Bill Text: MS SB2839 | 2021 | Regular Session | Enrolled
Bill Title: SMART Business Act; create SMART Business Accelerate Initiative and distinguish from SMART Business Rebate.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2021-04-16 - Approved by Governor [SB2839 Detail]
Download: Mississippi-2021-SB2839-Enrolled.html
MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Finance
By: Senator(s) Harkins
Senate Bill 2839
(As Sent to Governor)
AN ACT TO AMEND SECTION 37-148-3, MISSISSIPPI CODE OF 1972, TO ADD AND REVISE DEFINITIONS PERTAINING TO THE STRENGTHENING MISSISSIPPI ACADEMIC RESEARCH THROUGH (SMART) BUSINESS ACT; TO AMEND SECTION 37-148-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE SMART BUSINESS ACT SHALL INCLUDE THE SMART BUSINESS REBATE TO PROMOTE RESEARCH PARTNERSHIPS BETWEEN COLLEGES AND INVESTORS AND THE SMART BUSINESS ACCELERATE INITIATIVE TO PROMOTE THE DEVELOPMENT OF STATE-OWNED INTELLECTUAL PROPERTY; TO SET OUT THE TERMS OF IMPLEMENTATION OF THE SMART BUSINESS REBATE AND THE SMART BUSINESS ACCELERATE INITIATIVE; TO REDUCE, FROM $5,000,000.00 TO $3,500,000.00, THE MAXIMUM TOTAL AMOUNT OF REBATES ISSUED UNDER THE SMART BUSINESS REBATE BY THE STATE IN ANY ONE FISCAL YEAR; TO AMEND SECTION 37-148-9, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT, FOR EACH SMART BUSINESS ACCELERATE INITIATIVE DISBURSEMENT CERTIFICATE ISSUED IN A GIVEN YEAR, THE REPORT FILED BY THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING WITH THE GOVERNOR AND THE LEGISLATURE MUST INCLUDE, BUT NOT NECESSARILY BE LIMITED TO, THE NAME OF THE APPLICANT, A DESCRIPTION OF THE RESEARCH VALIDATION AND THE AMOUNT OF THE DISBURSEMENT; TO CREATE NEW SECTION 37-148-11, MISSISSIPPI CODE OF 1972, TO REPEAL THE SMART BUSINESS ACT ON JULY 1, 2026; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-148-3, Mississippi Code of 1972, is amended as follows:
37-148-3. As used in this act, the following words and phrases have the meanings ascribed in this section unless the context clearly indicates otherwise:
(a) "College" means the state institutions of higher learning in Mississippi which are accredited by the Southern Association of Colleges and Schools.
(b) "Investor"
means a natural person, partnership, limited liability company, association,
corporation, business trust or other business entity, not formed for the
specific purpose of acquiring the rebate offered, which is subject to
Mississippi income tax * * *.
(c) "Qualified
research" means the systematic investigative process that is undertaken
for the purpose of discovering information. The term "qualified research"
does not include research conducted outside the State of Mississippi or
research * * * expenses that are already being funded by any grant,
contract or otherwise by another person or governmental entity.
(d) "Research
agreement" means a written contract, grant or cooperative agreement
entered into between a person and a college or research corporation for the
performance of qualified research * * *. All qualified research
costs generating a SMART Business Rebate must be spent by the college or
research corporation on qualified research undertaken according to a research
agreement.
(e) "Research corporation" means any research corporation formed under Section 37-147-15 if the corporation is wholly owned by or affiliated with a college and all income and profits of the corporation inure to the benefit of the college.
(f) "Qualified research costs" means costs paid or incurred by an investor to a college or research corporation for qualified research undertaken according to a research agreement.
(g) "State" means the State of Mississippi or a governmental entity of the State of Mississippi.
(h) "IHL" means the Board of Trustees of State Institutions of Higher Learning in Mississippi.
(i) "SMART Business" means Strengthening Mississippi Academic Research Through Business.
(j) "Applicant" means a college or research corporation applying for SMART Business Accelerate Initiative funds to develop state-owned intellectual property into products and services.
(k) "Qualified validation expense" includes, but is not limited to, services that accelerate the development of early product concepts, conducting proof-of-concept studies, and manufacturing prototypes to perform research validation. Qualified validation expense does not include salaries or wages associated with a licensee of state-owned intellectual property, legal fees or any payment in conflict with state law.
(l) "Research validation" means research intended to validate the commercial viability of state-owned intellectual property.
(m) "Disbursement" means a grant of funds to support research validation.
SECTION 2. Section 37-148-5, Mississippi Code of 1972, is amended as follows:
37-148-5. (1) The SMART Business Act shall include the SMART Business Rebate to promote research partnerships between colleges and investors and the SMART Business Accelerate Initiative to promote the development of state-owned intellectual property.
( * * *2) The SMART Business Rebate shall
be implemented as follows:
(a) Subject to the provisions of this chapter, an investor incurring qualified research costs subject to a research agreement is eligible for a rebate equal to twenty-five percent (25%) of the investor's qualified research costs.
(b) An investor incurring research costs may not claim a rebate pursuant to this chapter greater than One Million Dollars ($1,000,000.00) in any fiscal year.
(c) The total amount
of rebates issued under * * * this chapter the SMART Business Rebate by the state in
any fiscal year may not exceed * * * Three
Million Five Hundred Thousand Dollars ($3,500,000.00).
( * * *d) Investors desiring to apply for the
SMART Business rebate authorized by this chapter shall submit an
application to IHL which must contain, at a minimum, the following:
( * * *i) A description of the qualified
research to be conducted by the college or research corporation;
( * * *ii) A proposed budget;
( * * *iii) An estimated date for completion
of the qualified research; and
( * * *iv) Such additional information as may
be requested by IHL.
( * * *e) IHL shall review each application
to determine if the investor has satisfied all of the requirements of this
section.
( * * *f) Within sixty (60) days of receiving
an application, IHL shall issue or refuse to issue a SMART Business Rebate
certificate. The SMART Business Rebate certificate must include the
amount of the rebate the investor is eligible to claim, subject to subsection
(1) of this section. IHL must notify the Department of Revenue when a SMART
Business Rebate certificate is issued.
( * * *g) To claim a rebate, the investor
must submit a rebate allocation claim to the Department of Revenue. The rebate
allocation claim must include, at a minimum, the SMART Business Rebate
certificate issued by IHL and proof of payment to the college or research
corporation for qualified research conducted according to the research
agreement.
( * * *h) The Department of Revenue may
request an audit from the investor submitting a rebate allocation claim, at the
investor's expense, to verify the investor has satisfied the requirements of
this chapter.
( * * *i) The Department of Revenue shall
issue rebates available under this subsection from current income tax
collections.
( * * *j) Rebates must be allocated to investors
by the Department of Revenue in the order that SMART Business Rebate
certificates are issued by IHL.
(3) The SMART Business Accelerate Initiative shall be implemented as follows:
(a) Subject to the provisions of this chapter, an applicant performing research validation pursuant to a research agreement is eligible for a disbursement of up to One Hundred Fifty Thousand Dollars ($150,000.00) for the applicant's qualified validation expenses.
(b) The total amount of disbursements issued by the state under the SMART Business Accelerate Initiative in any fiscal year may not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00).
(c) Applicants desiring to apply for a SMART Business Accelerate Initiative disbursement authorized by this chapter shall submit an application to IHL which must contain, at a minimum, the following:
(i) A description of the research validation to be conducted by the college or research corporation using funds from the disbursement;
(ii) A proposed budget of qualified validation expenses;
(iii) A certified determination from the applicant that the proposed research validation is necessary to develop state-owned intellectual property into products and services; and
(iv) Such additional information as may be requested by IHL.
(d) IHL shall review each application to determine if the applicant has satisfied all of the requirements of this section.
(e) Within sixty (60) days of receiving an application, IHL shall issue or refuse to issue a SMART Business Accelerate Initiative disbursement certificate. The SMART Business Accelerate Initiative disbursement certificate must include the amount of the disbursement the applicant is eligible to receive, subject to paragraphs (a) and (b) of this subsection. IHL must notify the Department of Revenue when a SMART Business Accelerate Initiative disbursement certificate is issued.
(f) IHL shall develop a process for accepting, reviewing and selecting proposals for SMART Business Accelerate Initiative disbursements and notifying the Department of Revenue when applicants have been selected to receive disbursements.
(g) The Department of Revenue shall issue disbursements available under this subsection from current income tax collections.
SECTION 3. Section 37-148-9, Mississippi Code of 1972, is amended as follows:
37-148-9. Before December 1 of each year, IHL shall file a report with the Governor, Secretary of the Senate and Clerk of the House of Representatives on the implementation of the Strengthening Mississippi Academic Research Through Business Act. For each research agreement where an investor was issued a SMART Business certificate during that year, the report must include, but not necessarily be limited to, the name of the investor and the rebate amount the investor was eligible to claim. For each SMART Business Accelerate Initiative disbursement certificate issued during that year, the report must include, but not necessarily be limited to, the name of the applicant, a description of the research validation and the amount of the disbursement.
SECTION 4. The following shall be codified as Section 37-148-11, Mississippi Code of 1972:
37-148-11. Sections 37-148-1, 37-148-3, 37-148-5, 37-148-7, 37-148-9 and 37-148-11, which constitute the Strengthening Mississippi Academic Research Through Business Act, shall stand repealed on July 1, 2026.
SECTION 5. This act shall take effect and be in force from and after July 1, 2021.
