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 the seed 
  1.20  capital equity 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 CAPITAL EQUITY 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, implement 
  2.3   facilitate the implementation of a centrally managed seed 
  2.4   capital equity fund to invest in early stage companies and small 
  2.5   companies in Minnesota through equity or equity-type 
  2.6   investments.  The seed capital equity 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 investments 
  2.10  by the seed capital fund in seven-county metropolitan area based 
  2.11  companies must not exceed 20 percent of the total capitalization 
  2.12  appropriated by the legislature or provided by the corporation.  
  2.13  Investments which contribute to the 20 percent metropolitan area 
  2.14  limitation are those which will primarily enhance the operations 
  2.15  of a metropolitan based facility.  Investments that benefit a 
  2.16  Greater Minnesota facility of a metropolitan based company are 
  2.17  not 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 investments by 
  2.21  in the seed capital equity fund must be matched by other sources 
  2.22  of capital at a ratio to be determined by the corporation of 
  2.23  three to one.  The seed capital equity fund shall identify 
  2.24  sources of technical, management, and marketing assistance 
  2.25  for funded companies funded by the seed capital program and make 
  2.26  appropriate referrals.  The seed capital equity fund shall 
  2.27  establish a procedure for liquidating private investments. 
  2.28     Subd. 2.  [REGIONAL SEED CAPITAL EQUITY REPORT.] By 
  2.29  February 15, the board shall submit to the legislature and 
  2.30  governor an annual report on the activities of the seed capital 
  2.31  equity program.