Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 322-H.F.No. 930 
           An act relating to economic development; changing the 
          name of the Greater Minnesota Corporation; adding 
          duties; providing for a new structure for the board of 
          directors; amending Minnesota Statutes 1990, sections 
          116O.03, subdivision 2; 116O.04, subdivision 2; 
          116O.05, subdivision 2; and 116O.09, subdivision 3, 
          and by adding subdivisions; proposing coding for new 
          law in Minnesota Statutes, chapter 116O; repealing 
          Minnesota Statutes 1990, sections 116J.970; 116J.971; 
          and 116O.03, subdivision 2a. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [116O.011] [NAME CHANGE.] 
    The Greater Minnesota Corporation is renamed Minnesota 
Technology, Inc. 
    Sec. 2.  Minnesota Statutes 1990, section 116O.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [BOARD OF DIRECTORS.] The corporation is governed 
by a board of 11 14 directors.  The term of a director is six 
years.  Vacancies on the board are filled by appointment of the 
board, subject to the advice and consent of the senate.  Board 
members may receive reasonable compensation and be reimbursed 
for reasonable expenses, which must be reviewed each year by the 
commissioner of finance.  The membership terms, compensation, 
removal, and filling of vacancies of public members of the board 
are as provided in section 15.0575.  Membership of the board 
consists of the following: 
    (1) a person from the private sector, appointed by the 
governor, who shall act as chair and serve as chief science 
advisor to the governor and the legislature; 
    (2) the dean of the institute of technology of the 
University of Minnesota; 
    (3) the dean of the graduate school of the University of 
Minnesota; 
    (4) the commissioner of the department of trade and 
economic development; 
    (5) six members appointed by the governor, at least one of 
whom must be a person from a public post-secondary system other 
than the University of Minnesota; and 
    (6) one member who is not a member of the legislature 
appointed by each of the following:  the speaker of the house of 
representatives, the house of representatives minority leader, 
the senate majority leader, and the senate minority leader. 
    At least fifty percent of the members described in clauses 
(5) and (6) must live outside the metropolitan area as defined 
in section 473.121, subdivision 2, and must have experience in 
manufacturing, the technology industry, or research and 
development.  
    Sec. 3.  Minnesota Statutes 1990, section 116O.04, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATUS OF EMPLOYEES.] 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. 
    Sec. 4.  Minnesota Statutes 1990, section 116O.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [DUTIES.] (a) The primary duties of the 
corporation shall include:  
    (1) applied research; and 
    (2) technology transfer and early stage funding to small 
manufacturers.  
    (b) The corporation shall also: 
    (1) 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; 
    (2) provide or provide for technology-related assistance to 
individuals, sole proprietorships, partnerships, corporations, 
other business entities, and nonprofit organizations; 
    (3) provide financial assistance under section 116O.06 to 
assist the development of new products, services, or production 
processes or to assist in bringing new products or services to 
the marketplace; 
    (4) provide or provide for research services including 
on-site research and testing of production techniques and 
product quality; 
    (5) establish and operate regional research institutes as 
provided for in section 116O.08; 
    (6) make matching research grants for applied research and 
development to public and private post-secondary education 
institutes as provided for in section 116O.11; 
    (7) enter into contracts for establishing formal 
relationships with public or private research institutes or 
facilities; 
    (8) establish the agricultural utilization research 
institute under section 116O.09; and 
    (9) 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. 5.  [116O.071] [SCIENCE AND TECHNOLOGY.] 
    Subdivision 1.  [DUTIES.] The corporation shall: 
    (1) prepare and deliver to the legislature every January 15 
a science and technology annual report that must contain: 
    (i) a list of the scientifically and technologically 
related research and development projects and development 
activities funded by a grant or loan of state money that 
provides significant promise for the development of job-creating 
businesses; and 
    (ii) an analysis of the efficacy and completeness of a 
decentralized research peer review process, with special 
emphasis on whether or not scientifically and technologically 
related research and development projects in Minnesota have 
resulted or will result in creating scientifically and 
technologically related jobs; 
    (2) keep a current roster of technology intensive 
businesses in the state; 
    (3) collect and disseminate information on financial, 
technical, marketing, management, and other services available 
to technology intensive small and emerging businesses, including 
potential sources of debt and equity capital; 
    (4) review the technological development potential of 
various regions of the state and cooperate with and make 
recommendations to the legislature, state agencies, local 
governments, local technology development agencies, the federal 
government, private businesses, and individuals for the 
realization of the development potential; and 
    (5) sponsor and conduct conferences and studies, collect 
and disseminate information, and issue periodic reports relating 
to scientifically and technologically related research and 
development and education in the state, and represent the state 
at appropriate interstate and national conferences. 
    Subd. 2.  [PEER REVIEW PLANS.] A state agency, board, 
commission, authority, institution, or other entity that 
allocates state money by a grant, loan, or contract for 
scientifically and technologically related research shall 
establish a peer review system to evaluate the research.  The 
corporation shall recommend guidelines for establishing 
effective peer review.  An agency, board, commission, authority, 
or institution that funds scientifically and technologically 
related research shall, at least biennially, present to the 
corporation or to ad hoc committees a review and evaluation of 
the peer review process used in that organization. 
    Subd. 3.  [AUTHORITY TO PERFORM REQUESTED EVALUATIONS.] The 
governor, speaker of the house of representatives, house of 
representatives minority leader, senate majority leader, senate 
minority leader, chair of the house of representatives 
appropriations committee, chair of the senate finance committee, 
director, or a member of the legislature considering the 
introduction or approval of legislation containing funding for 
scientifically and technologically related research and 
development may request the corporation to evaluate a loan or 
grant made or to be made or the proposed legislation for funding 
scientifically and technologically related research and 
development to determine (1) whether it complies with the 
guidelines required by subdivision 1, clause (1), item (ii); (2) 
whether it is technically feasible; and (3) for development 
proposals, whether the proposal appears to have the potential 
for economic development.  Ad hoc committees may be appointed by 
the corporation. 
    Sec. 6.  Minnesota Statutes 1990, section 116O.09, 
subdivision 3, is amended to read: 
    Subd. 3.  [STAFF.] The corporation board of directors shall 
provide hire staff to for the agricultural utilization research 
institute and assist in carrying out the duties of the 
agricultural utilization research institute.  Persons employed 
by the agricultural utilization research 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 
ethical practices board. 
    Sec. 7.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 6.  [BYLAWS.] The board of directors shall adopt 
bylaws necessary for the conduct of the business of the 
institute consistent with this section.  The corporation must 
publish bylaws and amendments to the bylaws in the State 
Register. 
    Sec. 8.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 7.  [PLACE OF BUSINESS.] The board of directors shall 
locate and maintain the institute's place of business within the 
state. 
    Sec. 9.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 8.  [CHAIR.] The board of directors shall annually 
elect from among its members a chair and other officers 
necessary for the performance of its duties. 
    Sec. 10.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 9.  [MEETINGS.] The board of directors 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 section 471.705. 
    Sec. 11.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 10.  [CONFLICT OF INTEREST.] 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. 
    Sec. 12.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 11.  [NO BENEFIT TO PRIVATE INDIVIDUALS OR 
CORPORATIONS.] 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. 
    Sec. 13.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 12.  [FUNDS.] 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. 
    Sec. 14.  Minnesota Statutes 1990, section 116O.09, is 
amended by adding a subdivision to read: 
    Subd. 13.  [ACCOUNTS; AUDITS.] 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. 
    For purposes of this section, "institute" means the 
agricultural utilization research institute established under 
section 116O.09 and "board of directors" means the board of 
directors of the agricultural utilization research institute. 
    Sec. 15.  [REPORT TO GOVERNOR AND THE LEGISLATURE.] 
    Minnesota Technology, Inc., shall report to the governor 
and the appropriate committees of the legislature its 
recommendations for a state science and technology policy by 
January 1, 1992. 
    Sec. 16.  [DISSOLUTION OF GREATER MINNESOTA CORPORATION 
BOARD OF DIRECTORS; REAPPOINTMENT OF DIRECTORS.] 
    The board of directors of the Greater Minnesota Corporation 
is dissolved.  It is succeeded by the board of directors 
established in section 2.  The successor board must have at 
least four members who currently serve as directors of the 
Greater Minnesota Corporation. 
    Sec. 17.  [116O.072] [TECHNOLOGY RESOURCE CENTERS.] 
    The corporation must provide funding for technology 
resource centers so as to maintain a geographic balance of 
services throughout Minnesota. 
    Sec. 18.  [TRANSFER.] 
    The following programs are transferred from the department 
of economic development to Minnesota Technology, Inc.:  
Minnesota Project Outreach Corporation, Minnesota Project 
Innovation, Inc., Minnesota Quality Council, Minnesota 
Inventors' Congress, Minnesota High Technology Corridor 
Corporation, and the office of science and technology.  The 
provisions of Minnesota Statutes, section 15.039, apply to this 
transfer. 
    Sec. 19.  [REVISOR INSTRUCTION.] 
    In the next edition of Minnesota Statutes and Minnesota 
Rules, the revisor of statutes shall change the words "Greater 
Minnesota Corporation" or similar words to "Minnesota 
Technology, Inc." or similar words.  The revisor shall make 
other necessary changes to Minnesota Statutes and Minnesota 
Rules to effectuate section 18. 
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1990, sections 116J.970, 116J.971, and 
116O.03, subdivision 2a, are repealed.  
    Sec. 21.  [EFFECTIVE DATE.] 
     Sections 1 to 20 are effective July 1, 1991. 
    Presented to the governor May 30, 1991 
    Signed by the governor June 3, 1991, 9:52 a.m.