets and value added opportunities for Minnesota agricultural products.
new text end

new text begin (b) The board shall have the sole approval authority for establishing agricultural
utilization research priorities, requests for proposals to meet those priorities, awarding
of grants, hiring and direction of personnel, and other expenditures of funds consistent
with the adopted and approved mission and goals of the institute. The actions and
expenditures of the institute are subject to audit. The institute shall annually report
by February 1 to the senate and house of representatives standing committees with
jurisdiction over agricultural policy and funding. The report must list projects initiated,
progress on projects, and financial information relating to expenditures, income from other
sources, and other information to allow the committees to evaluate the effectiveness of
the institute's activities.
new text end

new text begin (c) The institute shall convene a Renewable Energy Roundtable, the purpose of
which shall be to further the state's leadership on bioenergy issues.
new text end

new text begin (i) The Renewable Energy Roundtable shall consist of one representative appointed
by the commissioner of the Minnesota Department of Agriculture, one appointed by the
commissioner of the Minnesota Department of Commerce, one appointed by the chancellor
of the Minnesota State Colleges and Universities, and one appointed by the president of
the University of Minnesota. The appointees must have expertise relevant to bioenergy.
new text end

new text begin (ii) The board shall oversee the activities and shall provide staff to assist the
Renewable Energy Roundtable.
new text end

new text begin (iii) The Renewable Energy Roundtable will engage professionals and experts from
private, government, academic, and nonprofit entities across the state to identify bioenergy
opportunities and collaborate with a broad group of interested parties to identify future
alternative courses of action the state can take to sustain a long-term competitive position
in renewable energy through the year 2025. The Renewable Energy Roundtable will
consult, advise, and review projects and initiatives funded by the state as directed by the
administration and the legislature.
new text end

new text begin Subd. 4. new text end

new text begin Staff. new text end

new text begin The board shall hire staff for the institute. Persons employed by
the institute are not state employees and may participate in state retirement, deferred
compensation, insurance, or other plans that apply to state employees generally and are
subject to regulation by the state Campaign Finance and Public Disclosure Board.
new text end

new text begin Subd. 5. new text end

new text begin Agricultural research grants. new text end

new text begin The institute may make matching grants
for agricultural product utilization research to the University of Minnesota, the Minnesota
State Colleges and Universities, a Minnesota private college or university, a private
corporation, or a person. Grants may be matched from private sources, including farm
commodity groups and farm organizations.
new text end

new text begin Subd. 6. new text end

new text begin Research contracts. new text end

new text begin The institute may enter into contracts with
individuals, businesses, or organizations to provide research and development assistance
at institute facilities or at other sites the board of directors determines appropriate.
new text end

new text begin Subd. 7. new text end

new text begin Advisory board. new text end

new text begin A 26-member advisory board may be established
to identify priorities for the institute. Members of the advisory board are appointed
by the board. The advisory board consists of: the chair of the Minnesota House of
Representatives Agricultural Committee; the chair of the Minnesota Senate Agricultural
Committee; a representative from each of the ten largest agricultural-related businesses
in the state as determined by the board; a member from each of the appropriate trade
organizations representing producers of beef cattle, dairy, corn, soybeans, pork, wheat,
turkey, barley, wild rice, edible beans, eggs, and potatoes; a member of the Farmers's
Union; and a member of the Farm Bureau. Terms and removal of members must be set
by the board and members of the advisory board serve without compensation but shall
receive their necessary and actual expenses.
new text end

new text begin The advisory board shall annually provide a list of priorities and suggested research
and marketing studies that should be performed by the institute.
new text end

new text begin Subd. 8. new text end

new text begin Bylaws. new text end

new text begin The board shall adopt bylaws necessary for the conduct of the
business of the institute consistent with this section. The board must publish bylaws and
amendments to the bylaws in the State Register.
new text end

new text begin Subd. 9. new text end

new text begin Place of business. new text end

new text begin The board shall locate and maintain the institute's
place of business within the state.
new text end

new text begin Subd. 10. new text end

new text begin Chair. new text end

new text begin The board shall annually elect from among its members a chair
and other officers necessary for the performance of its duties.
new text end

new text begin Subd. 11. new text end

new text begin Meetings. new text end

new text begin The board shall meet at least twice each year and may hold
additional meetings upon giving notice in accordance with the bylaws of the institute.
Board meetings are subject to chapter 13D, except as it pertains to financial information,
business plans, income and expense projections, customer lists, market and feasibility
studies, and trade secret information as defined by section 13.37, subdivision 1, paragraph
(b).
new text end

new text begin Subd. 12. new text end

new text begin Conflict of interest. new text end

new text begin A director, employee, or officer of the institute may
not participate in or vote on a decision of the board relating to an organization in which
the director has either a direct or indirect financial interest.
new text end

new text begin Subd. 13. new text end

new text begin No benefit to private individuals or corporations. new text end

new text begin This institute shall
not afford pecuniary gain, incidental or otherwise, to any private individual, firm, or
corporation, except the payment of reasonable fees for goods and services provided and
approved in accordance with the bylaws of the corporation. No part of the net income or
net earnings of the institute shall, directly or indirectly, be distributable to or otherwise
inure to the benefit of any individual.
new text end

new text begin Subd. 14. new text end

new text begin Funds. new text end

new text begin The institute may accept and use gifts, grants, or contributions
from any source. Unless otherwise restricted by the terms of a gift or bequest, the board
may sell, exchange, or otherwise dispose of and invest or reinvest the money, securities, or
other property given or bequested to it. The principal of these funds, the income from
them, and all other revenues received by it from any nonstate source must be placed in the
depositories the board determines and is subject to expenditure for the board's purposes.
Expenditures of more than $25,000 must be approved by the full board.
new text end

new text begin Subd. 15. new text end

new text begin Accounts; audits. new text end

new text begin The institute may establish funds and accounts that it
finds convenient. The board shall provide for and pay the cost of an independent annual
audit of its official books and records by the legislative auditor subject to sections 3.971
and 3.972. A copy of this audit shall be filed with the secretary of state.
new text end

Sec. 14.

new text begin [116V.03] AGRICULTURAL PROJECT UTILIZATION ACCOUNT.
new text end

new text begin The agricultural project utilization account is an account in the special revenue fund.
Money in the account is appropriated to the institute to be used for agricultural research
grants as provided in section 116V.02, and for the institute.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 116O.03, subdivision 11; 116O.06; 116O.07;
116O.071; 116O.072; 116O.08; 116O.09, subdivisions 1, 1a, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
and 13; 116O.091, subdivisions 1, 4, 5, and 6; 116O.10; 116O.11; 116O.12; 116O.122;
and 116O.13; new text end new text begin and new text end new text begin Minnesota Statutes 2007 Supplement, section 116O.09, subdivision
2, new text end new text begin are repealed.
new text end

Sec. 16. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 15 are effective the day following final enactment.
new text end