1.1 	A bill for an act
1.2 	relating to economic development; creating a federal research and development 
1.3 	support program; appropriating money;proposing coding for new law in Minnesota 
1.4 	Statutes, chapter 116J.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [116J.8756] FEDERAL RESEARCH AND DEVELOPMENT SUPPORT 
1.7 	PROGRAM.
1.8 		Subdivision 1.Establishment. A grant program is established to award grants to eligible 
1.9 	applicants in order to match funds received through the federal Small Business Innovation 
1.10 	Research (SBIR) and Small Business Technology Transfer (STTR) programs.
1.11 		Subd. 2.Eligible applicant. An eligible applicant is a company with headquarters in 
1.12 	Minnesota that receives grants or contracts, awarded after state fiscal year 2016, under:
1.13 	(1) phase I of the federal SBIR or STTR program; or
1.14 	(2) phase II of the federal SBIR or STTR program.
1.15 		Subd. 3.Application process. An eligible applicant must submit an application to the 
1.16 	commissioner on a form prescribed by the commissioner.
1.17 		Subd. 4.Limitation. No grant awarded to a recipient defined under subdivision 2, clause 
1.18 	(1), shall exceed $250,000 per recipient per year. No grant awarded to a recipient  under 
1.19 	subdivision 2, clause (2), shall exceed $500,000 per recipient per year. Grants awarded to 
1.20 	a single entity shall not exceed $750,000 per recipient per year.

2.1 	Sec. 2. APPROPRIATION.
 2.2 	$8,000,000 in fiscal year 2018 and $8,000,000 in fiscal year 2019 are appropriated to 
2.3 	the commissioner of employment and economic development for the purposes of 
2.4 	administering the federal research and development support program under Minnesota 
2.5 	Statutes, section 116J.8756.

2.6 	EFFECTIVE DATE. This section is effective the day following final enactment.