Strengthening MS Academic Research Through Business Act; extend repealer on., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Universities and Colleges

By: Representatives Shanks, Foster

House Bill 750

(As Sent to Governor)

AN ACT TO REENACT SECTIONS 37-148-1 THROUGH 37-148-9,
MISSISSIPPI CODE OF 1972, WHICH ARE THE STRENGTHENING MISSISSIPPI ACADEMIC
RESEARCH THROUGH BUSINESS ACT; TO AMEND SECTION 37-148-11, MISSISSIPPI CODE OF
1972, TO EXTEND THE DATE OF THE REPEALER ON THE STRENGTHENING MISSISSIPPI
ACADEMIC RESEARCH THROUGH BUSINESS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Section
37-148-1, Mississippi Code of 1972, is reenacted as follows:

37-148-1.  This chapter
shall be known and may be cited as the "Strengthening Mississippi Academic
Research Through Business Act."

SECTION 2.  Section
37-148-3, Mississippi Code of 1972, is reenacted as follows:

37-148-3.  As used in this
chapter, 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.  The term "investor" does not
include any medical cannabis establishment as defined in the Mississippi
Medical Cannabis Act.

(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 3.  Section
37-148-5, Mississippi Code of 1972, is reenacted 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 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 4.  Section
37-148-7, Mississippi Code of 1972, is reenacted as follows:

37-148-7.  IHL and the
Department of Revenue each may promulgate, in accordance with the Mississippi
Administrative Procedures Law, rules and regulations, application forms and any
other forms necessary for the implementation and administration of this chapter.

SECTION 5.  Section
37-148-9, Mississippi Code of 1972, is reenacted 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 6.  Section
37-148-11, Mississippi Code of 1972, is amended as follows:

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
2029.

SECTION 7.  This act
shall take effect and be in force from and after July 1, 2026.