1998 Minnesota Statutes

     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.  The institute 
 must be located near an existing agricultural research facility 
 in the agricultural region of the state.  

    Subd. 1a.    Board of directors.  The board of directors 
 of the agricultural utilization research institute is comprised 
 of: 

    (1) the chairs of the senate agriculture and rural 
 development committee and the house of representatives 
 agriculture committee; 

    (2) two representatives of statewide farm organizations; 

    (3) two representatives of agribusiness, one of whom is a 
 member of the Minnesota Technology, Inc. board representing 
 agribusiness; and 

    (4) three representatives of the commodity promotion 
 councils. 

    A member of the board of directors under clauses (1) to (4) 
 may designate a permanent or temporary replacement member 
 representing the same constituency. 

    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 the various market segments characterized by 
 Minnesota's agricultural industry, address each segment's 
 individual needs, and identify development opportunities in each 
 segment; 

    (2) develop and implement a utilization program for each 
 segment that addresses its development needs and identifies 
 techniques to meet those needs; 

    (3) 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 that would promote the 
 development of the various agricultural industries; and 

    (5) provide financial assistance including, but not limited 
 to:  (i) direct loans, guarantees, interest subsidy payments, 
 and equity investments; and (ii) participation in loan 
 participations.  The board of directors shall establish the 
 terms and conditions of the financial assistance. 

    (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 and regular 
 annual report to the legislature in general and specifically the 
 house of representatives agriculture committee, the senate 
 agriculture and rural development committee, the house of 
 representatives environment and natural resources finance 
 committee, and the senate environment and agriculture budget 
 division. 

    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 section 471.705, 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