SF 3115

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; requiring a standard business subsidy
agreement for the JOBZ program; amending Minnesota Statutes 2006, section
469.310, subdivision 11.

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

Section 1.

Minnesota Statutes 2006, section 469.310, subdivision 11, is amended to
read:

Subd. 11.

Qualified business.

(a) A person carrying on a trade or business at a
place of business located within a job opportunity building zone is a qualified business
for the purposes of sections 469.310 to 469.320 according to the criteria in paragraphs
(b) to deleted text begin (f) deleted text end new text begin (h) new text end .

(b) A person is a qualified business only on those parcels of land for which the
person has entered into a business subsidy agreement, as required under section 469.313,
with the appropriate local government unit in which the parcels are located.

(c) deleted text begin Prior to execution of the business subsidy agreement, the local government
unit must consider the following factors:
deleted text end

deleted text begin (1) how wages compare to the regional industry average;
deleted text end

deleted text begin (2) the number of jobs that will be provided relative to overall employment in the
community;
deleted text end

deleted text begin (3) the economic outlook for the industry the business will engage in;
deleted text end

deleted text begin (4) sales that will be generated from outside the state of Minnesota;
deleted text end

deleted text begin (5) how the business will build on existing regional strengths or diversify the
regional economy;
deleted text end

deleted text begin (6) how the business will increase capital investment in the zone; and
deleted text end

deleted text begin (7) any other criteria the commissioner deems necessary deleted text end new text begin The commissioner shall
prepare a standard business subsidy agreement to be used for all subsidies. For each
proposed subsidy, the commissioner shall execute an agreement between the applicant, the
business, and the department. The agreement must contain specific commitments for job
creation, retention, and capital investment new text end .

(d) A person that relocates a trade or business from outside a job opportunity
building zone into a zone is not a qualified business unless the business meets all of the
requirements of paragraphs (b) and (c) and:

(1) increases full-time employment in the first full year of operation within the job
opportunity building zone by a minimum of five jobs or 20 percent, whichever is greater,
measured relative to the operations that were relocated and maintains the required level of
employment for each year the zone designation applies; and

(2) enters a binding written agreement with the commissioner that:

(i) pledges the business will meet the requirements of clause (1);

(ii) provides for repayment of all tax benefits enumerated under section 469.315 to
the business under the procedures in section 469.319, if the requirements of clause (1) are
not met for the taxable year or for taxes payable during the year in which the requirements
were not met; and

(iii) contains any other terms the commissioner determines appropriate.

(e) The commissioner may waive the requirements under paragraph (d), clause (1),
if the commissioner determines that the qualified business will substantially achieve
the factors under this subdivision.

(f) A business is not a qualified business if, at its location or locations in the zone,
the business is primarily engaged in making retail sales to purchasers who are physically
present at the business's zone location.

(g) A qualifying business must pay each employee compensation, including benefits
not mandated by law, that on an annualized basis is equal to at least 110 percent of the
federal poverty level for a family of four.

(h) A public utility, as defined in section 336B.01, is not a qualified business.