HF 3254

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/27/2014 03:29pm

A bill for an act
relating to economic development; modifying border city allocations; mandating
a study and report on North Dakota oil production and economic impacts
in Minnesota; appropriating money; amending Minnesota Statutes 2013
Supplement, section 469.169, subdivision 19.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 469.169, subdivision 19,
is amended to read:

Subd. 19.

Additional border city allocation; 2013.

(a) In addition to the tax
reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000
for tax reductions to border city enterprise zones in cities located on the western border
of the state. The commissioner shall allocate this amount among cities on a per capita
basis. Allocations made under this subdivision may be used for tax reductions under
section 469.171, or for other offsets of taxes imposed on or remitted by businesses located
in the enterprise zone, but only if the municipality determines that the granting of the tax
reduction or offset is necessary to retain a business within or attract a business to the zone.
The city alternatively may elect to use any portion of the allocation under this paragraph
for tax reductions under section 469.1732 or 469.1734.

(b) The commissioner shall allocate $750,000 for tax reductions under section
469.1732 or 469.1734 to cities with border city enterprise zones located on the western
border of the state. The commissioner shall allocate this amount among the cities on a per
capita basis. The city alternatively may elect to use any portion of the allocation provided
in this paragraph for tax reductions under section 469.171.

new text begin (c) On April 1, 2015, the commissioner shall cancel an amount of the allocations
under paragraphs (a) and (b) to the general fund in an amount sufficient to equal the
expenditures made by the commissioner under the appropriation in section 2. The
cancellation must be apportioned equally between the allocations under paragraphs (a)
and (b) and distributed among the border cities on a per capita basis.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON
MINNESOTA.
new text end

new text begin (a) $150,000 in fiscal year 2014 is appropriated from the general fund to the
commissioner of employment and economic development, in consultation with the
commissioner of revenue, to finance a study and analysis of the effects of current and
projected oil production in North Dakota on the Minnesota economy with special focus on
the northwestern region of Minnesota and area border cities as provided in paragraph (b).
new text end

new text begin (b) The study and analysis must address:
new text end

new text begin (1) current and projected economic, fiscal, and demographic effects and issues;
new text end

new text begin (2) direct and indirect costs and benefits;
new text end

new text begin (3) positive and negative effects; and
new text end

new text begin (4) economic challenges and opportunities for economic growth or diversification.
new text end

new text begin (c) The study must be objective, evidence-based, and designed to produce empirical
data. Study data must be utilized to formulate policy recommendations on how the state,
the northwestern region of the state, and border cities may respond to the challenges and
opportunities for economic growth and financial investment that may be derived from the
regional economic changes that are the result of oil production in North Dakota.
new text end

new text begin (d) For the purposes of this section, "border cities" has the meaning given in
Minnesota Statutes, section 469.1731.
new text end

new text begin (e) The study and analysis must be conducted by an independent entity with
demonstrated knowledge in the following areas:
new text end

new text begin (1) the economy and demography of Minnesota;
new text end

new text begin (2) the domestic and foreign oil industry; and
new text end

new text begin (3) technologies, markets, and geopolitical factors that have an impact on current
and future oil production in the region.
new text end

new text begin (f) The commissioner shall report on the findings and recommendations of the study
to the committees of the house of representatives and senate having jurisdiction over
economic development and workforce issues by February 15, 2015.
new text end

new text begin (g) Any amount of the appropriation under paragraph (a) that remains unexpended
on March 31, 2015, lapses and is canceled to the general fund on that date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end