AB 29 — Revises provisions governing programs for the development and commercialization of research and technology in this State. (BDR 18-256)

EXEMPT (Reprinted with amendments adopted on April 19, 2021) FIRST REPRINT A.B.

29 A SSEMBLY BILLB NILLN O.

29–COMMITTEE ON R EVENUE (ON BEHALFB EHALF OF THE O FFICE OFECONOMICOF DEVELOPMENTECONOMIC D EVELOPMENT IN THEOTHE FFICEOFFICE OF THEGTHE G OVERNOR ) PPREFILED REFILED N OVEMBER 18, 2020 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions governing programs for the development and commercialization of research and technology in this State.

requiring the Executive Director of the Office of Economic Development to establish a competitive grant program to facilitateprovide researchgrants andfor developmentcertain ofpurposes technologyrelated andto addressthe marketresearch gapsand in the development of technology in this State;

(NRS 231.1592) Section 2 of this bill instead authorizes the Executive Director to - *AB29* – 2 – establish one or more competitive grant programs to address market gaps in the development of technology in this StateState, to facilitate the operation of the - *AB29_R1* – 2 – technology outreach program established by the Executive Director or to facilitate the research and development of promising technologies that have reached a technology readiness level of at least 3, which, under section 1 of this bill, would be determined using the method of assessing the maturity level of technology used by the Federal GovExistingGovernment. law requires commercialization revenue received by the Office pursuant to an agreement with a research university or the Desert Research Institute to be deposited in the Knowledge Account.

(NRSSection 231.1593)2 Sectionalso 3requires ofthat thisnot billless includesthan certain80 typespercent of revenuethe asgrant commercializationmoney revenueawarded and requires any stock or equity received pursuant to such ancompetitive agreementgrant toprograms be transferredawarded to athe nonprofitUniversity corporationof formedNevada, underLas existingVegas, law to promote, aid and encourage economic development and to be held for the benefitUniversity of theNevada, NevadaReno, Innovation AccExisting law requires the ExecutiveDesert Director,Nevada, inLas makingVegas, allocations from the KnowledgeUniversity Account,of toNevada, considerReno certainor factors, including whether each of the entitiesDesert toResearchersity whom an allocation can be made has received an equitable share of suchInstitute. allocations.

Existing law requires commercialization revenue received by the Office pursuant to an agreement with a research university or the Desert Research Institute to be deposited in the Knowledge Account.

(NRS 231.1593) Section 3 of this bill includes certain types of revenue as commercialization revenue and requires any stock or equity received pursuant to such an agreement to be transferred to a nonprofit corporation formed under existing law to promote, aid and encourage Account.

development and to be held for the benefit of the Nevada Innovation Existing law requires the Executive Director, in making allocations from the Knowledge Account, to consider certain factors, including whether each of the entities to whom an allocation can be made has received an equitable share of such allocations.

Section 4 also establishes the procedures for a research university, the Desert Research Institute, the technology outreach programprivate establishedentity byand existinga land,research privateuniversity entities or athe partnershipDesert betweenResearch aInstitute to apply for a grant pursuant to the competitive grant program established pursuant to section 2.or2. Existing law requires the Executive Director to take certain actions in consultation with the Board of Economic Development and the Chancellor of the Nevada System of Higher Education.

(NRS 231.1595) Section 5 of this bill adds to this list of actions a requirement to facilitate research and development of technologies that have reached a certain technology readiness level at the research competitive grant program established pursuant to section 2.grants through a Existing law requires the Executive Director to usetake moneycertain actions in theconsultation Knowledgewith Accountthe toBoard establishof aEconomic technologyDevelopment outreach program and tothe ensureChancellor thatof the programNevada providesSystem certainof services.Higher Education.

(NRS 231.1595) Section 5 of this bill adds to this list of actions a requirement to facilitate research and development of technologies that have reached a certain technology readiness level at the research universities and the Desert Research Institute and to offer grants through a comExisting law requires the Executive Director to use money in the Knowledge Account to establish a technology outreach program and to ensure that the program provides certain services.

- *AB29_R1* – 3 – (a) Means a privately-owned corporation, limited-liability company, partnership or other business entity or association, including, without limitation, a nonprofit corporation.

- *AB29* – 3 – 3.

- *AB29_R1* – 4 – (I) Address market gaps in the development of technology in this State;

or - *AB29* – 4 – (II) Facilitate researchthe andoperation development of promisingthe technologies that have reached a technology readinessoutreach levelprogram ofestablished atpursuant leastto 3;NRS 231.1596;

or (III) Facilitate research and development of promising technologies that have reached a technology readiness level of at least 3;

6.

Not less than 80 percent of the grants awarded pursuant to paragraph (c) of subsection 4 must be awarded to the research universities, the Desert Research Institute or to partnerships between private entities and the research universities or the Desert Research Institute.

In consideration of the money and services provided or agreed to be provided by the Office, the research universities and - *AB29_R1* – 5 – the Desert Research Institute shall agree to allocate commercialization revenue in accordance with any agreement entered into pursuant to subsection 1.

As used in this section, “commercialization revenue” means dividends, realized capital gains, license fees, royalty fees , stock or other type of equity interest in an entity received in connection with the licensing of technology or from a spin-out company, any net proceeds from the commercialization of technology received in the form of cash or stock or other type of equity interest in an - *AB29* – 5 – entity, or a combination thereof, by a research university or the Desert Research Institute, revenue from fee-for-service agreements as a result of projects supported by the Nevada Innovation Account at a research university or the Desert Research Institute and other revenues received by a research university or the Desert Research Institute as a result of commercial applications developed as a result of the programs established pursuant to NRS 231.1591 to 231.1597, inclusive, less:

and - *AB29_R1* – 6 – (b) Whether the research universities and the Desert Research Institute have received an equitable share of the allocations of money from the Knowledge Account.] 3.

In accordance with the procedures established pursuant to subsection 1, a research university , [or] the Desert Research Institute , the technology outreach program established pursuant to NRS 231.1596,231.1596 a private entity, or a partnership between a private entity and a research university or the Desert Research Institute may apply for [an allocation] a grant of money from the - *AB29* – 6 – [Knowledge] Nevada Innovation Account.

If a research university , [or] the Desert Research Institute , the technology outreach program established pursuant to NRS 231.1596,231.1596 a private entity, or a partnership between a private entity and a research university or the Desert Research Institute receives [an allocation] a grant of money from the [Knowledge] Nevada Innovation Account, the money must be used [for the purposes set forth in NRS 231.1597.] in accordance with the agreement entered into by the Office and the recipient pursuant to subsection 5 of NRS 231.1592.

- *AB29_R1* – 7 – (c) Enhance technology transfer and commercialization of research and technologies developed at the research universities and the Desert Research Institute to create high-quality jobs and new industries in this State [.] or to address market gaps in technology development in this State.

- *AB29* – 7 – [(e)] (f) Verify that the programs established pursuant to NRS 231.1591 to 231.1597, inclusive, are being enhanced by research grants and that such programs are meeting the Board’s economic development objectives.

- *AB29_R1* – 8 – (2) A description of the research being conducted by the research teams and faculty for which the Executive Director has provided funding pursuant to NRS 231.1597;

- *AB29* – 8 – (5) The amount of all grants, gifts and donations to the [Knowledge] Nevada Innovation Account from public and private sources;

(f) Establish a small business research and innovation and small business technology transfer matching program which may - *AB29_R1* – 9 – cooperate with a nonprofit corporation formed pursuant to NRS 231.0545;

[(d)] (i) Connect market ideas and technologies in new or existing businesses or industries or in state colleges and community - *AB29* – 9 – colleges with the expertise of the research universities and the Desert Research Institute;

In designing and operating the technology outreach program, the [Board] Executive Director shall work cooperatively with the [technology transfer offices] vice presidents for research at the research universities , [and] the Desert Research Institute [.] and private entities.

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