2003 Minnesota Statutes

CHAPTER 116O. Minnesota technology, inc.

     116O.01 Citation. 

    Sections 116O.01 to 116O.10 may be cited as the "Minnesota 
 Technology, Inc. Act." 

    HIST: 1987 c 386 art 2 s 1; 1991 c 322 s 19 

     116O.011 Name change. 

    The Greater Minnesota Corporation is renamed Minnesota 
 Technology, Inc. 

    HIST: 1991 c 322 s 1 

     116O.02 Definitions. 

    Subdivision 1.    Applicability.  The definitions in 
 this section apply to sections 116O.01 to 116O.15.  

    Subd. 1a.    Account.  "Account" means the Minnesota 
 technology account. 

    Subd. 2.    Board.  "Board" means the board of directors 
 of Minnesota Technology, Inc.  

    Subd. 3.    Corporation.  "Corporation" means Minnesota 
 Technology, Inc.  

    

    Subd. 4.  Renumbered subd 1a 

    Subd. 5.    Greater Minnesota.  "Greater Minnesota" 
 means the area of Minnesota located outside of the metropolitan 
 area as defined in section 473.121, subdivision 2. 

    Subd. 6.    Technology-related assistance.  
 "Technology-related assistance" means the transfer 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. 

    HIST: 1987 c 386 art 2 s 2; 1989 c 335 art 1 s 168; art 4 s 
 106; 1991 c 322 s 19; 1993 c 163 art 2 s 2 

     116O.03 Corporation; board of directors; powers. 

    Subdivision 1.    Establishment.  Minnesota Technology, 
 Inc. is established as a public corporation of the state and is 
 not subject to the laws governing a state agency except as 
 provided in this chapter.  The business of the corporation must 
 be conducted under the name "Minnesota Technology, Inc." 

    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 transfer, applied research, 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. 

    Subd. 2.    Board of directors.  The corporation is 
 governed by a board of directors.  The selection, membership 
 terms, compensation, removal, and filling of vacancies of 
 members of the board are as provided in the corporation's bylaws.

    Subd. 2a. Repealed, 1991 c 322 s 20 

    Subd. 3.    Bylaws.  The board of directors shall adopt 
 bylaws necessary for the conduct of the business of the 
 corporation, consistent with this chapter.  The corporation must 
 publish the bylaws and amendments to the bylaws in the State 
 Register. 

    Subd. 4.    Places of business.  The board shall locate 
 and maintain the corporation's places of business within the 
 state.  

    Subd. 5.    Meetings and actions of the board.  The 
 board shall meet at least twice a year and may hold additional 
 meetings upon giving notice in accordance with the bylaws of the 
 corporation.  Board meetings are subject to chapter 13D, except 
 when data described in subdivision 7 is discussed. 

    Subd. 6.    Closed meetings; recording.  The board of 
 directors may by a majority vote in a public meeting decide to 
 hold a closed meeting authorized under subdivision 5.  The time 
 and place of the closed meeting must be announced at the public 
 meeting.  A written roll of members present at the closed 
 meeting must be made available to the public after the closed 
 meeting.  The proceedings of a closed meeting must be tape 
 recorded at the expense of the board and must be preserved by 
 the board for two years.  The data on the tape is nonpublic data 
 under section 13.02, subdivision 9. 

    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 116O.06, 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 116O.06. 

    Subd. 8.    Conflict of interest.  A director, employee, 
 or officer of the corporation 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. 

    Subd. 9.    Contributions to public officials; disclosure. 
  Each director shall file a statement with the Campaign 
 Finance and Public Disclosure Board disclosing the nature, 
 amount, date, and recipient of any contribution made to a public 
 official, political committee, political fund, or political 
 party, as defined in chapter 10A, that: 

    (1) was made within the four years preceding appointment to 
 the Minnesota Technology, Inc. board; and 

    (2) was subject to the reporting requirements of chapter 
 10A. 

    The statement must be updated annually during the 
 director's term to reflect contributions made to public 
 officials during the appointed director's tenure. 

    Subd. 10.    Tort claims.  The corporation is a state 
 agency for purposes of section 3.736. 

    Subd. 11.    Statements of economic interest.  Directors 
 and officers of the corporation are public officials for the 
 purpose of section 10A.09, and must file statements of economic 
 interest with the Campaign Finance and Public Disclosure Board. 

    HIST: 1987 c 386 art 2 s 3; 1988 c 686 art 1 s 66; 1988 c 708 
 s 2; 1989 c 335 art 1 s 169,170,177; art 4 s 55,56; 1990 c 423 s 
 5; 1991 c 322 s 2,19; 1993 c 163 art 2 s 3; 1997 c 202 art 2 s 
 63; 1998 c 270 s 3; 1999 c 250 art 1 s 114; 2003 c 128 art 15 s 
 3 

     116O.04 Corporate personnel. 

    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.  The president's salary may not exceed 95 
 percent of the governor's salary.  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 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. 

    Subd. 2.    Status of employees.  (a) 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. 

    (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. 

    Subd. 3.    Contributions to public officials; disclosure. 
  The president shall file a statement with the Campaign 
 Finance and Public Disclosure Board disclosing the nature, 
 amount, date, and recipient of any contribution made to a public 
 official which: 

    (1) was made within the four years preceding employment 
 with the Minnesota Technology, Inc. board; and 

    (2) was subject to the reporting requirements of chapter 
 10A. 

    The statement must be updated annually during the 
 president's employment to reflect contributions made to public 
 officials during the president's tenure. 

    Subd. 4.    Personnel policies.  (a) The corporation 
 must adopt and periodically revise, if necessary, an affirmative 
 action plan similar to the affirmative action plan under section 
 43A.19, subdivision 1.  The corporation is subject to the audit 
 and reporting requirements under section 43A.191, subdivision 3. 

    (b) Employees of the corporation are subject to the 
 prohibition of political activities and required leave of 
 absences under section 43A.32. 

    (c) Employees of the corporation are subject to the code of 
 ethics requirements under section 43A.38. 

    HIST: 1987 c 386 art 2 s 4; 1988 c 686 art 1 s 67; 1988 c 708 
 s 3; 1989 c 335 art 4 s 57; 1991 c 322 s 3,19; 1993 c 163 art 2 
 s 4; 1994 c 554 s 1; 1997 c 202 art 2 s 63 

     116O.05 Powers of corporation. 

    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. 

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

    (1) financial reports and other requirements under section 
 16A.06; 

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

    (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 

    (4) indirect costs under section 16A.127. 

    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, to assist in energy conservation, 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 postsecondary 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. 

    Subd. 3.    Rules.  The corporation must publish in the 
 State Register any guidelines, policies, or eligibility criteria 
 prepared or adopted by the corporation for any of its financial 
 or technology transfer programs. 

    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, 
 including without limitation those pertaining to the seed 
 capital fund under section 116O.122, except to the extent 
 specifically limited by the constitution or by law. 

    HIST: 1987 c 386 art 2 s 5; 1989 c 335 art 1 s 171; art 4 s 
 58; 1991 c 322 s 4; 1993 c 163 art 2 s 5; 1997 c 187 art 3 s 24; 
 1997 c 200 art 1 s 61 

     116O.06 Financial assistance. 

    Subdivision 1.    Financial assistance; types.  The 
 corporation may provide financial assistance to individuals, 
 sole proprietorships, partnerships, corporations, other business 
 entities, or nonprofit organizations that have (1) received 
 research assistance from a corporation research facility or as a 
 result of a research grant under section 116O.09, subdivision 4, 
 or 116O.11; or (2) received favorable review through a peer 
 review process established under guidelines developed under 
 section 116O.10, subdivision 2.  Financial assistance includes, 
 but is not limited to, loan guarantees or insurance, direct 
 loans, and interest subsidy payments.  The corporation may 
 participate in loans by purchasing from a lender up to 50 
 percent of each loan.  Financial assistance under this section 
 is for assisting in the financing of a business's debt 
 financing, energy conservation, product development financing, 
 or working capital needs. 

    Subd. 2.    Equity investments.  The corporation may 
 acquire an interest in a product or a private business entity, 
 except that the corporation may not acquire an interest in a 
 business entity engaged in a trade or industry whose profits are 
 directly regulated by the commissioner of commerce or the Public 
 Utilities Commission.  The corporation may enter into joint 
 venture agreements with other private corporations to promote 
 economic development and job creation.  

    Subd. 3.    Minnesota Technology, Inc. Finance Authority. 
  The board may designate the Minnesota Technology, Inc. 
 Finance Authority to provide financial assistance.  The 
 authority, if established, consists of seven members, five of 
 whom are members of the general public appointed by the board 
 with experience in business development, finance, banking, or 
 venture capital.  The president of the corporation and one board 
 member must be members of the authority.  Members of the 
 authority shall serve without compensation but shall receive 
 necessary and actual expenses while engaged in the business of 
 the corporation. 

    Subd. 4.    Standards.  The board may establish minimum 
 interest rates, security requirements, restrictions on the 
 amount of the corporation's financial participation in a 
 project, and other financial standards the board determines 
 necessary to establish in providing financial assistance. 

    Subd. 5.    Preference.  In providing financial 
 assistance, the corporation must give preference to individuals, 
 sole proprietorships, partnerships, corporations, other business 
 entities, or organizations that are starting or expanding their 
 operations in greater Minnesota. 

    HIST: 1987 c 386 art 2 s 6; 1988 c 686 art 1 s 68; 1989 c 335 
 art 1 s 172,173; 1990 c 426 art 2 s 1; 1991 c 322 s 19; 1993 c 
 163 art 2 s 6; 1Sp2001 c 4 art 6 s 18 

     116O.07 On-site research. 

    The corporation may construct, acquire, lease, own, or 
 operate one or more on-site research facilities in Minnesota. 

    HIST: 1987 c 386 art 2 s 7 

     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. 

    HIST: 1991 c 322 s 5 

     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. 

    HIST: 1991 c 322 s 17 

     116O.08 Regional research institutes. 

    Subdivision 1.    Establishment.  The board may 
 establish up to four regional research institutes in greater 
 Minnesota.  Each institute shall be located at or near a 
 postsecondary education institution whose primary focus is 
 comparable to the mission of the institute. 

    Subd. 2.    Purpose.  The purpose of the institutes is 
 to provide applied research and development services to 
 individuals, businesses, or organizations for the purposes of 
 developing the region's economy through the utilization of the 
 region's resources and the development of technology.  Research 
 and development services may include energy conservation 
 consultations, on-site research, product development grants, 
 testing of production techniques and product quality and 
 feasibility studies. 

    Subd. 3.    Institute administration; staff.  The board 
 shall appoint a director to manage the operation of the 
 institute.  The director may employ employees and enter into 
 contracts with postsecondary education governing boards for 
 research services of postsecondary institution staff, 
 facilities, or equipment. 

    Subd. 4.    Research contracts.  The director of each 
 institute may enter into contracts with individuals, businesses, 
 or organizations to provide research and development assistance 
 at institute facilities or at other sites the director 
 determines appropriate.  The board shall establish the overall 
 contract guidelines. 

    Subd. 5.    Product development grants.  The director of 
 each institute may provide product development grants to those 
 individuals, businesses, or for-profit or nonprofit 
 organizations that, without financial assistance, would not be 
 able to undertake the development of a product or 
 technology-related service.  The board shall establish 
 eligibility criteria and the terms of the product development 
 grants. 

    Subd. 6.    Institute advisory board.  A regional 
 research institute advisory board may be appointed by the 
 board.  The advisory board may consist of representatives of 
 public postsecondary institutions in the area surrounding the 
 institute, business owners, and members of the general public.  
 Terms and removal of members must be set by the board and the 
 members of each advisory board shall serve without compensation 
 but shall receive their necessary and actual expenses.  The 
 purpose of the advisory board is to provide the institute 
 director assistance in operating the institute, review contract 
 proposals and provide recommendations relating to product 
 development grants. 

    Subd. 7.    Designated research institute.  The 
 Agricultural Utilization Research Institute established in 
 section 116O.09 is designated as one of the regional research 
 institutes authorized under this section. 

    HIST: 1987 c 386 art 2 s 8; 1989 c 335 art 1 s 174; 1993 c 163 
 art 2 s 7 

     116O.09 Agricultural Utilization Research Institute. 

    Subdivision 1.    Establishment.  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 Agricultural Utilization Research 
 Institute shall 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. 

    Subd. 1a.    Board of directors.  The board of directors 
 of the Agricultural Utilization Research Institute is comprised 
 of: 

    (1) the chairs of the senate and the house of 
 representatives standing committees with jurisdiction over 
 agriculture finance or the chair's designee; 

    (2) two representatives of statewide farm organizations; 

    (3) two representatives of agribusiness; and 

    (4) three representatives of the commodity promotion 
 councils. 

    A member of the board of directors under clauses (2) to 
 (4), including a member serving on July 1, 2003, may serve for a 
 maximum of two three-year terms.  The board's compensation is 
 governed by section 15.0575, subdivision 3. 

    Subd. 2.    Duties.  (a) In addition to the duties and 
 powers assigned to the institutes in section 116O.08, the 
 Agricultural Utilization Research Institute shall: 

    (1) identify development opportunities for agricultural 
 products; 

    (2) implement a program that identifies techniques to meet 
 those opportunities; 

    (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; 

    (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; 

    (5) assist organizations and individuals with market 
 analysis and product marketing implementations; 

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

    (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 

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

    (b) The Agricultural Utilization Research Institute board 
 of directors 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 Agricultural Utilization Research 
 Institute.  The actions and expenditures of the Agricultural 
 Utilization Research 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. 

    Subd. 3.    Staff.  The board of directors shall hire 
 staff for 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 Campaign Finance and Public Disclosure 
 Board. 

    Subd. 4.    Agricultural research grants.  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. 

    Subd. 5.    Advisory board.  A 26-member advisory board 
 may be established to identify priorities for the Agricultural 
 Utilization Research 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 corporation; 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. 

    The advisory board shall annually provide a list of 
 priorities and suggested research and marketing studies that 
 should be performed by the Agricultural Utilization Research 
 Institute. 

    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. 

    Subd. 7.    Place of business.  The board of directors 
 shall locate and maintain the institute's place of business 
 within the state. 

    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. 

    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 chapter 13D, except subdivision 1b 
 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). 

    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. 

    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. 

    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. 

    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 
 this section and "board of directors" means the board of 
 directors of the Agricultural Utilization Research Institute. 

    HIST: 1987 c 258 s 12; 1987 c 386 art 2 s 9; 1989 c 246 s 2; 
 1989 c 350 art 7 s 1-3; 1991 c 322 s 6-14,19; 1996 c 395 s 18; 
 1997 c 202 art 2 s 63; 1997 c 216 s 120-122; 1Sp2001 c 2 s 139; 
 2003 c 128 art 3 s 41-43; 1Sp2003 c 4 s 1; 1Sp2003 c 23 s 4 

     116O.091 Project outreach. 

    Subdivision 1.    Establishment; purpose.  Project 
 Outreach is established.  The purpose of the project is to (i) 
 facilitate the transfer of technology and scientific advice from 
 the University of Minnesota and other institutions to businesses 
 in the state that may make economic use of the information; and 
 (ii) to assist small and medium-sized businesses in finding 
 technical and financial assistance providers that meet their 
 needs. 

    Subd. 2.  Repealed by amendment, 1993 c 363 s 4 

    Subd. 3.  Repealed by amendment, 1993 c 363 s 4 

    Subd. 4.    Duties.  The corporation shall: 

    (1) establish a technology assistance system to assist 
 business, specifically new and other small and medium-sized 
 businesses across the state, in gaining access to technical 
 information, including but not limited to technologies developed 
 by the University of Minnesota and other higher education 
 systems and their personnel; and in gaining access to 
 technology-related federal programs; 

    (2) establish and maintain a database or databases that 
 provide information for the technology assistance system under 
 clause (1) that may include information on (i) science and 
 technology experts, (ii) technical research projects underway at 
 public higher education institutions in the state, (iii) 
 licensable technology available at public higher education 
 institutions in the state, (iv) access to federal technology and 
 technical information, and (v) access to technical and business 
 education; 

    (3) provide literature search and document retrieval 
 services through the technology assistance system under clause 
 (1); 

    (4) establish and continually update a business assistance 
 referral system which includes a database of economic 
 development related technical assistance and financial 
 assistance providers or programs sponsored by federal agencies, 
 state agencies, educational institutions, chambers of commerce, 
 civic organizations, community development groups, local 
 governments, private industry associations, and other 
 organizations and individuals that provide assistance; 

    (5) establish and maintain or contract for the 
 establishment of a toll-free telephone number operated by 
 trained staff familiar with the business assistance referral 
 system and database; 

    (6) maintain a marketing and outreach program informing 
 persons interested in starting, operating, or expanding small 
 business and assistance providers of the technology assistance 
 system and the business assistance referral system; 

    (7) establish, where possible, regional bases and referral 
 systems for the business assistance referral system, and a 
 system to reference experts in the state university system; and 

    (8) make available the database of the business assistance 
 referral system to the legislature, the Department of Employment 
 and Economic Development, and other state agencies for 
 evaluating the effectiveness and efficiency of the provision of 
 economic development-related technical and financial assistance 
 in the state. 

    Subd. 5.    State agency cooperation.  The corporation 
 shall consult with the Department of Employment and Economic 
 Development in the development and marketing of the business 
 assistance referral system.  The corporation shall assist the 
 Department of Employment and Economic Development in 
 establishing an evaluation mechanism for the business assistance 
 referral system which at least includes a process for 
 determining the effectiveness of the economic development 
 related technical or financial assistance provider's service in 
 meeting the needs of the client referred to the provider. 

    Subd. 6.    Charges to clients.  (a) The corporation may 
 charge reasonable fees to a client for the technology assistance 
 system.  The corporation shall establish a fee structure for the 
 technology assistance system and may base the fee structure on 
 the type of service provided, the size of the client based on 
 number of employees or amount of annual revenues, the length of 
 time the client has been in operation, and other criteria. 

    (b) The corporation shall provide the business assistance 
 referral system at no cost to the client and may not charge the 
 client a fee or any other compensation for the referral to a 
 provider.  This subdivision does not prohibit the technical or 
 financial assistance provider from charging a fee or other 
 compensation to a client that has been referred to the provider 
 by the business assistance referral system. 

    Subd. 7.    Advisory committees.  An advisory committee 
 is created to assist in selecting vendors and evaluating the 
 corporation's project outreach activities.  The advisory 
 committee shall include the president of the University of 
 Minnesota or the president's designee, the commissioner of 
 employment and economic development or the commissioner's 
 designee, the chair of the Minnesota Technology, Inc., board of 
 directors or the chair's designee, a member of the state senate 
 appointed by the Subcommittee on Committees of the senate Rules 
 and Administration Committee, a member of the house of 
 representatives appointed by the speaker, and at least five 
 users of project outreach services appointed by the named 
 members.  The advisory committee expires June 30, 2004. 

    Subd. 8. Repealed by amendment, 1993 c 363 s 4 

    Subd. 9.  Repealed by amendment, 1993 c 363 s 4 

    HIST: 1989 c 304 s 137; 1989 c 335 art 1 s 143; 1990 c 423 s 
 1-3; 1991 c 322 s 19; 1993 c 363 s 4; 2003 c 128 art 15 s 4; 
 1Sp2003 c 4 s 1 

  116O.092 Repealed, 1993 c 363 s 8 

     116O.10 Research Advisory Board. 

    Subdivision 1.    Establishment.  The board shall 
 establish a Research Advisory Board to provide advisory 
 assistance to the board and the research institutes.  The 
 Research Advisory Board consists of seven members appointed by 
 the board.  Terms and removal of members must be set by the 
 board and Research Advisory Board members shall serve without 
 compensation but shall receive their necessary and actual 
 expenses while engaged in the business of the corporation.  The 
 membership of the advisory board must have representatives that 
 are experienced or have expertise in technology, applied 
 research, agriculture, business, labor, or productivity. 

    Subd. 2.    Duties.  The Research Advisory Board has the 
 following duties and responsibilities: 

    (1) identify specific areas where research and development 
 will contribute to the productivity of the state's businesses 
 and farms. 

    (2) determine specific areas where financial assistance for 
 research and development could assist the development of 
 businesses and create new employment opportunities. 

    (3) advise the board in the development and establishment 
 of the regional research institutes and the research grants to 
 public and private postsecondary education institutions. 

    (4) advise public and private postsecondary education 
 institutions on the research and development needs of businesses 
 in Minnesota. 

    (5) review the applications and make recommendations to the 
 board for research grants to public and private postsecondary 
 education institutions. 

    (6) develop guidelines for an effective peer review process 
 for evaluating scientifically or technologically related 
 financial assistance.  

    HIST: 1987 c 386 art 2 s 10 

     116O.11 Research grants to education units. 

    The board may make matching grants to public and private 
 postsecondary education institutions or units within those 
 institutions, including the Natural Resource Research Institute, 
 for applied research and development.  Grants are to be made for 
 projects which will likely result in assisting economic and 
 employment development in greater Minnesota.  The corporation 
 board shall not give final approval to a research grant until it 
 has received an evaluation and recommendation from the Research 
 Advisory Board established in section 116O.10.  

    HIST: 1987 c 384 art 3 s 20; 1987 c 386 art 2 s 11 

     116O.12 Minnesota technology account. 

    The Minnesota technology account is in the special revenue 
 fund.  Money in the account not needed for the immediate 
 purposes of the corporation may be invested by the State Board 
 of Investment in any way authorized by section 11A.24.  Money in 
 the account is appropriated to the corporation to be used as 
 provided in this chapter. 

    HIST: 1987 c 386 art 2 s 12; 1988 c 690 art 2 s 3; 1989 c 335 
 art 4 s 59; 1990 c 610 art 1 s 43; 1991 c 322 s 19; 2003 c 128 
 art 15 s 5 

     116O.122 Seed capital fund. 

    Subdivision 1.    Establishment.  The corporation shall, 
 in consultation with private venture and seed capital companies 
 and other public and private organizations as appropriate, 
 implement a centrally managed seed capital fund to invest in 
 early stage companies and small companies in Minnesota through 
 equity or equity-type investments.  The seed capital fund may 
 receive contributions from the corporation, as well as from 
 local, state, or federal government, private foundations, or 
 other sources.  Total investments by the seed capital fund in 
 seven-county metropolitan area based companies must not exceed 
 20 percent of the total capitalization appropriated by the 
 legislature or provided by the corporation.  Investments which 
 contribute to the 20 percent metropolitan area limitation are 
 those which will primarily enhance the operations of a 
 metropolitan based facility.  Investments that benefit a Greater 
 Minnesota facility of a metropolitan based company are not 
 subject to the limitation.  Investments by the seed capital fund 
 must be matched by other sources of capital at a ratio to be 
 determined by the corporation.  The seed capital fund shall 
 identify sources of technical, management, and marketing 
 assistance for companies funded by the seed capital program and 
 make appropriate referrals.  The seed capital fund shall 
 establish a procedure for liquidating private investments. 

    Subd. 2.    Regional seed capital report.  By February 
 15, the board shall submit to the legislature and governor an 
 annual report on the activities of the seed capital program. 

    HIST: 1991 c 295 s 1; 1997 c 200 art 1 s 62 

     116O.13 Agricultural project utilization account. 

    The agricultural project utilization account is an account 
 in the special revenue fund.  Money in the account is 
 appropriated to the Agricultural Utilization Research Institute 
 to be used for agricultural research grants as provided in 
 section 116O.09, subdivision 4, and for the Agricultural 
 Utilization Research Institute. 

    HIST: 1987 c 386 art 2 s 13; 1989 c 335 art 4 s 60 

     116O.14 Audits. 

    The corporation board shall contract with a certified 
 public accounting firm to do a financial and compliance audit of 
 the corporation and any subsidiary annually in accordance with 
 generally accepted accounting standards.  A copy of this audit 
 must be submitted to the chairs of the senate Finance and 
 Economic Development and Housing Committees, and the house 
 Appropriations and Economic Development Committees. 

    The corporation is subject to the auditing requirements 
 under sections 3.971 and 3.972.  

    HIST: 1987 c 386 art 2 s 14; 1989 c 335 art 1 s 175 

     116O.15 Annual report. 

    The board shall submit a report to the chairs of the senate 
 Economic Development and Housing and the house Economic 
 Development Committees of the legislature and the governor on 
 the activities of the corporation by February 1 of each year.  A 
 copy of the report shall also be provided to the president of 
 the University of Minnesota.  The report must include at least 
 the following: 

    (1) a description of each of the programs that the 
 corporation has provided or undertaken at some time during the 
 previous year.  The description of each program must describe 
 (i) the statement of purpose for the program, (ii) the 
 administration of the program including the activities the 
 corporation was responsible for and the responsibilities that 
 other organizations had in administering the program, (iii) the 
 results of the program including how the results were measured, 
 (iv) the expenses of the program paid by the corporation, and 
 (v) the source of corporate and noncorporate funding for the 
 program; 

    (2) an identification of the sources of funding in the 
 previous year for the corporation and its programs including 
 federal, state and local government, foundations, gifts, 
 donations, fees, and all other sources; 

    (3) a description of the distribution of all money spent by 
 the corporation in the previous year including an identification 
 of the total expenditures, other than corporate administrative 
 expenditures, by sector of the economy; 

    (4) a description of the administrative expenses of the 
 corporation during the previous year; 

    (5) a listing of the assets and liabilities of the 
 corporation at the end of the previous fiscal year; 

    (6) a list and description of each grant awarded by the 
 corporation during the previous year; 

    (7) a description of any changes made to the operational 
 plan during the previous year; and 

    (8) a description of any newly adopted or significant 
 changes to bylaws, programmatic or administrative guidelines, 
 policies, rules, or eligibility criteria for programs created or 
 administered by the corporation during the previous year. 

    Reports must be made to the legislature as required by 
 section 3.195. 

    HIST: 1987 c 386 art 2 s 15; 1989 c 335 art 1 s 176; 1993 c 
 363 s 5 

     116O.20 Dissolution. 

    In the event of dissolution of Minnesota Technology, Inc. 
 for any reason, the state of Minnesota, upon action by the 
 governor, and after consultation with the Legislative Advisory 
 Commission, may require the liquidation of all holdings and 
 investments and the return of the proceeds of that liquidation 
 and any wholly-owned assets of the corporation to the state, in 
 exchange for the assumption of all outstanding obligations of 
 the corporation. 

    If the corporation is dissolved, or certain of its 
 functions transferred to another entity, the assets and 
 liabilities and property associated with the dissolved or 
 transferred functions must return to the state or to the entity 
 designated by laws. 

    HIST: 1987 c 386 art 2 s 20; 1991 c 322 s 19